National Shipbuilders Security and the loss of naval yards

Promoted by the governor of the Bank of England, National Shipbuilders Security bought yards and placed covenants that prevented their reuse. Supporters believed Britain had surplus yards, that other industries needed their skilled workers, and that waterfront land could support other economic uses. The policy was meant to concentrate work in stronger firms, yet some closed waterfronts remained unused and William Beardmore and Company's advanced yard disappeared. At the same time, the government subsidised merchant owners to replace old tonnage, creating a contradiction between suppressing capacity and trying to sustain orders. Continuous cruiser and sloop work could instead have kept firms such as Palmer's solvent, preserved supplier competition, and lowered the monopoly risk facing rearmament.