Page
THE CHINA MAIL, WEDNESDAY, JUNE 20, 1958.
TRADE annel
COMMERCE
SECTION
Pare
W. EUROPE FIGHTS INFLATION HONGKONG BG REFINERY
And This Is How:
THE CREDIT SQUEEZE GOES INTO ACTION
London, June 18.
While the British Government prepares its plans, expected to be announced soon, to cut its spending by £100 million in the fight against inflation, most European and sterling area countries are facing up to the same problem.
European governments, tired of playing the referee in the race between prices and wages, are applying the credit squeeze through a variety of measures ranging from drastic restrictions on hire purchase terms to increases in the bank rate.
แค
France, where the Algerian War is making o rizable holo in the treasury purse, is suffer- ing from rapidly rising prices. One report said it now costs a family of four 13 per cent more to live than it did last year.
In Switzerland, aglow in the warmth of
unprecedented industrial boom, indation koors. Private banks have agreed to refuse any more foreign capital, and the Government is planning a conference with vin- ployers and workers to discuss the inflation danger
Situation Reports
In Germany,
the purchasing power of the mark has dropped
had
every new bond ioun they issue, [country have for sometime been This enables the National Bank trying to curb the race between to ensure that money for in prices and wages, but without vestment is kept to nationally success. useful objectives stch us in- The Swiss Government RN- dustries working on exports.
nounced Inst week that it Hire purchases are restricted invited all the leading employ- E14 are building
organisations programmes,ers and workers Last April the bank rate was
olart consultation next ratsed from 2% to 3% per cent,month on inflation dangers.
OSLO:
Neither the Finance Depari- Experts here are
ment nor the National Bank have as yot taken any direct restrictive credit meastires. The private banks have
"gentleman's
ngreed that inflationery ten. dencies are left in Norway but no worse than elsewhere.
Measures taken by the Gov- erment
inflationary A curb
of the trende are the incrCASC discount role of the Bank of Norway by one per cent, gredi tem extrictions, new taxes,
pes
by four percent since last year.building and other
Here are the situation reports from correspondents in the world's capitals;
LONDON: The British Cov ernment is about to announce dotails of a £100,000,000 cut in its own spending as part of a
to rid campaign
the British economy at inflation.
The cut will be inade partly in the nation's defonce budget, now running at the rate of near- ly £1,500 million
sterling annually, and partly in various domestic services.
thol
The Government hopes by trimming its own expend tura, St wil net an exumple to the British public. whose excessive hone dananda have boen
One
d/Mcuties
monthy.
cent extraordinary tax
investment enterprises and a ten per cent lax on the import of machines. COPENHAGEN: The some
art of inflationary trend exists in Denmark as in Britain, but takes slowed down in recent mondbe
10
ཕ
also RÉTEEL more
made Iment" not
reign
to accept any
the caphal as
Swiss capital market is already full to overflowing.
'Change Strike
ROME: Striices by stock ex- change brokers in all main Ita elties
in the last few months are described us one of the minor Jectors contributing
the absence
of any strung inflationary tendency in italy. Bank The brokers have been strik- rate from ng against a law which obliges the smell shares to bear the names of enable income tax authorities to thele owners. Its object la to
identity share siders.
The strikers have depressed all prices on Italian stock ex- changes and therefore prevented the launching of new captini issues.
The Danish Notional ealsed it discount 4% to 0% per cent.
as the current Bank of England e, as long ago ng June, 1954, At the same time. elal banks were instructed
commer-
er
to
avoid any great Increase in the level of loans, but these mea- sures have not been so success- ful in combating inflation.
Denmark is not contemplating
of the principal devaluation causes of the country's economie į Talks To Be Held..
the past 18
BERNE: The Department of Government's
Finance (Trosaury) the trade biggest problems in its economic unions and the numerous fight has been how to convince economic associations in the a nation, fully-employed and constantly establishing new ex-
Отже of
port recurds,
the
Uhvat It is in nu position to spend recklessly home.
Import Duty Cuts
41
BONNI import duly cuts, designed to help keep down prices, are a main point in the government plan to ball the is- dation which has reduced the mark'e purchasing power by an estimated four percei
year.
Ca
Further measures planned to control Inflation are credit re- striction. Cancellation of tax concessions to would-be in- vestors and the encouragement of private saving,
The Central
recently increased the bank rale by one per cent tn 31⁄2 per cent-ils highest level since in "Korea boom."
Bank
PARIS: The cost of living In France has been on the upgrade for many months.
The inflation threat was un- der fined by
the fact that over. 300,000 mon more banknotes were in circulation in France at the end of May this year than in May last year.
The declared policy of the French Government is to defend thx franc. Anti-Inflation mea- have included price- HP Sales Cut
Sunes
blocking
'DRUSSELS:
Inflation me"SUTO
The main anti-
adopted
WORLD RUBBER MARKETS
Slagapore, June 10.
VIENNA:
The
Austrian authorities
steps which
Look
al
Lost autumn check potential
Canada's Imports
Topped $1,000 Million
Ottawa, June 10. Cadata's imports top- pod the one billion dollar mark in the tire quarter of 1056,
thed Dominion Burstu of Statistics TO ported today.
"Continuing the expan Mo which bad
been underway since the middle of 1058" the report said, "Camia's Imports rose 28 per cent....to
now
peak of $1.273,200,000,"
Lari
Ratporta totalled 1990.7 million during tho first quarter were widestEnd with vittudy all comenodities abartır
the United Presa,
Australian
Bonds To
Be Offered
STOCK
New York Stock Exchange EXCHANGE
Wall Street Turns Out
On The Golf Course
And Market Is Idle
New York, June 19. Stocks Idled through a routine session today with activity the lightest in almost a year.
Wall Streeters in large num- |Lone Star Cement Co. bers neglected the market
Louisville &c Nashvitio ft. to Lowenstein & Sona, play golf at the annual torka-Mess Iron Corp. ments of the New York Stock Manoots Mbalog Exchange
and the American Stock Exchange.
Volume dwindled,
Minion Development Monsanto Chemical Co. Montgomery Ward Motorola Inc. National Cash leg." "Al National Dairy Prod. National Lead
The market was a bit lower on balance but the selling was completely without pressure. New York Central
Out of 1,123 issues appearing on the tape 487 were lower, 383 higher. Measured by the averages, Industrials were up 0.81, rakla off 0.44 and uukties up 0.28.
Rails Pulled Down
A late gain of nearly 2 points
I
In US
Du Pont helped Industrial average.
t
Losses of 2 points in
New York, June 19. A spokesman for a group of 68 American Investment Arms handling the public sale tomorrow of a $25 mil- Hon Australian bond Issue predicted today that offering would be "over- subscribed."
the
An official of the banking and Investment Arra, Morgan Stanley and Company, heading the gyn- diente, based his forecast on the high credit standing Australia enjoys among US and foreign Investors.
National Steel Corp.
On Mathiemon Otis Elevators Owen-Ulinois Glom
Prolic Gas & Elec. Pan Ametown Always
| Paramount Pictures
Parke Davis Co.
Penny J. C. Co.
Per Ball Cn.
Phillo Morata
Pittsburgh Plate diam
Publicker Industries
Pure Of ...
Radio Corporation
the
Republie Steel
Shell Oll Ca
Saint Reg. Paper
Union Sinclair Oil
Paclite, a point each in Atlantic Bacony Moblon Coast Line and Great Northern South Puprto leo Suar
Southern National Ga weighed on raits. Now
York
Southern Railway C Central and Norfolk & Western countered with gains of around
point,
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Biggest move was a gain of i points in Panhandle Eastern
Pipe Line which more than offset losses of around a point in Consolidated Natural Gas and Peoples Gas in the utilities.
In oils, Continental lost 1% points while Texas, and Stand- ard Oil of California Improved about a point each.
Molers were firm with Chrysler and General Motors up fractionally und Ford un- changed.
The Now Australian bont issues
are for a 15-year inflation .dangers.plus.a fronter period at four and a half per Dow Jones
cent. The bonds "are"-priced-ut | Weth export effort, are believed to be succeeding and Austria is look-30 and accrued interest to ing forward to a stondy rise myloid 4.04 economie prosperity for
maturity. the time being.China Mail Special.
NEW YORK COTTON ERRATIC
dollar
Steel WETE virtually changed.
closing averages
un-
20 Industriale
20 ralis
per
cent to
15 utilkies
05 Stocks
106,70 00.55 $70.00
40 bonds
00,20
|
Comm. future pricy index Moody's Index Comun, spet price index
165.54
163.07
476.30
The proceeds of the sale will be applied in part to the pay- ment of $18,028,000 Common- wealth of Australia 10-year 3 per cent bonds due August 1, 1056.
CAPITAL WORKS
Tenders of the maturing 314 percent bonda will be accepted in payment for the new bonda at $101, the premium repre- senting New York, June 18.
Averurd interest to covering the market #dvanced Cotton prices acesawed over n August 1. sharply with scilers reserved.
wider range in moderately active
Tho
After opening on
shart
in the afternoon, sellers pre-dealings today. dominated und sharu reaction was set in Futures: rubber
No.
July August
per
ib.
0531-00 845-047
80-81%
No. 2 rubber berib, July 81 No. 3 rubber per 10. July No. 4 rubber July TIJD
pol, nubbg unbolea Munket fupe No. path crepe
310-07 207-08
203-100 LONDON MARKET
London, June 10. The ruber market was casier with spt quoted at 34-9/10
ence perb, Prices: No. 1 Ras bot
Bettlement house term:
July Aug. Sept. July/Sept.
++
del./Dec. Jan/Mar
Apr./June
June
After hesitant start, prices enjoyed a smart post-opening rally, only to run into increaseci hedge selling and liquidation.
!
balance of the proceeds will be applied toward a pro- gramme of capital works in Australla.
The Syndicato.
spokesmon
Closing Prices
Alden Inc. Acy. Allied Chemilcada Allla ChalmOTR
American Airline American Cable Radio
Corp. American Cyanamite Am. Mach, a dry ... American Metal
American Smeiting American Tel & Tel American Tob. "B"
Anaconda Copper Armco Steel
Armour
Chase Manhet, Bank com-Chrysler Motors
Colgate-Palmolive Co.
Baldwin-Lim-Ham. Baltimore & Ohio Bendix Aviation Corp. wald that about half of the Benguet Cons.
Bethlehem Steel offering
would
abrood, Boeing Airplane gu Evening-up operations in the mostly to the Netherlarida and Borden (The) Co.
Switzerland, July delivery provided a trading Sw
and in smaller Burroughs Add Machine feature while dealers continued proportions to England, South Case (I.) Co.
Canadian Pacifle R. to ponder the effect of lower America and Belgium. In the Cat Tractor price under the Government ex- United States, he said, there Celanem Corp. port programme in face of A was interest in the bond offer ST. Financial Corp. possible higher loan rate for the mostly from accounts of growing crop».
mercial and trust bankcs. Mid-moming buying credited Australia in the
The last pubile financing by US market 245-244 largely to mli interests, way
was an offer of $25,000,000 15- presumed to be covering in
bonds in year 3 per cent anticipation of the higher loan
December 1984.
United rate. Also, the relatively light
Press volume of hedge selling, follow- ing announcement of the large Government shies out of thế surplus
stock, spurred local covering,
2434-0495
2431-2410
2334-231P
General markets, cif basis, ports: July Aur
241-34
closed
NEW YORK MARKET
New York, June 19, No, 1 Rss rubber futures con- by tract today closed 25 to 90. points Belgium is a system of "favour-lower with sales of 144 contracts, ed" imports
to keep domestic The standard contract prices down.
00 to 100 points lower with sties high
of the of two contracts.
Closing prices were; No. 1 Re:
July Beptember December
A
official Economics Ministry cald authorities did not expect change
the
nny
in the bark rate, nor
was there any concern about devaluation ihreats,
The ex- Btandard contro
July September December March
port situation was described on "very, satisfactory,"
THE
HAGUE! The Dutch Government has announced new regulations aimed at stopping Indiscriminate
sates,
The
Open July contracts-today totalled 156,300 bales. certicated stock devrensel 427
o 0,715 bales.
At the close the list was 15 points higher to 11 polnis lower. Opening prices were up 2 to off 4 points. New Orleans closed 22.99 28.41
up 10 to off 10 points 248-50 Month
London Foreign
Exchange
New York
Montreal
Amsterdam
Frankfurt
London, June 19.. 280-280-0/10”“”,
Commercial Credit Commonwealth Elec. Consolidated_Edison Continental Qui of Dei, Crane Co Crown Zeilerbach Cuban Amer. Sugar» Diamond Alkali Dow Chemienda Dupont de Nemours Eastman Kodak usu El Pano National Cha Erie Iattroad
Family Finance Corp. Ford Motor.... General Electric General Foods
General Motors
2.70-1/10-4.16-1/15 Gen. Pub. Util.
10.09-10.00
12.00-11.40%
M
4782-1783 Stockholm
18.420-14403 Zurich ............... 12.21%-1821%..
Others were unchanged.
-Uniec F
Volume Open interest New York Foreign
10,100
186,300
20,600 290,000
July
20.48
Oct
Dec.
21.39
20,700
430,300
Mar
20.00
20,000
EST 200
May
May
1,100
24.75
241,000
July
July
25.20
F1.600
Ocf.
Lower London cables brought Dec.
hire purchase commission house liquidation and Total
hedge solling while the outside
The regulations, which come spot market remained on the tomorrow şind Dre part of quiet aide with factorios still
2ittle Grati-Inflation drive, Illeating fix the first down payments and curiosity,
Holland's
Mor thon
No. 1 sa was
80% benta.
allpulate the time in which the quota nominaings wore ro- i
balance must be paid off.
•
Go-slow. On Wages. portoc
4,500 1,000 $1,400 400 0,700 1,478,000 Bulem
United Pros.
Exchange
New York, June 19, Canada England po-RYR
Gatty Oil
Glidden Co.
Goodrich
(B. P.) Co.
Goodyear Tyro
| Hoyden Choinical
Hoistake haining Co. .... Ingersoll-Rand
Inland Stool Co Interchemical
Corp.
Int'l Busineww ‘Machinar Int'i arvotor
International Nickel
International Paper
#9%
113 31% 249%
Bandard Brand Standard Oil of Cal.
Standard Oil of Ind Standard Oil of NJ Sterling Drug Co. Stokely-Van Camp Studebaker-Packard Corp Swift & Co,
Texas Co.
Tide Water Assn. Ol Twenty Century Fox lin Union Carbide
Union Pacifte Railway United Aircraft
UB. Gypsum
U. S. Line Co.
US. Itubber
U.B. Smelting U.9. Sli
Warner Bros.
$2
(From Our Correspondent) Tunover on the Hongkon Stock Exchange: this morning amounted to $1,100,000. Noon quotations and the
morning's fransactions:-
Sharks Buyers Sellers BANKE HK Dank Raat Asta INSURANCE's Union
240
10 1000
+
1080 1098
180 STA
..... 27714
Lombard XD SHIPPING
Wheelock
45
P24
94
8.40 9000 a 0.30
13
0 241 431
1000 @ 12:15
DOCKA, ETC. K, What bock
Provident
14 14.00 1050 14 LAND, ETC. HK Hotel.. 1450 14.40 500 14.30 2000 ₪ 14.30 HK Land 64%
BOO
031 RUBIER
1.50 1.503
1.479 1.50 10,000 @ 13%
1.55
... 23.90
1.03
K
500
20.00
(4) 25,00
100 à
451 Realty
Amalg
41
Trust UTILITES
45%
Train
37%
07
Biar Ferry
Youma
38
5424
C. Light (0) 24.10 2430
2500
T
49
C. Light (N) 1 Electria
24.20
33 600
2000
221
19
Bonus Telephone. 20
3.奶
225 1000 330
191
004%
Ria
L33
123 100 @ 113
1100 24,70
FOR
· ROTTERDAM
of
Rotterdam, June 18.
gtandard Oil - Company
New Fernby and the
Dutch Governmeni · have "reached agreement on the
› construction
.100
million guilders reinery In Rotterdam, it was rem ported today.
Construction of the two million ton capacity re finery will stars next year. The
into production is 1980, f will be built on s 499- acro sito "bottleneck" bar- bour area
the two
The Shell said "Çalti
other firms that have' · ́refineries **. Kix" Rotterdam-United Press.
LONDON
SHARES LOWER
London, June 18. Shares drifted lower in
100048 spiritless trading on the
2000 B190
14 19.10 10.0381120 London Stock Exchange to-
A
908 4 1390 day.
1000 13.00
Wall Street's
lower levels of the currČNÉ
combined
to
provent any major trends and
TALETOVE
500 14
INDUSTRIALS Cement.... Rope STORES, ETC. Dairy
and the close
REEL
700 € 35.75
13.20
accounts period
10.70 10.500 13.20
625
1600 restrict
300 € 1320
bargains.
36 43 4031
[Textilo
Iniustrials
Corp,
Yangi so Ailled
INVESTMENTS
4.20
T
120%
176-
3:00
Watson
COTTONA
1.00 5.50
400 1,49
to ·0,680
closed
with
numerous Anall averaging Arvetrică Bowater
losec s Exprice
WATLAN "Weak' spot,
1000 3.00 down a shilling.
channa
China Building Cotton Mills
steel
End narod were other casualties.
Olls felt
profit-taking and.. on a mixed note; Royal Dutch lost about 2 but Burmah and British Petroleum Tokyo, June 19.
near the mulled Communist China has begun anished with small net gains
close work on the last four coito Trinidad mills being built under its first
B4
27
40%
541
ve-year plan, the Catunmist New China NOWN
unchanged.
233% ported today.
Agency re
Sharp
1231
5634
435%
-United Pretp.
Westinghouse Electric
West Va. Pulp & Paper Woolworth,
British Celanese
Reports Big Loss
London, June 19.
Competition
wag
and
virtually
advances by German bonds led to a foreign group against the general, trend. said that the Bath Fotosh lens posted new ndlia are expected to go into highs, while Young Loan Issues operation next year, one year gained up to 22, clow to their ahead of schodnio.
peaks, Japanese Armed,
Gold shares
fg
The Agency
During the current five-year plan the Cotton Textile Ministry responsible for building 18 major cotton milis, the agency said,
of
found strength reported switching out industrials and higher prices ins Johannesburg. -
Coppers retreated, and dollar
"Eleven of these have already stocks were mostly lower, gone into operation and four British Government stocks others are nearing completion. had losses up to five shillings
quiet
A number of smaller mills are in also being built by local govern-Press. ments," ", the agency cald.--. United
Press,
dealings, - United
New York Sugar Market
-New-York, June 18. World No 4 sugar futures today closed 1 point lower to 1 point higher with sales of 51 contracts.
Gorman Scrap Steel Price
Duesseldorf, June 19. West German steel producers and acrop dealers have speed that the price of 170 marks for sub-ton for steel
sonar) standard
Domestic No 6 suggur futurea basis sidised textile exports in quality eleven,
Exth, closed unchanged to 4 points which was fixed
January, lower Europe and Japanese com shall also remain
with sales
of 840 in force this
COLL- petition abroad, were con- math, industry solates report, tracts.
Pending developments in the tributory, factors in the fall The domestic of nearly $1 million in proper month at present, the sources skies of the market in routine amounted to about 350,000 tons interests were reported on both
KAW market, verious' trade. fits of the British Celanese said, About 100,000 tons were evening-up operations. 3195 Limited, the Chairman said nooded from
Mail Special.
serap
yield
sbroad.China
Contract No. 4 (world)
July
September
72
203%
47=0
14845
403%
in his annual statement.
1812
4
4012
While
past year has 40312d boom a time of Intenso com-
petition with lower prices i Some cases the Company
had succeeded in mainalaing
the
Business was done
dollar per 1) sterling notes (por £3) Australian noter (per
5.80
16,70
Its
)) Indonesian rupiah (per 100) Biam Ucat (per 100) singapore (Straits)
13.43
740
20.30
K
Nei profts before tax were
£2.4 millions compared with Exchange Rates
£3.3 millions the year before.
The main cause of reduced profits had been the rapid, and continuat increase, in
Costa
owing to'inishee com- the company, and....not
which petition been able
to recover by The
creasing prices
Bon
to the export
Profits margins in
with
field remained poor in compari- the home Beld. Although the Company exported a larger vol1970 US and pros róf: vam at lower the
prices
004 ts of these exports
FAR EAST
Tan chairman of
paid
Anduereka bath and low..wago
17
443
150
John Manville Co.
Kansas C. Power & Light.. Kennecoll Copper
4016
OI
Int'l Tel &c. Thi
81.01-18/16 | 12ggett Meyern Tab, "Col 12.73-3/30 | Lockheed Aircraft United Press. Loews Incorp.
WORLD COTTON PRICES
The New York, Jutto 19. Shipment
Prices of cotton futures çlosoci in fair supply but at today as follows: prices too high for local buyers.
Bool STOCKHOLM; Infiniton In Reported small salon included some straight July three, ambers
Sweden is being tackled by from Indonesia at 2274 cents a government measures and tho
trade union polf-Impoood,
Blow,"
wages policy.
-
Ommercial banks are obliged
pound, cost and freight,
AMSTERDAM MARKET -
-Aanaterdae;: Jubin 197 The rubber carket was carry. 10 haintaly a high reserve of Hould funds so as to cut down rices closed today in guildors spending by the public, They por kilogram, elf, July, as follows: must obtain the approval of the No. 3 rubberne F32 bald
No. 1 cubper. Muharram 315) p National Banic, for the cond- No rubberANNITELMETS, BOTTL dons, dated, and priorities of No, стара
109 DOIL
De
LE NEW
Prices & cot
today, sa Kolios
៥
Spot July
Oot,
Mac/Ape:
May/June
Egyptán Kattank. July/Aug.
BÀO RAU
in the Far East, were 344 already well known but addet "I feel strongly about the type Büropean
there was large pro duction of man-made fibres in Europe, the chairman did not belleve European producers were more efficient than the British [ producers.·
Their domestic prices avera 23.00 much higher than British domos 240 the prices but they seemed to be 67.80
able to well for export at prices as much as 40 per cent below their domestic levels,
Sao Paulo, June 10. cruzeiros per kilo were as fol
July Dafober Dedembar
"LIVER
Liverzióti
Colton future
– Iz dhe US, the 海 of #16/10 vrriddling`belfon
It was established that many of these exports were subsidised and this into the task of meet- Ing their competition in export folds "extremely, dificult and
Referring to ories | còming year, the Chainman saidh vodata Sandratatla was, selling, priečaj, pointed to [no] 30,1,conta. Goles combed 219,208 | improvertine zin prodly over the.
past your.—Reuteri
In the local anarket
AROITICIAL · rates
October March
May
July
this Contract No. G
July
September
November
Bootcente per ib.
put your LAZY money
to work!
Course we
don't care what you do with your money, but wouldra't it make sense to put it to Work in World Wide Trust and let it earn Ble dividends.. TAX-FREE)
Write for Information
The Moroccan Bank
olsa knowa
The American and Forelan Bank
LED PASTIUR, TANOJIR, TANGIR'Í'AMERICAN BANK