Back on Gold

A stabilization loan of $105,000,000 will be floated as a result of legislation passed, last week in Bucharest, by the Rumanian Chamber of Deputies. Behind this transaction stand the central banks of 14 nations.* Their joint representative in Rumania will be a Frenchman, suave Charles Rist. Last week M. Rist resigned as a Deputy Governor of the Bank of France, hopped a train for Bucharest. There he will assist the new Peasant Government of Rumania (TIME, Nov. 19) to place the leu on an absolute gold basis at its present rate of exchange, 167.18 lei to the dollar.

The $105,000,000 will be distributed as follows: For stabilization purposes the Treasury will administer a revolving fund of $25,000,000, and a reserve fund of $20,000,000. The Rumanian National Bank will receive $25,000,000.

The Manhattan bankers who have finally put through Rumania's stabilization loan, after trying for years and years are Dillon, Read & Co., Blair & Co., Inc., and the Chase Securities Corp.

*Austria, Belgium, Czechoslovakia, England, France, Finland, Germany, Hungary, Italy, The Netherlands, Poland, Sweden, Switzerland, U. S.