LETTERS TO THE EDITOR
From: Harold Lever, MP, Dennis W. Hackett, Geofirey Rippon, Godfrey Smith, Robert Rhodes James, John Connell, Keidrych Rhys, Robin Blackburn, Timothy D'Keeffe.
Dealing with the Deficit
SIR,-1 am glad that Nicholas Davenport in his excellent article, 'Dealing with the Deficit,' rejects the conventional remedy of the unconventional radi- cal which is devaluation and dear money. It must be recognised that a great deal of the pressure, which builds up against sterling in times of crisis, comes not from foreigners moving their hot money about, but from domestic sterling sources quite legitimately concerned to protect their trading interests. It is sur- prising that the Bank of England has not been able to contribute anything to the solution of this domes- tic problem in all these troubled years. It was gener- ous of Nicholas Davenport to support one approach, which I myself have suggested, namely, the offering by the Bank of England to UK traders of facilities to insure their currency risks without throwing pres- sure on the exchange markets. Something really must be done upon these lines. How long arc we to remain passive on this vital matter of 'leads' and 'lags' which is well within our control and jurisdiction?
House of .SWJ
HAROLD LEVER
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