WORLD RUBBER MARKETS
New York, Mar, 20. The No. 1 Rss nubber futur entine day closed 5 10 1 points hightr
with sales
of the
The tand, et Come 15
anged o PO mts Wh ith nien vi live conlt Bela Achrity continued t pered, dator. el, by the fen uptons in transit and City
FROW-BIOFIN,
hola
11
aluab statuline s ved in the primary markets
f
Vert ne
PyAmy 121lere mundswell. et n
Cab Spot Na t
podnia!ls 344, mal
spekty
12
TRADE
THE CHINA MAIL, WEDNESDAY, MARCH 21, 1956.
and
COMMERCE
TAXING OF CAPITAL GAINS
What Happens NY COTTON
In America
HONGKONG STOCK EXCHANGE F
(From Our Correspondent)
Butts done on th: Hong-
ing mounted to approximately $12,000 Noon quotations und The murtung's transactions
NBARES BUYERS HELLERS SALES.
118,4
Bally
1:
►
W
Dk Bank
P
ta XD 20
FAST ISAN
Die
1ster wlangan DIPPING,
1.
No
4. Its coabiand
1
,』:
Standard Cont
..
AMSTERDAM
DORKS ET
K Whatt Prodat e
LRT10
25 16
1**
11h Xu Frably
10 10 11
150
1425
>
1 60 11 MM)
1 (41
* MILITIES
3. XI
22 mm
Vat Ferey
TW2 Jt+L 24K)
103
PC 12
Let cou Put go to Roun
St C.
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Janea
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SINGAPORE
After being steady dur nyt the
the
FIRE AN
t
h4:
slugtly on some selling from the Federation At
1“、༽ས hrwer
abb
were well
offerings There was some sm! factory lever lf-tuko grades Fulme, closings were
and Trade
No Crabber per i Ap1-935-96
X A INDUSTRIALAI
By J. KENNEDY MELLING
London, Mur. 20.
the United States, the taxation of capital gains and losses is an established part of the fiscal system. In Britain, it is a matter of acute political and economic controversy. Some of the outstanding facts about the American system can best be brought out by means of
question and answer.
are
Q. What exactly is a capital; the old house (that is, the profit gain or loss for purpara of tax you made compared with its In the United States?
volue when you acquired it).
Q. What exactly
theac "Axing - up"
Expenses — Juar necessary repairs?
A. Any tries that axes my the presided
לנו
pince ready for sale, property
A The Rain or loss arising from the realised side or
**** chonge of vertain property.
What sort of property? A Every except is Tags which arAS being ma-ental steme Thus as an Bable to farmature bonuse
Tax
property, when you seli
The NP not Metgeable on prepety
te DA but was...
:lock-in-trade. lanel and handlings But bund-
21
fuse to pay capital-gains
if securities St the busines unie
I actually dealing in seemalies of herking
in other fing, and so forth,
If the land
i belonged to # prirate
or
building 1.
I
this lar?
exproses pre neither other - wise deductible Imost decorat- tions are "personal," of course) nat sapiin! improvements (whiel, ine added to the basic valimi.
Gains Added to Income Q When tier Chipital have been serviced ott at what rate are they ared?
1
<
A. Broadly meal.ing. taxably capital got are added to diary use for the year, and whole taxed at the sqari grashuated males corresponding
and surtax be our Income Tax But, as has been alroudly plained, only half of the King-twom empital
is honda u mo be a a capital axable,
for purposes of
fattan
#tel
ace
Moreover, Mafia ne long-term
chofer have you
of
I
A. Certainly a private houseMethod. i les tax falls due by
private car or yucht, jewellery, and personally owned stocks and
shares rank as capital assets
:་་
*A
axxvi
10
STORIES
1.T Buy Warme XD
1434 Ix་
1320 102
H
100
1 4 Fre COTTONS
J-41
10
ELLANEOUS
V
410
6 70
Allied
535
Long-term & Short-term
Q How in the tax applied? A. The American system sets mut to distinguish between long- term and short-term gains when rapital assets are realised,
NEW YORK METAL istmetion rests in whether the
FUTURES
20
New York. Mar Priers of metal futures cloneri fellows in cents per
May
No 2 other bel
201
N
Jane spotr Aur 11 0-0014
937- +1.05
T-08 529-M
friday a
113-114
16. J 3.cart
March
Apert
T'pu
Mach
Aurth
tracy with
Yos
Makh
April
No 1
Spot rubber anbaled
Manket eletr
No pale repe
LONDON
The make Spot quoted al
Piters
Steen house betitus
No
Apri
Mass
gest
Juna
Apr 1994 wa
Juoks, Magas
En Me
Sinult kaakels
Aut
May
Fatales
W02
29 pence per
20-263 28-2
2011-1
27-29
-771,
ms 12992 1
21-2 20-2841
Thick
Thin
Prese I'l
Upper Maret
April
13 701+
נד 15
taxing at 25 per cent, the full capital gain that is, before the deduction of ofie-half).
then
you can choose the less unerous alternative.
FUTURES
IRREGULAR
New York, Mar. 20.. Cotton futures today turned irregular after buoyant start, although ac- tivity slackened as prices settled onto lower ground.
At the close the list ruled up 4 to down 27 points. Opening prices were up 22 to off 2 points. New Orleans closed up 5 to down 27 points lower.
Post-opening, uncertainties re- neeted a confused viewpoint on the status of the cmnibus fartn the question about bill, and whether the unfavourable ten- tures would be accepted by the President.
SECTION
Page
HILTON HOTEL New York Market
HILTON HOTEL
FOR COLOMBO
Colombo, Mar. 20.
Five years of negotia. tions between the.Govern- ment of Ceylon and the American firm of Hilton Hotels International cut. minated
the today with announcement that a 300- room luxury hotel will be bulle here at the cost of 18,000,000 rupees,
The structure will constructed Aero Governor
on a
be
three-
behindt
the
General's real- denec. of Queen's House, now being built ag Marine Driye.
the
American architects wi!! arrivo hore
Boon to start working, with the help of local
the designers,
The
chtire
on
blueprints design will embody ancient Sinhalese architecture but wilt
the mogl W provide modern in comfort. It will have
tuudio,
ก Assembly swimming pool, stores and aremmodation for foreign embassies.
he air-conditioned.
The entire structure will
Tho Governnicul
On
Ceylon will share in construction and mainten- ance of the hotel, - United Press
of the
The Senate-approved bill, pro- vading fer higher supports Colton, now goes to the House, where Agriculture C'ominalice Chizman Mr Cooley will hear testimony of Agriculture Seert-
unless
Benson
כלה
F
the
tary Mr
before Home-Senate conference is held on the measure,
Senale leader William Knowland, after a White House conference today,
sald President will veto the bill Senate-House conference.
it is "modified" in o
Market experts said interes continues
on to pivot mataly Washington developments, back- |
the usual run of grounding
shaping infucaces like προς
developmento, market textile market news and in- terest in the preliminary new crop picture.
With companies, the luasca me taken into account
at full price value. the net short-tería gains The
are laxed at the regular rates, am on the net long-term gains the company has the uption of being taxed either at the re- gular rates cr 23 "! cent., whichever is lower.
boyong and sellng of the about
Iall
within
months' 51X interval, or longer. The idna is to separate quick profts Toe proft's sake from the increased
of something Vahur
you have held for some tune.
Q. 10000 ! make?
12 at
12 4217
62.366
62 436
United Pres
Exchange Rates
150mins
unoŋetal
Morinat
Alone wira
The val **inge Merkel
at tip following rates.
its dollar per Bla stephus dea per EU Australtun autes spell funestan rupiah grep 100) Star Heat coer 199) Singapore (Stadt)
Brisk Trading
Tokyo
5.85
15 BO 12 42
When the capital gains
Q. Since capital pains appear
to be created rather better than other income for tar.
can the ixpaper
some of his A. Just this You add the, income into captial gains - for
and various prouts
Josses 10- this purpose? gether in each category, to And A. Yes. For example, farm- the net short-term capital gainers claim capital-gains treat- ur sales
or loss and the net long-term ment on timber sales. capital gain or loss. Then you of anharvested crops with the compare the two results.
land, or on ivestock held for Suppose you have a nel gain | twelve months
Or more
on the short term and a net loss breeding, draft, or dairy |||101*= on the long term, but the gain i poses. is greater than the loss:
a
Huge British Steel Output
Irregular But Industrials Up
New York, Mar. 20.
Irregularity came into the stock market today but a number of top quality industrials scored gains large enough to lift their average to another all-time high.
Among the best performers, Bethlehem Steel ran up 3% points, Standard Oil New Jersey 2%, Allied Chemical 12, Johns-Manville and Procter & Gamble 2% each. Union Carbide was 2% points higher.
Eric Railroad
Fantly Finance Corp.
total
General entrie
Ford Motor
The industrial average climbed Eastmna Kodak 2,40 points; rails up 0.26, and Paso National Gas
titles 0.02. Out of a 1,103 issues traded, however, 528 were lower, 451 higher.
Turnover picked up a bit over yesterday.to 2,000,000 shares from 2,570,000.
General Poorts
Generd Motors Gen. Pubs, Well.
ten Co
Goodrich F., G.
Goodyear Tire
Heyden Chemical Steels were among the best of Homsiake Mining Co The grams. Along with, Belle-gerwoll-Rand
Inland Steel, Co !hers.
Youngstown Sheet und Interchentral Corp Tube ran up 5 points, Crucible To Business Minchines and Intori 12 "rach," Republic | ful! Harvester and Armco around a point. Sicet improved fractionally.
Wide Gains
US team! Nickel
There were wide gnios in several special situations. Inter- Business Machines national spurted 11 points 30 $138 as directors proposed 5-for-4 stock split and Owens-Corning Fiber- glass added a point on a two- for-one split proposal.
London, Mar. 20.
: In the rails, Santa Fe climbed British steel output in 1868 14. Southern Railway 19% and will be almost double that at Union Pacifle 1%. Baltimore world | Ohio, however, lost nearly a the end of the sccend war, Sir Ernest Lever, president point and Louisville and Nash- of the British Iron and Steel ville more than one.
12 The Federation. declared
general meeting here
Opening
bale on early new crop dellveries, reflected an overnight accumulation
Annual guins exceeding $1
today.
the pro-
He added: "Today of buying ordera
on the Senate vote approving the farm bill with high price supports.
The
certificated stock was unchanged at 12,783 bales.
and open
Volumo
inlercst
Open interest
370,000
were:
Month
Volume
fur
Mny
July
15,800 29,500
303,100
October
December
D.100 20,200
380,100
234,608
can claim
March
10,800
133.200
May
9,200
88.300
July
30,000
71,000
Total
128,500
1.039,700 bates
or
NEW YORK
Private individuals you
| lake the difference, which is a it on things like share options balance of gain, and the whole that their employers may grant
them; on share 17 20 of that is taxable.
bonuses dividends in the form of shares these are not taxed on re- ceipt, and are taxed as a capital
50
1330
On
Stock Exchange
Tokyo, Mar. 20.
Trading was brisk on the Tokyo Stock Ex. change last week for the third consecutive week despite a slight sag in the general prices.
If the net gains and losses are the other way round, that is if your net long-term capital gain is greater than your net short-only term capital loss, then you like wise strike the difference, but In this case only orie-half of it is taxable.
If you have net gains both on the short-term and on the long- term, all the former is taxable, and half the latter,
Negative Gains
i
Prices of futures closed today
Spol
40.30
59-64
if they are realised-on in centy per lb. op follows: deferred compensation, on lump- sun receipts under pension and ¦ Mar profit-sharing schemes; und in many other ways with their own rules of varying complexity. Bonus Sharos
Q. You mentioned dividends shares, In the jorm of bomis. what believe the Americans stock dividends - Why should they be capital gaina?
the call
Q. What happens if ennial losses all together come
to more than the capital gains? A. Because they are regarded A. You can deduct the final as merely splitting your interest net loss from your taxable in-†in the corporation. The Ameri- cume, subject to limit: you can system allows you to invest securities cannot deduct more than $1,000, in companies whose but you can carry forward any increase steadily in volue, per-
Lo be deducted haps unused excess
through nat mylog from your Income within the dividends; then, if you sell
the next five years.
securities (or any
atock Q. How do they make out the dividends)
you merely pay
Q. The capital-gains far svema
fer or saic-1 mean, the thing balance gained or lost on trans- | capital-pains lax,
May
July
Oct
Dee.
Mat
May
July
NEW ORLEANS
Prices of futures closed today as follow:
Spot
May
July
Det.
Dag.
Mar.
May
July
LIVERPOOL
Future closings, in pence per
The week opened sluggishly, affected by labour strikes but by mid-week the tempo had changed. Traders were encouraged by the bought and sold, like a house, to have a multitude of regala-lb. were as follows; strength of the industrials on the New York stocke market and the daily turnover suddenly spurted from 13 million to. 17 million and
on Friday 21 million.
The Daw-Jones average open- cd nt 433.31 yen and closed at 443.00 yen 136 yên lower than the
previous week's average.
closing
The leading shares of the week were the gift-edged issues which Anancial institutions bought en the busts of yield, Outstanding of these stocks were Asahi Karel which jumped to a new high of 449 yen and Tokyo Oatsu to 179 yen,
Moved Well
Iron, sice and ferro-alloy, electric machinery engine and
London Stocks Lack Sustained Support
London, Mar. 20. Stocks, lacking sustained un speculation inspired by the support, closed irregularly
shares also moved well mostly
favourablu trend In Japan-today on the London
Preparations talks.
was also houvy investors
companies. Nichido
by
corialn
these
wore
Iron Works,
change.
buying
to
Automotives were neglected with General Motors off 9% to 54814, Chrysler down 1⁄4 to $792%, and Ford off at $61.
lost
ductivity of our blom furnaces Metris, геседь favourites, and open hearth furnaces is
also
ground, Anaconda two-thirds higher than in 1940 dropped nearly 2 and Alcoa and output per man has risen ; point, by some 40 per cent.
"Good progress had also been made in fuel economy and, in accordance with national polley, the Industry is reducing its de mands for coul.
Bond volume
on
on the
the
New
American
York Exchange $5,440,000,
Volume Exchange was 1,280,000 shares.
Dow-Jones closing averages were: 30 industrials 20 rails
15 ulien
|Internɔijonai Paper
Int'l Tel. & Tel John-Manville Ca. Kana C. Power & Light Kennecuţi Copper
Liggett Meyers Tob. Co Lockheed Airrinti
Loews Incur. ...... Lone Star Cement Co. Louisville & Nashville li Lowenstein_fe_Bose, Meal Iron Corp. Minnesota Mining Mission Development Monsanto Chemical co
| Montgomery Ward
Moraron Ins
National Cash Reg. "A"
National Dairy Pron. National Lead
National Steel Corp.
New York Central Olin Mathieson Quis Elevator Pacific Gas & Elve. Parille Westers Cl Pan American Airways Paramount Pletures Parke Davis Co Penny J. C. Co. Ponn. Salt Co. Philip Morris
Procter & Gamble Co Pittsburgh Plate "Glam Publieker Industries Pure Ol...... Radio Corporation Republic Steel Reynolds Metal Shell Of Co. Saint Reg. Paper Sinclair Oil
Sacony Mobil
South Puerto Rico SugT Southern National Gas $12,08 | Southern Railway (Com)) 100.12 Standard Firands
07.10 | Standard Oil of Cal,
45 stocks
180.44
40 bondat
38.83
Comm. future price index survey Comm, spot prize index
next Moody's Index
150.00
131,5+
40940
"About a third of our output of
steel is now open hearth made in furnaces firext wholly by oll, andİ
a recent showed
that
the over three years the industry should! produce 16 per cent more steel with 13 per cent less of non- coking coal."-Reuter
Singapore
Stock Market
Singapore, Mar. 21. Brokers today quoted following stock prices:
the
Closing Prices
Alden Ing. Ac), Allied Chemsienis Alled Mills Inc,
Allis Chalmers
American Airline American Cyanamite Co. Am. Mach. & F dry. American Metal .. Am. Sugar Ref. American Tel & Tel American Tob. "1" Anaconda Copper. Armour MAN Baltimore & Ohio Bendix Aviation Curp Benguet Cony. Bethlehem Steel Hoetry Airplane
Opening Borden (The
P/L
Co.
8 21
110%
1515
Standard Oil of Ind
Blandard Oll of N.J. Sterling Dria Co. Stokely-Van Camp. Bludebaker - Fackard Bwift & Co.
Texas Co...
Tide Water Assn. Oil Twenty Century
Union Carbide,
Corp.
Fox Film
Union Pacific Railway
United Aircraft
U. 8. Gypsum
74. S. Line Cu.
U. S. Rubber
71. S. Smelting
20
U. B. Steel
Warner Bros.
Westinghotine Electric
Woolworth
United Press.
LONDON METAL
The tin
PRICES
London, Mar. 20.
market remained siendy this afternoon. Other metals were also steady. Prices closed today in stering per long tou as follows:
TIL
35.31
33.97
Bath Linthos Rubber Cu.
149.
$1.03
31.75
Briti Borneo
Burroughs Add Machine Canadian Pacifle R
31.00
Syndicate
42+1
Case 1. 1) Co.
31.03
Consiliated Th
Smelter
C. 1. T. Fiancial Corp.
31.77
$1.20
Ord.
27/30 Fraser & Nende "Ltd 'örd..... $1.75
Cat. Tractor
es
Selahuse Corp.
10%
Chase Marbat. Bank
Fraser & Neava 75" ein.
pref Bongko
$3.00
Chrysler Motors
Shanghal.
Coca-Cole
Banking Carp
0801
Colgate-Palmolive Co.
Hongkong Tin Ltd.
Commercial Credit
Buyer
Sellars
Kempas Ltd.
$1.12
Commonwealili Elec.
432
Tin sput
TOTY
Consolidated Edison
48
780
700
33)
Continental Oil of Del.
17459
Copper pot
$29
Rabber Ch
$1.75+
Crane Co. ****** Crown Zellerbneli
401
J-month
419
Lead and half ter
12142
Cuban Amer. Sugar
Juna 110
$2,40
44.00
23.3
Singapore Cold Storage South British
$1.50
Insurance Co.
$26,50
Strata Steamship
Unitet Engineers Ord.
Luas Tubber Esinter itd. Malayan Breweries
100 Petaling Tên Ll.
20
.
New contract May/June
May/June July/Aug.
20
New Berandah
24.00
Lid
July/Aug. Oct/Nov. Dec/Jan.
SAO PAULO
may have been changed mean- tions to keep it fatr: cors the Old contract Mar/April
end justify the means? A. Quite so: the original cost A. As
complications, may have to be adjusted for leading United States lawyer Improvements, It they have has written: "No successful more than a year's life, or de-formula for achieving the ob preciation-but note that depre-jective of doing equity and pre- ciation on your own house is serving incentive and at the regarded as personal and can- same time protecting the not be deducted.
venue has been found. Con- the Q. Supposing
original requently the history of capital- basis wasn't a cash price, but gains taxation has been a record the assct came to you by ex-of compromise and change with- change, or gift, or bequest? out satisfactory solution.
The Yield
zeld
re-
27.03 | Retics ifotel
Future closings, in cruzeiros per kilo were as follows:
May July Ottober December March.
tux
In
20,00
A. The broad answer is-take the fair market value. But there
Q. How much does the
tho the United States, are several exceptions to the
average price of 15/16 middling | general rule, some of which, if
A. Because it is not
charged cotton at 14 designated spot validly claimed by taxpayers,
be Enancially
ad-Reparately, but included in total markets was 35.63 cents. Sales can
12,332 income tax, the figures are not totalled
bales. United,| vantageous,
casily come by. The latest your
Pruss What happens if property for which they are available is is destroyed, or even stolen? 1851, Then, the estimated yield
very
Strail Trading,
Wearne Brow
t-curdly lexdly,
Mali Special.
New York Sugar
Market
future
to I
New York, Mar, 20. World No. 4. FUERE closed today unchangeil polni lower with sales et four
A. That's what is known as of bringing capital gains and New York Foreign tracts.
"Involuntary conversion." You losses Into individual Incomes Arst and your gain ΟΣ loss. was $800 million, which
Was which will necessitato looking
3.7 per cent, of the total Income-
to
property
Exchange
The domestic No. 6 sugar higher | futures_closed 1 point
to 1 point lawer with antes of New York, Mar. 20,
2.80-11/10 Ave contracts, 2.00-2.07 280-1/10 2.7014. 2.24-9/10
unofficial 30-day Tutures 30-day futures
Akteurpiln
at any compensation or replace tax yield on such incomes: for ment. A gain is not taxable 1: corporations the pures were gland official Ex-the property is merely convert- $330 million and 13 per cent.
el into simlitr properly, but if
The Royal Commission last money or diffrent property is year estimated the possible ylold New Zealan to get Industrials ended mostly un- received, and there is a gain, itin this country at £40 miillotte South Africa mangement control of cumon chuted but us vousolidated, is a big is the money an which would be about 311⁄2 por Pak
cluding Borax
la spent on some similar cent, of the yield
of incomo Pakutan Fire and Hudson's Bay, continued
tax and surtax. • Kurikimoto how small gains. Merino Insuria Woodwork
Your Own House
Q. Doem't the vleid vary The Jack follow-through in- Q. Hoid do the Americane very much from year to year? terest in the oil shares furnod treat profits on selling your own A. Yes indeed. In the slump But the most active of the some issues downward after a private hous?
years 1930-33, the field was wook
were the shares of firm opening and at the close A There is no taxable capital minus $430 million in 1941 Nippon TV, which at one time small losses dominated.
· old | alone '11" (as-minus $250 milion. gain when you sell your were as high as 1,000 yen, Rodlo British Government stocks house, provided you spend at Thore has beenib positive #161d| Tokyo which woɑred from 140 opened moderately higher," least the net mie, price, tear since, then, varying from -40110. younota held steady at 294 paved cold shares higher most now properly within a year of $1,320 million in the best
Overseas Investment support | "king-up expenses, on buying million in the worst yone yan during the early part of of the day under the lead of the sale. Il your new house docs. Variation in ridd rosa, me tha week but woskened intor Orango Fred State issues,
Iesu, you are fasted on the son why, the Foreign bonds were unchanged diteremeest VIRENG, Your ESATE Royal Comm
and Kento Haco Club.
010
Ajinomoto
and glowed as 202 ren, 2 point
United-Prem,
Cort
less than the previous, work- to fractions, higher. - United not be acel anymore, then (the country
A Prois,i,
wain, you wakiang/realised on /Laxaton
10
Activity was hardly broad
inarket enough in cltler develop a trading feature.
Contract No 4 (world)
2.7914
2.31-1/18 Futures:.
2100 2100
Untied Press,
May
Beptember
London Foreign Exchange
"Lordon, “Bar
July
October
Marchi
139
3.21
Diamond Alkali
Dow Chemleala Dupont de Nemour
3-month
Zine ad half Mar. 1021⁄4
June 100
----United Press.
Let US handle
YOUR PRINTING
Too many proofs mean time wasted..
We grasp the point at the onset and
ONE PROOF generally suffices.
Aftor that, our upstordato automatic
presses make short work of the job.
Lot 19
for your quote
current
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