THE PRICE OF MONEY
SIR,—Your correspondent, Mr. J. H. Collins. seems obsessed with algebra, dear money and anti-Levcrism. I am sure that Mr. Harold Lever can take care of himself, but if I understand him correctly all he was trying to say was that the Tories have been manipulating the rate of interest upwards and that under Labour the interest rate could fall 'without much manipulation. The current rate of interest of Treasury Bills is around 3.75 per cent. This has re-' cently been manipulated upwards and under Labour would probably fall to, say, 31 per cent. There is no reason why the Government should not borrow short-term at this rate and re-lend to public housing authorities who, like Mr. Collins, have lately had to borrolk short-term at a much higher rate from the 'hot money' foreigners. Personally, I have no ob- jection to housing subsidies, but in this particular instance the question of a subsidy would not arise.
London, SW.? NICHOLAS DAVENPORF
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