gold clause

Those who bought bonds in the 19th century had no idea that the gold clause would be invalidated.

The gold clause was retained on Banco Central's notes until 1939.

Such gold clauses were intended to protect against the United States devaluing the dollar.

Ideas floated about the White House to withdraw the right to sue the government to enforce gold clauses.

Roosevelt also dissolved any "gold clause" within contracts, public or private, that guaranteed payment in gold.

Economic regulation again appeared before the Supreme Court in the Gold Clause Cases.

Gold clauses specified within business contracts allow the creditor the option to receive payment in gold or gold equivalent.

The consolidated Gold Clause Cases were:

First, it was held by Denning LJ that a "gold clause" in a domestic contract was void as being contrary to public policy.

Cummings personally argued the right of the government to ban gold payments before the U.S. Supreme Court and won the "gold clause" cases.

(The constitutionality of this Roosevelt policy was later challenged before the Supreme Court in the Gold Clause Cases.)

Reed's invaluable assistance in defending the federal government's interests in "the Gold Clause Cases" led Roosevelt to appoint him Solicitor General.

Congress also passed a joint resolution cancelling all gold clauses in public and private contracts, stating such clauses interfered with its power to regulate U.S. currency.

As such, the abrogation of both private and public contractual gold clauses was within congressional reach when such clauses represented a threat to Congress's control of the monetary system.

Creditor concerns in respect to inflation, war, changes in government, and any other uncertainty about the future value of currency would be common reasons for adopting a gold clause within a contract.

(Cummings and Assistant Solicitor General Angus D. MacLean argued the Gold Clause Cases, which eventually marked some of the first successes for New Deal economic policies.)

He stipulated that the capital for the prizes should be invested only in "safe securities," which at the time meant bonds with a "gold clause," or those that allowed the holders to demand payment in gold.

The Debate on Profound Changes of Circumstances and the Interpretation of Gold Clauses in International Transport Treaties (In: Netherlands International Law Review, vol.

L. 93-373 did not repeal the Gold Clause Resolution of 1933, which made unlawful any contracts which specified payment in a fixed amount of money or a fixed amount of gold.

The gold clause was retained on Banco Central's notes until 1939, when the text was modified to 'Pagará al portador á la vista CINCO SUCRES'.

A gold clause may prove valuable to the creditor in long term contracts, wherein questions may arise as to whether a currency in use at the time the contract was entered into would still have the same value when payment is due.

The 2008 decision 216 Jamaica Avenue, LLC vs S&R Playhouse Realty Co. established that a gold clause in contracts signed before 1933 was only suspended not erased, and under certain limited circumstances might be reactivated.

The case, originally filed as Norman v. B & O Railroad, reached the Supreme Court along with two cases filed in the United States Court of Claims, under the single heading of the Gold Clause Cases.

McReynolds also wrote the dissent in the Gold Clause Cases, which required the surrender of all gold coins, gold bullion, and gold certificates to the government by May 1, 1933 under Executive Order 6102, issued by President Franklin Roosevelt.

The Series 1934 Gold Certificates are also distinguished from the previous Gold Certificates in their gold clause, which adds the phrase "as authorized by law" to denote that these notes cannot be legally held by private individuals, and by their distinctive orange reverses.