THE CHINA MAIL, MONDAY, MARCH 4, 1957.
TRADE and COMMERCE SECTION
Boom Slackens In America
INFLATIONARY PRESSURES
SEEM LESS EVIDENT
By JOHN MORKA
New York, Mar. 3.
The United States economy continued last week to reflect recent cross-currents of strength and weakness,
The year-end-1956 boom appears to have definitely slackened, suggesting to some that the production curve might begin its downward move somewhat sooner than had been suggested two months ago when business forecasts for 1957 were generally more hopeful. Few see anything ominous in the business outlook. On balance, therefore, the overall picture is viewed with some assurance, tinged with a measure of cautious skepticism.
On the minus economie ledger
thise disturbing elements.
Continued 1.
Kimes and
It was at the rate of about 3 billion in November, casing to 4 billion in December. While - considered! to sales, there does
ventories Are
not
to be any streti
COINUTE
Pome
introducing a 77435 1ine Japanese portable radios, im- proved sewing machine equip- cnd home knitting n., ebinery --Unlled Press.
pressure for my now accumu The Bank Of England
tion. UNSUCCES-
4. Natowing profit margins Excessive despite rising miles, bolstering not appear tears that labour cage- ment are apparently Tul voluntarily restraining the woste-price spiral which Ebenhower singled out as the the nation's biggest threat fo economic stability,
נון
Statement
London Professional
Investors Cautious
By C. T. HALLINAN
London, Mar. 3. When the Conservatives came in, 5 years ago, income tax-a very disagreeable tax-stood at 45 per cent; it has been lowered rather timidly to 42.5 per cent. This helps to explain why, at the numerous by-elections recently, thousands of middle class and professional people stayed at home; they were fed up with a Tory Government which talked about reducing the country's punitive taxation but did nothing about it.
Unilevers
that
soared
· Pagë....... V
NEW YORK BRITAIN'S ECONOMY
COTTON
MARKET
REVIEW
OVERLOADED
London, Mar. 3.
Britain's postwar prosperity is in a precarious position, with its economy over-
By WILLIAM T. PLUNKETTĴoaded and overstrained through the effort
New York, Mar. 3. to do too much,"an economic reporting
Cotton futures see«
sawed indecisively this
revealed today.
past week in one of the The report, prepared by the Federation of slowest trading periods of British Industries, said overloading in the home economy has caused the supply of money to increase faster than the supply of goods.
the year.
Prices at Friday's close ruled 2 points higher to 18 points lower, or up 10 cents to down the preceding weck.
"Instead of financing
argely evening-up operations their credit" it said. in the expiring March delivery.
NY STOCKS REGISTER ADVANCE
00 cents a bale compared with pondilure solely from taxation
and voluntary saving, postwar Small operations consisted governments have capitalised
"Since the war Britain has Spurts of Iquidation followed paid her way with dimeulty, uncertainty and strain Int issuance and circulation of few delivery notices,
Contrast to this weakness in with other A substantial increase in the economic relations certificated stock suggested the countries, we have achieved the
By ELMER WALZER possibility of additional tenders, highest standard of living ever,
our The deliver but able slock sellers thought......
New York, Mar. 8. prosperity is pre- Friday totailed curious,"
The federation will this week week on a whirl-wind spur Stocks ended the past 4,883 bales, an increase of 1,043
submit detailed representation bales for the week.
Easiners in new crop months reflected the occurrence of fur
eas 6ther rains over the parched aréas
of the southwest. The improved moisture conditions encouraged belated plantings in areas where much of the acreage was to be abandoned and signed up for the soil bunk. In fact, with-
drawals of soil bank applications were reported in some sections after the raina,
SOIL BANKS
A
Voluntary Saving
and
und
Inflationary pressures-the No. 1 worry of the US
10 the Chancellor of the to coincide with the formal government-appears to be somewhat less in evidence, albeit,
Exchequer, concerning bis 1987 announcement uf Israeli to many at least, only temporarily so.
One theory $5
budget. Petroleum By British strange bull market
The report called for full Withdrawal of its forces the shillings B pence, Burmala Oll
employment, ob
"which icavea from Arab territory. side of the of the big three, with eamings, eut rently encountering!
stock market is a middle class shillings, Anglo-Egyptian "B"
A two and a half for one spilt there
resistance, Japon's affair-salorieg were off by 80 percent.
people hoping shilings and Shell Transport 2
om for moving from one job to another in accordance with for Getty Oil sent that issue up trend the interstion to develoŋi new" The Inventory
US to get on the stock exchange a shillings & periço,
changing techniques and de-nearly points-up 6 for the about send key factor
markets for its home appliances quick prot experts are
(on which they But British Governments, the
mund." མས་
week-and the slump in stock prices,
watching These days-uppears and electronle equianent will be
tax) and apply long-term pay no incomin
and medium
sparked a general term The decline in we
It for the viewed with sone inisgivings by
TIDC 22 Rise in business failures, silisfactory,
in extinguistament of issues, surpassed
international the blue chip manufacturers. fm-
their
Petroleum current debt to pre fustrial production in the U. S
the industriais. cutbacks in
War
and Loans
Other alls group. expansive
past two muths is
British Treasury. This would Railway porters here dizelosed pinna for encouraging layover
Nationalisation TO50
joined the rise. attributed mainly to cutbacks la offs in many industries.
of at least account for the steady 16 shillings. Several others 12
Other suggested remedies for Gains sprend to other sections 3. The decline
with inventory build-ups,
rise in industrial stures—13) some shillings
and Old housing
aircrafts, metals, มา
pence
the countries economic illa:
steels, construction and the deteriorat-
17 per cent in the past 2 months Consols 10 shillings,
-Reduction in the supply of chemicals,
special issues at a time when the British ing situations in the television ki
This demand arose from the
Spul bank sign-ups of only money; "Inflation com be strongest. dustries, lumber, cotton-texules,
world is full of disconcerting realisation that borrowing rates 320,000 acres for The week of stopped only by reducing pres- The net result of that Friday appliances, and uutes.
news and the professional ex for money were steadily going Feb. 15 contrasted with aboulį sure on available resources, spurt was to leave the market perts are cautious.
down so that loans yielded less 900,000 acres in the preceding which involves cutting down the higher on the week after three and less. Whenever a govern week, were considered disap-flow of money, or increasing of four days of decline earlier, ment issue stood at a level
of This brought pointing.
total the supply
goods
The Dow Jones industrial services or both." yielding a greater return, it was
average closed the week at Unilever shares.
promptly bought and the price sign-ups to 1,708,014 meres. At the March I deadline encouraging news and higher rose,
Increased voluntary saving: 468.91 up 1.98 points; ralla bank sign-ups
proper function of the 142.42 up 0.20; utilities 70.79 dividend, Jumped 7 shillings d
There was very little Interest the soil
estimated to have reached the government is not to save itself up 0.40, and 05 stocks 100.00 Central in pence; shares of
foreign bonds except some Mining-a
budget surplus, but to up 0.69. big mining
finance selective buying of Japanese goal of 3% to 4 million acres. by a
conditions
which house-rose shillings 6 pense which lifted the non-assented
Sales generally Lifting of
restrictions create acreage
will want to save with the daily and those of Great Universal of the 1007s.
The 1930s and in several Mexican states also people Stores were up 2 shillings,
dampening had
market voluntarily.
a new low the Tokyo 6
by 1 percents trolled Behind them
a long stering
of
effect. Analysis felt this would' saveral
the
when Wall use of the budget 10 200,012.017 1st of well-known, lice assenteds
sterling. gained
Street's attention
was diverted of the the resources 243,890.020 Imperial Chemicals, Wool-
Germans
by Don Larsen's were idia but the
with the de- from stocks. worths and Vickers, with rises Kon-assentcds of the
Surveying the domestic crop whole economy Dawes
mands made upon them has not perfect game. prepara- of a shilling.
AIRCRAFTS HIGHER Associated Electric Industries, Young Loan sterling.
Lions and
Aircrafts moved higher as a in its discouraging report, <laved the week down 2
rapidly shillings compared with ቦ week ago Bank of London and South America felt another 2
Chinese were all fractionally shillings 6 pence to 128 shillings lower, $ petice.
Dollar stocks tended 10,09 Except for Royal Dutch ignore the more violent move 12.05 which was virtually unchanged, ments on Wall Street but not 2010 the oil shares enjoyed a heavy of them closed down a point or
demand and rlying
"The premium, they com- prices; two,
mand Was unchanged at 7 per cent.-United Press,
Plus Side
in
11
more
American purchasing agents seem to
resisting higher prices, and generally confining their purchases just la guarantee supplies, agents
thus Gaicedo
effect that price advances are not likely to rise unduly in the near future. Supplies are becoming On the plus alde, there were plentiful, and the need for bulge abating to be se encouraging developments. buying appears i'lant
Fortune und heavy
Magazia construction somewhat, are increasing substantially, sicel | estimates the current rate of in- production and crude oil output vestery build-up at about 2 pre on the rise, electric output | (billion), and predicts this cut- higher, machine tools makers back will go down to 1 (billion) orders are picking up again, and asually later this year. While even the auto industry in talk-sone segments will suffer, this
more confidently
buying will about trend in inventory second quarter prospects as the benefit the economy as a whole, wim weather approaches.
according to Fortune,
Elsewhere
Must observers are watching Iwo factors for clues to the 1957 busin
These are: 1. picture. Inventory buying 2. Businesa investrpent Ky new plant con- struction and relubilitation.
*T'by45
no danger I simply w of a heavy over-alt liquida- Tron of inventory, as might have taken place had heavy buying continued unabated throughout
to final con- rising be
On this score the outlook up- peurs must encouraging. Two surveys released last week fore- cast a tremendous pickup in con- the your," "Fortune said. "In struction, reversing recent trendset, since sales
should
sumers
الا السوية
by four per of all kinds rose
in 1957, inventory cent to 2.2 billion
moderately over the
acvurulation may quicken corresponding month a year ago.
sometime during the your." The decline In the last quarter
"The inventory, in 1950 was thus halted.
slowdown is The construction outlook for future only the list phase of an ex- is equaily satisfactory, according peated letdown in investment
10 Engineering News-Record. Net exports, and thus not foreig In Its yearly
vyvestment,
forecast, heavy
whil
probably
construction, which last year set diminish once the Suez Canal x an all-time record of 21.7 billion rooponed to normal oll ship (18 percent over 1850) will climb ments. Business capital outlays, to still higher totals in 1937. though rising now, will or
The trade publication predicted a rise of seven percent this year to a staggering new figure of 23.1 bilion.
Large Increases
taper oft later this year or early In 1938. But on 110 evidence available, any dip in output within the capital-goods next twelve months or so will be
were new
ות
London, Mar. 3. The Bank of England state- [UN Tho week ended February 27, reads us follows:
Sterling 1,873,308,445 17,490,501
Nora in circulation Publie drunits 1'rivate deponita Gaverament securities
| Quer securities
Terrript Natje
33,054,290 54,010,072 17.2 United PreER,
Exchange Rates
0,14
Business WAN done in the local
exchange unofficial
market this morning, at the following intest U.S. duine (per $17 Sterling notes iper £ Australlan notre (per £1 Indonewar rupiah per 100) Stam ties, per 100) Singapore (Straity
10,50
Cotton Goods Market
Moving Slowly
for
were
in
were light average setting since world series
"
balance
lead to strong export competition budgetary policy: "In prac days last October
thun from that source,
sald
Loan fell 1⁄2 sterling and of the picture, esenting were getting been as successful as its cham-
Chinese Lower
HONGKONG
STOCK EXCHANGE
to
New York, Mar. 3. Cotton goods sellers reported another week Apathy and uncertainty, of slow business. apparent since last October, if anything, increased as the market looked ahead to the second quarter
traditionally the slowest period of the year.
(From Our Correspondent) Meantime, softening price tendencies in basic
Budness done on the Hong-
Stock Exchange thi print cloths, and a few other constructions made kong
to approxl- buyers hesitant about entering other than "fill-in" morning mounted
mately $900,000. Noon quota- engagements.
tione and the morning's trans actions:
Buyers Ballers
slight, not severe.
Elsewhere, in brief: Among the large increases
There will be: Highways, up 20 per- Inyoffs last wook, mainly by reports of
WW mill inventories on the means" to assist mills regain a Shares cent; bridges, up 17 percent; lumber Industries, ap llances, increase, and in some instances dominant position in world Irrigatice-drainage, up 27 per- oent; waterworks,
companies. A Mans reportedly "choking warehouse textile markets. The most im INSURANCE up 10 per field, Okio plant
and motor cor
In that direction, Lombard of Westing facilities," more market analysts portant step cent.
bouse Electric is laying off until were arriving at the conclucian he thought would be to make The expected 1957 increase June about 003 of the 5,000 that at least a 20 per cent cur-
mw cotton. avaliable will be largely due to govern-workers making laundry equip-tallment of production ism-American mills at the same ment-sponsored construction ment, electric ranges and other perative in order to bring a programmes which are expected
are
line.
To Hold Probe
of
Unlon
940 37
Saler
under way and will expand plons expected."
--Taxation and incentives 10 | unit on Friday but earlier in the
the weeks ahead.
For the most part the soll was work and save: "High taxation week they were bandled about discourages private saving end a whirl from time to time. On Since
the consumption of Friday, the whole group moved | encourages
dendens the inventives ahead, Production for the week of capital
reported in good shape,
战 limited amount
irrigated land has been signed to work and take risks, dia was up slightly from the pre-
the
The
is
governmental Over the supply of remedy for high reduced pubile
Jea
exceeds A year 20
Motors issued its 1950 General report which showed a drop in
Cutting
polley:
up for the soil bank, it was felt courages vigilance over costa vious week and was five the percentage of irrigated land and can be inflationary in the vent higher than a week ago. in cotton this year will be un-absence of firm
Production of autos so far this usually high and may set a control
money. record.
The mid-February parity price taxation report showed
25-point rise spending.* over the previous month. While
government ex-sales and net of $3.02 a share the ultimate loan for the 1957 penditure: "Any cut is likely against $4.30 in 1955, the record crop will be determined on the to be painful somewhere or to year.
Blect issues mot' fvour in basis of
parity, somebody." the mid-July
even thoug "We several sections Investment changes month-to-month between will be followed with cannot afford to cut private in-steel operations were scheduled Increasing output at a new low for the year. The attention. United vestment, increasing
improved requires
material, Iron Age said "outlook for the Press.
and better human second equipment
quarter adds
up application."United Press. relatively pleasant reading.”
Beso gains for the week were set by Getty Oll up 6: Gut Oll up 31⁄4 Mazma Copper. up 4%; Republic up 6 1/7; and
Bestemer Copper
5/ Boeing Airplane lost 4 points. Of the 1,390 issues traded, 720 gained, 480 declined, and 190 held unchanged-United Press,
EUROPEAN
SCRAP MARKET
Brussels, Mar. 3. European steel producers to- day opened a three-day review situation of the scrap market with the joint scrap office of the European Coal and Steel Community
The meeting follows a United States Department of Commerce decision to block all acrop
A new 0.86 0.00 2500 27 0.89
10
SIMPPING Wheelocka
DOCKS, ETC. K. Wharf
10 Provident
100
.13.20 13.50
4033
15.30
03:4
G 1500 04 100 4 04 30 or 01
1.420
1.40142%
IIK Hotel
Macao L... Telephone
xb
Rope
ex-
ports pending the setting up of licensing scheme. HUW The steelmen are protesting against a
a high nuthority de- cision to impose a levy of rims which increase their scrap im- They soy 'this lovy is going to send steel prices up and cut down production.
The high authority replies the the UB scrap Importa from
poris,
which have risen from two and a half million tons in 1955 to a half un expected four and million
this
year must be cut
23 23.10 2000 ℗ 23.10 | buck.
136
104
107
23.00 23.10
0,70
Conference sources said the present meeting was mainly an "exchange of views." No final ao 30% 1084 30
decision are likely to be made,
However, recommendations 23.60 24 2500 # 23.00 will be examined at a further meeting scheduled to begin in 32 3214 100 20
San Remo, Italy, on March 15 United Press.
prices paid by foreign buyers. the ith better balance equipment. This is
between supply Current equalisation subsidies Back to offset the effects of financing company in the appliance field
and demand..
on cotton textile shipments troubles and tight credit which
announce cutbacks. About 3,400
foreign countries aro not the may postpone some private and
workers were also laid off by Consider Business answer. Only an equal price LAND, ETC. municipal projects this year. General Motors and Generni
for raw cotton would be able Ik Land .. Earnings reports of major in- Electric, And about 300 workers
Chief upsciting factor this to open reign markets to dustries
giving
further turning
out plumbing wares
American
he felt. felt. evidence of the growing pinch went on
was disclosure of week in past week a three-day
Realty on profits
costs order
Statisticlans reminded that on as production
premium-make-80- to balance inventories, sales continue to cut
heavily into Oni last week, Chevrolet an-square--the market teilwether the basis of the interim loun RUDDER
based on the Amalg corporate incomes.
nounced some layoffs and cut down to 18 cents a yard for rate, which was
April-May
delivery. While mid-January partly, the mini- Last week the world's largest the work week at tour of lis 12
HHH” | UTILITIES industrial enterprise
recently General assembly plants, cutting pro-
the market checking
ການກ rate figured out to around a Motors-reported that 1956 sales daction by over 21 per cent in tightened up again on the belief 31.60 cents a pound for middling Bar Ferry
one-Inch cotton. The February yaumati
XD dropped 13.2 percent. Not carn order to bring inventories in that we may be in for another parity rise boosted this calcula-Lak ings were off by a whopping
round of markdown." Mil percent.
oMetals Company
holding for higher
ther prices, how-cn to 31.70 cents a pound. The Electric D blamed higher costs of materiala, inbour, tools and services which
eye another inch" and that
claimed they would not average loan rate for the 1930-37 senson was 32.74 cents a pound.
Cotton sales
INDUSTRIALA yarn spinners were not offret by price in-
the market shortly creases. Another industrial giant, A House Ways and Meanscom complete halt in business, reported "tle change" In the Cement Xo
extended buying lull that hos STORES, ETC.
15. 12.30 Radio Corporation of America milice will begin this summer a On lawns,
pro-hung over the market since Dairy reported in largest, volume of probe of import competition and ducer offered the
10 18.20 14 14.10 business in its 37-year history. the reciprocal trade agreements yard number down to carly last autumn, Sales were Watson Its salts volume for the second
spotty and The programme.
Bome large-sized Lane, Crew. 20.30 committer yard, while other mills held
COTTONS orders were wrllen at a "slight Textua ...4.723 4.30 successive your in 1950 was headed by Rop. Hale Dogge will
discount sources mid cloth. AB n Above one billion dollars. Earn-begin immediately studies for south to 18% conta
of result Ings, however, declined 15.7 revising the anti-dumping act of
Continued Firm the
U.S. RAW COTTON percent, while safes were only
1921. There were reporta elite low price, another houso in- would conalter General | reat that the percent higher. The
committee would business on the 40-inch. 10x
In rayon, srelate and Motors announcement was view bok into the background of the 72 9.00-yard down to 10 cents, inued, potty in grey goods.
EXPORTS synthello fibre activity
New York, Mar. 3, ed by, some as indicating the recent agreements "belween
cent lower than Mill curtailment neted to bolster Raw cotton exports by dustina-otal gold holdings company may be losing its sales United States and Japan wherein r 1 to
tion as reported int valós by “tho Company and Chrysler Cars exports
domestic prices for New York Cotton Exchange for In wool, supply-demand. Imbalance raw wool were unchanged the 1086-57 sestop to Februrry Bight inlance abroad the fourth quarter. The Ford States. Meanwhile, American workers in mills as a means of alightly while moes forel 20 were as follows: Motor Co. In 1910 ahowed a 40 | businessmen are showing new eliminating the "perpetually" markets continued Dr.
In percent decline eamings interest in Japan's current effort present production problem.
Boston secounts, old activity Content Exploring-corport possibilities in worsted yam continued very | Tunadu your-ago pace, to our more dollar by divers!- Chrysler, ranking third in the floation of its exports. With for American cotton goods, the slow with prices nominally Tusal for season 6
Rame period last year* Indusity, had the widest declino American appliances Industries i same analyst called for "overy unchanged.United Press, damag • 11ntart.
lead in the industry. Ford Motorte Intter voluntarily agreed to competitors.
from
their best earnings
the
位
His Dotton textiles pan
the to the United
mencit 0.70
of
spun rayons,
exocutives working on
J
con-
Britain
Onent
030.015
The Bank Of France Statement
Paris, Mar. 3. The Banic of France statement for the week ended February 21, reads as followe
Total
other
rendies
Advice to nisbilles,
#tion Fund] #HOMENS | TORni bilis discounted
(50:2854 #11|Banknotes in circuipe;+
iten Current scoourite and
deposits
Trana" 1201201,903 ÅRS 14,381,300,£ÉT 22:071,000,000,
1,460,243,510 Itel Previ.
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