Those who failed to send their monthly returns were ordered to pay interest of 10 per cent above the prevailing lending bank rate.
It would have to bring in either a higher bank rate or more restrictions, or there would have to be massive taxation.
No person can borrow from his bank at the bank rate.
The raising of the bank rate began last year, and there have been two cases of it since.
Can they to-day stand up to the new credit squeeze, let alone an increased bank rate?
But that is only part of the grave burden that this high bank rate places on this country.
I am a believer in the efficacy of using the bank rate, for the simple reason that, when properly applied, it works.
A high bank rate also involves higher rents and interest charges on mortgages.
