REORGANISING INDUSTRY

Nelson Evening Mail, Volume LXIV, 29 May 1930, Page 2

REORGANISING INDUSTRY

A CO-OPERATIVE EFFORT The Bankers' Industrial Development Company represents a co-operative effort on the part of all the important banking and financial institutions to assist in restoring the basic industries to a condition of soundness and prosperity, said "The Times" in commenting on the announcement of its formation. It owes its inspiration in the main to the. Governor of the Bank of England, and to those associated with him, and the scheme carries the earnest good will of the Government. Its objects are described as being "to investigate and advise on all manner of financial, industrial, and economic questions, to aid in the formulation and carrying into effect of schemes and arrangements relating to the financing, development, co-ordin-ation, amalgamation, reconstruction or reorganisation of firms, companies.and businesses of 'all kinds." In practice the chief function of the company wlil be to encourage schemes of rationalisation among the basic industries. Provided schemes are approved by it, the new company will act as a channel through which, any necessary financial assistance will be forthcoming. It will not provide finance itself, nor Will it finance the reconstruction of individual concerns, but only groups. If those in authority in the different industries will co-operate in producing, sound schemes of rationalisation, they will, through the influence of the Bankers' Company, be assured of any fresh capital they may require until they are strong enough to appeal to the investor themselves. Modern organisation, the most scientific plant, and proper finance are necessary to a rationalised industry, the "Times" added, but these will avail little if the industry be overburdened by higher working costs than its foreign competitors by heavier taxation, and by other hindrances to economical production from which its rivals are free. The industrial struggle is harder than it has ever been, and via tory will rest with. the nation which has the will to work and the determin-; ation.and incentive to succeed.