THE CHINA MAIL, MONDAY, FEBRUARY 20, 1956.
TRADE and COMMERCE SECTION
Eisenhower Report Gives US HONGKONG CITY UNDER A
NY COTTON MARKET
REVIEW
By William T. Plunkett
New York, Feb. 19.
Cotton futures prices were higher,
last week
with nearby months ex-
tending the
highs
rise to how
new
while months turned lower.
the
crop
list 20
At Friday's close, ruled 34 points higher 10 paints over, or up $1.70 a bale down $1 a bale compared with the preceding week's.
Antlelpating Brat notice
STOCK GREAT STRAIN
Markets A Jolt US Programme EXCHANGE
Of Confidence
By JOHN MORKA
New York, Feb. 19.
U.S. trader-investor sentiment got its biggest jolt of confidence this past week on news of the favourable medical report on President Eisenhower.
on
For Tobacco Exports
(From Our Correspondent)
Business done on the Hong- kong Stock Exchange this morning amounted to approxim- Washington, Feb. 19.
Noon quota- ately $1,200,000. The Agriculture Depart-tions and the morning's trans-
actions: mont today announced a pro- gramme to develop new ex-suARES BUYERS SELLERS SALES port markets for tobacco in co-operation with private US traders,
GOVT, LOANS
31522 (1940)
BANKS
IIK Bank
East Asia
0:1
1785 1700
236 The programme will be con- INSURANCES ducted under
Lombard an agreement
..Bas betiveen the Department
Underwriters 9.13 and representatives of Tobacco As-SPPING
Waterboat .. 25. the Burley DOCKS. ITC. sociates, Inc., and
K. Wharf. 713 Dock
tion. Inc.. both
13.000 or 0346
“ál 2475 1000 # 3374
1000 6 34
400 * 342
Washington and Darie Leaf Export Associa- and the Lent Exporters Associn-
* Provident (0) 14.00 15.40 Possibilities of developing LAND, ETC.
TIK Hotel 17.00 18 2300 17.00 238 of 639 HK Land (0)
63 0315 (NJ 01 0135 3401 such countries as may be agreed
will be considered Humphreys 10.40 19.80 500 195 Really including:
Wall Streeters reacted spontaneously to the news Wednesday, lifting stock prices to net gains ranging up to York Stock three points for most of the leaders. The New Exchange had its heaviest first-hour trading on Wednesday ion, Greenville, N. C... day
with early gains up to six points. However, these were later whittled down as profit-taking set in. On Tuesday, however, west coast markets--still open' after the medical report was made on Tuesday-showed prompt gains to four points.
for the Mareli contract--Feb. 23 the Steady --and reflecting!
shrinkage
the certificated reached stuck, the spot montli 35.80 cut a pound, establish- the t price tng the highest beard in
1tle more than a
year.
A tightening
in the south. wake
- under
the
Wall Streeters humped to the the market just a shade above situation spxst
that the conclusim
President the year's lows wet on January ir etuning
almost right heavy timoundings Eisenhower will be a candidate 23, Rails were
government ban. this year, Trader read avidly down to that low and industrials
The doctors' findings on the
D few points above. Rave prices on additional lift.
President's health and jumped into the market on the hop that he will announce his inten- tion to be a candidate:
Resistance
.
However, above the 35 cent level, the market met resistance. became Leading spot interests
Aufficient vele-up sellers
The curb the rise, volume 'stock of certested cotton avail-
alle
delivery for contract totalled 10,121 bales, a cumula- tive drop of zimest 6,400 bales
the past month.
May Be Overdone
The President's doctors said he could lead an active life for another Ave to 10 years, an
the
nanket
un
many will live to conclude that this paved the way for an even- Uncertainties ever form legisual "yes" to the big question of lation neted to keep the new the day.
and crop deliveries off balance
Newn eurb
That activity. Secretary Benson would recom- mend a vete if the bis pass ed with rigid high price sup- ports caused spurts of selli
But traders generally was nol Inclined to draw definite clusion pending Senate
con- debate
on the bill, and the coqunenen- ment of the House Agriculture Committee hearing next week un legislation. designed to boost farm income,
The Census Bureau reported of raw domestic consumption
at 744,990 etten in Januury
855.447 with bales, compared
December.
bales used In
United Press.
· London Foreign
Exchange
London. Feb. 19.
rales
The foreign exchange
. On Saturday closed as follows:-
New York
Montreal
Amsterdam
Frankfurt Lisbun
Mulan
Paris
Stockholm
2.00$42.0014 2.50 2.80 10.021-10.3 F1.72-11.72 800-00 30 17351-175015
021-0834 14.431-14,535 United Press.
Others were unchanged,
Exchange Rates
exchange
was done in the focal Business
market this 'unofficial
marning at the following rates: U.S. dollar (per 1)
Sterling notes (per £1. Australian notes per £1)
Indonesian rupiali (per 100) Siam fical (per 100) Singapore Straits)
However, Thursday appears to have dis- sipated sine of its previous-day vigour and from indications has now settled in its former pattern
irregularity indecisiveness, gains followed by sell-offs.
བ་་
|
the
new markets for U.S. tobacco in upon
markets
1. Making
studies with 1
to view developing effective expanded markets for United States tobacco;
Market non insist that this is 2. Promotion of use of United Ja selected tobacco Market States still an "Eisenhower and that prices will be keyed countries;.
foreign tobacco 3. Bringing closely to the presidential race. This is borne out by a study of experts and buyers to the United the market since inst September States to familiarise them with merits of United States tobacco Friday before 23, the,
that and grading, storing, and dis- On President's iners.
industrial
tribution facilities; average day,
4. Particinating in exhibits of
nt United States tobacco closed at 487.45, a record high 10 that time. were
fifth
Falc National Trade The following session, Mon-
20 the United Press. September ustrial average broke 31.09 |
That was the points to 455,50.
The crucin January lows are 462.35 the Industrial end 153.07 in the rails, both set in Jan, 23. It was noted that the market mot support last Friday
these levels when #pproached,
the
the
community point out that the widest decline since October 20, The Bank Of England
Up to now buying develops when lows have been approached. The bearish in the financial Wednesday rally might after all have been no more than just
They hold pleasant interfude, that a lot of people agree with then and are ready to sell each tinic there is a rally.
1920, and the second widest de history,
By
cline for a ingle day
Year's Low '
December
all
30,
the
their
In Wednesday's rally. theydustrials had regained point, people did a lot of equilibrium and closed the year selling and prices silpped back 1955 at a new, record high of from the highs of the day. 488.40. That high has held to
The industrial average, while the present date.
Statement
UTILITIES
Tram
1.621
ne
25.30 23.30 1000 Star Ferry... 143 145 Yaumali Ferry
25.20
107 500 190
C. Light (0) 22.10 22.30 1500
2. Light (N1 18,40 19.00 600
23.40
By C. T. Hallinari
London, Feb. 19. The City of London, as the great price mechanism of the British Empire, came under severe strain last week.
People who were in a slightly vulnerable financial position-under pressure, say, from their banks to repay, at least in part, the money they had borrowed-sought to sell various government
bonds.
}..
Unfortunately tow prople | Tobacco virtually 48 and wanted to buy them until it was number of others 2s or is. clear just what Mr Memillon planned to do to extricate Bri- tain from the grip of inflation, Anxious sellers against unwill Ing buyers-prices. fell.
Old Consola
The amount of 3% per cent War Loan outstanding in the of solid Institutions possession and of Individuals Is actually 1,110 million sterling. They own they and they keep it for consider it "safe" and they are
But
any
But there
of were plenty odd spots. American Ford Motors shares rose £4 to £113% (for Ave shares),
In olls Royal Dutch, offer clased Ructuating a good deal. unchanged at £014 though the Including Shell other leaders, moderately lower. Transport-down 6e-were all
Foreign bonds were erratic. The two German Potash Loans both lost £3 and Dawes Loan £144, both assented and non- arsenied, but Young Loan roso 1. In the Japanese list Tokyo most
by
22.10 satisfied with the yield.
the persistent selling of a re5 percents rose £2 but 2:00
Wor GOD 22.10 latively small chunk of
of the others were down 2500 22:20 Loan this past week lowered amounts ranging from 3 to 114
10.00 the price of 100 sterling worth
sterling. 1000 19.00 from £72% to £71, a drop of 1300 19.70 30s; in January a year ago you 3000 kr 19.03
ind to pay. 88 GOD or 1.70 would have
sterlings to buy 100 sterling 300 1980
2500 / 20
Electric
.... 4324
44 1300 44
L000 or 10.40. worth; in the late 1030% Ben 10.30 would have 1000 A 10.40 sterling.
had to
pay
you 106
1600 434
500 44
600 134 1000 G4
250 Gr 44 500 * 4374
47 44
030 6 44
Thus this kind of a market is restricted solely to the marginal supply a few million sterling worth of War Loan out of the total 1,119 million sterling.
the
Untouched
But the whole picture re- presents confusion
as to what the new bank rate of 5%1⁄2 per cent and the other features of Mr Memillian's programme will mean to the country. The citizen with
OVET- " modest drafi at his bank pays 7 per Macao Elec (©) 0.00 1.80
Old 2 per cent
Consols, cost per annum interest, bogin- (N) 8.30
which Telephone
within
* last 321% 53% 2100 33
12 ning today, but år, on the other INDUSTRIALS London, Feb. 19.
months has been as high as hand, he can leave part of his Cement
30 30% 2000 g 3014
60% sterling, lost 2 shillings deposit untouched at the bank, The Bank of England state-
1000 30
to £524, close to its he will receive 33% per cent ment for the week coded Feb.
3914 pence
1955-60 low of £32%.
interest upon that amount 15, ready as follows
The same thing happened with though he gets no interest on Note in circulation sterling 1,179,239,403
Dinley Government securities 265,801.ază
40.016,ED Watson
120 @ 12.00 the leading industrials. More or his current account. 12.40 16.212.763
Rolls less unwilling selling of Government ou Public deposits
320,447,134 Vibro
Royce lowered the shares 10s to This is the point which s Private deposits Receipts
100 @ 3.45 39 Od while Associated Electrics thinking staris, and possibly it 10004 11.40 lost 5s, Unilever and Imperial ends there.-United Press,
Italio
....
Rope STORES, ETC.
15.20
300
13 700 17.00
2.40
1.30
11.30
MISCELLANEOUS
48.431.07 Allied
14.3.
United Press.
Many experts point out to-
it closed with a gas of nearly. The 1950 high is 485.78 and day that perhaps the markes five points from the previous It was made in the first session Session WILS mure than five of the year-a declining Session may have overdone its rally on Wednesday. They say the points under its highs. And the in which the average elesed The Bank Of market on Tuesday night was leadership was not of the best with a loss of 2.02 points.
The "sold-out" either, it is pointed out, nuch in a pretty
the January 23, position and would have reacted
most Retive Issue, Avco Menu Industrials, fell to the year's low favourably under the stimulus
facturing, selling at $7.25 a of 462.35, lowest since Nov. 3 of any kind of favourable new share, the actives also included and the rails closed at 153,97, low for, that average since Nov. 7.
anyway.
<
such stocks as Benguet Con- soldated Mining a $2 a share and Graham-Paige at $2.50.
On
franc
Statement
Total bile discrete
France
401,204,302,420 17,607,747,531
197,073,550,000
101.000.000.000 1.270,412.976,047 2,802.356.012.070
Paris, Feb. 19. The Bank of France statement for the week ended Feb, 0, reads as follows:-- In minimising the Wednesday
Total gold holdings Industrials at the close on aly, the beansh coterie point
That Total other currencies ut that the riau lacked follow-
Wednesday was 470.04. Still Free
was 17.75 points under the all-Sight balance abroad
In EPU through and in many instances The Arrt prices were the best for
time high set on December 30 Advance to Stoullin- Another thing, the bears say,
und 8.20
tion Fund is felt generally,
peints above the the day. 11
President basn't said January low. market will the therefore, that the
he will run. As
In assessing the overall im- now more likely move along in achitoy !! Renerally narrow limits, with another broker put it, the case pact of the Wednesday marker dealings increasingly mote of running or not running has
dyclopments La the setcetive at least until March been, blunted by so much talk the market experts see
when
it is hoped, President about it. Eisenhower, might disclose his presidential intentions.
Some experts envision a big duel shaping up in Wall Street -a duel between the bears and bulls.
Crucial Lows
Both of these groups centre their thinking around the key question of the Bay: Will the President reck re-election?
The bullish group emphasise on
Some brokera point out that way the bulls will have to show their course,
around courage 15.70 usual
5.60
20.00
cought say the bulls.
in 1929.
ofing:
The market tend to
move
Note in circulation Current accounts
and
deposits...、、、 135,35,350.007
United Pru.
Singapore Rubber Market
Singapore, Feb. 19. The market dipped sharply on Saturday on lack of overseas enquiry. There was some specu- lative short-covering but it was not enough to hold" the market.
Futures were: Nb. 1 rubber per. 1 Mar, 10144-102 April 100%-301
May unquoted No. 2 rubber per 1. Mar. 1001-10034
1915-0044
10245-10314 54-00 113-115
"
-United Pres.
NOTICE.
the other hunt that the market along previous channels general- is still free of seculative exesses. iy reacting under the stimulus a factor which played into the of good business; good carnings
They bears hands
and dividends reports-tempera have good business predictions tured temporarily, in no small on their side with most big mcastire by the
poliiicat un tines holding very high and the
the certainties generated by prospect of putting auto produc- President's political intentions. ilon on new models in late sum-
No Unanimity mer or early autumn.
The chance of a tax cut isn't
It is seen by some observare No considered out of t the realm of
effect of the medical No. 4 as yet to the bullish that the possibility as
Ilanket erepe of thinking.
And of report and the Wednesday rally Spot rubber anbaled
the is.
potential No. 1 pale crepe increasing there's still the chance
bearishness of any decision not the the President will decide to run.
to seek re-election, while there 1241 January lows or it would imply if he does, it will be a rout for 14.015 a test of lower prices, The the bears, at least for a time, is no unanimity as to what the market with or will not do, 1.82 medical announcement
there's a strong feeling that the final Impact of the President's THE HONGKONG ELECTRIC decision will be lessened
COMPANY, LIMITED. proportion to the extent of the
Notice to Shareholders psychological preparation of the American investing public for any developments.
NOTICE IS HEREBY By and large, the American GIVEN that the Sixty-Third accidentally or Annual General Meeting of purposefully has been encour the Members of the Company public, either aged by the week's develop- it was a year ago in January. ments to think the President's will be held on Thursday, the f
Concensus feeling
decision will be affirmative 15th day of March, 1956, at what the market needs is some United Press,
11 a.m. at the Company's outstanding piece of good news outside the realm of politics.
Registered Office, 4th Floor, What this could be, no one is However, the ready to say.
insist that any such experts good news must come a a surprise.
Pakistan To Get Security Funds
Washington, Feb. 19. Mutual security funds totalling $26,400,000 were authorised today for. Pakistan by the International Co-operation Administration (ICA) swelling the 1956 fiscal year aid total for that nation to $62,400,000, the ICA announced today. The additional funds are to be used for the development in Pakistan of agriculture and natural resources, industry and mining, health and sanitation, and transportation.
of
Out of pollies and in the realm of credit, there are also the prospects although somewhat dim at this point that the Federal Reserve. might looser: credit a bit and even possibly cut margins back to 60 per ethit from the present might go to 50 per cent where and, if selling persisted, the cut
that
76
No Evaporation
cent.
апу
Manufactured P. & O. Building, for the
Textiles Limitation
Washington, Feb. 19.
of
States. Japan is Amerlea's best
transaction of the business of an Ordinary General Meeting including the following:- (1) To receive and consider
the Reports of the Direc tors and of the Auditors, and the Profit and Los Account for the year ended 31st December 1956, and the Balance Sheet ne at that date.
ť
Meanwhile, it is held that many people with good profits Reprosentatives of a part are ready to realise them on the cotton industry today asked rallies, They want to lighten the Agriculture Department 10 commitments with the limit Imports of manufactured The largest slice of new ald fertiliser factory, aid road cen- ther
Iden of getting back into the textiles into the United States. willstruction and malaria control,
for a appropriations, $8,400,000,
They asked specially market when prices are down, and aincréaso the war supply.
with agreement be used to help construct
not so increase the multi-purpose earth dam on the expand aviation ground facilities, Wall Street docan't think this negotiated
market is going to evaporate. Japan Karnafull River in East Pokl
The ICA also announced today Neither does it feel that the ilst amount of cotton fabrics that (2) To approve the Dividend. stan. Located upstream from the
will "be pushed up Indis-country sends to the United (8) To elect Directors. bay of Bengal the new dam will was shipping 12.500 tons help raise the living standard gift wheat to Pakistan to feed criminately.
(4) To appuint Auditors, Brokerage experts continue raw cotton customers, of East Pakistan's 45,000,000 in hungry areas still suffering from
the effects of floods that ravaged to recommend Individual stock culture Earl L, Butz told the will be closed from Friday, the Asalutant Secretary of Agri-. The Register of Members. habitants, the ICA Bald.
West Pakistan late in 1958. The on the theory that trading will industry representatives in wheat is being sent under emergency programine launched tong, timo to come.
continue highly selective for a closed session, the Department 2nd of March, to Thursday, They hold would take up the case with the the 15th of March, 1966, both It is to have an initial capa- carly in January.
that the market has discounted state Department, elty of 80,000 kilowatts and in
William Rhea Blake, execu- days Inclusive, addition to providing cheap Previous financial allotments most of the things ahead of it,
Including whatever be bad tiva vice-president of ∙thei power for the area will help this your included $0,000,000 for
nows.
National Cotton Council, said By Order of the Board, оп the technical 'co-operation” and effective flood control
This market could have some, the industry would prefer the
JH, FELL/ Karnafull River, The slam olas $80,000,000 mariood for the
would should provide water storage purchase of Iron and stool, in bad nows as well as good, and Agriculture Department
BERGAMALY Secretary dustrial machinery, motor not a few point out that veto carry on hogotiations rather that, for irrigation purposes...
non-ferrous motals, of the natural, des bill could be the State Department United Hongkong, 16th, Feb., 1980, The now aid money will also vollicles, 'halo 'completo Pakigan's first and chemicals-United Press, Jong item: in, that direction.
Gift Wheat
an
ILK. & F.E Invert
THE HONGKONG ELECTRIC COMPANY, LIMITED
Notice To Shareholders
NOTICE IS HEREBY GIVEN that an Extraordinary General Meeting of the Members of the Company will be held at the Company's Registered Office, P. & 0. Building, 4th Floor, Hong Kong, at 11.15 o'clock in the forenoon of the 15th day of March 1966 (or as soon thereafter as the business of the Sixty-third Annual General Meeting of the Company shall be concluded) for the purpose of considering and, if thought fit, passing the following Resolution as a Special Resolution:--
"That the authorised Capital of the Company be increased from its present Capital of $50,000,000 divided into 5,000,000 shares of $10 each to $100,000,000 by the creation of 5,000,000 additional shares of $10 each."
AND NOTICE IS ALSO GIVEN for the purpose of considering and, if thought fit, passing the following Resolutions as Ordinary Resolutions—
1. "That it is desirable to capitalise a sum of $5,000,000 being part of the General Reserve Account and that accordingly a special capital bonus of $5,000,000 free of income tax be declared and that such bonus be applied on behalf of the persons who on the 15th day of March 1956 are holders of the 3,500,000 fully paid-up issued shares of the Company in payment in 'full for 500,000 new shares of the Company of $10 each, and that such 500,000 new shares credited as fully paid be accordingly allotted to such persons respectively in the proportion of one such new share for every completo seven of the said issued shares then held by such persons respec- tively, and that the shares so allotted shall be treated for all purposes as an in- crease of the nominal amount of the capital of the Company held by each share- holder and not as income, and further that such new shares shall as from the 1st day of July 1956 rank for dividend and in all other rcspects PARI PASSU with the already issued shares.
"If any member would be entitled to a fractional share the Directors in lieu of issuing fractional share certificates will cause the whole share to be issued to a person or persons to be named by the Directors and such share shall at such time as the Directors think fit be sold and the proceeds distributed among the persons ontitled to the fractions making up such share."
2. "That in accordance with Article 11 of the Articles of Association of the Company there shall be offered to members who on the 15th day of March 1956 aro the registered holders of the 3,500,000 fully paid-up issued shares of the Com- pany 1,000,000 shares of the Company of the nominal value of $10 each at par (auch nominal value being payable in full upon application on or before the 1st day. of July 1956) so that each member of the Company or his approved nominee shall be entitled to apply for and take up two new shares for every complete Issued. soven shares then held by such member. The shares so offered shall rank for divi dend as from the 1st day of July 1956 and In all other respects PARI PASSU with the already issued shares.".
"If under the terms of the offer any member would be entitled to a fractional share, the Directors, In lieu of issuing fractional certificatos, will cause the whole share to be issued to a person or persons to be named by the Directors and such share shall at such time as the Directors think fit be sold and the nett proceeds distributed among the persons entitled to the fractions making up such share.”
"The Directors will dispose of any shares offered to members in the event of non-payment therefor by members or their approved nominees on or before the 1st day of July 1956 at such time or times in such manner and upon such terms and conditions as they may decile.".
It is most important that any persons who have purchased shares in the Com- pany but are not on the Register in respect thereof should, if they wish to take advantage of the offer, present their transfers for registration accompanied by the requisite share certificates on or before the 1st day of March 1956.
The offer will be made by notice sent by post to each shareholder specifying the number of shares to which each shareholder is untitled and such offer, if not ac cepted either on behalf of such member or his nominee on or before the 1st day of July 1966 will be deemed to be declined.
AND NOTICE IS FURTHER GIVEN that the Register of Members will be closed from Friday, the 2nd of March, to Thursday, the 15th of March, 1958, both days inclusive,
Datod Hong Kong, this 17th day of February 1956.
By Order of the Board of Directora,
HFELL,
retary