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THE CHINA› MAIL,
MONDAY, AUGUST 22, 1955.
TRADE and
COMMERCE SECTION
GRIM STORY OF INFLATION
N.Y. COTTON. British Labour Costs HONGKONG
MARKET
REVIEW
By William T. Plunkott
New York, Aug, 21. Cotton futures pulled in opposite directions last week as the nearby months scored good sized gains while the 1956 deliveries simultaneous- ly weakened,
મુન્ન
At Friday's close the ruled up 20° to oft a2 points.
Independent strength in gear- by October was the dominant truding feature as the weck ended. Shorts became increas ingly uneasy as they watch the supplies of culton available for
inke a strep contract delivery
drop.
"Certiflented glock dwindli
to 24,023 boler for a cut of more thata 30,000 boles since Augus 1. The traders
concluded,
wiquals
lessens the chances for delivery of the low grades oolton which has been in the stock for some time.
With 1110 diminishing chances for tenders the October sharts withdrew or transferred to the later manthr.
Georgia Buying
Colour was given to that
Have Risen 27%
From RONALD BOXALL
London, Aug. 21.
A slab of figures published by the Treasury last week told the grim story of inflation. And a remark attributed to the man who heads one of the most powerful trade union organisations in the land mude it clear that the story has by no means ended.
The figure showed that British labour costs rose 27 per cent between 1948 and 1954. The rise was greatest in distribution (40 per cent) and building and contracting (32 per cent) and the smallest in transport and communications (12 per cent). In other words money incomes are rising much faster than output throughout the entire economy.
Yel Within a few days of alone. What really happened is these figures being published Mr that labour costs in British in- Harry Brotherton, President of dustry have risen 27 per cent (a the three million-strong Con- far greater increase than any of federation of Engineering and, the countries with whom Britnin Shipbuilding Unions-who are competes in foreign trade); prices at this moment pressing claims have risen to meet these higher for "substantial" wage Increuss, costs and the wage-prices spiral coupled with demand
a
bven for has
{ew more given shorter hours and longer holi- days with pay-was hinting at
come.
situation by reports that lend-stil further wage demands ko ing spot Interests sold some 40,- 000 bales out of the certificated stock to Georgia milis for spin-
purposes.
pint
from
No Mention
twists.
[31
Yet there is still no evidence that the
unions have trade
krson of grasped the
this "Bo king as Mr Butler's polley
experience that higher, wages maintains high prices and keeps and salaries must have an in- Nearbys also drew support the cost of living rising." he nationary effect unless they are reports that corporalive reported to have said, "our pay matched by higher production. Interests showed more activity demands will go on at regular Indeed, it Mr Brotherton's state- in the cotton market and in-intervals,"
ment is any guide wage claims dicated they did not intend to
fn the
engineering and ship- hedge cotton at the 34-cent line.
building industries are to be used Left in a state of uncertainty
in the future as a political as to how disposal of the
sur- If the engineers and ship-weapon against the party in plus finally will be handled, builders intend to increase their traders thought the upalios could output in line with any new pay
power. well be that some legislation increase which may be granted Buch Irresponsibility is excep- will be introduced in Congress Mr Brotherton didn't mention It.tional, But even on the most when it reconvenes and that And judging by their past per- charitable Judgment Brkish one step may be in the directionformances it was not surprising, brado unlonisis have been acting of lowered support prices.
in a misguided manner. beerme Engineers The
employed. In mixed
and not altogether nearly every section of British favourable, according to some Industry. Bo they are just as observers. The Government much concerned na other workers weekly summmy sold the crop
in the fact that while wages and salarice in industry generally rose was "in mostly good condition.
by 50 per cent between 1948 and However, rahny weather in the middle and Eastern belt led to 1954, output rose only 20 per increased speculation of a poor harvest In Prcss.
crop pleture
future, United
cont.
are
This shows just how minlending is to relate wages to prices
New York Stock Market Review
By Joseph Michalski
New York, Aug. 21,
For the stock market, the past week was one of the dullest in many months with lagging interest reflected both in price movement and in activity.
Trading averaged a low 1,454,774 shares för a weekly turnover of 7,273,870, smallest since the first week of -1954.
Pricewise, Monday and Tues- lines provided the push. North day saw routines: Wednesday | Americon, and Curtiss-Wright and Thursday modest, rail-stood out on the week witli sparked advances, and Friday gains of a point and 2% pointe narrow irregulurity, brightened respectively. by a late rally.
The net result for the week was an averige loss of 3.44 to 45.57 for Industrials, a gain of 9.90 to 154.99 for rails, a dip of 0.00 to 65.34 for utilities and a
Industrials
Rather More
Their frequent wage claims are based first and foremost on the desire to maintain their standard of living in face of constantly rising prices. Prudence rather than good compels them to make each claim
cover rather
more than the preceding rise in prices.
ARGENTINA'S
WHEAT
BARGAIN
Buenos Aires, Aug. 21, Argentina's wheat bargaining position received quile & boost that night with the signing of
STOCK EXCHANGE
(From Our Correspondent)
Business done on the Hong-
Exchange koug Steck
this marning amounted to $280,000. Noon quotations and the morning's transactions:
SHARES BUYERS GELLERS BALES
BANKS
MK Bank .. 1730 1730 # 1733
INSURANCES
Union Luttivard Underwriters
DOCKS, ETC.
Dock
1000
06 37
10.30
20.30
Provident (0) 13.70 13.90
Wheelock .. 11.70 0.85
LAND, ETC.
ilk Hotel
HK Land
RUBBER
5 17,40
18:30 71000 72%
12
A. Hubber 2:171 2.20 5000 or 2.30
UTILITIES
3.10 2000 p 1.65 27,000 3,00
Tram... 24,40 24.80
Star Ferry 110 120
C. Light (0) 22.40 22.00 740 @ 226
C. LIJM IN) 174 17.00
41 4104 200 or 413 300 60 412 Macap Elec. 11% 11.70 300 / 11.10 Telephone .. 32 INDUSTRIALS
Cement
a four-year accord with Italy STORES, ETC. for the sale of 500,000 100s of wheat a year, with respect to the commencement of negotia- tons with special trade mission from Brazil.
As 19 Usual with such negotiations, everything I con- ducted in the greatest secrecy. and understandably,
neither side ever ups its hand, save to release
tripl 50me
balloon. Moreover, although the misalon has been here
Week the first meeting was only held yester- day. It began with a review of the working of the current trade agreement. Actual rev sien of the lists and prices is not really due until December next.
Under this agreement, Brazil
will take up 1,200,000 tons of wheat always providing Argen- na had marketable surplus of 3,000,000 tons.
Leporis were
US-JAPAN
|LONDON INVESTORS' QUANDARY
TUNA TALKS THEY KNOW NOT
Washington, Aug. 21. Representatives of the Japancac and Amerlezn una Industries may meat In San Diego on Aur. 28,
discuss ways of in creasing tuna consump tion.
to
Government officials mid final details on the meet. ing would have fo come from inditstry sources of
West the
Const.
The Government will not have representatives At the meeting.
The proposed Americans Japanese talks grew out of leiter written at the White
Ben. House to Thomas 11. Kuchel, pre- sidential
Jack nasia fará Mariin took Bola of Ben. Kuchels complaint thai the there was a "crisis" in tuna, laklastry. Mr Martin said that the State Depart ment was prepared to sug- rest to Japan the pos- Bibility of a joint C
to Increase
tuna
palga
consumption. United Pres.
GERMAN CAPITAL MARKET RECOVERY
WHAT TO DO
From Our Own Correspondent
London, Aug. 21.
Investors are suffering from an overdose of facts and figures. A week or two ago they were certain that Britain was in for a nice long spell of mild inflation-the sort of situation in which money profits flourish. Now, they are not so sure. descended on the
The uncertainty that London stock markets last week, bringing the daily_number of "bargains" down from around 12,000 to 8,000, began on Monday when the Cabinet met to discuss the economic situation and deepened a day or two later when the Treasury revealed that there had been a much sharper increase than many people suspected in industry labour costs (due to money incomes rising faster than output).
no
This and a lot of other in- Glit-edged stocks fared formation that has recently beller. War Loan 3% per cent come to hand about the current was down 27s 6d on the week
silvation economic
has left to £76 17s Glis lowest for investors in serious doubt. The three years and other question they have been asking were also lower. themselves Is whether have
not underestimated the After losing ground on amount of Inflation that is In of the preceding three days the the air and if so how long it Financial Times Index of Gov- will be before Chaneellör Bütter | ernment securities touched the gets really tough.
they
stocks
cach
year's "low" on Thursday, when it stood at 90.00-offly a frac- tion of a point higher than the all-time low reached 1952.
in June
Lacking the answer to both parts of this question they have decided that the safest thing to Bonn, Aug. 21.
do 1s lo wait and sec. No Striking evidence of the serious selling developed tast Oil shares experitused much rapid recovery of the West week, but with very few buyers the same sort of conditions
shares, but mining 33 33% 100 nr 337 Gorman capital market is about even the small amount of industrial
was issues had things rather better selling that took place given in a report just issued sufficient to bring prices down. by the Rheinmain Bank.,
Dalry... 28.00 22.90 Watson
14.00 I. Crawford 37 3734 COTTONS
Teile Corp. B.30 MISCELLANEOUS
Yangtze
Allied
7.95 8.03 6.05
JO A HC.CO
-US-TEXTILE
MARKETS
a
Dull Throughout
ES
at least in the carly part of the week.
Coppers advanced
on the record high price of the West German companies have
metal and renewed investment issued or announced the im-
Industrial ordinary shares demand in the market short of pending issue of shares worth were dull throughout the week stock, while South African gold 1,100 million marks (about £51 and the Financial Times Index shares were helped by Con- million) during the first seven which had fallen from 209.2 totinental buying. months this year, according to 205.7 on the previous Friday on nomoraised that copper shares By Friday,
report.
the news that the Cabinet was
the market was
nearby
Metal
Of this sum, 95 million marks to receive a report on the eased despite the fact that the (about £8,000,000) were issued economic situation, fell further commodity reached yet another
to 201.3 by last Thursday's prak on the In the form of bonus shares.
Exchange. The remainder was succi the open market.
ONLY 400 M.
on
During the whole of 1934 the capital market was able to take up only 400 million marks (about £38,000,000) worth
new issues.
As recently as two years ago,
New York, Aug. 21. Cotton goods traders this past week seemed to be
common | companies found it almost im- approaching agreement that prices are possible to raise money on the market owing to lack of con- going higher.
Adence among investors, high Just before the mission arrived That viewpoint strengthened taxation of shares earnings and competition of public released to the when a number of mills raised the foreign press that Brazit might wages and prepared for addi-authorities, who offered high buy US
when the new strales of interest or generous tax cruzeiros. Some 500,000 tons an hour minimum wage law exemptions.
effective on Märch 1, Industrial Investment in the years since the currency reform of 1048 was mainly financed Optimists banking on a broad scale revival of buying after the from companies reserves and from public sources. These in- Labour Day holiday thought the cluded Marshal Aid and govern- tightening of credit regulations
ment finance.--Reules.
surplus wicht
"For 1tional Boosti
But it is not enough to have motiva. They must also have the power to push their claims through in the face of opposition from employers. And they have done this to in the free of brin- full employment-a term' which was mentioned for a valuo. of | brcomes describen the situation in which 9535,000,000.-Unfied Preto, there are three vacancies for every job hunter.
This process of wages pursuing
prices while output lags behind does no good to the individuals concerned. On the contrary It does them and the country, im mense harm.
Singapore
For the higher Stock Market
wages simply cause a new riso in labour costs which must bo
offset by further price increpdes. Thus the stage is set for the next act in the farce.
Tricky Situation
ever
Singapore, Aug. 22. Brokers today quoted the fol- lowing stock prices:
cum, pret
30/
Opening Daty, Lintonst Rubber Co.
Lid.
$1.00 Petroleum British Borneo The deliberate polley of main-
Syndicato
40/ taining full employment had Consolidated Tin Smeltors
Ord. Among Industrials, several therefore led Britain into one of Fraser & Neave Ltd, Ord
iricky most individual performances were the
economie Fraser & Neave Ltd. is newsworthy.
faced Du Pont dropped situations it has sharply following its 20-cent But that does not mean that the Hongkong & Shanghai Batik-
ing Corp., bus falled. There Hongkong Tin Ltd. dividend increase on Monday polley Rolf loss of 0.43 to 163.02 for the which disappointed the siree days who would care to support
are many people around
Kempas d. general market average. There
was off 0%
on the week.
the
Malayan Brewerian were 1,402
traded Underwood responded vigorous the issues
theory
the economy New Berandah Rubber Lid. 686 closed lower, 038 finlabo ly to a dividend increase and cannot thrive without a "pool of
But there
Ltd. the
are Pulling Tin Li week high and 170 held closed the week 1% higher,
unemployed."
Rames Hotel**** who bellove that even unchanged.
Foremost dairies, listed last many
Blogapore Cold Storage virtually non-existent unemploy- South British Insurance Co. Thus, the market appears week, picked up 3 points ment la not meeranrity Inconals- 1.td. paired for a movo either way, over its close on the wtent with a stable economy if Straits Trading with Street concensus for a re-counter market last Friday.
trade only the sumption of the advance after
further
period selective trading,
that
$1.07
$0.00
1015
These
$7/04
Lunas Rubber Estates Ltd.
$1.70
$2.22
93.35
$1.00
$4.00
$2,30
$1,07
$20.00
unlons would Siraits Streamship
1050.
would react favourably for "soft goods" as consumers and a modification in the retent extra-liberal terms allowed for purchases of automobiles, homes, televisions and other hard goods.
of
The size of the colton erop and the general ebundance raw material supplies was ob
·étured to a degree by the high premium weavers and spin- ners continue to pay for want- ed types of spot cotton.
Garment manufacturers were reported gradually building up Heavy stocks of fabrics to be made into garments before the March 1 date, in order to get under the labour price wire,
AMERICAN
COTTON
EXPORTS
Washington. Aug, 21. Japan, Britain and Franer were the biggest customers for American cotton during the
11 months ending July 1, the of Agriculture re- Department ported today.
During a period when United States
cotton exports dropped four certt per
compared to the men predicted previous year, official figures
Heavy Scramble
Some textlic
a heavy scramble for goods showed that only shipments to during
In Spain, Oot./Nov/Dec.
Britain, Yugoslavia,
60 anticipation Of this event, Canada and Korea incressed
0.00 Signs of a trend that way have substantia 656,000 bales; Bri-
$22.74
Wearne Bros.
China Mall Special.
American
Telephone Jost count it as a blessing to be tm- Unlied Engineers Ord.....$10.00 of irregular 2 points as details of its 12-year joyed and not as a weapon to bo
3% per cent convertible deben- ture issue were released and used whenever their aspirations
Features
when issued trading begun ier
ro thwarted.
Features this past week in the rights. They opened ol cluded a brief whirl for rails, Friday at 3 and rose to 3% on right to improve their standard Trade unionists have every long neglected in the market's volume of 473,800,
of living. But they are not Industrials. preoccupation with
The downtures also traded going about 1 in the right way A furry of
Interest lifted the when
Jasued, tecounted earriors a point or so near the 3,092,000 of bond volume on is higher production. Prices will The key to better living standard clore on Wednesday and they hold
Friday
Improved from $124% then remain stable and higher And "the wo firm through the rest of week although
$120. their
per- Steels were mostly tower with pay will buy more goods formance was impressive meat decimes ranging close to 2 points.
Jap Textile Threat
been apparent in the grey goods Japan took
cket Splurger of buying lain and Franco each 344,000; have developed in print cloir Canto 300,000 al 160,000 yam fabrice, sheetings, osna- Spain, 100.000; Koren, 150.000; burgs, tobacco cloth, denims, Formosa, 120,000, chrisd· and combed twills and US exports picked up 22 per cent in June, reaching à level of other types of goods.
| 203,000 bales. But that was 36 Informed · róurdes declared per cent below the same month large chain stores, "mail order, last, year.
Between August 1964 end department store organisations July 1955, the total was 3,523,000
been wholemlers have
bales, compared to 3,677,000 quietly, but perslatently bales for the corresponding
to bu Is it too much to expect Mr stituto, Inc. (ACMI) said today, striving ly by its contrast with the rest Inland and Crucible countered Brotherton and
bulld up inventories, period the previous year. of a very drair market. Union with a 4 pointe guin
this colleaguesit la ironic that the Japanese
the throat in the trade union movement will renilso
of their While pricing propecia were United Press, Pacifle started with a four-point gain on the weekt,
with General Motors paring a tell
Motors were fractionally lower yet grasp this simple truth and growing textile exports to the uppermost, traders also kept a Uulition
their followers about 17 US textile industry wille "our watchful eye on prospects for were steady
and wide lom Into Friday and closing London Express. Service. without feature except for down only as the week. American Natural Gas. which
•
Metals
was lifted when its largest autis sidiary received the go-ahead Non-ferrous metals featured on a rate increase. It inished gains in aluminium shares and a up nearly 2-points.
4% rise in International Nikol
Now York, Aug 21. The President of the Ameri-and can Cotton Manufacturers in
!
10 own State Department fails to
increased competition when the U.S.
reedgránu itā
RAW COTTON
EXPORTS
Mr. A. K. Winget,.-.
:
new," and lowered · fariff "DEL Japanese goods becomes effective doknow less than a month, Henét,
close.
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"NOREVERKTT""
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Art. Sept. 12
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Art. Sept. 4
Salls Sept.
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Nov 2 -- Sept. LIMITED PASSENGER ACCOMMODATION All the above subject to biteration without notice,
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MESSAGERIES
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FAST: PASSENGER/FREIGHT:SERVICE
Exchange Rates Jars the
and son of pansed tapetile manu'stination en ported in balen by HLAOS"
10% wore a "follows:
New York, Aug. 21. Nowe that a 12-man telego- Raw cotton.exports by de- Copper stocks continued in well as the copper gains.
toxillet leaders Parodiklanmiris | Caoturers will journey to the US the, New York Cotton Exchange Business was done in the igast Inalifuting voluntary controla'on next month to convince Armori- rir, the, 1905-50 season; to Aug. the strong outlook demand on
Oils were mostly." lower with
unomică”, excringe inKkkat - for the industry but realising Jersey Standard and standard warning an UNE SOLOW THIS
Kir exports of textile browia i can-competitore::thor: parod renewed buying after
the United Simuy buerfiantion several months out of the spot of California onch of 33. V dollar (per) Hight, Asurances of continued Activity centred in Rohodesian Awirlian, note Xb heavy defence
Selected That with a flangeet Endoneda TUDINION appropriations and increasing interest in new of 137,000 shares. It closed at Simon Klonin (100) equipment on the part of air-0% Up United Press,
starting hotel, (per #1)
plan and could)
in any detall, UMNO
salling Sept. 10th
8th.