THE CHINA MAIL, WEDNESDAY, AUGUST 21, 1957.
TRADE and COMMERCE SECTION
Parë
INTERNATIONAL FINANCE TOUGHER Cotton Futures
Sterling Ceases To Be Of Any Use As Reserve
By SYDNEY 5. GAMPELL
London, Aug. 20. International finance is getting tougher but less boring. Unless the freight and commodity markets soon shap out of their malaise, this alleged world inflation has had it.
What is really blowing up, is a liquidity crisis in international payments.
As can he seen countries as varied as France, India, Japan and Denmark, this carries a serious threat of a deflationary chain-reaction of import restrictions.
HONGKONG VIGOROUS RALLY
STOCK EXCHANGE
Our Own Correspondent
BY STOCKS ON WALL STREET
By DOROTHEA BROOKS
New York, Aug. 20.
Stocks put over a vigorous rally today when further downside probing uncovered a real de-
Buslucss done on the Hong- this Stock Exchange kong, morning amounted to approxi- mately
$270,000. Noon" quota- | mand. tions and the morning's transac- tions!
Shares Buyers Kellora BANKS
HK Banke
INSURANCES
Union Lontard..
FUIPPING pocks. ETC.
Wheelocks
K. Wher Dork
Bales
A run-down of the day's action showed: The market just about held its own in initial
to or dealings as Wall Street appraised the situation in the light of Monday's break-widest since Oct. 10, 1955-touched off by the Communist-inspired move in Syria.
7,70 7.80
400 @ 1,73
14
4.
P'vident (0) 11.70
The many countries with weak) move in and since last. December | LANDS, ETC. or failing Terves are trying 10 than in all its previous life.
cut or restrain their imports, either by direct restrictions or by
general
policies.
anil-inflationary
with strong Inventory
The few countries
reserves are in
liquidation.
Commodity
This is valuable, but B does not carry matters very far. The IMF
not wis
given resources to provide much more nid, and as the US than first Treasury (which mostly works of ready It is set short money, it cannot easily ge!
more.
1.20
Ki.. 15.000 15
Humphreyn
A 300 1400 # SG14 1620 16 40
Loews_incorp.
A test of the lows came ink-, Lockherd Alvezull morning in յ sharp sell-off, Star Leinent Co. which put prices, down a point | Lowensteja & Sons,
in many issues,
This
was followed by n 1.413 100 22500 1310 vigorous
Dn volume upturn which put reporting tekers be- [hind floor transaction for nearly
half an hour.
Realy
the
RUBIEN Amplg.
UTILITIES Trata
... 1.475 1.50
0 23.500
Star Ferry
хо
Yaumati
120 130 105
107
C. Light jo) 18,40 19.50
(a)
12.00 Electric
200 20.00
COD 1009 69 20.00
12.20
1000 27.00
I did provide the first Telephone 27,09 211 and that's that. Under is new management it, will go on being
INDUSTRIALS helpful. In contrast to the many Cement vents when it did rather more STONES, ETC. harm than good and nothing Day
But the bi Watson much of cltler,
Emporium money has gone.
CUTIONS
Commodities duly reilce! this fluation, AB
any ky ny beneficiaries prera, and Britain's terms wide; they Industrial thrive on dellations; and commodity profits do not.
All Inflationary booms end when they run out of money.
The IMF has done all 15 Textile This one has probably done, it entitled to do for sterling, and Nanyang already, up surely ns did the oil it is prepared to do for the MISCELLANEOUS
Entert Karcan boom. The trouble 15
frane and rupee and several | INVESTMENTS aggravatej
the
currency | other currencies, this side of Yangtze by
Allied distortions walch are causing o
Mallik. & F.E. major reforms.-China the reserves Special. near-famine of
Invest. which are the working enplial of International trade.
The French
franc
is most acute of these distortions, but far from the most Important. If a world crisis is coming. 1 will come from developments in the dollar, the D-Mark and sterling.
The only serviceable reserve currencies are sterling and the dollar; the D-Mark ought to be one, but is not.
Not Willingly
1000 22.00
then
to close
Prlees held steady through the mid-scasion full and moved up steadily around the highs.
Leadership was top grade with Bethlehem and Cenerui 200 27.99 Motors the most active issues.
1000 323
100 101 1900 w 15.00
02-2
15 14.70
12.40 12.60
A
300 13.0
4.00 4 315
040
3. 20.09
1.30
0.00 425
■+
9.00 10.20 cod 030
Expectations
The recovery
was
McDonnell Alerts
Stock Ex Merah bun Com Minnesin Ming
Mission Development Lionsanto Chenilest Co Montgomery Word Motorola ne.
10%
(Au
WORLD
RUBBER MARKETS
New York, Aug. 20. Rex rubber market closed tutay two to ten polts lower with sales of 19 contracts.
September
November
January
March
7.13
3205
37.00
31.00
31.73
1.00
31.40
May Fly September Standard contract elesed two to ten points lower with no sales
reported.
September November January March
May July Beptember
24.10
33.0
$2,000
31.00
31.
31.00
31.40
See-Saw In Quiet Dealings
New York, Aug. 20. Cotton futures today see-sawed narrowly in quiet dealings, holding to the pattern of the past several sessions.
After a mixed start, prices edged up to sinall net gains, then receded gradually to close around the day's lowest levels.
Final range stood 10 to 20 points tower, with new crop inarket months, cabiest, The opened off five, to up three points. New Orleans closed 12 to 21 points lewer.
Mid-session selling colnelderl with the reiterated expressed
AMERICAN
BUSINESS
conviction of Agriculture Secre- CONTINUES
Lary
com❤
TO BOOM
Washington, Aug. 20.
Benson that solution of the farm problem lies in lower price supports sind a liberalisa- tion of planting controls.
The Government weekly crop summary, apart from plaints of rank growth in some purls of the Mississippi Valley, was considered by some leaders ported last week that As about 80 per cent favourable US business continued Volume Open Interest to boom through July,
A continued slow domestic interest and discus- consumer slon: the possibility
on eterling revaluation combined 195] to keep market, interest to a low cbb. Shipment business con- tinued slow sibee prices were too high to interest local buyens, Reported offerings included sheets, from Thailand three Sept/Oct at 314 cents and four sheels Sept-Oct. at 30% 113 cents a pound, cost and freight, 31 Indonesian offerings included | Ocieber
14
My
10
National Chikh Hor. “A”
Nallohat Dalry Pred.
National Lead
National Steel Corp. cw York Cenitai Olin Mathieson
Otis Elevators
Gwan-IlBnals Glass
Puelle Gan & Elec. Pan American Airways
Paramount Petstre
Parke Dayla Ce.
Penny 1. C. 16
Penal Sall Co.
Philp Morri
in lind Procter & Gamble Co.
with Wall Street expectations | Pittsburgh Plate Glass
Pure Oll......
Redio Corporation Republle Steel"
us on overdug move that had Publieker Industries been upset by Monday's news which Included the budget Syrian situation
hit Reynaldo Metal and from Fededal
header, Roebuck & C Reserve William McChesney Marlin, thal deflation, rather than tion,
may concern veenofly.
With the drop from the July around 18 illion as of the Monday close, many in Wall Street held the
market was considerably over-Standard vil at Ind. sold.
soon
13 highs totalling TWA BECOMES Uncompromising
*
HUGHES'
NO. 1 INTEREST
Washington, Aug. 20.
Multi-millionaire
View Held On D-Mark
Bonn, Aug, 20.
The
for the crop as a whole.
Month
Detobig
December
May!
March
7360 170,000..
$400
11,000 274,000
3,500
145,000
4,400
IU,300
13,500
108,000
7217
50
-17
129 Sept. three
ambers at 304 cents and four ambers at 27% cents, cost and freight. Spot No. 1 Res was quoted at 3214 cenis,
28%
Beckmper
#1,000
34,0
Tetal.
36,500 NEW YORK
today as follows:
Spol
October
SINGAPORE
Pespite rather better oversens 7aadvises the market
opened
78
lover on official denial of liiket- ;
of sterling devaluation. ins hord
oud cased further on some 61% state bull selling.
There was less interest that of late in lower sheets and only Small factory enquiry. Futures: Nu. 1 rubber per th. Eept. 02-92 Oct. 10-1
No. 2 rubber per lh, Sept. 912
The Government re
But it said it detected signs in the economy that
consumers
are
203,000 butes generally showing resis-
Prieta of cotton futures closed tance to high prices,
December
Morell May July
October
Decentres
NEW ORLEANS
35.0511
37.77
BRABBRAR
Prices of colton futures closed today as follows:
Spot
Octatier
Dreamber
Man in
The Commerce Department estimated that the gross nation- al product this untion's total output of goods and services--- was running at an annual rate of $434,500,000,000 at the closu of the year's second quarter on June 30.
This was Ave billion dollars higher than in the January- March quarter
und $23,500,000
last
But the Department said
The Vise "seems to have been associated
with
increases in
5
30.15
Shell Oll Cn.
26
30.77
above the second quarter
39.03
sunt ner Paver
3032
india-
Sinclair Ol
Dec unquer-tog
May
3301
year.
the
Sucony Mubiloli
July
33.32
Solar Aircraft
TRSS No. 3
Oelcher PIN-914
32.71
South Puerto en Sugar Southern Co. (The)
No. 4 22 Spot rubber unbaled
16-08- 013-023
December
prices.'
LIVERPOOL
40
Blanket crepe No. 1 pale crepe
113-B1
Colton
future closings, in
ธง
LONDON
Southern National Gos Southern Raliway (Com.) Standard Brands Standard Oil of Cal.
101-102
The rubber market was quiet with spat down 3/16 at 27-3/16
2713-2762
OFF SLIGHTLY
as was.
The Federal Reserve Board pence per lb. were as follows: reported meantime that 10- dustrial production in July tell 253 30,10) of slightly.
expacted. 2062 But when seasonal factors ATO 18-10 considered, it said, the July rate of output, was equal to the near- 2010 record Juno level.
Old contract
Ort/Nov.
Standard Oil of NJ.
Dec/Jan
Mnr./Apr.
on
Steep Ruct (Toronto Storing Drug Co
tokeiy-Van Camp, Studebaker-Packard Corp. swift & Co. Texas Co.
pence per lb.
Prices:
May/June
1514
No. 1 Rs pot...
275-278%
July/Aug.
Settlement house termi
Now contri
September
276-232x
Oct/Nov
Detober/Decumber
Dec/Jan.
3312
January/March
27-6-27-4
Mar/Apr.
Fox Film
001
April/fúne
May/June 235-2724
20
July/September
2726-277
July/Aug.
27
August
271 buyers
Bi
September
27-27
October
2714-2721
334
SAO PAULO Cotton future closings, cruzeiros follows:
kilo
were
ununoted October
March
Tide Water AR. ON Time Inc. Twenty Century Fox Union Carbide
United Aircraft
centred recovery issues hardest hit in the recent selling the steels, oils, metals, moters and special issues.
Industrials a group covered 4.91 points on uverage to 483.00; ralis 1.12 points to The West German Gov-141.47, utilities .00 to 07.77 and Union Pacific Railway Howard Hughes, whose ernment today maintained the 65 stocks 1.35 points to United Car Carp.
107.53.
15. Foil "2" ils uncompromising view
U.S. Gypsum Sterling has ceased to serve, Huges Tool Co. owns
Out of 1,182 Irsues traded, US. Le Co.
U.3. Rubber vversold for people to be able 74 per cent of Trans that it was up to other coun- 497 were higher, 406 lower, 230
tries to halt the flow of gold unchanged with 202 now lows. Smelting
U.S. Sicel to overscit further, and so is World Airlines, P and foreign currency into 5t, only two new highs. Warner Bros. technically strong-people wil
NY Stock Exchange bond | Westinghoum Efecti rot willingly leemulate.parently has decided "to West Germany.
Western Union Tel. Co. West Va. Pulp & Paper
because although its
That puts the dollar on spol, a spot which it is teking.
Germany's hogging of quld reserves slightly aggravated by Canada's
equally involuntary reports hogging of investment capital- was tolerable while the US was massively pumping reserver inlo | Issue the world.
and
American
i volume was $4,200,000,
American
Stock volume was 870,000 shares.
Exchange Woolworth
Dow-Jones closing averages
werc:
30 Industrials
20 rolls
15 tiles
CS stocks
a bonds .....
Comin. Zuture price index..
General markets, cit basis, port;"
Estate crepe in Sept. 30
tick AMSTERDAM
יניימן
201
20.04
21.20
The Board noted that
non- farm employment, income and 27.43 retell sales in July were at re- cord peaks. It said wholesale mi commodity prices remained easteady, while interest, rates con- tinued to rise in line with tizo Government's "light
monoy"
40 20 policy.
40,50
The rubber market was dull. Maye United States, the
4 Prices closed today It guilders
No. 1 rubber
and other household items Production of television
In-
per kilogram, elf Sept, a fol-average price of one-inch colton lows:
nt 14 designated spot markets cretect. Aircraft and auto pro-
duction declined moderately. 2.64 nom. Was 33.54 cents.
The Commerce Department. 263 10m, Toini sales at these murketa said that, on the basis of July 2.60 not.
bates United ngures, 2,03 nom. United Press.
No. 2 robber
No, 3 rubber
-United Pres
No. 1 crepe
LONDON New York Sugar
413.08
141.47
47.77
10741
83.20
13784
Closing Prices
STOCKS
LOWER
$10
8-412
13
174
themake TWA his No. 1
In a statement lasted after a activity and interest,"
cabinet meeting the government Wayne W. Parrish, pre- not call for any adjustment of Bald. that economic facts did sident
publisher, ühe Deutsche marks relationship Rumours of a in the lead to the dollar,
révaluation were groundless. urticle in the August 12
The statement said the cabinet discussion of
was caused Aviation magazine. by the mounting of payment surpluses in West Germany but Parrish said the impact of did not give any indication of Alden Inc. Aey Hughes decision, made
Allled Chenticul the goverament
thought
Allis Chalmers years of sporadic interest in the problem created
by these American Airline TWA, will be sharply felt both surpluses should be met. A Am. Cable & Radio Corp. domestically and International spokesman told a questioner at American Cyanora de Co. 15. Recounting the progress A press conference that the Am. & Foran, Power
|Ain. Gas & Electric meeting diri not discuss mea-Am. Mach, & Fdy. surea iu balance out the pay | American Metal...
American melting menis problem.
Am. Shear Bet, ... American Tel & Tel American Toù. "E"
Since last autumn the US has be sucking thêm in, while Bie German and Canadian auctions sill go on; ans, so the interna- ilonal payments system which has been creaking for some time is now in danger of breaking down. The miracle is that R his shambled on for so long.
So far, nobody is going to the IMF meeting in Washington In the last week of September with
intention any particular discussing this impasse, still ters of doing anything about R.
Major Decisions
On
of
atter how
Linder
new
this
TWA ng madt president Carter
Burgess year, the article states:
SIGNIFICANT
A questioner
"But at some time within the
six
Howard months past Hughes dccldea to move TWA to the absolute top of the list
it And of his personai Interests.
was
Anaconda Copper Armen. Stent
aced whether | Armour
that the Altos Cons. Mining siendicant
indwin-Lima-lam. the show ought to be good for statement spoke only of the Baltimore & Oaks the future, It will be a big marks relationship to the dollar Beneficial Financo show Hughes holds to his as nooding no change, and did Bendix Aviation Carp,
not mention its value against other currencies.
prezent course."
PERSUADE BOAG.
Marking thal
clearly course
Denguet CoTIR. Bethleheth Stoel
Boeing Airplane Horden (The) Co. This was interpreted here us Burroughs Add Machine
Campbell Soup Co,
a reference to the belief, wide- | Canadian Pacifle R.
Is Hughes current $500 million ly-held in West German finan-Capo 3.7.) Co. power play to try and ecquire clal circles, that the pound of
the
themselves discussing the prob-edding Parrish
Celanese Corp.
Chase Manhat. Bank
Chrysler Motora....
There is no nalogy with 1948 when major decisions (except only the actual now exchange, rates, and even they were not qulio last-minute choice) had Been Laken weeks in advance,
30 Bristol Britannias it he can sterling is over-valued against C. 1. T. Financial Corp. for mere scaling at the IMF.
persuade BOAC to release its the mark and the dollar. The With
without Intention, priority
turboprop | spokesman replied that this
Climax Molybdenum the finance ministers will fud
continues, was a matter for other countries. | Colgate-Palmolive Co.
Colombian Carbon Co. lem in and around the IMRparently reliable sources, Hughes adding "According to ap
Commercial Credit West Germany is most reluc-
Commonwealth Elec. meeting, under the fores of angured that now Ls the time tant to make any upward Consolidated Edison mounting world opinion that
the dollar, Continental U of Del, things are too screwy to stay as to equip everybody else. He adjustment against
couldn't do this unless heas this would almost certainly Crown Zellerbach
Cuban Amer, Suzor they are..
her exports. She al- Diamond Alkall concentrate on TWI and this damage Avoidance of Internatelnal he is doing."
ready had un annual deficit of Douglas Aircraft
Dow Chemicals liquidity crises is what the IMF The magazino says Howard about 1,900,000 marks a year in Dupont de Nemours
trade with the United States- Bugles "must see his way clear China Mail Special. financially or he wouldn't bo bold moves making so many and so many tangible commit- but for the multi-
out to lay necessary stake for TWA. mayF
.
was created for.
More important (ince the IMF cannot be or do more than
你现 member
countries and
particularly the US choose to
make it) such a crisis tende tomaro
be bad Intennial politics in the individunt countries.
AB unat,
the
Germany may require some radical juggling
suffer last from a problem of his various.cmpires"
which she has not dono least to
4
Parrish writes: |
London Metal Prices
London, Aug, 20. Prices of metals closed today
Concluding create; her elections will be "Whatever happens, this much in sterling per long ton as fol-
is certain: Howard Hughes and lows: TWA will be in the limelight
ཡ་།;
Eastern Airline Fatimas Kodak
El Paso National Gen Firea uno Tyre & Rubber Ford Motor ....... General Electric General Foods General Motors Gal Pub. BEN, Getty Oli Glidden Co Goodrich (F.) Co. Goodyear Tyr
teyden Nowport Comp. Homesipke Mining. Do, Inger-Band
Bieel Co.. Buyers, Bellers Interchenical Corp..
2016 | Katy Business Machines.
over by them.
IMF Mecting ›
from now on for quite a
The airlines of the world
At one point the problem be well aware of their provence, Copper spot inglages directly on the IMFA power battle using $5tillion month meeting. There will decorarily det units for armimition is in and a half. Aug. be discussion of what the Thy the making, wat the dumbelf-Zing 2nd half Aug Kweli has done to help: much them is oing to get rough."
30-manua
Tin spot-
*
4.
210
745 Int'l Harvester $10
Interisational Nickel
Nov.
Nov.
Trea
123143] International Paper
M[6]|| Joan-Manville Co.
canias C. Power & Light Kannecoli Copper. Liggett Divyera Tob, Co,
1120
London, Aug. 20. The Communist-inspired
Market
New York, Aug, 20. World No. 4 sugar futures closed today 7 to 26 points
coup in Syria and the debate higher with sales of 1,179 Domestic No. 6 contracts. over devaluation combined to send stocks lower on the
sugar futures closed un- two points changed London Exchange today.
The recent weakness in New higher with sales of 19 con-
helped to trets.
704 York markees also
732
urnerve traders here. Industrial stock
to
Strength in world coulengts September covering generally reflected 10 last three to six pence, with following the prompt stoppage tobacco stocks off around # of 450 deliveries noted and the My chilling and Unilever down two Arner raw situation,
shillings
A new enquiry from Pakistan, Olis came
under heavy scheduled on Sept. 10, will be pressure at times, Royal Dutch for 11,000 tons of refined sugar. tumbled 27/- to lead the de- Over the coming weekend cline. Cold shores were weak. Comblance is scheduled to gerk Dolinrs stucks were marked | 10,000 tons of paws, traders down sharply in line with yes- terday's decline In Wall Street. Foreign lens were mix od United Press.
London Foreign Exchange
understood,
Contract No. 4 (world)
Spel-cents per
Sept.
Oct
Jan,
Mar.
May
Jufv
Sept.
oc.
Cuba)
Contract No. 0 (domestlej
Rept.
Nov,
2.05 11/10-1.07.13/10
Mar.
130124-1.30.0735
May
10.34-13.3494
Sem
Nov.
London, Aug. 20.
Closing rates were:
New York Montroal
191 Bruncis
Copenhagen Faktari Milan
04% stockholm
3.7846-2.7816
-114,8715-11.0715-
1794-178714
Zamet. 72312-1451972
Others unchanged,United Presa.
Open interest: 8,534 contracts.
Spot-cents per lb. clf NY
ex-daily
Open Interest: 1,583 contemeia
United Prow. -
New York Foreign New York Metal
Exchange
Now York, Aug. 20.
Closing rates were:
Canada
Xogland official
K
Australia
unomdal
30-clays
New Zealand
Batth Africo
Pakistan
POffers - unchanged
Futures
Now York, Aug. 20.
Prices of metal futures closed 1,00-1,33 130-9/10 today in cents per lb. as follows: 355-3156 | Land" "Aug.
2,78-3/16
2,74,0/18 | Kine
29/19 | Copper Ada.
Tin
13.45 1848)**
9.00
were
Press..
17,030
Exchange Rates
J
the estimated annual rate of income of. Americans was at an all-time --- high $345,500,000,000-United Press,
NAMESAKES
of
Answers: Sword, 2 Cuir- evere, 3 Adventures, 4 Gallant, 605 Knighthood, 6 Tournament,
Gawain, 18.30 Mall,
9 Sicol 10 1922 Armour, 11 Brave, 12 Lancelot, 2750 - 13 Joust, 14 Arthur, 15 Chivalry.
1.01 Sir Thomas Malory.
Distress was done In the local Linofficial exchange market this morning at the following rates: U.S. dollar (per (1) Sterling notes (per Eli Australian notes (ptr 2 Indonesian rupiah Iper 100) Ham Heat (per. 190) Elapore (St-285)
10.20
TYPHOON MAP
With Latest Amendments
$500 MOUNTED
$4
INTED
South China Morning Post Ltd.
HONG KONG & KOWLOON