Page
THE CHINA MAIL, THURSDAY, JUNE 7, 1956.
TRADE and
EVER-PRESENT PRESSURES OF
INFLATION &
DEFLATION
By JOHN MORKA
New York, June 6.
The US is staking a good measure of its future well-being on its ability to keep a tender balance between the ever-present pressures of inflation and deflation.
al
Government moves
almed establishing this balance pot off one of the inost hoetic roundu of discussion in recene American economie history.
The speelle move that trig- gered the controversy that has now cut nerose party lines was the notion by the Federal Ro-; serve Bound last month raising the discount rate. This is the rate effect of this boost the 16th In a year-which was to force interes! rates higher, curtull credit for business and sumer alike und generally to put a damper ON OVET-GR[~ skou.
Not Everyone
con-
This meant that the monetary
authorities apparently believed
that
with E tremendous pry- gramma of plant expansion and renovation. Consumers borrowing heavily.
were
scene win
It
L-
LOCKHEED
CONTRACT
Burbank, Calif., June 0.
Lockheed Aircraft Ser- vices Overseas today announced moript of ax. $11,692,400 Air Force con- tract to spiss the building of T-33a in trature vagja In Kawalk), Гаран United Prem,
American Telephone
Active On Wall Street
New York, June 6,
A handful of wide-moving special issues and pne or two active stocks were the chief highlights
HONGKONG in another routine stock market session today.
STOCK EXCHANGE
The list overall dipped a bl, Standard Oil of: La
a late modest rally stering Drug Co.
Standard O1 of NJ although gave a somewhat firmer lone al | Stokky-Van Cappy. the close,
Studebaker-Packard Corp. SWill Co. Activity in blue-chip Amerl-Texas Co But the economic
can Telephone featured, Tido Water Amst. 05
it
Union Carbide........ undergoing soine changes,
appeared on two blocks of 10,000 Union Facific Railway became apparent the auto
shares each at $179%, up %, ex-alted Aircraft dustry wasn't having its ex-
dividend, and closed at $1704 Us Line Co.
U.B. GypsuITS Lected spring plekup. About
A late loss of more than 2 U.S. Rubber 000,000
shiny autos were stijl (From Our Correspondent) points in American Tobacco UB. Smeting
The unsold.
television Industries. appilance
Business done on the Hong-g with defines of 14 points US Steel.....
Warner Bros. was kon K
Westinghouse Elestrin Exchange obvious,
having
this Texas Co. pulled down the lo- West Va. Pulp & Paper word
their
Bemorning amounted to approxdustrial average, troubles also. Some iteins mately $310,000.
Woolworth It closed off Noon quota-205 on the day. were being sold at big di
tions and the morning's transac- counts. And home building|tions
Rails
down 1.11 was way off its seasonal pace,
average with losses ranging to and the Industry complained,
a polit or more in Santa Fe, Atlantic Const Linc. Unlo Pacific.
Bud
Stock
Shares
Buyers Sellers
1-133
5 1600
130
HANKS Layoffs became commonplace | UK Bank now A lot of people beau Asin
INSURANCES asking
of questions Union publicly.
Lombard
Inflation-not deflation- { dent agency-had not in Was a potential danger to the erred in imposing the credit economy. It wanted
also o
curtail bank lens to accumulate Inventories of steel and metal products. It emphasised by ila action that it felt the country would in the long run be better off for a little econormile" pinch- ing here and there,
But
about the action. At
everyone agreed wisdom of This that time early April-the steel industry WAB clamouring for a prices increase. Industrial prices were moving upward. Business went ahead
CHICAGO GRAIN
MARKET
Chicago, June 1. Grain futures were irregular от the Board of Trade today, with July corn showing con- siderable strength by selling to about
cent higher than September.
one
Soybeans also moved higher in erratke action today dua to meal strength in oil Kid markels, although some Liquida- tion opposition was encoun- tered.
Profit-taking and some hedro selling brought wheat down after
gains. early morning Scattered rains were reported
portions of the southwest, but combining operations were not hampered.
In
Wheat closed off
cents.
soybeans
General Motors chief Harlow Curtice termed Use credit regiraint “unwarranted.” He blamed the Industry's plight part on the Board's action..
ах
60
100 93
Du Font
1% Qui
10
Utilities dipped tower, Among the special Issues,
Smith
Corona added nearly
points on its recent Increase and merger ment,
dividend
annourier-
WORLD
SECTION
WORLD COTTON MARKETS
New York, June 8. Cotton futures trading today moved along at an exceptionally low Pago for the fifth sujon In a
Tow
After see-sawing within | patne range the list closes up points. Opening
off 6 to
grles were up 3 to off 2 points New Orleans cload 4 podsta
lower.
Pago
World Bank Loan Negotiations With India
Washington, June 6. The World Bank is expected to completo negotiations before the end of June, on its higgest-ever loan to an Asian country, about $70 to $75 million for the Tata fron and Steck Company of India, bank officials said.
corre-
com-
The firm plan to expand ingot | United States und World Bank” Uncertainties surrounding Goy- ernment expert salos mid ap- production from 1,300,000 tons oficials were confident that full plication of the soil bank law to to about 2,000,000 tons a year, agreement would be reached. the growing crop, continued to
as wel 'ne to increase' finished 50% shackip new market interest.
steel production by a Easing prices in the textile
sponding amount. 10% market, In face
slow down
Although the loan terms have 84 business, plus reactionary stock
and generály favour-not yet been finally settled, market, 1.201
ad- 3ablo crop conditions were 1100 dilonai hindrances. 175话
RUBBER MARKETS
00
27
4916
57
54
on
Chief interest centred what priče the Government will accept bids on June 19 for sales out of the surplus. Two theories existed on the question One group thought sales would bo consumated at prices as low
by law
as prether epterlo supposed
The
the Commodity Credit
Сог poration will limit quantities with
the object of inducing higher bid prices so as not tu disrupt the world or domestic prices
level, Business today originated tmong the professional traders, with mil interests, spot Brins brokers adjusting July and commitment before Arst notice Open July con- day-June 23. New York, June 6. tracts today tot 193,509
certificated No. 1 Bus rubber futures bales. The
stock closed today 60
to 100 decreased 709 to 11,173 bales.
Volume points higher with sales of Month
4,000 the 238 contrasts. AL slow pace of recent scssions with
turnover 2
today
Stee) sharts were narrow moving for the most pari,
Of a tolaj 1,18 issues traded, 14.00 437 were lower, 331 higher. 13 14.00
Trading continued B
of
SHEAFFER
EXPORT SALES
+
The loan is n purely intrelal transaction but I will be guaranteed by the Indian Government and play a part in meeting India's vast foreign currency needs in financing its second five-year plan.
Raise Output
Under this plan India hopes to raise its total Iron and steel output to 4,600,000 to 0,000,000 tons from its present level of around 1,500,000 tons, according to Indian sources here.
In-
and
New York, line 6. This will be the second loan The Sheaffer Pen Com- by the bankt-ils full die is the pany said today it expects International Bank for Recon- struction and Development-to; to dayble its export sales the Indian Iren and sleci In- in the next five years. dustry since the 'bank 109 formed ten years ago. It lent Chárman Craig R. Sheaffer $31,500,000 to the only other told distributors from 50 coun- maler Indian firm in the
The tries today he hopes to ope the austry.
Indian Iran company's overseas business hit Steel Company, In 1852 China
Mail Special. 8 milion annually by 1981.
But he added, the Laces stiffer competition from Open Interesi i Doreign pen rakers. Manufac- turers in Germany, Englarki Italy and Japan have come back from wartime inactivly and are beginning to give American pen makers a fight, he said,
July
13,500
5,000
200,000
Des.
6200
457,700
A 300
230,700
MAY
1,800
130,900
100
000
110,000 20,300
The standard contract closed,Mar, 300 13.30 1.480,000 shares compared with 26 to 100 points higher with no July 1000 to 13.40 1000 03
1.050.000 shares yesterday. sales reported.
12
Some question whether Federal Reservo-an
indepen
Fact
the SHIPPING Waterbent DOCKS, ETC Wharf
21
CHE
SqUDIZA.
Dock
| Pvident (01 1431
500 14.70 600 0 14.00
No Real Threat
1000
1000
1900
Wheelock ..
BX
4050
$300 120
LAND. ETC
TIK Tow
1330
13:5
iK Land Humpareys RUBBER
| Total
27 40
A. Rubber
1423
1475
2210 22.00
1.43 18000 1,023
1000 W 22.00
59 135
American volume
Dew-Jones
Stock
was
100
100
200 @ 107 30 106
Strength roßested higher Lotidian cables, plus a marked Improvement in domestic con- Exchange sumer
intereat and a relative as follows: 640,000 shares. scarcity of shipment offerings closing averages from the Far East
Apoi
Judy
were:
Oct.
30 Industriala
$80.44
rutie
18
uttiilica
stocks
172.23
Factories showed the best 14 Interest in the delivered market
63. with buyers- marking
Dee.
Macy
Lime.
July
46
bordin
NEW ORLEANS
Now York glock Exchange 140 18000 2 1.420 bond volume was $4,030,000.
1000 u 1.43
Treasury Secretary Humphrey
Trust and Presidential economic ad-
UTILITIES viser Mr Burns-along with Tram other
top ranking officials-Star Furry
Yana FeITу were soon at odds with Federal Reserve chief Mr Martin,
C. Light (0) 21 22.00 3,500 22.80 C. Light (NG)
20 Electre. 201, 30
21 1930 1935 Telephone
rnort
540
The Administration officiula felt inflation was no real threat,
2230 22.60 1,000 y 22.40 They saw some signs of infla~ | INDUSTRIALS tion but they worried mure Ceront..... 344 3494 about a
decline.
Expe
11.30 And the housing Industry Dairy
STORES, ETC.
18.00 10.10 complained that higher angc rutes wero causing A Watscon
JQ3 COTTONS
3.25 Textile Corp slump. The Federal Reserve mean Nanyang while defends itself against MISCELLANEOUS charges they were hurting the construction industry.
housing
It sold that during the firs
1856 four months of
housing construction compared favour-
no
д
record
1
ably with recent years except. ing 1060. That was year,
So far the Reserve has given
direct notice that it going to light the credit strings. The agency is not contemplating any basic changes in its credit polley, but there are indications that it le casing up slightly in the credit brakës,
to up Up 45% to
2
The
CLOSING PRICES
Prices per bushel in echts:
Sept.
Wheat, No, 2, red
Spot
July 206 (8) 200% (L)
Sept
Nov.
Mar.
Corn, No. 2, yellow
Spot
ก
Nov.
Mar.
Rro
July
Scpl.
Qata
July
Sept.
Boybean, Ng 8. yellow
Spot
་་་་་་་་་་་.
July
Sept.
་་་་་་་་་
Nov
Jan.
Mar
Barley,
New York logr.
2140 2001 2001-200
Reverse Action
R
Yangtze Allied
1.00 1800 @ 7:53
869 6.75 4.30
London Stocks
Close On
Firm Note
London, June 6.
Stocks advanced
cau
Comm. future price index Moody's indica
Closing Prices
Alden Inc. Aay.
Allied Chendents
Allied Mills c
AJN Chalmers
| Americat) Akrilna
Amentors Colle & Radio Corp.
American Cyanamide C.
Am. Mach. &
American Metal
dry.
American Smelting Am. Bugor Hef. Amortenti Tel & Tel Ainortcam Tob. "8" Anaconda Copper Armco Steel Armour
Baldwin-Lima-Hom. Baltimore & Ohio Bendbe Aviation Corp. Benguet Coin,
Belieber Steel
BOLT and while a fair-sized busizuess 131.00 was done. Dealers wondered 613.10] the advance was loa rapid and tend to push consumers back to the sidelince again.
#2012
ta the shipment market.
214 Slom offerings of three, four
24,400 1.483,000 bales
NEW YORK
company
Dimculty of obtaining strong patent and trademark protection abroad is harassing American Prices of futures closed today pen makers, Mr Sheaffer said.
30.00
34.01
12.51
2,70
38828--8
Prices of futures closed today
as follows!
Spot
July
Det.
Dec.
34
and five shoots were "too rich"
Mar
2 for local buyers, deniers said. A moderate tonnage sold am- bern und
dat bark. Spot No 1 2914
Rsy
was quoted nominally Bicenta a pound. Futures:
May
July
Oct
*8
LIVERPFOOL
93
No.
old contract
Now contract
July Sept
Dec.
27.70 20.00 25.63
Standará contraet
1461
Booling Airplane
Dec.
Borden (The) Co.
Mar.
Burroughs Add Mochine
20
May
Canadiens Pašilie B.
314
July
Case (J.) Co. Tractor
tiously and closed in a firm Celanese Corp, note in quist dealings
London
C. 1. T. Flesancial Corp. on Chrysler Motors
tinthe
gold
Colgate-Palmolive Co,
Federal Reserve
Exchange Commercial Credit since indicated that it will buy today.
Commonwealth Elor next Treasury bills
Consolidated Edison. to meet suasorial needs securities
British Governments found mental ou of Di
Crate Co, on a discount basis. When the good support. Helped by short crown Zellerbach Reserve buys bills it adds to the covering, the gills pushed ahead Cuban Amer. Bugar
Diamond Alkali legal lending ability of the as much a 16 shillings. War
Dow Cherrealm member banks. The net effect
Loan" added that amount, and piport de Nemotin Is to ear the pinch on money. others gained up to 129 6d. Eastrum Kodak
Some experts see in this re-
El Para National Gos Frid Raffrond .. Industriais 250
serve action a
fore
усто quict. possible
Family Finger Carp. casing Pivotal issues such as Imperial For Motor 132:101%) runner of some further 10216-51
of tho #redit reins, 50 Fur Chemical and Unilever were General Electric
General Foods popular, bul gains in the group general Motcis 143
were mostly shilling or less,
there is no defalte sign of any complete lifting of the restraints, That would comb when “tho Brodiscount rate Is again Lover-
ed from tia April ü levels
Administration experts mean-
190-140
$13.70
WINNIPEG PRICES
Winnipeg. June 6. Prices of grain fulares closed today in cont per bushet ze follows:
Gate.
OILS BRIGHTEN
den Pub. Vil. Celly Q Udden Co. Goodyear Tire
layden Chernica) flomatake Minky Co.
{{sterchemieni Corgi,
whlis am
are confident that the Oils brightened after a dull Inter-Rand.... Government can continue to opening. Royal Dutch dipped inland Steel Co. operate at high levels and still £1, ex-dividend, but other at Business Machines kokep Inflation in check. But leaders closed around a shilling at Harvester
International Nickel politicians are keeping, a closa higher.
International Paper Int'l Tel & Tel Watch the unemployment
Overseas and focal demand | Jolin-Mbaylile Co. rolls, these days for an Indica helped gold shares. tion as to where the economy were frm in an otherwise quiet at Meyer Top, Co.
Coppers Kees C. Power & Light
Kemiegoti Copper heading...
metal group:
Lockheed Aircraft Löcara Ingorpusen This is an important election year-for. Democrats and. Re-.} Foreign bonds moved nar- fälld Star Cement Co.
Boulevalle & NowvilleʻR. publicans alike.
rowly, except for a £2 spurt by owenstein & Sons,
non
If the business should stump | Tokyo five -per conta eriously, the Republicans assented," would be, vulnerabla 1. oft copeated charges by the De Dollar stocks 'refteclad
and moerals that they (Republicans) Street's design are a depraston party...
with small changes either -United Pres
Prosperity
Apylind of recessione ch
would carry, a lot of weight in
July"
2634-80.
Oct
Dec
243-250 7016-7144
Ryo
alone borious depression)--
July
21435-115
Off
-
the forthcoming plection.
Barley
July
Mecabi Iron Carp Binnesota Mining Miston, Development Mormanto Chemical Co. Wall Montgomery Ward closed Kotrbia ing,"
way.
London Foreign Exchange
Republicana under President Bisenhower:* have been - OTDRC]I" New York Ing they are the party of "pesen Montresi
Amslerţiona And prosperity.Their chance Bac
Hin presenting plec Copenhagen J'elody
Londo
Natleman Casi Hed.
Natiomak, Dairy Prod: National. Land. National Steel Corp. New York Central: On Matheson Oli Elevatory Overwilkasle Chase. Pacific Gas &" Eles, Fa Azpirioni Always Piramount, Plettres Parka Doyle Co. ( Pentzy 2. 0:00. Pen-Balt Co.
Pong | Mortie gl 716Procter de ciambie Co. Phiburan/Pista, (Narko-
PuraD
SINGAPOKE
24.40
82332938
8888888
Future closings, in pence per
Ib, were as follows:
July/Aug
Oct/Nov.
Dec/Jan.
Mar/Apr.
Moy/June
::::::
In Japan, for instance, he said
| fly-by-night manufacturers' are
producing
fount ale Sheaffer Dens in quantity "United Press.
Singapore Stock Market
Singapore, June 7, Brokers today quoted the fol.. lowing stock prices:
Wherever
you'ro goẳng.........
EUROPE
USA
ORIENT
ROUND
THE
WORLD
Opening
Batu Lintang
Rubber
Ltd.
$1.32.
Brit Borneo Petroleum
Byndicate
Consolklated
in Emelters
20.10
28.48
2.00
24,46
Ord. Fraser & Neave Lid, Ord, Prosor & Neave 15% com
pret
4731*
28x3d #1.07
$0.20
24.03
Hồngkang & Shanghai Bank-
You can fly thero om the world's most
51.50
ing Corp.
SETO
Hongkong Tin Ltd,
Kempa Ltd. Kondeigger Lunar Rubber Estates Ltd., Malayan Breweries
11.53
0.75
$3.401
New Berandah Rubber Co.
Ltd.
34.00
Potaling Tin Ltd.
$1.03 $3.42
300
Haffles Hotel
Singapore Cold Storazo
$1.40
South British Inmtraneo Co.
Ltd,
Straits Trading
Straits Steamship
$11:00.
United Engineers Ord,
$1.70
Wearne Bros.
$2.00
• ́xd † endiva--China Mafi Speeini.
Egykian Kernak Igły/Aug.
ĐẠO PAULO
Future closings, in cruzeirpa per kilo were as follows July
Dec.
Mar
3:0 00
Sales
The market steadied after In the US the average spol opening, on short covering with price was 35,53 cents sellers reserved. Thereafter totalled 7,370 bales." Prices sagged until the afternoon 115) When there
S support.
was little trade
КАПАСНІ
The market was fim as buy-
Factory interest was also very ing was very tetive for the last
all. Futures:
857 No. 1 rubber' per th. June 15-7034
July 7435-70% Aug. unquoted No. 3 rúpber per in. Juno 731), No. 5 No. 4
*
חו
715-7312 Bpot rubber unbaled ... 20-7036
Blanket CтEPO
72-18
-100
No. 1 pale èrepo.
LONDON
two days in ready section to
moet shipments to China.
Prices closed today in rupees
per mound as follows: Punjab roller gla
30/11
zpp Bind roller, gin saw gin 2007 Punjab roller gin....
Baw gin
100/11 United Press,
The market was easy, after New York Sugar
Arm with spot at 21% pence per
b. Prices:
No. 1 Ras spot
2216-2235
Settlement house term:
July
1301
Aug.
29*
Sept.
49%
July/Sept.
Oct./Dec.
BOES
Jan/Mar.
General tragonia, cif pawy
July
tu July
AMSTERDAMĮ
unquoted
Market
New Yorfi, Juno 6. World No. 4 sugar futures closed today 1 poing lower to 1 point; higher witli mo sales re ported.
The domestic No. 0 contract: closed unchanged to: 1 poinf
with salts of 2. con
Wiber
tracte.
t
: Steadler tone in the domestiĄ contract reflected the
ry basis.
July The market
WAR
quietly Supt. steady. Prices cheed today in guliders per kilogram, eif June ge followe
| No. 1 ribber rubber
No, 3 rubber
'crtype.
Sept
Futuros: '.' Contract No. (world)
experienced airlino
For reservallong
call your travel agent or Alexandra House, Phone 37031,
Hong Kong.
Peninsula Hotel,
Phone 64005, Kowloort
Pan American Well Airmen, ins, tourporated i the Sicio of New York, 17.5, wich Undine Bakdany
PAN AMERICAN
TYPHOON MAP
revised codes in force as from
April 193
545
i-United Pross,
$5.00
100
MOUNTED
UNMOUNTED
{oente per ib. fob Cuba
Contract No
Radt-(conta per 10, elf.
[NV] px-duty):
Exchange Rates New York Foreign
Ent
Exchange
New York; June 18, 19
South China Morning Post Ltd.
Wheat, No, 3103
No.
otherm:
+