TEMPORARILY MET

Evening Post, Volume CXIII, Issue 1, 2 January 1932, Page 11

TEMPORARILY MET

NEWFOUNDLAND LOAN

SYNDICATE OF BANKS

(Received 2nd January, 10 a.m.) ST. JOHN'S (Newfoundland), Ist January.

Members of the Executivo Council to-day considered terms offered by a syndicate of four Canadian banks in return for loans to meet Government interest payments, which ara understood to be 2,220,000 dollars; on Ist January.

It is reported that tho syndicate demanded an embargo on tho export of gold, the notes of the four banks to be made legal tonder in Newfoundland, and that the banks should.'maintain control over tho Customs revenue.

_ The Council failed to reach a decision, but the negotiations were conr tinued_ and later the Prime Minister, Sir Richard Squires, announced that they had been successfully concluded. Sir Richard Squires said that the policy of the Government in tho matter of the conservation, of tho gold reserve in the Empire". shall be in har; mony with that already adopted in the United Kingdom, and as a natural incident of that policy the notes, of the syndicate banks shall be legal tender in Newfoundland. • The loan is in:the form of temporary debentures for a period of six months, with interest at 5i per cent.

Tho Government's programme ox reorganisation, a combination of departments, and rigid economy in connection with the Public Service, is being pressed forward, Sir Richard Squires said.