(1936) "Outline of the Gold Clause Cases." North Carolina Law Review 15 (3): 249-54.
(2012) "The Gold Clause Cases and Constitutional Necessity." Florida Law Review 64 (5): 1243-78.
Plaintiffs in the gold clause cases
before the Supreme Court hoped that their suit would allow them to reap even higher returns.
Timberlake closes with a recount of the Gold Clause Cases
, which centered on the Franklin Roosevelt administration's outlawing of private gold holdings.
This harkens once again to the so-called Gold Clause cases decided by the Supreme Court.
While the Gold Clause cases and the more recent line of cases provide an avenue for standing, at least for the Social Security Trust Fund, they present another obstacle: that of remedy.
In the Gold Clause cases the Court held that it could not order Congress to issue a specific type of currency and only that specific type of currency would suffice to redress the harm at issue.
All of this would be important in the Gold Clause Cases the Supreme Court heard in 1935.
The cases challenging the invalidation of the gold clause were making their way through the court system and would eventually be combined in the Gold Clause Cases. They involved different legal issues and presented different fact patterns, including different questions of legal standing and computation of damages.
The issue quickly reached the Supreme Court in 1934 and gave rise to an important and controversial set of decisions known as the Gold Clause Cases (see Holzer 1980).
Given the unconstitutional reasoning on both sides of the Court decision, what judgment on the Gold Clause Cases might have preserved constitutional integrity and prevented unwarranted "enrichment" of creditors?
Had the Court dutifully observed that the Hepburn case had been reargued and the decision reversed the next year, they would have had both a model for further argument in the Gold Clause Cases and a decision that did not rest on the horns of a dilemma.