THE CHINA MAIL, MONDAY, FEBRUARY 18, 1957.
TRADE and COMMERCE SECTION
Caution Shown By American HONGKONG
Businessmen
SIGNS OF WEAKNESS IN
THE ECONOMY
By JOHN MORKA
New York, Feb. 17. American businessmen fretted about bust-or-boom last More week despite a generally strong economic pattern. cautious than in months, they worried about many things.
Signs of weaknesses were becoming more evident; jobs harder to find and layoffs are more frequent in other industries. Production "cutbacks are in the news more often these days. no end to the The cost of living continues to rise, with wage-price spiral which government experts single out as the No. 1 threat to the country's economic well-being.
CIT Wie
1 layoffs and productnaa backs.
General Electru
last
week
furiougl for
days
Company
10
US Will Hold
Trade Talks
With 20 Nations
Washington, Feb. 17.
The United States will hold unprecedented consullations with about 20 nations this year re- Harding the possibility that they may beralise restrictions
dollar Imports, the State their Department announced.
U11
In June, talks will be held with Sweden, Denmark, Italy. Netherlands, Norway. Greece, Austria, Germany und France, officials said.
the
In October, Turicey, Finland,
Brazil, Australia, South Africa, Japan, the United Kingdom,
Ceylon. Paklatan, New Zealand and the Federation of Rhodesia will નમ COR-
and Nyasaland, #allcl
Government officials said the
nut force United States would the issue if the countries con-
that they cerned demonstrate would have great difficulty clothingbernisation
Imtions
Offeials said these espectally acute to
In
Freight loadings
Top-heavy Agure of 1.74 in early [to othe hund were only 3 per Sales of
apph 1961 to 1.51 in enid-1958. Itent ugly than the correspon- television sets.
And up to 1,58 ances and textiles
at year-end fug perint a your carlier. are meeting edged
with | 1956
the men's While no particular level les doses in buyer resistance, bringinat
can be pinpointed us a signal, instry, actually the fourth Since 1953, many European
Cleveland gest tres voluntaiked kordkig K
the
have progressively Trust Company, "past experience
af proth margins liberalised their imports Derience dependently
from It will be the it will agents the patio should be at vine or two per cent at retall, | the dollar area. working watched closely when it crussallad manufacturing levels. nim of the coming talks to see
The Clark Requirement Co. Im-whit inst Thus the aten about 1.80 on the up- A week fron
more can be done about of Thou- Į safe." The question day some 2,500 worker.
theproved sales by 1 per cent but removing restrictions. sands
consulta of hers have already † ventories IN
arms were of 1 per cent in werksbservers
And hud week, Ameri- been tak off in recem
who recall that the 1.6
upon at the ons were decided and many more are expected
buildup of over
cun Paper and Pulp Association last GATT meeting and are un- 000,000
Day 1. Curs
carty 1058 President j21 get their furlough notices. Main
Luke Jr.
Similar precedented in scope. ion of
cul- rumplined that paper producers discussions have been held on u Verson: A heavy nccumulation
pronounced inventories. Cotton pud synthe-
མན
In the industry. It was profits are being squeezed by more limited scale, they said.--
these klich
Inventories higher costs, Some companies, United Press. tle producers have been worried only
would show lower Aeir worked off toward yea.accordingly. slumping demand the last
One major manu→ erid Thai betivity picked upi.
carnings for the first quarter.-- Iwo TWO months.
tuted Press Mulken & Deer.in facturer
operations Co. reduced #s from a six-day to a five-day operation. Another-Bates Mfg. that jt will Co-announced close its malt piunt as of Apell 1, affecting sonic 350 employees. Headache
Over
So far
appears
compted
A Jolt
The stock market gave traders The Bank Of England
cost-
zenewhat of a jolt last week. Prices on Monday through their so-called support levels DI U selling
*Traders wave. ridener hit a new low ebb 11
monkis fifteen
the Dow- de- industrial дустане Jones
08
Statement
London, Feb, 17. The Bank of England state- The biggest headache to be the wage price clined for the day by 8.85 points, ent for the week ended Feb.
widest break since the Elsen-13, reads as follows: Stul
higher. edging
October, 1955, leading howar warnings
drop of government lielais
spiral.
Despite
country
ressions.
Notes in circulation Public depil Privire deposits Government srgurtiles
Other securites
that the when I fell 13,27 points. The some resistance for market showed heading Was economic catastrophe unless on Tuesday andi spurted strong- Inbour wad management show-
owly last Wednesday, recuuping ed restraint in holding the price about 24 billions in valuations, Hecripts hee. Right now wages are about abost half of the losses of the Flatio X por
cool higher thou a age, and the end is nowhere in Prices of just
about sight. everything else are expected to move upward, neeling further to the inflationary pressures, faticosaiy
Fears
threat of possible controls
on wiges
unless management
discipline. showed
In
two previous
At the the Dow- close on Wednesday Jones industrial average gained 132. It was still off 58.81 polits from its al-time high on April 6, 1958. 11 was down 37.33 points Trom the level at which it closed
cent 1950.
and prices
Bui
1X
Wall Streeters emphasise that with 70 per cenil margins there are wo credit excesses in this market It concedes that the market is reflecting many of the Some think the might await spring and summer negative aspects of the economy
week, financial circles general- ly discounted Whis posubllity
government
money.
छ
denation,
dividend
the
cuts.
-Light developments before taking any Middle East, pinched profits and decisive action, it at all,
Further, there's to assurance uspets either that the Congress would Many point out that US industry prospects are much better than even countenance such ermumie
the market and that a depression clamps. It now appears that for the imme
isn't in sight. The general be- least, the being at
his Het of the experts was that the President
conne
oversold and efforts toward convincing labour market has been
on 1 may well anci
bolster that from here
Te more vaslly than it decline.
Management 353 government anti-infaiteunry
efforts by behind-the-scenes Many look for the first quarter manipulations. But many experts eamings reports to put further aren't too optimistic about this pressure on market price. Con- approach
sensus is that many top com-
An indication of things come on the price front:
panies will show narrow prof nargles despite possible higher Steel prices last week mimescles volumes. This could mean items were pegged an average of reduced dividends and that's 3% per et higher despite re- what investors are most anxious duced demand. On other items, the increase ranged to four per cent.
high
Watched Closely
aboul,
Profit Margin
According to tabulations by
The
Daily
The Bank Of France
The
Statement
Paris, Feb. 17.
France &ale- Bank of
NEW YORK COTTON MARKET REVIEW
By WILLIAM T. PLUNKETT
STOCK EXCHANGE
(From Our Correspondent) | Business done on the Hong- kong Stock Exchange this morning amounted to ap- proximately $070,000. Noon
WALL STREET MAKES
A
COMEBACK
By ELMER WALZER
New York, Feb. 17.
The stock market plunged to new lows since 1955 during the past week on a series quotations the morning's of adverse factors and rallied practically all the way back when these fears were
transactions:
UK Bank
Lombard
New York, Feb. 17.
futures started Cotton the week on lower ground Untun and remained on the de- SHIPPING Wheelocks fonsive for the rest of the period.
At Friday's close the list ruled two to
puints-10 30 cents to $1.85 bile-lower
A than the progeding week, with deliveries showing crop the widest Josses,
13 W
whye
'Tho unexpectedly government Support basis for the 1057 crbp, announced over the weekend, touched oIT 31 of liquidation and stop loss selling on Monday, driving the maiteel
bale down $3 a before the pressure levelled off.
The
Buyers Sellers Rate=
1000 1040 31425 deflected.
20 $47
100 38
Bhares BANKS
INSURANCES
142!
道路
6.75 0,80
330 6 0.00
050 0.00
1400 W 0.00
DOCKS, ETC. K. Wharf
201
103
100 102
100 100
malty
Trust
Fram
10 א גאוז
There were three outstanding sessions. On Monday, industrials broke 8.85 points, most since Dec. 10, 1955 and rails fell 4.82 points, most since Sept. 26, 1955.
Dixle Cup
Business
On Wednesday the 732 point | Continental Oll 6:
International Industrial average recovery was 10%) the widest since Dec, 3, 1956. | Machines 9; Lukens Steel 8%; and Virginian Rallway 44. Tho Industrials spurted another 0.51 points on Friday.
last was helped by n two and a half Pro
followed 34
Other averages similar iron but didn't keep
Industrials. pace with
1.01
Rails
Unished the wook at 142,00 of points and utilities 09.80 of 1.27 000 103 23.10 23.30 2100 » 23.10
230 ↔ 21,20 2571 or 31%
200
100%
Dock
1014
462%
100 401
LAND, ETC.
Hotel
18.00
HK Land
04 041
500+ $4 110004
1.40 1.423
low
RUBBER
Amalk. XD
1.473 1.00 1000 1.50
1,025
UTILITIES
231 100
231
Star Ferry
142
143 100 143
Youmeti
107
100
C. Light
interim loan rate, Bxed ui 77 per cent of parity, ligured out to 28.15 cents a pound for
siding inch cotton.
and and 41,00 cents between 31.55
prind for middling me-Inch colton. New crop months were selling about 12 to 14 cents a tentative loan pound over the Linsa.
Electric Macna E Teleptione
3 3
0.20
(0)
25 ло
20
1262 « 25.10
100 L 25,80
(N)
2
24.00 23,20
263 143 24.0 500 or 24
250 24 PU
INDUSTRIALS Cemen
38 081 12,00
REGAINED
crop the
Hope Amoy Con 32 STORES, ETC. Dairy
Watsun
20.70
10.90 10 3000 15,00 24.20 14.40 1300 g 14,40 1500 14.30
COTTONS
MISCELLANEOUS
Nanyang
2.43
Viro
INVESTMENTS
10
6,10
Alker at impact of liquida-Yangtzte
was spent, new months regained wart of Fast ground for several reasons: 1. Posiblities that the interim rule may be raised later after
complex study
D
nces
of
the
100 5.00 1000
New York
cutlook is completed; Cotton Goods
that the mid-July mont for the week ended which the final loan
7, reads as follows:
Total gold holdings Total
ollier rencies Sight balance abroad
In EPU
cur-
Advance to Stabilisa-
tion Finn
tranc rate will be figured, may be 301,204,302,420 higher as
résult
in forces apparent Falionory 02,300,000,000
3. the national economy, 32.071,000,869 Possiblities that the lower loan
divert will
greater 33,DU,000,000 rate 1.817,673,357,313 nereage Into
programme. 3,031,540,571.735
of in-
the
163,540,759,000 -United Press.
of
sterling 1,503,091,652 10,880,313
Total bills discounted 207,093,598 210,001,629 inkontes in circula-
49,074,057 tion 63,256,190 Current necounts and 20,7
deposit
United Press.
bunk neres.
On
the
Market
RS
more
points. The General
| average lost only 0.53 point,
The Tuesday low were the lowest since Oct. 18, 1955, for industrials. Since Jan. 18, 1953 for rails and since Jan. 21, 1057 for utilities.
Active Week
Trading for the week was the most petive since the short week of Jan. 4 on a daily aver age basis.
for
une
split-United
Japan Buys
Scrap Iron
By JOHN T. SKELLY
Washington, Feb. 17. United States officials In- dicated today, on the eve of the arrival of the Japanese sleel mission seeking more American scrap Iron, that it will be very difficult if not impossible to
Tunt the Japanese request.
They did
this by reference the US Department of Commerce iron and stock scrap report avleased last week which stated that the government the hero
should tell the United
Japan
the arm Kingdom
Here are the reasons for the decline, and what happened to them Inter:
tions
that
contemplated.
of
oil was
which last your re-
1,800 tons of scrap
from the United States, is reported
the
1957 want to increase amount of 2,000,000 to 2,500,000
to
1. Secretary of the Treasury George M. Humphrey's recent statement that there will be a hair curling depression if budget n't cut,
Late this past week, Hum- Europtan rak and steel phrey said he saw no signs of community to decrease their an economic recession.
DTI dependence
the United 2. Threat of Kovernment
States." controls of business and restric-
Oficials sald. The report said that the freavy on labour.
were no controls demand fer scrap iron by there countries and the continuous 3. Investigation the oil reduction of the US reservoir of industry on prices and sending heavy melling quality New York, Feb. 17.
scrap oll to Europe. Later govern- "would creato a serious shortage Cotton goods sellers, suf- ment spokesman sald
of iron and steel scrap in the so!l bank fering from # starvation moving to Europe satisfactorily event of a sustained national
emergency." of orders for five months, and the oll probe seemed to
fizzle. Department
Agriculture envisioned 80 even
Japan, 4. Fears of a budget cut that reports indicated expectations that Impounding under the soll stringent business diet last later seemed to be out of the ceived licences to import about
the industry question. might reach 3,000,000 week
5. Talk of business sliding and entered what is normally that basis,
in important sectors such
as reflecting multiplying reports the slowest season of the autos, steels, and construction.
for urgent need about
The auto industry perked up tons. moisture in Impo Oklahoma.
now and J growing year.
High mill inventories, low this past week sections of
last year in number of to prices, and an almost utter fuck ahead statisticians commenced
of interest among buyers, left of cars produced. scale-down estimates on future
Steel experts looked the milla
with only ane production prospects
alternative, market analysts high steel rate through the year Old crop deliveries, operating said, "more stringent curtail with prospect of a record under separate influences, ment of production."
The only way in which the turned irregular after March
may reached i
experience new high for the industry
und in season, Subsequent spol month revival
ctivity
At the close of the week a prices, is by quidation reflected liquidation strengthening in
with total of 641 issues out of the Answers: 1-Warlime, 2 Re- supply in line before Ast notice day bringing Thursday, A small increase in demand, that was the way a 1,380 traded closed with grins cording, 3 Programmes, 4 Fame,
with representative
coterle There were 053 losers and 1025 Varlety, 0 Chinstrap, 7 Patter market certißeated
stock,
1 Entertains, held unchanged.
↑ Broadcasts, 10 possibilities
for further summed up the situation.
MILL
remained Among the wider gains madr Films, 11 Comcdiun, 12 Parody. additions to the
managers deliverable
(or "Itma" Tommy, Handley reason for the week: Bath Iron Works stock, en'd the discouraging perplexed in finding a
35%; Chrysler 4%; tame). trade in slow
textiles, with for the prolonged business full.4%; Alena
Tight" money situation, with
reluctance a week." Always something disconcerting, to accompanying reports of in-
to accumulate this group or that.
creasing mill curtailment, were Something suggesting a upsetting factors Inte in the inventories; the stock market decline, plus business recession strain in the economy which had previously been week-United Press.
fears, wero the three most- Or things have suddenly developed on
mentioned possible reasons, ignored. a scale which seemed "un-English."
Disconcerting Week For London
Stock
By C. T.
Exchange
HALLINAN
London, Feb. 17.
For a long time now everybody said: "What
Oils Steady
จง
active
the
Japanese Cotton
a
PUZZLED
a
Cost accountants were puzzled as to what buyers continued to
Mills Set Record High hold off, operating generally on
Tokyn, Feb, 17. Japanese mills (cotton) set new postwar highs in their pro duction of yarn and textiles in 1950, the Japan Collon Spinners Association revealed today."
the 1955
in
“as needed" basis, in view of the attractiveness of current price levels.
the
מתו
not
up
Last week the government, in an effort to mop up some of the inflationary excess of short term borrowing known as Treasury bills, issued 300 million sterling of government bonds, the
They reminded that the basic longest dated ones in the entire gilt-edged list.
80-square four yard print cloth the Wall Street Joumal, sixty
market bellwether is avail- Businesmen watched closely two | major companies which have
Startling, then the January shillings 0 pence and its run
Rifle ΠΟΥ at 18%-18% cents for other segments of the economy revealed their earnings reports trade returns showed the gapning mate, C. A. Parsons, up 9
AVCrago makes at the mill last week: Inventories and the for 1956 show a combined profit between exports and imports pence. declining proit margins.
nargin of 0.3 per cent, off con- suddenly soaring to 104 million
A total of 1,017,592,000 pounds levels, with second hands down ple werd steady, Roynl
yard, or To many it appears that in-siderably from 7.5 per cent, in compared with about 28 million
square yarda, the Association 24 to 24 cents a yard more Their ventery accumulation may have 1:53.
aggregate sales for sterling per month in the month Dutch gained nearly 2 shillings of cotton yarn and 3,300,521,000 to 174-17% cents
but Shell Transport eased
at present, Why this lost some of its appeal, in the the two years wore about same,
November. of December and
said,
bid exist is the most fact of reduced domand for 31.8 billion for 1956 and 3.16 Finally the Wall Street sharp shilling. Anglo-Egyption
the the shares--which Nasser claims to The textile output was 17.3
question of some goods. Stocks are not too billion in 1955. Net prant how-fall which took stocks to
have "nationalised" November,
agtually per ceni, more than
The calculators pointed time. since as yel, but businessmen ever, was off about 400 million lowest level
rose in are concerned when total busi-at $1,009,300,000.
1955, disconcerted London.
their small London production..
out that since last year the cost market by 1 shilling 3 pence.
of ness inventorles get out of line
Financial
British Petroleum sald with sales. They remember 1040
The Association published the raw cotton has gone
around a cent a pound, while "that rising costs are at faull
but closed with a and 1953-54 when a too-heavy
not gain of Agures in a review of the cotton mill wage rates are up around only 6 penco, Suez Canal Com-industry, situation both in Japan 10 buildup of stocky
to mention 10 per cent, forced many can hardly be doubled."
British Governments were pany shares rose 2 sterling to 53 und abroad in the last quarter other higher manufacturing to liquidate for needed capital. A study of This shirt was a leading factor
government pressed for sale, partly from sterling.
of 1956 and its prospect for the costs. statistics bear out the Wall the
Old
first quarter of this year. in the
Cotton sales yarn spinners general confusion. business recession of
Street Journal's sampling. According
Germons strove to be order those years.
Consols fell 8 shillings and War to the
correspondingly slow reported n Dawes Loan, both assented Japanese cotton yam exports Rituation, with BOIRO manu- latest figures available. total business inventories at the close while total national income pro- months lowest levels but
"These show" it noted, "that Loan 7 shillings; they are stili ly.
comfortably above their 12- and non-essented, tell about 11⁄2 during the fourth quarter of nati
facturers reportedly offering they sterling on the week and the last year jumped by 18.7 per certain counts, at "Below [isi”. of 1960 was
per cent duction about 7
rose 3 per cent cad could reach them in higher than at the close of 1055. national income increased almost weeks if they ally and elther half sterling. But
a few Young Loan similarly fell one-cont over the preceding three-
Best Interest in # generally the non-month period to 0,448,000 About half of the wholesale & par cont, estimates corporate downward at this rate.
Blow market ecatred on yarns Textila assented 7 per cent Potash Loan | pounds.
exports in2~ price index of all replacement profits after taxes rose only 2
used by carpet and ruit pro- gained 1 sterling.
creased by 47.0 per cent to 281,ducery and tyre manufacturers. costa,
Lending Industrials took 1 lot of punishment,
Japanese had an aolive week 567,000 square yards.
-United Press. especially
with tho non Total exports for 1050 were Rolls Royce took the most asanted. Tokyo 5% per cents 27,204,000 pounds of yarn and punishment with a fall of 8 gained 1 sterling and several 1,202,009,000 square yards of with Largo percentage bikes Typical of the narrowing pro. shillings; Asosciated Electrical others sterling; the assenteds|textiles. shown by such groups as pro- spread is the experience of a Industries lost 1 shilling wore mostly a shade higher, ducers of primary metals, chemi-number of companies whose ro- pence and a whole lot of others Promium for dollar stocks The Association estimated that cals, petrolcum and coal pro- ports were disclosed last week, like imperial Chemicals; Ford improved last week from 01% cotton textile exports during the ducts.
The Sperry and Corporation | Motors," and Woolworths, 10stpercent to 734 porcent, ut first quarter of this, your Will The inventory, sales ratio... showed a 20 per cont sales fim- about in dillling......... Bhares. with, the. Engilsh prices werd all wago: more than 100,000,000 which generally move in the crease in the nine months end- an atomic future were steadily down in step, with Wall Street's square yards a month-United same direction-dropped from aled with December. Eamings in bought with Reynolda up "2 | decline--United Press,
Prom.
since the wholesale index of all canmodities except
price per geni."
Typical
foods rose about 3.7 per cent. The biggest buildup in recent
months was in manufacturing,
F
+
Exchange Rates
Bukiness was done to the tonal
· MOCÍLOVÉM *market unanicial morning, at the following ratoll 13. dolor (per_31) Sterling motus iper. £1) mus Australan notes (per £11. Indonesian rupish (par 100), Alam teal (për 100) Singapore (Eiraits)
0.15 .10.20 17.00
24.70
18.40
1.00
for 1957,
Wider Gains
for
a high
US official had said that large- scale foreign buying of scrap is creating a shortage for the domestle US Industry and is also forcing price up.-United
Press.
NAMESAKES
EXPRESS
ANNUAL
from
$10
South China Morning Post Ltd.
HONG KONG GOKOWLOON