TRADE
THE CHINA MAIL, MONDAY, AUGUST 27, 1956.
aunch
COMMERCE SECTION
New Anti-Inflationary Moves Expected In U.S. HONGKONG
NY COTTON MARKET
REVIEW
By William T. Plunkett
New York, Aug. 26. Cotton traders found the line of least resistance on the upside in the futures market last week.
All deliveries freats March (1007) forward touched 712?W seasonal highs, while the near-
by months beltered The topx reached a week ngo
Technical realising and hodge
early gains. selling pared
bul ni Friday's chee the list still ruled 17 to 34 points-85 cenla to $1,70 a bale-higher than the preceding week.
Strength reflected a number
cited:
1
REDISCOUNT RATE MAY BE
INCREASED STILL FURTHER
By JOHN MORKA
New York, Aug. 26. Financial circles throughout the United States buzzed with fears of new government anti-inflation moves as money rates surged to their highest levels in over two decades.
STOCK
EXCHANGE
(From Our Corespondent)
Business done on the Hong- kong
Exchange Stock
this morning amounted 10 ари Noon proximately $142,000. quotations and the morning'o transactionis:
shares Buyers Beltern Snter BANKS 211C Bask INSURANCES
Waterbos:
(Q) IN
Wheelcek DOCKS, ETC. K. Wharf
Speculation was rife that the Federal Reserve System-ING the nation's money managers-might further tighten its already firm grip on credit by a further increase in its redis- count rate. The rediscount rate is the rate the Reserve charges member banks making temporary loans in order to add to its supply of lendable funds.
The increase-It rialis cs--would
مرز
it
the
in
mate-(34 per cent by feading banks.
sixth This is a full pertentage_point KUCECRIVE Increase
the higher than the rite in effect a 17 months.
wili year IL
Infestat rotes BRO. Other that borrowing will are scaled
upward from the become more selcctive aniel cimluating, with ull kinds
mean
dis-
Vonsumer
and government--having to pay more for money which will be harder to get.
prime rate.
2. Mas! banks raised its rate on loans to brokers and deater to mance atuities purchased from 41⁄2 per cent. Investers in Tum will have to pay 3 per teat
for louns from broker.
Bankers acceptances rates
pe
3. were boasted anther centage point, the wood Fiderul Reserve just is few days.
day.
(The
Talse
<did
interest rates of ly Friday, August 24).
announce
the effce-
High Rate
Instalment Plan Goes To School
New York, Aug. 20.
the nation's
Thousands young people will go ta school thi instalment
this year plun.
חנו
A spokesman
Jo A personal Buance company suld many
i partrits are sending their chil-
itren through high school
the same
the family cur
'viden (01 LAND, ETC. HKC Hotel
HK Land
Humphreys
Really
RUBBER
Amaig.
Trust UTILITIES
Yetitst
Light 10,
1825
49 1035
45
$0.20
23.00
120 m 23
U
*B 40, 413. 13.8 14.10
13.10 13.30 1500
* 001,
300
£
20.10
1.45
1.45
1.50
24.20
son 11
24 24,10
C Light (N1 21.30 21,70 Electric
Telephone
101
100 110
32.90 2000 24.10
327 h 3000 | 31,
24 en 23.20
1000 Ń 20 1000 » 25.10 100. 28.30 500 24.10
38% JUN 1400 al 38%
350 t 24
IN INDUSTRIALS Cement...
23.00 24.20
STORES, ETC
Dairy
Watson
L. Craw.
I OTTONS
13.00 10.20 12.00 12.00)
500 43 30
Texte Curp 425 Nanyang....
7.00
200 20.40
Singapore
$1
way they
Stock Market
CREDIT FOR AIRCRAFT INDUSTRY
Duenveldofr, Aur. 20.
The West German air- craft Industry's Federal Association has announced that a
a credit of 35 million marks is being distributed to major firms to help the industry resume production after
an 11-year shut down, Orders have been
ceived to
produce
071
foreign aircraft of three types in Germany under Hoeneo. -the
Page
London Markets
Fail To
Hold Brightness
By C. T. Hallinan
London, Aug. 26.
Markets opened last
week
quite
brightly but failed to hold it. One headache was the series of Wall Street
another, of
the growng impasse over the
Association
said.
The
are
falls; 194
Plaggio-P 149, an
aircraft
and
Fatlan training plane, 360 Foura- CM 170-B Magister. Freneb les trainer;
117 BNCA-N 2501 Norates, a French
transport plane, In addition the Dornier works are building 160 planes of their
own design, the DO-27 reconnaissance air- craft, the first of which are expected to take the air in about two months,
Engines for most of the aircraft produped in Wesl Germany must stit) be im. ported. - China Mall Special
Egyptian Goods
Go To East
European Bloc
apparently Suez Canal.
Chief
course,
was
victim was the pleasant turnaround in British Government stocks which had started to edge up out of the bottom. Gilts need confidence to compen-
incomes
sate for the modest
they distribute and when confidence wilted the giltedged market wilted too.
At the close Britis Governments
weru
ek bound to rise slowly in price if crty they can escape the shocks very disorderly pleture with of internsMonal unpleasantnesses; War
Loan
and t per cent historically. they have several Consola strowing a frm gain of times found the
month five-sixteenths whil: the others August an unpleasant month.-
of showing a firm amox ranging United Press.
from Old Consels 1/18th to s
much as th
They took very but the in-
cheap these days stitutions still showid anxiety to pick them up. But leading industrials also hud rather disorderly appearance by į the time markels closed for the week.
Heavy Buying
U.S. Apparel Industry
Cairo, Aug. 26. The Egyptian customs administration today pub- lished statistics revealing more than 26 per cent of
Associated Electrical Indus- tries enjoyed heavy Egypt's exports
buying- to the Eastern European bloc term atomic future-and gained Department with statistical apparently inspired by the long-
went
New York, Aug. 26. Members of several American apparel industry organisations have
been asked to supply the State
of factus Trade Covering in October In the wake an it a steady full in the certificated stock; 2. Increasing complaints | borrowers-business, of crop deterioration caused by drought conditions: 3. Estimates suggesting cut of one/half to a million bales in the next Experts think the Board might
even unisounce 4 estimate:
Lo an increase government crop
the rate at its meeting on Thurs- Increasing
of acreage amwunts pledged to the soll baak; 5 Heavier koma
which entries, point up to talk of a producer | Board
for holding movement
higher prices; 6. Political promises for
In any case, many feel thức á 4. The cost of borrowing by college farm prices in the election year
rate
becsst 8 Revitable-und the US. Teasury rose to 23-underwrite Looking at the statistical particularly in view of your highs as the rate on ninety-washing machine-on a pay-na- picture, The mathematician unprecedented demand by busi-one day Treasury bis offered
you-go busis. pondored the
probable supply ness for funds in the face of last work rose to two-tenth of iluallon next year in view of dwindling of inflation and an
This a point to 2.818 per cent.
Rudolph Neuburger, presiaunt the backwarthiess of CUTTY-OVET
upward tread in prices and
ralei
well above the current of the Tuition Plan, a subsidiary crop progress and in view of the wages whinh might ultimately 2 per cunt discount rule now of the CIT Corp., said instalment one mullen acreage pledged to
take the term out of the pre- In effect in tea of the twelve plan education has been
in Brokers today quoted the fourth place last year among the soil barik,
rent boom and lead to economie memb banks, Only the San operation for nearly 20 years. Ifollowing stock prices:
importers from Egypt as com-after day, and sustained a lot of chaos at some later date.
Francisto and Minneapolly defstarwa
Openingpared with eighth place the pr:-elling. Royal Dutch icet rome group-organised to more effec- tricts hurve higher discount customers.
£20 above FL
1950 Tow Entus
of fively oppose Japanese imports vious year. China rauked rate-3 per creat,
Icst-have been advked by the after being tenth the previous 68%; British Petroleum year, while the Soviet Union 7/-, Burmah Oll 5/- and Shell Department at a meeting last
Transport
Wednesday to produce the data In a week or ten daya,
Mr. M. J. Lovell, Director- Counzel of the National Asso- ciation of Shirt, Pajama and The report did not give figures
In Sportswear Manufacturers, al- for export trade to foreign coun- | favour last week. German Dawes
the tributed tries, but said henceforth Egypt Loan, non-assented, lost £1 and
Department's in- terest would
to the inclusion in the £14% while restrict importing of the assented,
the Democratic platform of 31.70 duxury or unnecessity goods, Young Loan, both
plank both co-arsented calling
corrective for $22 and would try to increase pro- and ascented, wer? down 12 sa
nction 33.40 duction and subsequent exports were also the two Potash Loans. harmed by imports.
when American industries were $1.48
the Preliminary estimats on next government
report crop suggested the figures be reduced substantially from the 13,552,000 balos,
4
The certificated stock dropped to a my low at 3.472 bales,~~ United Pres
London Foreign Exchange
Landon, Aug. 20,
New Levels
121-
ནི''
with
Singapore, Aug. 27.
Rubber
Co
Borneo Petroleum
28 student Now
Lintang Gutu approximately
Lid 16,000 students are enrolled,
Britis
Syndicate "More and more parents have Consolidated Ti Smotterd found it convenient
Ord, to make large semi-annual or annual of tuliion and other sald Mr Neuburger Isn't surprising because tuition costs have more than doubled in the last 15 years."--United Press.
A high rade in Treasury Meanwhile, while the money Bucing normally reflects the market waited for the Federal increasing pressure on money
und is taken us further of payments heserve to make its move, terest rates on prime
Irend kans, inflationary
1 the fees, bankers
(used acceptances mostly foreign trade) and loans to brokers and deal:rs edged to new levels løst
столому.
5. The higher cost of corp-r Anancing has forced revisions inj
The pressure on money FOR Ally four major bond offering, over
Singapore Rubber
Market
values
$1,02
BOU-
27/9d
Fraser & Nanve Lid Ord, Frater & Neave 7% cum.
$1.95
pret
$3.00
$875
Hongkong Tin Lata.
frad
#1.72 0.713 $2.87
Co.
Hongkong Bi Shoghai
Banking Corp.
Jenipea Luo,
Lunas Rubber Estates Lid. Matayan Breweries
New
Serandah Rubber
Petaling Thi Ltd.
Singapore Cold StoragAZ
Ltd
Rames "lutel
South British fusurance Co
Ltd.
Straits Trading
Strait Stearn-dily
United Engineers Ord, Wenme Bios.
exdivCluna Mail Special.
in 1955 compared with 144 shillings to a new high of per cent in the previous 73/3 but Rolls Royce tumbled
3/-
and Borax American Invourite lost a 10 shilling
Oils were in the news dig
year.
Czechoslovakia
captured
Com
occupied lenth place as pared with seventeenth in 1954.
RESTRICTIONS
31-
ita
data
on the effect of Im- deferred-en ports on employment, pro- friduction and prices, it was
revealed today.
Incidentally the ahares of the Suez Canal company lost £0. closing at £50% compared with Tast week's £02%.
Foreign bonds were not
Members of the newly formed
Government non-assented alo
enlarging the Government's oil Japanese non
non-naverteds and ex- $13.50 nay with a view, to import-senteds were nearly ell tree-
According to Mr Lovell, no $26.00 ing loss oil from abroad. $14.25
tionally tower while the Tokyo mention was made of the poss!-- $8.00 Egypt's Minister of Commo.co.5 per cents non-essented gained bility of imposing
a quota. $2.99 Dr Mohamed Abu Nerir, today £1 and the
officials, including 1030 conferred with a trade mission lost
representatives £1. Japanese were all
of the from East Germany led by the fow shillings higher. Dollars Justice, Agriculture and Com- Deputy Foreign Trade Minister, bonds were severely marked nerce departments, talked in
of Herr Heinrich Rau,
the down in accordance with 0.
an agreement their ang
with importing
Japan whereby the latter might International of nirety thousand Wall Street fats.
voluntarily limit exports to the points tome of chemical feriliser from Nickel logt 6%
ond
United States locat East Germany in exchange for Bethelhem Steel 6 points; 07)
by specific this
of goods zadgar- ulher hand, Shell Union categories Egyptian cotton and other the
ments--United Press.. gained 2 points. 0.04 | agricultural products.—Reuter.
and fears of raise in the redis- the vast two weeks. The Aug- coval rate e mbined with unclated Investment Company re- seiflement arising from the Suer duced Ft #theduk offering Conal controversy to whittle some last week $50,000,000 $30,- $5,000,000,000 in market valua-900,000. The General Acceptin
Singapore. Aug. 20. trimmed tions in the past six sessions, Corporation
The pro
The murket was quiet on posed offerings of $20,000,000 by The ad market was like half and put off its sale until
sellers rezerved niti Saturday with **and Foreign exchange rutes closed | wise hit hard and new tunnelogirext week.
de- Last week other
gradually
In- on Saturday as follows:
plan of major American con-
postponed offerkigs preciated. There was some
erest in forward deliveries bul pantes running
do millicus of companies
fetalling
lower grades were quieter.
Future closings were: Nu t rubber per tu. Sept. 0916-09)*
Business was done Oct. 05-0934 Nov, unquoted unofficial exchange market 8, US dollar (per #1)
conering at the following rates:-
0212-6314 | Sterling notes (per £11 096-09]| | Australian notes (per £1)
Indonesian rupiah (per 100).. Siam feat (për 100) United Press.
Singapore (Strakte)
New York
Montreal
Austeri
Copenhagen
Brussels
Lisb
Oslo
Stockholm
Zurich
Dihers were unchanged
come
$125,000,000,
270-2.70-5-10 dollars were likewis, unsettled. presumably unwilling to pay the high rates. Meanwhile Ruing At midweek, there were there long-term Treasury bond prices 19.34-1034developinentre
hit new 1958 lows.
2.73-2.73 10.62-10.83 ! 133.07-130.00
80.10-80.20
19.9034-19.99
14.40-14.4025
12.17-12.132
-- United Press,
↓」
Nr. 2 rubber per t. Sept. 1. The "prime rate," the rale
No. 3 charged for loans by companies The nation's banks now find No. 4 with the best credit standing. | themselves caught between a Spot rubber unbated
demand was boosted to 4 per cent from tertiße
for
credit-No. 1 pale crepe
Blanket crepe mostly from busines to under- write current needs and future nsion profgrammes. Business! by major Now York banks, by way of
of example,
12ta! 2 billion more at this time sugared to last year. A record $3,000,000,000 in securities were offered for sale in the [second quarter of this year, a $750,000,000 rise over the first quarter.
Freer Movement
Of International Capital Predicted
Montreal, Aug. 26.
The Bank of Montreal predicted today a freer movement of international capital to help under-developed countries with the operation of the International Financial Corp. this month.
$100,000,000,
and
Marly
Most of this rise was in bonds
to finance part of the record business expansion new in pro- FTVER
Any lightening in the credit structure of the nation
w
tally set off a new round of Federal Reserve approved
critickm. Last April, when the
its
most recent rise, in the discount rates, the auto, appliance and housing industries complained its sales were being discouraged.
They
Insisted there was need for any credit braking
at the time. At that time also, renk-
Exchange Rates
Jes the
15.08
12,58
18.30
750
Bank Rate Increase
Convulses Stocks
By Elmer Walzer
New York, Aug. 26.
The Bank Of England
Statement
Londen, Aug. 20.
The Bank of England state- ment for the week ended Aug. |22, reads as follows:
Note in circulation Public depOLLIE" Private diposits Government securities Other securities Rezepts
Ratio
Stocks suffered a tight money convulsion in the first three sessions this past week and made a partial recovery on Thursday and Friday on light The volume.
Banks raised prime interest rates and boosted brokerage loan rates to 4 per cent from 4 per cent. The market boomed on call money at 10 to 20 per cent in 1928 and 1929, it
was recalled.
Sterling 1,924,300,00O 13,137,771 200,$89,583
35.901.826 77.929.525
Unlied Presa.
Bank Of France
Statement
The Bank of Fratice statement
Paris, Aug. 20.
for the week ended. Aug. 13, | reads as follows:
is
Total gold holding.
to
Tolki, ther
currencies
201.304.308,425
10,350,008,131 22 116,215,800 200 128.300,000,000
other
circulation Currest!! #oobunta, and
depacite
3,000
Pres.
The IFC, the Bank raid, in, in the three years 1952 to ing officials in the Eisenhower After the banks raised their the week. Ullitter, down Its monthly business review, 1954. Or this more than 70 per Administration were divided as rates, half of the regional every session, lost 1,87 points was formed to help the flow of cent
to the necessity for the move, Federal Reserve Banks on Thurs- |ciowa at 03.80. The average for was in petroleum
Sight balance abroad. private venture capital from mining enterprises.
day were on a 3 per cent dis-65 Blocks lost 3.20 polnim,
ALFU the developed
Great Fear to the under- "Recognising the cold but not
count rate, up from the previous *Some of the selling early-in | Advance, so Currency --grun developed countries. It has an unreasonable
rate of 2% per cent. This move
week reflected fact that indivi-
the Suez Stabilidation Canal cells.
Total balls authorised capital of duals or companies will not rise Thirty-one their money in overdos pro-
Although nothing official haa countries have atrendy become |·jects Merely. Because they are been asid last wesk, ', President!** 31ocks early in the 'weak, stone Middle East olis ́farid no) Bank notes in
said. On Friday another nebank Cleveland - booted
mere
poorly than many after
boosted (ità (iseuëm. recent steel strike settlement discount rate step-d
ints on the Gulf Oll lost 4% points on Canada's relationship with venture promising to be a pro- and the resultent price rise that Money the International Finance Corntable one, the IFC is ready to inflation was one of the danger blau market men said the week, Royal Dutch 2 points
for money. which poration is "raore likely to that beck its appraisals by string
and Gelly Oil 2 pointed sigos that would have to be forced the rates up reflected a *Addressograph fell & point of a supplier than a receiver the risks with private interents watched. Secretary of Com-buying Industrial pieture. This and Continental Oil44. points. of capita furula
the Bank and landing the weight of its merce Mr Smelair Weoks ward¬ | time the big credit is going into bed 3 pointsvor 'more. noted.
ed also that a watchful eye industry. In 1929 it wont into
memberr, having subscribed a exhorted to do so, but only if Eisenhower noted
Ittle over 78 millions so far.
Not Unreasonable
Ure is 'n good prospect of
n
prestige would
be miturising would have to be indoed li
decribed as practically on the Bank: nchiɑRRY fationery WE DONATE stocks. Today's stock unarkut,, is "||[Alberto fio, calabëlstiment:'of?. Most of the flow of produc- |
this Right now the great foar in cash basis. Ive capital for the establish==|| Enew A.- Infernational tending that businceren will expand mant, de expansion of foreign station, shift -£n 1. the their produtive: 7), capacities, ukehdiaries...) has come a; mainky batter and an increas the Federal oficials, while notios-
the United
unt of pro-ably silent ca this reasons for The Industrial Bank observed, addinsize of the muy
their a monetaryzmovay in the 13,40 : pokite ky:LEW
est, are known to feel that 11, meirions of the
[lid][oconomy," thoët” of crippling the points, Rails
boom--United:Frassi
land clised at 102
amount. Invested in countries countries; did
Canada and develop Over Kurtga "Big Boen 26- of- the kutuonly: $100,000,000,| Prém
the
New York Cotton Exports
New York, Aug. 20. Raw cotton exports. and Itións
·reported! Now
In
Bing
Average Fel
Bethlehem Kansas Union Carbide, Du Pont
we were sever -feil Amaridan: agricult
50
points and US Rubber ine 499 on. United Pr
follows
Bound To Rise
There Was highly selective |buying of gold shares but these selectives stood out in a rather dult marcet.
to
General opinkm that British Govierminis 6749
NAMESAKES
Answers: 1 Jiba, 2 Sailor, a Fight, 4 Ensign, 0 Battle, o Forectatic, 7 Navy, 8 Below, Port, 10 Prow.
Jean Benbow (Admiral).
A NEW COMPANY?
From the word "GO"
place your printing order: where you are assured'
of personal attention, expert designing,
the finest materials and craftsmanship.
From Articles of Association. Share Certificates to Letter Headings and the many other essential items; consult the Printing Department of the South China Morning Post, Ltd,'
Call in at any time d and examine apodimens
of quality printing which we shall be proud to show