THE CHINA MAIL, WEDNESDAY, APRIL 8, 1958.
Convertibility Of Sterling Delayed On
American
Insistence
By Ronald Boxall
Lotdoh, Apr. 7.
The conciliatory attitude adopted by Mr Butler at the Council of O.E.E.C. meeting in Paris has given rise to second thoughts regarding the outcome of the earlier Anglo- American economic talks in Washington.
Communist
|
Severe Setback In Tin Prices
London. Apr. 7.
The Korean peace moves caused severe selback,it tin prices today.
with £70 per ton sliced off int Thursday's closing quota- tion on the London Stock Exchange.
Sellers Asked £835 per ion (or spot deliveries, while forward deliveries were quoted at care.
THE #pot price Has talici by €100 since April but in more than £200 higher than the pre- Hortal level-Reuter.
HONGKONG
SHARE MARKET
From Olie Cotidipondent)
ESTATE
DUTIES MESSAGERIES.
M
INVESTMENT TRUST FORMED
(By Norman Crump, The Sunday tilhas City Editör)
The formation of Estate Duties Investment Trust marks an important motě (d assißt private companies which are in danger of being crippled by the payment of estate duties consequent upon the death of one of their chief owners.
„Outwards;
MARITIMES
M
PASSENGERS/FREIGHT SERVICE
"FELIX QUSSEL! "LA MARSEILLAISE
Homewards "FELIX ROUSSEL" ..
- tgaven Marseilles
17 Apt.
Hongkong
12 Apr.
MARSEILLAISE" 22-23 May
Hop Rooz
18-12 M
La Marseillen
Fyr Mažia Tokohama
Via
20 May
13
June
Salgun dalgon
Vis Marseilles to all Medietiden & wedt Attica ports. via Djibouti to Madagascar.
Outwards "MONKAY" Homewards
"MONKAY"
This new institution is sponsored by the Industrial and Commercial Finance Corporation, "MEINAM" which is taking up one-fifth of its initial capital "P-HO of £1 million. The remainder of the capital is being found by certain insurance companies and investment trust companies,
Transactions recorded on the them of their to ensure less than £100 a lon. With the.
It now appears that, while giving its official blessing to the idea of an eventual advance towards convertibility for Sterling, the American Government asked Mr Butler to dela y his plans until other West European countries were ready to join in a general assault on currency restrictions. Indeed this would be a logical compromise, for the United States has given almost equal importance to plans for closer European economic co-opera- tion as it has to its advocacy of greater freedom for currency and trade.
Hongkong Stock Exchange this In any event Britain has now fact, to on rising The Econo-thorning were valued at $507,- retraccil some of the steps she mist" survey suggests that the 627.80. The quotations at noon took in November 1951 and again rate of such spending may begin | were: in March of last year when imports were slashed to arrest the loss of gold to Western Europe.cession may be avoided by The decision to raise the quota prompt American Government of certain imports and to free action. others from all restriction will enable Western Europe to earn a further £32 million of Sterling
The important question, how- in the second half of this year. These earnings should be raised ever, is what cort of action would be required by Britain by another £8 million as a result of the higher curteney allowance and other Sterling Area countries were re- Britons may now cinker when the events of 1949 they travel abroad.
1934 ponted
1955. The Economist" These concessions were
pe:- Significantly,
question haps inevitable,
France and deals
Economy Notal For India
Sir
-Says Finance Minister
to seeline some time in 1984. BitARES DUYERS SELLERS SALES Event then, a "pause" or a re-
ORDER OF PRIORITY
in with
ор
DANKS
HK Bank INSURANCES
Canton
Union
HK Fire
20+ 1390
248
SIUPPING
Asla Nav
DOCKS. ETC.
3,40
70
KC. Whart
Assistance of this kid will not, Northern Rhodesian solve the malt problein,
copper for mines, for it would diminish the denth duties will have to be intensity of the competitibh from pald. Yet it will obviate the aluminium. Atalh these inliics need of selling private businesses are able to produce at to strangers.
relatively or of depriving low cost. N'Chauga's production
nssela. In | rossa
Including rayditis. dre, this way it will the continuity of numbers of current price of copper at £280 small concerns which form the n ton, there is tosti, for
life. substantin reduction, while bull backbone of our indudes not leaving mines such as N'Changa |
One million pounds sound a lot of money, drid It may with a substantial margin of be fair to describe the new profit. institution as "pilot plant, be enlarged
experience There are, of course, other gained and the demands for its doubts.
tet
Recent labour troubles assistance Increase. Yel the in the copper-belt have left their kind of business
which
needs mark, while the problems of fuel this kind of help colaists of and power have not yet been
solved. cases where the valuottoti, for
Finally there is death dutles les between £5,000 question of future world demand, and £100,000. Where the valun- and this depends on the question tion is less than £5,000, death
enth whether or not there is an duties 7.30
N.. Pt. Wharf 0.15 0.20 1000 6.20 Dock
B00 $ 19.00 1800 18.00
7.30
New Delhi, Apr. Chintaman Deshmukh, Tinly, who have both been badly though the present plan for LAND, ETC.
400
Provident 1.10 11.50 Wheelock
715 7.63 2000
1500
2.00 7.40
5000 L
200 7.45
1000 4 7.49
43
50 100 ## 5511 1.00 1000 1
It
HK Hotel
this
the Finance Minister, sald here hit
by
British the
did import convertibility not exist, today that under
policy prevailing restrictions were threatening to points out that British po
Pod, in the event conditions in India "neither retaliate by cutting their own should.
of even a Cominunism, Socialism nor any Imports from this country, slight American recession, do other such system will work." Nevertheless, Beftain's decision
Its dallor-earning power He was replying to a two- to reliberalise part or everything in its power to main
Lain day debate in the House of the trade with O.EE.C. countries is this would have to be done even People (Lower House
not without significance. of no
Until
at the expense of some un- Paritument) budget de- quite recently British officials emp
ducing consumer
goods and at relations certain with countries. For Britain would have to resist their demand for British capital equipment and other potential dollar-earning have goods.
mands for grants fur his were still Insisting that the employment in Industries pro-
time had not yet come to lift the risk of embominoniealth
studled
import restrictions. The ques- wi different economic systems at work in tion is what caused them various parts of the world, he change their mind? thought that given certain con-
ESCAPE CLAUSE
nore
#
HK Land S'hai Land..
Tram
Peak Tram
(New)
Um.. 13.10
Star Ferry
C. Light (0)
can probably be paid out American trade depression nexi of the proceeds
of insurance year, and if so, how serious it policles or other
resources out-{will be, side the business. Beyond the 744
upper limit a
is large company enough to raise capital in the market if it so desires.
. 21.00 22.30 1500 or 22.10 100 6 22.10
10 102
10 10.10 700
3500
10.20 1500 10.20 10.10 309 10 12010
C. Light (N) 0.50 0.00 2000 M 6.00 1000 0.00 Electric .. 21.10 23.10 239
Telephone
INDUSTRIALS
strument STORES, ETC.
500 23.10 603.10 100 23.20 $150 6 13 100 110
2500 + 20.10
500 15.20 20.60 20.10 3430 6 10.70 Watson ... 21.90 22.16200 of 12 L. Crawford COTTONS
Ewo
2.30
000 23
THE REAL PROBLEMİ To show the real nature of the problem, two examples only need be quoted. If the valuation is £90,000, death duties come to £8,000, if it is £00.000, then £17,500 has to be paid.
Life psurance cannot help much here. If the owner of the business in the hope that it will cover carries a life polley of £17,500.
his death duties, then the total value of his eslate is raised to £07,600, and £27,000, or an
tra £0,500, extra
Is payable lh death duties.
of
It will be scen that with amounts
this magnitude involved, even. £1 million will go quite a long way. It might évén meet the needs of 50 or 216 1400 6 2.49 do businesses. By that time ex-
600 @ 245
·
2000 or 2,35 3000 2.35
than one system i Even more signißeant is the could be rude to work, he said, fact that British omeinis
Sir Chintaman
Deshmukh also modified their ideas con- sald one had to discover whether cerning the renewal of the Other steps suggested by "The under certain conditions ity a Europorn Payments Union Economis!" to counteract the country
could choose ajagreement. A short lime ago,
effects of an American recession particular farm or
Britain rather un-
Dalry was insisting on the are in order of priority and orthodox form of
uisertion of an "escope clause" desirability" tighter import of economy. Ile said Communist members in the agreement giving her the restrictions, but against dollar seemed to be "somewhat starry Union on three months' notice. and
right to withdraw from
20.50 the imports only; price stabilisation eyed" and did not realise that he has now been changed to/LAJAI
stockpiling schemes for Communist economy required
materials; MISCELLANEOUS to Sterling Area raw extraordinary ruthless leader-request-granted by other and dipreciation of Sterling.
Hongkew ship and preparedness by the members of EP.U-for a for- It is cleur, then, that the
Really population to tolerate hardships mula to be written into the effects of an American recession which would never be tolerated may withdraw from the Union would in any case be extremely agreement whereby a member on the Stering Area's econoiny Democratic systemat
only after ample notice Hida bech
But the danger would grave. given and other members have
be greater still
it Sterling was had the opportunity of discuss convert
convertible into dollars when It.
the crisis struck.
The Hkellhood is that it the agreed lo an extension of the
recession
came towards the end E.P.U. system for a further of 1854 or some time in 1955
months from June 30
Common-ves the
severe
In
any Reuter.
Chicago Grain The fact that Britain
Futures
has
t-is-regarded-as--a-clear-In-Sterling would in fact be con
N.Y.Foreign Exchange
England-flickil
unolicial
30-day futures 90-day futures Australia (pound) Now Zealand (pound) South Africa pound)
vertible, for though the Com Canada (dollar) dication that Chiengo, Apt. 7.
on-monwealth plan may proceed at wealth plan received a
more leisurely pace than was Chicago grain and the leading setback in Washington. Euro- Birst intended there is commodities
were zenerally
Sternt first convertible
nothing higher.
Union to suggest that it will be aban wreck the Soybeans took the leadcan fears that conve en the ovence. Wheat elesed have apparently carried more done
ling would
doned altogether. In that event, teslay to higher und soy-weight in the United States the drain on
the Sterling Area's Leans were 15% to 2% higher than the lofly aspirations of the gold and dollar reserves would Prices closed today as follows:- Commonwealth Prinic Mini-be all the greater and might even lead to a second-and more Wheat-price per bushel
into There may, however, be an- permanent-retreat other reason why the original rency restriction.
STERLING RISK Commonwealth plan, which al-
Though this does not neces-
most certainly
tera.
Spot
May
July
September
December
2.274-72 2291 2.34-2.33-
Corn
Spot
niny
July
September
December
Ryc
Miny
July
-1.5333
1.507-76 1.03%-2
1.57
1.0415-34 1.68-1.67-24
0118
May
71-71-28
July
New York four-per 200 lb. Sock. $1320 numainal.-United Press.
envisaged an
Clasing Rate
April 7. US$1.01-10/10 2.8121
2.44 bid/ 2.07 caked 2013 2.011
resources
and
For thest reilabris. Rhodesian copper shares should be ap- proached by the investor with a slight alr bf exqp. I have little doubt as to the ultimate
FREIGHT SERVICE
„Dudkirk—is Abt.
•Keelung-28 Apr. „Keelung~~23 Ma Keelung-29 June
Hongkong
21 MKY Hoarkode
30 Apr. 30 May
1 July
Fur Japan
For
+
+ Saljon, Marseilles, Alglère, Oran, Tanklórs, Casablancs, Le Havre, Antwerp, Rotterdam & Dunkirk CIE DES MESSAGERIES MARITIMES P.O. Box 53, Hongkong Queen's Building (Gr. Floor)
Tel. 26661 (8 lines).
MAERSK LINE
FAST FORTNIGHTLY SERVICE TO:
NEW YORK, BOSTON, BALTIMUSE & PHILADELPHIA vin SAN FRANCISCO. LOS ANGELES AND PANAMA.
NEXT SAILINGS
m.v.
"LEXA MÁEESR"
m.v.
"PETER MAERSK"
May
m.v.
"JEPPESEN MARRBK"
ARRIVALS FROM U.S.A,
m.v. in.v. m.v. "QÜÈTE MAERSK"
"LEISE MAЕДBк"
Apr.
"JEPPESEN MAERSK"
outcome of the industry, and 1 For Freight and Further Particulars please apply to:-
of
certainly, do not advise the sale
couper shaths
ffy anyone who holds them. On the other hand, this may not be quite the right moment to Buy them.
NY. STOCKS STILL ON DECLINE
New York. Aptli T. would have been The New York stock market
after over the institution's advanced today could be enlarged.
Coming carly heavy selling The keynote of the new pressure. Institution's operations
will be
The market has been under Rexibility. In the case of a severe selling pressure since sound, sold business, it may be the start of last week as a te-
content to take un
up debentures, sult મ Communist peace however, the management Is gestures around the world,,
in need of reorganisation, the Wall Street fents the trekt institution may prefer to take on business of any change in up ordinary shares with consequent powers. It their the defence spending pattern
want re-
must
be that might grow out of the international situatión... emphasised. however, that the Present
Yesterday's market suffered institution has no intention of
ention of its hardest fall flee the week taking part in the day-to-day
started in management of such companies the Korean wir
June of 1950, Today It will no it helps, nor
the at presentation
opening the on their
boards, but resistance to the
Felling
continued. declino On the other hand, if it thinks that the wrong people are in was tiedlately apparent,
first hour of trading charge, it will take steps to see that they are replaced by the the rigin people.
timplanted resistance
With
and
d. Railroads led the
list higher with gains ranging
In conclusi i, the upper limit from dractions to $2 a share while
of £100,000, mentioned above, is losses were from fractions to a
by no means sacrosanct. Some dollar a share.
2252.
2.82
Belgium (franel
.019915
cur-
Denmark (krone) France (franc) West German
Deutschemark
1455
.0028
22305
Holland guilder)
$15
Italy-official
.0016
Norway re
.1405
Portugal (escudo)
.0350
Spain (posels)
0260
Sweden (krone)
.1035
Switzerland-free
034
MIDDLE EAST
03/29
ald
B is necessary.
ANGLO-AMERICAN
аге at the
early advance towards conver-sarily mean that Sterling should libfity, has now been modified remain forever Inconvertible, it into a vague hope. of glving does underline the risk of freedom to the Tound at come attempting оп experiment of Indennite future date.
nature unul much more this One of the conditions on adequate reserves which the plan depends is a Sterling Area's disposal. It may continuation of the present explain, too, why, official en- high level of industrial activity thusiasm for the Commonwealth and therefore in demand for plan shows definite signs of Sterling imports in America. woning. There can be no definite assur- ance, however, that this condition will be fulfilled.
Indeed, the "pause" in
London Rubber possibility of
Futures
London, Apr. 7.
The rubber market was quiet.
Prices closed today
lows:-
Number rubber. In pence
per lb.
June
May
July/September
October/December
Januars/March (1954)
American economie growth some Ume in 1954 or 105 is now being widely discussed,
PRESENT FEARS
Present fears that next year
#s fol-or the year after might see n
recession-slight or otherwise-
1920
NY Sugar Futures
New York, Apr. 7.
in America are based on the World sugar futures clood to- 1914-20 known facts about the United day 1 to 4 points higher with
States defence programme. Ac-sales totalling 307, contracts. cording to "The Economist", Contract No. 6 closed today
devotos week
2 to 4 points higher with sales
1912-20 1014-20
10
United Press.
NEW YORK RUBBER FUTURES
New York, Apr. 7.
Dealers reparted a lack
Number 1 Standard
May
July
September
December
March (1954)
22 Att
2330
23.10
23.03
of
which this
special survey to the subject, totalling 56 contracts. American defence expenditures
follows:
Fayl poluid) Iran (rial) Iraq (diner) Turkey flies) LATIN AMERICA Argentine-oficls1
Brazi! (cruzeiro) Bolivia boliviano) Chile-free Columbia (pcsol Cuba (pepo). Mexico (poda) Ferre
Uruguay (peso)
Venezuela [bouvor)
FAR EAST
Indin trupee)
Paklatan rupee)
Hongkong
Indonesia
Sinilipore
Japan
$115
3043
0000
360 yen 10 US$1.
-United Press.
LONDON TIN MARKET
DED-3145
sensión os follows:-
3.20 bid
3.21
Spot in, buyer
Spot tin, selier
863 67D
3.29 bla
Business doɑne på ..................
3.30 bld
Three-months tin, seller
Three-months tin, buyer
010-865 DEO
043
3.29 noinital
Business done at Bettlement
; DGS.
Contract I
3.11
No.
5.85 nominat
July September November March Spoi
8.01
Cliniied Prem
large companies may not wish
million
Two
six hundred to raise capital on the market. thousand shares were trades. even although they dre in a
Some petroleum, stoels and position to do. so. In such craiferafts joined the advance, tho new institution may be At Chicago willing
closed to join with its own higher, May, wheat, shareholders in providing such a Bushel: ay naize 150.5.
Collon futures clored eleven hundredths of a cent per pound
g375 cents
The 1952 profts of Anglo-higher to one Hundredth lower. American at £3,015,000, com- pared with £2,091,000 for the previous year, are satisfactory. În judging
July October Spot.... them, it must be remembered that 1952 was too easy a year gold-mining shares, Also American has substantial funds
for mark
invested in its Orange Free State
which mines,
have not yet where they reached the point can declare and pay dividends. dividend Anglo-American's own divid
is
Unchangch as could be ex- !
at 00 per cent.
This is a
AGENTS:
JEBSEN & CO.
Pedder Building.
Tel. Nos. 36066-9
Chinese Freight Booking Office
27, Connaught Road, C.
Tel. 20401
Bates and rotation subject to change wiiliout notice.
At liberly to proceed via olbér pória to load/discharge catgo.
EVERETT
LINES
EVERETT ORIENT · LINE
Fast regular freight-refrigerator-passenger service to Korca, Japan, Philippines, Indo- China, Siam, Mulayn, Räfigidă, "Calcutta and Chittagong.
"LENEVERETT”
In Port Loading Sails
Apr.
# for
Ron
"BRADEVERETT”
Arrives Salls
Singapore,
&
Penang, ¿Calcutts.
Apr. 22 froni Manila, Apr. 23, for Singapore,
Rangoori &
"REBEVERETT"
Arrives Sallo
Apr. 28 from Strigapore. --
for Yokohama. Apr, 24 (Accepting care, for transhipment) Kobe/Fuzan And Kobe/Okinawa)
Penang, Calcutta,
1
EVERETT STAR LINEA Fast regular freight-refrigerator-passenger service to Korea, Japan, Philippines, Indo- China, Slam, Malaya, Colombo, Bombay, Karachi and Persian Gulf Porta.
33.28
33.34
33.38
33.80
Asociated Press.
Arrives Balls
New York Cotton
Future's
New York, Apr. 7. Prices of cotton futures closed pected; when it is remembered today as follows!-- that the company must always y Spot retain ample funds in hand.
July
32.00
33.27-33.26
33.4 33.38
33,50
3163 nominal 2373 bid
NEW ORLEANS MARKET Spat
World futures firmed with the
The drop from. 25,749,168 to October. are scheduled to rise to a peak higher trend in the raw market.
London, Apr. 7., in the last quarter of the pre Domestic
£2,787,427 in the total profits of December futures were qulet sent year, then level off for and without a particular feature. 80 tons including 20 tons for longs to the Ah-American July
The tia market turnover was Rhodesia Broken Hill, which be- Match
May consumer Interest in the spot ing gradually in Inte 1954.
quarters and start fall- Peveral
Prices closed today
as cash. Prices closed today at the group, is not surprising, 1951 WAS market, although No. 1 standard
end of the official morning an abnormally idd var for this sinoked ribbed sheets
Unless other forms of spending were
Contract No. 4 (world)
and de 1952 barlige Eothpatiy marked down lo 23 cents a rise to take its place, this de- May
of £2,787,427 are reasonably May pound, nominal. Prices closed cline in American defence ex-met September
good when compared with the July today as follows:-
penditure might be sufficient to October
Octobek., of £3,250,000. Desember ordinary capital cause a situation similar to that January
The dividend is cut from 30 to March March which occurred in 1940, Then, Stay
40 will be remembered, the mere
cent, and at the, latter May Spel
July the charas yield 154 per fact that America's gross na“ tional product stopped rising stay
This fall in pronts is obviously was enough to cause crisis in the Sterling Area culminating in the devaluation of the pound.
Fears that something of
this cort might happen again when the American defence, piru gramme begins to tall off are only partly offset by hopes that N.Y. Oil Quotations economy will be taken up by the slack in the American
Dilliness was done in the, local And by New York, Apr. 7: other forms of expenditure. Linomis!
„market, thi Copra was gubled today at While American spending, by morning at the following rates: Number 2 rubber, May $205. per; Miert to naked, cit, businisios, find private In-Sterling, siele (par £1)
U.4. dollar (per $1),** 12 0.014 this Piele codst. Cócounut (oll | dividuals
well as by the indonesian guilders (per 100) 10
May Number Handard
July
September December March (1054)
May
21.50 bid 21.80 nominal
21:45 nomina!
21.30
--
21.15
M
21,00
21.00
21.00
---United Press.
way quoted at 104 cents a Government, is not expected to pound United Press,
5.07
1.09 bid
8.51 nominal
United Press-
1
Singapore Rubber connected with leat year's de-
Futurės
Singapore, Apt.
rubber Prices of
Exchange Rates closed today na follow
exchange
Batients (per 100) Bingapore (Biralts)
fall this yemand should, ini Diksires. (DAS, 200)
48.10
| Number 1 rubber; þër 16,
Number rubber, y Number * rubber, May Spot rubber, unbåled Blanket ereja No. 1 pale crepà
23.70
路
33,46 bid
bld
33.30
-United -Prozs,
-Seeds And OÕlis
New York, Apt. 7 Prices in the seeds and ols Into market, here closed today un
operation, and loves the changed with the following ex
dithes, in the prices of lead and zine, but there afd some bigms that these prices have now Be- come more stable. Meanwhile i rihw
lead plant
Improves undertaking's prospect
COFFER PRICE FALL...
ceptions-
Now that 11 socis likely that York. 284 cents:
Peanut oll, per ib. fobs Now
tile London copper, miarkat will Castor off, per lb. tob, how reopen, a fall la, the price of York, $160.
61-15% copper would not be surprising.
23.75.
-Uolled Press.
· Flax seed, - per bushel, fob, This, however, would not be Minneapolis, $9.854 United entirely unwelcome: to the Press,
Apr. 9 trom Japan. Apr. 10
for Singapore, Port Swet- tenhain, Madras, Colombo, Bombay, Karachi, Khor- ramshahr, Basrah & Bahrein,
"STAR BETELGEUSE”
Arrives Sails
Apr. 15 from Singpabre,
Apr. 10 for Robe & Yokohama, (Accepting cargo for, transhipment) Kobe/Pulan and Köbe/OkibaWN)
EVERETT STEAMSHIP CORPORATION S/A Queen's Building, fätöphälä 31206. Chinese Department: Telephone 28293.
BUSINESS
REGULATION
ORDINANCE 1952
Copies of the prescribed Forms 1(a) 1 (b) and l'(c);
Now O
Sale at S. C. M. Post, Ltd. HONGKONG ¤ AND KOWLOON
TEN CENTS EACH