THE CHINA MAIL, MONDAY, MAY 18, 1957.
Page
TRADE and COMMERCE SECTION
'SIDEWISE MOVEMENT IN US COMMON MARKET
Spring Business Pickup
Failed To
To Arrive With
Tight Money To Stay
New York, May 12,
This past wook brought no changes in the general business picture in the U.S.-a picture devoid of any significant trends either way, which the market analysts like to term a period of "sidewiso movement,”
The traditional spring pickup in business failed to arrive this year, and ahead lie the summer months and the usual business doldrums. If the oft-predicted upturn in business does come, it must occur in the autumn months when a seasonal spurt in business usually develops.
It isn't that business is bad | etilicates of necessity, tends and virtually disappear after
reduct the Inadequacy 1958." in fact, it is remarkably good to considering the high plateau that which would otherwise exist; but Ameri- but the only real basis of re- has been reached, con Husinecame%}
covering purchasing power would are so necUS- leaned to "bigger and better" he to adjust for the change in intervening between the collur that standing still gives them
the year of capital expenditure the feeling of silding down MD1.
and the year in which deprecia-based tlun is taken.
pro- of
As an illustration of the con- fusion
omong financial
Journal gnosticators, the Commerce stated that curri business forecasts fail roughly
to four categories:
Confusion
One group of economists still believes that the second half
of 1957 will bring a resumption of the upward trend,
*2. The second group be- lieves that the current moderate downward it will lead into ne accelerated decline in the second hall of 1957.
"3.
The third group believes that the economy will continue to drift lower during the balance of 1957, but will be ready for recovery by 1058.
4. The fourth group, finally, believes that 1957 will produce only Inconclusive fluctuations around the current high plateau,
"U. S. Steels wear and ex- hauation recoded for 1850 wom $278 million, or about $67 million short of the $345 million needed for buy-power recovery.
wear and cluded in recorded exhaustion a $140 million of amortisation which will decline
The Guaranice Trust Company, its monthly Ietter to in- vestors, commented, "What in true of steel is true, in greater or lesser degree, of all business. obviously, deprecation reserves on the original cost of capital goods will not be large enough to replace these goods it the cost of replacement has been incrusing.
"In the course of a sustained | period of steadily rising costs, The deficiency on extremely
HONGKONG
STOCK EXCHANGE
Our Own Correspondent
Business done on the Hong-
this
STOCKS TRY FOR RESISTANCE LEVEL BUT FAIL AGAIN
By ELMER WALZER
New York, May 12. Stocks tried again to clear the 500 mumy gun. Noon quota- hurdle in the Dow Jones industrial average dong and the morning's transand failed again.
kong Stock Exchange
mately $950,000,
Retions:
Bbaren Dayers Bellers Baler BANKS
Bank...
Et Ama
INSURANCES
Lombard
Union XD.
SIUPPING Wheelocks
1800
230
040
38
7.45
7.35 1000 7%
107 100 15 45%
300 43
DOCKS, ETC. C. Wharf.. Dock Pvident (0) 13.30 1540 LAND, ETC.
Ik Land
Humphreys Really RUNGER Amai Trust, X UTILITFES
|
HK Hotel 13.70
(100)
33 35 212
15.70 35
(rta) 18.20
1400
1.30
1009
10.50
18.30
1.50 1.35
...
1.47 1.921/
120 140.
22.20 22.40 1100
5.40
102
104
200
100
10.00
1115
20.00
| Tráin
Yourmal
C. Light 10)
(0) 25
(rta)
become an serious matter, more and more busineses are discovering."--United Press.
LONDONUS COTTON
STOCK MARKET
By C. T. HALLINAN
London, May 12.
GOODS MARKET
New York, May 12. Caution continued to be
the byword in the Worth
Eiretrie
Biacao E... 130
Telephone 25.00 INDUSTRIALS
Cement
20 200
Hope STOKES, ETC. Dairy Watson
32 32 2000 13.30
Lane, C. Emporium COTTONS
Textile
14.40 14.00 11 60 11.80
20.20 0.00
4.03
B 0.10
17.80
0.10
MISCELLANEOUS
Entert
INVESTMEN
Youtze
led
443
25.00
3219
23 11.70 $511,70 1900 11.80
2000 #4.20
Wookly markets: Stock Street cotton goods trade Trade With
but that these will fail to correct markets have had a disor current imbalances and maled-derly week, causing discom- justments so that the economy fort to all and anguish to ought to prepare for more pro- nounced adjustments at a later date, probably in 1958, before it can expect to enter the next ex- pension phase."
some.
Most trying sector has been the British Government stocks
this past week.
Buyers in grey and Anished goods found title reason to the hand-to-mouth change policy adopted more than eight months ago.
Desplie a growing producer
"turn is al conviction that
33
hand, and in face of warnings that supplies are shrinking the mills keep cutting back pro- duction, converters, Carment
China Meeting
Paris, May 12. The top-secret committee
of
CREATES NEW
TRADE ERA
By JOHN MORKA
Д
Naples, May 12. The proposed European common market must not be allowed to develop into protectionistic bloc discriminating against non-member nations, Kogoro Uemára, Vice- President, Federation of Economic Organisations of Japan, declared here today.
A common market emphasising protection at the expense of improved productivity "could be detrimentul to world progress and prosperity," he
added.
Uemura spoke at a meclnig of, unions or très tradio arcus muust
Last Monday the average during the day did
magic margin. on economie and financial policy fuini the GATT ciuria design- manage to get above that Immediately selling set in and for two sessions, sponsored by the Inter-od to promote multistoral. trado prices turned down.
Then they moved up again, points each. Slong & Webster with a good rise on Friday when Thompson Products, L. S. Stor the average touched an intra- rett, A. O. Smith, Caterpilla day high of 500.46 where it Tractor, and Douglas Aircraft
met resistance.
The Industrials closed the week at 488.30 up 0.76 point from the elose a week ago and just be- low last week's high which in turn was the best since Jan. 3.
Railroad
and caring of restrictions.
tional Chamber Congress Over 2,000 business leaders are participating in the five-day Eric Wyndham WHite bädela- of GATT, con- conference which got under tive mcretary
eeded that there were still some vay here on Monday.
Wenata shared the platform; problems to be worked out be- with speakers from Belgium, tween GATT and the common United Kingdom. Turkey, market. These, he added, wero Yugoslavia, West Germany and not insurmountable, adding, that other countries, some of whom there was "no reason to doubt sought to allay fears held in that the necessary adjustment can be worked out in the general The leading steels about held many circles that the common
market
RI might turn into interest of all contracting their own
Lakers Steel fell economic bloc and thus threaten¦ parties," more than 8 points. Magina | exports markets of non-member
Under the
rose 4 or mÍDIO.
coned
Lukens
in the motors.
in the building secilors,
Or the 1,308 stocks
655 gained on the week,
Jost
48
common
and set up d traded, against non-members,
540
non-
-Lucien Sermon, a Belgjan common The 500-level in the average Copper was doing more than 3 nations. General Motors merket
and adviser to the plan
the Benelux economist, call re- in the section, is what market men
France, Italy, and ICC's Commission for European sistance level. It is a point at and Chrysler med while Ford countries,
Johno- West Germany, would crase Affair, said the common market which people want to sell stock Manvilles, was up rose nearly 4 tariff walls within
Shone promote
world the region would some time they bought
ato
tarif trade and would not erect nỆN, Each time
ap- the figure is
tariff barriers sgabet proached new selling develops.
members. Some day if the market keeps
"In my opinion the concem frying could cros that line
countries in this is of Asian Based on misunderstanding," he and Bot into higher ground. None in the Anancial district
sekt thinks a new high will be set 521.09 of April 5, above the 1956, the all-time record high. For a time the railroad share met support a on Wednesday they set a new high since Feb. 4. They declined in the two following redone but managed to gain 0.38 point on the week. Utilics lost 0.21 to close week at 73.46.
the
Using the Standard & Poor NEW YORK
Index of 500 stocks as market measurement, stocks gained 24 cente a share during the week. Trading plcked up to a dolly average of 2,419,570 shares from the previous week's average of 2,408,347 shares.
in
What the market lacked zest among the leading issues it
COTTON
the
common
долея
Safeguards
He said there might be less
Wider Zones and 196 held unchanged,
"With the creative of the There were 213 new highs and
new lows.
European common market ind Business News showed small world will be catering, 'now of development, with gains in steel production, auto phase
zones De-wider output, and reinil trade.
practices," Vomero clines were noted in electricity economic
and noted.
Rene Sergeol Secretary- output, crude oil output,
Car Loadings "One of the problems arising General of the Onganisation for coal production. rose on the week but were off from this will be the relation European Economie Co-operation from a year ago-Undied Press, ship between the co-operating (OEKC) said, he was eco- cuntries and those outside such vinced there will be safeguards" common попея, Should adarainst discrimination. vancement within take place more economically, capital available for investmtit with marked improvement in in ́ undertioveloped countries productivity, the already exist since Europe would be needing ing disparities between the mord more iteit in order to Anance advanced and the sunderdeveloped its integration.
tend to atens would even more marked.
"The result certainly would not be beneficial for world economy as a whole, consequent- ly, the advanced nations part cipating in the enlarged zones. Of common economie prentices must take a heed of world re- percussions when formulating policy, so participating countries would not be subjected to con- fusion and economic disruption."
The common market proposes to weed out the less chiclent industries und provides for a free movement of labour during the transition period.
MARKET
REVIEW
more than made up in specials By WILLIAM T. PLUNKETT
and selected kaugs.
General Tyre
General Tire was a star for a time on anticipation of big 16 nations meeting here to things to come out of the come cuss possible relaxation of trade pany's holdings in aerojet of with: Communist China is study which it has 6 per cent of the ing an American and a French
stock. The stock
common
Wi inakers and piece goods buyers į proposal to ease trade barriers, olummeiled when it w
is generally necepted that Acctually, of course, this is bank rate is to be further lower- just a long-winded way of sayed in the very near future. That ing that Wall Street's crystal means that the City of London's ball is unusually cloudy.
millions will earn less money at the money market and n sub- stantial portion ol it accordingly be invested in gifts where the retum, at presunt cheap prices, will be fairly high. buying would also the prices of gilts; hence they should be bought now, when they are unusually cheap.
If the analysis couldn't agree on what es ahead for busine:5, they were at least unanimous in predicting that tight money is here to stay for a while,
L
Standing Pat
0
This
stilimited purchases to mediate All-in reads.
Jr-
an authoritative French source saiti today.
The allled nations co-ordinat-
that ing committee (C&COM),
with governs trade restrictions Communist China and Iron Cur-
an-
Now Yark, May 12. Cotton futures found the line of least resistance on the upside in another week of quiet trading.
After scoring gains up to $2 a bale, lifting most deliveries to seasonal highs, the market met a Friday's splurge of technical realising when about half of the gain was erased,
tho
Protectionism
become Murrarji Valdya, Dombay, concimed about sald India Es the common market and sug- gested that the countries in the East shumid consider forintig their own customs unions to counter-balance the Europe plan-United Press,
Other speakers appeared to place considerable faith in the
|
Exchange Rates
Business was done in the locat
Unofficial exchange market morning at the following rates: U.S. dollar (per $1) ................ Sterling notes (per £10 Australian notes (per 21) Indonesian rupiah (per 100) Siam teal (pur, 100) ............ Ringapore (Balta)
NAMESAKES
Answers:-1
Satellites,
Shie
14,76
12.03
13.00
29.03
*
10
Tycho Brahe for customs tronomer of the 18th century).
(Danish a5m
nounced both general aerojet were preparing to do some new
However, Apancing.
General Where interes developed for
Tire closed the week with > the third and fourth quarters,
gain of 0 points.
At Friday's close the list ruled buyere were bidding to /4
Western Maryland spuried in gret unchanged to 20 points cent under the going market. tain countries, has been meeting the rails and also bad a sinking higher, or unchanged to up $1,30 general agreement on tariffs and trade as a restraining force on Most mills flatly furned down in Paris since April 30.
an official stated a balo compared with spell when
any move toward protectionism The countries represented are there was | the bids, but elsewhere therG
the preceding week. no change in
by the common market nations. that were inlications
Two sets. dominated mar- "con-all the NATO alles, with the
They emphasised that the Astronomy, 3 Discover, & Earth, company's dividend policy. The nderilal" deals had been made exception of Iceland, phus Jap stock gained 6% points for the ot interest: 1. Cảquitition common market must under the Solar, 6 Orbit, 7 Kastrup,
o Theaty, Moot for substantial
in the Muy delivery, anticipating CATT agreement submit their 8 Denmark, on the side"
of America's allies-
week. Britain, amounts on standard fabrics by notably
Japan and
Gulf Oil, was the big feature its expiration on Tuesday: 2. weavers anxious to bolster the France-have been urging art in a higher group.
It netted Guessing what the government proposal to the 85 contracting Sweden, laxation of trade order book,
controls i
GATT, proposals order to open up new markets. 10 polis on the week Gelty, lom rate will be for this year's partes for examination. Under
The inal loan rate will Allied exporters are barred from another member of the inter-crop. sending certain goods to Red national all group, zen up 5% be determined on the mid-July
points. There was talk of a parity base. China,
Both these split-up for Gulf,
CROP NEWS companies are profitting by reopening of the Suez Canal.
Crop news, export develop. Jefferson
Lake Sulphur,
ments, textile market dullness,
impoundings an
and with- Doboeckmun Co., Eastern Stain-
arld leas Sicel,
Outboard | drawals and the other usual run Marine gained more than
5at price-shaping factors Wert overshadowed as traders con- centrated on
Washington developments relating to farm legislation, and a clearer view of administration policy on future price supports,
'OPEN TO BUY'
Almen fels conşumers
Democrats are threatening to
Instead of boken; bought, they make the administration's tight
were suld all work. A little of campaign money polley a kay
heit was aclling by investors who fasue in November, but
wanted to switch part of their Board showed Federal Reservo
Industrials whose every sign of standing pat on the funds into
should rise proit's credit curbs it has established
under the current Inflation ani yield a renewal of runaway" against
handsome profits when sold later inflation.
OFL. Federal Reserve Chairman
But much of the selling seern- Democrut William Martin,
to vague nervousness hkmself, charged the clamoured due
French are The source said the businessos, govern- eased by the cold wer. The camo from
staged re- of the proposal envisa TCs "draining the bottom ments and individuals who have selling started in January, 1955,
lasted for 3 years, until barrel," before atterupting to re- duction of trade controls warted to borrow and spend d nore money then they were December 1956, with all-time fill. This constant drain on in-corning Communist China.
November. in lowa recorded In
The American proposal, while ventories, they felt, has created willing and able 10 save
substantial open-to-buy calling for a modification of the order to buy more things than 5kce then the market has risen a
by a small percentage but it is situation, but consumera
were list of items barred can yet be produced:"
stable. Old The interest
Console not impressed by the reasoning. with the Iron Curtain nations. or discount rate far from
Reserve foll 27 shillings 6 pence this past They referred to go along all- It was learned that the Co- which the Federal charges member banks for money week and War Lo 25 shillings, ing immediate needs through Com members may decide to de- which they turn lend out for both closing the week at the constantly probing the market bate the French proposal
1807's lows. Interest has been increased from
for lower-priced resales and the They are also underslood to be 1 per cent in 1954 to 3 per
chances of making "quiet" arecious to come to a quick do- cut in 1957. In additions,
deals with woovera
cision-Uhlted Press, Board has been
tho
salling instead
of buying governement securities
on a
the
Statement
7
cur.
con-
for trade
first
EMPLOYMENT
NOT ASSURED
Opinions differed on changea Blockpool, May 12, Fali employment is not so for a higher loan rate. Sources increase atreescal the textile expecting an J well assured
trend in the parity plus the Improving
industry as it was a few years the riding
ago, Joe Heptonstall sald today bust,
BLUE CHIPS
Shares of the leading in-
Uppermost question in austriads also suffered nome to reduce the amount of money gelling with blue
trade is "when will buying open The Bank Of France chips like up?" Guesses still vary widely. in circulation.
In his presidential address to statistical pictures created by the Imperial Chemicals and Ralin Becaus of many past dleup- # these mousures,
Union of Dytre, unexpectedly rapid rate of ex- Despite
the National Royco down o shilling Others
ED EXITS Fodertil Reserve
pointments, there is spokesman
Bleachers and Texile Workers port sales under the government in tho Burne class, like
izzling
Paris, May 12.
surphis disposal programme. feeling of caution pointed out, there is about $134
anntial conference, Courtaulds, Brillah American
Under the two export pro- The Bank of Franco state- billien circulating
predictions. In some places the now in cash
Jo Tobacco and Woolworths gained feeling is
Heptonata told the 275 and checking accounts, $100
that business may ment for the week endod May
legatos "we are nowadays so grammes in operation-one for o shilling while others gained million more than at this time
to be a continue
"dragging, reads as follows:
accustomed to full employment ipmens before Aug. 15 and affair" for another month, and test wold boldings
this second for abipment (alter last year. To the Bourd, this ecce or 9 pence, Indicates that inflation dangers erratic one, Royal Dutch, per-
301,304,302,430 that we sorelles forget all its For oils the week was ar by that me
the "tuation at
benents. Yet there are changes Aug. 15-the govemment has 10,000,000. take should
decidedly incide have not completely passed.
13,454,900,041
gging on in the trades we cover sold upwards of hapa on American buying, rose (stronger tone."
Sight balonen abond
11,771,000,000 which we loolt upon with some bales, APU
Should sales continue. ́at a to .19% sterling
ateri
Advance to Stabisa-
misgiving, pealt for 1907. Sales yarns spinners reported tion Fund
"A number of mills have brisk pace, statisticians question- 1,801,bai.971,180 clastd down. Bome in the ed whether the government wi
dyeing trade and some in the fave ough cotton to last until 9,125,880,001,795. | woollen trade.
Our industry is Aug. 1 when they gwobably over the 1988 loan 33147,994,710 alowly shrinking for a number will tako
atock of approximately 4,000,000. -Unliad Freed. of reasons,”. Tuo maki.
Rapid expansion of textile bales.
immediately after On the oppoèllo sice, shoptiqs | production the war quickly overlook de pointed out that large exporta and cther countries could be offbet by an incapan trand allowed to get under way after in domestic extimates. the war were now strongly comminary estimates, were based on petitive, be amid,
4,000,000 are going into the Conty
Depreciation
ing.
tell comment Petroleum
On the other hood British business slow with trading for Total
counted
進
Chillings the most part limited to light
b
di ..... bote in R
tadion
Another tople for this past week was the incronzing pence and Canadian Eagle on oedera for quick and nearby de- problem of monetary deprecia= | profit-analebing, toll 2 shilings Hvery. Prices held generally Current accounts and
stood, but manufacturers Jeep Lion versus the need to replace | û pence.
Ieguld move up
"pont_over-
by a statement in the 1950 atmızal Feature of foreign bonds was night if aners begin to buy. The Bank Of England!
fox Japonesa
COD
Statement
and expand industriai pintit mtxi Suez Canal foll 2% sterling ta į warning customers. the prices
It was touched off 47 sterling, equipment, report of the United Sintem Stosi | the
asantext bonds which
Trading in hand Abrés lifted Corporation.
Mociate tax law Imlia the most of them 1 sterling while timed on á daybeds baala
Lidon, May 1 total depreciation recoverable the ammonick of Tokyo & per- | Baling twihe manyudiciürersi eel. during the life of a facility to centa izgined a vizelínu. Non- posted an expandiba dermatid os 1. Bank of Engiana saimmons de the number of dollars originally | Asematada were relatively quiet marmers expand harvesting of Spent for it years ago," the ro- except that of the 1910s which the hey cat in many endona, of the broke, atidus, Buky by read post Bald. if wlik value of gained 1% avèrling. Dollar slooks the country, Reung, prities Wars the dollar loadily declining, in pri WITA marked | wieldy to älghty Higher on- the buying power orgully moderately lower to mogona with moderate
expended cannot possibly be Now York pelas bui. Abe | showet Leie olete, but no rouvered under the unrealistic premium risina 1⁄4 of 1 per cenic | avacions ef zimestská priva fer simtits, Pater ricovery, much to per very sulatach Ipes in face of jute eboy-wicertaina as has bươn permitted under | creased buy kg L-Unlea Pr
is
"I am happy to my that in sok baik. boon displaced they have quick-lupad grout ca where workers have 3,000,000 acres have been signed.
TYPHOON MAP
With Latest Amendments
$500 MOUNTED
$42%
obtained fats albembere.Cautions, traders expert the South China Moming Post Ltd.
Löbviously fall employment is market. Sa contípuse to charitain. foto well ammude an it was irregularly will smo ostimates
A NOTE TOUTE ego, but up to now can be restond ta' field-/Medi only small sections of our mora krowina, copolioma, yani da beb VIE: Dave sufferóa khoff-line; fer amugod on weather develop=" working:*---United Pres
rente-Urted Press.
HONG KONG GĽKO