Manawatu Daily Times Financing British Industry

Manawatu Times, Volume LV, Issue 7197, 21 April 1930, Page 6

Manawatu Daily Times Financing British Industry

The formation of a New Zealand fur board is announced. Its purpose is to promote the production and marketing of rabbit wool and pelts. The board consists of seven members, Messrs W. S. Wright and B. Volckman, Canterbury; J. Mclntosh, Central Otago; L. Driscoll, Lower Hutt; E. Beale, Taranaki; W. S. Ferguson, Wanganui and A, Sainsbury, Auckland

The announcement that a Bankers’ Industrial Development Company, with a nominal capital of six millions, supported by many of the great banking institutions, has been registered, brings nearer realisation the huge scheme for financing British industry, forecasted some little time ago by Rt. Hon. J. H. Thomas. When the British Labour Minister first launched his idea the critics, possibly with political intent, were moved to superior amusement, but when he revealed that all the big joint stock banks with' one exception had agreed to join in the scheme with the Bank of England, they were frankly incredulous. As a matter of fact they were able to quote half a dozen chairmen of leading banks who seemed to have spoken to the opposite effect. The chairman of the Westminster argued that the banks could not lock up funds in long-term industrial investments; the chairman of the National Provincial held that capital for permanent investment could be found only from savings, and suggested that the Government's social services would absorb all the money available; the chairman of Barclay’s said that what industry needed was reorganisation from within; and the chairman of Lloyd’s objected that the banks did not possess the .necessary detailed knowledge to enable them to handle industrial reorganisation. Yet here the scheme is definitely arranged and in a way that none of thd* critics anticipated, for it is a new corporation that is being formed, with its own competent board of directors and with a special advisory council to supply the technical industrial knowledge. Everyone is agreed that industry needs reorganisation, but the difficulty has been to find capital to finance the plans. The official view of all the banks seems to have been that the reorganisation would have to take the form of great combinations and amalgamations, partly to secure the full effect of financial resources, and partly to reduce costs; and the chairman of Barclay's Bank pointed out that the banking institutions themselves had been combining for this very purpose. This development in banking organisation was forced, more or less, of course, by post-war conditions, for otherwise it would have been difficult for them to carry the heavy burden of finance in recent years, and the advice to industry had sound sense behind it. To some small extent, it is true, industries have been combining their forces, but the movement in Great Britain has not kept pace with that in other countries. The great point in favour of the new financial scheme is that it has the support of the Bank of England, and especially of Mr. Montagu Norman, who will be chairman of the new corporation. Indeed, it is suggested that the scheme had its origin in Mr. Norman’s own brain. Dr. Sprague, of Harvard University, was lately summoned to confer with the Bank of England on the question of industrial finance, and Professor Henry Clay, of Manchester, was appointed economic adviser to the Securities Management Trust, so that the Bank has not hesitated to call to its aid the leading experts in their special branches. The announcement now made gives reason to hope that the rationalisation of British industries will proceed rapidly and on safe lines, and at the least it can be claimed that an advance of tremendous importance has been achieved' in the preliminary arrangement for the provision of finance.

The Napier musical and elocutionary Easter competitions aro in full swing and the entries are a record numbering 1200, necessitating of two halls and the engagement of associate judges. Many outside competitors aro present and the standard of work is .very high. The festival continues till Wcdnosday (says m Press wire). ,