The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, JANUARY 20, 1930. INDUSTRY AND FINANCE.

Hokitika Guardian, 20 January 1930, Page 4

The Guardian And Evening Star, with which is incorporated the West Coast Times. MONDAY, JANUARY 20, 1930. INDUSTRY AND FINANCE.

The speech delivered recently to the' Manchester Chamber of Commerce by M.r J. IT. Thomas is one of the most infportant pro non ncem c n ts, considers the Auckland Star, made by a member of the Government since the Labour Party took office/. As '.Minister for Unemployment, Mr Thomas knows that no permanent improvement in Hr i tain’s common ijal and industrial condition is possible unless production is vigorously stimulated and efficiently organised on the one hand, and the markets for British exports are enlarged on the other. , The obstacle to either of these developments is largely financial, and it is to this aspect of the problem that Mr Thomas is now devoting his attention. For many years it has been a standing grievance among capitalists and promoters of industry at Home that the banks do not give business enterprise all the assistance it has a right to expect. These complaints have been accentuated since the war, and more particularly since the restoration of the (fold Standard, with its attendant deflation and the inevitable destruction of credit that accompanied it. The Labour Party has, on the whole, sympathised with the critics who attacked the accepted policy of the. City and .the Money Market and the extremists have frequently threatened to coerce

the Bank of England into more generous habits by legislation. In view of all this, it is indeed interesting to ieani, on? the authority of Mr Thomas, Jiat the' City is prepared to assist in •nancing the reorganisation of British ' .nuustries and to give direct help to such enterprises as can show reasonable grounds for accommodation and a fair prospect of success. Of course, die banks will need to be satisfied that the industries assistance can be placed on a thoroughly sound footing. But granting this, the City, in the Minister’s own words, has issued “an open invitation’’ to business men to submit to its schemes for the organisation of industry with a definite promise of financial aid to those that can meet its requirements. The compliment paid by Mr Thomas to Sir Montague .'Orman seems to indicate a complete readjustment of relations between the Labour Government and the City. But what is of far more serious importance is th 2 fact that the Bank of England and its financial satellites have declared their willingness to assist in that process of industrial reconstruction which is regarded by all the most competent authorities at Home as an essential condition of British prosperity. But Mr Thomas is well advised not tp,. depend solely on this offer of financial assistance for Britain’s industrial reconstruction. He rightly lays great stress ‘upon “the need of development of the Empire.” and if lie will only realise the value of Imperial markets, and the immense potentialities of the Dominions, he may find the great problem with which lie is now struggling by no means incapable of solution.