Page
·
THE CHINA MAIL, WEDNESDAY, JUNE 19, 1957,
TRADE and COMMERCE SECTION
DEFLATION LOOMS IN EUROPE MODEST DROP
Immediate Dangers Of Some Disintegration Of European Trade
By SYDNEY S. CAMPELL
London, June 18,
HONGKONG
STOCK EXCHANGE
Our Own Correspondent Business done on the Hong
kong Stock Exchange this morn ing amounted to $374,000. Noon
quotations und the morning's
trampelions:
Bharts
BANKS
Buyers Sellers
For the next few months, businessmen and investors throughout the world might do well to tread warily. Immediate dangers of some disintegration of European trade and even of Bank... some deflation loom larger than the longer prospect of booms in capital goods and consumer durables or the still more distant prospect of the Common Market and Free Trade Area.
It is becoming a commonplace that these freer trading arrange- ments might not work without a readjustinent or unpegging of European exchange rates; there is a serious question whether they could work with those devices either.
As the D-mark is the crux of peoples have bigger
resources,
sunie have As all peoplen glimmering of the dangers for
the mankind, there are hopes in several years that the cold war may be on His way out or at least that the arms race is going to stacker.
INSURANCES Unloa Lawnbard
SHIPPING Wheelock
DOCKS, ETC. Bock provide
K. Whart
LAND, ETC.
ILK Motel
Small straws in the wind ore
on com sumption, and Britain's tighter- - Amalg Ing of consumer credit,
the foreign exchanges, the prob- but even less stomach for cold) Denmark's restrictions lem is highlighted by the urgent | wom warning of the German Minister for Economic Affain, Dr Erhard, that the Western countries must "very soon" choose between in Legration by realistic exchange rates and disintegration by main- taining the present unrealistie rigid parities which he bluntly describes as "the false standards and false weights we use in our trading exchanger."
Ar between the D-mark and the French franc, the present parily, so far from being sacĻU- sanct, has plainly become in- tolerabic. But the problem not conûned to those countries.
Variations
is two
Readjustment
The down-payment best
and motorcycles in Britain. raised from a fifth to a third.
the down-payment white plant and machinery and goods vehicles is cut from half to a third. This could be represented as a mesure of uni- formity, and as a partial with drawal, now that the crisis la over, one crisis ald given cars and motorcycles
The smallest of the current readjustment, the post-Suez re- vamping of oll routes, may be quite serious in itself. London | cember. speculators blithely buy out-of- the-way oil shures, on the basis that ignorance in bli, while oll's near-term uncertainties are measured by a violent stump in tunker freights and a lesson
Lightness even in oil ing of pipe and the all industry's other steel requirements,
Since the devaluations of 1940 the European countries, by force
Looking beyond this tempor- of their political und economie
had widery readjustment phase, the oll circumstances, have variations in their relative cozis į Industry still frees a colossal in-
ویا
without any adjustment
vestment programme. what- rates.
According their exchange ever in
the OFE Present exchange rates are thus Europe requires all the invest-
ment that it can contrive out of line with the present real
to and values of the various currencies, anance,
also has very let alone the revolutionary dynamic prospecte for ears and changes that European free other consumer durables,
other International body serious- trade would eventually entail.
The superficial view in many ly propounds that, with rising Europtan capitals
real wages and the economies of is that the Cominon Market has outrun and standardisation and the smaller outmanoeuvred Britain's pro-size European cars. Western
дить
So there is no occasion to fear
the longer prospect; it may well
posal for a Freo Trade Aren, in Europe is now within striking- a way which enables the Com- | distance of the United States in mon Market countries to exne! market potentialities for ears!
The concessions from Britain. reality beneath this surface is that, until something is done about the D-mark and the franc, the only operative parts of the Common Market treaty arc likely to be ts escape clauses, If the foreign-exchange rend Justment could be confined to those two currencies, it would
1040
901
Sales
7.75 7.80 1800 6
COTTON FUTURES
TURN DULL IN NEW YORK
New York, June 18. Cotton futures today turned dull and reac. tionary after a small opening advance lifted most deliveries to seasonal highs.
Initial gains up to 55 cents a bale were covered into good-sized net losses.
Closing around the day's lowest the list ruled unchanged to off 14 points. The market opened off 1 to up 8 points, New Orleans
closed off 10 to 15 points.
Traders found ittle in the, 3,80 | newa to account for the reverse 7.15 action,
Opinion concensus ac- cepted it as a technical correc tion after three days of rising
107 109 13.30 13.46 320 M 13.30pricon,
(R) 10.00 11.20
+
Hedging
Selling in forward deliverles also was ascribed to hedging around the 33 cent level, which
experts figured might the government
23.10 23.30 100 2 23.30 approximate
1000 23.30
Electric Мисло К 10.20 101 Telephone 25.50 20.00 4400 @ 20.30 INDUSTRIALS cement Hope STORES, ETC. Dulry W4taon
WORLD RUBBER MARKETS
New York, June 18. Fax. rubber futures today, closed changed to 20 points lower with sales of 52 contracts.
November
31.73 ....31.53
WITNESSED ON WALL STREET
New York, June 18.
Stocks turned in their first decline in a week-
a modest drop featured by weakness in copper shares and losses of a point or so in selected motors, oils, aircrafts and steels.
The pluwure was brightened by Firestone Tyre & Rubber
good list of wide-moving Ford Motos
specialties.
General Fierirke
Orneral Foots
General Motors
Gon. Può, Um.
O
Glidden Co
Activity picked up slightly- to 2,140,000 shares from 2,220,- 000 on Monday--but New York's Goodrich 19. 7. Co. extreme heat and the lack of Goodyear Tyc any real market news dampen- ed trading interest,
Leading
groups
ali
Gulf on
Heyden Newport Corp. Homesteks Mining Co. Instersoll-Rand
were and Steel Co
Interchemiesi Corp.
Jower on average, Industrials mt1 Businem Bachure dipped 1.87 points to $11.82: Int'l Tarvester... rails .91 at 148,51; utilities 54 Internatjana) Nickel to 12.58 and the coppers reflect. International Paper ed softening
thu prices for metal abroad.
Steel prices were mostly
easy, Olls were mixed,
Of 1,163 rues traded, were lower, 228 higher,
unchanged with 95 new
686
John-Manville Co
Kannecott Copper Liggett Meyara Tob, Co. Lockheed Aircraft new Incorp..... Lone Star Cement Co.
Aircraft Block Exge.) 229 Mosab Iron Corp.
Minnesota M lows
bond Motorola Inc.
Stock Exchange
Dow Jones closing averages
30 festiustriAIR
20 rolls
HH Land
July
53.00
Humphreys
September
32.0$
1815
November
12.40
itenity HUBBER
1.23
January
$2.10
Marol
11.04
set and 40 new highs.
1.52% 1475
May
31.70
Trust
1.40 1,455 1000 si 1.425
on cars 18
UTILITIES TERIT
Juby
31.65
NY
Stock Exchange
Yaumall
07
30 30%
on
A5 326 323
500
103 104 130 104 Joan rate if the parity base is C. Ligt 18.00 10.30 2000 or 1000 Increased to around 83 per cent
13 13.10 1000 13 I(M)
of parity. Secretary Benson has
the rate will be indicated creased from the current 32.75 of 77 per cent of parity.
Standard contract closed un-volume was $6,120,000. changed to 20 points lower with no sales reported:
American
July
33.00
volume was 900,000 shares,
September
32.60
in-
32.10
January
74.10
rate
March
31.00
were:
Mog
14.70 140
to
Lost De
Lane, C. Fanportuni
XD
Nearby July held relatively 200 14.80 stearly around 35.32
25 14.70 with spot
offerings were ... 11.00 11.09 1740 11.00 2004 11.80 50 or 11.10
July
cents,
The market corlier umefilement
sicadled · after
15 Butter
on local
46 stocks
31
Kwang 8. K.
COTTONS
Textile
4.85 4.30 8.10 3.15
23.10
15.50
1.30 6.40
4.0712
10.30
Nanyang MISCELLANEOUS new
Ch. Et.
Though the restraint on cars comes at an awkward seasonal has time, their recent revival been more than seasonal and can
the probably override handicap. Nevertheless, the need
Vibro INVESTMENTS to restrain consumer goods for
Yangtane the culte of exports and capital
Alca goods is none too popular.- UK & FE”
Invest. China Mall Special,
UNCERTAIN
DAY IN LONDON
London, June 18. Stock markets had an.
into buyers the
now
un-
available above the point. First covering and dealer buying,
the
notice day for July will be on which pointed up reports an Jurse 24. The open position today in the spot market.
improved dornand· frown factories totalled 89,300 bales and
Most of the business was done in the certificated stock 10,056 bales.
Uime forenoon, or during the The government weekly crop London was open. 200 8.20 summary
ಯ
prospects i7-
It The
stuipment market proved in the main belt during
several hundred tone were | the week with mostly fair hot reported done including one weather, which stimulated de sheets at 32 cents; two sheets velopment and checked Insects, 31% and three sheets at 31
weevils. Texas centa, alt July/August, cost and espectally boll reported
farmers rushed rain freight. Spot No. 1 Res was delayed planting and cultivating quoted at 33 cents. The first bale of the reason was
New York Sugar inna in the lower Rio Grande
Market
New York, June 18. World No
futures 4 sugar einsed today 9 points higher to 3 points lower with sales of 477 contracts.
Domestic. No Sugar futures to 2 points closed unchanged higher with sales of 122 con- tynets.
Firmness in raws and trade buying orders shaped market sentiment in both contracts,
In world
raw Pakistan was the accredited buyer of 13,000 of Cuban refined, June/
be good and it might be magnl-other reluctant and ficent, But meanwhile the United certain day. Buying for States has
account seemed markets of several types of steel and of nearly all the base very modest and highly metals, which are the founda-selective. tion of capital goods and con- sumer durables, while the pre- sent boom is in cocoa which, only British Govertuments, mostly in August shipment, and 10,000
de small blocks, which dominated tons from other sources,
the market until just before the close when fresh buying came in, cutting the day's per to 1/10.
a few weeks ago, wos SD pressed that a mere demonstra- tion that it could rally was re- garded rather askaner,
Business
This kind
One factor was the selling of Lons
which traders presumed was Argen-
in.
still be a major one. It would add to the other major readjust- ments arising from the aftermath of the world investment boom
Damesile futures reflected the and the Suez crisis und the in-
advance ception of world disarmament.
In raws and expocta- tions for n broadening demand The new prospect of an end to the cold war le a wonderful
the current spell offelal report The
from for retined
hot weather Increases thing in itself:
peace is the
Washington indicating that the of of market be- probable supply of paper foundation of prosperly. But it
and beverage consumption, would untall
haviour is sufficient ground for nuwsprint for 1857 was running some serious
rend-keeping a flexible and open mind too for ahead of grobable de economic and Industrial
for the short run, however con- justments, as both London and
mand caused some more selling July Wall Street
are beginning to fident one may be of the long of Bowaters which felt 1 shilling September
Business in the US has elood pence to 71 shilings & pence, reolise, and they would hardly
up well to the disappointments just & pence bo confined to aircraft shares.
above the 1957 ii cars, housing, steel and inven- torier. All these sectors, and business us a whole, may do better later this year, particular- ly when the new car models
Wall Street
After the disarmament moves Wall Street did not Jave 3 come along in the fourth quar
for one:
by Germany which has beat by having the smallest de-
low.
0.10-17
valley on Friday.
SINGAPORE
The market opened lower on Volume Open interest | Overseas advices and steadied slightly during morning on fair buying.
30,300 4,000 11,400 115,100 12,900
215,900 8,300 133,300 7,100 120,000 10,200
10.200
70,700
32.000
1,300 E100
Higher lovel buyers dropped out and the market ensed back to opening level. Futures: No. 1 rubber per 1b. July 934-94 Aug. 24-94
40 bout
Comm, future price index..
Closing Prices
Alden Inc. Acs.
Alled Chemicala
Allied Mille · Inc. Allis Chalmer American Airline
American Cable & Hado
Corp....... American Cyenamide Co. American Can Amer. & Foren. Power Am. Gas & Electric Am. Mach. & F'dry American Metal American Selling Am. Super
American The.
Tel
American Tob. "B" Araconda Copper Armen Steel Armour
Miss Con Mining Baldwin-Lima-Ham. Eallimore & Ohlo Beneficial Finance Bendix Aviation Corp. No. 2 rubber per is. July Bethoces Steel
Benguet Cons No. No. 4
Menth July October December March
biny July October
December
Total
rubber unhaled
No. 1 pale crepe
34.69
12,700 foz,100 Dales
NEW YORK
Prices of cotton futures closed repe today as follows:
Spol July
October
December
March
May
July
Ocluber
December
NEW ORLEANS
24.63
881-19
93-031
• 8424-801 100-12 LONDON The rubber market was quietly steady with spot lower at
54.478
27% pence per ib. Prices: No. 1 u apot
** 4.38-40 Settlement house termi
2734-27
July
33
ZT27)
225-2791
September
27927
271-27
273 274
2714-21
Prices of cotion futures closed Today as follows:
Root July October December March
May July October December
LIVERPOOL
Cotion
34.01
34.70
34.74
future closings, in pence per lb. were as follows:
July/Au
Contract No. 4 (world)
Old contract BJ6
Delober
0.10
July/Aug.
Oct//lov
March May July September
4.91
Dec/Jan.
4.38
4.37
Mar/Apr
4.54
„May/June
STRONG SPOT
Spot (cents per lb, fob Cuba: 8.15 Open Interest: 1,687 contracts,
[New contract
Oct/No
Unilever, A strong spot wan
3. pence while up 2 shillingn Unilever NV gained 1 shilling
Contract No. 0 (domestic)
Dee/Jan.
Mar/Apt.
May/June
July September November March September
ex-culy Open interest: 7.85 contracts- United Press.
0.02
0.00
6.99
4.00
0.76
"peace scare" on May 27 und | ter, there is no occasion
Meanwhile, US political si- pence, aver a period, economie prosper-
the titudes to imports of ell, wool- By docs not depend on
Oils returned to popularity Spot centu per ib. cit NY arms race as it again illustrated lens, lead and zinc, and also to
with the conspicuous exception foreign aid payments done
though
but Royal they should not be exaggerated for Anglo-Egyptian "B" which gained shillings 3 pitious in paychology,
pence, British Petroleum Moreover the National Asso- shillings 9 penos and Shell temporarily awkward readjust elation of Purchasing Agents re- ahlling 0 paner.
porla that new orders are below Many countries-notably Bri- expectations, and that the pres-
Only feature in foreign bonds tain, Japan, France and India-sure remains to cut inventories was the demand for Potash non- allowed their investment booms because money
which galoed to outtum their resources and materials are
rates are high, assenteds readily available sterling whtie Young Loan non- are having to draw in their and some production schedules assenteds gained 4 sterling.
fence spending. But Wall Street in dollar terms are not very pro-tumbled & shillings
Dutch
did have a shake-out on that day, and it looked like a sign of a
ment,
korte.
This applies most of all to tho Bartern countries where Moscow's new conciliatory tone in international affairs seems to have the strongest
motives.
are uncertain.
Liberties
►
economie With some couruge
1
In-
Grock stabilization Loan proved a sterling. But Chinese and Japanese were unchanged. -United Press.
LONDON METAL
PRICES
in these conditions, Washington dy defer- There is much evidence Thnt ring reflationary measures of tax Stalinist over-investment and cuts or dusler money until there the anha ruce have created ap- eloarer economie or political patiale economic
Thus, for the overstrain need for them.
London, June 18, which the East would like to moment at least, the US s Prices of metala closed today raileve by Western co-operation more of a deflationary than an in
sterling per long ton as and credits if obtainable at any inflationary influence,
follows: tolerable political price. This is As Japan has also beets Im-
poem pelled to swing over to mone- T what the Soviet leaders to be anying, and it la probably tacy deflation, And as Germany the kay to their policy.
The Eastern pooples
3-month
is chronically there, these three | Copper apot have major exporting countries aro Land 10 neither the resources nor appar | rof leaving those competitors any ently the desire to sit the pace scope
in the arms race, The Western | Abortion,
10 rad
for taking inflationary line and
Buyers Bell@ra
Singapore
Stock Market
Bingapore, July 19,
SAO PAULO
Cotton future closings,
24.01 24.83
20.40
Augant
July/September
October/December
January/March
April/Juneworden 271 272 General markets, cif basis, ports:
*June, July and August 2736-273% Estate arepe thin
2014-20
thick Jug, az M AMSTERDAM
The rubber maritet was dull, Prices closed in guliders per
Boeing Airplane Borden (Tiel Co. Burroughs Add Machine Campbell Soup Co. Canadian Paciffe
Chase (33) Co.
Cat. Tractor
Celairse Corp.
C.1.T. Financial Corp Chase Manhat, Bank Chrysler Motors Climax Molybdenum
Colgate-Palmolive Co. Colombian Carbon Co. Commercial Credit Commonwealth Bloc. Consolidated Edison Continental Oil of Del. Crown Zellerbach Cuban Amer. Bugar Diamond Alkali Douglas Atrorait
Dow Chemicals
Dupont de Nemours
Eastern Airline
Bastman Koday
kilogram, clf July as follows: El Paso National Gas
No. 1 rubber
No. 2 rubber
No. 3 rubber
No.
1 craps
2.04 nom. Family Finance Corp.
2,64 nom.
2,01 nom,
185 nom.
United Press.
611.3
140.01
72.88
194.03
Minion Development Monsanto Chemical Co. Montgomery Ward
National Cash Reg.* National Entry Prod National Lend National Bleel Corp. New York Central Olin Mathieson Oils Flevators Owen-linols Glam Pacific Gas & Elec. Pan American Airways Paramount Pictures
Parke Davis Co.
Penny J. C. Co.
Penn. Salt Co.
07.01 Philip Morris
157.74 Frocter & Gamble Ca. Paburgh Pie Glass Putzicker Industries
Pure Oil
Radio Corporation
Republic Steel Reynator Meist Royal Dutch
17% Bears, Boebuck & Co. BIGANT O Co..... F'aper
Dinclair
1914 Becony Mobiloil
Bolt Aircraft
53% | South Puerto Rico Bugar
4/1
0
Southern Co. (The)
Southern National Cas
15 Boulhem Ballway (Com.)
31 Macord Brands
38
21
Standard Oil of Cal.
Standard Olt of Ind.
P) Standard 00 of NJ.
80p Hook (Toronto Exge.) 37044 | Sterling Trove Co.
Stokely-Van Camp. Studebaker-Packard Corp. Text Co...
05
01
19
59k } Tode Water As, O│I
Twenty Century Fon riim 134 Union Carbide
Union Parle Radway 196 United Alrerast 0915 United Gos Corp.
Us. Foil "D"
40%
.. Gygsum UB. Le Co.
US. Rubber
11% 15. Smelting
33
US. Bleel....
331xd Warner Bros
18
13T6
Westinghouse Pectric Western Union Tel, Co. West Va. Pulp & Paper Woolworth
-United Press.
NAMESAKES
Answers:-1 Jost, 2 Radio, 3 Programmes, 4 Pantomine, G Bonticy, Theatre. 7 Amiitor lum, & WH, 9 Patter, 10 Partner, 11 Dislogue, 12 Jokes,
Jimmy Edwards,
New York Foreign
Exchange
New York, June 18.
Closing rates were:
Canada
England official
Australia
30-days
50-day
2.70-1/19
TEACHERS
a MUST for your bookshelf
THE
GUINNESS BOOK OF RECORDS
M
in
New Zealand
Argentina
cruzeiros per kilo were as fol- lows:
December
March Kay
41.40
Beuth Africa
Chillo
4140 Colombia
41.30
India
Others uncturnged.
In the US the average price | Pakistan of one-inch cotton at 14 de- signated spot markets was un- available. Sales totalled 51,104 bales.
KARACHI
The market marked by irre- Brokers today quoted the fol- gular fluctuations today," Prices lowing stock prices:
closed in rupees per minund sa
Datu antang Rubber Co. Opening follows:
British Borneo Petroleum
Byndicato
Consolidated
Ord.
$2.06
2 Tin Streiten.
.... 30 t Frorer & Neave Lid Ord. 3.35 Fraser Neave 335 cum.
pret Caimiona (Malaya). Lunited 31.10 Hongkong Shanghai Bank-
In Corp. and
Hongkong Tin Ltd.
Kuala Kamper in
| Kumpa luta,
Lunes inibbar Katates Ltd. Malayan Breweries.... New Berandah Rubber Ca
Ind.
Petaling Tin Ltd.
Ranben Hotel
Singapore Cold Storage
Htrails Trading
United Engineers Ord.
10%. Waarne Bros,
• cumdiv; } sadly, -- Chinm Special
de 101%
47 Bind roller gin, 200 But roller" gis
Jaw gin 100 Punjab roller gin
2.1855 72342
STORL
10017
United Press.
London Foreign
Exchange
London, June 18.
Closing rates were:
New York ontreal Amsterdam
Copenhagen
7.196/18-2.7096 2.40 10/10-20 s/ic $0.0434-10.0474
140.45-140.40%
*77/0
11/14
sw KingKUKKAKA.
United Press.
MISED Parke Stockholt
14.8493-1444}
Zurich
3122-13={LT
Others
achanged. --United Prom,
NEW YORK METAL FUTURES
New York, June 18.
17401798)
Prices of metal futures closed Exchange Rates
Today it rents per, ib. as follows:
Lead
Jupe
July
Kino Judo
| Copper June
Tin
Business,, van, door : in She local snofficial exchange. markort.
125-18, doliae (per #1) |
Ausisadany notas ¿per &15 VM!! Trytonning explats com 100) slam, tioul (pés, 100)
enables you to dhiwai yaai pupils' questions
Obtainable, only at SOUTH CHINA MORNING POST LTD. HONGKONG & KOWLOON $9.50