THE CHINA MAIL, MONDAY, JANUARY 20, 1958.
TRADE and COMMERCE SECTION
Boost For Businessmen's Confidence
New York Stock
Week's Review Of The US Economy Market Review
"INDIRECT" ACTION BY
GOVERNMENT
TO HELP SITUATION
By IVAN ZERINA
New York, Jan. 19. An unexpected "easier money" measure raising credit for the purchase of stocks, and President Eisenhower's statement that he would prefer deficit spending to boosted U.S. an increase in taxos, businessman's confidence last week. Although the President, at his press conference on Wednesday, stressed this was not the time for any direct government action to help the economy, he left the door open to any of the "indirect" measures on the part
came of them Administration. And one within hours.
HONGKONG
STOCK EXCHANGE
NEW YORK COTTON US Cotton
MARKET REVIEW
New York, Jan. 19. Cotton futures operated from a defensive position attention last week as traders divided between the slow textile trade and confusion over new farm legislation possibilities. Our Own Correspondent
At Friday's close the list ruled Business done on the Hong-off 30 to 54 points $1.85 10
Stock Exchange
this $2.70 a bale-lower than kong
$314,000. Noon quola- matamounted to approxi- proceding week.
Spot March contracts at 35% tions and the morning's trans-cents a pound showed a cumula- tive selback of 150 polats-$7.50 a bale-fruin the season's high established on Dec. 30.
uctions were;
Share Buyer Selters
BANKS
Fast Ala..
lon
bombard
0471
INSURANCES
15
*
6.45 6.50
121
SHIPPING Wireticks.
DOCKS, ETC
K. Wharf..
It was the reduction by the Federal Reserve Board Provident
of margin requirements on the purchase
(N)
ATK Hotel..
or short sale of stocks from 70 to 50 per cent. LAND, EŢU, The move, in effect, makes it possible to borrow half the market value of
12.10 2.30 11.20, 11.50
GALER
+850
5 @ 047.50
10.30 14.30 1,000 18
listed
HK Land
1.500 u 18,10 2.500 18.2 1,000 16.30 3242 17 1500 3224
15.80 50015 09 135
1.325
securities instead of only the 30 per centumphreys permitted up to now.
The financial district hailed
Healty
ACEBER
Trust
re-
24 24.40 noty
100 03
be the Amalg One of these would
in the the move
Federal long expected cut as further action to counteract the current discount rate the fee charged UTILITIES
Tram business recession and the de-member banks on borrowing Yaurati
10. 16.99 which at present is pegged al 3. Light
400 17 the stock market,
500 10.00 Some Congressmen
20 44 30.70 The New York Stock Exchange per cent.
on have called for a eut down to 2 Electric 20.70 26,90
1,000 25.00 opened strong and active Thursday with some gains per cent to help stimulate
20 28.20 2200 20.0 1,600 sf 20.10 high as $3. Initial trading was
ellae in
from
UNCERTAIN
the
But other observers were less certain on that score. That coterle thought some loopholes uncovered In the might be Agricultural Act which would termit the administration to go ahead with Its lower support and higher production plans.
The
Goods Market
| LONDON STOCK the business
MARKET
this way.
They took
expectations
were based
cotton.
BY ELMER WALZER
New York, Jan. 19. Railroad shares starred in a higher stock market in the past week. They registered their widest gain since the week ending Nov. 25, 1955, and reached a new high since Nov. 11. Railroads were in the news | City Southern, Northern Pacific, all week as Senate hearings Katy preferred and Western brought out their ills and set off Maryland. Indications something would be done to help them. In addition, | Wall Street bolleved the group had been oversold.
Motors ruled Arro Du Font gakkod 43% in" tho' chemicals.
traded Of the 1898 ICS 1,047, 214 deciked and 137
It was
the hald unchanged. smallest decline total since May There were 52 new
21, 1950.
highs and 20 new lows for more than a year—United Press.
BOMBAY BULLION MARKET
was
Now York, Jan. 19.
Next in importance to the rail Sallora of cotton gray goods news was a cut in marging from
reported another wook of 10 per cent to 30 per cent made Federal Reserve on slow trading, oxtanding bythe
Wednesday after the close. Next stalomato
day the market ron up a volume existing sinco before at nearly 4,000,000 shares with Thanksgiving, into the i tickers late as much as eight third straight month.
minutes but prices slipped back Buyers operating with incress after a sharp first hour rise.
RAILS GAIN ing caution since tald-November London, Jan, 19.
became increasingly wary last Uppermost interest centred on The markets have had
Rails gained in every session week when they found an in- the farm legislation picture.
quiet week, with activity creasing amount of basic print of the week and their average Administration recommendations
cloth and broadcloth fabrics closed at 107.10, up 0.94 points shrinking each day from
the week, In tho week for lowered supporte and in-
coming out of second hands at on brought creased production
Monday's 8.800 bargains lower prices.
ending Nov. 25, 1955, rails
Bombay, Jan. 19. closed at 167.83 up 7.78 points recurring furries of selling.
to Friday's 6,400.
development proved for That
the week,
bullion market helped by The What chiefly impressed the keenly disappointing to weavers anticipation of several rall stock However, reactions met
dominated by the marked underlying demand from trade City of London though not who had counted on a business splits.
strength of gold, where and commission houses on the headlined in the press were pickup getting underway right
Utilities closed the week at belief that expressed opposition the trade retums for November ufter the New Year. Optimistic 71.38 up 144 and a new high
values touched new highe leading
for sororal months in the. agricultural and December, spokesmen to the drainistration What the City did was a little three factors: 1. Reductions in since July 15, 1997.
The average for 60 stocks
week to January 17. the surplus mill stocks accomplish ariahed the week at 15441 up proposals lessened the chances arithmetic.
The buoyancy was attributed for any legislation now which@gures for Imporis and reduced ed after weeks of curtailed 3.63 points and industrials were to the seizure of some contra- could be applicable before the them by one-ninth in order to operations. 2. A heavier
band at 444.12 up 0.44.
supply, and striçler 1959 Crop.
get the actual value of the goods Lucklog of unfilled orders.
On the basis of the Standard vigliance in anti-muggling $c- landed; repeated Investigations The high cost of raw
500-stock Index, the tivities by both India and East have shown that the one-ninth | BrokerS felt the mills have & Poors
rose by 13 cents a Pakistan. represents the cost of carriage, achieved a position where they whole list
Stocks at the and walt for share which means the valuation
end of the could "sit tight" Insurance and freight.
of all listed issues was enhanced period were 20,000 tolas" with But these three items really the buyers to come Into the
by $3,400,000,000.
arrivals and office balanced at of in-market.
Wont Street construed the 3,000 tolos." belong in the category visible inde; they are deducted
SALES
also margin cuts a favourable "invisible"
The sliver market was from the country's
market cheerful though some profit- Instead, Inst week second development but many income from shipping, to show
in hands cales
developed on the experts believed it would mean faking at the bulge ensued. the true net income earned
10 the market until markets bellwether 60-square 1ttle
Traders attributed the better Handled $11 this way, the print down to 17 % cents a yard, business turned for the better. tendency to smaller then anti- erep arithmetic showed that if Bri- this came within 1 cent of the Most of the trading in the cipated arrivals as well as talk in old action
of higher costs for Tibetan deliveries, besides reflecting the tain had 10 more months follow-12-year-low registered in mid-market is fcr can just now.
Most mills demand and the Ing the pattern of November October last year.
DEBIT BALANCES
colns. pause in mili
at the end of the Stocks dullness
their in textiles, also was and December,
exports have held for 174 cents a yard.
The stock exchange reported period were 1,500 bars and off- Indications that and re-exports would, at the belind the STORES, ETC.
coupled with The motivation
Wholesale dry goods
that net debit balances take 15 bars daily-China Mail in end of the year, 130 18.30
exceed their Weck showed a definitely cauti- lowering of the margin require Diy
11,00 12 156 21.00 the tight supply eltuation
white cotton, which was an im-imports by somo 200 mulien cus attitude, Many users were customers in December declined ments on purchases and short-Watson
portant factor in the recent sterling-a favourable balance decidedly reluctant to go too far to a new low since Dec. 1954, selling of stocks was the CUT COTTONS
sharp rise has been relieved to of trade. Reserve Board rent
forward for the time being. and were down 306 milion for The Federal
of "speculative Textile ..... absence
The debit balances for Nanyang...
a considerable extent by pales
It gave much pleasure to the They wonted to see how the all 1957. Indication that pressures," customer credil action was an
out of the government clock.
hord-pressed community, though stock market bchases ever the represent the amount borrowed by customers to buy stock on business concern has gone full buying or "currying" stocks was INVESTMENTS
anti-inflation
December 1955 Yangtze "...
nearby term and possibly detect down from
margin. circle
Moreover, it was reported, there are no illusions that
in- It was noted that the anti-deflation measures in the peak of more than 4 billion to
many milis have lowered grade more such months can be easily therefrom some clue on future
averall business prospects. reports of 3.6 billion at the start of De-
slin requirements
that the managed. wake of continued
and
mills who have dustrial department met further cember 1957. Broker and dealer
Conversely, dermond in principal
spot higher unemployment, layoffs, and drops in both indus-credit was down from 2.2 billion
been holding the price line for stance when the average got markets currently is said to be
burdir at billion at Trial production and personal in Dec. 1955 to 1.8
for medium grades.
But things were steadier than week said they would consider Up to 450, considered
a further curtaiment of operamen said, however, it easily income for the end period of the end of 1957.
they have been, Domestic Taw
There was a steady demand tion along the lines of the recent could be surmounted if the rail- suraption during December
continued to lead The for British Government stocks, Christmas vacations if the price road issues proved disappointment.
and situation storts to deteriorate the market higher. last month of which lifted old Consols
Trading was active, thanks to Any further. The Directors of The "Star" disappearance
For With the price of raw cotton the big day on Thursday, Ferry Company Limited, un-671,287 bales came about 30,000 War Loon by 5 shillings.
under expectations and But more interesting perhaps
the total reached nounce that at the forthcoming bales
with 656,205 bales was the steadiness of the lead-where It is, millmen said they the week
shares. A dally Ordinary Yearly Meeling of the compared
any even more" if the market con-average of 2,419,521 shares, of the 1947-48 average three hand and increased spending on Members of the Company they used in November and G30,030 ing industriais: they had just would be forced to cut output 19,097,003
consumed in December, enough buying to absorb
Higher than last week's 2,230.080 points off the November level sales promotion and advertising will recommend
the payment bales
The dally rate use in pessimistic selling and to lift tinues to slip."-United Press.
overage but well below the and eleven points out the record on the other.
of Final Dividend of $5.00 1950.
3,208,795 share average for the the real strength December 1058 level.
was best A Dallas, Texas, department per share in respect of the year December this year was 28,564 prices by 6d of a shliling. But
| bales.-United Press.
week ending Jan. 3, à four day Personal Income, us recarded
shown in the absorbing of the
week. Department, store, for exemple, ordered its ended December 31, 1957.
selling. by the Commerce
With the Interim Dividend of to discover possible fell to an annual rate of 343 executives billon in December-down 2,3 economies by personally under- $3.50 pald on August 31, 1967, taking all jobs own to the this will make the total dividend billion from the November rate.
Unemployment, as measured west level. As a result costs payment for the year $9.00 per by the Labour and Commerce; have been trimmed eight to ten share, departments, rose to 3,374,000 in per cent, including a cat in the mid-December-an increase
as
In huge-blocks-for example up
to 10,000 shares in Royal Dutch -as bunched orders accumula- ted during the night.
1957.
Industry
to
Industrial production dropped
In December for
fourth
straight month. The Federal
the Telephone lo everyone, reduction is cx-
INDUSTRIALS Cement
llow of credit Generally a
pected soon.
from
Mixed Picture
the
Reserve Bourd
output of the nation's
the index of
The plcture of U.S. business mines last week was a mixture of con-
retrenchment on and factories was 130 per cent tinued
one
of
number of porters.
nearly 200,000 over the Novem- trend ber lovel and the continued in the form of exten- sive layolls since then.
Psychological
23
4.30 4.05 1.40
5.30 5.45
Star Ferry Dividend
SINGAPORE
STOCKS
As another example, Trans- World Airlines
is revising lis list of company-paid gold club memberships of its employees in see how many can be eliminated. One the other hand Borg Warners Norgo Division gave a show
Singapore, Jan. 20, 5,000 parly in Chicago
Brokers today quoted the of refrigerators; its new line President Lines announced plans following stock prices: to increase advertising by ten
and Ford's Batu Lintang Rubber Co. per cent this year.
244. British Borneo
Workers idle as of Dec. 15 represented 6.3 per cent of the nation's labour force. This was the highest level in three years und the highest December figure since before the Korean war. The latest tally placed the num- Edsel has offered higher bonuses
ber of jobholders at 61,390,000 to its dealers.
down 477,000 from mid-
Ord, This last move came in the
cotton
con-
Production of US Cars
Detroit, Jan. 19.
STEADIER
4
10
Oils were rather disorganised, though by the end of the week they had digested a good deal hned of selling. loyal Dutch,
sterling, but Shell Transport closed unchanged, and British Petroleum actually gained shillings.
2
IN
not
39 be,
inst
Swiss Gold
Bar Market
this time.
major Market
So far this year trading has run neck and neck with a year ago-27,493,801 shares against 27,856,346 shares in the 1957
period. At the close this past
week, utilities show
gain of 2.10 points over a year £80, while industriala are down 3334 points and ralls are down 44.03
Individual gains in the ralls
Special.
Paris Gold Market
RalliesTM
Paris, Jan. 19. After continuing its down- ward trend early in the weck to January 17 the gold market rallied sharp- ly at the mid-waok.' This reflected the Govern= ment declilon to ask the Ne tional Assembly for a vúto of confidence, which was iskan to indicate increased domestic dif- culties for the Government.
Franco-Tunisian tensión also caused concern in gold quarters. The rally was abort-lived, however, and bola Ingels and coins returned to the earlier. ¡ow levels.
Towards the end of the week the market was besttant and idio with dealers reluctant to undertake new commitmedia.
The favourable, vote for the the Assembly Government in had little Coia!
effect--China” Mall Kansas Special.
Western
Zurich, Jan. 19. Gold shares
The Swiss gold bar market points, to popular as they used
because
displayed a steady ton, partly
the City 13 troubled by the
dency in the week to ranged to 4 points in political
Paclie. Advances of more than reported from January 16. While demand a appeared in Atlantle
Dia-
was moderate, sellers were| Line, Great Northern, reserved.
Ward's Automotive Reports acrimony daily
South Africa. De Beer
G
The Bank of England has con-
Bald today that despite monds enjoyed some good buy- scattered shutdowns autoing, which lifted prices by production this month shillings, but the old gold finan will be the fourth best clul shores were all down by 1siderably restricted its volume January **** $1.07
Opening
Petroleum
Byrdient:
Tin Smelters Consolidated Tin
401
ZBH od
tory.
Neava 715% cum.
$4.00
pret
unemployment statistics is ex- of the Edsel Division with the Gammons (alaya) Ltd., $2.00
Division to Hongkong plained by the fact that not all Lincoln-Mercury perzone without jobs immediate "effect operation ly register as unemployed.
*
静
economies." Banking Corp.
Shanghai
$450 Es d $1.00
Dr 2
total in
hin
rc-
of transactions and sold virtually shillings. Japanese bonds dominated the no gold in the week.
Demand from the Middle East | The foreign market.
was com- Wards predicted about a half.senteds of the 1907s jumped was limited, but it November. The discrepancy be-
£3, those of the 1024s Jumped paratively good from the Far TropiceJob-face of news of further Ford-Fraser & Have Lid Ord. 14.075 million cars will be built this and of the 1930s, E142. East and South America, No tween the
month, fewer then JanuaryThe assenteds
had scattered orbitration dealings word holders' figure and the rise in Edsel layoffs and of the merger
production in 1935-50-37 but rises ranging from £1⁄2 to £1. parted. better than all prior years.
The gold coin market was German 01⁄2 per cent Potash Wards said production for the non-assenteds lost £1, but the weaker in the week and price final ten days of the month is assenteds of the 7 per cent movements in Paris failed to in- fluence it. Sovereigns fluctuated being "geared closely to sales Potosh rose £1.
Premium for dollar stocks widely, but on balance nd will be trimmed or hiked accordingly.
closed the week unchanged 31 steady, with repeated demand from Greece a supporting factor. plants 8 per cent-United Prosa.
Vrenells were also generally steady, while Napoleons tended Prices for 20-mark to wesker gold coins were virtually un- changed, but there were in- prased offers of United States Bags China Mail Special
Bongkong Tin Ltd. The layoffs of 1,500 men will be Kumpar Ltd...... Both Wall Street and Wash- at Ford-Edsels Loulaville plant Kuala Kampar Tin tington looked upon the lower- starting on Feb. 1, Ford of Linas Rubber Estates Lid. $2.00 ing of stock margaln require- Carda is suspending production Malayan Breweries......... monis primarily us a psychologi- for seven days to adjust field flecting SOEK the inventories," cal step. Spokesmen Bnancial district were pleased, 0,200 workers at Oakville and of course, but they pointed out Windsor, Ontario.
for
that people who really wanted
to buy stock would have bought
it at the old 70 per cent rate,
too. They also pointed out that
people who really know about
Better Things
Predictions of better things to
business seldom regard stock come were golore. Standard &
boom
and
Production in P.S.
this part woek was estimated at 129,022 cars and trucks,
$3.40
New Serandal Rubber Co.
Ltd.
$2.50
Petuling Tin Ltd.
$2.30
Taffles Hotet
$2.00
Singapore Cold Storage
$0.01
Straits Tuding
$1.00
Straits Blenmip
$10.00
United Engineers Ord.
$1.30
Wearne Dr.
$3.12 -China Mall Special
down 0.1 per cent from the 199,088 week assembled the previous
and 22.8 per cent below the same week last year.
markel rises as necessarily re-Foors sald in its annual forecast Agreed Merchant Rates weeks before, flecting a business
for 1959 "the business recension should end within vice versa.
However, they said, to the months. nation
Allowing
A
few sub-
Canadian 3 Maximum Selling,
Minimun 17-1/10;
Buying, a whole activity on sequent improvement, we look | 17-6/16 T/T, 17% 0/D. the stock market is a symbol of for small full-year dips in in-
Belgian Francs: the country's economie health dustrial activity and total cor- and in that sense the Federal porate profits
Reserve Board measure is more
approximating level."
with dividends Selling 837.
the record 1957
Bank of England Statement
►
-10,446,015 204,150,000 200.74003
84418303
Car production was 110,540, down nearly 10,000 from the
London, Jan. 19. truck production
The Bank of England state- was 10.070, up more than 1,000.
Wards sold Chrysler Corp. mont for the week ended Jan.
15, reeds as follows: eut production by 30 per cent Notes in circulation
$1,094,772,012 but in the first ten days, *Pablla deposita' Maximum January created "bright spot" Private deposits...... in sales as its penetration of dovernment pecurities.
the other securities the market Jumped to
Receipts highest monthly level since last Batlo October."
Studebaker- do the most good where it is electronica industry, predicted a
Corp. at South Bend. Dodge and De Boto here were most needed-casa recent "tight general production increase money" policies to the point Avu per cent with "some aeg- Bosses was done in the tool Idied last week for Inventory
Answers-1}·- this adjustments Plymouth cut back where busincay will again think ments in the industry looking unomista unchange
much more at the following this production, Buick cancelled last of Investment and plant expan forward to a boost of
1.3. dolar (per $1} sion instead of tight inventories as ten to twenty per cent. The uteria noted (per 211 pun ind
roonomies sales and servito gross in 1938 Australians noted) (per £15 personnel further measures will be neces-may mount: 10 about 14 Indonesian rupiah (per 100)
Siam Utsi (per: 100) hitları,"isUnited Press.
Eingapore Ustratio)
than justined. It should raise
retail sales, for example, bat to
sary.
Wards sold Electronica, a magazine of Exchange Rates Packard
of
markets
NAMESAKES
Languages,
Conjugales,'
Bank Of France
Statement
were
Paris, Jan. 10..
The Bank of Francó statement for the week 'onded Jan. 9, reads [as follows:
Total gold holdings i
Tolal other surreccion Bight bejerice · abroad
Consonantu, 2 BATATA DENK ALCOUTIN 18 Saturde Assembly Fit Hounde, Brother, O Grammar, pancing in clerus
atu Ford (shut down five plante 7 Foley, 8, Philology, German, for leak Saturday. - United 10. Wilholm.
·Jacob Grimm.
201301301420
11,771,000.J800
750.655
Current MCOLDSĄ
SHIP
BEN LINE
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by our Staff Photographers
Police Sports Boundary. Sträet Annual Bisley, Kai Tak Range Children Visit U.SS Chandiler. Children's Party Aboard U.5.5. Wiltsle Photo of Mackerels Taken Off Lamtong Island Inauguration 25th Kowloon Boy Scout Group, Morse House Dedication. Tung Cọ Wan Lutheran Church, Shakir Far East Fleet Rifle Intg. at Stone Cutters A1 Local Sportis.
Local Presentatiahs Local Weddings
Exc. Etc.
Available at
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