TRADE and
THE CHINA MAIL, TUESDAY, AUGUST 9, 1955.
COMMERCE SECTION
NEW YORK US Financiers Pleased Over Bank
STOCK
MARKET Rate Increase
New York, Aug. 8. Stocks backed down again today under pressure of further tightening in money rates-this time the rate on brokers loans...
In early dealings, stocks ex- tended Friday's advance by small amounts with trading at the slowest pace of the year.
When the large New York banic boosted their rute Joans
to brukers for morgin accounts from 3 to 3% per cunt, prices started to silde and volume picked enough
up cross the Friday level at 1.730,-! 000 shares against 1,000,000.
to
Industrials as a group closed
2.35 points lower on average
Rulls, which had ingged even in the early trading, were off 1.44, an even bigger percentage decline, and utilities, dipped
0.03.
Coppers Feature
Copper slooks featured the Carly rise on the outlook for higher prices for the metal and many of the shares held gains of a point or so in the face of Kennecott, the general decline. Inspiration, Miami and Revere all were up around one on the cay
Losses among leading Issues ran to point or two. For the
main body on stocks they were fractional and for a few special Issues flaw were sizable' guins.
total 1,137
issues appouring on the tape, 601 were lower, 205 higher.
a
Steel were among the harder hit with losses ranging to more than a point in Bethlehem and Crucible.
CLOSING PRICES
Alden Inc. Acy. Allled Chemicals Allied Mills Inc.
American Cyanainte Cu,
Allis Chalmers
American Airline
Am. Mach. & dry.
Anterican Metal
American Smelting
Am. Sugar Ref.
American Tel & Tel
American Tob. ""
Angcuida Copper
$ 24-45
10014
30
718 2514
57
20,
56
TIMELY ACTION
TO CURB INFLATION
By JOHN MORKA
New York, Aug. 8. American financial circles were confident here today that the rise in the rediscount rates imposed by the Federal Reserve Bank aimed at curbing credit "excesses" would have a beneficial effect on the American economy.
By making money more expensive for banks to borrow-and in effect causing banks to exercise greater
in restraint processing new loan applications--it was felt that the Board's action would put a brake on so-called "fringes" and more
type of consumer speculative
and business borrowing. There was indication in financial circles that the Board contemplated interfering with normal requirements of individuals for credit.
The Federal Reserve Board, for the cond time this year, approved fractional increases Ju the rediscount rates in four of its districts, The eight other districts are expected to follow suit: The eight other districts charged member banks
torrowed from arenty parent bank.
Coupled with
Board's action, leading commercial banks throughout the United States, boosted the prime rates-the interest they change the biggest borrowers with the best
Credit
the
business
.and
The Federal Reserve Board is apparently hopeful that the situa- tion will pile up itself out in the coming months.
מי
Rubber Stockpile Uncertain
New York, Aux. 8. The United States will noi decide whether to dis- Doss of any of te hure #lockpile of natural rub- ber before autumn, it was reported today.
Dow Jones and Co., * financial service, reported that defence mobiliser Mr Arthur Flemming wrote Mr John L. Collyer, Board Chairman of B. F. Good- rich Co. that he will know the requirements. of the American military for rub- ber until Autumn. Any decision lo dispose of #lockpile sarpluses *will depend on the milltary needs, he explained,
"We feel sure that wa cannot properly anticipate the outcome of the review (or military requirements) and take steps affecting the size of the stockpile how out of a feeling that world crude rubber prices may
be too bigb," Mr Flemming further stated. United Press.
HONGKONG STOCK EXCHANGE
US
Exploiting Bolivian Oil
New York, Aug. 8.
An American oil syndicate with exploration rights to a 970,000-acre concession in Bolivia will spend about $1,750,000 for the purchase of piping from Brazil over the next 17 months, the United Press learned here today.
Preliminary talks between Brazilian pipe interests and officials of Glen McCarthy, Inc., have been under way for several weeks now. contracts have been signed to date, it was said.
However, according to Kelji- kan Commercial
Corp., a New York syndicate which recently purchased a 50 per cent operat ing Interest in the Bollvian con- cession, there is only enough piping on hand to take care of ihe next 30 days of operation.
Some time after that, it was sald. plping will have to be bought
from Brazil.
Aboul $1,500,000 will be spent for casing pipe. and about 250,000 dollars for feeder line pipe and incidental drilling equipment.
Keljikan Commercial, an EDC- port-Import company, heads a syndicate which includes Mr Y. D. Witheroll. President of Sure Oil Co., of Denver,
Half Interest
No
World Cotton
An
Markets
New York, Aug. 8. Cotton traders today, dealt unexpected surprise in a glant-sized Government estimate, watched prices drop back to the lowest level wecks.
crop
two
After dropping as much as 32 points, with the early months going below the average in dicated loan rate of 331⁄2 cents pound, the market steadied but still closed with losses of 4 to 24 points. Opening prices agreed to pul
were off to up 3 points. New their half-Orleans dosed 14 to 17 points
lower.
two
The credit pile-up has been under close security in recent (From Our Correspondent) The syndicate
Government months by
Business done *Mcluls
on the Hong-up $4,100,000 for Un
and economists. The
Hakong Stock Exchange this morn- interest in the Bolivian venture, Government's action ut this time, the
Today, the Ing amounted 10 $2,320,000. appears to reflect the new im Noon quotations and the morn-brothers, Robert, President, and
Keljikan Losses runged up to $1.80 a portance the administration at-
John, Vice-President, envisioned
bale before an urgent rush of taches to the astronomical pro- SHARES BUYERS SELLERS HALES vast drilling programme which liquidation and hedge scliing portions of the consumer and
its course. Technicians business debt,
thought the drop might have
011 ratings to 3 per cent from 3
17
1837
72
BDLY 415%
JERR
1314
Private Loans
According 10 Government per cent. This was the first such
statistics 511 private loans on increase slace April 27, 1053.
The effect of this two-fold ! May 25 of this year brake eredit is to make totalled $89,046,000,000,
on money tighter and credit. more $9,000,000,000 higher than on corresponding date in 1954. It exponsive,
almost
404% The new restraints on credit represents an increase of almost
Armco Steel
Armour
Baldwin-Lim-FETY.
Baltimore & Ohio
Bendix Aviation Corp.
478
Benguet Cunts.
177
Bethlehem Steel
14315
Boeing Airplane,
8014
Borden (The) Co.
0214
Burroughs Add Machine
293
Canadian Pacific R.
Caas (J. I
Co
16
C. I. T Financial Corp.
403%
Cat. Tractor
51
Celanese Corp.
2312
Chile Copper
53
Chrysler Motors
Colgate-Palmolive Co.
542
Commercial Credit
612
Consolidated Edison
31
Continental O of Del.
281
Continental Stre!
Corn Products
Crown Zellerbach
Curtis Wright
Diamond Alkall Dow Chemicals Dupent de Nemours
Eastman Kodak
Paso National Gos
Eric Railroad
مان
reflect essentially
fears held $4,000,000,000 since January 20, by Government economists of this year. and officials that an unrestrained
Demand for credit by consumer credit spree
might
been seriously has
particularly strong, Jeopardise the current high level especially for purchases of autos of economic activity.
and durable goods, Consumer credit buying In June rose by some 765 million to a new high of 24.5 million.
In Advance
Universi
In line with the Government's Meanwhile, the American announced policy of taking re-consumer, according to a 'survey medial action in advance of in-by, the research centre of the 41% stationary
ar deflationary
of Michigan, is still 30% dangora, the Reserve Board's in a ing mood and will prob 3g action was understood as reflect- ably remain so, The annual 101 Ing the administration's
Ta
survey of
thinking 415
of putting only a mid restraint shows that collectively, the cond 32% on credit 2170
the banking sumer feels that prices next year
will be 7714 system.
higher, that he'll be Bankers and economists were better off a year from now, that 331 generally hopeful that the new economic conditions will remain
credit resimints would achieve the hoped for effect.
However, it is emphasised here that should the situation
zai
Family Finance Corp.
General Electric
so
General Foods
£3
General Motors
19132
Gen. Pub, Util.
380
Gillette Safety Razor
Glidden Co.
10%
Goodrich (D. g.) Co.
Goodyear Tire
5071
Heyden Christent
17
Reserve
Homslake Mining Co.
381
Ingersoll-Rand
551
Inland Steel Co.
Interchemical Corp.
410
Int'l Business Machinek
Int'l Harvester ..... International Nickel
Intly Tel & Tel
John-Manville Co. Kansas C. Power & Light
Kennecott Copper
Liggett Moyers Tob. Co.
Lockheed Aircraft
Lewn Incorp.
Lone Star Cement Co. Zoplavills & Nashville R, Lowenstein & Sons,
Mesabi Iron Corp. Minnesota Mining Mission Development Montgomery Ward Motorola Inc.
National Canis Reg. National Dairy Prod.
National Distillera
National Lead
National Steel Corp.
Now York Central Olin Mathieman Olle Elevatoru Owen-Illinois Glass Pacific Gas & Elec, Pace Westor
Pan American Airways
Oil
Paramount Pictures
Parke Davis Co.
Penny J. Co.
Paw. Salt Co.
Philly Morris
Philips Podrolamm Procter & Gamble Co. Pittsburgh Plate (Ines Publicor Industries Pure Oil........ Hadio Corporation Rea Moto vasa
Republie Steel
Reynolds Metal
Shell ou co
Satt Reg. Paper
Sony Vnoun
high. In
this
is
ព all, the consumer thinks as good a time as any to go ahead with buying,
fall to improve, the Government particularly of durable goods operating through the Federal generally, housing, electrical ap
System would not pliances and autes.
hesitate to impose additional Press.
credit curbs to ward off any. In-
17,flationary trend.
38% how
77
under 2015 economic น monthis
B5
120
It is felt here that the Elsen- Administration will be tremendous political and pressure in the coming to maintain the US economy at or near the current Speak levels of activity in view 231% of the approaching presidential sclections in 1950. Failure to
the industrial wheels 20% keep
humming would be tantamount to political suicide at the polls.
The Federal
Acserve Board has Bccess to
methods other grappling with what it might 101 consider an inflationary threat.
07
100
283
4511
38
2110
702
07-2
45
4
United
London Stock Market
London, Aug. 8. Atomic shares boosted the stock market higher today, although late shading drop- ped prices slightly.
News from Geneva Atom Fair spurred demand for such issues Associated Electrical, Bab-
of
as
cock and Wilcox and Tube In- vestment Co. on hopes of export
While it operates as an organi-orders for atomle power plants. sation apart from the Govern-
Oils and motors joined in the ment invariably it reflects the upswing. Professional buyers
68k overall Onancial policies of the in the alls leted Burmah nearly
Indministration In power,
43
121
0044
Alternatives
41%
The FRB cont
0314
46
102
215
open
ing's transactions:
BANICS
I Bank
Fost Asia INSURANCES
Union SHIPPING
Waterbost
DOCKS, ETC.
Dock
Provident
(Old) Wheelock
.. 1000 1815
234
1025 1043
$127.30
28.00
man
the
sleeper but for cushioning effect of the Gov- ernment loan programme.
calls for a new well every 20 35 1020 days. 145
1815
Ton
been the basis of geological 1301010
surveys made in the Los Minos and Agua Salada tracts, the combino McCarthy Keljikan hopes to be producing from 4,000 to 6,000
barrels of oil a day within 17 months. By the 1346 19.70 2500 10.00 end of two years, according to 0.10 100093 Robert Keljikan, the 32 to 45
wolia should be
out barrels per from 10,000 to 13,000
LAND, ETC,
HK Hotel.. 20.30 24.40
2009 0.05
EP
500 20 far, the American firm has
drilled only three wells, 20.43
One 2014 of them has a rated natural gas 20.40 flow of $7,000,000 cubic feet per 20.30 day. Two other wells produced 20.30 crude with combined output of 60 20-10 500 barrels per day.
Go 20.40
20.20
20.10
The Los Minos and Agua 20 20 Salada tracts were said to have 1700 20.30 potential reserves estimated at
20.30
1000 # 50.49 Bbout 2000,000,000 barrels, 74 100 24
United Press.
HC Land
73
100 G
Realty
21% 2.30 3000, 61) 2.30
Rubber. 2.17% 22% 2000 ($ * World Rubber
RUBBER
UTILITIES
Tran
Star Ferry.. 140
Ferry
24
123 307
121
C. Light (0) 23.16;23.30. 1994 67 23.80
1000 Gr 23. 1000 23.10 1370 i 20.20 (24,30
40.
Markets
The indlented Aug. 1 yield at 12,728,000 bales came than 1,000,000 bales
shead what the trade had expected.
more vi
was
of
The promised yleid was seven per cent less than last year, but despite the 14 per cent cut in acreage, declared under. Govern- ment production controls, the indicated yield per cre placed at 367 pounds. This would be 20 pounds more than year and 88 pounds more per s acre than the ten-year
average. With the indicated crop. 12,728,000 bales added to the 11,000,000 balos corryover, statisticians figured there will be enough cotton to meet foreign and demeslic demands for abou two years,
However, traders watching the of the tropical storm "Connie" points out that the
has still стор
a number hazards to clear Ive it finally harvested.
of
is
Trading volume and oven interest in the Exchange, today
No. 2.rubber per Ib. Aur. 135-139
Spot rubber unbaled ... Blanket crepe
NEW YORK.
1231-1241% as follows: 18395-14432 Spot
33.62
Page
P&O B.I. E&A
COMPANIES
PENINSULAR & ORIENTAL S.N. CO.
PASSENGER/FREIGHT SERVICE
Outward *CORFU"
"CANTON"
"CARTHAGE"
"CORFU"
Leaves Londen Blue Itongkong
Called
17th August
ard August
18th September
14 September
Izti: October
17th October
19th November
Via Honihampion, Port Said, Aden, Bambay, Colombo, Penang & Singapore
Leaves Hongkong Bus London
flomowards
27th August
28th September
23rd September
24th October
Mist October
"CORFU" "CANTON" "OARTHAGE" "CORFU"
21st November
18th November 19th December
Via Singapore, Penang, Colombo, Bombay, Aden, Port Bald a London
FREIGHT SERVICE
"BINGAPORE” isadı 13/14th Aug, for S'pore, P. Bwetlan
*SURAT"
ham, Penang, Colombo, Adon, Port Said, Genoa Marseilles, Havre, Lon- don, Antwerp, Hotter. dam de Hamburg
· Ave 29th Aug. · from UIC. via Strails Roads 30th Aug. for Japan With Uberty to call at Belawan before or after Straita Ports and at Bombay if inducemena ofera Tanks available for carriage of Oil in Bulk. Space for refrigerated cargo. Limited Passenger accommodation
BRITISH INDIA S.N. CO., LTD.
due 13th Aug, from Japan
salis 14th Aug.
"BANGOLA"
"SANTHIA"
due 29th Aug,
"WARORA"
salle 20th Aug. due 7th Bept,
for Singapure. Behand Rangoon & Calcutta from Calcutta, Rangoon & Stralis
for Kobe & Yakoḥāma from Japan
Balls 8th Sept. for Singapore, Nangoon
& Chatagong
P. & ́O./B. I. JOINT SERVICE
"OKHLA"
"ORMARA"
"OZARDA"
"ITOLA"
due lith Aug. from Japan
solis 12011 Aug. för Singapore, Colombo,
BOMBAY & Karachi
dus alet Aug. from P. Gulf, Karachi
& Bombay
walls 22nd Aug, for Japan
due 30th Aug. from Karachi & Bombay talls 31st Aug. for Japan
due 7th Sept. from Japan
salis 8th Sept, for Singapore, Madras, Bhavnagar, Karachi. Baarak. Abadan, Khor- ramshahr Kuwait
EASTERN & AUSTRALIAN S.S. CO., LTD..
"NANKIN" - loads 19th Aug. for Bandakan, Rabaul, Brisbane, Sydney, Mel- bourne & Adelaide "EASTERN"
Loads Blu Sept.
for Sandakan, Rabaul. Brisbane, Sydney, Mel- bourne & Adelalde
All vesels have liberty to call at any poris on or off the route as the route ♬ säiling are subject to change or amendment with or without notice.
For full particulars apply to.- MACKINNON, MACKENZIE & CO. OF HONG KONG LTD. Telephone Nos. 27721-4.
EVERETT
EVERETT ORIENT LINE
Furi Regular Freight Refrigerator Passenger Service Loading for Singapore, Penang, Rangoon, Calcutta und Chittagong
"RBBEVERETT “NOREVERETT •
1000 r123.40
500 23.30
1500-67 23.30
New York, Aug. 8. The rubber market cased Oct. heavy liquidation mainly Dec. 1000110 from up-country. There 2500 3 27.30
were: Month
Volume Open interest
30,300
410,900
30.000
730,500
was i May
Mar
11,000
300,200
9,000
193,100
C. Light (N) 16.10 18 20 229 17.00
some short covering towards the July 153 17.80 close and the market was un-of
Dec. 18.10 certain. Futures: 1000 1000 1000 |10.10
23,000
330,300
112,000
1,300
18.500
Total
123,000
No. & rubber per lb. Aug. 14334-1444%
Sept. 144-145
2,121,500 pales
NEW YORK
Electrio
4352
44 340
Det. unquated
200
44.
No. 3
132-133
Prices of futures closed today
卧
No. 4
Macro Telephone
INDUSTRIALS
Cement
Elec,
11
.. 341 3424 200 1500 ..... 3344 332
311%
34.451
101-1105
Oct,
13.04
No. 1 pale prene
16335-1445
Dot.
Rope STORES, ETC.
Dalty
10
301
3130 points lower
327 contracts.
Mar,
Futures today closed 100 to
May
"BRADKYÉRETT"
with sales of
July
22.47
"LENEVERETT"
Oct
Doc.
33012-03 32,99
23 23.40 1500 (3 23.10.
1000 $23.20 will
Prices of futures clored today
“NOREVERETT
Spat
33.41
Oct,
33.00-00
Dec.
Mar.
May
July
Oct. Dec.
Watson
L. Crawford 3034 COITONS
15.70
0
7.00 0.18
5.90
Textiles.** Nanyang BAO MISCELLAYDOUS
Yantsze
123, and British Potroleum 8 91.
Rella-Royce featured the
Allied
motors,
30 الاف 800
NEW ORLEANS
33.11
33.90
33.00-81
Nows that the Government not decide whether to dis- 23.30
of
any of its, huge stock 23.29 pose
rubber until as follows; 2000 23.40 pile of natural
62330 early autumn brought a cover-
23.48
ing movement and a good-sized recovery from the early lows.
Appearance of factory buying at the lower levels also acted to bolster market sentiment. Ship. ment rubber was mostly hold
·abovo a workable basis, al-
LIVERPOOL though around 1,000 tons of Siam Future closinge, American rubber reported moved at middling, in pence per lb, were
nominal. Futures:
The market opened caullously New York Sugar best were quoted at 46% cents as follows:
short sales of last week.
Stare Store shares held
firm
Market
Bept.
Mar.
May
July Sept
40.80
40.00
45.40-50
41.45
42.40
47.45
1. Sell some Government after last weeks severe shake- securities by Its open market ut. But when it became appa:- 40perations and thereby dry up ent no freth slump was immin- funds of member ent, the bears came in to cover Gny reservo
New York, Aug. 8. 034 banks. Mombor banks are re-
World No. 4 sugar futures 10uired to maintain fixed percent-
closed today 2 points lower to
"LONDON uge of deposits in the Federal throughout the day with Great 2 points, higher with sales of
The market opened the week Bi, contracts. 18 Reserve Bank, When the system Universal Stores moving up on 454 sells its securities in the
good demand. Radio and news- Domestle No. 8 suger futures easter with spot down 1% pence No. 1 Ras spot In closed unchanged 10 market, it tends to draw funds it issues rose fractions.
2 points to 41% perice. perial Chemical Industries 415 out of the commercial banks,
and lower
119 Wes quoted at 41% ponce per lb. with zaltz of Dunlop Rubber were individual contracts.
Prices: 2. Sit back and
and not
makc
Settlement house termi. features. additional
Both reserves availabio dur-
markets ruled quiet and September British Government bonds the autumn
umn months. Normally were dull and cased around developments in the raw market
Blondy
traders awaited October the demand for, bank creases during the second half of rates, Foreign bonds dropped on scheduled meeting of the World
oro, on fears of higher interest and
JAIMAT. tho bulcomo of. thepr/June The the year. By refusing to pour prent-taking, while dollar teck Sund 134) more money into
the nation's were generally higher United Sugar Cound on Wednesday.eptember credit stream,
Binclair n
60%
001%
South Porto Fico Sagar
30
Southern National Gns/....
54
Freg
Southern Railway (Cofn.)
Standard Brande.
standard. On or Tik
40
Stampard on of” Ind
50
Standard OH of NÃ
Studenker Packard Corp.
Bits Co.
Texas Co.
104
Tado Waver Asus, Oil
Twenty Century Fox Fim.
Union Carbide data.
Union. Papilio Hallway
100
· United. Airports
74
UB, Gypsum
UA. Le Co
· 1.6. - Rubber.
UB, Bromising.
loans in-
in effect tende Press. to make money scarver atid bankers
hesitant to new commitments,
more
pake
Exchange Rates
3. Raise the rediscount rate. What action Ure Board will Business Wan dorië." in the béal Like I gonerally a carefully inomial tiron marsit this guarded secret. It felt how-
...morning, 'at; the following, rátás:
VB. dollar, (pay% 1)ejectin aver, that the Board will prob- sterling note per 1) 3£bly wait and meet-possibly for Awtralian note. Korra #1EN
tho baletice of the Years/Fiat | Indonesian rupiah (per 1001 affect its new credit brukes have singaporestaurants) Painte
Blam: Losid Eperk160))NEER lind on the robnomy.
Indo-China; PLANTINE:,, (DAR
Futures:
** Chuirnes No. 4 (World). Beptember Oglober
July
Heptember
Noos
October
"United · Pres
London Foreign
Exchange
33.07
33.42
9
24
Arr. Sept.
10 Salle Sept. -- Sept. 28 Sept. 20 - Oct.
.10 - Oct. 11 124 - Oct. --- Oct. Loading for Hobe, Osaka, Nagoya, Yokohama,
"REBEVKANTT""
"DRADEVERETT"!
"LINEVERETTU
Arr. Aug. 1a Balls Aug. 14
***** Aug,
at
Bept. 12
Sept. 1
Sept. 13
Sept. 24 -- Sept. 25 LECTED PASSENGER "ACCOMMODATION,
At the above subject to alteraifen without notice.
EVERETT STAR LINE
FAST REGULAR YAKIGHT REFRIGERATOR `SERVICH, Leading, for Stagapore, Port Swetrankam, Madras, Colombo, Bombay, Karachi & Patalan Gulf Park,
SATAR BETELUKUSES
Arr. Aug. 1 Sails Aug. 14 KITAN ANGZURUS“
*THAI"
Oct/Nov
30.25
Den./7an.
Mar/Apr.
29.03
May/June
20.90
July/Aug.
28.40
SAO PAULO
Best, 0
Future closings, in cruzeiros por kila were as follows:
"STAR ALCYONE"
-- Oct,
13
Oct.
L
- Nov.
Dec.
30.45
MAT
26.12
May
£34,83
In the › United States. the average price of 18/18 middling cotton at 14 designated st imarkets was 38.82 cents. Silos at these centres totalled 17,794 bales.--United Press
New York Foreign Exchange
Canada Brigand-
New York,
-- Sept.
ז
Sept. 19
Oct. 14
Nov 0
Salls, Aug, 10.
Landing for Koko, Omku, Nagoys, Tokohama,
“ATAR ARCTURUS” *THAI"
*STAB ALUKONE"
Art. Aug 1
Bept.4
Sept. 28 Oct. 18
—— Bept, B Sept. 19 - Oct.
#ETAR BETKLÓKUSE“ ---/- Oct, ' * www.Oct.
LIMITED FARENDIM ACCOMMODATION, All the : ahero, cúbject, so altuestion: wiikoni 'motion,
EVERETT STEAMSHIP CORPORATION S/A
porated in the Kapublic of
Building
31205.