and borrowing the remainder from the Exchange Fund.

In your No. 622 you proposed in any case to limit

the loan issue this year to $100,000,000.

(3).

In paragraph 5 of your No. 889, you

proposed to borrow from the Exchange Fund after the

initial loan issue of $50,000,000 and before

proceeding with the remainder of the authorised

issue. I trust this does not imply a serious lack

of confidence in public support for the loan. I

feel that surplus money in the Colony should be

utilised for renabilitation to the maximum possible

extent.

4. If you agree the suggestion in paragrapn 2 above

and in my No. 831 I hope you will be able to introduce

the Loan Bill at an early date.

(46. para.2)

(54)

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