Siege economy
There is plainly little to fault with Sir Keith Joseph's hard money proposals though the immediate need of industry and commerce is for a relaxation of the tight money policy in the short term. The money supply has been squeezed very hard indeed during the past few months and has been reduced as much as any money theorist would desire. Now the need is for an immediate but selective relaxation coupled with whatever form of seige economy that an economic overlord committee, of the sort envisaged by Lord Alport in his masterly discourse and manifesto for a National Government in last week's Spectator, should decide. The proposals won't probably include a simple form of rationing and import and exchange controls which did so much to control inflation during the war years. Only such action of Lord Alport suggests, unfortunately impossible until after the general election, might be seen as spreading the burden equitably between all sections of the community. Though this is the immediate need, no time should be lost in ensuring that resources are channelled according to the national need which must mean another body like the old Capital Issues Committee controlling the raising of capital on the stock exchange, tighter exchange control and the strict control of the goverhment's own borrowing requirements outside the banks. This reduces bank deposits fiercely and prevents interest rates falling. The reflexes of those responsible for the control of our economic fortunes are predictable. Ferranti is in ;rouble and owes its bankers £18 million. Jump in and say that government aid is available under the Industry Act. This is not what should have been done. There should have been no such assurance since GEC (with the famous £200 million in cash) was there and so were Thorn and Plessey if Ferranti were reallY under pressure, which seems unlikely with the young, party-loving, helicopter-flying, polo-playing chairman spending a relaxing weekend shooting at Balmoral.
Noblesse oblige
A few months ago I remarked on the arrogant ways of the Bedford Estate in Bloomsbury marking with a ducal coronet carved in slate or stone on their new developments. I suggested that this might be imprudent with a left wing council in control of Camden. Now I see that in Russell Square there are offices to let on short agreements. Applicants are referred to the Bedford Estate office. Not to the 'Manager' or 'Agent' or possibly 'Factor,' but to the Steward:The Steward, I ask you.
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