THE CHINA MAIL,
MONDAY, MARCH› 25, ́1957.
TRADE and COMMERCE SECTION
Traders Indifferent On Inflation
Wall Street
Past Week
During
By ELMER WALZER
New York, Mar. 24.
The 200 billion worth of stocks listed on the New York Stock Exchange moved as little as it was possible for them to move during the past week.
And daily average trading fell to 1,612,291 shares, the smallest since the week ended Oct. 26, 1956. In the previous week the average was a bit better at 1,657,658.
When the results were trilled -about a cent a share--for the in Standard & Poor: electronic | week. The Dow-Jonca aveTURE brain at the close on Friday that for 65 :locks was down, agency's 300-stock Index "stood | 40/100ths point. nt 44.06, up 1/100th of a polat
-taleroute
WEEKLY
reflected
The truder indifference to (h). market. The deals that were nade were mostly of a routine Door truder variety plus sете
NEW YORK speculation on news of the day
COTTON MARKETS
By HENRY J. BECHTOLD
New York, Mar. 24. The cotton market re- versed its downward trend of recent weeks, moving up smartly on technical
considerations
week.
this
Truters weer indiferent to-
the market
buse of
what they considered ★ነን ~ ranties in the Middle East and In business,
Further
Federal
HONGKONG STOCK EXCHANGE
(From Our Correspondent)
Businers done on the Hong- kong Stock Exchango this moining amounted to approxl- Noon quota- tions and the morning's transme-
mately $304,000.
tions:
Khares
BANKS
21K nak INSURANCES Baton
Hinyers Melters
1800 3010
1935
Bates
2 1010
34
Lombard SHIPPING Wherlock DOCKS. EP K. Whart Dek XD Provident
NK Land
371
11215 180
101 102 14
13 10 13.40
1641
SHARP RECOVERY
Or Deflation HEAVY FALL, THEN Controversy In
In US ON LONDON MART
RELATIONSHIP OF STOCK MARKET AND BUSINESS QUESTION
By JOHN MORKA
New York, Mar. 24.
With more people working than ever before, Americans were still worrying last week as to whether they were heading 1200 0.75 for a boom or bust.
300 # 102
és
London, Mar. 24.
Markets had another sensational week like the first week in December-a sharp, heavy fall, a fall really alarming in its dimensions, followed not by a slow zigzag recovery but by a sharp, almost instantaneous recovery.
On Monday the index of industrial shares tumbled 4.1 points to 180.4 and in four trading days 6.2 points to 186.6; the whole recovery was based on one idea-inflation. The buying was by individuals and firms which are convinced that inflation has not been checked, but is still going strong and in those circumstances you can buy industrial shares almost at random and pick up a nice profit by and by.
Shares like Unilever, Vickers, Bowater Paper and Marks and
Another list, including Fond Motors, Dunlops and Cour taulds, improved a chilling. It was all very reassuring.
The nuclear-power favourites were strong
with Reyrolle up 2 shillings and C. P. Parsons up a shillings D pence.
There were many disquieting developments backgrounding Spencer rose 2 shillings or more. 200 130 this uncertainty. Steel production last week was the lowest so 107 in 13.10 far this year and indications are that output will be even lower 2014.10 this week. Auto inventories are mounting and some dealers
are grumbling about the difficulty in selling cars.
1.45.
LAND, NTV NK Ha
XI
14 14.20
X AB Realty AURAER Arals "TA UTILITIES Timm Yaluati
XU
145 1435 16000
1140 1.025
22
500 si 21.00
101
102
100 100
Cat LO 22.00
20
800
22,00
the
offset by
fur
Päretrie Telephone INDUSTRIAIS
2010
309
30
300
30
024
24.00 | M 240 2400
3342
Braper STORES, ETC Dairy
1200 Can 124,
What they didn't like about
nove,
rut budget was hopes of fax
0
CUL dividuals next Jan. 1.
Spark Of Life
There was a spark of life in
the market
on Tuesday Just
$4
Walt
Textie
4.05
Electrical output has hit new increnses which are outpacing levelling out in the anoney
Olis had a lot of professional laws, dating back to December. | productivity are the cause of in-market.
buying by those who had sold Consumers in many
distances Dation. It said that its cost per
them during Monday's tumble. Meanwhile Wall Streed are showing new resistance to employee-hour in 1950 was 31⁄2
con Royal Dutch jumped 13 shillings to be baffled by the which was a measure of thin new price hikes.
whic Wage rates limes that of 1940. Steel prices, tinues
market's sluggishnesek, Prices urgent buying but others continue to rise against a back-it added, averaged less than 2
moved narrowly last week, in enjoyed The Ja
a more moderate de- ground of declining productiv- times the 1940 level.
Ac-mand with Shell up 2 shillings facing itself for an- line with recent patterns. ity.
dustry
and British Petroleum
I up about shlung. averages are selling al summer when new wege boosts
13% per cent times earnings. go into effect,
On this basis, it reasons,
the market appears somewhat more vulnerable to unfavourable
on
100 331% the almg at higher pinen other round of price hikes this cording to Bacho & Co.,
narrow proft mar- gin. The tight money situation and the lack of credit is being 10:30 1400 16.30 blame for "catastrophic" con
37210.20 $300 16.30 dition in the housing industry 2000 N 10 with construction off 17 percent
200 28.30 from
year ago.
11
past
before clong when a dip ita bankers' acceptances. erroneously interpreted break in tight money,
A6
Th **run Koporto
2499 300 201
BK
AOITONS
SVEK
('orp
L
Nanyang
VIDEO
by the
Dow- Industrials
Vangere
Amel
at 472.04 off 143.62, up
At Friday's close, the list ruled two to 27 points-10′ centa to $1.36 a bale-higher than last week's close.
Nearby best
MISCELLANEOUS
INVESTMENTS
17
4 65
1020 1.85
475
And the bull market-which
Investor
confidence-ap-
misured deliveries recorded the Jones
averages, 1958 months closed the week peat gains, while moved up only slightly
rails as 1.34 point; stepped-up crop ideas exerted 0.45; and utilities 70.78 of 2.80 U.S. RAW COTTON time, a Wall Street publication
point.
a fair amount of pressure
on
these contracta.
Trading on the whole was dull with buying sentiment in- fluenced chiefly by the following
factors.
1. Increasing mill interest in
new crop cotten.
2. A drop in certificated cotton stocks.
3. Trade belief that there has
been a little
the delta area.
too much rain in
4. An unexpected upturn in sign-ups ter the soil bank.
Reporte af good mains in the cotton belt and forecast of more
to come had an adverse effect on
prices.
The Standard & PooʊTA Indexes showed 425 Industrial:
of 0.01; 25 ralla up 0.08; and 50 utilities up 0.07.
The market tried unsucce99– fully
to stage a
rally in
share from
In
the
8.20 8.30 2230 8.25 helped no end in bolstering re-
sent
to be reliving Its early pears childhood when trading was light and price changes small.
And last week, for the first
labelled
present business situation a="recession." But other experts insisted the talk of recesilan or depression is the Mean- bunk, By they put it. while the controversy over In- flation versus deßation continued at a stepped-up pace, Heightened by latest economie Indicators of a bearish tone.
EXPORTS
New York, Mar, 24, Raw cotton
by exports
the the destination as reported by Fulday sesion but was defeated New York Colton Exchange, in
break by
the tobacco bales, for the 1856-57 season to which
suffered March 18 were as follows: again
740,492 tinking reports
lung
2,053,373 cancer with cigarette Emoking.
in 3 points Tabacco on the week.
Leading slightly.
The group was down na much
rus
stcels
Steei
American
dipped operations receded to n new low for the year but near a point where the using
Certificated cotton stocks industry without
to 10,190 bales fromĮ marginal equipment can make
dropped
10,438 reached earlier last week note and 10,248
week
been signed
money
than
when at the end of last operates at 100 percent. Lukeus
Sicel spurted 04 points
Britain Continent
Orient
Canada
Total for #AMON* Same period last year*
1,603.018
287,028
3.207.011
1,020,404 United Press.
Exchange Rates
Business was done in the inenl unuЛelai
this exchange market
It
morning at the following rater:-
U.S. dollar (per $11_
ON
knowledge
of
12
Sterling notes (por £1) Australian notes (per £1)
4.18 10.25
12.78
report.
Indonesian rupiah (per 100) Sinn tical (per 100)
25.00 1.80
The DOA reported that 2,085,- advance 304 acres of cotton land bad favourable earnings
up for the soil United Press. bank as of March 15. a sharp increase over the previously re- ported figures, but still well be- low the minimum goal of 3.5 milion.
However, there still are sere- ago registrations above the three million mark and possibly close to the wanted level.
The Censu Bureau reported domestle mills consumed 604,300 bales of cotton in February (20 working days), as against 840,- 507 bales in January (ED working days), and 760,017 bales In February, 1950, (20 working days.)
Cotton held in establishments
at the
end of
Singapore (Stralis)
Steel Downturn
Pessimistic Note
Block
Suez Canal
NEW TYPE OF FOAM PLASTIC
New York, Mar. 24. A new type of light plastic can now be made cheaper than foam rubber, according to the Wall Street Journal.
The
Chemical Mobay Company of St Louis, the Anaticial daily maid, has
business developments. The Suez Canal had a fairly good developed a new process wizich
A
cost
of
of
The
bring the most
note historical record of the last few week with rise of three-will pessimistic
below "shows fourths sterling to 51% sterling.polyurethane
that came from Bache & Co. Invest-decades, it points out,
South African mining shares, foton rubber, Mobay la owned ment and brokerage Company. that the average evaluation of Its latest business review the industrial averages by
Monsanto Chemical in-especially the gold shares, used jointly by
tumultuous has been
about 122 to enjothe introduction of South Bayer A. G., of West Germany; markets Company and Farbenfabgiken stresses "caulion" as the invest- vestors ntent watchword because of times
the during carnings,
budget
which
One top industry source "recessionary tendencies" stem-dividend yield averaging about Africa's annual
several little ming from
narrowing
usually contained profit 4 per cent." margins.
The Bache admits 11 sure how long the decline will continue and how long it wil become. It doesn't think the administration could reverse major downtrend in business without a considerable time lag.
"In contrast to the recession
with
a
weeks.
that was quoted in earlie tidbits for the mining fraternity. markola
foam by Wall Street's Thinking But last week gold shares could rupen
rubbar, the new process will no following at enable manufacturers to offer fractionally Bet a.li.
- polyurethanja projłucts compar- Experts are criticat of
ented bonds were able in quality Wall
German assented
to the Street's thinking on the businessm
more active that product as mich stronger and more
a lon picture these days. They insist
been have
for several cent less. Wall Streeters pay too much at-
they
The Dawes essented
The new tention to past history and too improved 135 sterling, the 7 per
process, it little to cure business health, ent Polash 1 sterling and the explained, "webstitutes poly-
mado froad
tex
per
was
proylize
ao
!
for 25 cents pound in tank-car quantities, polyesters, costing 50 cents a pound,
the ingredients 70 to 80 per cent of making up the volume of the plastic.” One
This producer reports
drops the cost of manufactur Burethane ero esowterial
of 1953-54 the U. S. economy They offer the same reasons Young Loan assented sterling, esters can expect little support this for their optimism: High govern the non-assenteis of the Dawes Glucol, selling
14 sterling and Western Lime from
Europe ment defence spending, the im- Loon gained
Young Loan big that of the where Industry was booming pending rond programme from 1953 to 1955. But where a backlogs of many companies, sterling. There was one excep
Hon the 1930s which gained 1 These included the following: levelling out process has taken high consumer buying and are starling. This particular issue
the beginning of cord gross national product. 1. Despite low inventories, the place since
1958," it noted.
seems to go against the always auto industry-heaviest buyer of
And further, they insist: bust-general trend. steel is showing no disposition
U. S. News and World Re-ness men wouldn't be opt to British Governments had toward boosting its supplies. port Magazine, however, finds plan on spending a record 374 highly irregular week Steel output, reflecting this las, that indiation is slowing down, billion now plant and equipment by the close it was quite plain is scheduled at 93.5 per cent of that although there has been if they had the slightest idea a that they had suffered a lot of capacity, or 2,392,000 tons. This some price cosiness mostly in depression was in the offing. selling.United Press.
Standard & Poors, business analysts,
says it would be mistake to characterise the pre- sent as a typical cyclical tum-
מחה
the
is
is about 85,000 tons under
Taw materials, the broad trend pear-ago levels. Some experts is still upward think the
steel downturn 1746 temporary, with an upturn ex- pected by some in May or June. But others aren't so sure. Much
Phone Cables Can
Carry TV Pictures
In New System
tele-
Philadelphia, Mar. 24. Successful experiments consuming
using February amounted to 1,701,103 phone cables as television signal carriers in place of more costly videdo cables, microwave equipment or coaxial cable, were disclosed here today.
bales, compared with 1,040,031 n month earlier and 1,751,348 a year ago, the Bureau added. United Press,
US Cotton Consumption
Last Month
Washington, Mar. 24. The Census Bureau said lont Saturday that about '084,360 running, bales of cotton were consumed in the U.S. during
February compared to 760,107 In February 1950,
cotton
While the lowering of fre-
The trend of prices, it finds, is mixed. Among the prices show- ing more signs of weakness than
FE
will depend on auto sales in the strength: steel scrap, down 228 point and to look ahead to
The
next two or three weeks, outlook here is still somewhat uncertain, however,
though in
construelion
automobile heater housings and toys household spongsarki rader
domes in planes, fexible
mops,
for insulation lining winter clothes, shock aborbing automobile crash pads, spongy In shoes, Among other--United. Press,
innersoles The Bank Of England
Statement
London, Mar, 24.
Sterling
1.804.02330
NAMESAKES
Answere-1 Story, 2 Horse, B Chem, 4 Crown, & Hint, 6 Allon, 7 Battle, 8 Lewis, 9 Cake, 10 44,005,440 Undcom, 11 Llon, 12 Regalia, 13 15,848,444 Fight, 14 Stirrup.
249,370,028
a sizable.recession or oven 'de per cent; copper, down 11 per presalon. International Statistical cent; tin, down 8 per cent, rub- Bureau says the business outlook The Bank of England state- week ended bar, down 10 per cent; copra, does not justify the presentment for the
though down 6 per cent.
pessimism, even
somo March 20, reads as follows: 2. Auto dealers complain that
and casiness temporary Inventories are becoming
*x-
Prices that have gone up over slightly lower level may occur Nates in circulation .. cessive. Dealers hald come the past three months; Pig trom, later on, 720,040 new cars in their show-up 6 per cent; filshed stool, up rooms as of March compared 1 per cent; gasoline, up 12 per
1, with 020,400 on Feb. 1, and cent; hides, up 7 per cent; raw over 900,000
in March, 1953, cotton, up 1 per cent; Although the February riso was acetate, up 2 per cent. leys in volume and in percentage
than
in the
the preceding three-
many dealers are com-
about the tight credit.
anuation and the high cost
of
Government section. Other securities Public depoalis Prentice-Hall, analysts, Says Private depots that amplo backlog will support Receipt
until rayon business volume
risingmie government spending, firming consumer buying and easier to the money and credit come TESCUC.
Middle East Factor
More than
This well-knowni agency an interesting argu- ment--one that has never boer given any definite answer, namo- ly, how closely connected are the stock market and business?
Prentice-Hall, concludes that
any other factor, borrowing. The next few weeks peace or war in the Middle East brings up should give a better clue as to tion in the U. S. will be re- could determine whether infla- the the industry's future. Mean while, General Motors, losing tardod or speeded up, it noted,
In the auto sales race,
It added further:
"If peace is maintained, one
and Inyoff of 500 worked
rate on its 1-day
204,047,024
33,620,428
The White Knight
(From
10.5 "Alice Through the Looking
United Press Glass").
A NEW
得
COMPANY?
place your printing order where you are assured of personal attention, export 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.
at its Linden New Jersey plant of the main factors for inflation the last big stock market break From the word “GO”. The new system, which utilises standard because of slackened clemand. in 1950 will be missing in 1957.
in 1948 Iends support to the view that bull and bear markets continues To
to "Unless war comes, you can cable facilities for transmission of TV pictures Ford Motor Co.
outsell all other makes this year, just about rule
out any rapid have little to do with basic
trends business
"FOT, from with motion, will make the use of TV in industrial expecting to top year-age levels intiation. Any further rise in
1940 to 1949, stocks sagged and institutional applications far more practical
by 17 to 20 per cent in the prices this year is likely to be
while business soared." March quarter. Ford hat oc- more moderato than that than ever before it was said.
Actually, says the service, the counted for more than 27 per 1950. Living costs and business historical record shows that cant of industry's total sales in costs will continue to yo
Rand business generally Details of the experiments
February
however, little by little. Batring stocks were revealed in a talk pre- | quency results in pictures of)
a serious recession, which is not move hand in haid
But As to whether the U. 3. was expected, you cannot look for
Wall Street generally pared for delivery before the somewhat less quality than in
this. Its experts real Franklin Institute of Philadel-regular broadcast transmission, moicing any headway in combat-
relief from irigh doesn't accept
market any the current phis, by C. Raymond Kraus. Kraus said they are of sumelenting the infintionary spiral which prices."
2031 bod, business ahead ten't loo Thera engineer of the Bell Telephone ly acceptable quality to be used President Eisenhower has singled Company of Pennsylvania. The for a variety of industrial op-out po the No. 1 threat to the that the pressure on credit was haven't been doing any liquidat
were further evidences
sinco the big holders of stock In its monthly report to in-by the Bell
now system has been developed plications such as traffle control, U. S. economy, opinion was somewhat easing. The U.S.United Press.
Company in co
President Treanny's Former dustry on
banking operations where plc-divided and interoperation
with the General ture quality is not of primary Hoover said the same thing in borrowings was 3,041 per cent statistice, the Burcau sald
Precision Laboratory Inc., New consideration.
Miem! beach last night. He call lowest since December, 8,277,703 balos were consumed York, and Dage Television at There are two versions of the ed for government during
months. Thompson
was the third weekly decline. The Bank Of France Products inc, new narrow band television, In pointing out that the "purchas- Bankers consider the ente an in- through February compared to Indiana.
one version the pictures are ing power of the dollar is down dication of the total availability 5,431,702 during the same period
sent nt 1/15 of a second rather | every month,” than at 1/30 of a second and
in Federal Reserve Board Chair- Elsewhere
the money the overall definition is changed working day
bankers acceptance from a nominal.628 line picture man William C. Martin told a market,
Paris, Mar. 24. totaled 1,701,103 bales in con-
used to cover export and Using regular telephone pairs, to about 183 lines, In the Senate Banking subcommittee rates, establishments
re The Bank of France stale- suming
and the new Bystem operatea second version, which transmits dying proposals to aid hous- import transactions, were 14,051,133 balco In public muccessfully up to distances of pictures at the standard rate, Ing that putting more Federal duced one quarter of a percentment for the week ended Mar alorage and at compresses. 10-15 miles. Further develop 30 per second, the quality, la money into the economic stream ago point. Tisla was the first 14, reas as follows: Comparative figures
and for the ment work Kraus indicated, somewhat icas and provides at this time would be inflation reduction in nine months, same day of the previous year could possibly extend the range about a 138 line picture, arty and thight lot the price of reflects the excess of short term Total gold holdings were 1,781,848 and 10,627,248. of transmission even further, In using telephone copper money even higher. He mu no funda This was the first cut of sight balance bron
The Burdsu mid there were Described as narrow band cable palms, it is necessary to conclusive trend toward an ang conqueror in the market about 20,101,000 active cotton-television, it operates on a fre- have some special equipment of sing of the tight monkty situas this your
lion Fund andekar je 25,000.002.000 consuming spindias in the US. queney · batudwidth.
On the basis of the new cute, Total but disqpkinsei: 1j214,919,253,50 of only phase and attenuation distortion for Big Steel the price-eeting on the fort working day of 380,000 cycles, compared with and in some cases spootal inter intharry-bag complained at 39-40-90 day bills are now be Darknave ng crous February. The total
your 4,000,000 cycles used for our-mediate amplifiers may be re-work about Inflation in Taing quoted 3% per cent bitt, 5% OIDOS YANVAR B018,107.115.805 earlier was 10,984,000-United rent Industrial and broadcast quired, Kraus said. United amant report, the United States asood. Some circles think this Current OE $17,000,000
10/0vision.
Stool: Comp, sakt annual.. wage trenki could mean a general
the
a year earlier.
bevon
Cotton on hand on
of
the lant February
New System
Proze.
economies,
•
of credit:
This
*
Statement
Total'difier currencie
Trenc 301,204,302,420 14,273,775,207
in
7222,771,010,000
Advance 10
deposita
· 177,008,800.332
Call in at any time y
and examine specimina
of quality printing which
100 shall be proud to show you,
Morning Post Building Printing Dept.
Wyndham Street, Telephone 20002