Page
THE CHINA MAIL, TUESDAY, SEPTEMBER 24, 1957.
TRADE and COMMERCE SECTION
BANK MOVE FIGHTS & SPECULATORS
Shock Tactics Done In Determination Or Desperation?
From RONALD BOXALL
London, Sept. 23,
|
£
WALL STREET STOCKS SLASHED FOUR BILLION
New York, Sept. 23. Overall stock values were slashed another four billion; individual prices cut as much as seven points and volume stepped up to the heaviest pace of the
year.
The two per cent increase in the bank rate shocked and was .meant to. It was a drastic measure to deal with a 'drastic situation caused by a wave of speculation against the pound. Repeated assertions that the pound would not be devalued had failed to stop the speculation. So for the first time in 37 years, Britain has a seven per cent bank rate and speculators against the pound have been served notice that the British Government mean what they say.
Judgment on the Govern- | Ukely to happen la that they meni's action must be withheld will interpret the almost un-
dust settles. until the
They proccdentally large increase in and only they know all the the bank rate as a sign that
(Other facts on which it was based, the pound is in real trouble- sterling countries also have But even the genernily known proof that they were right all their responsibilties ini the
necessity the time.. facts painted to the
be defence of the pound Psychology can for action of some sort.
Thornleycroft' will overdone.
Friends of the Government i point this out in unmistakable might see the bank rate move terms when he meets his Com-points--their widest loss since 06 3 courageous action and
Falling Through
Last month the gold ELIXEL
In the end the only thing that can restore confidence sterling in a strong balance of payments position.
no
and Mr doubt
Baint Row Paper
The selling hit all sections of Shell Ou Cɔ. the market, almost without ex-Sinclair Oil ception. Of a total 1,217 issues Socony Mobilo traded broadest market since Solar Atregati,
South Puerto Rico Sugar Dec. 31, last year-only 80 Southern Co. (The) advanced while 800 were lower Bouthern National Gas
Southern Railway (Com.) and 138 unchanged.
Standard Brands Industriels met support above Standard Oil of Cat the lows of the year but still Standard Os! of Ind. Standard Ou of NJ. had their sharpest decline since steep Rock (Toronto Exge. Oct. 10, 1955-a drop of 40 terug Drug Cu, points
the In
Dow Jones Binkoly. Ven Camp
Studebaker-Packan! Cup. average to 450.96, lowest since Sunshine Mining Feb. 12, when the 1957 lows, Swift & Co. were set at 454.82.
Rails were cut back
4.13
dollar reserves--held jointly by proof of the authorities' deteronwealth enileagues nt Ottawa February 11-to 124.35, lowest Union Oil of Cal.
all sterling countries-fell $255mination to defend million and this largely reflect-come
what may.
ed the cost of offelul interven- who hold ne brief for the steady. Brillsh tion in
the foreign exchange is every markets to prevent the pound from falling through the "door" level of $2.76.
Things have not been so bad alnce then but it is a measure of seriousness of the altuation with
which the Government prevall.
have to deal that even us recently as the day before the bank rote announcement, dollars were still
being used from the reserves to keep the pound's head above water.
which view will
is having and
inflation.
level since November 9, 1954, The utilities dropped 70 points, widest since June 24, to 66.85, lowest since November 30, 1950, and the 65 slocks making up 3.043 the three averages fell
since February puints-widest Put
11-to 187.29, lowest level since
has
next month.) And this ent the pound only be assured if the Internal But those value of the pound is held
Government--and that
Britain foreign holder of sterilng or businessmen who bad for a long time past have payments to make in woge-induced sterling-might regard it as an simply we are paying ourselves act of desperation to hold an loo much for what we produce. untenable position. It remains What must be removed-and to be seen
what the new measures are Intended lo remove-Is the attitude
of aind that impels trade unionists to ask for higher wages when they not justified and employers to pay them for the sake of in- dustrial
peace and pass the cost on to the anal comsumer- who is just as ilkely to live in Montreal or Brussels as London or Manchester.
That is the situation we must watch to see whether the new measures
having HTC desired long-range effect. London Express Service.
Wage-Induced
are
October 11, 1955.
Texas Co. Textron Inc. Tide Water An. Oil Time Inc. Union Carbide Union Pacific Riway United Aberaft... United Gas Corp. US. Foll "B" 1.9. Gypsum US. Line Co. U.S. Rubber U.S. Smelting 19, Steel ...
Warner Bros S Westhighouse Electro Western Union Tel. Co. West Va. Pulp & Paper
U.B. Steel 7" of pf
boosted to The drop today more than 28 billion the loss in market values since the highs Woolworth of the year were set on July 12. American Stock Exchange zales today rose to 1,180,000 shares from 770,000 traded on Friday, and were the highest since June 10 when 1,410,000 shares changed hands,
·Bond stlil
volume amounted to | $5,010,000. in
Meanwhile the Government have Jinked their bank rate move
with the announcemETIT
So, notion there had to be. But having reached this con- of measures to restrict clusion the Goverriment had further the flow of credit at little choice in the surt of home. This means hardship to action I could take, It was businesses and individuals right to rejeti an autumn alike. But these tre hardships budget and physical control of that must be borne if the imports. The immediate crisis ultimately greater hardship of is not in the balance of pay-inflation is to be avoided. ments or even in the present
rate of internal infiction (which
is not so much different from
whint it has
time).
acute
been for a Jang most
It was In its form,
crisis D
confidence.
of
- Readjustment
Rightly or wrongly foreign holders of sterling Gelieve that general readjustment
#1
of
European exchange rates is on the way and that this must
affect the sterling-dollar rate
of exchange. The danger of
the situation was not so much
that s opinion should be
Cotton Futures
Edge Higher
In New York
New York, Sept. 23.
shares
HONGKONG
STOCK EXCHANGE
Our Own Correspondent
Business done on the Hong- kona Stock Exchange this morn-
ing amounted to approximately $350,000, Noon quotations and
the morning's transactions:
Bbarce
6536 BANKS 2012036 Iwak ..
JI || SHIPPING
10
Wheelock
Bayar Bellers
DOCKS, ETC. Dook
000
30
7.75
63 2000 34
105 10
Pylient (0) 1150 11.90
(XCD)
H
LAND, BTC. INC Hotal.. sats 213
Humphreys
United Pres.
New York Sugar Market
New York, Sept. 23.
World No. 4 sugar futures
closed today two to 15
RUBBER Amalg
UTALIITES
Tam XU
Yarambit's **
18
WORLD RUBBER
MARKETS ·
New York, Sept. 23. No. 1 Rsa Wus quoted at 20 Rex rubber futures today cents.
closed 26 to 40 points lower with sales of 34 con-
tracts.
Bept.
Nov.
Jan.
Mar,
May
Sept
Standard
contract
20.10
2.20
29.30
29.30
29.30
20.30
20.30
closed 20
to 40 points lower with no sales reported.
20.10
20.20
SINGAPORE
The market opened lower on disappointing overseas advices and eased further on state bull liquidation.
At lower levels there WIN some good interest for lower sheet. There was also some fair interest in remilled grade
and some factory enquiry.
Futures:
No. 1 rubber per ib. Oct. 85-8312
Nov. 840 No. 2 rubber per lb. Dot. 3-3 No. 3 No.4
29.30
20.30
1
29.30
39.30 Pho
Spot rubber timbaled ... Barket crepe
2016-0014
TIL-7314
14.40
The market drifted lower in company with tho foreign markotis, and tho alock market slump and awaited foreign ex- chango
developments. One spurce
observed that there was little buying interest, there was pressure to sell rubbor hero."
No. 1 pale drape....
LONDON
Prices closed today in pence
per Ib. ́as follows: Spot No. 1 .....
סמיי
33%
200 19.75
16.20
Oct.Dec. walic
Apr/June
Settlement house torm:
口味·
BUT
24-20
Jan./Mar.
July/Bopt.
25-201 [2014-2016
General marketa, cif basa, porte:
150
10000 1.524
In the
23
1100210, Malaya included some 102
shipment maricot, reported small sales out of
Dept.
cxt,
Nov.
24% buyerN 2442-20435
Sept.
Oct, four sheets at 2714 centa
2706
101
AMSTERDAM
The rubber market was easy
C. ZARI (0) 18.20 100 1000$ and three sheets at 28% centa, today. Pricca closed in guilders
(RU) 12.20 323 Electric. 2735
21.30
124
Telephoge
STORES, ETC.
WALON
Dalry. 13.00
COTTONS Nanyang ..
MISCELLANEOUS Enter...
1234
213
2109 cost and freight. That business per kilogram, clf October as
was consummated in the forc-follows:
noon.
No. 1 rubber Nu. #rubber Afterward, bids wore scaled No. 3 rubber 1000 @ 18.50 down around 4 cent. Locally,Na, I crepe
GILT-EDGEDS
GAIN
IN LONDON
Londen, Sept. 23.
points lower with sales of British Government bonds
324 contracts.
moved ahead on a broad
*
136 hom.
2.36 paid
24 nom.
20 nom.
United Fry.
P.OBIE.A
COMPANIES
PASSENCER/FREIGHT SERVICE
PENINSULAR & ORIENTAL S.N. CO.
Leaves London Bes Hongkong
Closing Prices
Alden Inc. Ag
# 1894
the
Allied Chemicals
Allied Mills Inc.
Outwards
All Chalmus
2911
American Airline
19%
The domestic No. d sugar
American Cable & Radio Corp.
futures closed unchanged to
American Cyrdamide Co.
Amer. & Forgu. Power
three points lower with sales of 15 contracts.
front today to highlight the stock market on
"CORFT"
Sailed 21/9
Es Port
the
"CARTHAGE”
Beiled 18/3
2th October
2011
40%
25
wak
lower raw market and weak- ness In other commodity markets influenced futures market sentiment,
Gilt- London Exchange. edgeds gains ranged to more than two shillings.
"CHUSAN”
*
1st October
30th October.
"UANTON"
16th October
*
Elsewhere
BOT
Am Brake Shoe
Am. Gas & Electric. A. Mach. & 'dry, American Metal ... Americon Smelting Ain. Sugar Bet American Tel & Tel American Tab. "B" Anaconda Copper Armco Steel Armour... Allos Cons, Mining Balwin-Lime-tom. Baltimore & Ohio Beneficiat Finance Benguet Cons..... Bendix Aviation Corp. Boeing Airplane Borden (The) Co. Burroughs Add Machine Campbell Soup
held-important though this is Cotton futures today opened higher and navigated Canadian face it.
but that foreign exchange operators could back their fancy with little risk to them- selves.
Even if they guessed wrong their losses would be limited New by the fact that the exchange rate is pegged at $2.78
on an even keel for the rest of the session.
די
October liquidation, plus
In raws, countries other than Cuba were said to be doing a 13 good
of the current part
473
69
business.
Dealers suid Formosa secured the business over the weekend on a tender by Iran for 20,000 tons of reined. Egypt is ex- 30% peeled to hold a tender Wodnea- day for between 10,000 and 40,000 tons of raws
| Case (3, 1) Co.
Cat Tractor
č. 1. T. Financial Corp.
20,20
Chase Manhattan Bank
Dea./Jon
Chrysler Motors
Oct.
20.02
Mar/Apr.
24.83
Climax Molybdenura
May/June
27.01
Cluett Peabody
5015
Mar.
July/Aug
Colgate-Palmolive
May
SAO PAULO
Colombian Carbon Co, Commercial Credit
Яept.
Commonwealth Elec.
Cotton
futures closings, in cruzeiros per kilo were as fol
Closing prices ruled five to New contract Oct/Nov, eight points higher. Opening prices were up three to 13 points. Orleans closed up slx to eight points. $2.82 Stability reflected the con- te the pound. And this know- tinued light supply of hedge ledge has encouraged specula- sellings and less favourable crop tion against the pound of A comments. especially from scale which is not justified by central belt sections. Serious the facts, and which might not deterioration complaints origin- have been undertaken of all if sted from that area following the dealing margins were wider recent persistent wet weather, and would - bo speculators stood to got their fingers well and fruly burned.
were
serious
turging
OCTOBER CONTRACTS
That is why many
Evening-up operations in the economists
the October delivery, anticipating Government to allow the ex-Brst notice day tomorrow, pro chango rale to fluctuate within
vited another feature, Open wider Hmails to discourage the October contracts today totalled purely speculative part of the 87,500 bales, recent run on sterling. Having few,
Traders expected any, Initial tenders. The rejected this course, however, corileated stock totalled 3,321 the Government was left with bales, down 200 bales from the no alternative but to raise the previous posting a week ago. rate and not by any "normal"
they got off."
Stock market, weakness,
lows!
Detober December March
May
July
36.70
31.05
39.50
39.25
39.38
In the United States, the average price of one-Inah cotton at designated spot markets was not available.
Total sales at these 13 markets were 26,887 bales-United Press.
London Foreign Exchange
Consolidated Edison Corvinental Out of Del. Crown Zollerbach... Cuban. Amer. Bugar Diamond Alkali Diamond Match
Douglas Aircraft
Dow Chemicals
Dupont de Nemours
Baglern Airline
Eastman Kodak
El Paso Nailona: Gas Family Finance Corp. Firestone Tyre & Rubber Ford Moto ... General Electric General Foods Gen. Pub. Dül. Gdden Co.
Goodrich (BF.) Co. Goodyear Tyre -*** QUE OU
Heyden Newport Corp. Honestace Xining Co. Ingersoll-Fond Inand Steel Co. interchemical Corp.
1 Budnem Machines Int) Harvester ... International Nickel International_Raper Imi? Tel. 4 TEL J. Ray Modennokt 19.2336-19.3454 +1 Fahn-kanaville Co 11.0823-31.001 Katser Indhadhes 14.4845-34,43
London, Sept. 23. Closing rates were:
27334-278-15/10 1.53||~200-3/16 - 10.610471A 150.82-159.70
amount but with a forcefulness along with the discouragingly New York that in the words of a Bank of slow textile trade, drow coll Montreal England spokesman showed foreign speculators
ment, but sellers were wary in Amsterdam "where face of the mare uncertain crop Copenhagen
Brussels picture.
Frankburt Mile NEW YORK
Cale Prices of cotton futures closed || Paris The debate that followed today as follows:
Stockholm
1449-1445 Vienna
72.32-73.34 Zurich
19.10}L-12.10% Others unchanged.-United Press.
The Risks
concerned-aa 11
when the bank rate
but in this case
always
doca a raised with greater
emphasis to match the greater
To the risks that
It is said and righty-that
the ill, affects of an increase la
inherent in the
Uge of
monolary weapon.
Apot October December March May Dro
July October the
December March
NEW ORLEANS
today as follows:
Spat October
March May July October December March
Rahón
7137-7234
11761-1176
Exchange Rates
Business was done in the unonicial exchange market
Beal
the bunk rate-through the • Prices of cotton futures closed morning, at the following rates:**,
of the
general slowing down economy caused by higher in- terest rates-are more casily December foreston than the hopod-for advantages. This because
the latter are for the most part paychological and since they involve human reictions almost imposible to predict.
What is supposed to happen that those who have
3124
LIVERPOOL Cotton future closings, in pence speculated against the pound, were as follows:
cotitenes · Det/Nor.
DG/Jum
May/Jus
will soợ tho orrors of their
Ways and become "bulls of sterling" But what is just qa
#64
1.8. dollar (per (31)
Henricoot Copper
Liggett Meyers Tob. Co. Lockheed Aircraft
Lowwn incorp.
Lone Star Cement Co. Lowotein & Bons McDonnell Alterait
[Sidek _Exgo.).
Membining
Iron Corp
Missiya Development Monsanto Chemical Co. Motorola Inc. ***** National Cam Iteg..
Dairy Prod,
| National Lead
National Steel Corp. New York Central.. Sterling notes (per £1) ........ 18.64 Norfolk & Western Ry. Australian suites (por 1)
Oùn Mathideon Indonesian rupiah (per 106) 1270 | Otis Elevators Alam Úcal (për 100)` Singapore (štraits)
NAMESAKES
1134
2
Answer:-1 Jump, 3 Stewards,
3 Tournament, 4 Doublox, 5 Eidem Une, 6 Volley,· 7 ·Backhand, Barvice, 9 Labbed; 10 Stroke, 11 Champion, li Wimbledon, 13. Partner, 14 Rally.
Jaroslav Drobnay,
Owen-Illinois Clas Oxford Paper
Pacio Das & Elec.. Pan American Airways Paramount Pictures Parke Davis
Panas Ball O». Philip horrie Procter & Gamble Co. Pittsburgh Plate Glam Publieker Industries
Fury Ofte Radio, Corporation
Repubila Stool
Reynalds Mutat. Beers, Roebuck & Co. -
Contract No. 4 (world)
4.45 4.04
the market was steadier after the confusion end last week sharp sell-off late occasioned by the rise in the British bank" rate of two per cent to seven per cent. At the close, however, there were good sprinkling of fractional losses.
HEADWAY
Tobacco made limited head- буду. Firmness was apparent Στι the selected department store shares. Finishing on the 3.00 CAST side were engineering 3.80 steel.
textile and shipping After 3 mid-session 3.00 shares 300 rally all shares closed lower. Spot-teents per lb. fob Cuba) 453 Brillsh Polroleum
countered the trend with a small gala.
3.00
Open interest; 2,500 contracts
Contract No. 4 (domestic)
Nov,
5.08 5.49
301%
Mur.
MBY
July
Sept
Nov.
4976
ex-duty)
סינ
Spot-(cente por ib," elf"NY"
Open interest!
United PreSA,
915
Foreign bonds were easier. South African gold $5 steadied around the day's lows o selling pressure dried up. 156 Coppers and other base metala czard fractions. Dollar stocks 8.70
reflected declines in Wall Street. -United Press,
contracts.
"TOP OF THE BILL'
DO YOU EXPORT TO BRITAIN, THEN WE ARE INTERESTED IN YOUR GOODS.
}
WILLIAM SMITH (GLASGOW) LTD. 33 Virginia Street, Glasgow, C.1,
ARE OPEN TO RECEIVE SAMPLES AND OFFERS ON THE KEENEST PRICES FOR:
Textiles, Clothing.
(2), Shirt, Khaki Shirts, Jeans, for Men, Women,
36669 82
Woollon Gloves, and Knitted Garments, Children's Cotton Frocks, Rompers, Suits, etc.
Boys and Girls.
(3)
Ladies Blouses (Nylon).
(5)
(6) Toys.
(7)
Fancy Goods,
WE MUST HAVE THE KEENEST AND BEST VALUE TO BE AT THE "TOP OF THE BILL" IF YOUR GOODS ARE RIGHT THEN GET IN TOUCH WITH US.
EXPORT: WE CAN HELP YOU IF YOU ARE
INTERESTED IN ANYTHING. MADE IN. SCOTLAND,
LET US QUOTE FOR ANYTHING YOU IMPORT.
*
3rd November
30th November
18th November
Vis Southampton, Colombo, Penang & Bingapore, Homewarda
"CORFU"
"CARTHAGE" "CHUSAN"
"CANTON"
Leaves Hongkong Due Landon 26th September 27th Outober
24th October
24th Nove) Me
22nd November 3rd December
Via Bingapore, Penang, Colombo, Bombay k Adia,
FREIGHT SERVICE
due 28th Sept.
"SOUDAN" loads fad Och
from VS.
for salix 3rd Oct
Aden. Pork_Bald, Alexandria, Genom Marsellies, Casablanca, London, Hamburg. Hot- terdam & Antwerp.
from UK.
*
*
"SURAT
*
*
"SHILLONG"due 21st Nov.
*
BRITISH INDIA S.N. CO., LTD.
1458 A hundred YEARS OF SERVICE — 1954
"BANGOLA” Ja' Port
from Calcutta, Rangoon
Straita
salle 24th Sept. "OLINDA" 4os 28th Sept. sails 29th Seph
"ŜANGOLA” due 15th Oct.
saža 18th Oct
for Japan
from Jupa
fay Singapore. Penang, Rangoon Calcutta
from Japan for Eingapore, Penang, Rangoon & Calcutta
P. & O./B. I, JOINT SERVICE:
"UMARIA” due 8th Oct.
solls 6th Oct.
due 10th Oct. salis 12th Oct.
"TIRIA"
+
"OZARDA” dus Lat Nov. salia Jed Nov.
from Karachi Corbin, : Colombo & Struita Let Japan
Krons Japan
for inapore. Penang. Port Madron in K
from Karachi. Bombay, Cochin & Bingora for Jepan
EASTERN & AUSTRALJAN 5.S. CO., LTD. “NELLORE" duan $th Oct. from Australia
“AKAFURA" load/4th Cot.
Katie Bit Ock.
for Labuma, dandakan, Haball, Brisbane, Syd-
peabourn
'Lou
Adelaida
All vessela have liberty to call at shy beria on or of the route'& the 'rente a mailings are subject'
to change or amendment with me.wilkoná moštos.
For full particolars apply to: MACKINNON. MACKENZIE & LU OF HONG KONG LID Tut phone Ny- 21721 1