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Catalogue Reference:CAB/24/253
Image Reference:0016
lyjOUMSNT I S THS PRQPBRTY OF H I S BRITANNIC MAJESTY S GOVERNMENT.
f
COPY NO.
£ft
16(35).
CABINET.
OOTTON SPINNING R5DUN33ANOY SCHEME.
Memorandum "by t h e P r e s i d e n t
1. R e c e n t
the
cotton
developments
industry
become n e c e s s a r y
have
in
moment t o
g i v e my c o l l e a g u e s
trade,
the
This,
during
In
the
of
eighteen
last
preparing
surplus productive
The
to
of
a "ballot
measure
of
capacity
the
trade,
suprjort
-
in
of
are
for
used e i t h e r
the purchase
for
It
in
a time,
s h o u l d be r a i s e d
spindles.
quantity
the
spinning
of
disposal
tested,
of
was
given
of
section
under
to
of
of
an e f f e c t i v e
the
redundant
to
withdrawn
is
that
the
a statutory
that
the
scheme
that
result.
The
be
plant
from
fund
levy
on
industry
unless
the
and
plant
sufficient
In order
accountant
these
scheme.
of
scheme w i l l b e
an i n d e p e n d e n t
and o f
a fund,
the
submitted
considerable
of
plant
the
representing
of
consider
the
a
capacity,
however,
committed
in
the
elimination
favour
security
i s provided,
to ensure
t h i s may b e
the
and t h e p r o p o s a l
u n t i l L o r d C o l w y n ' s Committee
for
the e v e n t s
for
outright
respect
upon t h e
should n o t be f i n a l l y
offered
convenient
a Committee
the establishment
compensation
for
certain
seems a
recorded
in
may
months.
the p r o d u c t i v e
scheme p r o v i d e s
operation
for
and h a s r e c e i v e d
the v o t e s
more t h a n t h r e e - q u a r t e r s
for
which i t
o f L o r d Colwyn,
a scheme
of
scheme t h e y h a v e p r e p a r e d h a s "been
about f o u r - f i f t h s
or
year
Trade.
section
at
a summary o f
under the Chairmanship
industry.
spinning
therefore,
last
the summer
task of
the
to approach P a r l i a m e n t
powers.
2.
the Board o f
reached a stage
statutory
Lancashire
of
that
has been
in
a p p o i n t e d and i e
engaged i n
oollecting
spinners w i l l i n g
to
of
considered at
association
recently
the
if
t h e same
to
deal,
had l e s s
3.
dispose
inter
of
and
a n d nas b e e n
Organisations
elimination
of
support,
colleagues
to authorise
the
should be p r e p a r e d
possible
to
say w h e t h e r
Golwyn's
Committee
include a formal
legislation;
me t o p r o m o t e
collection
in
in
taking
to
order
the C h a n c e l l o r
of
they a r e unable
on t h e
is
security
thus
It
0
is
the purposes
of
interests
the
of
the l o a n
afford
all
that
it
that
the
but the
any l e v y w h i c h the
be a s
the c o t t o n
may be
assured
sanction
the n e c e s s a r y
of
the
Government g u a r a n t e e
loan
scheme
some way
loan r e q u i r e d
l o n g as
period of
industry
to
of
course,
lenders w i l l
only
financial
could
W h i l e we
g a i n , and n o t
require
t h e a n n u a l amount o f
the
security
for
repayment
15 y e a r s .
industry w i l l
t h a t the
( w h i c h p r o v i d e s , -of
have a l s o
success
have
money.
ordinary way,
out o f
I
consultation
scheme s h o u l d be a r r a n g e d w i t h
t o pay may w e l l
hope
ground,
of
in
yet
necessary
situation,
the G o v e r n m e n t w o u l d f i n d
the
not
Lord
the
statutory
t o borrow
contemplated
the
justify
After
I
p r o v i d e d and t h e
them t o b o r r o w
4
i n 1932.
notwithstanding
thereby endangered,
assist
the
the E x c h e q u e r ,
for
is
s t e p s , which would
to c l a r i f y
that i f ,
the l e v y ,
It
the Government f o r
the Committee
sufficient
necessary
levy.
further
renewed the u n d e r t a k i n g g i v e n
with
the
the
that,
t o recommend my
the r e s p o n s e w i l l
request
but
of
to
surplus
measure o f
for
output
g a v e an u n d e r t a k i n g
c a p a c i t y w e r e p r e p a r e d and s e c u r e d a
legislation
an
dropped.
productive
I
from
scheme
with prices
alia,
the
A
of
C o t t o n Trade
scheme f o r
plant,
the f o r m a t i o n
a g o as 1 9 3 2 , I
J o i n t Committee
a suitable
time f o r
support,
As l o n g
their
particulars
lose
some
the
for
form
levy
the
loan)
fa */ *v
against
the p o s s i b l e
d u r i n g so l e n g t h y
the
levy
cannot
spindle
the
effects
a period.
exceed
(the unit
of
levy,
a partial
5.
date
At various
would p r o v i d e
t h e fund f o r
the
in
I
of
the
of
clear
that
t h e Government
could agree,
assistance
in the r a i s i n g
amount
repayment
or of
the
t h i s was n o t
and t h a t
of
the
of
the
the
levy,
Government
amount
a request
to
collected
I
the l i m i t
have
to
of
which
the
in order
money t h r o u g h t h e
to
with
the
grant.
as
loan.
£500,000
must b e a g u a r a n t e e
of
and
subjeot
the d i s c u s s i o n s
to
per
such an e x t e n t
s p i n d l e s , the
t o be s u p p l e m e n t a r y
Government'3
spindles
total
£1,000,000
purchase
proposal,
section),
have been asked i f
a l w a y s made i t
assist
the
times during
a grant
spinning
be r e d u c e d t o
L o r d Oolwyn's Committee
by the l e v y
i n the
t h e number o f
default
decline
maximum a n n u a l amount
and c o n s e q u e n t l y
may a t some f u t u r e
involve
a fixed
that
some f u r t h e r
Under t h e p r e s e n t
plant
l e n d e r s may f e a r
t o the
of
to
ordinary
channels.
6.
While
position will
be r e q u i r e d t o
collection
of
it
is,
as y e t ,
be reached
legislation
should
general,
s h o u l d have p r e f e r r e d
redundant
know t h a t
capacity
dealt
among t h e members o f
been demonstrated
flour
milling
obtaining
industry
is well
on t h e i r
previous
the
burdens
of
possibility
to
industry
by o t h e r
see- t h e
agreement
and i t
attitude
that
is
I
t h i n k my
problems
of
a redundancy scheme.
in the
has
of
cotton
advance
should
readiness
it
of
shipbuilding,
difficulty
spinners
If
In
co-operation
a considerable
the
measure
for
exists.
e.g.,
But t h e
a
will
i n t h e manner t h a t
industries,
maintaining
knownj
a loan,
w i t h by v o l u n t a r y
shown such a c o n s i d e r a b l e
the
this
and w o o l - c o m b i n g .
and o f
to provide
and t o g u a r a n t e e
colleagues
I
that
i n w h i c h t h e Government
introduce
a levy
by n o means c l e a r
to
should
have
shoulder
turn
out
J o
that
the
ainount
obliged
scheme
problem
industry
of
to
of
the
redundant
situation
t o
scheme,
A united
go
a
in
the
conditions
think
of
we
required
attempt
would,
long
of
dispose
I
legislation
capacity
authorities,
eoonomio
prepared
the
operation.
Internal
provide
under
propose
into
competent
the
plant
are.
way
cotton
In
to
the
a
sufficient
should
to
put
deal
the
with
opinion
towards
industry
of
21st
Trade,
January,
1935.
of
restoring
and
so
working.
W.H.
Board
be
the