Cotton and the Bankers There is a serious hitch in
the negotiations between the reformers of the Lancashire cotton trade and the Bankers' Industrial Development Company which represents the Bank of England and which (through the mouths of Mr. Thomas and Mr. Clynes) promised financial support for satisfactory schemes of amalgamation. It appears now that the Bankers insist on confining their support to schemes for re-equipment. They are unwilling to find money for those cash adaptations which are almost inevitable when great firms enter into a merger. Lanca- shire has been taken by surprise and complains that the Bankers' policy is tantamount to saying that stable businesses shall be subject to the same terms as necessarily have to be put up with by virtually insolvent businesses. In fine, the argument is that if there is to be no aid for cash adaptations the most important proposed amalga- mations will become impossible. The delay in Rationalization which is introduced by this dispute is most regrettable, but one cannot help seeing that any cautious Banker has reason for saying that he will not pay for past mistakes in the capitalizing of industry. We do not know enough of the details to have a decided opniion, but we trust that the essential facts will quickly be made known.
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