Not desperate at all
"Desperate" is a mischaracterization. Wilson's feelings were mixed, and when you read his account of The Smiths it simply wouldn't have made good cinema to include any references to his reasons for not signing them (beyond God's hilarious one-liner).
'But, I suppose, like the Smiths and later Oasis and Pulp-- all of whom came to Factory when Factory wasn't in a position to sign them-- the timing just wasn't good enough. That has often been our problem. Bands have often approached us when we were on a lull and couldn't offer anything. Soft Cell once came with a fantastic demo tape. And the biggest mistake of all...the most Factory-like non-Factory band in the world, the Smiths, came just at the point when I thought we were going to pack it in. Rob [Gretton, New Order's late manager] thought they were the new Beatles and he was right, in a way, but I couldn't see any point in saddling this extraordinarily talented young band with a company who couldn't seem to do anything right.'
:: From Joy Division To New Order: The Factory Story
'Although Wilson was impressed by the group, however, he was over-cautious about adding new talent to his label. "Factory's once great low promotion had become a severe encumbrance," he argued. "It was only years later that I realized we'd become a dinosaur and our non-promotion was an albatross around our neck. I was depressed that I couldn't sell any Stockholm Monsters records. I believed deeply in them and still do to this day. So I was thinking, 'Hey, another great Manchester group but, wait a minute, why take on Steven if I can't sell records'. I just felt there was no point. I was down. That's my story."
Of course, Wilson was not the only voice at Factory. New Order manager Rob Gretton was the company's A & R head and had an important say in judging The Smiths' demo tape. His response was equally discouraging. "He thought the tape was shit", Wilson confirms. "This was the man who was walking round Manchester before and after the demo saying 'The Smiths are the new Beatles'. He kept saying it and yet he felt the demo wasn't up to it and that's what we go on. He thought they were the new Beatles but didn't like the demo. That was Gretton's attitude."'
:: Morrissey and Marr: The Severed Alliance
In retrospect Wilson made a shrewd decision, given that Morrissey grew so upset with Rough Trade, whose marketing of The Smiths was much better than Factory's would have been. Plus, as has already been stated by other posters, it seemed that both Morrissey and Marr were ambivalent (at best) about signing with Factory, so it wouldn't have happened anyway. In any case, both The Smiths and Factory transmitted different and equally great kinds of genius from Manchester to the rest of the world. That they never joined forces was no loss.
