THE CHINA "MAIL, WEDNESDAY, APRIL 29, 1953.
The United States Economy:
How Far Does It Depend On Arms?
London's New Market
Wool Top Futures Trading
London, Apr. 28.
ment?
To what extent is the American economy dependent on rearma- Mr Malenkov thinks that the prosperity of "Wall Street" is clearly the result of American préparations for war, and his view is shared by many Left wing Socialists in all parts of the world.
But an analysis rather like Mr Malenkov's has appeared in the adent wool trade history United States itself from a source flot usually suspect even to Senator
A new departure in the
of, Britain will be made to niotrow when a wool top futures market is opened in London.
market i This new futuren different from anything tradi- tionally associated with Woo! Emde practice in Beltain though certain other cominodi
sick have had attendant futures markets for years.
McCarthy.
with 22 por members, 30 home¡ sized defence programme to keep and June, 1952: and at the present dawce of $22.000 milions.
about $25.000 millions' worth of Government centruets,
rate.
added
Shares Fall HONGKONG MESSAGERIES
In 'London
London, Apr. 28. Trading was dull today ba, the Lordón Block Ex- change with an overall ten- dency for a slight drop in most shares.
The Indifférence Wat marked it förälen infest-
too, with Böth Japanese and German bonds falling off somewhat.
The Financial Times' daily Index of London stocks was 120.1 up 0.1. Asociated Press,
NY COTTON FUTURES STEADY
New York, Apr. 28. Coiton futures today on trade and local buy
were steady ing. Gains wero held in cock by profi-taking and some hedging.
I C. C. F. Bickford, a nominee $10,000 or sure. The conclusion the experience of one of pt 1 Ag to "Business Week."{ market rise last week had in
of the London Produce Clearing † was tha "rens is essentially big and
House;
The new
market has new offices in Mincing Lane, the hire of the commodity trading markets in the City of London near the Tower of Londoil.
THE RULES
muist
which
suid
20
SHARE MARKET
(From Our Correspondent)
Stock Business done on the Exchange this morning amount- ed to $877,554. Noon quotations and the mornings transections:-- SHANES BUYERS SELLENS SALES
BANKS
IK Bank... 1450 1500 INSURANCES
Union
SHIPPING
Aria Nav DOCKS, ETC.
K. Whart
200 801 100 2 800 50 193
1.10
70 71
590
16.90
N. Pt. Wharf 0.18 8:00 020 Dock
1815
Provident**** 11.10 1140
Shal Dock .. 210 Wheelock.....116
LAND, ETC.
500 2.10
HK Hotel 730 7.40 1009 0 740 146 Land (C) 39; Ba 503 ÁP BU
B'hal Lend .. 140 145
Humphreys .. 74.40
UTILITIES
Tram .....21207.30 800 17.
10
1000 23
500 + $2.25E
Peak Tram
(Old)
38
Peak Tram
(New)
18
Star Ferry
110
C. Light (0) 10:50 10.40 2300 - 10,40 2000 or 10.40 C, Light (N). 6.65 0.70 £550 ** 0.70 Electrio
....3802 ZIDO Telephone.. 18.20 18.40 300
Outwarda
M
·Page 9
MARITIMES
M
PASSENGERS/FREIGHT SERVICE
Leaves Marseilles
"LA MARSEILLAIST❞ 12 Apr.
Homeĺdzi
Hongkong "LA MARSEILLAISE” 22-23 May
flengkang 10-11 May
For fofobima
TIN
is Jan. Batzon
"Bug Mateliion
via Marseilles to all Mediterranean & · West Africa ports, via Djibouti to Madagascar.
Outwards "MONKAY"
Homewatag **MEINAM*** "PEI-NO"
"MONKAY"
FREIGHT SERVICE
LEAYES Vakirk- Apr.
Leaves
Hongkong
4-5 June
For Украц
Keelung-29 Apr. Keelunt–3! May
ifongkong 1 May
For
•
2 June
› Koeling–29 June
1 pty
↑ Saigon, Mataefilés, Álglers, Oran, Tangiers, Casablanca,
Lo Hávfé, Antwerp, Rotterdam & Dunkirk
CIE DES MESSAGERIES MARITIMES
PO. Box 63, Hongkong
Queen's Building (Gr. Floor)
Tel. 26651 (8 lines).
MAERSK LINE
FAST FORTNIGHTLY SERVICE TO:
NEW YORK, BOSTON, BALTIMORE & PIULADELPHIA via BAN FRANCISCO, LOS ANGELES AND PANAMA.
23.00
18.40
400 * 10.50
81
18.30
INDUSTRIALS
Cement
Пере STORES, ETC.
Dairy
*** 15.20 15.40 1800
1536
184
300 100
..... 10.90
10 1000
0500
300
21.30
500 x
NEXT SAILINGS
2.48
*.*. "PETEN MAKNBK"
May
m.v. "JEPPESEN MAERSK”
May
... 4.13
m.v. "ĻAUNA MÁENSK"
Juns
Calling Vancouver
ARRIVALS FROM U.S.A.
m.v. "ORETE MÅERSK“
B.V. "LAURA MAERSK”
May
May
1. V.
"KIRSTEN Marisk”
May 10
kwo
Уапаткае
The Rubber
It was not merely the Progressive party candidate. Mr Vincent Hallinan, but General Eisenhower
who before the election, noted that current as well, prosperity owed much to the rearmament programme.
September 6, 1952, the work in 1953 would amount to in civilian consumption or non- On
"Business maguzine
Week," 20 per cent.
military investment. under the heading
During 1052 "Business
business Five of the ten most important Outlook," said that United States, defence contractors are aircraft approximately $26.500 millions Industrial capacity "is getting so companies which received a total worth of now plans and equip large that it now inkes a con- of almost $7,500 millions worthment without scrapping much of sumer-poly bom plus a king of contracts between June, 1950, the old plant, and the 1953 outlay The London market will open.
is expected to reach the record everyone busy."
time the entire Industry holds associated and 38 oversus asso-
More recently, the conservative
made it possible to sutisty con-
The Increase in capacity has The market was less activo clate merachs, the latter in-
"U.S. News and World Report."
than in recent sessions, par- cludi hmy
Australia,
sumer demand as well as de- ticularly because the distribution of
the situation Canada, New Zealand, South Surveying
Since the war in Koren began fence needs, it's not likely that May contracts. There were 28 that
was relatively quiet in nearby Atrien, the Channel Islands, the defence contracts, found
between
June, 1950, and Jung, the industry has not published As a result, Vilter Suites, France, 105, the hundred most important detailed accounts, but evidence consumer
demand
can be ex- May transferable notices issued Belgium, Palestine and Japan. 1052,
at New is panded aumleiently to absorb a
York today. There Other associate membership ap-contracting corporations received available suggests that it
ou change from defence to consumer was
somc further switching plications are under considers- $43,800 millions' worth of major almost entirely dependent
goods production; indeed, there from May to later months, defence contracts, or 62.4 per cent defence contracts.
Total sales in 1932 contracts worth
were be LA tome doubt that consumer with May holding firm. The Chairman of the market of all major
tween $0,000 and $7,000 millions, demand can long continue at ils
Private advices said
Watson the ።. business...
the largest alrem!! Imanu- But qualifications
all automobiles duced several producers to sell befacturers is any guide most of the 44 per cent Df
COTTONE their cotton rather than place Government in use are three years old or were on mude to any statement suggesting sales
less, compared with 28 per cent it In the loan
MISCELLANEOUS as previously that America's economie welfare clearted Aircraft Corpora- In 1949; 60 per cent of all, re- contemplated.
tho depends on
detence pro-
tinn,
hodels gearme.
fifth placefrigerators are post-war models.
A private crop survey most Im- Moreover, output of automo-replanting of cotton in varying Although $181.000 millions has among the hundred Mr Arnold Shepherd, Chair been appropriated for the entire portant contractors, in 1952 trans-biles, television sets, and home degrees will be necessary in the
at the moment Southeast where there was programine since the nettd 86 per cent of its business appliances is mon of the Management Com-defence
an in-running ahead of demand. inlttee of the new market, said war in Korea began, only $87,000 with the Government,
heavy frest tast week. at inaugural reception Inst millions had been spent by crease of 2 per cent over 1051.
STRONG POSSIBILITY Defence the February, 1933, right that the rules of
work was probably
Colton futurcs developed an market had been
of total framed in
ax high a percentage
Much of consumer demand in irregular pattern In late trading. business for the other "that there
major the last few years
Trude buying and short covering should be no interference with
aircraft producers.
old crop pushed up financed by borrowing.
months. normal trading conditions und
Instalment debt has increased while proft inking met
absence of support in new crop 30 per cent since Korea, and, The dependence of the aircraft according to a recent estimate, months which dropped into new industry on defence contracts is, consumer credit now represents low ground for the day. the United States.
course, unique, but the defence 10 per cent of disposable income. Except in total war Americans business
number. of in
Di All the signs, In short, suggest higher to 50 cents lower than
that
B serious reccesiun is a are generally unwilling to trade industries is still impressive. butter for
In the steel industry in 1952 strong possibility unless, in the the previous close. guns. Shnilarly, the
few years, there is business com-defence work amounted to 15 per next
a May tremendous expansion over ) July munity, which claims that profit cent of the total business. margins on defence
Last year the Government took res work are
resent levels of defence spending | October traders that "when the futures lower than on ordinary kinds of belween 50 and 85 per cent of or
non-defence Government December market has been running a business, is naturally reluctant the output of most machine tool expenditure and Point Four; in a
*** March (1036) while latent tears in certain
May to cut down the more profitable manufacturers, and between 10 word, the choice seems to be July quirters will be dispelled."
and 20
total between a Warfare Slate and a October per cent of the No wont traders in London production lines at a time when and
of the largest business
Mkidling spot farm Welfare State. Today were prepare to forecast consumer demand is high.
For all these reasons, the de- machinery
Moscow, of course, will in- price level on which the arket w open tomorrow.
ence programme has been de- Government contract.
fluence the decision, but in the But the general feeling was liberately stretched out over a
But perhaps the most signi- final analysis, assunting Soviet those on the non-aggression, the choice will
New Orleans, Apr. 28. that it would not be surprising lunger period and in consequence ficant figures are if September quotations are there has been relatively little relationship between the defence be made in Washington.
Colton futures closed $1.10 a protective in view of the dim- | interference with business-as- | programme and full employment,
A New Deal
under Re-bale higher to 25 cents lower. Culty which
attend usual,
Administration is not May mlidst
At the end of 1952 private publican physical delivery if enlied for. Until now defence production and public employment, includ- out of the question, but neither Jy
United Press,
has been carried out largely ing the armed services, totalled is
steadily Д armaments expenditure. because of increased output, not approximately 68,000,000.
According through a reduction in civilian
to Government
There are, after all, more dood middling consumption and non-military Agures, 7,000,000 workers were Republicans In Congress
who Investiment,
directly or
or indirectly involved in want to extend the Korean War the defence
programme and then there are Republicans In 3,000,000 persons were in the Congress who want another New armed services. In other words, Deal. about
10,600,000 employed one cut of
w
I
manner
DELIBERATE POLICY
The much smaller Bgure re- Aerts both the estinute made by
the futures market should rua Government planners of actunt entirely parallel with the pre-defence needs at
ent market.
"Concerning
standardisation,
the tops which may be tender- ed are of sußleient divergence to make the market not a very favourable one from the de- livery point of view."
Ho assured
wout
British
EASINESS IN GRAIN
FUTURES
the moment
and the feeling of public opinion
in
A VITAL INFLUENCE of the other hand, the $87,000 millicas already spent 305
of
UNIQUE CASE
concerns Was
stimulated business activity, and persons, or almost
six employed,
it is even possible to argue that i
every involved directly
on
has been
on
Futures closed 20 cents a bale
23.05
33.71-74
$3,43-47
23.40
INLAN
33.49-50
33.34
22.70
34.30 nam., up 5 -Ascociated Press.
NEW ORLEANS MARKET
increasing dietsber
December March (1954)
were New York Sugar
Futures
or indirectly
the present level of defence ex-in the defence offor.
element penditure is the decisive
in current prosperity.
An
Chicago, Apr. 28. | easier tone
Moreover, enough money has
CRUCIAL QUESTION
6.OS
New York, Apr. 28. Domestic sugar futures No. which dealready been appropriated-and
The crucial question, of course, closed 1 lower to 1 higher. veloped frst in corn spread to there is more coming to keep is: What would the one out of Tuly other scefiong of the grain defence plants operating at their every six be doing if he was nut September
0.01 market before the close on the present rates of production for employed on defence work? November
5.97 biji 5.50 naked Beard of Trade today.
another two and a half years. If, for example, "peace broke March
World sugar futures No, 4 closed Corn dripped on i fall off There Can be little do
doubt, out" would he and employment 2-3 lower. in demand for the cash grain therefore, that at prese
else or would he July at present defence in
3.43 bid September
3.44 bid Raw sugar spot can be no certain answer and this will remain to this, and it is
is well to keep in forecasts of mass This emerges clearly from an unemployment after World War examination of
of defence contracts 11 proved incorrect.
and fears government offerings is a vital influence in preventing be off-grade corn soon would la recession In the American
so for some time to come.
of
ve
tract rullered
increase! The Muy colleconomy.
must, losing
13early 2 cents at one time.
Wheat developed early strength on export sales of both to West wheat to
hard and red wheat
Germany, and red
however, wheat gave
in a
mind that
a number of key industries. On the other hand, the Cold begin with, of the hundred War is not World War II all over
Το
most
won
Yugoslavia. Toward the close,
up its corporations, pine are var manu- were important during and after carly gains in sympathy with facturers; and of the ten most the war are not present today,
important contractors, which tu
tu and, indeed, the contrasts be- tween the two economic situations ether hold more than millions' worth of major
are both striking and sobering. defence contracts, or 28.7 per cent of the
NO LARGE- INFLUX
Important contracting again. Economic factors which
divelines in other, cereals,
Whent clored
- lower;
corn 4-1 lower; oals 54-
lower; tye 14-14 lower; soy
beans -14 lower.
Whent;
May
September
July
December
Miceli
Soybeans:
May
July September November
January
Corn
May
Qats:
May
Rye:
May
$2.201 $2.31-1 3225 $2.501% $2,34
total, three are car
35 nominal
-Asociated Prem
30.04
Markets
Singapore, Apr. 28.
Prices of rubber futures closed today as follows:- Number 1 rubber, per lb.
MAY
June
July
Number 2 rubber, May Number 3 rubber, May Number 4 rubber, May Spot rubber, undslea Blanket crepa
No. 1 pale crepe .......
-United Press. LONDON MARKET
London, Apr. 28. The rubber market was quiet, Prices, closed as follows:-. Number 1 rubber, in pence
per l.
June
July/September
October/December
January/Marchi
United Prose.
NEW YORK MARKET
New York, Apr. 28, Crude rubber No. 1 futures closed 5 lower to 35 higlier,
33.71-72
23.46 บ.ด
May
37.30
33.57 bid
July
September
Associated Press.
December
14.05 21.80 21.67 34.35-40
*3.85
LONDON TIN
MARKET
Londori, Apr. 28.-
The tin market was finih today. Turcover was 140 tons, including 6 | five tons. for cash. Prices closed at the end of the official morning session as follows-
Spot tin, buyer
Boot tin, sellers
953 740
Buances done at Three-mantlin tin, buyers.. 72711 Three-months tin, sellers.. Buinews done at
730-725 Settlement
439 United Press.
Strong Rally In
Wall
New York, Apr. 28.
Street
drive. Stools were down most about a
Crude rubber Na, 3 futures closed 10 higher. -May-
*kg 22.30 nominai Spot No. 1 ribbed.moked sheel
nomina).--Associated Prem.
CAR OUTPUT
Detroit, Apr, 28. US, ear production this week will total 179,268 units, Ward's automotive reports said.
Counting 148,377 cara God 30,881 trucks in the total, the arthey said output will mark the best volume attained in 20 months. Last week the factories built 123,380 cars and. 20,853 trucis, in the comparable 1932 week they built 97,828 cars and 27,004 trucks.
Ward's noted that this week will bring the iridurtry its two- millionth ear of 1953, — Asso- cinted Press,
Loan Rate Up
New York, Apr. 28, Most commercial banks in New York City rated their "prine" loan sue this week to 3% per cent from 3 per cent, effective uperamediately. This is the highest millum interest charge in the banking system since 1931.
com-
quarter after reporting Arst The stock market rallied inconte equal to $0.11 a share companies.
strongly today and closed higher da against 36.73 last year.
well The
Southern Railway was Ford Motor Company, which In the first place, the present after overcoming early losses. ranke third among the automobile labour force does not contain
good earnings ré- Steels, motors and railroads ahead on a contractors,
docs not.
point after was fortunately, publish its accounts. any substantial number of "ex- were in the forefront of the port. Sears Roeblick was
pendables." | But some Information based on
In recent years, according to of the day and camo to life late. disclosed that the company had
The action sent US govem- company reports is available for the Department of Commerce. A leader was Jones and Laughlin postponed Issuance of rights to
ment bond prices down as much $30-seven of the automobus concerns. there has not been a large influx with a gdin of 14 at 23%, 1,000,000 shares of new
as Galf a point in over the into the elvillan labour force of registered after it raised its mower stocks included Re-saunter trading. Commercial BIG BACKLOGS
dividend,. adolescents, housewives, or
banks are the principal investors The market started higher, public Steel, Goodrich, Inter- The Agures sliggest that in the persons past the usual retirement ung lower, and then started fintional Telephone, Sinclair Oil; in treasury securilles. It they $1.57-motor industry in 1952 defence nge,
Nor, since the war in Korea Its recovery movembrit late in United Air Lines, and Allied are able obtain 34 per cent business made up a substantial
Chemical. the day. 74%-proportion of the whole and that began, has there been any im-
Gallis and lock displayed a Higher were Willys-Overland, Ing operations the banks would it fallkely to remain important portant extension
'rediln⋅ from pitrchasing secur- Lockheed, Radio $1.51-004 for several years.
worked in any
large section of pred of less than 2 points Goodyear,
ities at lesser, profit stelde --- cither way with the great bulk Corp, and Pennsylvania Rail-
Associated Press. In no case among the seven industry.
of the changes in fractions. road 14 companics was it less than Both elements were present off
On the American Stock Ex- Business was not rushing by
$3.025%
$2.74% $2,37
.--Associated Press.
of
hours
-
Cotton Goods per cent of the total business in a large scale during World War any medhs and cine to an call- change, Amurex O. Develop-
Trading
Steels hugged the
1052; in four companiea it was 11 and therefore, ways the do-muted 1,250,000 shares for the merit gultied a small fraction a little more or less than a third, partment, "full" employment in day, That compared with 1,400,- with a moderate amount of and in one company almost two- the immediate post-war
whs consistent with a cod 000 vhdrės traded yesterdays. terday with
trading. It was a feature yes- thirds of total business.
a rain of 211⁄2 at.) New York, Apr, 28.
The percentages General
for Activity in the cotton goods
abic reduction from war-time market rackened today, with Motors and Chrysler, 19 per cent peaks in the total of military and Jones & Laughlin Held steady he 17% after billing d maximum it reported first quarter carnings ghin of 0 points right at the employment and in buyers showing some resistance and 14 per cent respectively in civilian
trend In higher prices asked by mills. 1952, are less impressive but it working hours a situation which against. 20 of year de higher
a extent
tent of RA The popular 60 square
that General present to print is worth noting
The quarterly
prevailed on the Americon stock almost doubled and today only d
Steel. was withheld Auger cloth continued to sell at 21 cents Motors
after. exchange with trading quiet, Chrysler more than quadrupled Secondly, the Cold War, unlike the market close yard on pos
were Adam Hof, Le Wool,
Studebaker weighed down the Toumeau, Royalite Oil, and The their defence work between 1951 the Second World War, has not gopis Adalilde
Bus were slow.
Built up any substantial reserve motor section with a fall of Bterling Engine Lower were wool" - market
Wos and 1952.
Moreover, at the end of 1952 of savings, either among in-between 1 and 3 points after Credit foleum nd Fan- strangfcording to, private
Dow all of the companies Apstralian vàbles,
dividuals or in business, nor is reporting a Orsi, quarter; nel colifial Perollin, had
Jones demand loss of nearly $1,000,000,000 closing averagts. The movement of rayon gray substantial backlogs of Govern there much backlog of
for either consumer or expilal galost a not prouts of almost Industrial 16 War Wimited. According to ment orders,
A General Motom, ometh re-goods. reports, in the market, ong lead-
o producilan has largely Dotenco
Seaboard ing producer of rayon staple will cenly estimated that even will drop prices. three centa a pound a 20 per cent increase in total come out of increased output, batween 8 and 4 points and Stocks on Mey Associated Press, business over 1952 G.Ma' dofence rather than out of a reduction then recovered most of the loss
$5,000,0000frono tufen vrai
Intored through their own loon-
Exchange Rates
thi
Buziner was done"`in the local unofficial" exchange market
„dollar (per #1) Sterling hotë (per £) Indonesiar gulders. (per 1007 Slam (icals (per 100). Sangracie 1)
FIC partzes (per 100)
Copra Quotation
New York Apr 28. Copra was quoted. today, ŝt perifert,fon united $203 109.19 C.1.1.
Pacife coast
50.64 | Cocoanut oll was quoldd. dt 15 $100.01
centain pound, nominal. United Press.
Anociated. Prega,
For Freight and Further Particulars please apply to:-
AGENTS:
JEBSEN & CO.
Pedder Building,
Tel. Nos. 36066-9
Chinese Freight Booking Office
27, Connaught Road, C.
4
Tel. 20461
Daler and rolstion, subject to change without notice.
At liberty to proceed via other ports to load/disebaris enrgo.
EVERETT
LINES
EVERETT ORIENT LINE Fast regular freight-refrigerator-passenger service to Korea, Japan, Philippines, Indo- China, Slam, Malaya, Rangoon, Calenitá and Chittagong,
"NOREVERETT"
-Arrives
Salls
May 12 from Singapore,"
May 13 for Kobe & Yokohama.
"REBEVERETT"
Arrivés Sails
}
May 22 from Manila. May 23 for
Pehang,
Singapore, Rangoon & Calcutta,
(Accepting cargo for transhipment Hobe/Puran and Kobe/Okinawa) -
EVERETT STAR LINE
Fast regular freight-refrigerator-passenger service to Korea, Japan, Philippines, Indo- China, Slam, Malaya, Colombo, Bombay, Karachi and Persian Gulf Ports. "STAR BETELGEUSE”
Arrives
Solls
Apr. 30 from Singapore.
for May 1
Moji, Kobe, Osaka, Nagoya & Yokohaina.
"STAR ARCTURUS“
Arrives Salla
May 4 from Japan. May
for Singapore, Fort Swet- tenth.cm, Penang. Madras, Colombo, Bombay, Karachi, Khorramshahr, Basrah & Bahréin.
(Accepting cargo for transhipment Kobe/Puran and Kóbé/Okinawá) ·
EVERETT STEAMSHIP CORPORATION S/A Queen's Building, Telephone 31206. Chinete Department: Telaphané 28203.
BUSINESS REGULATION
ORDINANCE 1952
Copies of the prescribed Forms 1(a) 1(b) and 1 (c))
Now On Sale
On Sale at S. C. M. Post, Ltd. HONGRONG AND KOWLOON
TEN CENTS EACH