BRITISH INDUSTRY

Poverty Bay Herald, Volume LV, Issue 17238, 19 April 1930, Page 5

BRITISH INDUSTRY

NEW FINANCE SCHEME EFFORTS AT RATIONALISATION (British Official Wire-loss.) Rcc. 10 a.m. RUGBY, April 18. Considerable interest Ims been aroused in the city by the Lord Privy Seal's announcement of (he formation of a company which it is hoped will play an important pari in the rationalisation of basic industries. It has been registered under the name of the Bankers' Industrial Development Co., Ltd., with a nominal capital of £6,000,000, divided into 45 A shares and .15 B shares, each of £IOO,OOO. The object is to consider schemes for rationalisation, and if they are approved to arrange for the provision of new, and the use of existing agencies for advancing such money as may be essential. The Times' city editor says the new organisation will fill a real need. The basic industries are those which have suffered most from the industrial revolution that has occurred since 3914, and their need for rationalisation is therefore greatest. This process involves not only the writing oil' of much capital, but also the provision of new finance. 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 be very influential in securing the necessary financial assistance that may be required until the reconstructed industries arc strong enough to appeal to Hie investor direct. The new company will not, in the ordinary way, finance the reconstruction of industrial companies, but only groups of companies.