MR THOMAS’ SPEECH

Hokitika Guardian, 14 January 1930, Page 6

MR THOMAS’ SPEECH

WHAT IT MEANS

[United Press'Association—By Electric Telegraph.—Copyright.] LONDON, Jan. 12.

What exactly did Mr Thomas mean in his speech at Manchester, is a question asked everywhere. Some say he means a big Government push for the general rationalisation of industry.

The “Observer” asks: “What is the cost of rationalising a grept Conservative depressed industry like coal, cotton or steel. Does Mr Thomas realise that modernisation means labour saving, yet the policy is right. It means the scrapping of obsolete machinery factories, workshops, obsolete minds and obsolete business methods.”

The “News of the World” understands a vital feature of the proposal is that the .Government null guarantee banks to the extent of from tv o to two and a half per cent on money lent to industries for the purpose of reconstruction.

'Conferences will bo" held between banks and industries committees to formulate plans to securo the sanction of loans.

A further statement by Mr Thomas is awaited with interest.

FINANCIAL VIEW

OF MR. THOMAS’S SPEECH

LONDON, Jan. 13. The “Morning Post’s” financial writer commenting on Mr Thomas’s speech, emphasised it would be dangerous if the speech created an impression that the bankers should make even freer advances to all commercial enterprises. He says, “It is a fact that banking competition has tended and is tending to give too strong an urge in that direction. During the last decade banking facilities have been too readily available to many industrial undertakings, which really requiied complete reorganisation, before large credits were granted. Most of the frozen credits with which bankers have had to contend in recent years have been connected with the assistance given to staple industries.”