Page
THE CHINA MAIL, WEDNESDAY, MAY 8, 1957.
TRADE and COMMERCE SECTION
PROSPECTS OF BANK RATE CUT Macmillan Government SMALL GAINS SHOWN
Expected To
RATE CUT HONGKONG
Restore Expansionism
By SYDNEY S. CAMPELL
London, May 7.
Another half per cent cut in the London Bank rate has become feasible. On the eve of Easter the Treasury bill rate fell to below 4 per cent, and this technically undermines the 5 per cent Bank rato, just as happened to the 5% per cent rate before it was cut on February 7.
ON AMERICAN A COTTON MARKET
New York, May 7.
Cotton futures today see-sawed narrowly in quiet dealings but managed to show small gains
most of the time.
Closing prices ruled 4 points higher to 6 points Jower. The market opened up 1 to 7. points. Now Orleans closed up 6 to off. 5 points,
Profi-Laking by Be recenl
buyers, plus routine hedge sell-
ing and New Orleans offerings on balance, supplied a routine demand from the trade and commission housca,
Lower money rates are à saving to the budget and the balance of payments, by reducing the interest on the national debt and on the huge sterling balances owed abroad. They greatly helped the Treasury's ing it imminently necessary operation to re-finance its £300 million maturity in mid-June.
-
can thus
Funding
The need is not so much for
wild
י
WORLD RUBBER MARKETS
STOCK EXCHANGE
(From Our Correspondent),
Business done on the Hon kong Stock Exchange this morning amounted to ap- proximately $744,000. Noori quotations and
HK Bank
the moming's
transuotione:
Shares Buyers Bellers HANKS
1820 1635 for Asia
214 INSURANCES Unka XD *S Lost bard SHIPPING
Wheelocks
K. Whirl
Dock
Bates
34 1035
SPECIALS ACTIVE.
ON DOWNWARD N.Y. MARKET
New York, May 7:
Activity in stocks was predominantly on the downside today but the session's chief features were sharply higher specials stocks such as General Tyre, American Sugar, Western Mary. land.
Measured by the averages, Goodyear Tyro".
Our Of leading groups were lower in Heyden Newport Corp. thel: third decline in a row. Hotestaks hitting Co. Industrial lost 1.04 points to moti-Rand
Inland Steel Co. 494,08, utilities 23 to 73.11, 03 Interchental Corp. stocka .58 to 179.45.
There was strength, however
in selected tyre shares, oils dir- crafts and rails..
2011 Business Maciálnem Int'l Harvester International Nickel
international Paper Int'l Tel & Toi John-Manville Co. Kennerelt Copper
Steels were lower, Motore Legett Meyer Tob. Co.
Lockheed Aircraft were fractionally lower. Metais Loews Incorp, had declines running to a point Lone Star Cement Co. or more.
510
O 1,157 Issues traded. were lower, 394 higher, 247 un changed with 58 at new highs
-744
1.00
7.35 #1.00
DOCILS, ETC.
110
45 4514
Provident
12!
100 109
12.40
2800 12 1000 £ 12%
New York, May 7. rubber futures today
LAND, ETC. HIK Holet.. 10.30 15
35
200
irts) 10,30
31.50
31.13
100day.
32.000
30 * 10.30
30.00
Kumgłowys
30.50
Realis
1655 10.00 10 1870
30.00
The
déilvery expiring May stabilised around the 35.31 cent level, with spot interests supply- acotiered demark), No delivery noticts appeared today. The opon May interest totalled | 60,300 bales, The certificated closed 15 to 45 points higher and...
alock remained at 11,951 balos. Will sales of 140 contracts.
July
the
late
Britain' real Aay change in Bank rate
policy of alber increases in costs, baa
Market's stability was coupled come belore monetary centrol is funding the tended to aggravale rather than would normally rather than during a major Treasury short-term debt, so us to restrain the loflationary wage with four factors: 1. Concern
crop start banks short of demands. By its effect on bank over Treasury operation of that kind. to keep the
and western bei: Lower rates for shart- overdraft rates and particularly central Prospects Jor the operation, money.
A broadening in- which were grim just before tem muney
ectually on home mortgage rates, a lower sections; 2. may
little inquiry for goods in the textile Easter, became much brighter facilitate funding. by giving - Bank rate might do
an inducement to go the right directlon, though it can market for last half delivery; after the holidny, when the gilt-vestors
3. Doubts about chances for be only a tle, edged market started to register cag.
Yet another element is that important change in form the cut in the bill rate and the
near future; She Suez strain has been so legislation in the hopes of a cut in Bank rate.
serious than was 4. Continued heavy sales of raw much legs
of the cotton out of the governmenta partly because fraredi,
winter but Let the public sector with any particular levels of these
also because surplus stock. out bringing much danger of re-rates, short or long, as for Britain's vulnerability had been newed inflation in the private absorptive gill-edged market on
the authorities ezu sellerated. She has not had to the stand-by credit or threatening sterling which abroad. The birreal budgetary long-term securities. Before them the International Meetary surplus in several years, and the Febray cut la Bank rate the
zul the Export-Import Ludgot's 'maintenance and authorities were able to do some tightening of the restrictions on massive funding, by selling cet
Expansionist business credit, do much to curb the marktet. From the until the the private sector. Anyway, high eve of Easter they were able to taxation bluzits the impact of When ax takes dear money.
Cheaper
sector
money
do almost none.
drav
Bank.
The
OEEC, which also seems It is situalice had continued, to be regaining the expansionist the mid-June maturity would outlook which it temporarily lost have meant a serious enfunding: in the list two years, has just in money rates as of any other would have had to be re-dismissed the Suez difficulties as change in business casts.
fully a half of business profils, il halves the effect of a change
Russian Buying
tho
finnced by Treasury
Rex
RUDEER 20.45 Amalg. Standard contract closed 15 Trust
13.40 27 at new lows.
Volume of 2,300,000 10.30 compared with 2,210,000
129 44 10.30
150 1.69 13000 135 1:43 1.85
May
Sept.
Nov.
Jan.
Mar. May
to 45 points higher with no sales TULITIES reported.
Yautnet!
May
30.53
July
31.45
Sept
31.20
Nov.
30.95
Jan.
30.00
C. Light (0)
Mar
30.00
Xitis
May
30.40
Electric
18,30 131 20.10 29.40
and
ות
Teclinical consideration higher primary markets com-eno E. The Commodity Credit Corp. da bined to put prices on an up- is submitted on April 30, sold surge today, Dealers als re- Telephone 143,514, bales at an average price ported a fair-sized factory de- of 27.01 ccnts pound formand in the delivered market, middling inch at average loca attracted by the recent price tions. All this cotion must be decline. shipped out by Aug. 15.
In the shipment market, "fair INDUSTRIALS
Cement of three ambers, Rop On the second export sales quantilles
The agency programme, 678,073 bales at an
Fold May shipment, were reported STORES, ETC.
Daley conic from Indonesia at 27 cents average of
Wilson
21.70 21.00 2000 21.70
103
100,0
500 103
500 101
200102
NY Stock Exchange volume was $4,050,000,
Lowenstein & Bona, McDonnell Afteraft
Stock Exce.) Maht Iron Corp. Minnesota Mining Mission, Development Momanto Chemical Montgomery Ward
shares Motorola Inc.
Nallonal Cash Reg. "A Mon-National Dairy Prod.
National Lezd
National Bieel Corp. bond New York Central
Olin Mathieson Out Elevators..... Owen-Húzola Gilden Exchange Pación Gas & Elec.
Pan American Airways Paramount Pictures
American Stock volume was 620,000 shares,
Dow-Jones closing
word:
30 Industrials 20 mil...
1000 – 18.20 | 15 utilice
100 29.20 65 stacks
500 2020 40 hande
2570 23.80 1800 25.80
averages Patke Dari Co.
Penny J. C. Co. Penn, Salt Co.
404 Philly Morris
149.50
roer & Gamble Co. 73.11 Pittsburgh Flats Gi 17345 Publicker Industries 15149 do Corporation
Republie Steel Reynolds Belst Royal Dutch
Shell Out Co.
| Saint Reg. Paper
Sinclair Ou
(Am.
200 (20.30 Comm. future price Indox
Closing Prices
11025,30
2000 25.10.
000 25,00 Alden inc. Aoy."
# 18
1000
25.70 Allied Chemicals
A8
Socony Mobilull
1000
25.00 AlBed M Inc.
Soler Aircraft
American Airline
American Cable & Radio Corp.
18
South Puerto Rico Su
Sugar
Southern National Gam
41
Southern Railway (Com.)
80
Standers Brands
16x
Blandard 01 of Cal.
31. 32% 1000 k được
American Can............................... 11.10
American Cyanamide Co 14.00 14.80 3500 14.70 Amer, & Forga. Power
11 11.00
Am. Mach. & dry 28 21.30
American Metal American Smelting Am. Sugar_Net. American Tel. & Tel American Tob. "D" Anaconda Copper Armes Steel Armour
21.30 cents a pound for shipment a pound, cost and freight, Local Lane, C.*** 100 actor Aug. 16. Aggregate salesly, No. 1 Rss was quoted at 31% importuni under the old programme rench- cents. ed 7,585,038 bales plus 2,020,000 bales sold under the new pro- gramme.
Month
May July
October
08.200 4,700 170,300
-
COTTONS
Textile
4,00
SINGAPORE
Volume Open Interest
13,000
Naoyang MISCELLANEOUS Entert The market opened tower laÎNVESTMENTS
advices Yanguito disappointing overstas and some early bull selling but Allied
0.05
17.00
1000 6 0.03
++
4.45 4.03
11,800 173,500
10000
169,100
G300
227,000
3,500
63,000
October Total
11:300 4,500
70/700 820,700 baies
NEW YORK
Two culs of half per cent each in the London Bank rate, ona
tad one last February
in the December near future, would together March
May erase the one per cent rise of
July 1950. This would February
bills or belor, in the longer perspective, ather shorts.
no worse than other short-ruo Large To a
cxtent, the disturbances which most always authorities can achieve their be envisaged." Lower
rates, money
purpose by allowing the ex- Incentive budget, the deferee pectation of a cut in Bank rate, cuts and several other develop without actually calling it. In ments imply that the Maemulon vectors will go on bidding up Governntent in its rumalaing the price of shorts, and thereby term aims to restore the expat making the price of longs look sionism of 1052-54 after the relatively more attractive, so follow the tradition that Bank restrictionist interlude of 1955 long as they expect a cut in the rate goes up by onca as a danger Un which Bank gate Bank rate to give them an -signal, and comes down by halves and 1956 was raised by 21 points).stant capital proht on the shorts, as Sterling may fire better from such evidence of dynamism. Its present fitness is an relelititel good mugur
the forent In
Dear Money
the danger ia averted.
culs totalling Two cant would stil
gradually
one per compare with But It is cot reemly er profit- the three rises totalling 21 per Bark rate.
able for the authorities to play con in 1933 and 1950 together. Recully, transferable sterling that gone too far or four hig. The resultrot 415 per vent Bank was boosted indeed squeezed) Present bill rates and prices of cute, comparing with the art-
shorta
far to disficially-low 2 per cent wher: the by Russian buying, probably 10 pay for Russia's sugar purchases counting a cut to a 4 per cent Conservative Goverment tool After the Eister holiday ali Bank rate. They may not held it office in 1051 and with the recent types of sterling main tumed it does not come.
firm, largely because over- seas centres are stil
short,
The
ehrady go
Another factor
Is thut deez
heavily tion
international menetary background nino seems reason- ably propitious. New
York's
Bank rate has been kept down to 3 per cent, even though the bill rate has for months been above it a relationship which previously would have been con= | stered untenable for more than a few days.
Germany, who shared Britain's
high of 5 per cent, would still the altua be In the upper part of the money, like range.-China Mail Special.
CHATTER TUNNEL NEWS
ON WALL SENDS CANAL
STREET
8 per cent Barik rate inst sun- mer has preceded Britain in
New York, May 7. cutting it to 4% in two stages. Morcover
Selective strength should Germany's money polley (which, with the continue
sustained but
present
D-mark so strong, is internation- movement above the 500 ally crucial) seems to be selec-
of arca
the industrial tive credit controls rather than
dear money which (as happened average Inst year) would frustraie the tinues
SHARES UP
London May 7.
$4,000
Prices of cation futures closed today as follows:
Spot
May
Jufy
Octubr
December March
May
July
Dotober
NEW ORLEANS
at lower level the market im- proved
is good trade buying New York Sugar
and some short covering.
Manufacturers
stayed
w side- lines but there
a good WILYX demand for lowers and blankurs
nubber
per lb.
from Europe. Futures:
No. 1 May June
$1.00-69
29-cu
No. Z rubber per lb. May s814-884% No. 3 rubber per 1b. May 673-9795 No. rubber per lb. May 5-8 Spol rubber inhaled . 29-65!, Blanket crepe
35.35 031
35.08
13.80
No. 1 pale crepe
30.09
13.07
33.97
33.18
Prices of culton futures closel today as follows:
Spot
May
July
October
December
Match
May July October
Old contract
July/Aug.
LONDON
81-83
90+DA
The rubber market was steady with spot quoted at 20-11/10 pence per Ib. Prices; No. 1 s spot
Settlement house term:
Market
New York, May 7. World No. 4 sugar futures closed today 3 to 5 points lower with sales of 344 contracts.
The domestic No. 4 sugar contract closet 2 points lower to 2 points higher with sales of- 65 contracts,
World
contracta turned regularly lower after a 'rm start with Increased selling al 2016-202tributed to larger Cuban pro- duction reports for the period through April 30,
June
204-2632
July/Sept.
201-203;
34,00
Oct./Dec.
20%-20%
39.30
Jan./Mar.
2814-2624
April/June
126-28
83.07
General markets, cit basis, ports:
33.00
May
2011-20
$1.00
Jurie
23.07
July
2012-20
33.19
Fstate
1.50
Extate
crepe in June 2035 crepe thick June 31
AMSTERDAM
rubber
market
was
Atima Cona, Mining Baldwin-Lima-Jam. Ballmere de Chip Beneficial Finance Bendix Aviation Corp. Benquet Cona.
Bethlehem Steel
Booing Airplane Borden (The) Co.
Burroughs Add Machine
Canadian Pacific R
Case (1, 1) Co. Cat, Tractor ... Celanese Corp.
Chase Manhat, Bank C. I, T. Financial Corp.
"Chrysler Motors
Climax Molybdenun
Colgate-Palmolive Cu Colombian Carbon Commercial Credit
Commonwealty Glee,
Consolidated Ellison Continental Oll of Del. Crown Zellerbach Cuban Amor, Sugar Diamond Alkali Daugins Aircrati Dow Chemicals
Dupont de Nemours Eastern Airline Eastman Kodak
El Paso National Gar The Cuban Sugar Instituto | Family Finance Cory reported end-April production Firestone Tyre & Rubber
Ford Motor at 4,950,400 Spanish long tons General Electric
or only a little under the boate Generat Foods
General Motors quota of 5,160,000 tons. Sound Gen. Pub. Util. private estimates On output Getty Ou havo topped the 0,600,000-ton Glidden Co. mark.
Goodrich (B. F. Co.
re-
In the raw market, Holland, steadier today. Prices closed in Sweden and Israel were guilders per kilogram, cif May ported potential buyers on
Cotton
closings, in perice per lb. were as follows:
LIVERPOOL
future
The
as follows:
cargo lot bazis.
Shares of Suez Canal Co. featured the upside in irregular and moderately active dealings
May/June
20.00 20.43
No. 1 rubber
2.59 buyers
No. 2 rubber
Oct/Nov
26.27
287 buyers
Contract No. 4 (world)
Dec/Jan.
20.23
No, 3 rubber
2.53 buyers
crepe
2.
buyera
July
6.41
on the London Exchange today. New contract
Mar/April
-United Pres September
0,41
at this time con- to
appear
im.
Canal to Egypt last summer, is now negotiating for a role to building the st tunnel be
tween Brlicin and the con- tinent, sent shares
up 2 shill
News that the Canal Com- pany, which lost control of the
May/June
October Maren
040
4.03-BA
July/Aug.
งา
481
Oct/Nov.
Dec/Jan.
Mar/April
July September
teants per lb. fob Cuba) 645 Open Interest: 8,023 contracte,
Contract No, G (domestic)
4.12
Industriais
were
due to large May notices and speculative selling. Prices in rupees per follows:
July
$.60
ad
were
March
hopes of restoring the capital provement, according market which Germany vitally needs.
Overvalued
E. F. Hutton & Co.
Reynolda & Co. says the ings pence, probabilities of 赶 technical
是
Elsewhere maract's
correction
the
4.32
In
KARACHI
Singapore
The maricot was easy today Stock Market
September Singapore, May 8. Brokers today quoted the Avember following stock prices
Zintang Rubber Co. Ltd...00 British Borneo Petru
leum Syndicate...... 50/- Consolidated Tin Beneli-
Spot (cents per ib, cit NV
ex-duty)
Open Interest: 2,304 contract.. United PrONS.
Japen, whose balance of pay-current run-up are sufficiently mixed, with declines seeming to ments has spun Inte deficit this good to warrun the expectation oulmamber gains. Shares of Col- year because of her internal or better buying opportunities, villes dropped another shilling boom, is applying the remedy John H. Lewis & Co. analysing and others were down 0 pence of ughter money, France, with westem Air Lines, estimates the
or less.
47 Sind roller gin...... 200 Bind roller gin
2095* Punjab roller i
Opening
01/10
Jitu
31/12
90/2 34/**
Cotton
ww ... 10
SAO PAULO
futuro
FYANET & Neave Ltd.
33/01
$2.40
closings,
a grievous deficit and a grievous. | Compony will earn $2.75 a share There was moderate demand iy overvalued currency. hasis 1957 against $1.27 last year. For engineering, tobacco and raised her Bank rate, but it is Walston & Co, noting that chain Ftore shares, Political still only 4 per cent, actually Carrier Corp, has budgeted a 20
uncertainties in, South lower than Germany's whose per cent sales rise, estimated net caused gald shares to weaken. cruzeiros per kilo were as fol- | Gammons (balaya) Ltd. 11.00 exdly situation is as strong as France's for 1957
at $0-$0.50 a share,olls ware moderately lower.
in wealt, Britain's present con-against $5.20 in the previous
ditions, 52 aot GO strong hecal year.
据 Germany's,
Marc
stronger than France's and are
not in the same phase
Japan's,
Arthur Wiesenberger &
in
Traser de Neave Ltd.
75% cum. DIEË. -*... $4.00
Hongkong Bhanghal
Banking Corp.
Africa
·British Government bonds had
losses ranging to 10 shillings in
lows:
July
October December Maso
$205
30.00
Hongkong TU LAM.
30.00
Kumpas Ltd.
1/0d_exdiv $1,54
40.20
Kusla Kempar Tin
41.00
LTIME Rubber Erlater
Malayan Breweries *** the United States, the New Berandah Rubber 10 average price of one-inch colton **Co. "Ind.
0.61
83,05
$1.70
Co. old consols, Foreign bonds wCTO
the breakup value idle.- United Pre$5,
far
calculates
of Loews at more than 40 mund
measures potential carning
If the cut in Bank rate does power at $2.50-$4.00 a skaro- come it may well be represented
in the same way as the February anually within a few years
monetary
on the
CARGO EXPRESS
"Interavia”
TWA
at 14 designated spot markets | Petaling Tin Ltd, 20, 43.8731 was 33.80 cents.
Total sales at these markets was 142,204 bales-Uniled Press.
NAMESAKES
Radice Hatei
$2.40 Singapore Cold Storage $1.01 straits Steamship Stradla Trading
$33.25 ox-all No.10 United Engineers Ord. 0 Weerno os
China Kall Special..
Exchange Rates
a not as any relaxation of Druyfus & Co, prescota what
it
two "leisure time" calls control but,
reports: has started a weekly freight and contrary, as "better monetary lod-American Machine
Foundry estimated 10 earn mall service between Genova control, cheaper". An ineffective Bank rake, out of touch with the round 14. this year against 33.03 and New York by way of Paris market, is not much use, re- in 1930, and Black & Dacker and Shannon. The service, to gardless of whether it is high or which it ways may show 30 for known as Cargo Express, wi
ending September be mainly dealined for ship- low. This may dispose of the local year argument that any relaxation 30, against
in previous ments of the Swiss watch 3 Euston 4 Arrivals, 3 Padding
dustry.bit bulky, loads, that can be afforded would be decal your.
and son, & Expone 7 Booldag, morning at the following rates Harris Upham & Co, estimates ilve animals will als he 40-Prongen,, e Interyal, 10 De- Ditter directed to cutting the purchase tax or the hire-purchase Stone de Webster will car cepted. The date will leave partures, 11 Blation, 12 Change, restrictions rather then to cutting 14.00 a share this year, ensinat deera-telstrit every Saturday 13 Page, 14 Crewe, Brak rate, A' Bank rate cut $9.99 in 1888, might increase night. DC-4 transports will be might not be any relaxation. (year end extra.---Unltéd Pření,
$5.17
Answer-1. Stopping, 2 Time,
心
Butice was done in the unofficial exchange market
George Bradshaw originator of railway gulāra)..
cal
thle
3.50
New York Foreign
Exchange
New York, May 7. Closing rates were: Canada ER Elas Mala Aurizelines
South Africa
Belgium
Argentina
Unigung
.......
270-31
Others unchanged. United Fress.
London Foreign Exchange
London, May 5
Closing rules were: New York
Mobilusi
Tollar (per al men Burling: Daten (ać. Ziju Australian votes, iper @1) .. 18.03 Copenhagen Bien Hoa (per 100) Indonesian rupiahs (per 106) 74 1400 tockholm
Bingapore (SIN)
£80 1 – Othera uzichan.
Standard 01) of 154,
21, Blancard Dit et N.J.
140
52% Steep Rock (Toronto ge.)
Sterling Drug, Co. Stokely-Van Camp. Brudebaker-Packard Corp. Bwift & Co.
19735
"TEXTU VA
14 Tide Wator Amin. Oil Haiti Twenty Century Fox Flim
Union Carbide Urion Paciile Raliway United Alrerart
2014 U.S. Foll
4714
031
43
60
X. Gypnum
14.8
US. Bubber
Ling Co,
4. U.S. Smelting
راته
US. ateri
Warner BroA,
Westinghouse Electric 2016 Western Union ZOL Co.
West Va. Pulp & Paper Woolworth
18
431 x
United Presa.
LONDON METAL
PRICES
London, May 7. Priegs of metals closed today In sterling per long ton as fol 10ws:
Tia spot
3-month
Copper spot
Buyers Seller
7633
76010
24015
10445
Zinc ist half May
Aug.
nited Prova
-month
Lend ist halt Ma
Aug.
TYPHOON MAP
With Latest Amendments
$500 MOUNTED
from
$4. UNMOUNTED
South China Morning Post Ltd.
·HONG KONG & KOWLOON