TRADE
THE CHINA MAIL, MONDAY, AUGUST 8, 1955.
and COMMERCE
NZ Looks ROUGH ROAD AHEAD
For Record Timber Output
Auckland, Aug. 7.
New Zealand's timber out- put in the current year, ending March 31 next, will beat even last year's all-time record of 616,000,000 board feet.
One project alone now about ia come into production, will shortly add to the annual output 72,000,000 board feet-the total planned yearly production of the Tasman Pulp and Paper Company Limited's timber; pulp and paper mill,
The
NEW YORK STERLING HONGKONG
STOCK
MARKET
REVIEW
By Elmer Walzer
New York, Aug. 7. Stocks last week suffered their widest break since the week ended March 11.
The decline amounted to 9.45 points in the industrial average which closed the week at 450.40. The loss, however, umounted to
two meie
per cent, In dollars, the decline knocked Į values of sit listed issues down
by $3,000,000,000,
Rabrund issues The Tasmun Company will week at 155,00 in their average, Use 23,000,000 cubic feet of logs la loss of 3.19 points. Utilities were of а гаете 36 cents at $1 year from a previously un-
| 66,23. tapped source-the 1,000 square miles
closed the
week
Sales for the week toll to a man-made Kaingaroa daily average of 2,108,500 share forest In the central North from 2,232,981 shares Island, planted 30 years ago, with North Agurican pinew.
Current
Friday produced
a recovery So did Tuesday and Wednesday. The big de- of the All were small. exploitation
elines
Can
Further Losses
Of Gold Be Anticipated
EFFECT OF STRIKE
From Ronald Boxall
London, Aug. 7.
The big July gold loss is an indication of the seriousness of the setback suffered by sterling last month as a result of rumour of impending deflation. The fall in re- serves was the largest for more than three years and brought the total of the sterling area's gold and dollar losses to date to $218 million.
country's exotic forest resources industrials lost 6.00 points, and million.
came on Monday when the greatest Indus-on Thursday when represents
they were trial revolution which this Bri-down 0.80 points. tish Dominion has known,
The actual news
of industry fulled to
provide
a clue to the market break. The real reason was the market itself which had hest of wood products, including beren pushed up and with little
Apart
from sawn timber.
tons a year.
of
n
STOCK EXCHANGE
(From Our Correspondent)
Business done on the Hong- kong Stock Exchange this morning amounted to $1,140,000. Noon quotations and the mom- Ing'a transactions;
SHARES BUYERS BELLERS SALES
BANKS
HK Bank
XD
INSUILANCES
Unien...... 1045
SIUPPING
Waterboat
... 24.0
DOCKS, ETC."
Dock
1025
151043
Prevident 10) Wheelock .. 8.90 0.05 7000 2
1000
600 19.10 300 or 18S
LAND, ETC, HK Hotel
.. 19.40
1000
10.10
500
17.70
600 17.10
IK Land
..7135
3000 10,00 1000 or 1720 *1500*17.10
500 176 100 175 500 17.0 500 G 18,20 1500 1630 500 of 10.30 1600 18.40 74 200 of 72
A. Rubber. 2.20 21% 13,000·22215 Tran
The actual decline in reserves was $136
But this tells only part of the RUBBER story. For the sterling area's financial LITIES transactions with Western Europe are settled a month in arrear and July's big deficit will call for a gold payment of $35 million to EPU within the next few days.
the
sterior
Tighter
pur-
Star Ferry .. Yaumati Ferry
150 100 sig 100 100 123 C. Light (0) 21.70 22.00 2000 m 2235
C. Light (N) 17.60 Electric
Telephone
Cement
COTTONS
Nenyeng
Yangtze Allied
150 22.70 0200 32.00
47000 171
500 17.75
42 49 300 41 1:200 42
32
1.20
0.30
5.00
2000 31%
2:00 e 33
300 g 23
100 37 300
2000 v 3011⁄2
150 @ 6.30
kraft pulp and paper, veneers,
or no resting period. Traders hardboard, wallboard, cardboard were advised to be cautious. end multiwall logs, ore pouring
MORE REASONS from new milis.
Later on in Soon news-
the week more The Treasury claims that the future whispering campaign INDUSTRIALS 324 33% 2000 E§ 8274 inlo. the
the will be added to these reasons came
news.
pound. print
pressure on sterling that caused against The prime interest rate
hire was hie alarming drain on from the Tasmin boosted. Banks also hilted rates reserves is already a matter of chase
gold restrictions commodities
and the credit STORES, ETC. Company's £1,000,000 machine on bankers seeeptances, and all
Daley ......22.60 £3.40 "squeeze" on businessmen con- Watson
10.70 L. Crawford 35 iv. the not unde overnight the harm which has a capacity of 75,000 but one Federal Reserve centre pasta glaim which is barna
out by the boosted
recovery Its rediscount
rate.
since done to Britain's balance of pay- exchange rate Money was tightening all around.
Butler tightened ments by the recent strikes. Two established companies, and this was bad psychologically rediit controls and denied any Until their effect begins to be which between them pioneered for the market, the trading intention of allowing the rate to
felt some further loss of gold is MISCELLANEOUS the use of the 1,000,000 Beres element sal
Two big man-made forests, exotic
depreciate below its present fixed inevitable, companies Standard
minum. are expanding prodution in their Oil (NJ) and Chrysler Corp.
the provided
At the disappointments. Each special fields. Thens are Whakatane Board Mills (card had record first half earnings the Treasury spokesman warned board) and New Zealand Forest andi cach clung to its usual
that the gold figures gave come Products (kraft pulp and paper, dividend instead of boosting the es of how streng credit con- timber, wallboard. hardboard
have payment
would or declaring an extra traction etc), The Whakatane Board as
had. "Faced with a movement of this market operators Mills are increasing output from anticipated.
size," he said, "the authorities 10,000 tons to 32,000 tons of Another reason for markel cardboard a year, Forest Pro-lethargy and profit-inking, was duets, a £7000,000 enterprise, the failure of railroad issuestion." is stepping up its timber, kraft to participate with vigour in the pulp and paper production to rise. That group closed down meet domestic and Overseas ordera,
National forest policy aims at an annual surplus of at least 50.000.000 cable feet of round forest
material for export in
quirements for sawn produce or pulp and paper projects.
On the basis of latest develop- ments this export figure will be achieved, and possibly exceeded by 1937,
on the week with Union Pacific
off 4 points and Santa Fe of 3 points.
issues. A
tetul
Press,
oft
of
turned
an
World Bank
is maro same time, however,
The cecond half of the year unfavourable for the sterling area's dollar carnings than the first half and the third quarter of the year is the mast
all period of
August gold will be adversely affect
to become "rable
can hardly fail to apply the new rea
measures with arm determin-
Many Factors
at
to
כאן
the
of
by the $35 million payment to the EPU in sctilement July's deficit. The demand for Continental currencies
܂
of
Britain
SECTION
FOR London Market
Begins To Tumble At Last
Ceylon Rubber Prices
Colombo, Aur. 7, Miulater of Commerce Shirley Cores said on his Arrival bere kast. · Friday that the Ceylon trade mis- slon which has been tour. ing Europe has created an interest in Ceylonese goods.
Mr Corca ent short his European tour to rush home for discussions on the revision of rubber prices with Communist China, Government sources Bald he may go to Peking for direct talks on the rub- ber altuation.
the
The Minister sald trade mission visited, 17 European countries.
A trade agreement waS atened with Spain, and draft agreements were dis- cussed with Italy, France Crechoslovakia, he said.
Negotiations with France and Italy will be continued through their diplomatia- representatives in Colombo before
agreements
signed, he said.
Crecheslovakia and Yugo- slavia said they would be willing to send trade mis- sians to Ceylon to dincrass the promotion of trade, he said.United Press.
N.Y. COTTON
MARKET
REVIEW
By William T. Plunkott
New York, Aug. 7. Cotton prices last week operated a defensive position traders watched crop developments and waited for
come to
дв
May Washington to
Have To
Change Policy
| decision on the surplus dis.
posal plan.
Sagging irregularly for four out of the flye sessions, the list at Friday's close showed losses of 22 to 38 points, or off $1.10 to $1.00 a bale,
the
on
Uppermost interest · at end of the period centred the. Government's first crop es- timated of the season to be published on Monday morning,
While the the year is the smallest
acreage planted since 1883, and the yield obviously will be below last year, yol crop exports emphasise that the yield per acre may reach a re- cord. One survey said plants in various suctions are bushy and generally well fruited
the
Originally trade ideas some weeks ago beetms Axed on a crop of around 114 million bales, Since then timates have been creeping up gradually with some quarters bordering On the 12- million mark,
AVERAGE
tourists will again be high this month and this may well in crease the gold drain.
For in The netback suffered by the the future three-quarters Útilities. considered
deficit inrezerves last month was due to any
Incurred with
Toronto, Aug. 7. vestment group, were sustained a number of factors. The grows Western Europe will have to Britain's dropping exports to by selective buying in a few ing realisation of the serious ime be settled by a gold payment. Canada may force it change in plications for Britain's balanet | Until the beginning of the its liberal trade polley affecting Som form of manufactured
872 issues, of payments, of the recent pro- month only half the debt was Canadian industry, Mr James goods over and above local re-mojority of the 1,418 traded, longed dock strike, coupled with settled in gold.
S. Duncan, Chairman of the declined.
evidence of A mere 387 were the mu
Dollar-Sterling Trade Council able to record gains.
inflation-publicised
Later in the year some bene and home
(which
President at Massey Aircraft issues did OCIET Government's previous measures it can be looked for from the Harris-Ferguson, said today. The New Zealand State Forest
other groups. than Service says that over any long
had signally faild to halt) coin- rocent disinflationary measures Mr Duncan said British cx Steels this quantity of raw
down, cided with
of But the best that can be hoped ports to Canada were down by the period
appeararke
the Arst six Bethlehem Beling ex-dividend, normal sensorul straft on sterling offset the new Onnual in 530,000,000
Lor material converted, should have
WIN of between
of This year points-United led to the an export
loss of confidence heavy
while value
stalment on the United States | Canadian among foreign businessmen,
exports to Britain £10,000,000 and £12,000,000..
But these
factors in the-
and Canadian loans which fall were up $100,000,000 over 1954. selves do not explain the size of
due in December-London Ex-establishing a record. the July gold loss. This was press Service.
The Dollar Sterling Trade due above all
Council felt Britain would be now persistent rumours that the pound was
forced to change her liberai about 10 become convertible
trade policy unless the situation (August 1 was the date most
was brought info bainace, 19 sald
Canadian exports to Britain The average of five estimales an August 1.mp would expand as Britain's dollar
promise
of 11,858,000 bales. position improved, but Britain
compare with st might tighten up trade restric. tions if its exports
year's crop of 13,079,000 bales. to dollar countries continued to depline, bars of the New Orleans Cotton The averago guess of 40 mert- Mr Duncan added,,...
Exchange He also announced that Mr bales. The highest
11,578,144 Calimanta A. E. Grauer, Chairman and President
the 12,000,000 balts
on Columbia Power Corp., Ltd, had question of what the outcome become a member of the Dollar- of the fraue on an export sub- Sterling Trade Council.
aldy for the new crop would te. After British Columbia played at the Cabinet level, President several conferricor important part in stepping up
Elcenbower late in the work Canadian exports to Great
tin announcement Britain, Mr. Duncan said The indicated
Boon, on the United Kingdom recently in
cotton crossed purchases of British
export Columbia lumber,
After the series of conflicting reports, the ranic and file of traders inally decided to let the matter keep percolating and'
Loans
Over
In the past year, production of indigenous timber declined, continuing a trend first recorded. in the previous timber. This irend to exotics will become much greater in the future with the rapid depletion of native timber. The Forest Service has
Washington, adopted a conservation policy in The World Bank the Indigenous forests and is loans totalling restricting felling.
$409 Million
often mentioned) and that as a
preliminary to this the British authorities would permit
sterl-
ing to be traded within wider
margins than the present 2.78- 2.82 dollars. Everyone knew—- or thought they knew that this 20meant a devaluation in disguise.
Aug. made $400,000,000
(£146,227,200) to 14 countries 'Leads And Lags'
in the fiscal year ended June 30,
the
Indicative of the spectacular 1955, the Bank reported today rise of New Zealand's forest in in its annual financial state-new-familiar process klown, at These rumours set in train the dustries is the fact that produc-ment. tion of wood pulp in the past
"lends and logs,” What happen- This brings to a total of $2-ed was this. Foreign business- ten years rose by nearly 330 per 324,000,000 (£829,608,990) Lonny men who owed bills in sterling cent. Output leapt from 14,415 advanced by the Bank ons delayed payment by the tons in 1953-54 to 72 772 tons in began lending operations in the year to March 31, 1953.
sible in
hope that 1947.
would be The Bank's loans were chief cheaper when the bills became able to buy sterling The Tasman Company's milliy designed for reconstruction tue. At the same time holders alone will double these figures of war-shattered areas. In re of sterling anticipated their re- in the current year without cent years the stress has been quirements of foreign curren taking into account expanded on
economic production by the other big nations seeking to raise
development of cice
and
brought torwnrel their companies.
purchases that in | living standards.
the normal would not have been made way Gross income for the last unill later in the year. Wood pulp exports last year, financial year was $80,500,000
to Australia. mainly
totalled (£20,884,500)
Those delayed purchases and compared with accelerated sales of sterling in- 22,000 tons. This Agure will be | $50,500,000 (£18,028,500) In be greatly exceeded this year.
evitably imposed a severe strain 1934. ExpenLSES for the 1053 on the sterling exchange rate,
year amounted
forcing the British authorities to The capacity of Now Zealand's $33,000,000 (£12,006,000).
The report gaid
spend tens of millions of dollars will be 420,000 tons, compared now 50 members
there were to prevent the rate falling below of the Bank, the Axed lower limit with the presont capacity of 183,-Israel had joined during the dollars. 000 tons,
year, and Czechoslovakia had
Fortunately for the sterling censed to be a member.-Reuter.aren: those ...eirains.
have now been eased. But rumours which were chlofly responsible for
pulp and paper Industry In 1908
New Zealand's forest develop- ments spring from the Imagina-
fiscal
to
Singapore
indicated
This would Stock Market
Singapore, Aug. 8. Brokers today quoted the fol- lowing stock prices!
Botis Lintang Rubber
L14. British Borneo
Syndicate Consolidated
Opening
ing Corp.
Hongkong & Shanghai Bank-
Co.
Petroleum-
Tin Smelters Ord. Fraser & Henve Ltd. Ord. Fraser & Neave Ltd. 75%
cum. prof
D $1.70
32/+ $1.72
$0.50
$980
tarkone Tin” Lut.
b/od
Kempas Ltd..........
$1.85
Jaanus Rubber Estates Ltd.
Malayan Breweries
$3.30
New Barandah Rubber
Lid.
01:00
$4.00
12.35
Singapore Cold Storage
$1.07
Lid
Stralis Trading
Straite Bleanalip
United Engineers Ord. Waarne Bise.
Petaling T Ltd.
Ramas Hotel
Sruth British Insurance Co.
#11.10 $2,77
-China Mall Special.
of 2.98 The Bank Of Franco
Statement
tive conservation policy adopted The Bank Of England them cannot be lightly dismissed for the week ended July 28,
when the State Forest
became a separate
Paris, Aug. 7, The Bank of Franco elatamter)? The fact is that, the boljot that ronds as follows: starling •Was. about:ita - be, London, Aug. 7 devalued would never have total word "hálaisias -
Total
Service
department
Statement
The Bank of England state-
gained the currency it did unlear
of Stato Jri 1920, Exotic foresta
were planted to forestali'à tim-
ber famine and to make poble ment for the week ended August
A reduction in the cut from the 3, reads as follows
Indigenous forestn It
found that North Amerionn
pines would grow up to Threa
timba taster-vere timer in- their otherwetkili
native soils. Chine Modi wipe.
Special.
it had been, backed by some was
soild evidence. And the evidence
Imports were
The Roumblr have
{ provid: Untrue, but the evidek
of
the
British
was
steminium, base metals and carmed salmon-Untied Press.
WED
be made
Singapore Rubber wait for the official decision to
Market
Singapore, Allg. 7, The market was a bit nervous towards the close on Saturday, Futures: No. 1 rubber per lb. Aug. 148-14
Sept. 11: Oct. unquoted rubber per Ib. /wg. 143}}j+1428 13415-12015
#pos, rubber usbeled 14832-148
No. 1 pale brøpe
FF
“United Press (
Exchange Rates
in the locki
be malle,
Weakness at Liverpool late In the week suggested uneasi DENS OVETSÜÜs that the weekend might bringen announcement that the an indication and Government intended to push the sals of US cotton it com- petitive world prices-United Frens,
U.S. RAW COTTON,
WWW EXPORTS
New Corton l'export afton na reporte
rada
Now
bal
From Our Economic Correspondent
London, Aug. 6. Whatever else it is doing the new credit "squeeze" is beginning to hurt investors.
All old industrial and oil favourites in the London stock market came tumbling down during the week. And the explanation was always the same: Mr Butler's money squeeze was making itself felt.
*Last This Week's Week's
Clove Close Love 30%Od ja 31 li 45-0d
34
Dorman Long 345
On the top of the new hire purchase restrictions and in- siructions to the banks to cut averdrafts came the news of the Ford big July gold and dollar loss and a plain kint from a Trea sury spokesman that now the City knew what to expect.
At the moment the effect of the money
squeeze 19 more psychological than physical. though there have boën reporte that some people have had to liquidate Stock Exchange in- vestments to pay off overdraftw that have been called in,
More important however is the fact that speculators are on the run
And when the mar kels begin to fall after the pro- longed boom nobody will know when I will stop or who will get hurt in the process. So called "speculative favourites" haven't been the only ones to suffer.
Famers Withy sa od 400 за Metai Box 60% d ICI
નવ GL Universal
$3% Gd Am. Cement 120€ D₫ Bowater
10 Oct
P08 3d Bd Brit. Petrol 1304 Od 11500 10 0 Bunnah Oil 175 od 1530d 21 3d
X X Yazi
112a0d 143d
The closing figure of the in- dustrial share. Index was not available at the time of writing,
but up to Thursday's close, it had lost 19.4 points since tho peak of July 21 and 10.8 since Mr Butler
his new credit squeeze on July 25.
announced
Government securities
wend
down, but though less also sharply, War Loan 31⁄2 per cent finished at £78 és 3d, a loss of 18s Dd on the week.
The weakness of other markets had its influence on commodity
Inductrials and oft shares have sustained the biggest fulls with many losses ranging to £10 105. The Financial Timeshares. Even rubber shares turn- industrial share index lost 11.23ed huil despite a points in three business days to Price of the commodity. Thursday and was sharply down again on Friday.
SOME
EXAMPLES
Here are some examples of the week's losses in the various sections of the market;
EVERETT
new record
Some issues, however, moved against the trand cor "special factors." In this category were Chinese bonds which markedly at the beginning of the Geneva tallos between China and the United States.
NES
EVERETT ORIENT LINE
Fast Regular Freight Befrigerator Paitanger Service
Loading for Singapore, Penang. Rangoon, Calcutta' and
@REBEVERETT" "NORSVERETT" "DEADEVEERTT" "LENEVERETT"
24
Arr. Sept.
0
Bept, za
Balle Sept.
Bept. 29
10
Oct.
-- Oct.
10 24
- Oct, 11
-- Oct.
Atr. Aug. 18
- Aug. 31
12 Sails Aug.
1
Sept,
Loading for Kobe, Osaka, Nagoya, Yokohama.
"REBEVERETT"
"NOREVERETT""
"BRADEVERETT”.
"LENEVERETT”
- Sept. 13 -Bept, 23
Sopt, it Sept. 34
LIMITED FASSENGER ACCOMMODATION.
All the above subject to alteration wilkout notice.
EVERETT
STAR LINE
FAST REGULAR FREIGHT: REFRIGERATOR SERVICE
Leading for Singapore, Pork Swuftenham, Madras, Colombo, Bombay, Karachi à Fersten Gut Port "STAR BETELGEUBE" ATT. Aug. 13 Bails Aug.
Sept. 7
--- Sept.
Supt. - Sept.
•Loading for Kabe; Ojaka, Nagoya, Tekstama.
*STAR ARCTURUS”' *THAI*
#STAN ALCYONE"
- Oct.
33
Nov.
---- Oct, --- Nov.
·METAR ARCTURUS" *THAI”
"STAR ALCYONE” *LAG":
Art. Aug. 13
Sept. Sept 18 33 **** Oct. "STAR BETELUKUSE". - Oct,
Balls Aug. -- Sept. -Bept. 18. www.Oct. 14
Oct.
20
14
** LIMITED PASSENGER ACCOMMODATION.
All the shore subject is witeration without notios.
EVERETT STEAMSHIP CORPORATION S/A.
(Incorporated in the 'Məbabile, af Panama, with Limited Liability) Chinese Department: Telephone 28293. Queen's Building, Telephone 31206.
MESSAGERIES MARITIMES
P.O. Box 53 / Queen"; Building"
FAST PASSENGER/FREIGHT SERVICE S
by "CAMBODGE"
"LAOB"
In Aun 18
POMO
lling Bøpt. 10th
sälling. Aug. 17th Galliner Sept. 218t
1