THE CHINA MAIL, MONDAY, JUNE 3, 1957.
TRADE and COMMERCE SECTION
DISARMAMENT CAUSES STIR IN US BUSINESS
Reduction Of Spending DULL HOLIDAY
In Arms Would Mean Lower Taxes
New York, June 1.
The sudden and perhaps unjustified surge of hope in Washington and London that Soviet Russia and the Western nations may be on the verge of at least limited disarmament agreements caused some stir in U.S. business circles this past week.
With the business and market week shortened by Thursday's Memorial Day holiday and the economy showing no significant trends in either direction, the financial community took a sharp look at the possible effects of any easing of the "cold war.'
Pointing out that the growing, accounts for only about 19 per cost of armaments is one of the ent of present economic activity
The de ruuse for the current interest in the United States..
tence budget itself is less than datmament, US. News and
that, being below 40 billen a World Report commented:
year while gross natiera! pro- duct is above 400 billion, but substatial portions of the rest of the budget are related to de- jence pretty closely.
"Mray matters are rowing weary el spending {U much money on arms, and are becom- Ing Increasingly anxious to cut that cust. In the US, for ex- ample, you see a strong move- ment in Congress to reduce the defence budget, there are signs, that fussia also is feeling the pinch."
Adjustment
"The present impoci also may be greater than 10 per cent in the industries most directly especially affected, including the metal and metal working Ilustrien, while it may be con siderably lens hun 10 per cent in consumer goods. Food mid Analysing the business reper- clothing must still be supplied bizame they of my reduction of to soldiers after cussions government spending en orma- civilians, but a eut in the pro- ment that may be achieved will rurement of Jet planes might not immediately be gradual,
reonomic be offset by any our
substitution
de- of system will have plenty of Ume available
adjus! lo them. And that mand...
Disarmament of any sabatout- such an adjustment ought to be quite easy is apparent from the tial amount would mean reduced
fact that the total defence effort¦ spending; the nation and Con-
HEAVY SELLING OF GILT-EDGED SHARES ON LONDON MARKET
London, June 2. Weekly markets;, chief victim of the stock market this past week, was British government stocks, heavily sold on Friday.
the
WEEK ON WALL STREET
By ELMER WALZER ·
New York, June 2. Stocks reached new highs for 1957 at the close of the first five months on the basis of the Standard & Poors indexes.
Both the Standard iudex of 425 industrials and its composite of 500 stocks closed the week on Friday at their highest levels since last Nov. 5.
That
HONGKONG
STOCK EXCHANGE
Our Own Correspondent Business done on the Hong- kong
this Stock Exchango morning amounted to approxi mately $500,000. Noon quota. tions and the morning's transac
tions;
Shares
BANKS
Buyere Soilers
Sales
COTTON FUTURES CLOSE ON LOWER
GROUND IN NY
By WILLIAM T. PLUNKETT
New York, June 2. Cotton futures this past week odged up to new seasonal highs, then reversed the trend to close on lower ground for the first
time in five weeks.
1835 1650 20€ 1040 At Friday's close the list ruled 10 to 22 points 7.45 7800 1.40-50 cents to 1.10 a bale-lower than the preceding
1.40
HKC Bank INSURANCES Union Wheelock DOCKS, ETC. K. Whart Dock Provident 1930 19.6 LAND. ETC. HK Hotel 18% 14.20 4500 HK Land..
But the blueat of the blue The Standard & Poors 500- chips which make up the Dow-stock Index closed at 47,43, up Jones averages did little Jess 0.70 paint on the week, than nothing at all The Dow works out to a gain of $3,300,- Jone composite of 65 stocks 000,000 in value of all listed 30 Industrials, 20 ralls and 15 shares and is only 2.29 points utluties closed with a los of or 10 billions under the record 4-100ths point, the sinollest high set last Aug 2.
since April 20, 1956 The market coded the Arst gress in their present mood change
Avo month of 1067 higher would insist on it. Lower taxes when it was the same.
During the With needs for would follow.
It was a dull holiday week, except for rails,
four days by Memorial month of May industrials were civilian guoda no longer urgent, cut to Extra money thus left ki the Day. Daily average sales rell up and utfitles were strong but C. Ligtit hands of the people would not to 2,160,112 shares, against ralis declined. Ulities are fat be spat. Some of it 2,335,807 shares in the previous ahead from a year ago and in- only
be saved, and at first week and practically the same-dustrials show a 25-point rie would sight, under come
It was but ralls are sharply lower. economiris 2,100,855-a year ago, teaching, the result might the smallest dally average total be regarded as foreshadowing since the week ending April reduced economic activity.
Need Now
new
་
18
INDUSTRIALS
Ercirle
[R)
.107
100
30 0345
18.50 10.00
145 150
1.470 1.574
week.
Technical repsons, and ad- ministration proposals to cul, or
discard, cotton price supports, RHODESIAN
300 er 33.7 plus diapponding quietness in
1375 140 1440 # 130
1.10 150 20000 1
(Rts) 13.20
23 1500 22.96
Maeng E... 10 10.20 Telephone INDUSTRIALS
00044 23
600.19.10
the dry goods trade, al
Com~
bined to put prices on the de-. the last half of a tensive Lix holiday-shortened week.
COPPER
Buoyancy reflected persistent RECOVERS
rides, floods and high winds over
a large area of the southwest, with the resultant increased fears of a seriously delayed crop 1000 419
"ön ke 13.50 | start in that area.
J
2500 6 2714
13 508 6 33
Humphreys Realty
AUBÓER
Amalg
TruNE
ngale
UTILITIES
Trom
Yaumati
22.00
103 10 18.00 10.10
30 3012
รา
Declining tendencies earlier in the week were attributed to the conditions, technical approach of the holiday and the fact that
prices had carried very high in sections.
STORES, ETC.
Dairy Waison
Lane, C.
14.TD 14.09 11.20 12 1000
28
Emporium
0.20
Kwong 6. 11. 181
been many
COTTONS
Textile
4.70
2000
Nanyang
MISCELLANEOUS Trading lightened on declines Ch. Ent.
INVESTMENTS Yinmetze factor
which heartened and pleked up on recoveries, a bullish elencart,
2.45
... 20.30
6.25 4.478
5,00
Prices of industrials fell shurply on Monday-widest "Ifowever, added savings are decline since Feb. 11, the day what the finencial the market made its 1957 lows. exnetly peris generally agree is needed Thoy dipped again on Tuesday. capital is and came back sharply-best now. Demand for exceeding the supply of
Thus savings.
disarmament gain since Feb. 15-on Wednes.
again day. They rone
a might have the consequence of
TING
in- Dow-Jones Friday. making it easier to borrow, In
closed the dustrial average this manner it might not
only work
at 504.93 up 0.01 point, cut kiterest rates but also Rails closed the week at 145.55 stimulate some capital spending of 0.31. Ulllilies were off 0.33 now being held back. If the at 74.3. houding industry is right in its current claims that lack of mortgage money is holding down construction of new homes, in- creased sayings would stimulate that activity."
All wishful thinking, perhaps, but it served, at least, to de- monstrate how far ahead the thinking of business mon ranges these days and how peace, ay well as wor, poses adjustment problems.
commentators appraisers
continued their at-
things to come this year.
Government economists inter- viewent by US, News and World predicted continually Report, ring business livity through
out the current year, with
Teaching 435 billions
VERY HIGH
Cement
Amoy Can
the Allied
The not changes meant little
the of
week clase at tho because of the wide fluctuations. example ranged Arada, for from a low of 132 to a high vi 140% and closed the week at 133 % up %.
US COTTON gained 2 points or more.
the the
GOODS REVIEW
gross product-total spending arby needs.
compared with 412.4 billions for 1956.
Weakness
ST
Seaboard Oil nelica 5% points and a long list of other olls The dru, led by Schering up and Norwich up 4 %, turned in
better much
weekly performance,
D
than 2 each in
Corning
chemicals.
and one
CUSHIONED
London, June 2: Sagging copper prices on the London metal cr. change stondied last week- end with the news from A private survey Indicating the Northern Rhodesia that smallest acreage this year in 19 the Rhodesian Selection years and lessening chances for 11.00 Cretment of any price support Trust, that country's big- producer, pession, rest
Posal would cut back produc. for a higher loen ravetion by 10 per cent from ' 4.70 this your was a contributing Juna 1.
EXPANSION IN OIL INDUSTRY
Folkestone, June 2. The oil industry will have to pour £40 billion into exploration, new wells and now tankers over
years to next ten Europe's needs, Olin spokesman said today,
the
the fill ди oil
210W
30
at this legislation cushioned the reactions. bilities
factor on the upside.
At mid-May, cotton,
farmers
copper
At the opening of the mariect
intended to plant only 14,110,000 inut Saturday the spot price in neres, a private survey discloset. London rose to £236 1/8 R
ton and three months This would be 18.1 per cent
quoted at £297 3/8. under last year.
would
While a smaller crop be indicated on that basis, the SURVEY WETKIsed this carmot be taken for granted since farmers are using much more fertiliser per ecru than last year and soll moisture conditions are greatly Improved.
War
The overnight report fırın. Salisbury, Rudesta, announced that the two main product.m centres of the R. S. T. group,
would be cut 10 per cent-about 10,000 tona enqually, This is barely one per cent of the world production but it indicates the determination of one of the With normal abandonment, seven major producers: of the statisticians figured the estimate world to bolster the falling price suggested a crop of 10,000,000 of the metal, bales, toood on the average Ave- year field, or up to 11,700,000 bales on the basis of last year's yield per acre.
CONFUSION
Mono confusion
inch potion,
and
ox
comTM
in London said that even with estimated production would
Increase Of Crude Oil
NO CUT BACK A spokesman for the Anglo- American STEELS
group
copper mining compares, which pro duces nearly half of Norther New York, June 2. Steals did practically nothing
Rhodesla's output, announced New business in cotton with U. S. Steel unchanged and
Bethlehem off 1⁄2 point.
developed simultaneously that his Meanwhile, Ananelu) analysts grey goods materialised at Mathieson and Eastman gained H, Cunliffe, General Manager over the outlook for farm-price panies did not plan any cut
and British | support legislation At of the Shell-Mex
this back and government less than a routine pace in more
The move by the Rhodesian Glass Petroleum Limited oll empire's semion. Some quarters believed
follows recent tempts to predict to shape of this holiday-shortened week. 20-point gainer last week-lost industrial fucks division, said the any changes which may be made Selection Trust
Sporadic buying spurts
3 points, Douglas was down British Government's estimates eventually would not become cut-backs by American pro- developed in a few
ducers, notably Philips, Dodge wide print on the week in the air-
of how much oil will be needed (effective before the 1039 crop. broadcloths and
Line numbers,
Atlantic CODEL crafts.
In ten years time may
Copper circles prove Agriculture Secretary Mrand Anaconda, waterproofing duck fabrics, but stood out in the rails with
"unduly modest,"
Benson expressed hopes Con- elsewhere buyers reverted to gain of 23% points. On Thursday a Conservative member of the
In order to achieve the pro-gress will give him power to set these cut backs it recent hand-to-mouth Of the 1,388 issues traded, House of Commons asked the Government what
lost and 130 spective expansion in world uit supports between zero and that world policy, covering for quick end 521 Fained 677
A support still exceed current consumption per cent of parity. held unchanged. There were output, the industry "probably
per cent of parity by about 150,000 tons annually. it proposed to do to protect the British public's
FAILURE
102 new highs for the year and will have to Invest over the neect floor at 60
ten years £40 billion In would be sailsfactory, although United Press, investments in government stocks. He noted that
120 new lowa
he preferred unlimited discretion. Mill agents expressed 15-
The mid-May parity price re- the decline thus far this year had been so heavy
The actives included seven oil exploration, new wells, appointment over failure of the
alterarts and dankern, new refineries and
mained of 37.08 cents à pound, buying boom of two weeks ago) issues, 2 each that great institutions, like Lloyds and
Statisticions cach in the on," he sait.
calculated that at to develop any follow-through.aleels,
PREPARED motor Church of England, had now switched part of
felt chemical, roll, glass and majority re- However. 1 The magazine, however,
"That can only be achieved by 27 per cent of parity, and allow- turnover Getty their investments from gilts to industrial shares.
Oil led in garded the government predie-customer inventories have been groups,
the oil companies retaining by ing 350 points premium over "reasonable
provided "excess worked down to a Likas
part of their middling ach cotton this year containing
for the greater level" and that they must come with General Dynamics second,
Jersey cummings and ploughing it back would be around 32.54 coats a The government's reply was of 3/9. Central Mining, the optimism," pointing out:
back to the market shortly for Olin Mathieson third, African controversial vague and fumbling. The City was Soulli
Standard fourth, and Bethlehem into the industry."
the National Cunliffe told gained 7/- apparently alarmed for Friday ngure,
A. and
"Weakness still persists in the new purchases.
Northern Pacific Industrial Predictions about when that Steel fifth. altuntion.
Federation of Ironmongers that which Herbert, saw héovy
the machine tool business
The was the lone rail to make the
"no economic catastrophe re- lowered Old Consols and War spretalists, led the whole sector production, on the whole, isn't will happen were varied
sulted from the Suez crisis be- rising... automobile sales are next couple of months will see active list-United Press. Loon by 10. shillings.
buyers roturn, some
cause the oil balustry was pre- selling, completely unexpected, In the foreign bond section rot yet showing any great in-the
1950. Appliance quarters feit. But others BCTEL
pared for t were strong
sales are lagging and appli- to think the change may come active, Dawes Loan
third makers
cutting "hear the end of the are ance assorted gained £2, the assented
A third colcrio felt Housing starts do quarter," production. £24.
Young Loan
non not provide any grounds for ex- a new buying movement could It could £11⁄2 and the the asserted rose wrongly.
pecting
upturn, any
Retail happen any time," the asserted nearly £3. In the trade, in the aggregate, is mot be triggered once consumers are suggested that
Japonese list Tokyo 5 percents showing much of a rise either, conviriced prices are far ahead at itself
rother
and Consumer spending, on the prevailing prices. some of the non-sented leaped £3 nonpluated by effects of its policy on monetary most of the other non-astenteds whole, continues to rise
Best showing in the print fabrica was made by the 45-inch
Washington, June 2 control" of
the country's rose 10/-United Press.
What's happening is that most 80 x 80 3.50 yard where buyers
The Tariff Commission recom- economy and was not yet ready
spot prices as of the gues in total spending pad higher
President now stem from government and supplies dwindled. The 40-inch mended today that
Import individual outlays.
130:00 3,65 yard broadcloth Eisenhower impose an
ceats a pound on firm foo of three relatively another number, but the basic 80-quare tung oil,
along with four-yard print, shootings, drills, twins and most industrial fabrics attracted a meagre buying interest.
"ROUTINE
selling
This with a rise of 10/9.
wiped out much of earlier in the week.
the gains Cermans
NONPLUSSED
Rightly reply
Kovernment
with
OT
was
suitable remedies.
This heavy foll leaves
the
on Friday
£ question mark over coming stock market week. Monday may sce the ROYCIN- ment stock broker buying
heavy.
Without that Friday the week would have setn
really 1
the
and
non-
AMERICAN STEEL MARKET
TURNED BETTER
crease
over
abcech, meny "For months signs indicate that business in and equip vestment in plant ment probably will not rise, and it may fall; government spend
will not rise so ing probably steepily; foreign trade balance is very likely to dip.
WTUS
3
Import Duty On Tung Oil
Tung oil currently is free of import duty,
that
the
The Commission found that in tung oil is being imported New York, June 2.
such quantities as to interfere encouraging recovery
The steel market took a slight
Yarn spinners eald business with the domestic price support buarket prices of the safest turn for
the better this past
was mostly routine with price
programme for tung nuts and Investment in the world. Even week with fewer order
can- "Ita difcult to see in there arm. Large-scale buying is tung oil. and some
after trendy how total spending congenerally expected until after the Friday selling War cellation or delays
70 recommended Loan closed with a net gain of improvement in the weak sheet climb as much as the govern- vacations, or around mid-July
three-cent fee be imposed in- think. Just as] when. 15 shilings compared with the and strip sectors, Iron Age said ment annlysts
manufacturers prepare definitely. The
President will previous week.
toxiny
likely is that the sidewise move-autumn ben. Most recent sales
take the recommendation under Another optimistic note, the ments now evident in produc- wero mado to tho knitting Leading industrials fluctuated
advisement-United Press. outerwear, steel trade pub-ion will develop, too, in total trade,
· underwear severely but closed with many authoritative
hoedory the spending."
and
manufacturer. moderate gains. The Financial lication maid, comes from
Fortune Magazine, however, Inculsating yarns were essier in Times index of industrial shares steel scrap trade where prices
willi closed last week at 202.9, fell have been firming consistently in commented: "It is now virtually line by Tuesday to 2004 and closed recent weeks and inventories in certain that the economic trend market. at 2032; it was presumably a better grades are being good week for swiftly moving up. professional operatora,
TOBACCOS
The magazine gald
built wi
the lower copper MEXICAN SUGAR
Burlap
PRODUCTION
Mexico City, June 2, Mexican sugar production has
of
pound
season.
against 32.74 cents this
Since the final loan rate will be determined on the July parity, May and June parity are followed with added interest. ----United Press.
changes
Price Wanted
Washington, June 2. The Independent Petroleum al America bust Association week-end called ton a 4-cent-am barrel increase in crude oil pricas in the wake of a # per bent wage raise being granted
oil lie in the The Bank Of England generally in the oil industry,
He pointed out that sevanI – Leaths of the free world's proven riccives of crude Middio East. "For that reason the Middle East must remain the major supply source for Britain's and Europe's oil for many yearS to come," he said,
Statement
Sterting 1,953,571,170
London, June 2. Bank of England statement Curtliffe said the oil com- for the week ended May 20% panits were giving "anxious at reads as follows: tention" to the question of tran-
He Notes in elreutation"... sporting Middle East ott
Public deposite said a proposed pipeline system Private deposits
70 million Govermanent securities to transport some tors a year of crude oil to the Other securities
Receipts Moditerranean seaboard would not replace "supplement and the full use of existing transport facilities."United PressD,
U.S. RAW COTTON
EXPORTS
The present average US. wholesale price is $3.17.
"Costs of producing oll, just Like costs in other businesses, can nat continue to go up while prices
Robert L. -President,
unchangok,"
remain
Wood Association srid. The IPAA TÓ-
10153,171 presents 12,000 domestic oil and $10.710,651 natural gas producers.
CONTRACTS
224,101,810
39.500 901 24,104,726
**United Press.
The all, chemical, emt atomic [85] workers union is currently sign-.
Ing contracts under which its 100,000 fold and refinery, work- )
The Bank Of Franceers are receiving an 18-cent-at-
Statement
Paris, June 2. New York, June 2.
The Bank of Frapor statement Raw cotton exports by for the wock
onded May 23, destination as reported in bales by the New York Cotton Ex-Foods as follows change for the 1907-18 season to May 28 were as follows:
Oricht
BCL638 3,300,430 363.675
·8,390,873 Samo period Isst year 1,727,AL
Britpl
Continent
Саляфа
Total for DESBON"
* excluding inters
United Press.
980,990 tons, the National Exchange Rates
Hard futures ruled quiet and be gently upward fór at
unchanged. lenat the rest of the year." And mostly scrap that the Wall Street Journal, armncre reflected strength in people are thinking in terms o niter polling 70 economists, raw, jube and conoten over the a late summer or autumn upturn bankore Hdustrialists and gov-need of rain in the jute-growing readied on all-time high in steal demand,
exxienst pulgas reported: The areas of India and Pakistan, Tobaccos Wote wealt with
Iron Age sold demand for nation's economy in the months In nw 'wool, Boston accounts Union of Su Prochicers an
expected noubrod last wock. British-American down 3/0 and automotive and appliances con-ahead is apt to stay or as even said the trade there
anonical Bald.40 mills) A spokesmNIA. ott a highs 2/-innen to leg. down Imperial
nearly
keel with no timurantic changes prica “tas rochadza Nuclear power remained in But some comfort
is being in either direction. The most fovel, even though, marne "ecom will connue operations during favour with C. A. Parsons saindiawn from the fact that steekikely prospect, there's any colons have been made and a most of June, and output is I continued to sell expected to be increased by Royralle 2/3. } prodization, in bolding up fairly change at all, hi that the pace fawxbet Ing. 1/9 and
up." goods at the old price level-some 20,000 to 30,000 aditional Unilever
excepitorially well without large orders from of business will speed Was
Uzalbenă Prem
190 United Frum. strong with galna over the week these big usem.-Unlied Press. United Prom.
Total gold holdinga Total other currencies Bight belanos abroad
IN EPU A
Advance to Stabilisa-
tlon
hour package wage incroise.
Ultimately more than 300,000 workers will benefit.
The IPAA spearheaded a suc- t cessful drive for increased crude priota hat year after the oil
workers won a 17-cent amy hotm France
raino. Crüde price booste ranged 301,204,302,428 from 20 to 36 centa a bizneă. 15,75.000.000 Changes of collusive, action to d 11,771,000,000 prices subiscquently were wired
in Congress.
で
Wood,auid in a statement that Total bills discounted 1,336,978,000,000 the current wage incresse w
Bank notes in. Cirau-
******** 3,000,200,000,000] Cast (où und natural gas pros CÜFTEDE BERDunia and
deposita
30 ABS 200,000 ducere - #100,000,000 £ YouT -United) Prosa,
Unted Pross
KARACHI TEA
THE
EXPORT
Karacht; Juna Z. Government today Fit allocated 30,000,000 pounds
tem for export during the period of April 1987, to March 11,
1988-Unliad Prosa,
But was done in the 390nd ints charge
U.S. dolis iper (1) motor at the following reles sterling note (per 41 Australian poems (por &15 indonesian rupiah (per 100) 22 REM dicat tree 100) Singapore (fitrails)
·NAMESAKES
Acewers: 3 Dutser 2 Captab 3. Trafford, 4 Headingley, & Re- Oval, 7. Bating, mo corda, G Ashes, 9 Lorda, 10 Boundaries, sitting, 12 Ground. 13 Test, 14 Autralia, in: Yorzatalyt Pavilion.
St Leonard Hatton.