Interest rates

Press, 26 June 1989, Page 20

Interest rates

Sir,—A part of what G. D. Stairmand complains about is caused by high interest rates. If you borrow capital at high interest, you need a high return on capital to pay the interest. That short-term goal tends to override long-term considerations in many companies. A second cause is that people who run investment companies tend to assume that they know how to run every sort of company, while in fact different types of business are different. A reduction in interest rates and the introduction of a take-over tax would reduce the problem, but not completely solve it. — Yours, etc., JOHN RING. June 17, 1989.

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