Page
THE CHINA MAIL, TUESDAY, AUGUST 20, 1957.
TRADE
and
COMMERCE SECTION
FRENCH MOVE SOLVES LITTLE THE £ STERLING
Mark Holds
Holds Key To Unbalance Of Payments
From RONALD BOXALL
London, Aug. 19.. French currency devaluation-for that is what it amounts to-is regarded in London not as an isolated action but as the initial move in a general readjustment of European exchange rates that is fast becoming inevitable.
HONGKONG
STOCK EXCHANGE
Our Own Correspondent
Business done on the Hong- kong Stock Exchange this morning amounted to approx!- mately $200,000. Noon quota tions and the morning's trans
actions:
Hhares Buyers Bellean
GOVT. LOANS
(148) BANKS
French devaluation is part of the tough new
It followed the paring of bank policy of disinflation. current budget accounts by £600 million and the was in turn tightening of credit control, and
INSURANCES
Union
followed by raising of French bank rate to its Lombard highest level since 1937.
The French Government does
not admit
that il currency | manipulation is a formal dc- valuation. But whatever h called, devaluation is what comes down to. And that Is the
most contral banks in way +cluding the Bank of
have interpreted at.
The Effect
England
!
SHIPPING Wheelock DOCKS, ETC.
pursur "good creditor" pall. What cles.
men's
10
Sales
3000 DO
000 100
30
115
10
கண்
02
200
5004014 500 40 11.00
600 44 18:40
7.30
7.10
Dock Pvident (0) LAND, ETC. HK Hotel.. HK Land Humphreys 10.50
4.47 1.00
23.00-23.00
60 a 20.00 1000 10 ZATU 1000 @ 20.70
103
· ·
HEAVY SELLING IN
NY ON NEWS OF SYRIAN COUP
New York, Aug. 19.
Stock values were slashed over four billion in the worst market break since Oct. 10, 1955, as ROWs of the Soviet-inspired Syrian coup touched off heavy selling.
Losses in all groups ranged to two and three points and there were some drops of seven points or more among issues such as Gulf which moved off with the International oils, hard hit by the Syrian news.
Reaction to the Red move in Syria was heightened when William McChesney Martin, head of the Federal Reserve said "we are reaching System
where out place" Javelling moncy
rates may stabilise and even declina This led Wall
41) 1.10
10.40 1035 3414 30% 2000 2016 Street to conclude inflation is loring push hd giving way to defationary forces, more feared in financial circles than inña- tion,
Industrial points on overage 800 @ 10,70 | their lowest level since April 12.00 5. It was the widest break since 657 64 29.70
followed which selling 2150 $ 20.70 the
Eisenhower's Heart President
Despite the hardness" of the still regulates mark, Germany R
Its internal economy along lines
RUBBER more suited to disinflation.
Analy Besides it had until recently | UTILITIES practically no defence commit- Tram...
this helped it and develop is forelim trade at the Yaumati txpense
other European Light 10 10.00 10.00 (ts) 120 12.00 And while Britain countries,
Eleetde 201 2000 moves and others of Germany's neigh- exporte will rebours are facing labour hort- Moeno E. celve a subsidy of 20 per cent, ages resulting in rising wages Telephone while Imports (excep! of es- and higher sential raw materials) will bear] Germany cent. Tourists "pont of tax of 20 per Koing to France will get franes fugee population acting against Win 20 per cent cheaper in the any tendency for wages to rise, official exchunge rate. And
The effect of the that French
Frenchmen travelling abroad
will pay 20 per cent more for
foreign currency,
In other words the
· has been devalued by 20
cent.
production costs INDUSTRIALS
33 ready-Rude Canent 3254 A uncmployed" In re- STORES, ETC
has
Plain Speaking
Next
Do
per hational Monetary Fund consl-
ders implentions of the French
Deity
27.80
COTTONS
600 v 27.00 attack, DOG, EN DZIA
15.40 15.00 2000 g 18.00 32.40 12001
4.30 4.300
500 27.00
INVESTMEN
Yangisze
Alllad
0.00
Toxules
Nanyang
4.16
I.K. & F.E. Important date is Suplember 15 when the Inter-
Invest. XD.
stocks to: 9.23 Lo, 478.95,
The Decline
For raile the decline amount-
cd to 2.30 points pushing the average back to 140.35, lowest the point since Feb. 12 when KBS 3000 € 420 lows of the year were Bel. Ulides lost 70 to 67.71, their 10.20
lowest point since Dec. 25-
Activity was stopped up to 2,040,000 shares from 1,470,000
בוד
Lowenstekt & Sona McDonnell Alrezati Am
Stock ) Mesabi Iran Corp. Minnesota Mining Monsanto Chemical Co. Julssion Development
Montgomery Ward
10!
3015
34
36
National Canlı Reg. “A
50%
331
National Lead
20
Motorola Ine.
National Dairy Prod.
National Steel
New York Cente on Mathieson Ous Elevators Owen-fillets Glas Facile Gas & Elec.
Fan American Airways Paramount Pictures
Tarko Davis Co.
Penny C. Co Penn, Salt Co. Phillp Morris Procter & Gamble Co Filtburgh Plate Gloss Poblcker Industries
链
14
RECOVERS ON
WORLD THE CONTINENT
RUBBER
MARKETS
Itex
New York, Aug. 18,
today rubber futures
closed 12 to 20 points higher with sales of 64 contratis,
September
November
Josuary March
May
Juke September
22.10 32,02
31.25
31.00
31.70
31.00
12
n0
Standard contracta closed
to 20 points higher with sales reported.
September
November
January
March
May
July
September
10
3102
31.
31.30
3.13
London, Aug. 19.
The pound sterling recovered on the boursËS of Europe today after last week's fall.
Norway was the sole exception; there the rate was unchanged.
Ostend: A short-livedi panic; the rumours euzten throughoum the possibility of igneo this morning here among Europe of Brial tourists mad brokers, asĮ devaluation.
a result of weekend press re- A feading Austriam porty of sterling "instability.” said today “chicfilly we do not
Panghani Most of the brokers and bank | bellevs
คม branches refused to buy pounds, devalue He currency umbeste ting Almost alone among the bantes, situation greatly and soakley the Societe Generale de Bei deteriorates-and gique accepted pound notes, but sign of this at present.-
Customs only from
British tourists, on
oddestrame the basis of £10 from each of quantities of pounds at Vilnia banks Loday were advised De Hotellers id some Britons same days or even as long as two weretet, as banke optical got alarmed and checked out to return home by the Dover le perod the pound would reSTEDET
believerd Cheat wwwfre boat. Some money changers
them.
weck.
of
bought pound banknotes for as De of the Horses of the Bat Q routine little s Dealers reported
120 Belan francs- situation on the terminal and compared to
Movements last Saturday's
Kokand actuals market. Slightly high lowest rate of 125 Belgian francs normal; and there was no radit
sterling Were sted s London cables and Drug of for a pound shipment offerings kept a curb
buy gold or German medis. on selling, while small dealer
or to sell sterling buying orders predominated,
Switching operatione also fea- tured the small trade. Exchanges Brussels Bourse from its down-sidfembly. In the Ext few days. had regained resulting in Anwer quotations for Included July 40 points und ward trend and
forečza currency at the Auster- Sept, and Noy 10 points unde, some points. Sep!.
dam Stock Exchange.
Reports about the possible 6 revaluation of the pound sterling 40% had a restricting influence over
general market Interest.
Domestic factory laterent con- finuce slow 101 the delivered market. Spot No. 1 Hy was 20% quoiod at 32% cenITE
40
307
But just before noon Ostend's bankers and brokers got word from Brussels that the sterling bad recovered on
pour.d
The Bic
Dutch has
strengthened conte
Both the Guilder spond tie British pound sterling wanne in stronger positions today than I Saturday.
This had an immediate effect. reported Banks and brokers "position back to normal" and tourists had no more difficulty in exchanging their pound note,
The GesHIJR Mark and ther Vienna: The rate of sterling security dollar vermeinet BREZER hos remained normal despite Keuter.
SINGAPORE
40+%
Radio Corporation
Republic Steel
Reyunda Melal
Bents, Roebuck & Co.
|
Shell Oil Co.
Saint Reg. Paper
201
Scheldir Of
37
The market opened higher on rumours of currency devalua- Hon but eased slightly 00 profit-taking in a quiet and cautious markol
*
*
Borony Mobiloli
Solar Alternfl
South Puerto Rico Sugar Southern Co. (The
There was a fair enquiry for 15% lower shreis,. (actories тесто
23
Sevthern National Cas Southern Railway (Corn). Standard Brands
10
quiet with only small Interest shown in remilled grade,
.40
Futures;
Standard Oil of Cat
move. This will be an occasion New York Foreign thres traded on Friday. The Standard Oll of Ind
The difference between the for some plain speaking. method chosen und, the bald Junnouncement of devaluation is
One possible solution that is being canvassed in London is modification of IMF rule that forbids exchange rates to de old (oMcial) rute-and this it viate more than one hoped will
that France wil sult unport essentiri raw materials at the
French either
parities,
prevent
internal costs from rising and
thus negaling action.
from WAY
per cent declared
If wider fluctuations were permitted perhaps as
opinion In foreign exchange levels,
at more
Exchange
183
Standard of NJ. steep Rock Torento Exge.) Stering Drug Co. Stokely-Van Cump studebaker-Packard Corp. Swift & Co.
market waa a broad one with 1,140 issues traded, 832 of them lower, 134 higher,
un changed. There were 160 now luws set, only four new highs.
The unfavourable news Items 210-12 hit the market just as the ex-Twenty Century Fox. Film
New York, Aug. 19. Closing rates were:
1.05-15/10 Canada England ometal
unofficial 30-day 90-day's
2.46-2.67 ZIY
2.2274 1.77-7/10 2.78-13/10
A
Other unchanged,
-United Pres.
Australia South Africa
It remains to be seen how far much as ten per cent either New Zealandi
way exchange rates might devaluation will help France
realistic settle down out of Its present troubles. But
Ger. One thing la cerinin! tlant markets is
the French nction does not end the matter. many is determined not to net alone. Dr Erburd, Federal Economics Minister, admitted Fast
week that the mark under-valued, but said Germany
General Reshuffling
Exchange Rates
nstributed to
Texas Co..... Tide Water Assn. 01 The Inc.
Union Carbide ...........
મ
Union Pactite Railway United Alrezast
United Gas Corp.
U.S. Foll "D" US Gymam
U.S. Line Co.
had been perts
predicting 113-23/03 recovery from last week's break,
doclino
such factors
too as light money, a small freight
rato rise, less optimistic fourth quarter fore- the absence tasty In
of any upside incentive.
14: Bethlehem Steel, off Anaconda, down 34: El Paso Natural Gas, a 134 point lower: down 13. and Clurysler, off 2 points were the most actively traded issues,
Now York Stock Exchange bond volume was $3,710,000,
American Stock Exchange
in the local Daming was done unoilleial exchange market UUS Steel,
For months pust a situation has had no intention of revalu-morning at the following rate: has been developing that coulding the mark excent as part of only have ended in the devalua- i general internationsi currency tion of the frane or revaluation | revaluation. — London
of the West German mark or a Service.
combination
of
both. The
underlying problem is still with
us despite French devaluation,
And before it is
may have to be
solved there
14
general
peshuffling of European change rates.
Ex-
01
The present unbalance European payments mainly concerns the franc and mark
but over-valuation of the former and under-valuation of the latter has strong Im- plications for other European eurrenales.
The series of anonthly French deficits in the European Pay- menis-Union reached a climax
in July when settlement called for gold payment of about $100 million. This and previous de-
Express
U.S. dollar (per 31) Sterling notes (per £1) Australian news (per 21) Indonesian
0.05
18.20
rupiah (per 100)
Stam tical (per 1001 Singapore (traits)
12.30 10.20 27.20
1.80
Cotton Futures
Have Quiet Session
New York, Aug, 19. Narrowly mixed price changes accompanied
another quiet session in cotton futures today.
Nearby deliveries showed net losses most of
Bells have practically exhausted the time while new crop months managed to show
French reserves und brought small gains. Franco's cumulative deficit with
EPU to over $2,000 million.
even
as much as they wore two years
ago.
volume was 780,000 shares.
Closing Prices
Alden Inc. Aey.
Allied Chemienie
Alled Mille Inc.
Allis Chalmers
American Airline American Cyanamide Co. Amer. & Forgn. Power Am Gas & Electric Am. Mach. & Fdry Amerka Motai ... American SavelUpg Am. Sugar Re.... American Tel. & Tel. American Toh. " Anaconda Copper Armos Steel
Ating Cons. Mining
Baldwin-Liina-Rain. Baltimore de Ohio
Beneficial Founce Benguet Con
Bendix Aviation Corp.
Bethlehem Steel foeing Airplane Bordon (1) Cu
[ [103]
70%
415 No. 1 rubber per Ih. Sept. 931-037;
P.OBI EA
COMPANIES
PASSENGER/FREICHT SERVICE.
PENINSULAR & ORIENTAL S.N. CO.
Genres Lam Sathed XX Tist Anginst
Zth Acipat Zlod Sebast
18th September
1st October,
2012 Opfaber
Vie #onthemostat,· Culmacho, Inchong à Sincopum.
Memewards
Leaver Bangkang. Die Landhan 200
53%
OCL 94%-0513
501
Nov, unquoted
17
No. 2 rubber per lb. Sept. 92-922 No.
13 No. 4
15
Spot rubber undated
*
5
Blanket crepe
03-65
331⁄2
No. 1 pale cupe
101-103
LONDON
Optwarda "CANTONTM"
2012
100%
The rubber market
closed
>
20
steady with spot quoted at 27%.
"CARTHAGE"
59% xd pence per lb. Prices,
*
3154
No. 1 Kas apoi .......
274-271
"CHUSAN”
Settlement house term
CO
Aug.
27%-2715
2014
Sept.
433.
Dot./Dec.
STIL-20
4201
Jam/Mar
Aprune
July/Sept.
007
General markets, cif basin, poria:
13
Aug
за
Sept
Zis buyers £76-275
40
Uited Press.
Estate crepe thin Sept.
thick unquoted,
AMSTERDAM
Tho rubber
market "wDS Priece closed in
*
1.84 buyers
201
US. Rubber .....
U.S. Smelling U.S. Steel Warner Brust Westinghouse Electric Westem Union Tel. Co. West Va. Pulp & Paper Woolworth
MILD SETBACK SUFFERED
IN LONDON
London, Aug. 19.
اين
scady-qulet,
guilders per kilogram, cif Sept
as follows:
No. rubber
No. 2 rubber No. rubber
No. 1 crepe
2.04 nom.
Ualted Press.
The stock market suffer. New York Sugar
ed a mild setback at the close today "with
losses
ranging to a dollar in the unsettling atmosphere of a pro-Soviet coup in Syria and
5 uncertainties in foreign ex-
1031
change markets.
Market
New York, Aug. 19.
World No. 4 sugar futures today closed eight to 37
An exception, to the general points higher with sales of downward drift was South 909 contracts.
61 African gold shares which do
British Government bonila: closed unchanged to four points rallied from their lows in late higher with sales dealings reflecting the better
"CANTONTM*
Ang: 200 Smplexavet
25ch Svpfenber
zzin. Chybabang,
MI: October
"CORFUTM
"CARTHAGE" “CHUSAN”
3rd November
Son Havená
20th. MenezČNE
Via Singapore, Penang, Cilento a Minn.
FREIGHT SERVICE,
4 2012 Aug
GROW AR KOTĒZIS
*80MAI**
"SALSETTES. Kokāts zend Ang. sails Zhed Aug.
"SINGAPORE”šne Zitų AUE.
Loads 3rd Sept. valls da Baph
for Lension. Manhang.
faktordans, ASTMED THE
From TX.
tes Loodan, Barsborg, Rectendan via Strains à Ades
"SOMALI"
BRITISH INDIA S.NL, CO, LTD.
1990 — A HUNDRED YEARS OF JORREN
“BANTIILA" in Port
mangoers, de Calzina
sets 1st Ä»
“BANTILIA" dan 942 Eeps, kassa 10th Sept.
Truma Zapmie
*TTINDIA" de Sth Sept.
JOR
*
*
*
veloped good support,
Domestic No. 6 sugar fatures
of 127 con-
truets.
World contracts executed a
P. & Q./B. I. JOINT SERVICE
“ISMAILA" the 2015 Aug.
Kaila 27od AVL
Hundry.
#
"TIOLA"
due 23th Aug. malis 3ink Ang.
tone in sterling.
Oll shares weakened on Mid-sharp turn-about after the price collapse Inte Friday. Most of
Tosses of up to a dollar were
At the close the general list
Burroughs Add Machine
Spot
33.10
Campbell Soup Co.
Det.
33.77
Canadian Pacille
31
Dec.
33.00
CG (J.I.) Co.
17
Mar.
34.00
Cal. Tradios
#24
MAY
34.00
Celanese Corp.
14
die East developments und
July
Oct
22.00-07
CLT Financial Corp.
42%
Cham Manhat. Bank
303%
recorded on a broad front.
the loss suffered then was re- covered under technical cover-
Dec.
32.91
NEW ORLEANS
Chrysler heater
Cumax Molybdenum
Commerciad Credit
Commonwealth Elec.
33.24
Consolidated Edison
33.00
Continental Oll of Del.
33.49
Crown Zellerbach
BLC3
Cuban Amer. Suger
50
饰品
36.00
Diamond Alkall
33.00 32.00
Dow Chemicals
on
Pricca of cotton futures closed Colgate-Palmolive Co
con- culton
Dec
Mar
May
July
Oct.
West Germany on the other ruled oft five to 12 points hand has been raking in gold higher. Opening prices were off up ix points, New faster than France has five to boen losing it. In July is EPU Orleans closed up 11 to 13 surplus reached a record $180 points. million.
Accumulated week-end hedge Its cold and doller
selling and liquidation kept u nearly $4000 routing reserves are now million (compared with sterling plies in old crop anunths.
rate demand-over-sup- today as follows:
Spot aron's $2,307 million) bringing
Now them to half as much again as diminishing chances for
crop months reflected Oct they were a year ago and twice
gressional action legislation at this session.
The Senate Agricultural Com- mittee approved u bill to sell surplus cotton to domestic texile, mills at cut-rate prices. measure authorised the Agriculture Secretary to sell of 50,000 bales to domestic con- sumers annually for a five-year period. However, traders thought chancer for congressional action In one sense the onus
is on how are nil, to make
The certificated stock showed other countries
their currencies
the another sharp decrease, dipping strong mark. They (Britain included) 1,835 to 3,011 bales.
Out Of Balance
not
French devaluation will
situation for der .correct thin
many's payments are Ou! balance not only with Francs but with other European coun irlts.
03
The
Month
have pursued policies conducive t to inflation and if na a result, Dec. external value of their curren- Man eles has fallen, they have no May one but themselves to blame.
Juty
Oct
Dec
But this is too ́namow an Ton
Interpretation of přešoni, uh-
halanon, Germany it is argund
by that country's critime · bas
LIVERPOOL
Cotton future closings, pence per lb. were as follows: Old contract
Doutes Aircraft
Dupont do Nemours
Farter ARTI
In Eastman Kodak ...
El Pap National Gas
Family Finance Corp.
Firstone Tyre & Rubber
Ford Motor
General Elecizie
General Woods
General Motors
Gen. Pub. VUL
detty Olt
Gloden Co.
GOC (B. F.) Co.
Heydan Newport Corp.
take Muring Co.
419%
British Petroleum and Eur. ing and a trade demand at the
lower prices, mah Oll were hurdest hit,
The raw market ruled steady Industrials closed with mostly and unchanged with the prin- fructional losses.
cipal demand involving Brazi- Deilar stocks were mixed at Lana Dealers understood the
trading United Kingdom
the close of quiet United Press.
London Foreign
Exchange
Landon, Aug. 19, Closing rate were;
Now York
Montreal
BU
Amsterdam
33744
Brumels
320
Copenhagen
TX Frakturi 35 Millagi
Oct/Nov.
20.00
Dec/Jan.
20.TA
*Mar/Apr Kay/Jun July/Aug. New continet
20.43
20.70
29.90
Oct/Nov.
20.84
Dec/Jan. Mar/Apr.
21.00
77.34
May/June
27.35
July/Aug
3.4
Cur ou
ĐẠO PAULO
Volume Open Interest
1,000 172.100
8,400 271,000
3,000 159,700
2,100
140,00
Cotton cruzeiros follows:
future closings,
ja | Lgwol-and
stockholni
per kilo were
ов
Steel Co.
Zurich
Interchanical Corp.
401
Inti Business Machines
300
2,700
107,800
0,400
100,000
4.600
35.300
May. Juły In
Dni Horsenter
40.00
International · Nickel
the United
States,
the
International. Paper
NEW YORK
40.40
000,000 bales average price of one-inch cotton
Prices of cotton futures clowedi
duty by elker oguntries to today as follows:
(at 14 daighinted spot markola
was not available,
Tatal sales were 13,091. balas, United Press.
Intell
John-Manville Do.
Hannecart Copper
Liz Adwyer” Tob. "Co.
Lockheed Altonate:
Loews Inenep.
Les Star Comedi
ale last weck bought 40,000 tons of Brazilian raws whlic Italy was the be- credited buyer of 20,000 tons.
Other reports said" Jupan - kna between been negotiating for 59,000
tona and 100,000
орств Brazilian, while Cuban tota reportedly bought 120,000 tons.
Contract No. 4 (world) 276-5/10-3.787) 2.63-11/18-2.67-1/16 October
September
139.10-10.15
10.00-10.04%
10.3438-10:34%
11.07-11.07Y
January March ALAY Owy September October
12.182-12.18
Other unchangedUnited Fremspot feels per ib, fob Cubej
NAMESAKES
Anewery-{ Migration. Communion, 9 Largelites,
| Egyptians, & Pursecuted.
Mesos
Open Interest: 1,339 contracts.
Contract No. G (domestic)
Beptember
November
My
4. Spot
fonte per Ib. cit NY
Open Interact:
*
*ITRIATM
TRIMIZZBEN A DONORAR
Beggies. Pake
Bombay Kane
from Kanchi. Bebe
EASTERN & AUSTRALIAN SS, CO, LTD.
"ABAFURA"Est 4th Sept. Brad AnstraDA
*EASTERN* Joods 6/3th Sept.
KAIN 2010. Dipl. pre Labionen,
All vencia BATH Shorty-to call at ang bata
at all the Tunde at the soute à matte