1935-01-09 — Page 3

Hongkong Telegraph 港電新報士蔑新聞 All

COURTS TO TEST NEW

DEAL'S VALIDITY

Washington, Jan. 5.

Cases testing the validity of the "New Deal" money laws and the contractual effects of dollar devaluation are set for hearing before the Supreme Court of the United States, to commence January 8.

Although the five cases to be heard had diverse origins and involve several different principles, the Supreme Court ordered their hearing in sequence upon. motion by the Solicitor-General of the United States.. This procedure appeared to indicate the court's readi- nesa for an early and comprehensive judicial inter- pretation of the series of acts of Congress and Executive decrees which had their genesis in the acute banking and currency crisis of 1933.

Damages that might result security for railway loans. directly from the pancing “cases probably would not exceed $40,-

noss.

Weldin

HE HONGKONG TELEGRAPH WEDNESDAY, JANUARY 9, 1935.

THE TANGO IS SIMPLE

Tango music is irresistible-and you must know how to do one of the tango versions. Arthur Mur ray,dance-master to celebrities, here, in the third of six articles, explains. simple routine.

(BY ARTHUR MURRAY) New York.

It's just as simple and cer- tainly a lot more gracious to learn to tango than to stumble around trying to fox trot to tango music.

At rather pretentious holiday balls where the music is supplied by two orchestras, you may be sure that one of them will play practically nothing except slow, rhythmic tango music.

At smaller parties, the. "single orchestra will mix tango tunes with the fox trot and waltz selectiona- This, after all, is a tango year. And unless you know what to do when a Spanish-type song is being played, you might as well alt down..

Actuni tango steps are, of course, Because of this, even a similar to those in the waltz and fox irai. beginner will find tango steps sur- prisingly simple. They are done in a deliborate manner, making co- ordination between the mind and con-one's feet quite easy to acquire.

The mortgage and bonds affect- 000,000 it all decisions favoured cd are those of the St. Louis, fron the claimants, but the principles Mountain and Southern Railway at issue atfect currency, privace Company, matured in 1933, which and public bonds having a lace contained a clause requiring pay un-ment in gold coin of the United valuo variously estimated officially at from $80,000,000,000 States of the standard of weight ate and fineness existing on May 1, and $100,000,000,000. An accurate

1903. The Missouri Pacific Rail- require. inspec estimate wudid

of way bought the properties. on tion of the torms of issuance vast amounts of bonds, particu- which the mortgage is a first lien. the in- The appellants held that joint larly with rolerence to

ao-called "goid resolution Nb 0 the clusion of clause" guaranteeing payment in travention of the Constitution and une beyond the powera of Congress 48 coin of specined welgnt or

appiled to the so-cated "gold Causes," and hold that Congress In view of the tremendous sums has power to violate or impair theoretically involved, and the unthe obligation of the mortgage and predictable economie and legal bonds for payment in gold coin of consequences that might result the standard existing May 1, 1903. the principal "NOW laws were held unconstitutional, observers here generally do not believe that the Supreme Court would make any sweeping all inclusive judgment, but rather anticipate that the highest tri- bunai would specny principles to the courts guido decisions of where money cases aro pending.

DAMAGE CLAIMS

Dear" money

LAW VALID

For

What is commonly known as the French version of the tango_is extremely popular this year. that renson, I have diagrammed a step that is done tri the half-open position. That is, the feet cross in front of each other, but the shoulders remain parallell and the position of the head should not be changed.

In the Tango the steps are divid- The United States District Couried into alow and quick movements. of Eastern Missouri held the law The slow step takes about a second constitutional and valid, ruling and is given two beats of the music. that payment of the amount of The quick step is twice as fast as a

interest the principal and

due low step and is given but one bent upon said bonds, la such money of of the music.

taken aldewise. The steps are the United States na ja legal ten- der for the payment of deuts, will The man has his back to the centre discharge, dollar for dollar, the of the room as he progresses to his face amount of such Indebtedness left. The lady faces the centre of Cases involving Federal Govern-on account of the principal and the room and her steps are taken

sitewise, to her right. ment Liabilities, in fact, have been interest due on such bonds." presented in such manner as to Keck ruling on principles and! questions of law damage clulma..

When taking the second

fourth steps; the man leads with his

First, take a long side step with Bonds involved have 點 face left foot to left side; then cross right fout in front of left; weight applicable to value of $34,548,000,

The suit of Mr. F. Eugene Nortz on right foot; stop with left (out to left: repeat and dras right foot up to left. Tremendous public Interest at-versus United States arose from claim for redemption in several of Nortz is a tends the cases, which the Attorney-General will of gold certificates either inval the Unued States valuation gold dollars or equival Appear. Lor Government. Lower court deci'ent currency. Mr. Nortz held heel.

of the face alons on points at isaac have not gold certificates dovoloped extensive legal reason amount of $100.300. Upon ing as to the basis for judgments, 'senting these he claimed in

rendered by the demption 6,104.22 ounces of gold and opinion&

United valued at $170,630.07 in the new Supreme Court of the

rofused States will become of extraorain-į Currency. The treasury ary importance in the law of the to comply. land.

pre-

the

lie

The claimant surrendered The cases collectively involve the certificates for currency of $106,- validity of the "guld clause" in 309 "solely by virtue of threats private bonds and contracts, the and coercion in the Secretary of right of the United States govern- the Treasury's order requiring the

nde-delivery of gold certificates." ment to pay its bonds in valued dollar, the right of the claimed that he had been Treasury to demand surrender of prived of property without due gold-certificates upon redemp-process of loss and asked damages tion in the de-valued dollar, and of $64,334.07-with-interest. the lability

ing from policies,

its

of the Federal

The Court of Claims of the

Government to damage suits arla-United States, to which the claim drastic monetary was presented, certified a series of questions to the Supreme Court to be of the United States with First of the enses

for instructions auit heard is the

of Mr. Nor- 'quest Norman of New guidance, man C. York against the Baltimore and Ohio Railroad Company, challeng

on the

a. re- for

ita

VITAL QUESTIONS These questions, answers

De-

ing failure of the railroad to pay which will be of extraordinary him laterest

rateway's importance to the Treasury $1,000 gold bond in accordancepartment, were as follows: with the pre-devalention value ofj the dollar.

Start

Top: Maurice and Cordoba illustrate the start of the French

Tango step, in which the dancers move to the man's lofi. Diagram

shows the simple routine of this tango.

Supreme Court of the United

States the following questions:

(1) Is the claimant, being the holder and owner of a Fourth Liberty Loan 4% per cent bond of the United States, of the principal amount of $10,000 issued in 1918, which was payable on and after) April 16, 1934, and which bond contained a clause that the prin cipal is "payable in United States gold coin of the present standard

of value," entitled to receive from' the United States an amount in legal tender currency in excess of the face amount of the bond?

Lillian Harvey, the English Fil actress, has recently been engaged

(2) Is the United States, as obligor in a Fourth Liberty .4 The Swiss St, Bernard Monks in. (1) Is an owner of gold certi-

lend to enlarge their labour of mercy gold bond, as stated in question ficates of the United States series even to the Himalayas. Our picture one, liable to respond in damages OLD STANDARDS

shows a monk together with a native in a sult in the Court of Claims on of 1923, not holding a Federal The bond carried a clause. pro-licence to acquire or hold gold from Tibet, where the monk arrived viding for payment of principal coins or gold certificates, who, on to discuss the building of a cloister, such bond as an express coutracijat Hollywood, and the picture shows in the Himalayas.

by reason of the change in or Im- the star signing her contract. and interest in gold coin of the January 17, 1934, had surrendered of United States of or equal to the his certificates to the Secretary

possibility of performance in ac- Standard of the weight and fine- the Treasury, of the United States received ness existing February 1, 1930, under protest and had the date when the bond was pur-therefore legal tender currency of chased,

equivalent face amount, entitled to receive from the United States When the interest

B the a further sum inasmuch demanded matured Mr. Norman that he be paid either $22.50 in weight of a gold dollar was 20.8 gold of the old standard or $38.10 grains, nine-tenths fine, and the market price theroof on January CXCCBS of the In currency, the amount equival ent to the earlier gold-standard 17, 1934, was in dollar.

coupon

The Supreme Court of. New!

eurrency so received:

(2) Is a gold certificate, sorias of 1928, under the facta atated in

York dealad Mr. Norman's claim, question one an express contract but did not render an opinion. The judgment held valid Public of the United States in its

or proprietary capacity porate

Cor.

Resolution No. 10, approved by, which will enable its owner and June 6, 1933, which provided that holder to bring suit thereon in

ΟΓ therefore any obligation

the Court of Claims?

thereafter incurred, which pur-

ports to give the obligee a right

(3) Do the provisions of the to require payment in gold or a Emergency Banking Act of March of the particular kind of coin or currency 0, 1933, and the order.

or in an amount of money of the Secretary of the Treasury dated United States measured thoroby, December 28, 1933, requiring the "shall be discharged upon pay plaintiff as owner of gold cortifi mont, dollar for dollar, in Any cates as stated in question one to coin or currency which at the time deliver the same to the Treasury of payment la legal tender for of the United States in exchange public and private debta."

OTHER CLAUSES

for eurrency of an equivalent amount not redeemable In gold," amount to a taking of property

The second and third cases in-within the meaning of the Fifth volved "gold clause" in referance Amendment of the Constitution of to rallway mortgage bonds which the United States?. became involved in bankruptcy proceedings. In these cases the

1935-01-09 — Page 3

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