HC Deb 15 May 1924 vol 173 cc1543-4

asked the Chancellor of the Exchequer if he is aware that for many years the bulk of the spinning section of the Lancashire cotton trade has been financed by means of unsecured loans repayable at short notice, and that the continued depression in the cotton trade has caused a large amount of loan money to be withdrawn? is he aware that spinning companies are now experiencing serious difficulty in meeting the demands for repayment of loans, and that operatives may be thrown out of employment by the compulsory closing of mills unless steps are taken to give confidence to loan holders; and will he consult with those bankers who have knowledge of the difficulties and with the Master Spinners' Federation and the trades unions sections affected, with a view to prevent further hardships in the cotton trade?


I have been asked to reply. I am aware of the facts stated in the first part of the question, but as regards the second part, I understand that, speaking generally, there has recently been an improvement in the position of those sections of the spinning industry which have been affected by the depression, and that the outlook is more encouraging. The position is being closely watched, but, as at present advised, I do not think that the step proposed would be likely to serve any useful purpose.