Th
OUTWARD SIGNS OF WEALTH
Madrid. June 12. Spain has thought of a
new way to catch up on the taxpayer reluctant
clare his true income.
to de.
the
From now on... income-tax inspectors will check on "outward signs of wealth dis- played by taxpayers.
un
The ownership of a motorcar yacht, employment of numerous domestic servants, the giving of society fiestas, will all be taken into
account
assessed on a prepared schedule.
Thus, the income-tax authori ties will regard ownership of 20-hp moterear
expenditure
as indicating an
of 30,000 pesetas
£300) year: Possession of a
Yacht will rate as equal
200-ton y
to spending
200,000
£2,000).
pesetas
A horse for riding
or driving in the city—not the country where a horse Fax:rded
as a necessity
in
is
is
ussessed as 8,000 pesetas (8) expenditura. A Tace-horse rates way of
as 18.000 pesetas (180). It is indicative of the
THE CHINA MAIL, MONDAY, JUNE 13, 1955.”
TRADE
Sterling
and
COMMERCE
Convertibility
NEW YORK Some Way Off
STOCK
MARKET
REVIEW
By Elmer Walzer
New York, June 12.
The new Ford Motor Co.
wage contract sent a new
market last week.
3 For
the industrial average reach- ed new high ground for time. It duplicated the fent an Friday.
three straight sessions in Spain that while theMonday through Wednesday ownership ot u motorcar is regarded as denoting wealth, to have two domestic servants in one's home does not count. Only three or more servants come inio
of showing the category wealth.
a
OVER TWO
Each domestic servant aver two is assessed by the Slate as representing 9,000 pesetas (£90). OT 13,000 pesetas (2130) in the ser- vant is male.
measure
THREE IMPORTANT ESSENTIALS
MUST BE SETTLED FIRST
From RONALD BOXALL
London, June 12,
The British Government's policy of working towards buying wave in the stock freer trade and payments was reaffirmed in the Queen's speech at the opening" of Parliament. At the same time in Paris the European finance ministers, were meeting under the chairmanship of Mr R. A. Butler, Chancellor of the Exchequer, to discuss plans that have an important bearing on this policy. Now that the Conservatives have been returned to power with a comfortable majority there is a tendency to assume that convertibility will not be long delayed. It would be over-optimistic, however, to expert this to happen before the end of the year. By then most of the technical details of convertibility should have been worked out and we should know whether measures taken by the British Government to combat inflation have succeeded or not.
ון
Railroad shares fáiled 10 condem this rise and this fact coupled with rumours. f impending margin rise from the current 70 per cent set off con- siderable realising, [11 10% Thursday session.
That little reaction let the
in
i market
stronger position apparently, for it resumed its rise in a more leisurely fashion in the final session of the week. Industrials had made up all the losses and rali nearly, made up
theirs.
The tax inspectors will want
lot of
from explanations citizens whose declared income falls below the income which he estimates after examining these Signics Ex- 'outward signs" terhos) of prosperity.
The
has causeti a furry among the rich and near- rich people of Spain.
taxpayers Some
expressed alarni as to precisely at what point the tax
inspector. looking
than Sales averaged more. fur signs of wealth, would halt
investigations. Would 3,000,000 shares in the first three his nothing be
Sacred
from this sessions. It was the most active inquisition, they asked,
week
one ending since the The Government has soothed on April 22.
their anxiety by ruling that
under no circumstances will an investigation into the private life of the taxpayer be tolera- ted." Society commentators re- ported that husbands were more pleased than their wives by this ruling.
Seme economists are not happy
S economists argue
urgent need is indus- They go on from
about the measure.
to stress that
that
unless
trialisation. inere, Spain's small middle and upper class
pour their class continue to capital into industrial projects, the effect on Spain's cronomy will be harmful. The State, they say, will then have to do it itself a step which it is liable to take inefficiently, ex- with risk of pensively and infation always attendant
EVEN PAMPER
So these economists argue that the Governmer's" policy should be rather to 11'00. and even to pamper these groups of society, be- cause the diffenties in- volved In launching new industries in
ark agrarian
The net result for the week was a substantial gains in in dustrials and moderate declines in the 'two other major groups calls and utilities.
WORRIED
WEEKLY
TEXTILE
MARKETS
on
If the British election had
all any influence at
the timing of convertibility it was on on the political rather than the economic side of the ques- tion. Socialist objections to the abolition of exchange controls
achieved, to be
are
er now than they
الانام
A
Still
CAPITAL IS
NOT MONEY
New York, June 12. The world's biggest chemical company said to day Americans within a decade can expect a 20 to 25 per cent improvement in their living standards and 12,000,000 more Jobs.
Du'
u Pont Nemours and Co. Inc., made this state- mept in a new company booklet entitled "the Story of Creative Capital."
It said the forecast "as- sumes a wide and steady flow of capital into produc- tive enterprise."
SECTION
Du Pont estimated total needs by 1956 will amount to $580,000,000,000, This Is equal to a 314,000 invest- went of creative capital for each family unit in the U.S.
The booklet defined capital not as money but as the tools of production.
United Press.
HONGKONG
STOCK EXCHANGE
Page
LONDON STOCK MARKETS
Investors Ignore Implications
Of The Strikes
From Our Own Correspondent
London, June. 12.
It has been another week of spectacular advance on the London Stock Exchange. Profit- taking in the last two days clipped some of the gains but most first class industrial shares-on which demand has been largely concentrated- finished well ahead on the week..
•
The Prime Minister's broadcast over the week-end warning of serious economic implica- - tions of the railway strike subdued the market on Monday. But Tuesday brought some sort of hope for an early settlement, however, and the Financial Times index of industrial ordinary shares spurted 4.5 on that day and a further 3.7 on Wednesday when it closed at an all-time high of 211.3.
After that prices lost a Mile|issues
not far behind. Gains
off the top but there was still ranged to several shillings.
liberal sprinkling of plus sign in the list at the close,
..
ex-
Gilt-edged were quiet by eom- parison but showed steady im- Investors still appear to be proyement on investment sup- more influenced by the Censer- port. vative election victory, the recent. “American demand
Oils again shared the To: high-grade British
periences of industrial equities, industrial share and the prosperity of in-orging ahead on Tuesday and dustry generally than they are Wednesday, first folder the lead by the economic
of British Petrol and then of consequences Shell and falling back on Thurs-
She!
But as with day and Friday, serious though these are.
industrial shares the week-end
(From Our Correspondent) of the railway and dock strikes
Business done on the Hong- Stock Exchange this kong
$359,- morning
amounted
to 135.10.-Noon quotations and two. the morning's transactions:
SHARES BUYERS SELLERS SALES
BANKS
HK Bank 1070 1080 21 1580
East Asia... *** INSURANCES
Union ..... 940 Lombard .... 50+ 2
It would probably not be
in itself very risky operation to combine these two rates and for declare sterling convertible "ron-residents"
of the sterling area. But could the situation be held for long in which foreign- to spend are not likely to cause a delayers had the right now that the Conservatives are pounds freely on American goods
of safety entrenched in power for while residents the sterling Lanother four or five years. arm were still compelled to practise strict "dollar economy?" But the economic problems If not Britain might be pushed
with connected
convertibility
into convertibility in its fullest remain as large as ever. Three
sense long before sterling was New York, June 12.
have High point of the week essential conditions
The sterling ready for it. textile trade area's central in the cotton
gold and dolar
SLOW ADVANCE still not Large Wall Street worried about the
must The policy, therefore automobile and steel industries came on Friday with news of reserves
still be one of slow advance. with their pay increases in the the substantial tarif reduc-enough-in fact they are small- were at this
will come Other auto companies tions to be made in the im- time last year. And little or no And the next move were expected to settle peace port of carded goods from progress has been made on the very shortly-in fact on July 1 Payments condition Ford
the when the European second fully with
that fully concessions. Steel
United
is due companies Japan.
should
to be renewed adopt Union were said to be lacing tough
Prior to that time, business "good creditor policies though for a further year. For at their the European to hope there Paris meeting mands, but
anti- market men manus
was quiet and mostly routine, there is reason
There has at finance ministers decided that in cipated no strikes as the situa Selective buying came in spurts will be shortly,
and future the ratio of gold pay-DOCKS, ETC.. twills, least been no backsliding tion strikeless labour settle-
broadcloths, jeans,
ments to credit in monthly EPU ments in leading industries -n
settlements should be 75-25 in- was seen as favourable since it lawns and print cloths. Prices that in itself is a hopeful sign
stead of the present 50-50. continuance record held Arm in most categories. production. Also it meant infa-
This is one more stage in the A mixed first reaction greeted
dis-adual
"hardening" of the the tariff reduction, announced lion.
Union which has been going on LAND, ETC.
West since..
European
LUK Hotel When selling hit the market by the State Department, and
HK Land their advance countries started on Thursday, the best gainers to become effective on Septem-
Humphreys towards
In all convertibility.
RTS of the week suffered the widest ber 10.
the
Realty probability it will also be setbacks,
last stage, for when sterting
UTILITIES
Tram
cards.
meant
Business
labour after
of
de
also
Its record. Construction
sharply higher-a record for the first five months of 1955.
land, such as Spain, are of a nature to make such in- vestment unattractive unless substantial profits are in sight for years. The Falange party. Spain's only political party, which has the put heavy pressure on authorities to take these and other tax measures against the well-to-do, takes the view that great discontent is caused in a -poor nation like Spain by the sight of heavy personal expen- dilure
by a small on luxuries sector of society.
WDS at least a few
States
the
the
MOST DISAPPOINTING Progress has been most
however, on appointing third condition-the elimination of inflation at home, Since con- vertibility was last in the news the
Government British
has been compelled
raise the bank rate on two separate oc- and other major European cur casions and to place" new
rencies become convertible EPU strictions on hire purchase. The will be wound up and its place result is not yet clear but it is taken by a Epropean fund from significant that the City of which countries whose cur-
has started talking rencies remain temporarily carded fabrics brought expres about the possibility of new dis-convertible will be able to draw short-term credit to meet their all balance of payments difficulties.
Others
REACTION AWAITED
London
re-
not
exports in
Exchange
more
A
Rates
-
SHIPPING
Waterboat .. 29. Asia Nov.
30C.
7913
K Whart Dock ...... 25.20 Provident (0) 13.49 S'ha Dock 14" Wheelock...
Star Ferry
$ 240
7.70 1000 m. 7.70
4500 79%
16.60 16.80 2500 14.00 .. GBA GS 400
0.10
1006 6 6.10
2.00 2.1212
23.10 349 y 23,10
2000 in 2 147"
Y mau Ferry 119 120 130 110 C. Ligne (0) 2020 20.30
C. LE (N) 15.90 16 1000 15 Electric
.... 39
40 SUB
Macao Elec. 10.00 11.10 Telephone ... 331 3 INDUSTRIALS
Coment
Rope
STORES, ETC.
Dairy Watson
Conserva-ark
Africar, gold
35 POINTS ABOVE setback only partially reduced
previous
In
markets
South The railway strike began only
shares registered a days after the tives victory was confirmed. Yetmarked Improvement on Thurs- since then the Financial Times day after earlier dullness; tens on the reducign in index has advanced nearly 14 were firm pants. At Thursday's close it the Ceylon export tax; rubber
shares. was no less than. 35 points above share went ahead on the the year's low of mid-March, strength of the commodity; and coppers advanced strongly on + Steel shares led last week's investment demand encouraged. advance with capital goods," by the recent firmness of the textiles, stores and hire-purchase finetal price,"
EVERE
LINES
EVERETT ORIENT LINE
Fast Regular Freight Refrigerator Passenger Service Loading for Singapore, Penang, Rangoon," Caleatta and Chittagong.
"NOREVERETT""
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Loading for Kube, Osaka, Nagoya, Yokohama.
"LENEVEREFT"
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14.40 1100 11.20
Textile Corp 12.00 Nanyon ....
#5%
500 en 7.10
24.60
4.825
COTTONS
182 MISCELLANEOUS 7.07 Allied
NEW COMPANY?
One viewpoint was that it the door wider to At the highs the industrial would open list registered its best since the Japanese competition.
withheld comment altogether week ended March 25, and the
text of the 3,000,000-average pace for more until the whole than half the week was the first agreement can be analysed. time that average has been hit
Cuts of about 25 per cent on since the week ended March 11.
inflationary moves. news Icatured the sons of surprise from executives
One thing is certain in bright side, although wild cat who thought the cuts would be
less.
Convertibility will Buying offices expressed this. strikes cut automobile output.
eagerness to Scan the new come until the British authori- that Britain Steel production approached schedules to determine which ties are satisfied
her present articles would be worthy of im- cán, hold at least
Business was done in the local unofficial exchange market this proving, either for the first time, position in the export race.
morning at the following ratest- are 15 Unfortunately we ur in larger quantities.
U.S. dollar (par 31).........
5.80 1543 to do this sterling notes (per 21) sure of being able. 'National income set a new
than we were a year ago. Since Indonesian rupiah (per 100) high, So. did gross
national
Lave Slum ticals, (per 100) Political reaction in Washing- then wages in Britain product. Secretary of Commerce
ton also was awaited. Since the risen another five per cent and Singapore (Strails) Mr Sinclair Weeks said that rate on fire cotton goods were our
ability to compete with Indo-China plastres iper 100) with peace on the key in hardly touched, New England rival exporters has been further dustries, it is expected that 1955 lawomarkers were expected impaired by the dock and rail-
year be "happy"
aver the results way strikes. True, will be the best business ever, United Press,
Reaction of southern-state the first quarter of this year
ues-brought eight per cent, Icwnmakers was another
tarlit cuts, imports than they did in 1930, biggest tas tion. The
this favourable situa-. market analysts pointed out, but will are scheduled for cotton duck, tion continue or improve? denims, drills, ginghams and
An article in the current issue and Cambridge print cloths, on which produc-
Economic Bulletin shows optimistic it would be to hope that our balance of payments Settlement of the Ford Motor difficulties will be solved for us Company-union differences was favourable movement
by 3, Folange insisted that a toughy Brokers today quoted the heartening to producers At
For, the terms of trade hand against the rich was right following stock prices:
industrial cotton grey policy and not one of gentle
the says, in order to match expected Opening goods. They
import volume of increase in persuasion."
1954 cent between The Government
agreement accepted Batu Lintang Rubber...... 31.52
per seven Falange's view and hence the British Borneo Petroletan
pattern with other manufacand 1955-and as the article Synd.
... 15/8
and that buying of in points out, this
not unlikely new measures to check
Consolidated. Th Smelter reluctant taxpayers.
ord.
32/6 dustrial textiles will be Bub-the inder of export purchase 31.67 Fraser & Neave ord...........
stantial for the fourth quarter, ing power would have to average Fraser & Nerve 7 pc.
$4.15
116 over the whole of the Last cum pret Hongkong & Shengtial Bank $300 Spinners reported a sporadic three-quarters of 1955. That is
7/9 Honkone Tin
demand fer yarns, with weaving to say in relation to the first $1.60
of trade either terms numbers showing the best call, quarter $2.05 $3.33 ed in the overall, however, buyers would have to improve by eight $1.37
a mixture of the were slow to get too far out be.per cent or
of the turo, $2.35 xd cause of the nearness
mill vacation and mid-year
-perlod.- inventory taking 177240 $13.50 United Press, #11 $2.06 -China Mall Special.
It
w39 Falange pressure which caused Parliament, in 1954. 20
draft law reject 11.
the Minister of presented by Finance, in which every effort was made to induce taxpayers to invest money in prochictive state or industrial Investments
the
Some
" POLITICAL MOTIVES
Behind Falange's "soak rich" policy lle, of course, political motives. anti-regime eireles have taken the proposal of General
Franco to restore the Monarchy as grounds to argue that the Spanish clock will be turned back to the davn when Spain was a very comfortable place for a person of wealth. Falange
is anxious to
down these arguments
on
knock and. to
Singapore
Stock Markettion new is largely concentrated of the London
Kempas
Singapore, June 13.
Lainas Rubber Estates Malayan Breweries New Berandah Bubber Petaling Tin
Rafes Hotel Singapore Cold Storage South British Insurance Stralis Trading Straits Steamship United Engineers ord Welma BrOK.
1:10
show that the present regime is The Bank Of England
in the vanguard in any move to
reduce class privileges.
Meanwhile since income-tax proper, as distinct from the tax-
on
salaries, begins at an un earned
year and
then
of over 100,000
pesetas (1,000)
only at 2.50 per cent, commentators here argue that
Statement
the southern states.
wide
Surers
become the
The Bank Of France Statement
Trazion
Paris June 12. The Bank of France statement London June 12 For the weekends Fine R gods The Bank of England state-as follows: ment for the week ended June
tiated cold holding 8 reads as follows:
Total other currencies Sterling 1,776,678,5 Sight balance abroad 16.43 374 Advance to Currency
Slakallication 327,870,737 Toll Bus discounted 279,241,629 Bank notes in cros 340 881923
39,091 309, Current secounts and 143
deposite United Press.
Note: circulation
Public deposİ13: Private deposits Govenment securities
Beceipty
the taxpayers scarcely seem liable to be crushed, even when the regulation conceming the other securities
"nutward"". signs of wealth" IN PALO applied China Max Special.
how From the word "GO".
in
an
NOT BACKGROUND This is not the sort of back- Can ground against which one salely build hopes of an early
is not
place your printing order where you are assured
of personal attention, expert designing,
the finest materials
and craftsmanship.
fi
From Articles of Association, Share Certificates to Letter Headings and the many other essential items, consult the Printing Department of the South China Morning Post, Ltd:
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Already, In fact, the pound is t convertible for many practical 201.231,581 purposes. Thanks to the British 12274.6632 authorities' decision to support 133,318,047.008 the rate for transferable, sterl 196,000,000.005ing foreigners who earn pounds BY 320 in trade with the sterling area may now exbarge them? Into (2.099 dollars at a discount of sess than one per cent on the official exchange rate;
1811,978,373
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Art. June 17 Salle Junie 18
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20
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Aug. 13
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