THE CHINA MAIL, WEDNESDAY, APRIL 25, 1956.
TRADE and
COMMERCE
N.Z., Too, Fights Inflation
:
‘CHEAP MONEY'
ERA HAS ENDED
Wellington, Apr. 24.
an
Recent major moves in Government financial policy have served as a reminder to New Zealanders, now enjoying unprecedented high standard of living, that prosperity must always be dogged by its twin spectre, inflation.
To reinforce the effects of a stringent credit "squeeze," the Minister of Finance, Mr J. T. Watis, has appreciably raised
interest rates and brought to an end a 20-year-old Era of "cheap muney."
The Minister's Immediate wi was to secure the conversion of maturing loans worth almost
£60,000,000. His decision "meet the market would have been prompted to # large extent by the les Stra satisfactory
10
response to last year's national development loan of £10,000,000,
Govt Pleading
offered
on
thut! dis-
The rates occasion were distinctly advantageous as compared with
the
average yiekde un
parable stocks,
-
After much earnest pleading by the Government, which need- ed the money for 18s works PED-
gramme, the subscription Nats were nearly tiled, midnly from patriotle motives.
The pursuance of a cheap money polly after neçess to credit had been restricted wat maintaining
he has recognised the supertor Jogic of the Reserve Bank's attitude to interest rates, as op posed to thai held by the Treasury.
Imring quantitative restric tious an imports; and
Thiri, i Ropes to maltinin **LE
zlable reasonably
E- ternat price level" with 15 mdudum of direct controls Aspects, achieved
The last of the e price stability, wis during the second half of 1955 In that period, the cost of living Intex remained steady, while An average weekly
there was
rise of almost ten flings in This condition was in WATSON darra of being undermined by the spending spree, however, Governinent hopes to through the recent PRESETYO monetary measures.
but thes
To effect the desired balance
1,530 SHIPS BUILDING
London, Apr. 24.
A total of 1,538 miesaT] ~ ships aggregating 7,000,070
tuna,
under were construction throughout the world at the end of March, according to Lloyds register of shipinabalug returns for the first quarter of 1950, published here today.
The figures do not include
being vessels
bullt in Russia, China and Poland. about
whitch Information avallable.—China
13 not Mail Special.
WORLD
COTTON
MARKETS
New York, Apr. 24. Cotton futures today see-sawed
fol narrowly
lowing a short-lived open- in the overseas trading positioning buying
spurt in new
Me Walls estimates that it wil
be necessary to roduce Imports crop deliveries. by about ten per cent.
Intual gains up to 80 cents a British manufacturers will be | bale were gradually whittin the chief sufferers.
clown,
the market although The
when-
min is to nejevas the showed fresh resistance reiluction purely through the ever the st scared the per operation of the credit policy.vious close, without imposing direct restric- The final range ruled up B to ott 2 points. Opening prices
to 18 points. closan ol 6 to
Cries Of Distress
The Government's approach
were up
Orleans
points,
Preluminary new crop BC-
Wall Street Sells
Off Billion
New York, Apr. 24. Stocks sold off today at a valuation of more than a billion.
Eoriler, It was a generally Sinclair ou firm, moderntely netive narket Buy Mobilou with elected slocks continue strong.
Later in the day the market was seen as a routine perform- ance. Trading picked up a bit. There were one or two strong i
Union Pacific, up 1% to a new high at $100.
Steels were firm.
In
motors, Chryster dipped The to $70. General Motors
at $441⁄2
held Ford
wangent $50%..
edged up
and
to
The general run of oil stock! were narrow, 100. Standard Oll of California $104%. Texas Ca. 1⁄2 to $131 to $7244 on disappointment of dividend news.
New York Stock Exchange bond volume was $3,500,000.
American Sluck Exchange volume was 980,000 shares.
Dow-Jones
were:
backstripte
20 rails
10
3 Mocks.
4 bonda
Crunch
closing averages
Com future price index pot price Index
Closing Prices
All Chalicers
counts emphasised backward-American Smetin hess of
seed germination
becauso of hus on the įmany arens
casive rains, high winds
in
-**
was tolatively
artificiality which Mr Watts has now de! to the general problem created molished. lo doing so, accord- ing to the New Zealand Herade by over-sperarlingt
whole been favourably received.
The credit squeezi provoked unseasonably cool temperatures. eries of distress from those more Replanting will be necessary immediately affeeled, but the in
in various
places, private res conversion programme and the ports indicated, | raising of interest rates has met Nearby May The bank has beru seeking
with
almost universal approba- | stąpidy in the utrece of Rexible rates to support the
delivery notices. Today hap statutory reserve ratios
pened to be first tender day for ไม instruments for controlling
in dealing with the the
six month.
Intending credit, while the Treasury has situation will be watched with supposed tellers
13 much interest
deliver would in the months
postpone úction keep down the interest bill head - not only In New pending any awards made on
bids subinitted
for today purchases out of the govern- ment's plus stock.
been
concerned primarily
present about
£20,000,000-
With its
the publie tilt
broader
view of the problem.
the Reserve Bank has How won
the day.
Encourage Savings
While the immediate motive behind the
raising; of Interest
rates was the mplementation of
in
the biggest loan conversion pro- gramme
the Dominion's history. it must also be viewed
in a wider perspective,
In the Minister's words, the Government's Intention is "to of
The incasures
effectiveness of these
Zealand, but oversens as well.- China Mall Special.
London Market
Active
But Cautious
encourage Kavings Instead
London, Apr. 24, Traders turned cautious
spending." Too many people,
American Tel & Tel Amertem Tob. "B" Anaconda Cupper Armco Steel
Aernour
Į
Standard Olf of Ind
total
SECTION
WORLD
RUBBER MARKETS
New York, Apr. 24ja The No. 1 Res rubber futures contrnet today
closed 37 to 46 points lower with sales of 250 contracts.
The standard contract closed
Anglo-American Corporation
Mines Good
London, Apr. 24.
Quarterly reports published from the new
16 to 40 points lower with no mines of the Anglo-American Corporation Group,
sales reported.
་
The easier trend continued to reflect Jower. London cables
and the extended pause in fe-
tory buying Interest. Exchang-
the biggest South African mining group, were uniformly good. They contained · several encouraging features and no bad ones,
05%
751
South Puerto Rico Sugar Southern National Gas Southam Railway (Com.) Standard Oil of Cal. Standard Brands
30%
34
118
417
103
out
6d
ins of May and July contracts Welkom continued 10 climb Idon, suffering from the counter- for physical rubber acecunted back, and reported the best attraction of British industrial
quarter's for part of the activity,
its shores, Free Dealers
painted
Geduld. that record
Western Holdings and Vaal a physleni market lately has been Reels all showed progressive
development on State
40 130
120
2051
1803
0136
67
Standard Oll of Nă Studebaker-Packard Corp. świll & Co.
Texa Co,
Tile Water As, Oil Twenty Century Fox Film Union Carbide
Union Pheiße Railway
United Airernft
1.3. Gypsum
U.S. Line Co.
US. Rubber
U.B. Smelting
Warner Bros.
Westinghouse Electrio
penny-
A leading dealer said that he regarded current prices of gold running at a premium of 14 3D improvement. President Brand's sheres as very attractive,
but 044 24
cent over the terminal values were again better than that nobody seemed Interested market, whereas normally a %
one thousand inch
in them. If interest is capable 46% cent discount is the rule. Spot weights.
of being revived by any news of promising and sound mining progress, the development's res ports should revive it. If not, the Union and the market will have State to wait until the developments high values speak for themselves in terms of "in actual gold output.-China Mail
BAK
No 1 Rs were quoted normally
at 31 cents a pound.
Consumption
for
Agures March showtil a total of 128,135
00, including 78,501 tons
20%
57
West Va. Pulp & Paper Woolworth
-United Pro.
40
HONGKONG
Good Values
of Additionally, Free
for
synthetic and 49,534 of natural.
The February comparison of 50 120,104 tons included 76,937
tens of
synthetic and 50,077 tons of nutural rubber.
Percentage of synthetic over natural for March was 81.34 as compared with 60.3 per cent in February
Synthetic production March
reached a new high of 594,339 turn, Fair-sized quanti- ties in the shipment market, agents reported fale-remmills and sume sheets for Indonesia nearer in a workable basis, while sheet offerings from Siani were about
cent over Indonesia. Indonesia offerings, April-May (From Our Correspondent) shipment, cast and freight, in- cluded oue sh 216 at 30% cent; Business done on the Hong-twos at 30 and threes at 30% Chong Stock Exchange this morn- cents a pound. Futures:
ing amounted to approximately 12% $710,000, Non quotations and the morning's transactions:
203.30 174 ло
3.14
170 02
EN115
153 71
164 00
STOCK EXCHANGE
Lombard....8%
Allied Chemsida
New up
American Airline
$120
23
Ameriçin Cable & Raulo Corp.
American Cyananide Co....
No. 1 Rss
Am. Mach. & F dry. American Metal
20
43
May
D4
£60%
SHARES BUYERS BELLERS SALES
July
Sept
#1
BANKS
Dee.
30.00 30.60 30.30-05 29,70
TOL:
DO
HK Bank...
1070 IGUO
* + 1680
20-4
East Ara
Baldwin-Lima-Huit.
131
INSULANCES
Baltlinere Ohio
Untory
30
223 232
990
Standard contract
May
30.75
Bendix Aviation Corp.
July
30.00
01
Benguet Quic
2
SHIPPING
Sept.
30.10
Bethlehem Steel
10114
Boeing Alplane
Waterboot DOCKS, ETC.
20
Dec.
29.00
Mar.
20.00
Burden (The) O».
Burroughs Add Machine
Canadian Pacific R
34
K, Whart ... 1055 Dock
301% Provident (0)
SINGAPORE
14.20
Com 11. 1.1 Co.
13
Wheelock
Technicians
Cat. Tract
.. 403 320 2000 8:10 0.70
Celiese Comp
LAND, ETC.
10
C. 1. T. Financial Corp
4331
HK Hotel
11.80 14
Christer Motors
6912
HK Land
62 03 320625%
Coca Cola
Colgate-Palmolive Cu.
Humphreys
171
Ready
.......... 1.437 1/475 10,000 @ 1,49
Consolidated Exison
47)
RUBBER
Corninental Oil of Del.
1170
Crown Zellerbach Cuban Amer. Sugar Diamond Alkali Dow Chemtenis
A. Stubber 1,475 1,5015 60,825 @ 155 Ayer
5.30 49508.40
101
UTILITIES
62
Tram
€37%
221 22.70 1000 9 22/0 94002215
2174
Sor Ferry.
130
Y'me Ferry
102 104 hal 103
C. Light (01
2003
C. Light (N)
XD Electric
Bonus
nis..
Open May contracts at the start of trading today tomlied 173,500 bales. The certificated stuck merensETİ 74 bales from Monday's posting
11,013 bales.
Tu
Open Interest
175,000 293,000
Ale
Volume
May
22.400
July
20,000
Det.
15,700
234.000
Dec
13.300
417,400
Mar
3,400
161,800
MAY
H.IDO
124,000
Suty
1.701
120.790
Del
700
5,000
03.100
1,002,200 ales
NEW YORK
اور اروا
Dupont de Nemours
Eastman Kodak
Poo National Go Erte Railroad
Family Finance Corp.
Ford Motor
General Electric
General FouLLA
General Motors
Gen. Pub, Utat.
Gudder Cu.
Goodrich 1, r ca. Goodyear Tire Heyden Chemical
Humistoka Mhuing Co. Ingersoll-Band
inland Steel Co. Literelement Corp.. Int'l Business Machines
Prices of futures closed today Intl Harvester
he tolu the nation in a "round and stocks closed fruction-as follows: the-fireside" broadcast, are ne-ally lower in fairly active put quiring too many things on too trading on the London Ex-July much credit Instead of using change today.
saved money to buy them.
The
spending
resulted
1105 spree
New
30.70m
35.000
33.-)
3238 72.50
international Nickel
Macao Elec.
22.40 2211⁄2 2300 as 22.40
10.30 20
Geduld reported from limited development the area south of the water-Special. bearing zone." This may tend to confirm the opinion that the still undevelop "jackpot" area the boundary between that mino is sur- and Western Holdings
on
rounded by an only less rich
inckat.
Loraine_reported good values
and from on its "B" reef,
prc- much larger footage than
The Basal reef, on viously
which most of the other Orange
Free State mines depend, is only marginal at Loraine, But the "B" reef looks like lifting that mine out of the marginal cate- gory.
values on
Objections To Cotton Programme
New York, Apr. 24. The New York Cotton
in
+
of
President Steyn, which again Exchange today, reported good Basal reef, separately reported Agriculture Mr Ezra T.
It telegram to Secretary some undistinguished gold values
on its Lender reef. But its chair-Benson, strongly urged the man recently disclosed that the Department of Agriculture Leader reef carries very satis- to reconsider its cotton factory uranium values. So Steyn
gold export sales programine. good appears to have reef, and also another reef with good uranium and some gold to out. Taking gold and help uranium
Steyn's together. Leader reef may become de
cidedly interesting.
Very Attractive
After a brief return to favour
Under
the programme, 19 bounced last week, raw cotton stocks held by the Commodity Credit Corporation, will te periodically offered the export sales on a competitive basis, but the cotton cannot be exported prior to August 1.
First offers to buy the cotton
The market was dull and featureless today and it sagged in February and March, South from the stock will be received Jater on Poor trade Futures:
support. African gold shares have again today by the New Orleans office
gone out of fashion this month, of the CCC.
In Lon No. 1 rubber per Ib. May 2015-104 They closed dispirited
June 90%-0034
July unquoted
No. 2 rubber per lb. May 0933-00 No, 3 No. 4
Spot rubber unbaled
Blanket crepe
No. I pale crepo
LONDON
60%-80%
0115-001 9013-0093 041-80 309-112
The market was easier today with spot quoted at 27 pence per
Prices:
30 30% 16003016 200 305 158 29.60 lb.
48.30 18 ct 19,90 0410 00
10.30
*
Telephone 22.00 23 100 22.90 July/Sept
Rt 11.00 12.10 200 12.10
1412 12
June
Oct/Dec. Jon/Mar
General markets, clt basis, ports:
No. 1 Rna spot
Settlement hauto term:
2014-2714 201203 2013-2095 2321-231 20-2540
2014-20
2014-202
2011-201
unquoted
AMSTERDAM
INDUSTRIALS
Cement
34 3435 300 34 Metal Indust, 1.70 1.00 STORES, ETC.
May
Yuno
July
Dairy
10 18.30
Falate
3 COTTONS
Estale
Kansas C. Power & Light Kennecott Copper
İnternational Paper Int Tel & Tel
John-Manville Co.
Liggett Meyers Tob.
3253-54 Lockheed Aircraft
May
October December
Nearly all sections joined the March
m
May
Deuber
31,80 30.00
NEW ORLEANS
In a flood of imports decline, with losses running to a and the "lowering of for shilling among teading indus- Zealand's oversens 'reserves to a trials such as Rolls-Royce and dangerous
Unilever Prot-taking was scen credit in the vils doo, Royni Dutch led was inposed, and the £1, while British Petroleum the downside, losing about of
interest
rates has the abandonment of
dropped nearly three shillings.
level,
To
The
correct this
the cheap money polley.
In the main, the curb on ex-
Ion
GOVERNMENTS EASE
penditure must be at the ex- British Government pense of consumer
such items
frigerators and machines.
Prices of futures closed as follows:
Spot
May
July
October
stocks
December March Moy July ttle October
goods and eased in the face of expected
as motorcars, re-heavy borrowing by
washing Treasury, losses ran to 5/10 in
War Loan,
Anglo-Argentine
Tramways
LIVERPOOL
Louisville & Nashville R. Lowenstein & Sons. Mesabi Iron Corp.
Monsanto Chemical Co. Montgomery Ward
Motorola Inc, J
today National Cash heg. "A"
35.40
33.78
23.01
32 29
*20.54
Future closings in pence
But the Government has also announced its intention of keep-debentures jumped £3 on specub. were as follows: ing a light rein on investment, lative buying. particularly in relation to its own spending.
Essential Works
German bonds scored scattor- ed gains but Japanese were idle and featureless in quiet foreign bond markot.
Gold shares closed frm and coppers wore stendy, Dollar Irregular.United
New Zealand's rate of invest- jelacks ment must necessarily remain Press.
igh in order to meet the needs of a rapidly expanding popula-
"Essential works such as roads, schools and
hydro-electrid
chemes must go on, though,
will be paid to
were
LONDON METAL
Old contract
May/June July/Aug. New contract May/June July/Aug. Oct/Nov. Dec./Jan.
Mar/Apr. Egyptian Karnak
May/June
3,30
National Dairy Prod.
National Lead
National Steel Corp.
New York Central
Olin Mathieson Otis Elevatore Owen-Ilinoja Glass Pacific Gas & Elec. Facto Westerva Dil
Textile Corp 8.35 6.50 2000 43 45 Nanyang 120%MISCELLANEOUS
00%
47
Yonglaze Allied
231%
SAO PAULO
Singapore
Future closings, in cruzeiros Stock Market
...015 0.70
erepo hin May 414 empe thei
Burma Wants
Russian Assistance
The telegram read: "Wo earnestly potition the Depart- ment of Agriculture to reconalder its deelston to offer American cotton for sale on a competitive bid basis for export
SUFFER DAMAGE
"We are strongly of the opinion that this programme will cont pletdy diarupt, it not entirely eliminate the present entiro dis- Calcutta, Apr. 24.
tribution system for cotton in Burma is to seck Soviet as this country, as built up over the sistance to develop her rootntly past 100 years. All segments of explored from mine besides fr the trade, and the exchange, will viting a Soviet engineering deuiter trreparable damage it the legation to help implement other programme is continued. development
projects, U Ba, leader of a seven-man Burmese
technical delegation now on 11s way to Moscow, sald here to day.
He sold his delegation which The market was quiet. Prices will visit the Soviet Union under today closed in guilders per a programme of exchange of allogram, eif May, as follows: (echnicians envisaged by the
1,70
6.35 15 1000 m 5.30
No. rubber
Nubber
CHICAGO GRAIN
MARKET
Chicago, Apr. 24.
Closing prices per bushel in
13232-34
No. Z rubber
No. 1 crepe
on
The message urged the Secre- tary to rooppirulee the competitive bids sales programme, and "give scrlotts consideration |export sales programmo at the carliest possible moment."--- United Press.
257 nom. recently-signed Soviet-Burmese Exchange Rates 256 nom. trade agreement, will study 200 nom,u
various aspects of Soviet agri-
2.54 110m.
United Press.
New York Sugar Market
Now York, Apr, 24. World No. 4 sugar futures closed today unchanged to 3 points higher with sales of 173 contracts.
The domestic No. 6 sugar futures closed, i point lower to 1 point higer with sales of 14 contructs,
Firmness in world zaws r- pected the higher spot market. Operators in Cuba paid 2,37 cents a
new. pound, tob, a
High for the year, Havana reports fraticated several inquiries In Who market from Overseas buyers.
67 40
7344
conts:
31.04
82%
Wheat, No. 2, rod
3) ДА
40%
30.00
Pan Americans -Always
101
Spol
244n
May
Paramount Pictures
2301 (11) 238(1) 201
July
Parke Davis Cu.
Sept.
Penny J. E. Co.
per Penn. Salt Co.
Nov.
Philip Morri
Procter & Gamble Co.
1074
Publicker Industries
Pune 40%,
4039
Stadlo Corporation
40
July
Com, No. 2, yellow.
Bpot May
24.00
Republic Steel
Sept.
Shell Oil Ca
NOY,
212-4% 217-21835 2193
35435-155 15032-131 154-5 156 1457-
20.30
27.30
Saint Reg. Paper
Jan.
Rye
24,30
May
29.15
July
23.00
Qata
61.25
May.
60%
July
Soybeans, No. 2, yellow
Spot
May
July
per kilo were as follows:
Sept.
3040 30314-304 3004-12 271
Singaporo; Apr. 25,
Nov.
May
July
30.50 31.01
Oct.
33.00
Brokers today quofor the fol- lowing stock prices:
Jan
25816-14 2011
Mary.
July
Barley
September
November
buyers alters
Dec.
33.00
TO
750
Mar.
31.00
750
Batu Lintang Rubber Co.
Lid
Opening
41.02
Spot
130-140
New York four
960 lb. sack
360
3884
301
2:47
In the US the average spot 113 prices was 35,34 cents. Salos at theo 14 designated spot inurkela totalled 3,188 balca-Uristed | Franr & Neare Lid. Ord. an Press,
Fraser '&: Neave 755% toum,
pret Hongkong & Shangbal Bank-
in Corp._.
Brilish Borneo Petroleum
Byndicate
Consolidated Tin Sneltern
Ord.
21/08
today follow
́Prices of grain futurès closed in.cent, per bushel as
$5.70
$385
MAY
74
Dot
Kempas 14d.
Exchange
London,
24,
........ Lunar Stabber. Estates Ltd, Malayan Browories, ............. New Berandah Rübber
LAD,
$1,00
90.77
$3.20
July
PRICES
London, Apr, 24, The un market was steady.
With this in mind, Prices closed today in sterling
the Government aims at review per long ton as follows:
爨
strict regard priorities.
capital
expenditure.
Jag its whole programme fin
apot
3-month
3-month
A similar close watch on Copper spot
private investmont will be kept Lead 2nd half April 115 by the Capital Issues Com-Lead and half July J1221 113 mittee, which must approve cach Zinc 2nd half April
ETPA major project and decido te
Zine 2nd half July 7, priority
Unitert Pres.
Three Objectives
The Government's
objective is threefold:
overall
NEW YORK METAL London Foreign tongkat ind.
FUTURES
New York, Apr. 24. Price of metal futures closed
today in penta per lb, as follows: New York.
·First; it steks full employ-Lead April
ment without excessive
May
labour shortages; 1.
*Tir April
"Stcond, it ta'mŕtving to
balance external raceipis Copper April cand' payments without im-
May Aprit May
М
18.10bostreni
18.11b Amaterdam
DINOU | LANDONS
12.05h Fari 400gps | 19socicholen.
Petaling Tin Litil,
1.787/10 || Raffien Hoteleketin
Singapore Cold) Stomge Routh British 'Enkiraned
TAG
Birala, Trading
United Enusente. Ord.
Wedma BroW!
$100-
ima
$13.00 WINNIPEG PRICES"
-Winnipeg, Apr. 24. 2
Contract No. 4. (world)
6pqt-cents per lb. fob Cubaj Contract No. 8
3.34
May
·July
5,50
September
November
0,37
Spot--fcenta per lh, ett NY
x-dity)
UnitedPress.
New York Foreign
Exchange
ingland, offi
17/10
1710
culture, industry and housing projects during te two weeks stay,
Time permitting, he added the delegation will also visit Britain and West Germany--Reuter,
titig
3.34
18.30
26,30
Business WAB done in the local
exchange
market unofficial morning at the following rates. U.B. dollar (per. $1) Sterling notes (por £1) Ausumilan notes (per £1) slam ticat (per 100) Indonesian rupiah (par 1200) singapore (štrakta)
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