London, Jan. 18.
The Lancashire cotton trade is ithe first staple industry to take steps to profit by the financial assurances given by Mr. J. H. Thomas, the Lord Privy Seal, on January 10.
The executive joint-committee the cotton trade organizations Manchester have given long consideration to the ways and means of formulating practical schemes and have decided to encourage the principle of the amalgamation of the various sections of the dustry. They will make a definite} announcement regarding the Government's offer at a later stage.
Discussions are also to be proceeding in the iron and steel industry with a view to 2 considerable extension of the movement towards amalgamation and reorganization.
Regarding the promise of finan-dal assistance Mr. J. H. Thomas, ina speech at Manchester, said in considering the steps which might be taken to produce a better employment position by improving the organization and equipment of British industries, he found that 9 were handicapped in bringing about the necessary reorganization and re-equipment by the fact that the long continued trade depression had pushed to the limits the credit they could reasonably expect to obtain from their bankers or which bankers could reasonably be exted to provide.
'4"As a result of the consultations have had," Mr. Thomas continued, Tam now in a position to state that the City of London is deeply interested in placing industry upon 'a broad and sound basis and is ready to support any plans that, in its opinion, will lead to this end.
"Those in the City who have been studying this matter are] convinced-that a number of our important industries must fundamentally reorganized and, modernized in order to be able to produce at prices which will enable them to compete with the world.
"Any industry which proposes schemes that, in the opinion of those advising the City, conform with this requirement, will receive the very sympathetic' consideration' and ce-operation of the City in working out plans and finding the necessary finance.
"In the case of individual undertakings, the City will be similarly ready to help, provided the scheme} under discussion fits in as a part} of the general plans for jon as a whole and changes will enable taking to become an effective unit in combination and ce-operation with other similar undertakings.
"That is the authorized statement made with the authority and knowledge of the City. It is made deliberately to the business community as a whole. What, after] all, does it~ mean? It is, for the first time, on behalf of the City, an open invitation to busi industry to come forward with real schemes for organization."—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.