TRADE
THE CHINA MAIL,
MONDAY, OCTOBER, 10, 1955.
and
COMMERCE
SECTION
Britain's Position Not Desperate US, EXPORT
London Silver Price Soars
Lendon, Oct. 1. The sterling priet of silver reached It has heat Teak in 35 years in Landen last week when I touched B014 prher a fine guner,
the 1920 which fat-
World lnrd
War I the prier renched 30 pence per fine onbee.
The 5.oncton market price is a reflection of the soaring US price where of one
end of last werk it wan
New York quo'r fu
D21% crnks per thie afine", While moving in sympathy with New York, the Lon- dun price ucluations beve bern
moderate. more
the Russia has sold and Con inent has shown mure Interest, doubt owlog
to the interruption of sup- ntin from the Unked
States United Press,
WEEKLY
BUT CREDIT SQUEEZE NEW YORK
WILL CONTINUE
(OUR OWN CORRESPONDENT)
London, Oct. 9.
Twice last week, at Mansion House and at the Bourne- mouth Conservative Party conference, Chancellor Butler took pains to warn Britain that his credit squeeze will continue.
He implied a continued curtailment of overdrafts, cuts expenditure, discouragement of high dividend distributions as well as excessive wage claims.
in official
He also indicated a drive to channel more goods from home to export markets to earn more foreign currency to pay
for imports and increase gold reserves.
It was
More
than
Annee
U.S. TEXTILE possible to find buyers. This there families a rat in need
MARKET
Behind
labour.
COTTON
MARKET
REVIEW
By Elmer Walzer
New York, Ott. 9. Cetton prices remained on the defensive for the lifth week in a row, suffering lesses up tó a 81 a bale tlie- fore the market regained a measure of stability.
At Friday's close the list ruled 10 to 184 polhts-50 cents to 好 bale-lower than the $0.20 preceding week.
DECLINE
Washington, Ook, 0. The government report- ed today tiiat exports of merchandizedtélined August to á lofál of $1,- 227,400,000 -- the second lowest month of the year.
August total
WAS About six per cent above August, 1954, but 20 per dont below inst year's Average and also below the
1955, Dzure, Census Bureau said.
tho
Tolal merchandise exporta for the Brot eight months andunted to $10,141,109,- 000, compared with $10,148,000,000 for the January to August period of 1956.United Press.
HONGKONG STOCK EXCHANGE
LONDON MARKETS
Heavy Industrial Stock Selling
(OUR OWN CORRESPONDENT)
London, Oct. 9. The rising market in government stock and foreign bonds last week contrasted with heavy selling of industrials which reached its peak on Friday when investors and speculators dumped shares wholesale. With no buyers of industrials, prices tumbled between three shillings and five shillings and sixpence on the one day.
any money
Behind the slide was the The only consolation given by belated recognition that Mr brokers to the harried bulls was that investors who were prepared Butler's big squeeze will
to see the fluctuations through halt the rising trend of should soon have chance to pick dividends and perhaps up stock cheap-it Mr Butler's
has left squeezo lower them in some cases. |
around to buy. So shares which have been forced up to stand on Д three per cent yield basis on hopes of forthcoming increased dividends are now Bus is done on the long-sliding as operators realise king Stick Excing tha mern that they have to wait for ing Emounted to $330,000, Noon quotations and the moming's a long time before the easy transactions: more
money days returns.
these claims lles the clear that goods Again, with nearly a quarter | " the engineering, elec- Hett, this puts then living in pressure of high living costs and trical, textile and chemical-bull tunell bruses, rent the workers belief that profits subsidies are likely t, he severely are to big that ludustry can meet Trades, for instance, would ị em.
Any demand whelsorvce, Ea- With Increasing fuvoumble have to compete with ex-
couraging them also to demand crop advices acting to magnify million mere pay is the prevent state of the existing glant-sized surplus, ports from the United! Families are receiving a yearly over-tuli employment f which ilic market kept running Into a States, Germany and Japan. average nid of £15 touring employers DEC competing for heavlet volume of hedge selling
have 78 000,000 which helps swell
and liquidation While trade British prices would to be pared as low As the present inf:tion. Yet many
buyers, anticipating still lower Yet if tabour's demands were sprites. operated with 01 Skate henlis. The systen
even porti My met, without a caution. would result in a came into
rise in torn
ree after the warmorinsurate
Jo output. I Britain would And it herd drop of profits by manufactor inta'n rents on new council
houses
the bent competitors in the export Ft Epproximately tures which would all hou
level as on older
ones, market. hep in the battle against the problem is to find some
And vic us inflation at home.
Gaten, Mr Butler's statements were
Civil Defence Is ako kely to d or in the strengthening of
exchange be cut heavily, in keeping with ment thek, 11 the rise in British Lovernment ballef that no world and finished, navigated on Rvmment Locks, and weaken-wer is Ekely within 10 years at which were least. This means that certain even keel, weathering of industrials
high levels plans, including the construction uncertainties stirred up by posted
of a number of deep air-raid drew us protection against the hydrogen bomb will be However, what the Chancellor | shotved indefinitely. cannot reveal until after parla
Recimoment will be scrutinis- on October 25 are Lent meets
By William T. Plunkett
New York, Oct. S. The cotton cloth markets
this past week, hoth grey
an
teng in
foreign
to record
the stock market girationsst summer due to easy profits
and the steep plunge in raw cotton prices.
a
nude within the country.
new system where ald is granted nccording to the need.
road. railway and programmes will be however. Chancellor view in that emcient
While converters, Armen! manufaturers the sohie pleté xuct measure he proposes ed end a possible cut made in
1 Introduce to keep sterling the two-year national service. goods buyers were prone to Ko fim, Irerea-e gold reserves and ;
The new buyers, irudie Britain pay her way, little blow A Initl
viectricity cxécutive viewet pause in demend as icmporary One thing is certain though, spred, Their
was benced! The fact that parliament is Butler's confidence quite
being recalled prematurely to ap- a bit as they looked over their bilg backlog. Vetern prove immediate action by the observers estimated 90er coat Chancellor, strongly hints that of the fourth quarter pisaction Bam's pesilon cannot be sa has been curmarket fer een-very desperate. sumers and about 65 to 70 joy cent of the first quister output Sheetings, usnburghs, drills, twills, brondelolls, Kans and other fabrles also showed a prices bars.
nrc
expected
Industries, offlees and au-
Spiners shared the uptimistic view held by the majority of weaver The sales yath market ruled "a
after the C quiv coton muket rumped on Mon-
the clay. but
Ditect was HOUSING CUT The heavy orders momentary.
thorities.
Butler
'The ment
that would help start a circle at home of in- high prices, high wrges eventually umemploy- just what Chancellor is trying to avoid,
GERMAN
TARIFF
REFORM
West has put a tarli
מרוrefo
nenal economy demands AI adequate transport network and bill before the Upper House, thus implementing two decisions power supplies.
of the Co-ordination Committee of the Council of Ministers of the European Coal and Steel
CIVIL SERVICE CUTS
On Monday, prices broke the allowance dally limit of 200 pols-$10 à balönd pre- ions, the widest slump suffered for ahy session in more then ve tors. The drop swept all positions to seasonal lows.
PRIVATE ESTIMATES
(From Our Correspondent)
SHARES BUYERS SELLERS SALES
BANKS
3K 1nnak KAMA MNIP INSURANCEA
Union ...
...
Underwilers DOCKS, ETC.
h. Sy bud
Dock..
Provident (0) 1370
Wheelock...70 0.00
Even the bluest of blue chips Pained in the fall as operators re- 1720 Bected that profit margins would be squeezed as more goods were forced into the export markela by the Chancellor's inoney policy.
173
Promotion
Of Asian
Products
New York, Oct. 9. A new American company has been formed to pro- mote the sale here of quali- consumer goods from future ty
For investor were valuing them in terms of the present, 20.40 19.20 and not problematical
yields.
Against this, govern- fala, it was announced here
1730
234
DES
2 130
10
24-73
29.0 50a
230
LAND, ETC.
Kote
18.40 18.70
IIK Land
121
33 108
373
ZU 36
ment stocks have been returning today. ito favour and the pound is be- coming firmer as home investors, and also
Mr
17 37.75
Bui y běla
2,30
1.64
2 13321.975
72 6 193
1000 41.93
The chief upselling influence was the issuance of a private estimate for 14,240,000 bales. Placed alongside of the Sep ember official figure for
Really 12.873 000 bales, the figure RUBBER looked astounding, traders said, A. Rubber
Austin T. Graves, pre- the new company,
realised stdant of foreigners,
that the Chancellor is determined sed that initially the company
to strengthen sterling and restore
a favourable, balance of trade.
three and a Half
War Loan per cent elased et 78 and one 'ghth, a rise of one-and-b-half on the week.. Two-and-a-hal
The government third стор
10000 1.99 estimate of the season will be UTILITIES
Tinm
2414 24 60 34 24.70 the government report which
90 24.00 per cent Consols 15se to 57, ciso will bear out the private crop Y'anti Ferry 1110
la gain of one-and-a-hair points. Indications. Some quarters noted C. Light (0) 23 23.20 1000 g 23
B002 10 C. Light (N) 17.84
hell
Bonp, Oct, Germin Cover-rens, with dang de excessive damage to open cot- fon over wide sections of the activity. But other observers ac- plus increased boil weevil loved any
from real damage those caused happened after the first of the month and would not be likely to show up in the the pending report.
Nevertheless, the Chancellor's
The Civil Service may be cut, Community. to go ach beyond the conventional re-
thousand more There are two
The
stipulates bill
that u year ogo, 0: uetient bank overdrafts and officials than
the Imports of crude iron contin- Bezral refusal to grant credits 250,000 more than before
One survey noted that while ing only traces of vanadium and 1. "blow
the froth." Away
war-an Increase of 70 per cent
1938 While he has alreadyppealed over the
figure.
illenium from countries out-cotton is being grown this year and
that To all guvernment chiefs to save observers conside: many eculd be side the Community should be under rigid aereage allotments.
quite possiblo excluded from the one per cent it is in their ministries, he is likely sacked and absorbed into in-
is being to make concrete cuts in spend-dustry to help the export trade, duty on vanadium crude iron, considerable amount
The ing by nationalised
low tariffs only to be grown on any "undisclosed and
unreported acreage," güvernment
Purchase tax may be increased | applle bie to crude iron with
one- for reimpesed on a range of goods vanadium content from
which could be exported.
half to one per cent and a titanium content from 0.3 to one The belief is, meantime, that
per cent, Where the contents of If Mr Butler and the government booked through the fourth Fer one, the official housing ke strong action in, all these these two metals are lower the duty is to be 10 per cent. For quarier have put milis in a com- programme will be slashed, Post spheres to combat inflation and
current import quotes
it is to be fortable parition, so they dit war stratage of houses is lessen-beat exports, foreign confidence six per cent. not
with high eamings will quickly alurting coning, and y
revive in sterling sequence" likely to result from throughout the counity, there is and the government's capacity the wide cution price swings.— | ample scope for more privale to melnbin its strength. United Press.
Then reserves can be' rebuilt da foreigners see that there is no lager any danger of devalua- tion. For scfety they should
see
----
Funding.
Our Weekly Market Review
Further Falls On Wall Street
New York, Oct. 9.
at least three or four times' their present level of £837,000,000 their lowest since May 1953.
Weakness at Liverpool added momentum to the domestic price While the big American slide.
were
facto", crop estimates
overseas was ad- sentiment ditionally upset by President re- ports about a possible US raw The bill also excludes elec-cotton exports subsidy, and fears trle rails fitted with a conductor that a Soviet-Egyptian arms deal of non-ferrous metal from the could involve cotton which might ECSC joint market. The duty be put on the competitive world on such ralls is to be 18 per cent market--United Prega,
country of regardless of the origin.
The West German Govern- ment states that these changes are without practical importance for West Germany because there The likely improvement in are virtually no imports of crude sterling was already becoming Iron with a small vanadium and apparent foreigners after the tianfum content, while domes- Chancellor's Istanbul speech on the production of electric rails September 14, reaffirming "nu with non-ferrous conductors is devaluation."
adequate for West Germany's needs. Chiha Mall Speciál.
Stock prices declined sharply again last week soled sterling was not over-
and they finished at about their lowest point.
Trading followed virtually the formed in a normal fashion after same pattern as the previous a wide break. There was a week in the Monday session.rally followed by a secondary However the drop was much rete.lon Which tested the smoller end the volume was previous lows. down sharply.
It was reiterated by Mr Cobbold, Governor of the Bonk of England, last week, when ho
valued but undervalued, which should
Britáln give
safely margin ff her excltange rate. SMALL SURPLUS
Paris, Out. D, The Bank of France state- And this was assocized with ment for the week ended Sep!. Mr Butler's announcement that 29, reads as follows: Briteln had, for the first half of
Singapore Stock Market
Singapore, Oct. 10. Brokers today quoted following stock prices:
the
Opening
$1.03 43/30
10 1600 17.95 In foreign bonds, Japanese 41 1793aspented 1930 gained two and a 2004 half points to 184.
01 €215
قياء
INSURANCE WEAK
will
concentrate on the pro- ducts of Japan.
The Arin whit have its offices in New York and Tokyo.
Immediate objective of prol durts of Asia, Inc is to de-
products suited velop now
to
production in Japan, Mr Graves
said. The firm will also adapt existing products to make them suitable for the United States market and seck
new markets for quality goods in current Use, In Japan, but which are Uttle
Banks falled to follow the gilt-known abroad. 37.75 edged loan birt did not slide 17.49 with Industrials. Insurance
Flectric
Mechi
..... $22
Elec. Telephy RE
43
11.90
34.
H
500
34.15
BUU - 33
INDUSTRIALS
Cenini Хорс STORES, ETC.
Dairy COTTONS
30 1500 17.00 500
20.00
Textile Corp 0.05 6.70 1000 @ B
GOU003 3940 10 2000 og 8.10
Nanyang MISCELLANEOUS
VIDIO Yorgiaze Allied
3.20
23.30
shares finished weak in line with industrials.
Variety
Amongst the worst sufferers The company will provide for a variety of were recent favourites including distribution
products "atomic" shares, oils and coppers mtxt and speciality stores.
American depart-
Associated Electric, with a 1000 7.93 ¡arge stake in Britain's atomic 5.70
Australian
Loan In
Canada
0.
Montreal, Oct. Australian Treasurer Slr Arthur Fadden 19 making plan to dost $15,000,000 government bonds in Canada to help AhanCE a programme of capital development how In progress in his country,
Sir Arthur met with Montreal déalers yesterday Investment at the Motitreal Stock Extlistigo to provide them with back- ground information on the early offering in Chhadh of 'd $15,000,- 000 issue of 4 per cent, 15 year Corrimonwealih of Australia
bunds,
42 Per Cont...
The Bank Of France Datu Lintang Rubber Co:
Statement
Crrolidated Tin Smeller:
Ord,
Lic. British Boraco Petroleum
Syndicate
28/k
Fraces & Nenve Ltd. Ord.
$1.72
Fraser & Neavo Ltd.
7% cum, pref
$0.30
Hoorkeur & Shanghai Batik-
Ing Corp.fi
2010
Hongkong Tin Ltd.
Kempas Ltd.
$1.5
Francs Labas Rubber Extates Lit, 201,201,591,420 | Malayan Breweries ....
New Berandah Rubber 15,340,211,818 Lta.
Poining : Lid. ... 200,000,000,000 Ruffles Hotel
Bingapore Cold_Blorage 117,300,000,000 Seuil British Insurance to
Mood, Gundy & Co, Ltd will hend the syndicate of investment dealers which will offer the
stic
*13.00*
$1.804
$4.40
$2.53
$1.05
Lt. 1,091,074,500,713 Stral Trading
Straits Stenmaito 2,097,030,400,258 | United Engineers did.
$50.00
$24.80
$13.75
0.20
Weard Bros.
$1,07
130.200,600.224
ed-China Mall Special.
currencies
In EPU
Many feel the tests have hot the year anyway, a smell surplus Tetal gold holding .. The lower volume was scen bean sufficiently strong to give
Tatal other as the only saving grace for the vicar intention of future current balance of payments. market. Delly average trading Irteds. Some see a possibility of
Moreover, the £20,000,000 Sight balance abroad. fell 2 2,102,523 shures, cgainst more selling. The major point drop in gold resorves for that 4,358,602 shores in the previous in favour of the market during period was not entirely Britain's Advance to Stabilize-
this wook was its dullness. in fault, it eppanted. Part was due Total bills dis- Thursday's BUBBIOT; the skies to Australia's spending spree;
wecki
At the close of the week the were the lightest since August part to foreign speculators who industriel average was down to (22.
Its August 22, level of 454.41, oif
12.21 points on the week. The No kiuup was spåred in the
week, there appeared to be re-
| had batikèd im davaluation.
Mr Butler's other news--thai
week before it lost 20.83 points. Redline althought Thte in the there was a £40,000,000 drop.in sistance developing In, soffie gold reserves in September, was mont that it was virtually adi
Rails Lower
tion Fund
counted Bank nata in
tion Current accounts
deposits
*United PrI.
departments of the market, at least, qualified by his state- The Bank Of England
Rallford shares fell to their lowest point since April 4 at included the aircraris, mercan-month...
The groups meeting support during the first half of the 181.00, of 4.08 points on holes and electronic. weck. In the previous week the group fell by 0.23 poin. Wall Street exports, sald ing appreciates the bl
Utilities lost do ecris on the market had been hurt severely looming before him which may
The Chancellor, however, fully problem
Statement
London, det. 9.
U.S. COTTON EXPORTS
at the expected price of 300. providing a yield of 4 per eht.
The programme drks first direct floatation of foreign securities on the Carintha mara ket,
Proceeds of the issue will be used to help finance power pfo- jeels and transport and port
facilities.
Bir Arthur sold that the rapid growth of Australià made it uocessary for thỏ govertiment to supplement his country's own capital resources With Toons from the World Bank and other countries Arifajta. Prae
week against 2.80 points in the by the wide break in the first be extremely difficult to nient for the wout ended Oct. 8 ton as reported in bales by the Exchange Rates
Tho
best
President
solvo.
Now, York, Oct. 0. Raw cotton éxpofit by tortina«
Now York Colton Exchange. Ibi the 1906480 Bamnto da. 4 Sterling were as followki, 1,700,363,423
€11,00 902 Britainiai, 877,302,000 Continent **2270,374,984 Orient
The Bank of England stalo- following CiBlon pro-week.
It le gathering momentum by reada as follows: It was estimated that the Eisenhower's lifness.
the series of waga daims by dollar loss in the two weeks
market. -analyste millions of workers, including Note in cireuindan amounted to about $12,000,000, hoped for was a quiet, narrowly miners rallwaymon, builders Rabile deposits
Prvald, deobolja 000 on the valuation of all moving list for several weeks engineers, and form, lebomora, odvernement courfiles listed issues.
while a how base was built for they wero zi, eppodjed It. Other scurities
£300,006,000 fan, hebording to the lathcovery frovement, United would add experts, the market. has por- 'Tross,
national production costs.
09:
10
Recaipir
Ratio
Sted Proms.
Tain). for Same period inst
*buinéma", was done in tib local Erromatai kalisogey, markyk, this morning at the following relas Uli, dollar (pår $119,5VINE, Bterling noter (per 21) NUUNTE Australian :nölew (pos. #N: 4. Indonesian rupiah 3fter 300) pd dlam tical IDEE ROUYURASKINU Singapore. (Efruita) (variou Indo-China plastres (per 100)
to
Mr Craves has had experience
future, came back over the week in the fold of merchandising. six shillings to 75s, 6d. General He was for many, years Vice- Electric three shillings to 50s. 3d. President of Marshall Diclf of Chicage and President of John
In olls, Shell tumbled in Wormakét, New York, shillings to 122s. 6d. and in
Rhodesian coppera,
He said "It is of hope to be Selection Trust finished four shillings and able to provide a trade channel to develop the Japanese poten- sixpence down at 45s.
fiat for supplying the US market Even gold mines did not with- with a variety consumer mer- stand the general matalse forchandise at atractive prices. speculators were selling Kors When this is firmly established to help pay loɛsca on the we expect .to includo the tumbling blue chips, which they products of other countries in had over-bought.
Asin.”—United Press.
A
NEW
COMPANY?
From the word ““GO”.
place your printing order where you are assured of personal attention, expert designing, the finest materials and craftsmanship.
From Articles of Association, Share Certificatos to Letter Headings and the many other essential Items, consult the Printing Department of the South China Morning Post, Ltd.
Call in at ang time and examine specimens of quality printing which we shall be proud to show you
Make an appointmant with Mr. R. Labidy. Morning Post Building - Printing Dept.
· Wyndham Street;"; Telephoná? 2000Z.