We Admit That in

We admit that in . . . ordinary times the defendants . . . would have been within their constitutional rights. But the character of every act depends upon the circumstances in which it is done. The most stringent protection of free speech would not protect a man in falsely shouting fire in a theater and causing a panic. . . . The question in every case is whether the words used are used in such circumstances and are of such a nature as to create a clear and present danger that they will bring about the evils that Congress has a right to prevent. - Justice Holmes, delivering the majority opinion of the Court
What argument is the Supreme Court making in this decision?

A) Congress can limit free speech as it sees fit.
B) The right to free speech is basic to democracy and government may never limit it.
C) Rights are not absolute and the government may limit them in times of crisis.
D) The judiciary is powerless to overturn laws like the Espionage Act of 1917.