Now that the Cotton leaders are convinced that rationalization is
not a cranky idea, their natural gift for organization and dogged perseverance will overcome the special difficulties of this supremely individualistic industry. Financial obligations and years of inflated share capital will weigh heavily and make progress slow, but there is no reason to suppose that the London banks—in contrast with the Manchester banks—will maintain their diffidence towards the first large amalgamation scheme (the Lancashire Textile Corporation) when they are satisfied that the finance is sound. A general moratorium for five years, as proposed, to apply both to the debts due to banks and to loan-holders, would seem to be indispensable. Co-ordination and new methods of marketing, as described in the Report, are welcome evidence of a change of heart in the Cotton Yarn Association—the section which has suffered most from the rapid expans ion of the cotton textile industry in the Far East.
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