|Series||74th Cong., 1st sess. Senate. Doc. 21|
|The Physical Object|
|Pagination||iii, 42 p.|
|Number of Pages||42|
|LC Control Number||35026143|
1 Introduction In I wrote and edited The Gold Clause: What it is and how to use it book’s forward was written by Henry Hazlitt, noted free market journalist who for decades wrote about business and economics for such publications as The Wall Street Journal, The Nation, The American Mercury, Newsweek, and The New York Times. By the so-called gold clause — promise to pay in “United States gold coin of the present standard of value,” or “of or equal to the present standard of weight and fineness” — found in very many private and public obligations, the creditor agrees to accept and the debtor undertakes to return the thing loaned or its equivalent. The gold clause question came before the Supreme Court, which denied “the right to demand payment of obligations indexed to a certain value of gold.” Chapter Seven relates the ins and outs of just how the gold clause was finally relegalized. By Law Review Editors, Published on 12/01/ Recommended Citation. Editors, Law Review () "Some Aspects of the Nullification of Gold Clauses in Obligations," University of Chicago Law Review: Vol. 2: Iss.1, Article
A gold clause is a provision within a contract that requires consideration to be paid in gold or another particular type of currency upon request. Even obligations from loan contracts with gold clauses are only subject to payment in the U.S. currency that is considered legal . The majority blithely upheld the Joint Resolution invalidating gold clauses in private contracts, citing broad congressional power to regulate the economy and, with respect to the impairment of government obligations, denying that bond holders had been damaged by the taking. The Court never pronounced upon the constitutionality of the gold seizure (for reasons we speculate on in our book), the legality of which it simply took for granted. The cases it chose to hear involved the cancellation of gold clauses in public and private contracts. Known as the Gold Clause . Per Ti United States Code, Section , a gold clause contract is perfectly legal. That said, there are a few nuances that go into drafting effective clauses. However, with information readily available, gold clause contracts can find a foothold in the financial lives of many citizens and eventually become adopted more widely in the.
The Gold Clause Cases were a series of actions brought before the Supreme Court of the United States, in which the court narrowly upheld restrictions on the ownership of gold implemented by the administration of U.S. President Franklin D. Roosevelt in response to the Great last in this series of cases is notable as the most recent Supreme Court opinion whose outcome was leaked. Amendments. —Subsec. (d)(2). Pub. L. –61 struck out at end “This paragraph shall apply to any obligation issued on or before Octo , notwithstanding any assignment or novation of such obligation after Octo , unless all parties to the assignment or novation specifically agree to include a gold clause in the new agreement. That treaty had a gold clause in it. After a long negotiation in the lease payment was increased retroactive to thereby reflecting the dollar devaluation. Thus, the U.S. made good on its international treaty obligations. “American Default” is a worthy addition to the economics literature of Reviews: The property of holders of the gold clause obligations was expropriated; the loss in purchasing power of their dollars during the interim is easily .