TRADE
THE CHINA MAIL,
and
FRIDAY, OCTOBER 14, 1955.
COMMERCE
SECTION
PRESENT OUTLOOK IN AUSTRALIA New York Stock New York Sugar
Treasurer's Failure To Ease Depreciation Rates Not Helping Industry
Sydney, Oct. 13.
In his Budget Speech, the Australian Treasurer, Sir Arthur Fadden, particularly stressed the dangers of inflation gathering way again in the Australian economy, and the Budget was designed to stamp down inflationary pressure. It refrained from making tax concessions which would add to spending power in the hands of the community; it financed government capital expenditure out of revenue; and will hold over the greater part of any Budget surplus in case the loan market is unable to provide sufficient funds to meet the approved Loan Council programme.
The main criticism of the Budget, says The Australian and New Zealand Bank Survey, is its failure to cut Govern- ment expenditure at a time when, on the admission of the Treasurer, private expenditure on capital equipment is inevitably to be restricted by shortage of resources. Some of this private expenditure is no doubt relatively non-essential, but there can be little argument that a great deal of current private capital expenditure in Australia is necessary, that in many directions more is desirable and that such expenditure should be encouraged. To take one instance, modernising of factory equipment to improve Productive efficiency is necessary to produce goods that can compete with imports. This is outstandingly important to enable the general cost level to be held and, if possible reduced.
It is
1
WORLD
further malter for to offset the defutinntry forces regret that the Budget failed to arising from oversen trade, since
seems their pre-preupation Implement recommendations of Committee
with be
the need to prevent the Commonwerth on Rates of Depreciation to ease government activity from adeling to internal inflailon, anet to the men on Industry of r
THOVE Invoket a further upward which becomes placing plant
ment in the Australian cost level obsolescent. Such add by way sit mure liberal depreciation relative to costs abroad. allownners would help to pasture pruduction costs.
לר
Cots
Thrown Back
have
to
COTTON
MARKETS
New York, Oct. 13.
Loklay Nex- Jutures Cotton
*This Week's Movements At A Glance ★
Banks Untona HK Wharf
Wheelocks
Providents
HK Dock
Hotel Land Tram Yaumat Lights (v)
(n)
Electrio Telephons Cement Dairy Farm Yangiszo
Allled
Market Prices
New York, Oct. 13. Profit-taking in the last hour of trading to day erased gains which had added more than $1,000,000,000 to stock values at mid-session and on month left list about unchanged on the day.
Variation:
-880
18-
Ool. G
Oct. 13
1730
1603
Up or down -835
075
040
7814
71b
35 ---8214
0.00
9.30
--600
-200
15.00
15.806
-400 -800
20.00
20.700
-300
+-$1.20
18.60
18b
-000
64
0814
24.00
24.20
~~400
-400
116m
115
-81
-53
23 17.00
22.70
-300
000
17.00
~300
421/
41%
-750
-31.76
34
-$114
-250
3791
3714
-500
++700
21
20.60%
-200
51.60
Ü
7.95
2.80
-15c
-300
5.70
4.05
--26c
+++350
IS-
Hongkong Gas Co. Share Placement Plan Help Allied
By A Special Correspondent
More than 46,000 Allieds and 19,000 Wheelocks changed hands on the Hongkong Stock Exchange yesterday to relieve the monotony of one of the dullest weeks of trading I can remember,
Allieds rose 20 cents on the day under sustained buying pressure-at one stage they were up 25 cents-and Wheelocks last ten cents rumours of a Hongkong and China Gas Company share placement before the end of this
on
year.
The realising, which market commentators said was in line with general expectations for market behaviour in the near future, was without pressure against any particular group.
Trading was light with turn- over totalling 1,000,000 shares, compared with 1,900,000 shares yesterday.
Most Issues finished Just a fraction
Standard Branda Standard On of Cai, Standard Oil of In Standard pit of NJ. Sterling Dig_Co. Stokely-Van Camp.
either side of the Studebaker-Packard Corp.
Swift & C. few of the Texas Co.
I
previous with leaders off a-point or more. Of Union Carbide
Union Pacifle niway total, 1,149 Issues traded, 396 United Alremit were higher, 494 jower, 259 US. Line Co. unchanged.
UR. Rubber Industrials, up nearly 2 points US Steel
U.S. Smelling
Warner ape
Market
New York, Oct. 13. World No. 4 sugar futures closed today unchanged to 1 |point higher with no cales re-
ported.
Domestic No. 6 sugar futures closed unchanged to 2 points higher with sales of 120
trac.s.
Contract No. 4 (world)
Sept.
con-
March Mny
July
Spot-cents per lb. fob
"Cuba)
Contract No. 4
Nov. March May
5.04
D.30
Spot-cents per Ib. elf
371
NY ox-duty)
6.57
83%
United Press.
1029
12
London Foreign
Exchange
Stockholm
Zurich
Others werd
London, Oct. 13.
2.791-0.79-3/16 2.7742-2.77-7/10 10.0015-10.00% 11.73-11.7214 40,60-30.10 17.54-17.55 14.4234-14.4235
inchanged United
Meniten?
Amsterdam
475 Frankfurt
New York 502
22
43%
03/ Linbon
10% Milan
Bo
43
United Press Press.
on average at their best, closed with a loss of 0.07, despite a Westinghouse, Electric point gain in Du Pont, the day's West V, Pulp & Paper
Woolwork feature.
Rails Hold
Halls held a rise of one point. Among the wider losers In leading isues were Chrysler, down early 2 points, Bethichem Steel, off around a point,
Boeing me: demand and the stock gained a point ht the close Douglas improved frac
Aircraft, tionally and United held a fraction of an early risc of nearly two points.
New York Stock Exchange bond volume was $3,946,000,
American Slock Exchange volume was 800.000 shares,
Closing Prices
Alden Inc. Aey.
Allied Chemicals
Allied Mills Inc. All Chalmers American Airline
American Cyanamide Am. Mach. & dry. American Mein! Aerlen Smelting
Am Sugar Ref American Tel & To Anaconda Copper
American Tob
Armco Steel Armour
Baldwin Lipa-Hmm. Baltimore & Ohio
Benguet Cons.
$3.176 Borden (The) Cu.
were
From inquiries in Ice House quoted $2.10 sellers last Thurs- Bendix Aviation Corp. Street. I understand that Whee-day were $1.875 sellers yester-lhes Steel lock Marden, Allied Investors day afternoon, while Amalga- | Beeing Airplane Corporation
which were and the Common- mateds
inst week wealth Investment Company, the nominal present owners of about 05 per sellers yesterday. cent of the Gas Company shares are contemplating placing about 50 per cent of the issued shares in the market.
1 understand they will be sold at a price which will give a of about seven or eight
return of per cent.
Allied investors hold 83,533 of the Gas Company £1 shares. valued in the last balance sheet
$2,936,258.
banking It follows that the Raises Costs
system will be thrown back on its own resources and faced with Although failing to make de-
which he prospect of declining cush sawed over a range of $1 a bale precintion
concussions
liquidity Industry, and falling
ratios. active dealings. I could assist costs in the Buget has endeavoured to Therefore the banks cannot be
Short covering in the October heavy. P
exported to extend credit fur- prevent the continuing
ther, but rather to restrict credit delivery, and the higher range at on Wednesday, all expenditure Q11 private
Under New Oricans in the coming months. kumption
reising from
acted to shape market sentiment. the necessary restr
restrictive policy. further. However, the damage.
Brokers with mill connections which the
promising propositions may private sector is
were prominent buyers of the vented from doing may be done to be deferred through lack of
However, the financese, delivery, taking an estimat- by government expenditure funds
ed 18,000 bales in the opening which will continue at a high avaliable should be ample
w
trading.
The October. level
vel competing uelively
1955, delivery
I am not in a position to say for
went off the board in the noon private expenditure resources of men and materials.
hour trading at 32.02-03, hold-re this week chiefly becaust-
the proposals Alhough it is relatively va
Ing a 50-point premium
have not been finalised. The the export season, the Ja-
December. During the life of
market has
respon proved quite alcations are
month the spot are that export income.
the contract
sive to the proposal, however, than rise,
aded between the high of 35.30 and I hope to be able to say rather
and a low of 30.47 cents a po
more on this subject within the With nearby December
next fortnight. Ing almost at the day's high the Nist finishod 3 to 17 points higher. Opening prices were of 1 to up 15 points. New
in
will decline
scared
and that The balance of pay- ments will
adverse
ان
be adverse An
Unlance payments reduces the quidity of the banking system and thus lends to have a deflationary
effect through a contraction of
credit. The deflationary aspects
of
the Budget will thus reinforce
the similar effect arising from oversen trade.
The already
bankin
system has
suffered Д loss of
ploy all the real resources at Australia's command, thus min- taining a high level of activity without adding seriously to riska of inflation.
WORLD
RUBBER
PRICES
Singapore, Oct. 13, The rubber ket cased on London advices with
liquidity through the substantial lower
adverse balance of payments in buyers reluctant. Futures: 1954-55. Although rdvances rose No. 1 rubber per lb. Oct. 11014-11615 Nov. 118-1105 Dee. unqunted materially during the past fun-
."
Dver
for
placement
Popular Addition
The Gus shares, with a yield
Orleans closed 7 to 10 points of seven to eight per cent,
lower.
Trading volume and open
the Exchange interest in
should prove a popular addition to the utility market. Most of to the other "chlos" are yielding about four or five per cent with which the exception of Trams
and are giving almost
Volume Open interest
4,700
47.700
34,000
stven,
Youmatis six and half;
Sales of Wheelocks and Aillede accounted for more than
+
TODAY'S
SHARE PRICES
$3 Burnughs Add Machine Canadian Pacific R. Case (JI) Co.
(From Our Correspondent)
Business done on the Hong- kong
this Stock Exchange morning amounted to $420,000. Noou quotations and the morn- ing's transactions:
C.I.T. Financial Comp Cot, Tractor Ceiqnye Porp.
Cluse khpt. Donk Chrysler Meurs
Colgate-Palmolive Co Cameretal Credit Commonwealth Elee Convalidated Edison Continental Oil of Dei. Continental Sirel Cor Products
Crane Zellerbach
Crown
Cuban Amer, SugaT
Curtis Wright Diamond Alkall Dow Chemicals Fatman Kodak
National Gar Erle Rolled ... Family Finance Corp. General Eletric General Foods General Motors Gen. Pub, But, Gillette Safety Razor
BHARES BUYERS SELLERS SALE Gildden Co...
BANKS
HK Bank..
INSURANCES
Ummon
1700
940 945
កឆ្អឹងដ
*Spee
040
Goodrich (R. F) Co. Goodyear Tire Heyden Chemical Homela Mining Co.
Fenoll-Rund
Steel Co.
940 Interchemical Corp.
Int'l Business Machines Int'l Harvester
010
9.40
2.40
914
day were;
Unterwriters
10
Month
00.
Dec.
Mnr.
12,100 500 500 074,700
May
40,200
B10,700
July Oct.
1,000 200.600
7,000
115,500
yesterday's tolal
turnover
halt of
DOCKS, ETC. K. What Dock Provident
71
29.10
#15.00 16.80
Wheelook
0.30 0.40 2000 e
Dec. Mar,
700
5,000
$920,000.
400
1,000
1000
148,000 1,089,700 balen
the
market hus
NEW YORK
mally dull.
Apart from this brief spree, been dis- Only one share
riso Allied-shows a
on the
art
2000
LAND, ETC.
HK Holel HK Land
031
04
031/2
cial
year and had an offect in No. 3 rubber per 1b. Oct. 110-1105 115-11815 sustaining deposits, they cannot No. 3
10715-10015 Total Influence trading banks' cash No. 4
$1014-2764% Spot rubber anbaled ".. Blanket repe resources, and they therefore fall
23-05 127-120 to increase liquidity. The full No. 1 pale crepe Impact of the adversa balance of payments was thus met by re- leases from Special Account and reductions in the liquid re- sources of the trading banks.
Offset
Prices of futures closed today
as follows:
Spot
Oct.
Dec.
Mur.
May
lower
July
Oct
Dec.
Mar.
NEW YORK Futures today closed 40 ta 85 points lower with sales of 398
ontracts.
Prices in the market dropped
with sharply
Use London-Singapore cables.
that fair was reported
shipment rubber taken up
It
Although government expen- dituro could have done much to amount of offret the influence of oversen from Malaya was trade and the balance of pay- mostly by dealers and hedged
government on the terminal market. ments in 1954-55,
32.000
82.59 expired
3287-63 31.35
3603-00
20.991. 28.00
29.87
NEW ORLEANS
Influences did not offset the loss Factory buying in the spot as follows:
from the Currency resources. On the con- quoted nominally at 12% conts
actually in a pound. Futures; trary official
.33.15
3203 expired
33.47-40
31.24 30.03-04
20.00
we
week. All the others lower and turnover for the week talled $3,700,000. A couple of months ago
were getting daily turnovers as high as that.
The Stock Exchange reports this week could hardly be less exciting, Here are
some
amples "no significant feature", "mainly
"prices featureless Inclined to sag", "quidation by
Prices of futures closed today tired holders, andertone weak
Little "dull and featureless". wonder investors are holding off. Overseas Uncertainty
Brokers foel the market has boen
by depressed this week nows of further falls on London and New York and the general to bo uncertainty that seems dogging overseas markets.
trading bank liquidity arising month
remained at D sub-
in ove reduction
routine oversca
pace. No. 1 Rss were
Spot
Dee
Mar.
May
July
Out.
Dee.
30.09
Mar.
37.00 33.70
31,00
Creased deflationary
Influctices
Dee.
by pincing
reducing Treasury
Billy
Mnr.
during the financial year, thus
May
further pressure on the
July
Sept.
banks' liquidity.
Dec.
and from the terms of
From the Treasurer's Budget
69 Budget itself, there can
be
LONDON
The market was very steady the
witli spot quoted at 34% pence no grounds for expecting that the not influence of fiscal policy per Prices:
******** 044-35
will be inflationary during 1955- No. 1 mot
Settlement house team:
Gd. Forces operating on the November
December
Jnn/Mar.
Ape/Juna
banking system will have downward influence on cash re sources and consequently there liquidity will be a tendency for to decline
celine further. The baniding system has extended eredit liberally during the past anon- cial year (although not enough to meet more than a proportion of sound demando) and capacity to extend credit further in now airgelly limited by the operation of fortes influencing the banks No. 1 rubber
cash resources.
Futuro
20.00 29.92
LIVERPOOL
I still hear talk that the
midding, in pence per 1b, were seven and eight per cent bank
closings, American
ns follows:
Old contract
Oct/Nov.
Doc/Jan. Mar/Apr. May/Juno
rato la discouraging buying and
(Tcta.)
Humphrey's Healty....
2020 20210
RUDDER
A. Rubber
Trunt UTILITIES
*Trim
Youmati
1.05 1.07%
24.20.
International Nickel
International Paper Ini Tel & Tel
John-Manville Co.
Kansas C. Power & Light:
Kennecott Copper
Liggott Meyers Tob, Co.
Lockliced Aircraft
Loews Jacofp.
Lone Star Cement Co. 9.35 Louisville & Nashvil。 R.
0.33 | Lowenstein & Bone.
100 à 14.50 100 24.30
Ferry XD 112 115 100 113
Mesabi Iron Corp.
Mission Development Monsanto Chemical Co.
Montgomery Ward
Motoris Inc.
National Cash Reg. "A" National Dairy Prod.
National Distillers National Lend .... New York Central Olin Mathieson
Dia Elevatore Owen-nots Glaza Paclie Go & Elec, Pacific Western Of Pan American. Airways Paramount Pictures Parko Davie Co. Penny J. C. Co. Philip Morris ..
C. Light (0) 22.00 23.10 100 22.10 | Pilije. Petroleum
C. Light (N) 17.30 13.00 500 17.00
10000 230
1000 22.
500 2400 100 6 22.00
600 + 17,00
400
.00
100 un 12cO
300- 17.00
360 p 17.70
Electric
43 000 42 ..... 16144
200 i 42 Telephone... 2014 33 500 341
1000 3435 INDUSTRIALS
Conent...... 371 3714 200 → 1734
500.44
that land and a revival of trade STORIE, ETC. are drawing money away from Ice House Street. But soy
27.09-10 200
30.40
21.07
24.04
041-3433
July/Aug.
21.31
New contract
May/Justo
July/Aug
20.40 20,28
share
are
Banks drotn
Dairy XD
Crawfordd
COTTONS
·Textilus
Nanyang MISCELLANEOUS
Yangtzo
20 20.40 600 * 20.20
7
Pineler & Gamble Co. Pittsburgh Plate Glasa Paulicher Industrien Puro Oli Radio Corporation
Republic Steel
Shell Oil Ce.
Binclair Ou
Socony Vhcuum.
South Porto Rien Sugar, Southern National Gas
Southern Rollway (Com,
London Stock Market
P&O B.I. E&A
COMPANIES
PENINSULAR & ORIENTAL S.N. Co.
PASSENGER/FREIGHT SERVICE
22
Outwards "CARTHAGE"
"CHUSAN"
Lotalin, Oct. 19. Blue chip industrials Led a 1000 g 7.18 modest advance on the London
Exchange today,
Oils showed strength, with Royal Dutch up & and offer
Exchange Rates leaders, closing one to
brokers
led by the fact puzzled
.hligh that land prices are sull high and that that market has
not Euffered anything like the de- 31-311 Egyptian Karnak Jan/Feb. 39.00 July/Sept
the General market, cil basis, ports:
experienced by pression BAD PAULO 34-943
maricot in recent
weeks. November
334-34 December
Future closings, in cruzeiros
below the Estala cresio thick and thin all per kilo were as follows; o $1,700 mark
avto $1.095 unquoted.
www.. 30,00 AMSTERDAM
to show a $38
week on the 21.05. The markci
steady, Way
the utility section 31.00
in and
Bustriem was done in the foot urofitotale akthongs Prices closed today in guilders July
**** $1,00
prices were marked down. In the
mahing at the following rates Rubber shares were duit and 18hdollar (per #}} per ilogramme, df Nov. no
average prieb of 15/18 middling neglected this week following a Starling notes (29′′ 21). follows:
3.50 tom, cotton al 14 designated spot furthou falely heavy fall in the Australian Both)" (per21) 30 somniarkate was 33.67 octs, Sales price of Singapore Res 1 from Indon uplak (per 1003 320'noin:
Bam Dexis_(per 100) nt these contros totalled 50,229 | 130% Straits conte a 16 to 116. singapore (stralia) 201 nam.
bales United Prest. Press.
Amalgamateds which wore | mdesinian plastron (par 190).
No. Jubbar No. 5 tubber
The Government cannot be. No, i crepe. expected to tako remedial actionĮ
December March May
United States, the
اله
market
th
"CORFU"
"CANTON"
Leaves London The Hongkon
Salted
th November
17th
atober
29th
October
14
November
13th December
Via Southampton, Port said, Aden, Bombay, Evlombo,
Penang A Singapore
"CHUSAN"
Due London
21st November
29th November
Homewards Leaves Hongkong "CARTIIAGE" Dint October
2nd November 10th Novembar 10th December
10th December 18th January
"CORFU" "CANTON"
Via Singapore, Penang, Colombo, Bombay. Aden, Port Bald & Londọn
"SUNDA"
FREIGHT SERVICE
:.
dur 16th Oct. saits 10th Oct, "SHILLONG” londs 27th Det.
from 1. via Strat for Japan
for S'pore, P. Swellen- ham, Penang. Colambo, Aden. Purt Said, Genon Marselites, avro, Lon- don, Antwerp, Botter- dain & Hamburg
What liberry to call at Delawan balace or altor Straits Parts and at Dambay ir juditeement phers.
Tanks available for camlage of Oll in Bulk. Space for refrigerated cargo. Limited Passenger- accommodation
"SANGOLA"
BRITISH INDIA S.N. CO., LTD.
sally 28th Oct. for Singapore, Fenang,
Rangoon & Caloutin "SANTHIA” due 5th Nov, from Calcutta, Penang
& Straits walls Úth Now, for Yokohama, Nagoya & Kobe
"WARORA"
Falla 11th Nov.
for Singapore, Chit- tagong & Hangoon
P. & O./B. I. JOINT SERVICE
"OLINDA"
"ORDIA"
“OKULA”
"ORNA"
"OLINDA"
due 25th Oct.
nails 20th Det.
salts 31st Oct.
from Karachi, Bombay & Cochin
for Jupan
for Singapore, Cochin, BOMBAY.
Khorram-
shahr & Kuwalt
due 3rd Nov. from Karachi & Bombay Kails 4th Nov, for Japan
Joads 7th Nov.
for Singapore, Colombo, Karachi Basrah, Khor- ramshahr & Kuwalt
/ loads 2011, Nov. for Bingapore. BOM-
BAY & Karachi
EASTERN & AUSTRALIAN S.S. CO., LTD.
-"NELLORE”
loads / Nov, for Sandakan, Italaul, Brisbane, Bydney, Mal- bourne & Adelaide
All vessels have liberly to call at any ports an or off the route & the route & sailing are subject to change or amendment with or without notice,
For full particulars apply lo›› MACKINNON, MACKENZIE & CO. OF HONG KONG LTD. Telephone Nos. 27721-4.
MESSAGERIES MARITIMES
P.O. Box 53 Queen's Building Tel: 25851
FAST PASSENGER/FREIGHT SERVICE- "CAMBODGE" two seilings higher.
"LAOS", Erilish government SUVIETNAM" failed, 40-mako houdway, Selling pressure forced Did Conishly and Lgan sor down about
And comper
shares 11 were mixed, whithe, nelive Tiki Iseultos canler toward the close.—
0.20 United Prose.
sailing Nov. 5th
sailing Dec. 3rd.
sailing Dec. 81st
FAST FREIGHT SERVICE
"PEIHO" "INDUST
Balling Oct. 17th Balling Nov. 7th
accept cargo for Hamburg.