་་
THE CHINA MAIL, TUESDAY, JUNE 9, 1953.
Boom Conditions In U.S. May Be Tested In Coming Months
(BY SYDNEY S. GAMPELL, REUTER'S FINANCIAL EDITORI
Wall Street's break on May 27 and the extended easiness of U.S. bonds illustrate present complexities. Wall Street's technical action remains fairly good but volume enlarges slightly on declines and the recent strength of the tax-sheltered and prosperous rails reversed rather ominously.
U.S. business remains strongly supported by defence spending and by absence of speculation, including the extreme caution in forward buying
This is still the hoom which kept going because its continuance was но heartily distrusted that people refrained from naticipating it, but many people are nervously watching its pulse,
NEW DELHI
The boom may well be strong production of cars is curtailed enough to surmount any test, by strikes In plants of parts but it probably faces same test suppliers. Had this not occurred. in coming months. Bethlehem it might have had to be cut Steel's chairman is typical in later by some weakening of saying that he looks for good denund.
Inventories tire ut record
PLAN FOR operations throughout this year
OWN MOTOR
cent.
INDUSTRY
in
on automobile
and is not looking for a serious heights in absolute Lotal. depression. But some correc Relative to record sales, they tion." for short of a serious de-jare not abnormally high.
That persion, might still be a serious means that they are sound so test for markets.
long as sales remain at boom Curtailments in such Les os levels. If sales fell, inventories Cars, carpets and tractors are would 50011 look top-heavy. argely neoidental
or seasonal Their outlook is still that they but cannot be wholly ignored. are unlikely to generate a zel
Curtailment in tractors was back themselves, -but- likely to to avoid borrowing give trouble if a setback were designed 1954
business by over-generated by some other factor.
dealers this stocking
The U.S. Department of Com- Dealors were becoming over-merce, which almost
holds stocked because of some decline brief for the boom, nevertheless "any significant in current demand for tractors, concedes that
demand would soon even though farm incomes have change in fallen only from a boom level to make inventories look out of line, since there la usually a ing a prosperity level.
Some though not all observers in their adjustment to the new think that recent high activity in sales
major some
lines, Including
is still worried construction and autos, has been about the imperfections of the
year,
W **
borrowing future business, money market and the expansion
in
The Indian Government has announced a plan for manu- facturing and assembling motor vehicles in India, designed to cut their prices in India 20
by per cent in the next few months.
plan is Intended to encourage notor transport India by a reduction of pricus and to pave the way for a willy Indian-made cur, Infport duties component parts, which have formerly averaged 03 per cent, hayd been reduced
to 40 per
Five assembling
the auto industry of consumer credit. The Federal firms have Labour both chosen to continue
inakes that alleation, and takes Reserve Bank of New York has facturing programmes, and 1050 I seriously enough to advocate gone into this in great detall. has been set is the dendline by some slowing of present produc- which time at least 50 per cent tion so as to avert the danger of component pania used by of mass unemployment thom must be made in India. Unis your
Seven other
THE ARGUMENT Bras hitherto engaged in assembling have been Management in the auto in given a three-year deadline by dustry denies the allegation and which they must cease assembly the forecast. Yet its argument
NOT TOO CLEVER The seasonal expansion in the altogether and either close down is more than that it must
was still or turn to other work, such as produce ns many cars as the second half of 1952 the manufacture of component public wants to buy. If the larger and the seasonal contrac-
the for
main public, buys fewer cars later in tion in the first half of 1953 has parts
Ave automobile-manufacturing Gems, the year, fewer will have to be so far been still smaller-because The five Arms chosen to continue produced. Prices of some cars of "bank loans to finance, directly. manufacture are:
have been cut even during the or indirectly, consumer purchases
prodiil boom demand. At the moment on
manu-
, Hindustan Motors, associated with Nuffields and Studebaker. They will manufacture o light and a medium
truck.
a big car,
Premier Automobiles, Lid.. 2 associated with Dodge, who will
manufacture
medium truck.
A
big car and
3 Automoblie Products of India, Ltd., associated with the Rootes
mante Group,
later
The Rubber
Markets
The reasonal expansion in business loans in the second half of 1951 was unusually large, and the seasonal contraction in the first half of 1952 was unusually small, because of direct and in- direct defence work.
Much
of the expansion in business loans, it subs in, "has represented, directly or indirectly, consumer credit. Some expansion of consumer debt is no doubt necessary to market the mounting volume of goods turned out by the nation's greatly enlarged in- dustrial capacity, but the ques- on persists as to whether the rate of increase is con- present sistent with the maintenance of 00-071 stability and balanced growth in
production and employment."
Singapore, June 8, Prices of rubber futures closed and who will loday as follows:- manufacture a light car and Number rubber,
per Ib. July truck. modium
August. Motor Products of September
with the Number 2 rubber,
July
July Number 4 rubbeṛ:
Jul
Ai
"stanciated
andard Motor Company, who tomber 3 rubber,
will tr
manufacture a medium car.
5.. Asholt Motors, Ltd.
Seven firms who will have to spot, rubber, unbaled stop assembly work in three neket crepe years are Dowars of Calculin. No. 1 pale crepe the French Motor Company of
Bombay, General Motors,
0416-31
013-
6015-01
73-10 -United Press. LONDON MARKET
London, June 8. The rubber market was steady today. Prices closed
Mahindra and Mahindra, Addison and Company, Ford Motors, and the Peninsular Motor Company ows- Dewars and Mahindra and No, rubber,
will be Mahindra, however,
allowed to continue assembly of Land Rovers and, n jeep, which are not to be manufactured in India at present.
pence per Ib. 2014-%
-United Press. NEW YORK MARKET
New York, June B.
hos
the U.S.
Treasury's present policy-makers seems to be that one should not be two clever about consumer Gasy. •
credit. On the face of it, they the unprecedented expansion of consumer credit in the past year
enlarged current yea spending where the pace slows, it will give less support to spending: as fol- as and when to re-payments fall due, they will subtract some in- come from future spending,
Nobody in the U.S. Treasury or Federal Reserve wants to do anything more than to correct No. 1 rubber futures closed to inflationery tenderieles, mas to
maintain prosperous stability. There will be no change in day unchanged to 25 points lower But a "correction" in consumer duties completely assembled with soles of 40 contracts. No. 3 a Imported cars. The Government's clused numinally 6 paints lower spending might mean a sizable new policy was announced at a with co salts reported. Rubber correction in auto and steel, with presa conference by the Minister in futures and the spot rather widespread repercussions
cautiously on the U.S. economy.-Reuter. proceeded for Commerce and Industry.
pending the Korean
develop ments.
Spol
I smoked sheets were indicated at 242
cents A pound. Prices closed today as follows:-
No. 1 standard July Seutember December March
Market Lost
To Japan?
market
Tokyo, June 8, Approximately 60 per cent c1 May Japany's rayon market may be July lost since India is reported to have decided to buy all the rayon July goods she needs from Italy, September December France, and Britain in the first Marrk half of this fiscal year, informed May July sources, sald today.
According to a report from the Japanese Consulate-Gonoral-in Bombay to the Ferelguv Omer, the Rayon Association of Bombay hasingreed to sign an overnil contract for rayen purchase with Italy's Vizzora: France's Comptoir and Baboin's Courtauld's.
This will mean that the Indian mheitet, which has connared some 60 per cent of the Japanese MYONKVERPArla, has been lost
Japan United Press.
to
24.03 bid
24.00
++
23.00
No. 3 standard
ibbed New York Sugar
Futures
New York, June 8. World sugar No. 4 closed to day unchanged to 3 points higher with sales of 201 con- tracts. Domestic, No. 6 closel
Trade Trend INCREASED SHIP MESSAGERIES
-
Warning To Britain
London.. Jaha 8,
The London Times ex- pressed some concern to- day when commenting on tho fail in British exporta and the riso iri German exporta.
"It is reasonable to argue that as Germany recovers # contrast of this sort is to be expected --- that Ger many is merely resuming her former place in export markols, though not in precisely the sanie markets, because the East-West di- clianged The vision pattern of trade." this in- dependent paper sald.
"Naltiral it may be; it is ni-ilik-säine Unie a warning to this country,
"So long
as the present contrast of trenda' persists, Hi must, cause /ktavo con- cern," the Times conclad- ed.--Reuter.
HONGKONG
SHARE MARKET
(From Our Correspondent)
Business done on the Stock Exchange this morning; amounted to $547,547.30. Noon quotations and the morning's transactions:-
SHARES BUYERS SELLERS SALE: BANKS
JK Bark
... 1320 Enst Asia.... INSURANCESTM
Canton
OPERATING AND BUILDING COSTS
In the course of an admirable maiden speech fröm the chair at the annual meeting in London of the Union-Castle Mail Steamship Co., Ltd., Sir George P. Christopher referred to "the difficulties encompassing commerce at the present time." \.
These, he said, "are such as to preclude any reference back to past records for guidance, the problems of these disjointed days being in many respects without precedent.
World Rice
Crop Sets
"The effects of the strange circumstances gripping the world in, to commercial and political spheres alike are beginning to make themselves telt" and one result has been that in the case of the Union-Casils Line itsell "the operating results of the past your were less satisfactory than those of the previous year," though, it
it might be added, they were reasonably good taking all circumstances into account.
"Since the parent company of
and one
of its Croup
King and reported that the world 1932-
the
A Record
Washington, Junie B. The Agriculture Department
subsidiaries, marily concern- 1933, rice, crop amounted to a
Co., Ltd., are
ed with Commonwealth trading, record 854,100,000 polinds up five it was inevitable that their per cent
froin tho previous operating results would beyour's output. affected by the imposition of severe import restrictions last world production in 1952-33 is "In terms of milled rice.
yeni.
On the other hand, another estimated at 124,000,000 short subsidiary, the King Line, Ltd.,tons compared with 120,000,000* which now owns 11 good-class ons in 1948-49 and 118,000,000
In 1951-52", the Depart tramp ships, beneated from tona
publication which ment
"Foreign Crops and Markets" sald.,
The report said that the principal reason for the record favourable weather
45. 1540
140
243
talan XD
720
778
UK Fire XD 139
Waterboat
15
in
1.30
DOCKS, ETC.
2015
SHIPPING
Asla Nav
K. Whart Dock Provident
The active demand obtained for trump fonnage, and contributed substantially to the group accounts.
FORMIDABLE FIGURE Top was
generally. Yet there was
une direction
It said the latest crop in- which all shipping com- panies were affeciel fast year creases were registered in Asin where the total outturn exclud- to one degree or another, viz, 20.40
the overall increase in operating China, was 202,000,000,000 11111.00 5450 11,00
rough rlee. India, ing costs, so much so that the pounds of 2.03 2.20
4.19 1000 or 7.85
and Burma Union-Castle 73.
Company's total Japan, Pakistan 1500 7.80
expenses increased by
register:d the principal increase. HK Hotel 7.83 7.85 1000 A 7.85 054,000 compared with 1951-al The principal Asian export- UK Land
formidable increase which felling nations, Burma, Thailand ... 815 82 12562 mpareya .. 1411⁄2
short of overall Increased UTILITIES
ensed and Indo-China together, pro- of £1,801,000 com-duced an estimated 40,000,000,000 Team
earbitigs pared with the previous year. pounds. The increase in Burma
The
100 was being offset by a lower output affected building cosig which, Sir
SJ Dock Wheelock
LAND, ETC.
23.10 23.40 2500 or 23.30.
Peak Train
(0) XD
37%
Peak Trai
IN) XD ... 18,70. Star Ferry
$10
119 120
6300 11.30
compcreased ship-in Thalland.
خودا
In other areas, "Foreign Crops George observed, "have reach- and Morkets" gave this report ed fantastic levels, cul-strip-
On the 10b2-1903 tive crop; the bounds of contem Europe Production Increased rice growing countries This-hax Induced the board except Portugal. Total 1032 3,700,000,000.
130025&stion." 1
C. Light (0) 11,30 111⁄2
C. Light (N) 7.30
337.19 500 720 Elcetsle .... 23.30 700 6 25.40 ..10.30 1015 300 10.40 Telephone
2000 15 INDUSTRIALS
Cement 17,10 300 0 17
300 17.20 2015 20.70 2050
500 23.60 1000 20.30 3150 6 20,00 300 20.70 1000 20.60
Rope STORES. ETC
Dairy
23.20 23.00
24.75
Watson 1. Crawford
XD COTTONS' Ewo XD
2.C Texule Corp. 520 5.30 MISCELLANEOUS
Yangtze
0.10
come
INJ
2018
1500 G 51%
Cotton Trading
Stagnant
of the
a range
in nit
to the conclusion that, for the production time being, "there must be no pounts of rough, rice compared a further building with 3,300,000,000 pounds of the cmbarking on a programma beyond the two cargo preceding year. ships presently
con Under struction," because it would be difficult to meet the necessary depreciation, let alone provide a profit thereafter on mall and intermediate passenger ships ordered at current prices.
INEVITABLE TIME
Western Hemisphere-rice pro- fuction, was up to an estimated 15,700,000,000 pounds in 1952-53.
The United States registered the largest grain production but other countries in Centred and Nouthern South America showed gains. Dry weather in Northern- Baz held that country's crop 1051-52
That the price of an Inter-down to about the mediate ship has risen 15 pergures. cent. in the past year, and that
Afri-good weather retulied·
of a mallner by at least 100 in an increased outtum over 1951 cent. since 1948 provides to 1953 producto-United Press,
per
some indication of the replace
ment problems with which liner: companies have been confronted, and no one should question the wisdom of Ule Union - Coste
Company's decision to place mn. to depreciation and
reserve.
corpanies cannot post-
pone the replacement of tonnage indenhitely,
Grain Prices
Petroleum
Products
Consumption
In the US, demand in the
first quarter of 1053 was about
New York, June 8. Cotton trading today dwindled while dealers awaited the out-
Korean truce There comes A time when negotiations, Responding to ships have to be replaced, re
London, June 8. small orders either way, menn-gardless of cost, and for this
Mr Eugene Holman, president while, the list see-sawed with contingency it is imperative that in a
of $1 bale but suitable provision should be of the Standard Oil Cb. (Now that world managed to keep even with the made, Liverpool Jolma of Jersey), has stated
Commerce.
consumption previous close most of the day,
of petroleum At the close, the list ruled 1
producis - excluding Russia continues to rise. the opening de- higher to 6 points lower com- pared with
When heavy clings of 6 to 9 points,
selling anticipation of a Korean truce falled to develop some of the
"decided bears
to However, cover.
the small advances kept runting into Prices of grain futures closed, Uiqulilation and hedge selung o Conversely, a broadening milf..Wheat-price per bushel demand was apparent on the spol setbacks.
Stediners in securities and September
outside
murricets also March sentiment. Another ex- May
week-end
2253 nomi al with sales of 838 contracts.
1 point higher to. 1 point lowered viewpoint was that the
In Chicago
Chleage, June 8.
today as follows:-
July
December
five
same
cent higher than the per
perlod in 1952. While no quantitative data is yet available
Grst
quarter consumption Mr. Holman said indica-
on
abroad,
are that the rate of gain higher than in Was somewhat the US. According to Jersey Standard estimates overall de- mand
during 1053 excluding In tho Rusald--will be about
of six per edat above 1952 Kand.
demand.
view of existing ample supplies and reserve capacity Me more Holman expected even strenuous competition in the ol Industry than at present. This does not mean that some upward doca price najustments might not occur, he pointed out "but this Increased competition will call for renewed Efforts to maintain and Improve our volume of 229 nominal business and our profit margins 28334-37
in this highly regressive and competitive Industry,Reuter,
other
IL
United Press.
3.74 bkl
5.70
3.10 nominal
申生
May
World futures ruled steady on proximity of the colton market Spat July trodo buying and short covering to the minimum loan calé for
September with buying interest evident. In new crop would oftract invest- December the raw market a few points theat buying into the new crop March under the 75 cent level, fö.h. mouths on recensions. Evening up
Tiya Domestle futures held aeddy in July before the first notice
-July' 24---Was another in mixed tracing. A fading day-June
September feature was the posting of 300 feature. The July open position Dats
July contracts in early July futures at the start was around 750,000.
The against business in actual sugar, baios,
certificated och September
Soybeans amounted to 210,838 bales, Prices closed as follows
Prices closed today da follows: Boot July Spet
August July
September October Dicember March
-Corn
2.0312 12.0396-7% 2.07£ 2138-14 2.173416 2.194
1.01%
1851.50-
1.4815
November
January
March
33.04 nominal
33.13
-United PriĀ,
Interest Rates Increased In
South Africa Contract No. 4 (world)
مولهاي
Interest rates in the Union of September South Africa were raised from October
January (1054) June 3.
Morch The
on May rates of discount Treasury Bills are: 12 months July
Beptember currency 2 per cent a year Spot
per cent); six (previously 2 months currency. 2 per cent (11⁄2 July per cent); three months currentScember 1 per cent (there is not at Maren (1994) present
issue of threa May
Flax Seed Price Spray New York, June, 5. Prices in the seeds and olls markét closed unchanged with the following exception:
Flax, Seed, per bushel, f.o.b. months Treasury Bills). Minneapolis $3.67%-United The rates of Interest on louna
ned advances to some state
Preskphouder
dguns
Copra Quotation
nided
any
projects, including huustik, universities and sell
Spot
Contract No.
bid
nominat
-United”: Presk
JAPANESE BONDS.
London, June d. conservation, are being raised Japanese, bonds Now York, Juno 0, from 4 per cent to 0.4% per BAG(is) of 1090) Copra was quoted today at cent $203 per alert, top. cit. tha
This Is coroldered to be an Facida coust.Coconut oil was Indication that money for livest quated at 14 cents a pound,ment in gilt-edged securities naked,--United Press.
is dimeult to obtain.-Router,
July Delober
21.61-93.63
34,10 nominal
33,76-33.70
13,82-33,83
39.87
33. bid
NEW ORLEANS MARKET
FOOL July
October December Sarolt hay. July
October
23.15 nominat
.00 bld
2.83 7.74-2.75
New York flour-per 200 lb, sock #1320 nominal--United Prem.
DESIRE LOANS.
Oslo, June U.
The Norwegian Government
Pepper Market
Turns Easy
New York, June 8.
has take the Stortbig (Parlia- The pepper market had an meht) io, permit the Ministry enter
.
underlönd "today
awaited the Korean of Finance to borrow up to 300, traders million crowns in long term developments and became of the... lower price bonds and up, to 600 million aware dev
offerings. crowns in short term Treasury Lampong Exchange Rates fonds during and coming Anand Spot peppers was
Indicated at 1 Around #133 clal yang die
pound: Malabar These altid will be used, to- Orst Half June shipment: Won gother with 350 million erowns offered at $1.87) 42 pound. from the Treasury, to finallen Straight Juno Imropong wOB. the State's leading programme, offered at $1.34-$1.85 a potund, especially for housing and in-tall on an ex-dock, bazis. dustrial Investment, Router. United, Pross
Hinds was, dórie, in- (156 'lofal unofilcial exchange to market, this moming, at the following - moios); 11,9, "dollar" (pge=943_ Sterling, nota për 211221
811⁄2
(4 of 1910). #C: (55., of 1907) "D" (5%, of 1924).. PE (14% of 1930)
12
08.
136
United Press.
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Indonesian guilders (per, 100), 29.10
fijam:ticals. (pes.100)
Butápore (Ktralts).
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M
Untwarde
MARITIMES
Tel: 28651.
M
PASSENGERS/FREIGHT SERVICE
Leaves Maryfillen.
“FELIX ROUSSEL” $ June
Homewardź.
HOUSSEL..20-25 July
Hongkong. 10-11 July
tiae Marsellas
adanlia
23 Abgurt Yokohama
vin Marsallies to all Mediterranean; & West Atrien porta. via Djibbúfi. to Madagaskar.
Outraids "MONRAY"
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Fár
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Japan
11-20 June
Jam
11-10 July.
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For
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15 June
14 July
23 July
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MAERSK LINE
FAST FORTNIGITTLY SERVICE TO:
NEW YORK, BOSTON, BALTIMORE & PHILADELPHIA vis SAN FRANCISCO, LOS ANGELES AND PANAMA.
m.v. "LAUlia Maersk" m. v. 40LGA MAEUSK" m.v. "KULDA MAERSK“
NEXT SAILINGS
June 11 June July
17
ARRIVALS FROM U.S.A.
"CHASTINE MAENSK" m.v. B.V. "ELSR MARASKY m.v. TREIN MAERSK”
June 18 Juty.
July 10
For Freight and Further Particulars please apply to:-.
AGENTS:
JEBSEN & CO.
Pedder Buliding.
Tel. Nos. 38066-9
Chinese Freight Booking Office 27, Connaught Road, C.
Tel. 20461
Dates and relation subject to change without notice.
At Uberir to proteid, via äther ports to load/discharge cargo. .
EVERETT
LINES
EVERETT ORIENT LINE
Fast regular freight-refrigerator-passenger service to Korea, Japan, Philippines, Indo China, Slam, Milaya, Rangoon, Calcutta and Chittagong.
"NOREVERETT”
Arrives Saila
Jurie 12 from Monila.. June 13 for Singapore,
Rangoon &
"BRADEVERETT”
Arrives
Salla
Penang, Calcutta.
June 23 from Singapore. June 24 for Kobie & Yokohama. (Accepting cargo for transhipment Kobe/Fosan and Kobe/Okinawa)
EVERETT STAR LINE
Fast regular freight-refrigerator-passenger service to Korea, Japan, Philippines, Indo Chinn, Slam, Malaya, Colombo, Bombay, Karachi and Persian Gulf Ports.
"THAI"
Arrives Sails
June 11, from Singapore.
Juno 12 for Kobe & Yokohama.
"STAR BETELGEUSE"
Arrives Safls
June 22 from Takao
June, 23. for Singapore, Port Swetten- Modena, Colombo, ham,
Bombay, Karachi,
ramshahr,
Bahrein,
Kior-
Basrah
匙
(Aceeping-catgo, for transhipment
. Bobe/Punan : and Kobo/Okinawa)
EVERETT STEAMSHIP CORPORATION S/A
Queen's Building,, Telephone 31206. Chinoro Department: Telephone 28293.
BUSINESS REGULATION
ORDINANCE. 1952
Copies of the prescribed Forms 1 (a) 1(b) and,1(c).
Now On Sale at S. C. M. Post, Ltd.
HONGKON
ONG AND KOWLOON'
TEN CENTS EACH