THE CHINA MAIL, TUESDAY, FEBRUARY 12, 1957.
TRADE
and
COMMERCE SECTION
Page
Bank Rate Has No Mystic WALL STREET London Stocks
Powers HONGKONG
DOES NOT ACT AS MONETARY TRAFFIC SIGNAL
From RONALD BOXALL
London, Feb. 11.
outcome
of the
An unexpected monetary policy introduced or rather reintroduced after years of disuse--by Mr Butler in 1951 is almost a mystic belief in the efficacy of the bank rate instrument for altering the course of the economy.
No doubt thin been planted
as an
STOCK EXCHANGE
(From Our Correspondent)
Busineg
New York Cotton Futures
Big Drop
Show
New York, Feb. 11. Cotton futures today plunged a little more
MEETS NEW LOSSES
New York, Feb. 11.
Move
Lower
London, Feb. 11. The London Stock Market The stock market was well below the pre-moved into lower ground vious support levels today with losses ranging to in quiet dealings today as more than 5 points and values sacked more than most traders 3 billion.
All sections were down and Bocony Mobila...
South Puerto Rico Sugar Trading picked
sharply. Bouthern National Das up Tickers were several minutes Bouthern Raliway (Com.)
Steep, Nock (Terantonx,1
Stordard Brands Metals, aircrafts, shipbuilding Lancs, lls and special Lsqucs bore the brunt of the decline.
done un the Hong than $3 a bale, the widest drop for any session in late at the close.
book Stock Exchunge this morning amounted Se op-
$520,000. !proximately
Noun quotations ah Sho inorning's transactions.
Share Biser Nettera Zaten
BANKA
Bent Asia INSURANCES
SHIPPING
1040 234
932
4 30
1500 or
750.0
130
almost a year,
Broadscale liquidation, with spot for selling and hedge pres- sure accumulated over the week- ved comcident with the Govern- ment announcement of a lower price support basis for the 1957
་
erop.
Threatened restumption of the dock workers strike tomorrow,
possibility 175 with
of increased 079 hedge selling against any export
held up
the ports,
100 60 101
་་་un
50445,75 | helped keep prices on the defen-
Calve.
19.
F Worl
ጉዟ .
34.
di
131 13
20% 45,73 279 133
LAND, ROC
# Botel
fven
Lora
B
15,10 15.30
(:2
14
nie. Exchequer's Fed Maymun's torced As The Economisi mind by the enthusiastle Gurke: the change was made RimER pourings of the protagonists of fat dah stage "almost certainly
orthodox monetary polles, The unwillingly."
result is that a kid of damu i
—or at least a sense of some
thing significant Sappening
This much is clear troas
in pains the Chancellor took
the marvellous world of high make plain that the redir Anance all the more intriguington should not be regarded because it is not properly under "green light," stood-attaches
the rate.
to changes in
Attempts to popularise the theory of monetary control in which interest rates play a key part have characterised the bank rate as Traffic
Q
signal. When it goes up the
Govern- ment is said to have shown the
red light", meaning must all be prepated for a bout of austerity. Similarity, when
we
It would wrong, said Mr Thorneyeret
to interpret as a change in
This is not ecomic policy.
www
LULITIE
Vaurnaly
Light
E
Ent
1000 15.20
2004 12
New crop months showed the widest losier, Bearish sentiment increased with the Department 16 61% of Agriculture notice
of n rut of 1.10 cents pound in the sup- port rate for next season.
ENZOA371, 530 NY LAA
I
223,24 230
102 19, 2290 240
31 31 EL 01
TOP No an
ANG PADA 2440
INDUSTRUALS
... 301 0176 1200
a signal for bankers or others controlling The sources it cement finance to relax credit or other 1 Buge restrictions on lending." cell.
Move Welcomed
-
: Wat:111
COTIONS
Valen
Nony.ng
10 123.30 1000 104
1000 23 3500 - 314
200 g 25.40 200 20 40 DO 20.40
2002330 DOU 6 24.30 117224,40
10 70 150 2000 18.20
0122.00
The crop will be supported al 77 per cent of parity compared with 82.5 per cent now in effect. Department officials salg the reduction would mean a drop in The support price of about $5 at bale. The inninum interim Joan rate for middling inch cotton will be 28.10 cents pound compared with the 1956 Late of 20.34 cents a pound.
Memphis
น
5
WORLD
RUBBER MARKETS
New York, Feb. 11. The rex contract today clused points higher to 12 points lower with sales of 40 contracts.
30.69
March MAY. July
September November January March..
3025
20,23
20 BA
29.49
20.30 28.00
Standard contract today closed & poluts higher to 12 points
lower with no antes reported.
March
May
July
September
November
January
March
30.65
***
22 BA
20,00
20.40
29.20
20,00
There was nothing in the Ini- mediate news to account the decline. News such as;
1. Fullure of the market to meet support at the
400 level it
where Sessions
standard Oil of Cal
Standard Oll of Did. Standard Oli or NJ. Sterling Drug Co. Stokely-Van Camp. Studebaker-Packard Corp. Switt & Co.
49 3714
40
awaited the publication of January provisional trade figures,
These were not released until Ja after the close when many 18% sources described them as 384XL
"dismaying."
82
Trading in British Govern- menity
WAS
light with most
LHUCK closing around their
opening levels.
Blue chip industrials showed
improvement in Bomo
issues
the ma-
but wound up with jority down three to six pence, BANK EASED
20
1814
98
Texas Co
હા
Tide Water As, Oil
Twenty. Century Fox Plan
was
helped ve
Union Carbide.
Union Parlie Wallway
the past week;
United Aircraf
70%
UB. Fall "E
54
UB. Cyperun
401
234
124
three pence
40
2. Buildup of adverse items;
3. Investigations and threato of investigations:
cicfia- be highly
u, S. Line Co.
US. Rubber
U.S. Blest
4. Moves to cut the budget.B. Emelting which would tionary:
5. Ravages or tight money and competitions of stocks;
0. The Middle East situation which brings uncertainties doily. Numerous Losses
It was the widest break in the Industrials since October 10, 1055, the day a medical report said President Eisenhower was still not 100 per cent out of danger from his heart attack of late Scptember.
Losses of 5 5 points or more were numerous, Industrials lost 8.85 points OT 1.90
Rilis lost 3.34 per
per cent. cout
and
Atlanta trade reports noted a continued słow demand for spot cotton in the past
Rubber futures today tumed utilities 1.28 per cent. week.
A total of 1,201 issues appear- Irregular after a steady opening, complained of Mis sald inventories.
but overall activity was on the jet on the tape. Of these 910 reported another quiet slow side and appeared to be declined, 131 advanced and 164
the held unchanged. week with
mortly evening up before very little milf in-
Volume for the session total- terest Many mills wanted to
hollday tomorrow. Factory in- buy 1950 growth to mix with ferest in the spot market was led 2,740,000 shares,
New York Stock bond volume almost reported their stocks of 1958 growth,
non-existent.
was $5,280,000, certificated
de while eastern shipment offerings stock
also clined 74 to 2,852 bales.
чисте on the light side. Closing on a reaction the HatLocally, Spot No. 1 Ras was
1. Craw
13, 1300 26.30
1200 13.0
Targe
4.00
A 23
AGM
MISCELLANEOUS
Later
17.00
a
we
Nevertheless the been welcomed in financial circles where high interest rater
move
has
Vine INVESTMENTS Yonglaze
10.10
0
10
500 G &
ovr
are unpopular breause they
it has gone down it has been taken as the "green light", signal that all is well and
can go ahead and spend money.
are
Beliefs Wrong
Needless to say both beliefs wrong. But that they are held is reflected popuarly
in the fact that each change in the bank rute is announced in to the news- bold headlines paper reading public as n
Last rale
The
although the interest als But New York Sugarbering prices were goed nominnily 30% cents
rates that
the
не
are tied traditionally bank rite the charge for bank overdrafte
and the rates pay able on deposi; necounts-ente down in response to the duetion, it does not mean that lj is going to be
In closed today 20 easter borrow money—whether it higher for the hire purchase of
Facts, motor eur or fur
publie or
Worki
SINGAPORE
The market opened higher on better Open interest
overseas advice but i cased because Jacking of interest,
Opening
pound.
Market
of 18
02 to Orleans clused polals.
points off 14
New to 64
4
New York, Feb, 11 No.
Munth
Mar
Volume 17.600
138,700
sugar futures
Mas
10.200
285,000
to 20 points July with sales of 742 con-
10,700
140,700
0,900
100,000
De
3,300
118.300
Mar
3,700
43,000
May
2.800
331100
Indeed, it is believed in some quarters that the reduction in
Domestle No. 6 sugar futures closed uncharged to 3 pointa higher with sales fracts,
July
13000
17,800
Total
00,100
1,034,100 bales
+
of four com
NEW YORK
Spot rubber unbaletl Blanket crepe
prise" or even a "shooter- | private business purposes.
**
week's change when the was cut from 614 cent to 5 per rent Was
i
covering and R The bank rule at a time when Tre-holiday no exception-in spite of the the Chancellor still considers speculative trade demand Im- fact that the glit-edged market,
to "restrain
both parted a note of strength in he necessary
u less delive which is the most immediately public and private spending in world contract in affected by the change, has order to make room
market. The market will remain for exports been actively anticipating it and essential investment" closed tomorrow for observance
since the beginning of the year,
The foregoing ders not mean газе that changes the bank are unimportant. They art-23 the reaction in Bannelni circles testifies. But they are impo- tant for reasons other than those attributed to them by the lny public.
The bank rate is the rate of Interest charged by the Bank
of England to rediscount short term money bills. The finance houses who deal in these blils are anxious not to leave them- selves so short of
funds overlending
that they forced into the bank" have to borrow against term bills at the bank
higher rate of which is
l
terest than those
them,
that
ulto
might mean that the Govern- of Lincoln's birthday. ment will have to rely, more on
the other means of curbing the
demand for money-by physical | March controls at its source,
The Truth
Septracher
Future closings were:
No. 1 rubber per lb. Mar. 0811-0044
Apr. 87-88 No. 2 rubber per íb Mar, 051-80 Nu.
8315-04 No
811-8214 184-BUT 75477
Prices of futures closed today No. 1 pale repa Bs follows: Spot March
May
July
October
December
33.30
35.00-17
35 08-13
LONDON
The market was quietly steady with spot quoted at 26-3/16 pence. Prices:
2003-20132
2015-201
34.3-50
32.00
22.83
12,61
72.00
No. 1 Ras spot
33.20-27
Mar.
Apr/Jum
23-20
July/Sept.
Oct./Dec.
2516-25%
34.00 07 35.00-00
Feb MAY. Apr. Eftale crepe thin "Mar.
23-201
24-2322
2512-2014
thick
urki noted
NEW ORLEANS
Prices of futures closed today
March
Contract No. 4 (world)
May July
5.79-69
必ずロで
0.74-75
July
Mareks May July Spot-trents per lb. fob Cuba) 3.07 Open interest: 7,190 contracik.
8.7-2-26
3.54-75
4.75
as follows:
4.73
Spat
4.70
March
May
July
October
matter is
Contract No. 6 (domestic)
December
5,601
March May
3 02
July
0,741
ther Navnet
LIVERPOOL
3,77
The truth of the that whatever the improvement there was in general the health March of the British economy up to My the time of the Suez crisis the
final consequences of
episode have not yet been felt Sporents per 1. elf NY
Futures
in closings, per ib. were as follows: Old contract
32.43
32.70
22 07
General markets, cif 'basis, ports:
AMSTERDAM
The market was very, quiet. Prices closed today in guilders per kilogram, elf Mar, as (lows:
its
that
pence No. 1 rubber
by
are
and
short
or even accurately gauge. And that is the factor that will be Open interest: 1590 contracts.
Chancellor's uppermost in the
No. 2 rubber
Mar/Apr.
20.05
No. 3 rubber
-Unted Preta.
May/June
No. 1 crepe
rate
mind as he gets down to the
July/Aug.
Oct/Nov.
25.43 25.00
in job of pinnning next month's
budget.London Express
Dec/Jan.
24.04
Ser-
NEW YORK METAL New contract
Mar/Apr.
May/June...
FUTURES
July/Aug Oct/Nov.
20.35 20.05 25.65
23.20
Dec./Jan.
25.05
€0.00
they have charged vice.
borrowed from The Fate of interest Anance
houses
Will charge for a short term loan nowadays mainly to the dov ernment against bills,
Is
not too
necessarily below... far below-the
therefore
but
bank rate.
2
Anticipation
When the Clly judges that
the time is ripe for a fall โถ
Lincoln's Birthday
New York, Feb. 11. Major securities and commo- dity exchanges in the US wil Operate ሲዊ usual tomorrow. Lincoln's birthday, no longer
It will be a holiday
only
the bank rate they will try to celebrated as a holiday in Wall anticipate it, And they can do Street. this by bidding up the price of glt-edged securities thus bring ing down the effective rate of intercat on them or offering short term loans to the 'Gov- 10minut nt lower
interest
Both these things have been happening recently. The Finan cial Times Index of government Bocority (glit-edged) prices had rison steadily from 82.30 at the end of last November to 89.50 at the end of the week before
the bank rate reduction. And
the Treasury bil rate
fallon
had
↓
Futures
unquoted.
closings were all
Egyptian Kamak Jan/Feb. New York, Feb, 11. Prices of metal futures closed
SAO PAULO today as follows:
Lead Feb.
Ma Zinc Feb
Bl Copper Feb,
15.430,
19.04h
13,300
1,0 29,001 รองเท
was
London
fol-
2.85 nord. 2.53 BURN.
2.40 DUTE. 2.78 nom.
United Press.
Foreign
Exchange
London, Feb. 11.
Closing rates were: In the US the average spot New York price was not available. Total Montreal saics
these at
markets
Amsterdam Brussels 80.07b (standard) | 23,509 bales-United Press,
Copenhagen Frankfurt Matlam Paris Blockholm Zurich
Tu
agar. Frb.
Mar
on en
Feb Mnt.
998715 (tr=11) 20.00b
- United Press,
LONDON METAL
PRICES
for the banks, markets such as
London, Feb. 11. rubber, hides, tin, lead, zinc, Prices of metals closed today burlap, cocoa, coffee and sugar in sterling por long ton as and the N.Y. Preduce exchange, follows: -United Press.
Singapore Stock Market
Singapors, Feb. 12. Brokers today quoted following stock prices:
2.79-13/10-2.701 2.08-2.66-1/10 10.07-10.67 140.00-140.00 19.754-10.3 11.7046-11.75% 1701-170116 0903-037 14.50-145015 12.2734-12.30) -United Press,
New York Foreign
Exchange
the
Dayers Sellera
Balu Lintang
Ltd.
Flubbor Co.
Tin spol
704
762
3-morith
750
7521.
British Borneo Petroleum
Syndicate
Opening
$1.82
01/-
Cepper spot a-thonth
244%
244
245 Contvlidated Tin Smelters 24174 Ord
New York, Feb, 11. Closing rates were:
Canada
31/41/2 England (0-day futures) 27019
Feb.
112
112
Frater & Neave Lid Ord. ..
11EP
114
Fraser & Neave 714% cum,
鏡
$4.00
Australia Switzerland Argentina
1.04-13/32 2002/10
2322 J0280 United Press,
N.Y, COTTONSEED Lead staf Mov
OIL PRICES
Prices tream nearly 3-1/10th futures
New York, Feb. 11.
of cottonseed oil closed today in centa
por cont early last December to per lb. as follows:
Under 4-9/10th per cent. . So | March
much for the "surprise" when May
the
Juts
Zine ist half Feb.
May
-United Prost
Exchange Rates
LICK
Gammons Malaya) Limited $200
Hongkong Bhaghai
Banking Corp.
Hongkong Tin Ltd.
Coropas Ltd:
Lada Rubber Kalates Ltd. 00 Malayan Breweries...
New Berandah. Rubber Co.
id.
Peking Tin Ltd.
Business was done in the local famen Hotel unofficial emchange market thi Singapore. Cold Storage morning at the following rates:m
change
was eventually
Sept.
16.30 18.05
16.70
10.01-15.09
US. dollar (pær. 81)
made.
Oct.
13.00-49
Stering notes, (per 43)
Dec.
Australian novel iper 1)
In fact what has happence Jen.
that the Chanellor of
15.200
10.20
tho
ibed Press.
Indonesian rupiah (per 100) .. #lam toal (pre 100)
Bij Brtists · Ewurance 4.1) 11.
10.18 Straits Tradin
1080 | Brašta Biesmallp
united Engineers Ordi 25.10. Wakiso. Deco,
$1.60
CHICAGO LARD FUTURES
Chicago, Feb. '14% Prices of Lára futures clornă. today in cents per lb. as follows:
Marda
Buy Sept
American Stock
Exchange
volume was 800,000 shares.
Dow-Jones closing averages
were:
30 industrinis
20 rails
15 ies
63 stocks
40 bonuk
Comm. Adure price Index
Closing Prices
Alden Inc. Acy.
Allied Chemicals
Allled Mills Inc.
Allis Chalmers
American Airline
American Cable & Radio Corp. American Cyanamide Co. Amer. & Forgn. Power Am. Mach. & Fury American Metal
American Sheung Am. Sugar Ret.
American Tel. & Tel. American Tob. "B" Anaconda Copper Armou Beel Armour
Atlas Com, Mining Baldwin-Lima-Hem. Baltimore & Ohlo
Bendix Aviation Corp. Benquot Cons
Boltlehem Steel
Boeing Alplane
Borden (The) Co
Burroughs Add Machine
Canadian Predste R.
Case (2. L.) Co.
Cat. Tractor
Celanese Corp.
C. I. T. Finnnetal Corp. Chrysler Motors Climax Molybdenum
Colgate-Palmolive Co. Commonwealth Eler. Commercial Credit Consolidated Edison Continental Oil of Del. Crane Co
Crown Zellerbach Cuban Amer, Sugor Diamond Alkali
Dow Chemicals..... Dupont de Nemours Eastman Kodak
El Papo National Clas Eric Railroad Family Financa Corp. Ford Motor
General Electric
General Foods General Motor Gen. Pub. Uni. Glidden Co.
Goodrich (B. F.) Co, Goodyear Tir Gur Oil..... Heyden Chemical Homstake Mining Co. | Tigersoll-Rand
· Inland Steel Co. Interchamiest Corp. In Business Machines Int'l Harvester International Nicke International Paper Int'l Tel & Tal John-Manville Co, Kansas C. Power & Ligh Kennecott Copper Liggott Mayor Tob. Co. Lockheed Aircraft Loews Incorp. Lone Star Cement Co. Lowenstein & Sona, Korabi Iron COD, Mimesota Mining Mission Development Monsanto Chemical Co. Sfontgomery Ward Motorola Inc.
National Cash Ret. "A" National Dairy Prod. National, Leat Nations: Steel Corp. New York Central Olin Mathiason Otis Elevators..... Owen-linols Gires Pacific Gas & c. Pan American Airways Paramount Pictures Parke Davis Co.
•Penny J, CC Penn Salt Co. Php Morria”. Procter & Gamble, Co. Pittsbundi Piate Glam, Publieker Inmurleson Pure all
Hadio Corporation Tapable
Tynokia Matki. TR-10 shell Oi
Saint Reg. Pa
Warner Bros.
Westinghoum
Electric
West Va. Pulp & Paper Woolworth
Bank of London and Scuth America coscu one shilling
three
to pence
profit-taking.
131 shillings
us a
result of
Olls yielded 1
43% and 2 shillings but chain stores United Press.
NAMESAKES
I managed to cling to carly gains
ranging from 5 to
pence.
Sucz Canal appeared only once on the tape-unchanged at 51 sterling. Germans showed
Answers;--1 Figaro, 2 Italy, some activity. Dawes and
3 Tenor, 4 Arla, 8 Composer, Young Score, 7 Shaves, B Seville,
Loon
non-assented dropped sterling and the Notes, 10 Opera, 11 Barber. 13 agented issue lost 1 sterling. Orchestral, 19 Senle, Singe, Tolcyo 01/2
Jumped percents 15 Magple, 18 Singer, 17 Cur- | ahend, 1 sterling in an otherwise taing,
colcurless Japanese market, Gioacchino Rossini (the com- Dollar stocks ware generally
lower.—United Press,
poser).
P.OB.I
E&A
COMPANIES
PENINSULAR & ORIENTAL S.N, CO.
PASSENGER/FREIGHT SERVICE
Outwarda "CANTON" "CORFU” "CHUBAN" "CANTON"
Leaver Lozdon
Salled
19th FebruLTY
4th Apri
21st Apri
Due Hongkong 22nd February
30th March
8th MAY
1st June
Singapore.
Via Southampton, Colombo, Pinang *
Homewards
“CHUBAN"
"CANTON" "CORFU" "CHUSAN"
*SUNDA"
Leaves Hongkong Dua London
18th February
10th February
3rd Apri
12th Max
21st March
8th April
12th May
12th Jung
Via Singapors, Fening & Colombo.
FREICHT SERVICE
Loads 13th Feb.
"SALSETTE" dne 12th Feb.
“BOUDAN”
dus Eod. Mar,
"SALSETTE" seada 8th Mar,
"SINGAPORE"das 11th Mar. "BALLARAT’đu= 17th Mac,
for Singapore, P. Swet. tenbain, Havre, London, Rotterdam,
Hamburg.
Antwerp
mouth
from UK.
from UK.
Gringe
For Singapore, F. Bwet- tenham, Penang top don Hamburg. Etotter
dain & Antwerp from UK.
from UK
ALL VESSELS OUTWARDE AND HOMEWARDS WILL FROCKED BY THE CAPE or `GOOD HOPE UNTIL FURTHER NOTICE.
BRITISH INDIA S.N. CO., LTD.
1886 — A HUNDRED YEARS OF SERVICE — ING
Érom Calculta, Bangoon "BANGOLA” dus 25th Feb,
Salla fol, Feb. 5th Mar. mais oth Mar.
"FULTALA” due
"SANGOLA” das 10th Mar. all 1715 Mar.
de Straits
for Japan
from Japan.
för singapore, Itangoon, Chiltaboo Visakhapat Tan de Kalcitada
from Japas
for Singapore: Penang, Banzoon és Calcutta
P. & 0./B. L.. JOINT SERVICE
"ITAURA” in Port
"URLANA”
“UMARIA”
safir 19th Fak.
due 19th Feb. all in Feb.
dae Bird Teb. salls 25th Feb.
"ITOLA"
due 4th Mar, KALLA 3121 Mar.
from Japan
for Bingapore. Hambay, Karachi, Basrah, Khor ramshahr de Kuwait Szum JapaUS. for Bingapore, Cochin, Bombay Karachi, Big rah & Kuwait from JapaA
for Bingapore, Bombay, Karachi, Khubei, Kuwait, :. Khorramshahr & Harrah from Bombay & Karashi ' Ius Jupan
EASTERN & AUSTRALIAN S.S. CO., LTD.
"NELLORE" In 'Port "NELLORE" loads th Mar.
from Australia for Bandakan, Rabeul,
·Brúbane, Sydney, Mol bourne à Kannada
All vessels havi, Ulberty to call ka kay portà an or off the route & the route ja piling nei subject to charge or amendment will or without, höttos,
For full particulars apply to: MACKINNON, MACKENZIE & CO. OF HONG KONG LTD. Telephone Nos: 27721-4.
: