NEWFOUNDLAND: Situation Saved!

Desperately resolved to raise money and avert default, the Dominion of Newfoundland recently offered to sell Labrador to Canada (TIME, Dec. 28), later hinted that rich U. S. citizens might be invited to lease Labrador—than which, from a British standpoint, nothing could be more deplorable. In St. John's one night last week harassed Newfoundland Premier Sir Richard Anderson Squires sat up to wee hours bickering and dickering with representatives of a syndicate of four Canadian banks. Was it a sale? Next day in Montreal, Canada, where most of Newfoundland's fiscal news breaks first, eager newshawks pounced on Sir Percy Thompson, deputy chairman of the British Board of Inland Revenue recently "loaned" to Newfoundland. Waving away all question of the sale or lease of Labrador, Sir Percy announced that a loan (he would not say how much) had been extended to Newfoundland by the four Canadian banks: Royal Bank of Canada, Bank of Montreal, Bank of Nova Scotia and the Canadian Bank of Commerce. Pecked a newshawk, "Such a loan would be about $2,000,000, wouldn't it, Sir Percy?" "I make no denial," beamed the British Revenue man. "I consider that the situation has been saved. Newfoundland will not default its obligations in January. Britain's oldest colony will not be the first to refuse payments on its debts! That is all, gentlemen." Like Sir Percy, most Englishmen still think of Newfoundland as the ''senior colony" of the Crown, though it was created a Dominion only in 1917 in recognition of Newfoundlanders' War service. Historians are not sure, but most of them think that Newfoundland was the land abounding in a multitude of fish which Seafarer John Cabot discovered in 1497 and claimed for King Henry VII (not VIII).

Still abounding in a multitude of fish, Newfoundland gestured loyally toward the Royal Family last week, adopted a new set of stamps particularly pleasing to George V. His Majesty appears on the two-center, Her Majesty on the three-center and Edward of Wales on the four-center. Newfoundland's 6¢ stamp is reserved for the King-Emperor's favorite granddaughter, famed "Baby Betty," Princess Elizabeth of York.

Clutching her teddy bear, the curly-haired Princess sits upon Newfoundland's new stamp between a Scotch thistle and an English rose.

Other new Newfoundland stamps: 1¢ catch of cod; 5¢ caribou; 10¢ leaping salmon; 14¢ Newfoundland dog; 15¢ baby seal; 20¢ view of Cape Race; 25¢ fleet of sealing boats; 30¢ fleet of fishing smacks.