WORLD CURRENCIES

Dominion, Volume 28, Issue 91, 11 January 1935, Page 9

WORLD CURRENCIES

Hint That International Agreement Is Pending STATEMENT IN AMERICA Washington, January 9. In the gold clause test case, the At-torney-General, Mr. H. S. Cummings, in an argument in the Supreme Court today intimated that an international monetary agreement was impending. He said: “Great things are afloat, and the time will come when tne United States will be conferring with other nations of the earth in regard to monetary and currency matters, fixing the value of currency. In the matter of fixing the value of the currency of nations and making arrangements essential among civilised nations, if we are to live together by peace and prosperity let nothing be said here which would make us in these conferences a cripple among nations of the earth.”

A message published yesterday stated that, following the Supreme Court’s adverse decision against the Administration’s petroleum control programme, the tribunal started consideration of perhaps the most vital phase of the New Deal, namely, Congressional action iu voiding the so-called gold clause in public and private securities. A test suit involves the holder of a single bond of the Baltimore-Ohio Railroad, who contends that a 22-dollar interest payment should haye been equivalent to the old gold value or about. 40 per cent, more, and that, in effect, complainant has been deprived of property without due process of law. It is estimated that about 100 billion dollars’ worth of securities are involved in the issue, as well as the entire basis of President Roosevelt's monetary policy. Forthat reason the Attorney-General, Mr. IT. S. Cummings, took the almost unprecedented action of personally defending the suit against the Government before the Supreme Court to-day. He ar-

guetl that the crisis of 1933 was so serious that summary action was necessary “to keep the people from slipping to a lower level of civilisation.”