FINANCE REACTS TO LAW FIGHT

Dominion, Volume 28, Issue 93, 14 January 1935, Page 9

FINANCE REACTS TO LAW FIGHT

Roosevelt’s Gold Policy FLOW OF CAPITAL TOWARD PROTECTED BONDS By Telegraph.—Press Assn. —Copyright. (Received January 13, 7 p.m.) New York, January 12. The seeming dubiousness' with which the Supreme Court judges received the Government arguments that Mr. Roosevelt’s gold devaluation policy should be held to be valid, had sharp repercussions on the markets today. There was a considerable, flow of capital into Government securities containing the gold payment clause, with the result tliat various Liberty Loan bonds rose up to one point. On the other hand, some fifteen billion dollars worth of bonds issued since the devaluation slumped. The Stock Exchange brokers admitted that they were mystified as to what might happen if the Court's decision is against the Government, many taking seriously Mr. Cummings's plea that chaos would result. Commitments of all sorts were limited, with prices slightly off. , In the final day’s arguments Mr. Cummings made the unprecedented request that the Court should keep its decision open so that, the Government might present further evidence if necessary. Previously several judges, notably Mr. Justice Hughes, sharply questioned various parts of the Government’s argument, particularly the legality of making void the gold clause in Government bonds. Because of the utmost seriousness of the matter the Court will probably consider the case for a fortnight, perhaps even a mouth.