NEW YORK COTTON
MARKET
REVIEW
By WILLIAM T. PLUNKETT
New York, Jan. 0. Cotton futures this past week celebrated the com-i mencement of 1957 truding by rising to the highest level in three months on an expanding volume of trade.
After 31⁄2 sessions,
prices at Friday's close ruled 20 to 53 points higher than the preceding week.
Independent
strength
nearby March contracts became the dominating market influence while traders awalled congress- Jonat developments on farm legislation, or other Eresh centives
months.
for the new
Broadscale spot house
crop
in March, supposedly liquidation against spot cotton purchases, was absorbed by an equally large demand from domestic mill mleposts, shippers and cartside commission houses.
MARCH CONTRACT
March contract rose to 34.45 cents a pound, getting within a single point of the season's high level established last Oct. 3. and showed cumulative rise of $2.59 a balo,
THE CHINA MAIL, MONDAY, JANUARY 7, 1957.
TRADE and
COMMERCE
SECTION
Profits Squeeze Fears In HONGKONG
United States
BUT GOOD PROSPECTS
OF NEW
12.
ECONOMIC PEAKS IN 1957
By JOHN MORKA
New York, Jan. 6.
US industry faced 1957 generally confident but beset with fears of a possible profits squeeze despite prospects of new peaks in economic activity.
offset
over
by
in
כאל
World Rubber Production
STOCK EXCHANGE
(From Our Correspondent)
to
ap.
Washington, Jan. 6. Business done on the Hong- The Natural Rubber kong Stock Exchange Bureau
This amounted of Washington morning estimated last week • 1987 quotations and the morning's proximately.. $300,000. Noon world rubber production transactions of 3,160,000 tona and A world
consumption of 3,100,000,
Buyers Seller Sales
་་
Bhares
DANKA
HK Bank INSURANCES Union
- 1000
940
The figures included both natural and synthetic rubber.
The Bureau broke down Lim figures by principal production | BUPPING
Wheelock consumption arcas AS (0) ..... 7.10 7.16
and
follows:
Production:
1,120,000 tons
LAND, ETC. HK Hote.. HOK Land Healty
Page
US Investments In Latin America Rise
By HARRY W. FRANTZ
Washington, Jan, 6, US direct investments in 20 Latin American republics increased about 550 dollars total mark, and prospects were million dollars in 1956 passing the 7 billion bright for an accelerating capital flow during 1957.
This does not include govern | tialities mounted rapidly, with mental credits for Latin Ameri- extensive exploration in Guate- can enterprises which now total mala, and report of an im- more than one Lillion dollars. 1000
porlant all discovery in Costa The Middle Eastern 2000
crisis len turned attention American
Recovery
7.20
7.18
of
North
DOCKS, ETC.. K. Whart Dock..... 47% 4014. Provident
ΤΟΥ
02
desirability
Investors
of
to the
expanding There
..... 13.60 13.80
500 13.70 hom
DRAFTERS of
petrolcuni minerals within the Western businessmen Hemisphere because of relative
and
15 102 1000 & 15.10
States, 670,000 tons
tons
Amely RUBBER Trust
... 1.0214
J11 024
1.40 5000 mp 13%
1.3650210 18245
1.80
Tam UTILITIES
Blar FRITY.. Yaumati
United States, synthetic: Malaya, 630,000 tons natural; Indonesia, 720,000 tons natural; rest of world, 540,000 tons natural and 145,000 tons synthetle for total of 085,000 tons.
Consumption: United natural and 030,000 synthetic for total of 1,600,000 tona; United Kingdom, 175,000 tons natura) and 45,000 synthetic for total of 220,000 tons; rest of world, 1,130,000. tong natural for and 250,000 fons synthetic total of 1,380,000 tons. ESTIMATES
The Bureau also released estimates for 1050 and consumption as follows:
production
Production: (world) total 3,105,000 tons:
Electric
likely
་ ་ was extraordinary re- covery in governmental and confidence in security and geographical pro- of the Peron dictatorship, which Argentino, following the Duster ximity, experts told the U.P.
to encourage more today.
The active interest of Ger- enterprises in future years.
co-operating In manufacturing man, British, Italian, French,
Brazil's Eelgian and Japanese companies Industrial expansion
steady internal 23.20 £3.50 300 23.00 in Latin American Investment mented in all economic circles. and Industrial potentials was The world politiept situation another Incentive to an intensi- and particuarly the abnormal 3.0 fication of the North American evoluilon of Eastern Hemisphere
140 143 102 103 100 103
economic
Is com.
C. Light (0) 231 23.70 1000
100 21.79 311 312 163 31% desire to co-operate in Latin petroleum trade
284 M 3116
will tent to Amorican 24.00 24.30 1900 24.70 T: (N)! 22.70 23.00
develop-keep United States Investors Interest alreeted predominantly loward the development of Industrial
materials in Lalin America.-United Press.
Upward Trend Oncial statistics for 1950 o the US private investments will 13.50 13.90 1300 13. not be compiled before March,
10.40 15.00-3500
ment.
ita
INDUSTRUALS Coment
Nope
381 38.75
150 + 30.76
13
STONES, ETC.
Dairy
Textile
Watson
COTTONS
Corp.....
4.35
5.90
4.70
Although the United States moved unto new high ground in production, consumption and spending last year, corporate selling profits lagged behind this increasing tempo of prosperity. This was about the only segment of the economy which failed to reflect America's rising levels of activity. Indications are that America's for an improvement of at least cent corporation tax which is industri plants will be under fouir er Ave vents over
the supposed to
reduced ncreasing pressure
cents automatically the "flour" level of it and U
carly lo 1957. nex twelve months to mat-under the deterred wage packs. It is now believed that the US Jain healthy profit margins in
facing now demands
for the face of stronger competition,
Thats the 1957 wage settle-
economic pid.
uncertain In- rising labour and operating meng might be in line with 1950 ternational conditions along with costs-some of which cannot levels, which showed wage in the prospect of a sharp rise in be exisily
manufacturing to military spending, might as the price creaKES advances,
about 12 cents an hour,
Congress hopes, extend the rate. Although Twi tabulations What worries some experts is Of course the Traders attributed the under-
current profit
of for
1950 aro
yet not the lure of lying
factory demand for the
pro- squeeze does not herald the end spot compiled estimates indicule ductivity to keep pace with the of profits and dividends.
United States, 1,080,000 tons month to the relatively small that American certificated stock, along
corporations inflationary price trend. Factory simply
means,
to synthalle: Malaya, 030,000 tone according with carned less than they did in productivity advanced little experts, shipper covering against export 1855. Profits after
that some companies natural; Indoncala, 780,000 tons Menyang taxes were last year while wages have one will
rest of world, 550,000 | INVESTMENTS commitmenta
show beiter and investment said to
going in natural
Yangtze 125,000 tons be slightly under the up and price rises have failed, others and that some Industry tons natural and total amount of the previous 16 keep pace with costs,
Toupe wift show wide synthetic for total of 675,000 On the assumption that Morch | year. (1
divergencies among its members.
Consumption: (world) total of There are contracts may
some hopes that move higher,
Standard and 2,890,000 Rons: According to the outpul per man hour will
Poors analysis, 1857 will stress continer to rise at about 2 per selectivity,
560,000 conflicting featuring
675,000 annually, cer:
although a
tons foresces the recent
the synthetic for total of 1,435,000; government report in-dividend increases this year as dieated some slowing down in outpacing the rate of rise in natural and 40.000 tons synthetic
United
Kingdom, 100,000 tons It finds that prospects for total of 230,000 tone, rest of profits.
particularly favourable for world. 1,120,000 tons natural and the stoel
and makers 195,000 tons synthetic for total bagte equipment; of 1,318,000-United Press. aircraft companies; oil producer) *** makers of autos and nuto parts, which are expected to enjoy aj comeback.
buying.
some technicians commenced to watch the certificated stock for
а
clue to possible tenders. First March notice day will be Feb. 31. The certificated stock cur- rently totals
Rising Sales
This phenomenon of
rising sales accompanied by a drop in
net profit has worried many this rate.
A recent National tabulation of quarter carnings reports showed
only 2,980 bales observers. while the open interest in March at the week-end was estimated Cy Bank around 300,000 bales.
from the
Labour Peace,
Industries
that 57 per cent of 094 COD- New crop months borrowed panies canvassed ayjoyed higher
While America's buoyancy
March sales compared to the previous generally anticipate a year action, although buyerS cau- year. 37 per cent of these relative
labour peace, their tiously followed the advances. showed sales up and net down. efforts over
the next
twelve Healtancy reflected continuing
months, are expected, to be uncertainty concerning the gov
The pressure on costs-mainly chacheilod In
following the emment support rate for
thenbour costs will become in-directions: new crop, plus extent of soil creasingly severe, according to bank compliance and congress-
i. Greater experts. ional action on turm legislation.
emphasis on in- Auto industry will have to tegration of operations with a United Pres
shell out some old models acabour costs..
offsetting mounting year under the terms of Jong-.. ringe wage contraels rovering
2. Greater 550 agreements
automation 5,000,000 workers,
NAMESAKES
some
viaw to
and
ara
of
with It
1957 Dividends
It
Fortune Magazine sees dividends
United States, natural and
Allied
.
But the upward trend was in- dicated by government experts os private capital
ما
mw
London Stock
Market Review
London, Jan. 0.
5000 or 7.03 follows: New
for Latin American republics in the first half of 1950 amounted 130 million dollars and Jumped in the 3rd quarter alone to 137 million dollars Stock markets opened the with the probability or a 4th week with a remarkable display Turnover had a dollars.
daily average of 0,253 bargains United Additionally,
States recorded, highest in a good companies already operating in many weeks, and demand for Latin America are estimated to British government stocks
reinvested about
200 for selected
industrials wavered at any dime between
tons The Bank Of England quarter total above 100 million of buoyancy.
Statement
London, Jan. 6.
and
never.
The Bank of England state-on dollars from their earn Monday's opening and Friday's
ment for the week ended Jan. 2, reads as follows:
Notes in circulation Public deponita....
The Bank Of France Private deposits ...
Statement
The Bank
Paris, Jan. 6.
of France slate-
Pranes
in 1957 topping those of 1956ment for the week ended Dec.
27, reads as follows: and holds out the prospect of at least a one billion dollar in- Total gold holdings 3012204,302,426 crease in net profits over 1958. Total other currencies This would amount
to a five Sheht balance abroad
in EPU per cent boost. Business will be 'Advance to the eure up next year, it finds. That
stabillation should mean higher profits and at bills discoured 1,784,605,102,102 morging.
emphasis on technological improvements in order to effect The overall average increase of savings In production costs. Answers-1 Reveal, 2 Pain-living was up about 2.6 per cent
3. Increased diversification ter-3-Gallery, 4-Portraits, an hour. With the cost of living.
----#But,”-——It—-cautions,-"the Spain, & Qually. 7 Pictures, B
leading to. about 2.5 per cent over o
consolidation and interplay among
costs, Features, Mezzotints.
year awo, Many unions are mergers to further strengthen ductivity, and prices in 1957 expected
Lo press for even competitive positions,
will be complex, and the ups (The Spanish better adjustmetus. Experts
among them may and downs feel labour might move in 1957
simply be offsetting."
Velasquez painter).
up
COTTON GOODS
MARKET
MARKS TIME
New York, Jan. 6.
The cotton goods markets, both grey and finished started 1957 with business-slow as buyers and sellers continued to mark time. waiting "to see what develops."
Expressions of hope for an early pick-up in buying, after three months of extremely slow business, conflicted with reports of increasing mill curtailment in the wake of accumulating cloth inventories.
An Important New England into carly 1957, will be coming organisation, operating 13 mills into the market before long for weaving fine cotton cloth, on at least "mederate purchase." nounced it will adjust production schedules hereafter"lo
con- form with salca,"
For the next three weeks, the plants will run of about 70 per cent of capacity as against
00
Mill executives, keeping kopes on a high level, were encouraged
by the fairly good business
in
Industry hus been spending huge sums of money to effect new economies in operation, but in some cases those expenditures haven't resulted in offsetting labour costs,
pro-
"The recent level of pre-tax margins at 18.8 per cent cur- porate sales stands just midway between the peak
rate of 20 American railroad Industry:- per cent reached in carly 1953 Tspite expenditures running and late 1956 are the low of Ile the billions over the past Just under 17 per cent during few years, most of the nation's the recession of 1954. It that rallroads have been best margin turns out to be
at spending huge sums merely to average for 1957. then 1057
will top keep from losing ground, and net profits
those of Lesund themselves spending 1956 by over 1.93 per cent.. these huge
of money "The problem of maintaining merely to keep ahead inflationary
full employment, price stability
sums
spiral,
the of
the
economie
rency
13.810,800,740
49.160,100,000
71,000,000,000
Government securities. Other securities Receipts Ratio
ings during 1950.
At the end of 1955 US direct close. 1,011,453 private investments in Latin
Sterling
17,007,173 America
were
203 221.120
223,988 principally the 66,302,318
The foreign exchange market 6,550,000,000 kept step with the stock market; 207,70435 dollars and government credits, against the dollar, sterling im- half-penny Export-Import proved nearly a applicable to the same during
the week, the Brst time 19.0 area were 1,013,000,000 dollars.
it hos shown such a burst of strength since last July. Including portifolio invest- ment such as government bonds
And yet and long term bank loans, the lolal US private
United Press,
Exchange Rates
focal
Business was done in the unofficial exchange market morning at the following rates:- US dollar per $11 Bank notes in cir
Sterling note (per 41) culation ***** 3,040,003,247,160 | Australian notes (per £1) Current accounts and
Indonesian rupiah (per 100)
· deposßáí -- av 173,728.351.402- Siam-tical (per 100)
-United Pres Singapore (Straits)
Latin American bin
at the at the
either long or short view--seem- the news-taking ed pretty grim.
OIL SHORTAGE end of 1955 was estimated at The shortage of fuel oli, fore- 9,244,000,000 dollars, In recent casting severe setbacks is years there also have been largo country's production and in its in the United Stated investments in the vital transport, was alone enough 6.17 Carribbean dependencies 15 Great Britain and the Nother-in ordinary time; another factor to cause a stock market slump
12.73
-27.75 1.30
WALL STREET
REGISTERS
SMALL GAINS
By ELMER WALZER
dt
Consequently the grand total of United States Investments in Latin America probably already in the neighbourhood of U.S.$10,000,000,000.
17.60 lands particularly in off and was the continued drain on the
bourite.
sterling crea's reserves of gold and dollars which would have brought the total well below 2 billion dollars from
the Inter- national Monetary Fund; modest and rather humanitarian In 1960 major United States interest has to be paid on this investments were in Venezuelan and eventually it has to be paid oilnolds
and new concealous; back. and
Peruvian copper;
New York, Jan. 6. Stocks managed to register a small gain despite several opposition in the first week of 1957.
Railroad shares, long behind the market, and
utilities, strong for their investment qualities, featured.
According and rising wages was viewed for dy by Forber Magazine; by some observers as in effect
most railroads, expenditures no sting gains."
Vast contradictions in the "have
produced objectives of the US, govern Using as ment. yardstick the operating ratio in order to evaluate the effective- The Guaranly Trust Company ness of capital expenditures in of New York, for example, Onde boosting
operating efficiency, that "where govemment is many railroads found them- asked to be all things to all selves on a virtual treadmill.
men,"
monetary
authorities
With industriels it was an The Pennsylvania Railroad, sometimes
The zig-zag movements of one of
face
"painful in-again-again market. They prices reflected uncertainties of America's gaints, spent choice."
rose in the Monday session, traders In the immediate future some US$4,053,955,133 in 1961-
last of 1986, fell on Wednesday of the market. The 65 and was able to decrease its "If they make enough money after the holiday, scored a rally had been
experts operating ratio
predicting there first avaliable to accomodate business on Thursday, and pod on would be over the nine
of 1950 to 82.10 at the higher price levels, they Friday after grossing the 500-
long period of high per cent from 68.0 per cent in are acquiescing in inflation,
selectivity in the list-even 1951.
I lovel
more so than in 1956. they do not, they are acquiesc- Ing in unemployment,
months
The
of
objectives stable money and full employment are irreconcilable unless wage in creases are limited to gains in
moderate resumption of buying Beyond
cases the ratio advanced. productivity."
for inventory replenishment will found capital outlays appear bring a swift increase in prices.
cn
to
the
countering in- and
Money Supply
by
ឥ
That 600-level has proved too much for the industrials for long time now. Each time the average is into that territory. it moois resistance. And this past week was no exception even though it appeared for a time as if the obstacle 'would be hurdled.
of
These experts looked for n poor showing for the 1st in the Arst half of 1957 when they and tests would be made the 1956 lows around the 400 level in the industrials.
Meantime
Not So Fortunate
apparel and piece goods at re- however, Forbes found, in some Others were not so fortunale, tall. They believed that even a per cent before the plants closed
Д certain point, it for the year-end holidays.
business entered Industriais, however, notted p the New Year on have produced diminish-
a spurt of Duration
small gain for the week. They activity destined, according to of the curtailment Gray good producers, airtady returns,
although in programme, officials sald, will operating
It cautions that adopt for a week before: rails 156.42 time record in gross national
or closed at 498.22 up 1.81 points slender
initial stages of dieselisation, creeping inflation'
the experts to set a new all- profit profits improved. The industry money, depend on market conditions and margins, have been forced Japanese Imports. Officials said absorts the higher labour ecsis therefore, as one solution to is "specially dangerous at this and 05 stocks 174.00 up 1.45.
managery their mills have felt Japanese incurred by the wage increation, is looking more
would be up 2.86; ulice 69.07 up 0.04 product for the year. However, difficulties In
there was On Monday, the last cession pinched in profit-margins, dim the prospect of Important competition most granted mill, workers last fall.
time, whan more thrift, and keenly."
Producers operating on scanty more to mergers, America's 151 savings are needed to supple of 1950, industrials cloud at prospects for tax cuts, and profil-margins
ins strongly in railroads will have
been ment government effects to pre- 499.47 up 3.06 polots on the day some fears of legislation de
the signed to curb Instalment buy- cated a determination to curtail whittled down to some 24 huge arve monetary stability, and to and up 11.07 points from
offact Inflation.
close of rather than cat prices any more, combines In order to do away
closed that ing. day, at 109ERETA and off Observers
or "nake goods just to store will inefcient operations
bo 10.00vely, "Unleas ond
saving can
UIENES Steels, Looking at the them away In the stock 100m." chiplication of facilities, brighter sido of the "picture"
| stimulatech, inflationary press clowed t up 0.21 and up issues and special made the
tres may over maintained the market looks lo
'period of 4,38. The 65 mocks in the best showing. Gains of 5 points Sales yarn spinners reported a The current cost-price squeezo years, becomin even stronger three averages Balticed the day or more appeared In American be on the average” of a new slow situation as the maket still on U. 9. Industry had now than it le now, A buying movement, with possi- operating
systematic under holiday in-demanis for
Amerado, Inter blow that it will take shape in
reforms, swelling of the money apply in of 174.08.158 0.95 from fie pre Telephone,
national - Silver, and Now York about two weeks. They nendoned movad et a alightly boiler pace, i per cent upper limit is too high) readjuntemente
from the 1955 clos that quite a dous proy
only Troll on Monding swelled to 1 to 3., Motors google but combod and carded - yors and unrealistic. They have sito intensity macka pressure-ffold 3,080,000 shares, largent for any steels closed the week lower on ensed, Bomo buyers, only partially covered were slow-United Prom. toon sooking à out in the 83 par } Promo..
Friday realiaing United Pread..
On Average....
tax
1954.
is
Five weeks
Iron ore, manganese was selling their
everybody British Gov- in Amapa, Brazil (soon erament stocks and the Index to reach production and market- closed November 30 at 82.38, the ing stage) and the Trinidad oll lowest it has ever been since it Industry
was first constructed in 1826; it Interest in central American closed this past week at 85,51- petroleum and mineral poten Unlied Press.
As approved by the
Postmaster General. Hong Kong AIR MAIL ENVELOPES
Brain Mall
on sale at
20
ulis, hipbuilding South China Morning Post Ltd.
fluences, Some marcerised yarns | Businessmen. Insist that: thic· D1 } un éffort to peøyent. temporary Vous close and up: 1.86 Deine Farbbüliding. Muny others rose
would
Job Printing Department
Telephone: 20002