THE CHINA MAIL, TUESDAY, FEBRUARY 21, 1956.
TRADE and COMMERCE
SECTION
Macmillan's Measures
Measures May HONGKONG UK GOVERNMENT STOCKS
Backfire
BURDEN NOT BORNE
BY ALL
ECONOMY SECTORS
From Ronald Boxall
London, Feb. 20.
announced
The economic measures last week are the most drastic taken by any British government to combat the recurring bouts of inflation that have bedevilled Britain since the end of the war.
COPPER PRICE RISES
New York, Feb. 20.
Phelps Dodges Corp. announced today IL har raised the price of domestic electrolytic copper three cents to 48. crpis a pound, effective tomorrow,
This follown similar action by Anucceda Co. last Friday-United Press,
WORLD
COTTON
MARKETS
New York, Feb. 20. Cotton prices today settled back irregularly
The shocks began on Thursday when the bank rate was hoisted to 5% per cent after a buoyant start. and continued the next day when the Chancellor of the Exchequer announced a series of further measures designed to stop the upward march of prices.
To the highest bank rate authorities Britain has hind sinee the deposes. pression days of 1931 tight squeeze on bank
Mr Mucmillan
these
weapons to his
Ballonary armour:
and the
for building
1311-
initial gains up to $ a bate were gradually whittled down os traders breuine more CHEL- | tious pending developments on farm legislation.
STOCK
Advance Continues EXCHANGE
On Wall Street
New York, Feb. 20. Stocks extended last week's advance in brisk trading early today.
While goins generally were: ifmited to fractions, there were some rises of a point or more. and u few special Issues went sharply' against the trend.
WORLD RUBBER MARKETS
Long Bell Lumber was out- standing
the latier. among dropping 4 points to $5812 after its recent wide gains os Congress was urged by Sena- fora to investigate what they called the monopoly uspects of a proposed merger of Interna- tional Paper Co. and Long Bell. 145 pointe lower with sales of
There were some soft spots in
the oils, with Texas Co. of point.
Closing Prices
Albert Chernienks Allis Chalmers American Melat American Smelting American Tel & 2nd American Tob Anaconda Cepper Annen Steel
attimore & Ohio
Bethlehen Sterl
Canadian Pacific R
Evening-up operations by the
March Spot
before, delivery first notice day C Thursday provided one of the trading Karture int the farm legisla tion picture which looked more ever to Some are used, than
Chrysler Motors observers. They felt unless Con- gress can evafze legislation ac-
Consolidatest En President, or Cuban Amer, Suga reptable to the unless
Dapont de Nemkats administrallen artean Kodak the changes its present views, there General Electric might not be any effective General Foods..
General Motors Gendyeur Tire Int Harvester International Nickel In Tel. Tal Rennecolt Copurr
Loews Incoen. -
į
it
A much bigger burden fall.on credit. has now added industry and the general public.
disin-The nationalised industries
In cut their capital expenditure by £50 million below what was Cuts in the subsidies on bread orginally pharmed in their deve and milk, which mean that theselopment programmes. And pri- staple foodstuffs will cost more; vate businessmen will And fighter restrictions on hire pur-dimeuit as well as more expen- chase; abolition of the invest- sive to @nance their plans for ment allowances introduced two expansion. years ago to encourage invest- ment in
plant new machinery and the reintroduc- lion of the less powerful. In- centive of initial allowances; and cuts in capital expenditure the government itself and the nationalised industries.
But Why?
and
Loans Harder
Apart from higher interest by rates that will come into
forea
leh latim of all.
Others Stubled whether any legislation could be approved in tit! to affect the size of the ckheed Aircraft aerenge planted this spring. The spot March delivery
1 Star Cementi scentamery Ward National Cash Reg
New York, Feb. 20. The No. 1 Rss rubber futures contract today closed 107 to
411 contracts,
The standard contract close! 85 to 133- points lower with sales of 22 contracts,
reflected the The weakness combination of Lower Lon- den cables; 2. Further labour !
$ 1097% cul-backs in the automobile in- dustry: 3. Unconfirmed reports Shirt the British government !
4 its 'stockpiles; may lower Ensiness at Singapore over the weekend.
May
July
(From Our Correspondent)
Business done
on the Hong- kong Stock Exchange this morn-
ing amounted to approximately the morning's transactions:
$750,000. Noon que ations and
SHARES BUYERS SELLERS SALES
BANKS
UC Bank
INSURANCES
Union Underwriters
Dock
Provident
1170 136 1975 30 1763
י'
K
AND OILS
POST GOOD GAINS
London, Feb. 20.
· Stocks closed mixed in fairly quiet trading which saw British government stocks and oils post sizable gains on the London Exchange today.
Professional buying
the i
Gold #hares opened fruciłonal- government stocks pushed them | ty higher, then cused on profil- Thend by as much es 17 sáng), taking. War Loan gained that amount, while olit Consols and Daltons advanced about 12 shillings.
in
Olls found κορά densund after a quiet opening, and 50 T5 Royal Dutch jumped nearly £11, Shefi Trúnsport helpeil by the advance with
a nh about three shilings.
1000
1.10
DOCKS, ETC. K. Whart
71
14.70
Wherloak
LAND, ETC.
0.00 100 8.60
020312
(New)
Humphreys
0135 1300 it di 19.0U
1,00
30 604
1 Ltd
Really
A... Rubber 160 173
w
RUDBER
UTILITIES
Train
20.20 1000 (4 25.10
50000 23
Star Ferry..
143
50
200
142 144
Y'inati Ferry
107
100 v 105
C. Light (0) 23.00
200 k
Light (N) 19 19.40
Electric ..... 40% 43%
0.00
313% 3315
Macao Electric
Olds New... 0.10 Telepho "good
INDUSTRIALS
Cement
STORES, ETC.
Wation
000 or 21 no 600 or 30 300 f 10 100644 1500 41% 2000 v 43%
400 10
Observers formed the market **nervous" in the romewhat wake of new government anti- Inflation mensures, and in dustrials failed to make head- wny.
Solid Advances
However, rises of a shilling or came in sonc :sues. Courtaulds, Imperial Chemteuis and Vickers -all staged solid i advances, but Rolls-Royce slidded more than a stilling. Household appliance and radio. television shares weakened.
German bonds tell heavy sell- ing with losgep of £1 najnerous, Japanese Hans also were marked 3314 391% 3000 33 town sharply. Tokyn Electries
1600 a 29.75 | lost nearly 23.
1970 T ' 13.40
300 12,41)
Financing German Markets
Hamburg. Feb, 20.
Coppers went aliead, with Rhokona and Ithodesian' Seter- tion Trust sparking the advance. Dollar stucks were mostly higher in quiet dealings.--United Press,
LONDON METAL PRICES
London, Feb. 20. Met prices closed today in sterling per long top as follows*
Copper, spot Sinunth
Load 2nd half Feb. May Zing- 2mt half Feb. May
buyers seller.
404
406
302 394
121
121
1187 $179
101 10124
003
07 —United” “Press,
NEW YORK METAL FUTURES
New York, Feb, 20. Prices of metal futures closed today is cents per Ib; as follows:
Lend
Tin
Z.the
February
March February Marcli February Murch
Copper February
March
13.35h
10,30
90.50
10.00
12.15h 49.00 40,00b
United Press.
P&O B.I. E&A
$41
P
731
17
117
1.
1-5
-137
reported Importers weights" on shipment offerings; but at prices too far above A workable basis. One dealer estimated Singapore would have 10 come down 21/4 cents (American pound
funds) meet on basis.
COTTONS
to
Textiles
II.K. & F.E.
Invest
0:10
11.30
291 11.40
Factory and other consumer, buying remained fat. Spot No. 1 Rss was quoted nominally 33% cents a pound.--Futures; Contract No. 1 Ess (old)
March
3....
-Septenzber
December
21.63 30.75
491
10
Standard contract (now)
34%
147%
March
12.31
469
May
22.03
July
32.00
re
STIVA
September
31.45
December
3055
bales.
March
20.6km
100%
and Volume
APEN
interest Standard Oll of N.J.
521
SINGAPORE
137
WCTO in If a businessman decides and spite of all this to go ahead Month
100
with development plans he will March
Budebaker-Packard Carp
1
Swift & Co,
401
Volume.
Texas Co.
13
20,200
Union Carbide
10015
10,400
Union Pacific Railway
175
10,300
207,700
68
10,200
261,500
10,000
215,000
demand
вот
fower
3,100
30,200
0032
2,000
50,300
The competitiveness of West German exporters in promising markets overseas depends on an Improvement in export financing Dr possibilities. according to Franz Bluecher, West German Mer
lower opening
Vice-Chancellor, speaking at a market teadled on short cover-
Hamburg meeting
of for
shipment. February fing
exporters, Prices cused slightly toward the
proposcu to expand the clogs and there was no par-volume of credits available for ticular
by 0512 grades.
the
hore
"CORFU"
financing
the
8:00
17,000
112,300
1,403,300 bates.
NEW YORK ·
372/ United Press.
** Pacife Gas & Elec.
Republic Steel
by following the increase in the wed narrowly around the National Lead
bank rate they will be de-355 cent level. Leading spot New York Central prived of the tax free allowance interests were scaled-up, sellers Dus Elevators Con new Investment in capital supplying routine trade de- Pat American Airway
equipment that they have en- mand. Open March contracts at Paramount Pictures joyed for the past two.
years. the start of trading today totall-Radia Corporation The first reaction of the Bri-The
initial pilowances which jed 142,200 bales. The certificated Smelnie Ol tish public was one of bewilder-merely slow down the rate at stock
26 bales to 10,140 Socony Vacuum ment. Why did he do ? is the which tax is paid when new in-
Standard Brands Sundard Out of Ch!- question on everyone's lipa. Mr
Yesuments are undertaken are a
Standard Oll of Ind. Macmillan gave his answer In
minor compensation. these words: "There is general combined that the agreement demands
consumption
of Investment
are growing
fast for our economic health. And it harder to raise Joans July.... This had held back our
(11
Open interest
142.200
14.600
Prices of futures closed today
| Vatted Alteraft
US. Gypsum
18. Rubber
US. Smelting
US Steel
Warner Bros.
Westinghouse Electe Woolworth
ux-elther from the banks or the October
Deventer swollen ports,
Imports.public. Mr Macmillan made sure
March forced us into balance of pay-of this when he decided that the
May ments defleit, helped to reduce | stueeze on the bank advances July
and our reserves by a quarter
will continue and
Total at the same driven 197 our doinestie price time Instructed the Capital
Issues Committee which level."
with this problem,
vets all applications to raise public loons
to adopt a "vigorously critical attitude" to applicants.
all
4
as follows:
Spot March
But if businessmen will and it
May July
Ocluber December
Moreh May
July
No one who has watched the present economic crisis will quarrel with Chia analysis, Something had to be done and done quickly. And of course there are only A limited more difficult in the future. to number of ways. open to Æ add to their spending by bor- Conservative Chancellor faced rowing money
so will the general consumer. This is to be hy increasing the amount of down payment re- |quired when goods are bought on hire purchase. Everyone who us goods this way will, In the the cash price before he future, have to pay up to half take them home.
I would be easy to late Mr ensured Macmlitan's measures one by one and make out a plausible argument why they should fail. But the programme is intended to stand as a whole and this the light in which it should be
Judged.
Keen Disappointment
Other Mistake
спл
NEW ORLEANS
38.500 33.77
Prices of futures closed today as follows:
spot March May July October December March MDY Juty
tho
The main criticism of The first point to make then is that Mr Macmillan has rẻ-
government's new measures for all the that the main burden has been once and
f Jected
return
"Sorinilst methods of ecmbal- unequally shared as between ting inflatico. There is to be to the public and private sectors of
to. import
the economy. No one denies the restrictions and building controls. Economic need to cut down total consump
anyone purists will welcome this, even on but neither will
measures which though they may regard the hire ake kindly
while restrict private spending purchase measures as evidence
leaving the government's own of the
government's Jack of
vost expenditure virtually un- courage in its own convict.cos.
senthed. This is not to say, however,
Mr that the Chancellor's programme
in Parlia-
mistake
گراد
Macmillan's other
is a psychological one.
will win general approval. Even He cannot be blamed for mak- his own supporters ment will feel keen disappointing his announcement as drama- ment at his failure to make any tie as possible in order to make significant cut in the govern the maximum impact on public ment's spending on
current opinion. The British public un-
doubtedly needed
to a shock consumption.
bring the truth of the situation Estimates for civil expendi-home to thern. But the cuts in ture during the next Onancial |subsidies en bread and milk may year are actually £112 million be a shock that will backfire higher than the original esti- on the government.
Mr Mac- mater for 1955-50,
milian claimed that this, nt a Antagonised People
period of higher coste,
repre- of
sented, a fall in real termB government demands on nation-
Granted
the subsidies Are
LIVERPOOL
AR68
32.09
31.80
10.00
KO
Ford Motors Record Profits
Detroit, Feb. 20.
Ford Motor Co. reported.
tonight it earned its big- gest profits in history in 1955 in cracking the com-
Future closings Apere:
No rubber per lb. Mar.
เ
100-102 Apr. 1009-101 May unyuoted
No. 2 rubber her ib. Mar. 101-1011
No. 3
No. 4
Spot rubber, vabated Blanket cre
Nu, 1 pale crepe
..
LONDON
10024-101 0040-00 10214-10215
04-60 11395-11625
The market was weak with spot queled at 30% pence per
b. Prices:
No. 1 spot. 1944
Settlement House term:
30-30%
Mar.
Apr./June
July/Sout
Oct./Dec.
General markets, cif hands, port Fab. Alar. Apr.
2011-
203-7827
Estale crepe unquoted.
United Pre-1.
pany's all-time production New York Sugar
Future closings,' In pence per record lb. were as follows:
Oct/Nov
set in the days
when the model T. Ford was the king of the high-
Market
New York, Feb. 20. World No. 4 sugor futures closed today unchanged to point higher with miles of 20 contraris,
export
the Ausfuhrkredit Company, West German export financing bank.
further He
suggested the the reorganisation of the Export Hermes Bank for state guarantees by adding private banks as partners of the Hermes Bank.
Dr Bluecher also thought. for- eign loans should no longer be refused to be accepted. China Mall Special.
Singapore
Stock Market
Singapore. Feb. 21. Brokers today
quoted the following stock prices:
Opening Batu Lintong Rubber Co. Ltd. $1.75 D
Borneo British
Petroleum
41/- .Byndicate KKK Smelters Consolidated Tin
Ord.
Fraser & Neave Ltd. Ord. 81.85 Fraser & Neave Ltd. 7
'curn, pref. . $5.05 Hongkong & Shanghal Bank-
ing Corp Hongkong Tin Lid..... Kemons Ltd.
$40
8153
Luns Rubber Estates L. 42 Malayan Breweries
COMPANIES
PENINSULAR & ORIENTAL S.N. CO.
PASSENGER/FREIGHT SERVICE
Outwards "CANTON" "CARTHAGE" "CHUSAN"
Leaves London
Salled
0th February
1341 March
27th March
s Hongkong
4th March
2nd April,
13th April
30 April
Via Southampton, Port Said. Aden, Bumbay, Colombo,
Penang & Singapore
Jonewords
"CANTON"
Leaves Hongkong Das London
om March
"CARTHAGE" 5th April
"CHUSAN”
"CORFU”
Apro
4th May
1911 April
7th Mas
47 Mny
4th June
Via Singapore. Penang. Colombo, Bombay, Aneh,
Part Bald London
* Also Calix Marseilles.
"SUBAT"
FREIGHT SERVICE
Fame 28th Feb. for Spare, P. Sweiten- ham, Penang, Aden. Port Sold. Cenon. London, Hamburg. Nats terdam & Antwerp. fram V.K.
"SHILLONG" dar
for Japan
0th Mnr. walls B Mar. With liberty to fall at Belawan before or after Sirails Ports and at Bombay if inducement offers, Tanks available for carriage of Oll in Balk, Space for retrigerated cargo, Limited Passenger accommodation
BRITISH INDIA S.N. CO., LTD.
1830 A HUNDRED YEARS OF SERVICE-3050
"SANGOLA”
de 27th Feb.
sedis 2nd Mar. for Japon "SIRDHANA" salle 3rd Mar. for Kobe "WARORA”. Kails 16th Mor. for Singapore, Penang.
Rangoon. Catentia Chittagong
Old contract
Mar/Apr.
20.03
way.
May/June
223.20
July/Aug.
24.29
New contract
the
May/June
30.25
July/Aug.
20.00
20.03
Dec/Jon.
20.10
10
Екурилл Катлак
after
Mar/Apr.
36.15
Ford Henry
Second
New Serandah releasing highlights of the an
"1" |
Ltd. nual report which will be made
Petaling in tet Domestle No. O sugar futures Raffles Hotel stockholders in the latter part of Merch Bold
tax, closed
to point Singapore Cold Storage unchanged
con Souin British Insurance Co. profte in 1985 were 437 mil- higher with soles of 10
almost double tracts. lion
dollars, those of 1954. Earnings were equivalent to 8.19 dollars per shore.
$3.50
Rubber
$1.70 54.03 ed
$2.35
81.46
$27.50
Straits Trading
620.50
Straits Steamship
$12.65
was United Engineers Ord. either Wonrne Bros. AVINIT
Chine Mall Special.
$3,50
"ORDIA"
AT
"ORNA"
"ORDIA"
unavailable--United Press.
Sao Paulo cotton prices were
London Foreign Exchange
New York
Montreal AmsterdamT Brunei Copenhagen Frankfurt Lisbon
al resources. The rise in money difficult to justify at a time of Milan terms, ho anid, was more than fulk employment and high Paris accounted for by the increases wages; granted the cuts will Stockholm In the cost of education, thesave the government £38 health services and the armed million a year, But in practice fcrces" pay..
Bigger Burden
all that happens J that this amount, will be passed on
10
the epnsumer, the cost of living
London, Feb, 20.
2.30-11/16-2-8674 2.0015-2.80% 18.0231-10.627 139.47-139.50 19.4335-19.44 11.724-11.721 80.15-80.29 -4758-1750 0333-903 19501-14.00-14 12.34-1133}
Zurich Other were wichanged
United, Prows,
will. fire again and trade union-New York Foreign
more
Exchange
isla will be presented' with But
clear that once |reador made excuse for prossing again the government has placed claims for still higher wages, the real responsibility for cut-
down
оп consumption
One would feel much ting everyone but itself. True contident about the outcome of hopes to cut its own capital ex- the present battle' aguhast India Canada penditure by £20 million. But tion if tho Chancellor had not It ecems that the main redue gone so far out of his way to tions bees will be effected by andgersiae ipo people whose co- New Zealand keeping an oven tighter rein on operation
Ioria... 40
England
New York, Feb, 20.
11.004/20
official 30-day, fulLÁTOR «» " 'po-day' futures
he urgently needs.--- locat Government London Express Service..
South Africa
athers were
unchanged.--United
In carninx its highest profits In history Ford said the com- pany told the public how it did in the previous year.
Foundation
Before the Ford Foundation put 10,200,000 shares of stock on public salo last month, Ford was a privately owned concern which could and did keep brisi- nesy affairs a close family secret,
In December, in a Block sale prospectus, Ford released figures on its profits and losios from 1940 through the first nine
months of 1054.
Traders sald there hardly any activity in market to develop a particular trading feature.
Futures:
Contract No. 4 (world)
March
May
July
Sept.
CHICAGO GRAIN
PRICES
Chleage, Feb. 20.
Prices per bushel In cents:
4.20
Del.
320
March Spot-(cents per
Cuba)
2.37
Wheat, Nu. 2, xed
Ib. fob
Boot
3.30
Mar. 22011(ii) ZITAILS"
MAY
Contract No. 0
Sepl
Nov
May July
$42
Corn, No. E, yellow
Hpot
Sept. Nov.
3.50
Mar,
8.58
MAY
Spot-jouaita per lb. clf NY
July
wx-duty)
5.40
Hepil
-United Press.
Nov.
Byt
MET.
May
Mer
MAY
soybeans, No. 2, yellow
Buslhéar wer done in the local: Maes
market: this May
Emy
In smashing its all-time pro- Exchange Rates
duction and proût records Ford sales pasted the billion mark
In 1950 for the first time in
history
Salon totaled $5,694
morning at the followi us dollár (per sh): taxes - of $427,000,000) was 33: Marling Kota ROME
000,000. The nei :: proft after
1237,800,000 netted in 19847-rim teal (por 100)
Toddzialer Fupiah." (per · 100) United Prekir.
Singapore tankla
28.00.
$12.00
Unlled Press.
P. & 0./B. I, JOINT SERVICE
dae 24th Feb. from Karachi & Umn.
DAY
For Japan
galls 26th Feb. 4 th Feb. from Dombay & Karachi sails 27th Feb, for Japan sally 20ths Mine. for Bingapore, Colpinba. HOMHAY, Karachi, Bas- tak, Khorramaliar & Kuwall....
EASTERN & AUSTRALIAN 5.5. CO., LTD.
"NELLORE”
"NANKIN"
Atta 4th Mar. from Japan Arlin 6th Mar. for Bandakın, YLABAUL,
Bra Adelaido
Sydney, Mel bourne
dule 1 Mar. from Australis -alls 18 Mar. for Japon
All vessels have liberty to call at sny parts on or off the route & the route' & sailing, are subject to change or amendment with or without notice,
For full particulars apply to ...- MACKINNON, MACKENZIE & CO. OF HONG KONG LTD. Telephone Nos. 27721-4.
12.14h