Page
THE CHINA MAIL, TUESDAY, JULY 9, 1957.
Page
.
TRADE and COMMERCE SECTION
INFLATION GETTING ON TOP
Farewell To Macmillan's Price Plateau
From RONALD BOXALL
London, July 8.
WORLD AIRCRAFTS LIFT HONGKONG
RUBBER
MARKETS
K today 20
New York, July Tubber contract closed
to 49 points higner with sales of 80 contruels.
July
September
November
January
Mar
May
July
The lantas
Trying to suppress inflation without doing
ernet closed serious damage to a nation's standard of living is 20 to 40 pouts higher with no like trying to sink a balloon without bursting it. You can hold it under with the gentle pressure of one hand but the moment you let go it bobs to the surface.
The Government found this out when it decided to restrict demand for motor cars. It raised minimum deposit on hire-purchase transac tions from one-third to a half. Sales fell and so did car production.
-r
Thon so as not to do possible | of the Government. It was tie Permanent hun to the whistry Con crvative Daily Mail in a
at the time of the Suez affair nwog of high indignation. the Govermat reduced hire- panchere deposits to one-Bfth.
What happened next is des sribed the Treasury's mid-
review of
Ct.taati
year
"Passenger car output with hire purchase deposit at 20 per cent started to rise in February rod by May reached the highest level yet at four per cent above the relatively good figures May 1955."
Final Chapter
آدا
this
The final chapter of cautionary tale: bire-purchase depe ils are Lave oguli fixed at one-third.
Now the balloon of inflation it resisting the gentle restraining hand at other points.
What To Do?
"truth" it went on, " that the Western world frrespec five of governments and partica
caught up in inflation fus; as if was caught up in unemploy body knows who to do about mert between the wars and ne-
J"
The real truth is even more painful. Everybody the Gay- ernment, the Daily Mail and the leaders of Soviet Russia knows jn[ hre to stop in- flation. You simply stick a pla in the balloons,
But that of course is out of the question. So the British Government will take the Daily lil's advice and do everything
July
32.60
32.43 32.23 32.10
31.80 31.54
PRICES ON
WALL STREET
New York, July 8.
Stocks made further progress towards new ground today under leadership of aircraft, chemi- cal drug and selected special issues.
STOCK EXCHANGE
Our Own Correspondent Business done on the Hong- kong Stock Exchange this
morning amounted to approxi-
COTTON FUTURES
FLUCTUATE
ON DOWNSIDE
New York, July 8.
Cotton futures fluctuated widely on the down- side today following issuance of a higher than expected government report on cotton acreage, Trading was moderately active.
At the clore the list ruled October
December
Marcla May
to 18 points lower. The mar ket opened 2 to 14 points lower, New Orleans closed five points July lower.
34.13
74.91
24.63
34.00
October December
NEW ORLEANS
Prices of cotton futures closed
Prices lost as much as 46 points-$2.30 balo-in the distant July contract immediate- ly after The report attracting today as follows: shor!
jor covering and commission Spot Juty house buylag which recovered Faler
more than half the losses,
mately $138,000. Noon quota- tions and the morning's transse-
one:
Shatos
Buyers Seller
**
roles reported,
July
Profit-taking reduced prices from their best September November.
levels in issues which had been strong all day. March
However a last minute rush in aircrafts lifted 1770 May
prices in that group and increased trading to a A holiday in Singapore and Indoncala kept efterhes pace which put reporting tickers alightly behind small and brought firmness into at the close. up slightly, Spor No. 1 Rss was futurks. Factory interest picked quoted at 33 cents pound.
LONDON
The rubber merke: way steady with spot quoted at 27% perce per 16. Prices:
Net. Tas LL!
Settlement House tenn
Aug
Beptember
Dctober/December January/March
April/June
27-27)
27-27 27-2755 27-271 27-2712 17-27
203-27 20-27 2014-27
307%
Cencant markets, elf busts, porte
Juty
August September Engie rege thin July thick Att
AMSTERDAM
The rubber market was qulet. Prices elesed in guilders per kilogram, cif July as follows:
No rubber No. 2 rubber Nu. Tubber Note:>
..:
2.02 HotA. 2.60 pom. 2M buyer's 2.77 buyers -Usited Prest.
in their power to keep inflation New York Sugar
under control.
The trouble with this is that every once in a while you must
Following the 5.2 per conf in- in miners wages last March the nationalised coal in- austry is ruiting coal prices cight per
rent from this mouth und the noticealised railways the balloon rise to the sure, are putting up their Treight face while you take a new grip on --Landon Express Ser- charge by ten per cent from next month,
vice,
Industries which use coal st the railways (which is nearly all of them) ure making ominous
golea about higher production
casts and their inevitable effect
in retail prices.
US COTTON
They are also remembering PRODUCTION
that the last time evul went up
the price of steel was increase.
But even before the cycle is
completed a tw
ene seems to
be wlading up. Fer this week)
the Miners' Union decided to
ESTIMATE
Washington, July 8.
Market
New York, July 8. World No. 4 sugar futures closed today unchanged to four points higher with rales of 482 contracts.
i
Eastern Airline Eastman Kodak
Aircrafty moved up as Rursin rejected the new Western pro E Pass National Ga posal for a 10-manth, suspensiora, Family Finance Corp. of nuclear tests.
Volume TOSC to 2,401,000 shares, 600,000 ahead of Friday And heaviest since June ii. Bear covering added to volume in some issues.
Industrials closed with a net gain of 1.52 points to 518.4%, their best average ince last Aug. 0, and within 3 points of the 71.71 and the numerous
General Electric
General Foods
General Motora
Gen. Pub, Util. Getty Oil
Glidden Co.
Goodrich (B. F. Co. Goodyear Tyre
Cult CH
Hesden Newport Corp. Koiranke Mining Co. Jagersoll-ared
and Steel Co. Interchentesi Corp.
Int'l Biminers Machines Int invester Dus International Nickel
International Paper
424 10
Int'l Tel & Tel
Kanne C. Power & Light
wide gains in special lesu Addrescograph-Muligraph un Jean-Manville Co. 11% to 100%: Mërganikoler Linotype, up Th to 02%; Kennecsti Copper Freeport Sulphur, up
Liggett Meyers Tali, Cu, 115: Minnesota Mining, up Loews Incorp.
Lockheed Aerat
to 90%: Minneapolla" Honey-Lone Star Cement Co.
Lowenstein & Sons. weight, up 11% to $130%.
Merabi Ion Corp. Mermanto Chemical Montgomery Ward Motorola Inc, Notional Carti Neg. National Dairy Prod. National Lead
Highlight
Olin Mathieson was a high- light with K gain of 4 $50% on turnover topped only Ly Sperry Rund which climbed a point on the day. Allied Chemical rose nearly 2 and US Borax gained 4 points.
Aircraft leaders included United, Geral Dynamies and Douglas, all up close to 2 points.
In drugs, Merek wus setter with a Fire of more than 2 In Its common nearly 5 in the convertible preferred.
pice-
Gning of around a polut ap-
Quneslic No. 6 sugar futures closed unchanged to five points lower with sales of $4 contracts. peared in Shell, Getty and
Would futures moved up Soocny Mobil la the oils. slightly
on some small routine
All the trading in do- Lukens, interest. mestic futures was confined to up almost
10 the September
stecis. delivery which
flected uncertainty in the do- mestic raw market as to the effect of the latest sugar quota increase on prices.
submit an immediate claim for The Agriculture Depart-fell 5 points. The cusiness re
action to their
shorter working hours and toment today reported farm. take "any Eecessary
ers had 14,224,000 acres of proteol and improve"
coiton standard of living.
in cultivation in July 1, down 15 per from last year.
Imports Rising
cent
The Department is forbidden
These are net the only rigsby law to make a cotton produc- that infiction is once again getting tien estimate until August, Bul on top. Industrial produelles is yields average 400 10 of Un at last on the upgrade after two to the arte, farmers would har- years of virtual standstill. But
vest 11,379,200 bales crop this imperts are rising as industry's year on that acreage, demand for raw material grows with the result that the trade "cp" is opening again.
At home the demand
Last your farmers produced 13,310,000 boles from 16,833,000 Iseres in cultivation July 1, 1950.
expanding and Investment re- mális on a high level,
Higher production is the classical remedy for Inflation bul
Yields lost year averaged 409 pounds 2 acre. Ten-year aver- age yields were 233 pounds an
On an average July 1:
acre
in the present case it seems more rage of 22.743,000 acres." likely at any rate at first-to
The acreage Allotment for give a further upward push to cotton this year is prices,
One
17,585,403
Octolzer January March blay July
Contract No. 4 (world) September
5.05
1.04
4.03
4.50
4,47
September October
4.47
4.50
Spot-cents per 30. Cou
Cuba)
6.00
Contract No. 6 (domestic)
September
0.08
November
B.05
5.28
September
G.20
Spot-Jegnts per lb. cf NY
ex-duty)
0.00
Open ____ inferent: 2,300
contracts.
March
United Press,
urres, in increase of 104,159 London Foreign
reason we have stayed werds over the 1956 verlage. The
on Mr Macmillan's famous price ollement system is a govern- plateau for so long (retail prices men!
attempt to
have risen only two per cent in curpluses.
curb fibre
the past year) is that many in- The following table shows dustries which have experienced estimated July 1 acreage higher production costs-muinly, leading cotton
of course, because of wage. In July 1, 1966 aereage: crcases have refrained
from Stafe
Exchange
London, July 8, Closing rates were:
states, and the New York
Montreal Amsterdam July 1, 1037 July.1, 1050 Brussels.... истенкс acreage Copenhagen
437,020 Frankfurt
passing them on to the consumer. North Carolina JGU.000 This was partly because some Industries made a genuine at- tempt to hold down prices in the Government restionse to appeal for restraint and partly because sales were feeling the Arkansas pinch of the restrictions.
$13,000
Juria
Stockholm
Vleara Zurich
Othars changed.
suith. Carolina
Cecia
Tennessee
B10.000 300,000 450,000
$95,000 .854.000 558,000
Asian Qzlo
Alabama
$30,000
1,001.000
ississippi
1,400,000
1,841,000
Blansouri
415.000 1,103,000
hire-purchase Oldaboru
TORS New Mexi Artxana California VIKITE
Zinia
470,000
8,150,000
1,405,000 650,000 B02,000 7,005,000
187,000
301,000
371,000
730,000
772,000
13,000
21,900
34,400
Хля
3,000
0,400
7,400
3,500
2,300
Included in today's aggregate
were
€2,100 acres
Underneath
109.000
15,000
2.796-3.79-3/16 2.45-13/10-2.03 101-10.043
140.0215-240.07
193479-1934T 1167-1247 1134-17301
19.901-19.50 $20-00 1442-14-474 72-7-7130 19,1935 - 12.193;
Valted Prom.
New York Foreign Exchange
But demand was being held Flori bilirol just underneath the surface; it Kentucky hadn't toot any of its buoyancy. Nevada...... Now that it is exerting Itself again the industries which have | estimates been absorbing higher production planted to extra-long staple Caud coste by reducing profit margins American Egyptian cotton.
are not likely to tolerate this Growers had 43,500 acres of state of affairs much longer.
Once restraint is abandoned long staple cotton in cul-
the arlee platceu will be just a fond memory in the minds of political cartoonists.
the
Mion on July 1ị last year,
-
Texas and 20,000 acres American Egyptian
In cotton cultivation an July 1; New
600, United
A national newspaper tooked Mexico 14,300; Arizona 30,000 around this week and what it say prompted the following out- burst:
A fond
"Goodbye plateau! farewell to our jog-trot across that quiet tableland. We are again" on the jet - propellet funicular. Let her go boys! In- flation of bust”
and California Press.
NAMESAKES
Answere:-1 Germany, Battle, 3 Fighting, 4 Invasions, This was not a Socialist news5 Oralaught. 0 Barbarians Paper having fun at the expenso Attila (Leader, of the Huna.)
New York, July 8.
Closing rates;
up 24, and Haron,
National Steel Corp. New York Centrai ots Etevators Olin Mathiot
Oven-orth $71018
Paelle Gas & Elec.
Pan Amerter Altwayd Paramount Pictures Parke Davis Co.
Penny J.C. Co. Perm. Salt Ca.
Philip Morris
Procter & Gamble Co Pubileker Industries Pure Og
Radio Corporation Republic Steei
Shell of Cɔ, ........ Saat Rag. Paper Sinclair Oi Sear Roebuck
Rocony Mobiloll .. South Puerto Rico Sugar Suthern National Gas Southern Rathway Cam.} Standard Brands
a point, featured standard Oil of Cal. Standard Oll of Ind. Standard Oil of N. Ralls gains ran to a point in Sleep Rock (Toronto Exge.) Chesapeake & Ohio und Balli-Swift & Co.
Studebaker-Packard Corp. more and Ohio.
Panhandle Eastern up over
Техда Со. ........ Tide Water A. O Pipeline, Tune Inc.
2, atid Houston Twenty Century Fox Film Lighting, a point higher, helped Union Carbide utilities.
One of the few losses of any size wax n 1%
Chrysler.
point drop in
Of a total 1,020 issues traded, 560 were higher, 410 tower, 235 unchanged with 77 at new highs,
21 ut new lows.
American
volume was
Stock Exchange 1,010,000 shares,
compared with 720,000 shares
en Friday,
New York Stock Exchange bord volume was $5,212,000.
Closing Prices
Radio
Allied Chemicals Ailled Mills Inc. Allis Chalmers Amer.com Cabic
Corp. American Cyanamide Co. Amer. & Forgn. Power Ain. Maca, & F'dry. American Metai American Smelling An Sugar Ref.... American Tel # T?! American Toh, "p Anscondu Copper Armen Steel Armettr Baldwin-Lima Ham Baltimore & Ohlú Bendix
Aviation Corp: Benguet Cons Bethichwig Steel Boolag Airplane Borden (be)
Burrough Add Machine
Canadian Pacific R....... CASO (J.) Co.
Cat. Tractor
CIT. Financial Corp.
249%
19
85
521
健腦
Tinion I'utile Railway
United Aircraft
9.9. Gypsum
U.B. Smeking
U.S. Rubber
U.S. Sleef .... Warner Bros.
Westinghouse Electric West Vs. Pulp & Paper.. Woolworth
40
SHIPPING
K. Whist
The list had opened 70 cents hale lower in evening-up
October December March
May
JUCES
A
mar***** lock
PO
July
7.70
1.83 2000 or
1000 7.80
DOCKS, ETC.
108
100
on short covering andl trade buying.
operations prior to the report but recovered partially a Bile later
October
December
LIVERPOOL
Collen future closings, in pence
Dock....
454
500 # 6512
អ
sele
Provident
12.80
2014
2111
LAND, ETC.
The market closed from 19.55 per lb., were on follows: a.m. to 11.15 a.m. EDT to allow Old contract July/Aug. for the nereage report.
Oct/Nov.
20,4A
The
Department of Agricul-
Dec/Jan.
7011
Mar/Apr.
20,74
475%
NX Land
ture reported
that 14,224,000
May/June
20,02
37
Oct/Nov
27.03
Dec/Jan
Mar/Apr.
May/June
10
341%
70
100%
Amaly.
IX Hotel..
cumpar
Realty
RUBBER
Trust
UTILITIES
16.00
391 25.79 18.30 14.80
1.4725
1.55
1.23 1.40
Trim ...... 23.10 23.20 Yaumatt....
C. Light (0) 13.00 18.00
75023.10
O COL
40 30.00
zeres were planted to cotton as New contract July/Aug. of July 1, compared with 10,833,000 acres under cultiva- tion at this time a year ago, and with the 1940-55 average of $2,743,000 acres. The trade x- pected around 13,750,000 neres, Certificated cotton stocks held unchanged et 9,734 acres.
NEW YORK Prices of colton futures cloud today as follows: Spot July
SAQ PAULO
July, October, Desember and March. May unquoted.
In the US. the average price of one-inch ection at 14 design- ated spot markets was not avail-
able.
Tolal sales at these markets: 0.171 bales.United Press,
100 100
530 G# 10.70
13.70 12.00
090 12,00
123 12.00
1033
113.
37% slope
Electdte
... 2000 20.39
Telephong 27.60 23 332 INDUSTRIALS 3012
Cement
300 20,00
200 6 29.201
200 4.27,80
300 27.80
32!!
6412
Amoy Can
3414
STORES, ETC
14.00 14.73 200 14.70
Wateen
Lano. C.
42
Emperor
1134
8.35
31
30%
COTTONS
Textiles
49
Nanyang
4.76 4.820 500 8.35
4.73
GOP 34
Enter.
19.00
41 Dalry
ла
201
MISCELLANEOUS
13711⁄2 | ADK DAN
780
(0)
08.00
INVESTMENTS
Allied
.... 45732
400 14.70
CHATTER
ON WALL
STREET
New York, July 8. Technical action of
PO B•I E&A
COMPANIES
PASSENGER/FREIGHT SERVICE
PENINSULAR & ORIENTAL S.N. CO.
Outwards
"UARTHAGE"
Leaves Londen.
Kina Hongkong 20th Judy
2511 August
22nd September
"GANTON"
“CORFU"
the
"CARTHAGE“
+
appears
further
stock market
with favourable strength indicated, accord- ing to Orvis Brothers & 2014 Co.
74 3911
E. F. Hutton & Co. says the probabilities of continued favour. uble short-term trend action re- mains high and movement of the 12215 | trend of the recent truding rerge
231
should develop.
4314
United Press.
DOLLAR
STOCKS IN DEMAND
London, July 8,
in Dollar stocks were strong demand in a firm London Stock Exchange to [day.
Bach & Co. says the recent advance suggests that an attack on the all-time high is a strong possibility Lone Star Cement chart position seen as favourable. Run Ahead
Waltson & Cu. estimates Robertshaw-Fulton 1057 proft should run ahead of last year's $2.82 a share...Abbott Laborn- tories should rise from the $2.80 of 1950, and the 6160 dividend might possibly be sweetened at some future date.
Harris, Upham & Co. esti- Imates Carolina Power & Light set at $1.84. for 1057 rainst $1.64 in 1950,
the rall Value Line, says equipment companies currently appear to hit the peak of ม boom.
Clarke, Dodge, & Co, Ands | the municipal bond market im- Market men raid the buying, proving and says It has dis- which sen rod in such isales as counted a possible rise in the International Nickel, Bethlehem prime interest rate shortly and Steel, Chrysler d General à possible rise in the discount
Motors, was a recull or both rate. strength in Wall Stree; and tech-
nical factors.
Elsewhere, olis were wanted
Standard & Poors
Bays the worst apparently has been seen for the housing industry and a
616 with Ricyal Dutch tealusing on a moderate Improvement
4032
392 spur, of £14. Other oils were
to 131 up mostly from
9031
2 shillings.
1015 Leuding industrials were quiet WE with moderate guins.
Cefano Corp.
Chinav Stanhantan Sink Charter Motor
483.
Y
70%
Climax Molybdenum Colgate-Palmolive Co. Consolidated Adison Continental Oll of Dol. Crown Zellerbach Cubed Amer. Bugar
Olliers ait unchanged.*** -1/10 Dimond Aft...
alted Pres.
Dow Chantenis
Dupont de Nemou
BOCITLA
likely late this year or in 1958,
-United Press,
Governmtut bonds were sold Exchange Rates
again, War Loan fell 3 shillings 459 pence to a new all-time low. 43% while Old Consola tumbled COT,
shillings to a new 1957 low. 10% Young Loan was the only up- side feature In the foreign 1972 section.-United Press.
Fast Clock Beats
----------UJI
Washington, July 8.
A fasi clock asmand the okup reparing board to release the
BORDEO report Rye miamašću curty Soday. Under law, the trup reporŇ KURIE
one sccund before or after.
›› Nowa" | reportera... and--motton)" markets arm geared to the
red lime. ・ Clocks are supposed;
Today they
še bo-mytrADE, uidn't,
Susumoss war dona In the local unofficial exchange market morning at the following rates: V.B.. dollar (per (1) ou...... Biring rates (per #1)....... Australian notes (per £1) Investan rupiah (per 100) Biem dicsi (per 100) Singapore (straila)
The Law
4.00
10.40
BAS
32.60
28.00
3,000
clock in the work room, show-{; the report when the faxt click ed (be margt time.
Vilo raporters
BUS KYA
The clock in the locked rooms) Actually, the time was 1054.
where the then report was prepared (abowed 10,80 an KET.
showed 11,00-an.- Thály die sturen the oetien ave DOST TUMAČAnd Echipapork and pošten marktbe a lite ́ early
When Board chairman | ・ #prolai wires to cuttes munchen | On Ococraber 8, 1835, A SZEREY Sterling R. Nowell rushwa - worth's operating.
"from" the lock-up, rošty clock;| Newell;^-rollinwing/^^the 'clock, booked in sering with, the had no obaloo," „žio rytusMEGA
lucident occurred, The kletk -then-was-four asă-11⁄2 minutes `fisk-United Prem,
*
*
Sated 25/0
23rd July
21st Aux
18th September
Via Southampton, Colombo, Penang
VENTARIOSE
"CARTHAGE"
"CANTON" "CORFU
"CARTHAGE"
Leaves Hongkong
int August
2014 August
2011 October
& Blogspers.
Tree Lenders
let September
22th September
18th September 27th October 24th October 24th November
Via Singapore, Penang, Calouste à Aden,
FREIGHT SERVICE
"SUNDA" due 12th July "SHILLONG” tenda 17lia July
From UK.
fer Singapore, PL. Bwet- tenham, Pening, Rden, London, Ham- burn, Rotterdera, Ant- wees & Grangemouth from UK. MÔI TA" đầu sách July "SALSETIE” dos 30th July
from UK.
dee 15th Aug from UK. "SOMALI"
BRITISH INDIA 5.N. CO., LTD.
1858 - A HUNDRED YEARS OF SERVICE -- 1858
"SANGOLA” dat 17th July. fream Calcutta, Bangooo
sak 18th July "ITINDA" Bus 20 July salin Zig July “SANGOLA" đạo 12 Anh wills 7th Aug. “ORMANA” duo 19th Aug.
Kail 29th Aug.
for Japan
from Catrulla & Steaćin for Stanghal Di Japan. from Japan
ter Bingapore, Penang, Rangoon & Chiquita from Japan
&
for "Skipspore, Penang.
Rangoon, Calcutta Chutiagona
· P. & 0./B. I. JOINT SERVICE
"ISMAILA” due 12th July #alls 14th July due 27th July “UBLANA"
rails 29th July
"TAURA"
"OZARDA" due
due t0th July
maika Jóti: July Ith Aug, KÜS BÜL AUT.
from Korechi, Bombay, Cochin & Singapore tor Japan from Japan
for Smarpore, Codda, Bomber, Karachi, Bas- rah. Khurramshahe di Kuwait, from Bombay, Cochin, Je Bucspore for Jupes
From Japan
tor sipore, Borzbay, Karadu, Barat Khor- Kakima D Kuwait
EASTERN & AUSTRALIAN 5.5. CO, LTD. *NELLORE" saße 11th Jubr
"EASTERN” duo 0th Aug
for Labuhn, Bandakan, Rabati, riebana, uyd-
Melbourne Adelaide,
All venonly have thorty to call at any porta e er of the route & the route à salllogu arů zabjøet
to change or amendesent with or without mollow.
For full particulars apply to a MACKINNON MACKENZIE & CO. OF HONG KONG LIB. Telephonic Hos: 27721-4.