TO IMPROVE INDUSTRY

Evening Post, Volume CIX, Issue 92, 19 April 1930, Page 7

TO IMPROVE INDUSTRY

RATIONALISATION IDEA . NEW BRITISH SCHEME British Official Wireless. ■■'.■■ KUGBY, 16th April. Considerable interest has been aroused in the City by the Lord Privy Seal's announcement of the formation of a company which it is hoped will play an important part in the rationalisation of basic industries. It has been registered under the name of the Bankers' Industrial 'Development- Company, Limited, with a nominal capital of £.6,000,----000, divided into 45 A' shares and 15 B shares, each of £100,000. The object is to consider schemes for rationalisation, and if they are approved to arrange for the provision of new and the1 use of existing agencies for advancing such money as may bo essential. : "Tho Times" City Editor says the new organisation will fill a real need. Basic industries aro those which have suffered most from tho industrial revolution that has occurred since 1914, and their need for rationalisation is therefore greatest. This process involves not only tho writing off., of much capital, but also tho provision of new. The difficulty of finding fresh capital for devastated industries will now, it is hoped, be removed by the, operations of the new company, for provided schemes are considered sound it will, bo very influential in securing the necessary financial assistance that may be required until tho reconstructed industries are strong enough to appeal to the investor direct. The new company will not in the ordinary way finance the reconstruction of industrial companies, but only groups of companies.