THE CHINA MAIL, FRIDAY, MAY 16, 1953,
Trying Conditions In
The
Post-War Years
Effort To For Banking
Regain Textile
Markets
Indian
the
Few sectors of the world's industrial and commercial machinery have experienced such try- ing conditions in the post-war period as banking. The distortion of money values in the suc- cessive inflationary phases has entailed an equiva- lent distortion of banking structures-in hard and soft currency country alike.
one of the
Trade Talks In Tokyo
Negotiations With India, Indonesia
Tokyo, May 14. The Ministry of International
a new trrde
Trade and Industry is preparing for negotiations with India for agreement which, the Ministry belleves, will step up trade with that country. as far as textiles and concern but-there is still room
om for the
India is competing with
export of steel products to India.
Ministry is
Is discussing the The following basis for negotiations:
Bombay, May 14.
so long as cheap trols may be changed over Moreover, textile milla are
were the night without warning. For, making a determined effort to mury programmes
the Chancellor of the Ex- 1. The exchange of goods regula the
markets oue, the growth in balancen export
worth £25,000,000 each. his whileh they have been losing sheet tetals was necompanied by chequer pointed out in
2. Japan would export in Budget statement. steadily to Japan
srresponding contraction during the
the tal value of bank carn- great virtues of monetary policy machinery, sices and iron pro- past two years.
duels, chemicals, textiles and lugs, since yield did not rises its flexibility. Immediately after the war.
other equipment, and import textiles with sumclent speed In relation Indian
exports of
In other words it may be true iron ore, out outgoings to compensate the
cooking, coal. sodred because Japan was
bunks fer the impact on their that the banking industry In
biluminous coal, seran iron and of the market. But with the re-
in-net Incomes of the persistent most parts of the world-ls now.raw-cotton.- habilitation of Japanese
operating in a more congeniul 3. Japan would extend tu priced fall in the value of money. textiles dustry, Indlan
And even when It became climate than at any time since India technical assistance for themselves out of the market.
fashionable for governments the end of the war. But it in harbour construction and for the also true that the individual development of the coltage high cost of Indian textiles and few years ago to turn to deareranker can proât by
morey for a solution for the provement only if he brings on
this in-industry.-France-Proge. uneconomic working mills
economic troubles, the benent 10: obsolete equipment.
Le benks derived in income
apmopriately skilful approach Somani,
his
Financial Recently, Mr G. D.
the rise in frun
investment to
work. The President outgoing
of the Bom
shows how Survey yields was often untweighed by Times bay Mill Owners Association,
the world bankers throughout the serious capital losses on warned that mills would have
Ozed intercal securities that are responding to the challenge. 16 rehabilitate and estimated that
would take almost er interest rates also brought -The Financial Times.. it
In their wake. $2,000,000 to accomplish.
During the past fortnight, Bombay mills have announced of rehabilita- that: a programme tion is under way.
The main troubles are
que
is
Mr A. D. Shroff, who recent- ly visited Japan and who Chuteman of Svadeshi Mills Ltd, announced that his
has already received and in- stailed about 200 automalle looms out of 500 that the mill han ordered.
in-
The company hopes to atal the remaining 300 by tie
ent of this year.
Mr Shroff suid that although come unemployment could be expected because of more
in efficiency.
the long run cloth дла cheaper economic production would lead
more
to mare business and more em- ployment.
Tala Mills Limited also Co- nounced that a programme is tinder way in their mills. Mr N. H. Tata, Chairman of the mills, reported that a large portion of
hus new machinery been received from the United Kingdom, and that 28
The
TURN FOR BETTER
is
main impression that emerges from an examination of The Financial Times Survey of the world banking scene that, at long last, the fortunes of the banking industry recently taken a decided for the better not only in Britain but, with a few notable exceptions, in most other coun- tries as well.
have turn
To begin with, the past year or two has seen a much closer stability approach to economic in the majority of countries than in any previous phase of the post-war period.
And the distortion of banking structures due to changes in the value of money has consequent- ly been on u much smaller
scale.
MALAYAN
RUBBER
INQUIRY
AL
Manchester, May 14. The news that
special committee is to investigate the competitive
the position of
Industry was Malayan rubber welemed by today's Manches- 'I-ter Guardian,
Industry rublier the competition of feeling American synthette rutber and probably also that of Indonesian
the paper sald, producers,
The most urgent need is for
The
ylelding trees.
is
In the second place, the genreplanting to replace old low- Cral earnings experience has been favourable. In some coun- tries there hus, it is true, been
of the already seme relaxation
sures taken at about the
the outbreak of war in cards of
mta- time
have already boen-installed. Karea to make money scarcer
by making it more expensive, The Company expects to com- pletely renovate its old spinning department which consisted mostly of worn-out machinery.- United Fresa.
Japanese Aims In South Asia
גון
REASONABLE HOPE
But interest rates are almost
cause
the
150
"A large proportion of the estate-owning companies going ahead with replanting, but the peasant owners of small per holdings, who make up 40 cent of the industry, lag far behind, lacking either foresight
financial reserves or both. "Much could be
be done to im- prove the competitive
peciilon by helping them to organise marketing
co-operatives central processing stations," the
от
and
INDONESIA MISSION
BRITAIN GETS
BULK OF US. GOLD OUTFLOW
In April, contrary to previous indications, Britain's share of the U.S. outflow of reserves greatly improved. Unless the US. official figures understate their outflow, Britain got the great bulk of it.
According to the U.S. official figures, there have been no further U.S. losses of gold since March 25. If this is correct (and not merely another case of the U.S. authorities being belated in reporting losses of gold) the reason must be that Britain has refrained from converting dollars into gold.
Ehe'did acquire $107 million in } April, which she could have
converted into gold if she had HONGKONG
chosen.
Over a perlod, Britain routinely converts any substantial accumulations of dollars into gold, since her policy for many years has been to hold only a working balance of dollars..
SHARE MARKET
(From Our Correspondent)
But the size of this working balance fluctuales considerably, as Britain's conversions of dollars finlo gold are not instantaneous.
Business done on the Stock Since October, the build-up of Exchange this morning amounted
has been buth A five-man Indonesian Tradedallar reseTVCS
to. $108,211.50.-Noon quotations Mission to expected in Tokys gratifying and consistent, exceptand the morning's transactions:- only in December when it was
Tokyo, May 14,
Lo
around June 30 'to negotiato ja now Indonesia Japan trado distorted by the end-year debt AHARES BUYERS SELLERS BALES agreement, the Ministry of In-payments and in March when ternational Trade and Industry the rate W09
the BANKS reduced by ayment (believed unnounced today,
have been about $50 million) for the dollar tobacco auctions last Autumn. INSURANCES Beltain bought outright only about a half of her annual supply and took an option on the other half until she had more dollars to pay for it, as happened in
The current trade agreement pegotiated in Djakarta Just June expires on June 30 next.
the Although trade, under present agreement, Waa rela tively brisk, Ministry sources said, Japan favours expanding the trade volume in the new ugreement.
At present Japan exports 55,000,000 United States dollars' warth of goods to Indonesia, and imports 40,000,000 dollars worth.
March.
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The Ministry now plates the export to Indonesia of 90,000,000 dollars worth of
P. Tram (N) 50,000,000 importing goods, dollars' worth.
The Ministry favours in three ways balancing trade separately or simultaneously:
"SWITCH TRADE"
thre
P
that
the U.S. Less encouragingly, outflow of reserves fell from $57 million in the week ended April contem-22 to less than $4 million in the week ended April 20, the lowest weekly figure of this year except for one March week which Had an inflow. This may be only a temporary week-to-week fluctua- tlon.
Whitehall thinks
the doubling of Britain's EPU surplus between March and April was also only a fluctuation, the dif- ference between the two months being very small compared with the total turnover between the entire sterling arca and the entire EPU arça.
Much of the April EPU surplus
countries.
Holland, including must have been a carving-up of
Germany's, Britain's and France's very serious deficit. Holland's EPU surpluses in April for exceeded France's defleit, big
1. Receiving
40,000,000 dollars difference in sterling or dollar cash.
2. Exporting "machinery and to Indonesia plant equipment on a five-year instalment basis. 3. Conducting "wlich trade" through Indonesia.
how-
The Ministry sources, ever, believed Indonesia would Elrongly oppose increasing im
Japan in view of parts from indonesia's deteriorating foreign
position.
of Britain and some other
Manchester Guardian suggested. exchoberent trade agreement though that was.
everywhere still well above the levels that obtained in earlier postwar years. Yet
be there has, in most stanets, been no substantial up- If the investigating com. were movement in rates during
mittee can do a thorough job of the past year or so, there have fact Onding, it should provide been no large losses on capital the round work for obiective account to set against the gains planning on an agreed basis in on the current account side.
the future."Reuter There is a reasonable hope that the Improvement.
will be maintained.
New Exchange Regulations
Paris, May 14.
The necessity to avold a re- petition of the inflationary movements of the earlier post- moveme wir years is now everywhere Jcknowledged. With some evidence of a greater willingness The French foreign ex- to match words with deeds, change control authorities have there is a good prospect that the announcti ntw Instructiong world economy will be kept on a regarding the financial relations relatively even keel.
between the franc area and the D-mark area,
Tokyo, May 14. Forelga Minister Kaiblo Okazaki sald today Japan dtd not want to force any economic development plan on the South-ki cast Asian countries.
a prepared
statement he In a cald: "Many things have been said recently in the press about developments
Southeast
This means thet banks in most Asia. Our aim is very simple,
Under the new regulations; we only
only want quick economie countries should be able to count
theast upon being spared a repetition transfer Into the D-mark area rehabilitation of the Southeast
only of the severe structural stresses can be made either by purchase Asian countries, because only that
were being imposed
of D-marks on 01
c11 tho official then, can we have a chance to
thehem by fluctuations in our and buy
the money market in Paris necesary materials from thos: value of money up to a short sale of French franes on one of
time ago.
the money markets operating in Signs that lofallon might be | Westcin
Transfers Germany. the D-mack area to the intention to force uny economic giving place to mild deßation from
recently checked
the trane area can be made either plazi of our own on these coun→
advance In the level of world by buying French francs on a tries.
interest rates and, ce
Western German money market, already noted, even produced a reverse by selling D-marks on the offlelal market in Paris or by debiting a movement in roine countries.
German foreign account in the Forward dealing Mr Okazal further said:
both on the Paris er'a German But in Britain and most other exchange market will also "Japan is quite ready to give
to war re- countries there are indications authorised.--Reuter. consideration further
that the attainment of the re- paration questions as well,
equilibrium between "We are open to any request quired from Southeast Asian countries capital outlays and the flow of
savings will
require,
countries.
it is
however far from our
to
explore "We shall try whether there are any fields in which we can contribute to our own economie programmes."
on reparations.
have
NEED FOR VIGILANCE Franc-area.
was negotiated for Japan by a Offico official, sentor Foreign
Katsumi Osse, and for Indonesia by Dr P. A, Asmaun,
Mr
1
BELGIUM A DEBTOR Belgium appears to have been a deblor.
Anancial Belgium's
P. Tram (0) 38
10
C. Light (0) 10.20 10,40 850 0 10.26
C. Light (N) 015 6.70
Electing
Telephone
INDUSTRIALS
Cement
Bupe
STORES, ETC.
Dairy
23.00
13.40
10 13.09
18.00
...... 10.00 15.70 3000 ₫ 10.00 14.30 121.30 700 Ĝ 21.00
37.00 Crawford)
Watson
COTTONS
4000 @ 23 Ewo Texille Corp. 4.55 8.05/2200 g) 5 Entertainment 18-70
2004 15.00
Protection Wanted For Industry
head of the Foreign Trade Re-position is vastly stronger than lations Directorate of the France's, but her currency and Economic Affairs Ministry. -- trading position seem to have
Tokyo, May 14. Reuter.
beer weakened
The Japan Midget Car In- by various
asked factors including bigh production dustry Association has and living costs, proximity to the Government to prohibit the of impeat of foreign motorcycles, France, waning or reversal of
Grain Prices
In Chicago
Chicago, May 14. Prices of grain futures closed today as follows:-
Wheat-price per bushel
2.17 nominal 2.151-2.181 2.15
May
or by
Spot
July
September
1.191
December
2.2491-3
March
2.2871
Coin
Spot
Klay
March
July September December
Ryc
1.043% 1.5876-5 1.0014-
May
155 bla
July
Qata
be
May July
753%
7333-56
-Noybeans
Spot
2.03 nominat
Kay
2,033.00
July
120-2.0014
Heptember
$.27
2.434
for many Board Of Trade
Issues Denial
"That means we are ready to years to come, a level of money rates well in excess of that negotiate on request." Reuter.
Rubber Futures
A.
In S'pore
Singapore, May 14.
Prices of rubber futures closed today, ns, follows:- Number 1:rubber, per ib.
Juno
7012-16 July
7014-32 August Number 3 rubber, June 2 Number 4 rubber, June 021-03
0014-701 Spot rubber, unbaled
01-03 Maskat erepe
77-12 United Press.
Singapore, May 14,
No pale crepe .....
maintained in the initial post- war period-if not quite as high
during the ruling
past So at least part
that
yeur or
November
January
مره
New York ficur-per 200” (b. excl $12.00 nominal.—United I'res.
New York Sugar Futures
the boom in high-cost steel
eel including scooters, to protect (Belgium's steel industry is Japanese small
car manufac-
prone to violent fluctuations be- turere, Jiji Press reported to- tween prosperity and depression), day,
for and neglect of basic investment
Jij quoted a spokesman in the post-war period.
the Association as saying that Over the whole period since the
production of domestic last Summer, Britain has re- motorcycles and scooters has in- which she crossed to greatly that there is gained the reserves lost in the carly months of little need for "Japan to buy Total reserves are thus such vehicles from foreign nearly back to the end-1051 countries.
1952.
Ievel.
products
The spokesman claimed that
that But she has still to regain the tests
the have proved much larger losses that she Japanese
arc on suffered in the second half of quality par with foreign makes. 1051.
The spoken
Japan produced during the 1952-53 fiscal year, a total of $3,500 motorcycio units.
said
On the official figures, the reserves have been rebullt from the low point of $1,082 million in April 1952 to their present total He added that the production of $2.273 million, which itself
of 199,875 units is planned for would have been too low to sup the current fiscal year, which at sterling; he mid will port convertibility
mean that Japan and though the outlook for will become the fourth largest further additions to the reserves maker of motorcycles in the
there are world this year, is still encouraging. some obscurities-Reuter.
Cotton Prices
In New York
New York, May 14. Price of cotton futures closed today as follows:- i
Spot May July October December Barcla May July October of 73
Contrast No. 4 (worlqy
London, May 14, for two.
Board of Trade quarters today of the recent expansion In bank denied as
completely without carnings should prove to be foundation reports from Lisbon more than temporary.
Qiat the British Government was It would be wrong, however, considering u general trade with to concludo from this that the Red China in which tungsten
New York, May 14. would be involved. changes in the world economiche tungsten ore market in
World No. 4 Ruger today closed have, had such bene- Aceno that
2 to 4 points higher with sales and at 360 contracts. Domestic No. 70-761ficial effects on the banking in London has been quiet
dustry over the past year or two with business confined to small points higher with sales
steady during" "the past wecka sugur closed unchanged to 3 have be without
вселя
their worry Number 3 rubber, June 04- ing
parcels. Fears that the Vietminh aspects. On the contrary, na many of have not affected the tungsten rebels might Invade Thailand the contributors to The Financial market and tungsten mining Times Survey point out, the new fashions in economie policycles have shown no concem especially the more active use over a possible threat to tungsten Thailand, United The part of Pennng stands to of monetary controls have sources in lost about Str.$5,000,000 per month if the reported Indone nion ban on All imports from And while exercising a carefulĮ Hongkong.
Singapore and watch on bls day-to-day trans- actions to ensure that he does Penang materialises
That potential loss figure was not inadvertently run up against eited by A. Stoneham, the restored monetary controls, The Philippine Chamber of July T'unong's economic officer.
the British banker of today Commerce is sending a seven- September My Stoneham said although and the same applies to bankers man delegation to the first Con- November the 'Buh was said to have;come | in' 'most other countries must | Kress) of Latin American May Interforca: last Saturday, he had keep constantly. In mind the Economic Co-opers Ión" to be not received official confirma possibility that the weight and held in Madrid, Spain, from tion United Press.
direction of the. omclat-icon-May 25 to June 10-teuter.
forced bankers to develop à much more vigilant attitude.
Press
contracts.
July Beptember October January March May July September October
Contract. No.
Madrid Conference | Sp
Manila, May 14.
Mate Dir
July September Bpot
3.71 nominal
5.73 bld.
2.73.
3.00 hid
3.03.
3.03 nomina? 3.53 nornina? 3.43 nominal
4.91 14
637 nominal
Spot
34.30 13.02-33.03 33.80-33.79
33.80
37.23
United Prem.
NEW ORLEANS MARKET
$3.40 33101-33.95
$3.75 bi
July
October December March
July
October
United PreER.
JAPANESE BONDS
London, May 14.
Tee of ta
8.18 nominal
United Press.
"“ (0%, al. 2014)
921 2015m. of 1350)
Consals. #1=United· PreAS
8.30
The association pointed out too that when Japan's holdings of foreign currencies are declin- ing "alarmingly,** the import of foreign make motorcycles should be
stopped-United
Press.
LONDON TIN MARKET
London, May 14. The tin market was firm to- 110 tons, Iday. Turnover" was
for Including 10 tons
cash. Prices closed at the end of the official morning session as fol
Jowa
Boot Un, bayers
Spot tin, sellers
Business done at
78744
74734 | Three-months buyers 743)
Three-months tin, sellers Burine dane at Settlement
7571
United Press,
Exchange Rates
Business › was done is undificial exchange market morning at the following rates: 81.9. dollar (ber 813 20
Sterling vote (per £1) Indoneson guilders (per löáj
cal bla
901 Stan tesis (per 100)
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VIC piores (per 100) ..
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