Finance—Public & Private
Our Industrial Problems
DURING recent weeks much has been heard of the pros- pect of an improvement in industry along lines of rationali- zation, and in last week's Spectator, when dealing with the speech of Mr. J. H. Thomas at Manchester, I referred to the practical interest taken in the matter by the Bank of England. In his speech on Tuesday, to shareholders of Barclays Bank, the chairman, Mr. F. C. Goodenough, dealt with the subject in thoroughly practical fashion. He was able to report that there were not wanting in some directions indications of an improvement in trade, and even in connexion with the unemployment problem he gave the sensible reminder that in spite of the heavy figures of unemployment there are on an average 250,000 more insured people employed than a year ago. This is a point too often forgotten in considering the problem of unemployment, for it must not be forgotten that owing to the introduction of female labour a much greater number of members of a family in the middle and lower classes is engaged in various forms of employment than was formerly the case. Nevertheless, the -fact remains that many of our staple industries are in a depressed condition, and indeed the joint stock banks, as Mr. Goodenough pointed out, have given abundant proof of the efforts which have been made to give support to these industries. Notwithstanding high rates of interest during recent years, and fairly high profits by the banks, it is not the shareholderS of those institutions who have benefited in the shape of increased dividends. In view of the needs of industry, and the necessity to be prepared to give all possible assistance, the higher profits have been applied to further strengthening the reserves and placing large amounts to contingency funds, which 'have frequently had to be invaded to meet bad debts arising out of the industrial depression. The banks, indeed, have fully recognized that they have a duty not only to their shareholders but to the community as a whole, and it is the conservative policy adopted with regard to dividends which has enabled them thus far to render aid to the country's staple industries.
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