1935-02-20 — Page 9

PARTIAL VICTORY FOR THE GOVERNMENT

Supreme Court Decision In U.S. Gold Clause Case

which were now reposing in the Treasury.

THE JUDGMENT

HONG KONG DAILY PRESS, WEDNESDAY, FEBRUARY 20, 1935.

THE LONDON MARKET

U.S. Gold Clause Reaction

Landon, Feb. 19. The gold clause decision a expected to lead to a volte face in the foreign exchange market. Washington, Feb. 18. its transactions in devaluation Hitherto the continent has been a The United States Administra- | $2,800,000,000

seller of francs, buyer of dollars tion has won the gold clause case

and in a lesser degree of sterling. 17 the Supreme Court, having

In expectation that the decision been upheld by a majority ruling

will be adverse to the government, of the court by five votes to four.

operators are now rushing. to Heuler learns that the Govern-

cover, Consequeritly the franc ment victory is only partial, that

has improved in terms of the its gold clause abrogation ined to Congress to establish a dollar, while sterling follows private bond issues is upheld but uniform currency and parity the wake of the dollar. Well- that, in federal bond cases, it is between the kinds of currency. informed circles expect this ten- defeated.....

and to make that currency dödlar dency to continue for some time "legal tender for payment of debts.with the price of gold steadily The court, howeven, took a dif- | rising, which accounts for, excited ferent view where the Govern-"| dealings in gold shares.

The Administration has decided that no emergency legislation is necessary, however.

The Government has won all along the line regarding private bonds, state and municipal. gold contracts. In each case the court upheld by five-to-four the right of Congress to regulate currency.

van

The Chief Justice, delivering his judgment, expressed the opinion that the gold clauses interfered with the exertion of power grant

ment's own bonds were concerned. In this case, said the Chief Justice, the gold clauses were intended to afford 1. definite standard of value, thus protecting against de- preciation of currency by payment The majority of the court con- of lesser value than that aisted of Justices Hughes, Stone, subscribed. Nevertheless, the court Brandies, Roberta and Cardozo,proceeded to nullify the effect of and the minority votes were from this opinion by rullog that Justices McReynolds,

De- Government bond-holders may not vanter, Sutherland and Butler.." sue the Government.

DISSENTIENT VIEWS

The value of United States Declaring, The Constitution is bonds containing the gold clause gone," Justice McReynolds pre- are approximately $48,100,000,000 sented the views of the dissentient and private bonds, $51,900,000,000. judges for saying in one breath-Router, Congress, had no power to re- pudiate its gold band obligations and, at the same time reaching the conclusion that because the Gdy ernment bond-holder cannot ac- cept gold he must accept a 60 per. cent. legal tender dollar for each gold dollar the Government pro- mised to pay him...

He added that according to the majority decision, Congress was without power to repudiate its gold obligations in its own bonds, but could not be compelled to pay in devalued dollars the value of the gold called for.

They were told, he recalled, that the Government made from

MORE QUERIES

*

AT COMMONS

Effect of Commodity

Speculation

London, Feb, 19.

In the House of Commons to- day. Mr. David Grendell asked whether It was intended to take any action regarding the loss of confidence in the city of London In view of the recent commodity speculation.

Captain Duff Cooper replied that in view of the steps taken to minimise the effect of such specu- Iation, it was incorrect to ascribe thereto the movement of securities to which Mr. Grenfell presumably referred. *

GOVERNMENT RIGHT

Washington, Feb. 18. President Roosevelt kept In telephonic "communication with the Capitol while the court was announcing its decision, but re served comment until he had read the text of the judgment..

Mr. Cummings, the Attorney General, expressed satisfaction at the decision.

means

that

Mr. Doughton, Chairman of the House of Representatives Finance Committee, declared, "The de- cision

what the Government did might not have been absolutely legal, But it was right-Reuter.

SPECULATION

IN TIN

House Of Commons Explanation

London, Feb. 19. In the House of Commons to-day, Philip Cunliffe-Lister said that the replying to Mr. David Grenfell, Bir

government was watching develop→ ments in the tin market, but d not constiter any action on their part called for.

in

"As' regards commodities, the de- cision does not increase exports of American cotton by a single bale, neither does it clear up the pepper and shellac crisis nor solve the Netherlands Indies native rubber problem. Conversely it does not mitigate the dryness of the Western wheat belt nor does it add a pound to the scanty United States supplies of feed meats, but in the present temper of the markets, speculation is awakening from hibernation and will centrate in bullish rather bearish, implications and factors such as the foregoing which ex- plain the sharp rise in commodi- tes to-day.--

Reuter.

con-

than

NOTED SWEDISH MESSAGE FROM

EXPLORER

Congratulations On Birthday

(Special to Hong Kong

"Dally PressTM (By | Telegraph, Copyright, Tela

Ordinance. graphio Massages.

1894 Received, February 19, 4-30 p.m.)

Berlin, Feb. 19.

The entire German Press and

AIRMAN

Goljubeff's Tale Of Hardship

(Special to “Hong Kong

Daily Press")

(By - Telegraph, Copyright, Tato graphic Messages Ordinance, 1894- Received, February 19, 7.50 p.m.)

Archangel, Feb. 19. Word has been received here public join in the congratulations from the flier Gollubeff who with which Chancellor. Hitler wired to three companions have been misa- the noted Swedish explorer Svening since they took off on Febru- Hedin, who is now at Manking onary from Werchofamsk for Ar- his 70th birthday...

changel and had already been given up for lost.

DR. SVEN HEDIN

not

In long enthusiastic articles the papers

only tribute the septuagenarian as a great explorer UN CERTAINTY REMOVED

but also as an ever trusty friend of London, Feb. 19. the German people who never The cloud hanging over all wavered even in Germany's most markets of the world has been trying times. removed by the United States Supreme Court decision in the

The wire which Sven Hedin sent to his sister who is in Stockholm gold clause case. The immediate from Nanking saying he is in the result was a rush of buying orders pink of condition was received in Wall Street which caused a here with great delight. general advance wherein railroads As wirelessed by Transocean, as they stood lose most by the the great explorer has been ap- also spurted but adverse decision. Commodities pointed an honorary member of an emergency the Berlin Anthropological Society, closure was applied to the Chicago while many more honours are in wheat market in order to prevent store for him.- excessive fluctuations in specula-Transocean Kuo Min. tion,

A

A prominent financier in 2 statement to Reuter in London stated *T consider the decision generally bullish mainly because it removes the very great uncertainty which caused traders and manu- facturers to hold up normal orders which will now be released, thus tending to swiftly accelerate the long overdue recovery."

The situation is likened to that existing in Britain at wartime when it was legally possible to pay in gold but actually impos- sible.-

#

Reuter

SILVER MARKET

15

•.

(From Our Own Correspondent)

London, Feb. 19.

up 3/15, as follow:-

London silver prices to-day were

HAUPTMANN

APPEAL

Moves Indefinitely Postponed

Trenton, Feb. 19.

In the fight to save Hauptmann from the electric chair, a rift has appeared in the ranks of his de- fence lawyers on the question of the appeal, all moves in this con- nection being indednitely post- poned by Mr. Edward Reilly who summoned a conference of junior counsel at the end of the week,

Mr. Reilly does not give any reason for the decision, büt Mr. Feb. 18 Feb. 19 Lloyd Fisher after seeing the pri 24-13/16 25

soner said that he wants no de- Forward.....24-13/16 25-1/8 lay in lodging the appeal, adding London on New York cross rate should wish to adjourn the appeal "I cannot concelve why anyone The price of tin remained re- nafkably stable for many months

at 2 p.m. to-day was 4.8856 com-

when the man is scheduled to die with the result that he understood pared with 4.8862 at closing yes-

in four weeks.”—“ speculation was greatly diminished. terday:

Beuter. There was also a scheme under the

One of the advantages of a complete elastic scheme such as the Tin Scheme is that it largely eliminates the opportunity and risk of speculation by providing means for adjusting supply and demand and securing as far as possible the fullest information as regards stocks.

As regards further action, the Official Receiver of James Shake- speare would be required under the Companies Act to make a full enquiry into the cause of the fallure and report whether in his opinion a further enquiry is de-control of the participating Gov- sirable into the circumstances at ernments which can be used as an tending the" promotion

the additional safeguard against serf-

of

company and conduct of its busi-cus fuctuations in price.

ness.

!

The World Economic Conference The Act also provides that the operation of the Tin Scheme and has reviewed exhaustively the Official Receiver may further expressed full approval of the port whether in his opinion any scheme and its operation. fraud waa committed in the

Reuter. formation and promotion of the company or by directors or other officers. Government intended to Await the result of this enquiry before considering the matter further. Reuter..

ALLEGED MISUSE OF BANK FUNDS

*Employees In Custody

Nanking, Feb. 10,

la revealed to-day that Eleven employees of the local

of the Bank of Communi

were taken into police. yesterday afternoon on a charge of alleged misappropria- tion of funds belonging to the bank. One of the employees was subsequently released on $5,000 bail is reported that the amount davalved totals over four

akhs Reuter

POLITICAL QUESTIONS IN THE PACIFIC

London, Feb. 19. Mr. Qua Tai Chi is calling on Bir John Simon to-day, it is understood, in reference to a con: ference or political questions in the Pacific Reuter,

ROYALTY AT BRITISH INDUSTRIES FAIR

Spot

ABOLITION OF GOLD CLAUSE

Received Favourably In Japan

MOTHER'S PLEA

Trenton, NJ, Feb. 18, Governor Hoffman, replying to a cable from Hauptmann's mother. from Kamenz, Saxony, pleading for clemency in prison says: "I deeply sympathise with you. Your son's case is to be carried to the Court of Appeals, The Governor of New Jersey at present has no power of pardon. I shall sit as a member of Tokyo, Feb. 19. the Court of Pardons that may News of the decision of the finally hear this case and cannot United States Supreme Court up express an opinion until then- holding the abolition of the gold clause. has been received favour! ably by Japanese business circles which recall that the Japanese the United States totalled about loans and debentures noated in

370 million dollars last December, Reuter

CHINA BUYS SILVER IN LONDON

Reuter

CURRENCY SHIPMENT TO CHUNGKING

Twelve Million Dollars

Shanghal, Feb. 19. One of the largest individuai shipments of silver and bank notes ever to leave Shanghat is being dispatched to Chungking to-day, by the Customs cruiser Wenbalug, according the "North China Daily News The Shij

Shanghal Feb, 19 London Feb 18, It is learned from an authorita Her Majesty the Queen, accom- tive source that the Foreign-Er panied by the Duke and Duchess change Market Stabilisation Com-compris of York, made a tour of the mittes i eatly purchased in Lon- and $2,000. Olympia section of the British In- don three million Chinese dollars dustries Fair this morning and which are expected here in the made several purchases,

Overseas buyers attending the Fair yesterday numbered 1228 and home buyers 6,454- British Wireles

Neg

ions are stated to be th

orod

Govern

and

triten

for the Bank

the:

Wireless message flashed out on Tuesday morning from Idshima 25 miles from Archangelstates that Goljubeff made a forced lan- ding in a swamp and left the

EXPORT EXPORT TRADE BOOM

IN BRITAIN

Striking Increase In Motor

Cars And Chassis

BUILDING TRADE:

London, Feb. 19 cars and chassis exported whten -The total value of export of was 19 per cent, higher than the British manufactured goods has highest figure previously recorded. risen from £282,000,000 in 1933 to £305,000,000 in 1934. The tonnage of fron and steel goods exported increased by 17 per cent. Railway materials

prices showed very marked improvement and exports of machinery were 21 per cent. greater in tonnage the increase being spread over nearly all main classes. Equally striking was the 100 in. 1933.- increase in the number of motor | British & Wireless.

plane with one of his companions ANGLO- FRENCH

message

as guard behind. The adds that Goljube himself with two other "companions were sick and starving; having meanwhile been forced to subsist on refuse during the 17-day march to Idahima and that it is not certain whether the companion left be- hind is still alive.

On receipt of the telegram two airplanes immediately started to the rescue of the fliers. Transocean Hua Min.

WOMEN EXECUTED

IN BERLIN

[Special to the "Hong Kong Dally

Press". (Copyright).]

PROPOSALS

Views On German Reply

building trade is reflected in the A recent development in the

Labour Ministry return which shows that the estimated cost of bulidings for which plans passed by local authorities of 14 principal British towns in 1934 was £93,563,000 agafrist £83.682.-

UNDER-SEA TUNNEL IN JAPAN

were

Tokyo, Feb. 19% The Ministry of Railways 30- nounced that it is planning the construction of a ten kilometer under-seatunnel through the channel between Japan's mainland and Kyush connecting Moji and Shimonoseki: The tunnel, con- struction of which will be spread over a few years, starting in 1936, 1894. I will cost 18 million yen

Router

(Special to the "Hong Kong"

Daily Press"}

(By Telegraph. Copyright, Tela graphic Messages` · ́Ordinance, Beceived, February 194-30 p.m.):

Faris, Feb. 19.

The Anglo-French opinion on Germany's reply to the proposals

munique will be made known-to- contained in the London comTM

SEPARATE DISCUSSIONS

London, Feb. 19 day, Tuesday," by the foreign Berlin, Feb. 18. minister M. Laval in the minis-

The German suggestion for Frau Bentta von Falkenhayn terial council. According to "le direct British-German discussions and Fraulein Renate von Natzmer, Matin” M. Laval will also inform will be examined at a cabinet sentenced to death on Saturday his colleagues on, the draft reply council on Wednesday according by the Peoples Court charged with which England and France joint to the Times" report here to-day the betrayal of military secretsly will send to Germany.

It is further stated that the were executed on Monday, morn- The French Ambassador in Lon-French Ambassador in the course, ing after Chancellor Hitler had don, M. Corbin, had a lengthy declined to exercise his right of conversation with Sir John Simon. pardon. Two Polish nationals, That England and France are not George von Bosowski and Irene von yet in agreement is evidenced by Jena who also had to answer the the fact that the diplomatic ex- same-charge of treason were sen-change of opinion between the tenced to life long imprisonment. two countries is to be continned- Transocean Xua Min.

Fransocean Kuo Min..

9

of his interview with Sir John SI- monon Morday Informed the

latter that the French Govern- ment would not object if the Bri- tish Government should decide on Sir John Simon paying a visit to Berlin

·Transocean. Kuo Min.

women out of 10

live on their Nerves instead of their Food

Is this your time table?

10

2

Breakfast. A cup of tea or cofee

of toast. No appetits-or tims

for NDIS

5

Your energy in Sagging-bat Lber is wich a lot to do. Another cup of tea or cofes 7

Lunchtime Boxsething light, of course. You don't tea), mything more. Besides-thera

Dinner. The ought to be mbstantial meal. But you don't feel eqtral 50 ft. Maybe you ar "In a hátary" to yw cas, too.

Bedtime Ends you barvy and avar-wrought uskon Song" Sog alergike, but you fear another.

What a difference you would "fəslit you.Book Ovaltine on all thesa faccasioneerit makes the lightest meal com. pistein getritive valua [27/orantes', 'abundant

·THBSTVEE” Of anergy and vitality, and:it:@hsurss sound, natural sjøsp, at

HURRIED, scanty meals

days of rush and bustle sleepless nights, • nerves always on edge

small

wonder that so many women look old long before their time.

No woman can look or feel her best if she does not give due care to her dietary Health, energy, nervous poise all depend upon proper and adequate nourishment.

You can always be sure that your diet is complete in health-giving nutriment if you make delicious Ovaltine" your daily beverage. Ovaltine is, in Itisif perfect food. It is supremely rich in nerve-restoring nourishment, and contains every nutritive element neces mry to build up abundant reserves of energy and vitality, d

Start every day with Ovaltine, at breakfast. Drink it instead of ordin ary beverages when you take a light. meal, and whenever you feel your anergy fagging. - Take-Ovaltine again at bedtime to ensure deep, refreshing sleep all night long.

Quality always tells

meist on

But remember it must be Ovaltine.! There is nothing "inst as good," Scienti- fically prepared from the highest qualities of malt extract, creamy milk and now laid egg, Ovaltine” stands in a class by itself for quality and value Although imitations are made. to Ispk like Ovaltine there are vary important differences.

does not contain

Because of its sup

OvaltinskiT

countless thousands of regularly need in the BANATOMIS ANd auraing. out the world);

OVALTINE

The Supreme Beverage for Health