THE CHINA MAIL, MONDAY, SEPTEMBER 19, 1955.
TRADE and
COMMERCE SECTION
MR BUTLER REASSURES PUBLIC Trade With Partnership Schemes
N.Y. COTTON
MARKET
REVIEW
By William T. Plunkett
New York, Sept. 18. Cotton prices last week suffered the sharpest set- back in six months as must deliveries dropped to new Hensonal lows.
At Friday's close the list ruled
8 to 70 points-40 cents to $3.50
But Creates Doubts About Committing Government
To A Fixed
Policy
From RONALD BOXALL
London, Sept. 18.
Chancellor R. A. Butler's denial in Istanbul that the British Government was contemplating any early move on the eeding week. It was the widest exchange front produced an immediate and welcomed effect.
bale lower than the pre-
less for any week last March,
since carly
The nearby October contract was the biggest loser, reflecting persistent quidation by traders looking ahead to first notice day on Sept. 26 or selling against purchases
נלו
The lower-priced
new сгор months,
Extreme losses were on paper as the week ended, with the sight improvement attributed
(0
1. Technical situation; 2. A highest August consumption esilmate; 3 Increased producer Impoundings. under
Government the
Joan A Firm situation programme: 4, in the textile markets with mills reporting a well solid pheadt position for the rest of the year; A. Stock market strength.
Major Pressure
Earlier, the major presUTE, apart from October liquidation, came from hedge selling against the Increased movement of the new crop, plus liquidation by old long accounts discouraged by the dull export situation, who decided to turn futures holdings into liquid tunes.
Sterling, which had fallen heavily against other currencies on fears of an imminent "devaluation" began to climb again.
It remains to be seen whether recovery in the exchange rate will be maintained and improved. But if Mr Butler's speech is taken to heart in foreign financial quarters, there is every reason to hope that Britain will have to pay out fewer of her precious hoard of dollars to keep the rate above the prescribed lower limit. And this should seal at least one im- portant leak through which the gold reserves have drained away in recent months.
of Britain's '
rate above 2.70 dollars.
onto
HONGKONG
Communist Nations
STOCK EXCHANGE
Washington, Sept. 18.
Foreign aid chief John
Open New Era In Industry
'London, Sept. 18. More and more British businessmen aro hop-
B. Hollister said today Iting to inaugurate an era of industrial democracy would be "very unwise for by taking their workers into partnership and the West to relax controls breaking down the old barriers between Capital (From Our Correspondent) on strategic trade with Com- and Labour,
Business on the Hongkong
Stock Exchange amounted to $480,000. Noon quotations and the morning's transactions→→→ HHARES BUYERS SELLERS SALES
BANKS
IIK Bank
INSUILANCES
Union
Lombard
SHIPPING
Waterboat
DOCKS, ETC.
ministers meeting.
t
munist nations before the They aim at doing this by large scale profit October Big Four foreign sharing and co-partnership schemes, under which employees are given a share in each year's profits He said it would be a mistake and, in some cases, are actually made shareholders to change present controls on shipments of war-potential in the company for whom they work. goods to Iron Curtain nations .. 1725 1745 10 1748 before the US, British, French and Russian foreign ministers meet on Oct. 27 in Geneva. -.
1010
53
-- 22.00
K. Whart XB1 Jock ........ Provident (0) Wheelock
LAND. ETC.
HK Hotel HK Land
X all...***
ffumphreys Realty
UTILITIES.
75 100 74
10 16.30 0.00 10 000 10
10.00 18.80 3,000 @ 18.70
04 03 000) 04.20 20.30
con-
In this way, It is hoped to or stock has been bought, It convince the man at the factory registered in the employee's bench that his own prosperity name, to be held or disposed of is bound up with that of his like any ordinary shareholding, firm and that he has a personal In a year when the dividend
In
the
on
The foreign ministers ference was ordered by, the stake Its future. If the is, for example, 7% per cent, the recent Geneva "summit" meet-schemes are successful in giving worker will have invested for ing to make further efforts the workers a sense of "belong him an amount equal to 21⁄2 per teward improving world peace. Ing," they may also solve the cent of his salary, Icss the usual Many American diplomatic i perennial problem of strikes and deductions for income tax experts regard tho foreign stoppages which has plagued bonus.
Courtaulds,
multi- "acid Britain's economy since the end ministers meeting as an
millonaire rayon and lextile test" of whether the Soviet of World War II.
Profit-sharing schemes of this concern, under their plans for a Union really wants to get along fort already have a long history co-partnership scheme this year, better with the free world.
in Britain, going back nearly will give employees shares equl- in value to about two 100 years. But they have never valent
weeks' Patitude been practland on a wide scale.
Mr Hollister, new head of the International Co-operation. Ad
1.30 2.33 2,000 2.35 ministration (ICA), was aired at a press conferenco if ho thought it is time to relax"
West's the controls.
140
Tram
...... 24.40 24.70 1,000 @ 24.30 Star Ferry
143 Yaumati Ferry 117 120 475 117 DOC or 110 C. Light (0) 23.40 23.60 200 v 23.40 700 23.00
Spreading
The
Today, the Iden is spreading has
of organised labour towards such schemes invariably been one of
is trade to all branches of the nation's caution. The over-riding lear strategie
economy and firms which have that the more successful they already embarked Oft co are in making the worker feel of the management, the partnership schemes range from part Rolls-Royce, the world famous less strong will be his ties with
trade union. notorcar ploneers, to Rowntree, his
Many trade unionists and one of Britain's leading chocolate
Sto profit-sharing and nership as means of sup-
By Labour's solidarity
Not Before
C. Light (N) 10.2016.70 300 to 18.60 Electric... 43 433
"No, not before the Geneva Macoa Elec, 11.80 £
meeting," he replied. It would Telephono 3414 344 2,252 H 341⁄2 be very unwise to change the
status quo before that"
Mr Hollister also told his first press conference since be 23 060 22.30 coming foreign ald chief;
1. He couldn't possibly" say
INDUSTRIALS
Ctintel
Watson
.... $15
21.03
Rumours concerning sterling those
to meet one aspect it has given rise to who needed il arose in the firm place through future
delayed some misgivings. commitments un impression that the British their purchases. This famillar For the Chancellor said It Government were planning to process known as "ends and was British polloy to maintain
into com- the pound
Jags"--had the effect of throw- the exchange parity of 2.80 plunge
"elther in the dolites to the pound sterling vertibility this summer. Linked Ing more.
exchange markets existing circumstances or when with this was the bellef that foreign the British authoritles allow the
would then could readily be absorbed, sterling is convertible." Many to fluctuate with the result that the British economists feel that by making pound within
then exchange a wider margin
equalisation account this statement the Chancellor ***
bas unnecessarily tied the hands at present 2.78-2.82 dollars and was compelled to buy up sur-
of the British Government, that this in the present state plus pounds, using dollars from
The debate on the relative balance of pay reserves, to keep the exchange merits of a "fixed" or "floating" STONES, ETC. ments would lead to deprecia-
pound As this weakening of the ex- exchange rate once the Other factors leading against tion in the value of sterling. the price structure included the l
change rate was due primarily is made convertible has made at to what Mr Butler called "false least one thing clear: that there larger than expected crop pros- peeta
is much to be said in favour of rather reduced acreage.
impressions"
than any Also the
both sides. Those who have decline in raw sharp
evidence of Later, when Britain's trade actual
crisis in
their mind on exports and uncertain- gap
it not cotton
'widened
of Britain's economic affairs,
yet made up as a result ties about the Government's the recent wave of strikes and
natural that the Chan- this issue will join those who wils future polley on price supports, the gold reserve
disclaimer
advocate of
floating rate in under cellor's came
any
Chancellor's and dis- severe controls production
the regretting to make strain, these
an early rumours Intention posal of the existing large row became more widespread and move
Lo undertaking maintain the convertibility cotton surplus,
what Mr Butler referred to as should induce An immediate existing parity even when the "Inaccurate
pound is convertible. reports" that the change, British Government were plan-
incofor au sterling has now an actual devaluation-¦ been rescued from the effect of "careless talk" the Chancellor's speech to delegates of the annual meeting of the Interna tional Monetary Fund has been welcomed. 'But In at least
on ก
*L
Part of that uncertainty war relieved into in the week by Agriculture Secretary Mrning Bensen's promise to present at
re-convened Congress next year with some specific recommenda- long for calving the problems of deteriorating farm prices.
The Secretary said flexibility in prices will continue to be emphasised." One plan being studied he added, is a plan for Government payments to
s to farmers who lake land out of production, Under some proposals being con- sidered, a farmer would be paid a certain amount, say $10 an acre, to put some of his acrengo into grass instead of cash crops,
United Press,
Sugar Growers Unlucky
Reaction
began to circulate.
Foreign businessmen reacted typically to these rumours and reporis. Those who held sterling hastened to sell it and
Race
On
towards
For New Capital
London Market
From Our Economic Correspondent London, Sept. 18.'
As expected, the recovery in the London stock market has been 'the signal for the start of a race by companies to raise new capital. New issues now on the way to the market will add some £30 million to company coffers.
out
*
The Wrong Way The case for not committing ourselves in advance was mode a few days before the Chancellor's speech by Professor J. E. Meade who lectures on International trade
the London School of Economics,
he
In a
a letter to the Economist wrote: "If we do not have a disinflationary policy (based on straightforward monetary and budgetary restraint) foreigners
37 800 30%
14.40 14.00
L. Crawford
COMTONS Nanyang
MISCELLANEOUS
Amalga-
mated
concerns.
815 0.06 1600 * 8,55 / have to continue foreign aid! tionalisation programafe
2226 2275 15,000 2.28 situation, Rubber Trust 3.225 Yang late Allied
B30
6.65
on
vote
Disraeli,
Under
Sir Anthony Eden's Conserva- tive Government, within a few ping weeks of coming to power last giving the worker the shadow. May, gave its wholehearted Though not the substance, of support to the movement, which industrial ownersing division
the how long the United States will it sees as a promising alterna such schemes,
between exploiter and the Labour Party's no- tive to
ploited does not disappear, they programmes because that "de-
argue. It is merely slurred over. Just as, nearly a century age: There is also the danger, they on the world pends so much
the Conservative Party, under
add, that the workers will be its leader Benjamin. He attaches "great im-
put pacified with the crumbs of co- and to the "are of free extended the
road to full ownership and be diverted from Britain
the Asta" and said it may be the most important part of the world it hopes to lead the way into
pollilcal democracy, so today pressing for higher wages,
Faded Out today. His predecesSOT, Harold E. Stassen, pushed a 'big a new age of Industrial do The success of profit-sharing
mocracy, with aid programme for this area on
profit-sharing and co-ownership depois very and co-partnership as much on how far these fears grounds it is vital that the free world kept it out of Communist portant means of realising its can be shown to be groundless,"
alm of hands.
"properly-owning In the past, many almilar
Jaded out, 3. Mr Hollister is leaving for democracy,"
of the schemes is pecially in the slump-hit years a ten-day trip through the Near The scope East and Europe to learn more varied, ranging from the sim- between the two World Ward, of his agency's activities. He ple sharing of a percentage of when the essential Ingredient also will go to the Far East later annual profits to intricately of all profit-sharing schemes, -probably in October but devised plans for giving workers reasonably high profits, was New York, Sept. 18. details are not known.-United shares in the Company which Wall Street concluiled that Press, credit restrictions will be
NEW YORK
STOCK
MARKET
applied with extreme cau-
will not regard sterling as tion and as a result traders sound currency to be held even
K the Chancellor were to bid up prices all around on protest that he had com- the stock market.
pletely changed his mind and
now belives in an immutably
Not results for the week were
fixed rate of exchange for as follows: sterling. If we do have an
CHILEAN MINERALS
Mr
FOR CHINA
Sales totalled 13,102,207 sharce,
The the most since June 24,
soon
the
effective disinflationary policy then the foreigner will trust sterling whatever the dolly Chancellor
gay about
average was 2,425,852 shares. exchange rate
д
now
modo
the
The
Kortn
Chilean Government week ago to sell
employs them.
Rowntree Plan
schemer have
non-existent.
e#-
*#*
and Co-ownership.
prant- sharing by themhelves cannot ensure industrial prosperity, but
Tho Rowntree Company, if they play their part in en- under their straight forward suring peaceful labour relations, proit-sharing plan, Introduced such schemes will have gone a more than 30 years ago, divides long way towards providing the half the annual not profit. conditions in which Britain's after some deductions among economy might flourish.-China
proportion to Mail Special. carnings.
employees their
sharing
win
de-
BU,102
17/720
224,050
Santiago, Dept, 18. The giant Imperial Chemical U.S. RAW COTTON
in a scheme intro- average was 2,020,000 Oscar Herrera, Minister Industries,
New York, Sept. 18. shares. A week ago the daily of Economy, said today duced last year, combines profit-
Raw cotton exports by co-partnership. that Chile will be able to sell Here, employees receive an an-stination as reported in bales by In effect Prof. Meade was The industrial average closed its excess of natural nitrate nual bonus of one per cent of the New York Cotton Exchunge saying that those who were the week at 483.67, up 9.00 to China, North Korea and their earnings for every one per for 1955-56 peason up to Sept.
cent that the dividend paid on 12 were as follows: urging the Chancellor to make points on the week and a new
Yugoslavia. n statement,
which he
the firm's-ordinary stock exceeds Britain has all-time record high. But the Stock Exchange recession following
Continent The bonus is then Orient maday
five per cent, regarding
The railroad average closed decided a Mr Butler's credit "squeeze" has forced up the rate sterling exchange rate, were
invested in Imperial Chemical Canada Washington, Sept. 18. Secretary for Agriculture which companies must now expect to pay for any subordinating Britain's future at 104.29, up 2.02 points and a nitrate to Ching. Mr Herrera Industries stock at market price Total for season"
freedom of action to do what way new high since Oct. 20, 1929. said today thut China, North and when £25 sterling worth Same period that year
axefuding inter-United FYERS. and Yugoslavia had Mr Ezra Taft Berison today new capital they need.
best for the pound once it was Utilities lost 66 cents to finish took considerable steam out
buy convertible to the im-
presented propositions to the week at 03,70 in their aver-
Important
of quantics reminded of this sentiment. The possibility of a mediate task of halting the They were of mainland sugar growers'
age. The average of the when 96
nitrate. per cent
of the £4 further rise in the bank rate, drain on reserves. hopes the Government might million of 5 per cent deben- though not
alocks used in three averages forgotten, is tcm- He felt that this was
Mr Herrer did not mention closed at 172,88, up 2.18 points. buy some of their crop this turo stock, offered by East pararily dead as a talking point. direly
wrong way
any figures but Chile has some year to rolleve the over. African Power at £101, was Among industrials brewery
the situation. The The week's rise centred on 200,000 tons of surplus nitrate. quota surplus.
left with the underwriters. It is shares were better on news of speculative position against the blue chips but the lowest Mr Herrera said China made
sinca Lime
new higher beer output and paper sterling, #long
be said, WBS
beiter offer than the other two only and the highest priced shares He told a press conference issue falled spectacularly to shares improved on reports of temporary and it could be re- had their innings. that he now believes his Depart gain public support.
countries because she would pay Impending price increases. versed by adopting the right
with dolara, Yugoslavia pro- ment lacks authority to make such
Undismayed, however, P. and Gold shares were neglected policies at home. In the mean-
posed an exchange of nitrate for a purchase except as the O are going ahead with their and even Mr Butler's cautious time the reserves could well
machinery and industrial equip- agent for
International plan to raise £10 million by support of the
South African de- bear tho Co-operation
cost of
ment that Chile buys in other maintaining Administration issue of 5 per cent ekberÍATE:
Coca-Cola International,marketa, (ICA), which handles foreign stock 1975-80 at a price of a mands for a higher gold price the exchange rate. There was no
falled to enliven them.
The Government is studying sense in these circumstances, he highest priced iue listed on the Money is needed to help finance
offers and will make commit big boord, sold at $1,160, a rise the Rubber shares were strong on felt, for Britain Thus far, he Indiesteri the. the building of a new feet of hopes of bumper dividends herself to maintaining per of $180 over the previous sale decision, probably before the end
has not como to the tonkers.
of this month.-United Press," recent rise in the manently a fixed sterling ex-made last April. following Agriculture Department
price of the commodity, while change rate the
in the price of recession
Home First the metal caused copper issues to lose ground.
aid,
ICA
with
any request for sugar to be used Weekend. Dullness
abroad.
Mr Benson recalled, however,
sugar during 1056.
Unsure
+
the
the
The
case
tho
to
to
Highest Price
A
The Bank Of Franco Statement
Paris, Sept. 18,
טים ה
Trane
201,201,301,425
New York & Harlem reached $810, up 100; Mahoning Coal Other companies seeking fresh
for allowing the Railroad $810, up $20; UB Gyp that foreign aid experts carlber
once sum. $310,00 up $23; and this year find calculated they capital have chosen to do so by
After opening somewhat unexchange rate to "float" "rights" issues of ordinary certainly oil shares were mark sterling has been made con-Magma Copper $119.75, up $18.
The Bank of France statement might need 100,000 tons of shares. In this way Engilshed down on news of impending vertible has many influential The lowly Benguet Con- for the week. ended Sept: 8,
Electric are to raise £11.4 mill-cuta in Americaal oil imports supporters-including apparent
Streetly, the refractory and although lower prices atly
solidated Mining led in turnover ads as follows: which Economist ver £2 million and Odeon
in thanks to a volume for the Total gold holding itacif
to be
14,070,000,075 Mr. Benson Way unsure whether
trusted buyers on Thursby losses profes this figure was computed for Rank organisation £24 mil-weekend.
again prodominated before the virtually
agreement Thursday session of more than Total other currencice complete with Prof. Monde,
227,000 shares. Many other low Bight balance abroad
200,000,000,000 the fiscal year 1000, which lion.
Advanc to Babiils started on July 1, or the calendar
Nows.
This, and the fact that past priced issues ran up huge males
306,700,000,000 Ton-Fun EPPILA forthcoming of theso year 1980. But he said that in
Toint bill-discounted 1,187,590,003,107 now issue slowed down the ad
experience has shown that an totals and helped swell the
Current accounts and either case there would still revance of industrial shares after
uncontrolled domestic inflation overall volume for the wook.
deposits
125,160,450,222 main the possibilty that the ICA indweek.
depreciation sight on n would lead to a Up to Thursday's
American Telephone rights Bank note in circula advance calculation might
tion ***** 2.600,021,224,125 be clown the Financial Times Index restricted scale throughout the of stering whatever the Cho were very active with a turn-
-United ProB/ realisedi
cellor tray say, it The failure of the Government of industrial ordinary shares week and City expert in Illy in prox. Meade's view over of more than a million.
put on 8.2 to 199.5..
look for a general market 1m- to relievo the domestle
provement
foreigners
tako Mir unut of least the th
datoral Motors was the out- Government securities mail- quota surplus situation in sugur tained their improvement up to middle
standing performer in the, figh- By then Butler's commitment seriously, of next will be
Prif. Monde,
that this your is delt by Washington Friday when the usual weekend September guld
bellaven
grskio stocks. - It rosa inora than observers to have probable reper- dullness ended a long ruf
the Chancellor of the theas Lasts will inevitably nine poiss on the Week as the for Cubb
of known,
Exchequer
the Governor of lead Britain sooner or later to compare reported record micis sugar-growing areas next year. and 258 on
Tueday
bereet solution of Domestic sugar producers are Mr Butler's speech at the an
their swimal midyear unsers- nual motting of the Inter thent of the sectomie position as bring the demale situation national Monetary Fund had an the Lord Mayor's banquet and under control
atk
over-
Next Month.
Business WOM
The Bank Of England Statement
Lordion, Sept. 18. The Bank of England, stod
the seok traded September 14, 'rends, or followw. Note in cirellation 20 ALK
other rings reaching 225 Od on Musictoyd and will have ich he wild was flint of new and troed for. the year-"]ment for
expected to make oven greater
effort for an increase, of
general aid, metat miros, kad many. Public doma
their quotas if these over-quita encouraging Inadsstupce, While something may be mouw of monetary and budgetary policy strong rots Automalla proven res stocks continued to mount during the improvement in the Unitat 120 Gloveromondan ilma made, and they let up the exchange the balance of the years-United | Kingdom overseas trade poli- | desaing with the 452s muilión rate
none, London
tion In August also helped of maturing serial funding stool. Barvice.
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