THE CHINA MAIL, TUESDAY, JANUARY 21, 1958.
TRADE and OMMERCE SECTION
Confusion Over Thorneycroft Cleared
NEW YORK The US
COTTON
The £50 Million Red Herring MARKET
MATTER OF PRINCIPLE
INVOLVED
IN RESIGNATIONS
By RONALD Boxall
London, Jan. 20. A period of foflection aided by an excellent speech from the former Chancellor has cleared away much of the confusion that surrounded the Treasury Ministers' resignations. It is now plain that the **£50,000,000 question” was in fact a "£50,000,000 red herring.”
The facts appear to be these: Mr Thorneycroft insisted that Government expenditure in the next financial year should not exceed the figure for the current fear. In deference to his wishes, the estimates were cut-by million and between £100
£200
million according to unofficial guesses-to within £50 million of the figure Mr Thorneycroft would have been satisfied with.
HONGKONG The New York
STOCK EXCHANGE
Our Own Correspondant
Business done on the Hong- Slack Exchange this
long
morning amounted to approxl imately $208,000. Noon quota" tions and the morning's trans-
actions were:
Shares Ingere Beliers BANKS HK Bank.
INSURANCES
SHIPPING
047!
·
Wheelock 10.40 10.00
Docks, Dock
K. Wharf
Provident,
(0)
NIK Hotel
Kralty..
Stock Market
By Elmer Walzer
New York, Jan. 20.
Strength in blue chip shares lifted industrial
stocks higher today.
whole moved ahead with large
Trading for the market as a Morwanto Chemical Co. ....
Montgomery Ward National Cosh Ber. "A" volume in American Telephone,
Nilional Lead.... the leader in goin as well as National Steel Corp. turnover.
Other
strong Newport Eleyden favourites brought the Indus- Norfolk & Western By
New York Central trut average up toward the re-own Mathieson cent high recovery level,
Many
81712 average group also enjoyed a good market with gains of more than a point in such oils
1 Elevators
Parke Davis Co.
as Shell, Royal Dutch, and WII- | Penny J. C. Co. cox; in such steris as Youngs-Tenn. Salt Co. town Sheet ind Tubo and Procter & Gamble Co. Lukens; in such aircrafts as
Paulin Morrip
Now York, Jan, 20. Cotton futures started the now week on a buoyant noto with now crop month taking over market leadorship.
At the close the Hat ruled off 4 to up 18 points. Opening prices were off 3 to up 18. New Orleans closed off to up 19 points.
Three factors generated priea- lltung power in forward months.
1. Double about chances for
enactment of farm legislation in time to affect the 1958 crop 2. Heavy
producer sign-up under the acreage the soli bank
rezerve
programme:
Loan To
India: Talks
In Near Future
Washington, Jan, 20, The United States offered India an economic aid
of
package of $290,000,000, chiefly in bana, to assist its second five-year development plan. The State Department said it was willing to discuss a loan programme of about $225,000,- 000 from the Development Loan Fund and the Export-Import Bank.
find
In
In addition, proposed assist- | Finance Minister, held ance would include urgent sales Washington last September. wheat, which officials valued at of the amount of aid to sime supplus United States No breakdown was avalloble
$65,000,000 and sald was introm the Develppaat Fund tended to prevent a food crisis.
the Export-Import Bank. 30% 3. Prospects for a fight statis- that an Indian Government Je is expected to leave for India The State Department sald An Export-Import Bank mission tical position on good grade cotton before the next harvest. legation would ponie jooon to study, all aspects of the
Federal oil bankers suspended United Staics offer.
Washington soon to discuss the Indian economy. temporarily signups among col- ton growers for the acreage re- |
5114
12
10%
5712
Balod
10 #5445 5847), 244
outside the
oxford Paper Co.
Owen-Ellinal Class
Pacine Gas & Elec.
Pan American Airways Paramount Pictures
132
07
54
121
15
LAND, ETC.
12.30 12.60
18.29 10.30 1000
1650
General Dynamics and National Aviallon: In
Pillsburgh Plate Glass
779%
1000
3180
18.10 10.20
100 in
such Aigars 05 Francisco and Central Violela. International Paper rose 2 In its deportment.
Pure Oil........
Pubacker Industries
321
Radio Corp. Pret
Radio Corporallon
74
Republie Steel
4236
Reynaide Melal
Bears, Roebuck & Co.
20
+4
12745 1,323 82,000 vi
120 1.25
1.30
Tram
of
could Electric"...
Yaumati C. Ligit
io)....
24.20 24.50
94.30
10 80 16.00
50.00 20.90
500 180
10.70
20 20.00 1,300 ₺
800 25.90
·100 @ 20.90
2019
24
30
TURES, ETC.
Watson 11.00 12.20 1,800
11.20 Lane, Craw
100 400 0 14.20
4.20
8.00
The ex-Chancellor dug in his heels and insisted on pruning the last £50 million to complete his formula. He made this
a matter the Government principle
that
not be treated differently from any other large spender. And the policy of the Government was to hold credit for private spending down to last year's level.
Could the Government, the If this is indeed the case, the blagest spender of borrowed Government's economic policy money in the land, give itself as stated ofter last September's special treatment? Mr Thorney-sterling crisis makes no sense at eroft thought noi and banished all. According to this there himself
back-benches could be no remedy for inflation the when his colleagues disagreed that did not include and indeed with him.
was not founded upon a control of the money supply.
tu
The case on the other side is that having made large cuts nl-
This was taken to mean that the Government would stop fin-
industries were told that they could not expect дпу more money from the Government to #nance any wage increases they might grant. Credit was frozen at last year's level. In short, the patley
RUBBER Amalg Trust UTILITIES
Macao E
Telennone
INDUSTRIALS
my ca
ement
Dairy 16.40 16.00
COTTONS Textiles ....... Nanyang 40 INVESTAGENTS Yangiato :
8.36
500 24.30
Shell Oil Co.... sinclair Ou Saint leg. Paper
Socany Meblloil
Solar Aircraft....
Officials
expletel that the
The urgent netion proposed by the US In the ald offer was de- signed to ensure supply of milf- cient grain between now and the summer and thus prevent a -
food crisis.
serve programme pending an mission, composed of technical audit of funds already com- experts and senior members of
Finance Mississippi
Ministry would Falled.
Krowers the reportedly signed up some 400, arrive here within two weeks.. 000 acres or almost double the It was sinted by authoritative amount reported last year.
sources that the United States
Proposed grain shipments Heavy sales out of good realised that this aid package from this time
until mid- Krade cotton, traders Agure. would not be sufficient to meet summer would amount to ap Over the weekend the govern-
India's dollar needs for the reproximately 1,000,000 tons, pri ment sold 383,000 bales for CA-
mainder of the plan.
marily of wheat al a cost of port against blds opened Jan
about $65,000,000,
Omelas sold that
this pro- posed sale, for rupees, most of the proceeds would be made for ploughing back Indion projects. China
But they said there was q
thak possiblity
the United would give assistance
14. Sales under the programme to dale totallet 4,812,000 bales. Sintes Average price of the latest sale, loer on. basis middling Inch at average
The anouncement was the Į available locations, was 28.54 cents up 24 outcome of talks which Mr T. T. Into points from the previous sale,
Krishnamachari. the Indian Mall Special.
12,100 217,000
*
*
Month
Volume Open interest |
173
March
11,300 201,300
South Puerto Rico Bugar Southern Co. (The) **** Bouthern National Gar Southern Hallway (Com.) Standard Brands
2%
MAY
18,000 348,700
25%
July
Ock
10,600 195,600
Deg.
7:400
74,700
423
Mar.
1,000 30,000
May
0.000
50,000
Total
200
1,700
74400 1,116,600 bales
10%
NEW YORK
Prices of cotton futures closed today as follows:
Spot, 30,300; Mar., 35.29; May, 39.50; July, 1941; Det., 34.71; Deo, M43, Mar., M.25; May, M424; July, 20.55,"
*
NEW ORLEANS
23
Prices of cotton futures closed today as follows:
Spot, M.; Mar., 13.M: May, 36.50;
Railroad issues rested after their rise last week the best weekly advance since late 1933. Uules set a new high since July 12, 1957.
pleked up in volume Trading 40353 compared with last
Friday's pace. A big block of American & Foreign Power fted that issue into the active column. American Telephone topped the whole list in turnover and at its high was up 3% points while 1ts rights turned ever heavily. Oll shares ruled strong with Royal Dutch one of the best
Tide Water Aas où gainers and its rights, listed to Time Inc. diny, were active also. Parundle Twentieth Century Fox Fini Eastern Pipe
more Union Carbide Line rose than a point to help the utilities. Unton Pacific Railway
Bleels showed gains ranging United Airesti to more than a point. Autos United Gan Corp.
$20
NEW YORK RUBBER MARKET
were
Exchange
American frm with Motors the best performer.
Now York Stock Exchange bond volume was $3,100,000.
American Stock volume was 600,000 shares,
New York Stock Exchange volume was 2,310,000 shares.
Of a total 1,147 issues traded. lower, 662 were higher, 204 221 unobanged,
Dow-Jones closing averages
ready, any further pruning ofancing inflation. The nationalised the estimates would have meant burtful reductions in social welfare benefits and caused fur- ther inflationary wage claims.
The dispute was not as sim-
New York, Jun. 20. ple, however, as the bare facts
was to prevent higher Rax rubber futures closed suggest. For example, the £50
by keeping million in question
was and wages being pald
15 to 22 points higher tional not to Government ex-nationalised and private indus-
with sales of 20 contructa. penditure In 1057/58 as cat-try short of the mons
Jan: 27.; Mar: 27.50; May: 27.00: 30 Industrials July: 27.50: Sept: 27.68; Nov; 27.80; 20 rails...
15 utiles Jan: 27.03.
1 stocks Standard contract closed 15 to bonds
mated in the Inst budget, but to the figure of actual spending in that year. And no one outside the Government knows what they will turn out to be.
them.
Tough
to pay
ете:
122 points higher with no sales Comm. future price index
reported.
Jan: 27 Mar: 27.50; May: 27.80: Closing Prices
Now, this was a tough policy, and doubts were expressed At What is known that the the time whether the Govern July:
Agure will be a good deal higher | ment quite realised all the im- Jan: 27 ept: 27.85: Nov: 7785;
in
Alden Inc. Acy.
dealer Allied Chemicals
source, presumed to be on covering operation, dominated the small trade. Offerings Am Brake Shoe
Allled Mils Inc.
ย
Allis Chalmers
Am. & Fore Power
buying Concentrated than the original estimate by plications of what they were anything up to
through one £200 million. doing and whether they would March And this points to both the have the courage to go on onee strength and the weakness of they did realise. Mr Thorneycroft's case,
Strength
This was the crucial question that split the Cabinet two weeks ago. Mr Thorneycroft and Co. the otherS were for going on;' held back with the results that are now well known,
Its strength is in the size of in dispute not the the sum
£60,000,000 but somewhere in the region of £250 million. Its
But this does not necessarily in the fact that weakness lles callmutes of expenditure and mean that Mr Thorneycroft has lost the argument. The extra actual overturns are two very £50 million will go on the tax different things. Insistence on payer's bill, but the incident arithmetical exactitude in the administered a shock that might former, knowing that It was only an Informed guess at the latter, yet have salutary effects.
makes
little sense very economic terms
does not excuse
row
In Public reactions to the (However I will cause Ministers to look the sly hints that Mr Thorneycroft was feel Ing the strains of office"},
The second point that has now emerged is that Mr Thorney-
did croft
cuts not
propose
wns
10
In the social welfare services. His primory concern complete the equation, specity where the cuts should
fall.
American Alline
come fram other
dealers, American Cable & Radio Corp. presumably hedging against American Cyanamid Co Business in shipment rubber,
Brokers reported a light to moderate tonnago worked out of Thailand. Sales
Included three sheets 28% cents; four sheets 25 and five sheets 38% cents a pound, all Jan. Feb. shipment cost Factory business in
and freight. the de- livered market bere remained flat,
Spot No. 1 RES quoted at 27% cents.
WIE
Am. Cham & Electric Ant. Mach. de k'dry. American Metal American Smelung Am. Sugar Ref. American Ted & Tel American Tob. "B" Anaconda Cupper Armeo Stel Armour Auny Cars. Mining Baldwin-Lims Hain. Reneelal France Baltimore & Onio
Bendik Aviation Corp. Benguet Cons Bethlehem Steel Boeing Airplane Borden
Co.
slightly Burroughs Add Machine
Campbell Soup Co. Canadian Pacific R. Case (J. L) Co.
SINGAPORE The market opened twice at every penny in future higher and steadied further on before spending it. And the end buying Induced by holdup of result could well be that Mr ships for Singapore by Indo-Cat Tracies Thorneycroft's policy will pushed forward more vigorouslynesia. than it would have been if the split had not occurred.
Time-and a short time
be
at
not to that will tell-Express Ser-
vice.
He said as much when he ex-
plained his stand to his con- LONDON STOCK.
atituents:
It afty million is the Sure
and is a triviality, could not
be found somewhere
£3,000
straight?"
out of million to keep
us
Few people believe that no
MARKET
London, Jan. 20,
⚫he
Colanewo Corp. C. 1. T. Financial Corp. During
Chama Manlias. Bank afternoon ports by Army spokesmen for Chryster Motors South Borneo that bare barter Colgate-Palmolive Co.
Cluett Peabody trade still functioning smoothly, Colombian Carbon Co. brought out sellers and the Commercial Credi market closed
Consolidated on at lowest love! Continental Oil of Del. of the day.
Crown Zobenbach Futures:
Cuban Amer. Super Diamond Alkall Diamond Match Co. Douglas Aircraft
No. 1 rubber per 11, Fab. 7876-781%
Mar, 78-10
No. 2 rubber per iu. Feb. No, J No. 4
Spot rubber unbated
Blanket crepe.... No. 1 pale crepe
LONDON
*
73-733
71-72
Dupont de Nerous Eastern Airline
Eastman Kodak
2012-7034 Paro National Cas
09-10
Family Finauce Corp Firestone Tyre & Rubber Ford Motor ..... General Electric
The stock market was mix-wills spot quoted at 23% penes dieneral rotors
The rubber market was steady General Foods
ed today in every light per lb. Prices:
trading.
Gilt-edged
No i spot ... Bettlement house term: cked February securities
March... fractional going ranging May/June from 1/16 to.
July/September October/December
out
January
February
Relate creps thin Tob.
further economies can be made FIL budget of 25,000 million without cutting the social wel- fare benents. But in the remote possibility that they couldn't, the most important point of all le raised. In short, are the social services hencoforth sacrosanct? Oll shares moved erratically General markets, eit basla,
Lord Hallsheen, the Conserva-and narrowly against a back- tive Party chairman, may deny | drop of proposed new, issuts by It, but the dispute in the Royal Dutch" and Shell. Dool- Cabinet proves otherwise. Aside ‡ings in Shells new issues were from the moral and political postponed until Feb, 11: orguments, the economie enso for preserving the benefits in- tact has been conceded by de- full. According to the Govern ment, any cut in them-oven, o marginal one--would result in inflationary wage claims.
thick eb AMSTERDAM
23-2731
231-5316
Getty Oil
Goodrich (8. r.) Co.
Goodyear Tyra
GUE QU.......
Homestske Mining Co. Ingersoll-Rand
231-231 | Tani Steel Co.
24-2436
Interchemical Cor
MASON 1 MF'l Business Machines portal
12 Harvester, som international "Nickel International Paper
Kansas C, Power & Light Kannecott Copper ............... The rubber market was quiet legal Meri job. Co,
Lockined Algerati today. Prices in guilders per Loows mcorp. Industrials were mixed in kilogram, Cif February were as Lone Br Censent Co.
Lowenstein A. Bota
Alterati
Ustless trading.
follows:
Kerman liens were pirong in No. 1 rubber an piherwise quiet hond market, | No, & rubber "Dollar"stock" werd mostly un, No, a rubber
No. 1 crepa changed.—United Press,
2 at buyers Metignet
buy
1.10 burers Membi Izum Corp.
3.44 Mrysts] Minnesota Mining United Preis.
Mission Developthant
947.87
100.87
21.84
152 11
12
157.03
Standard Oil of Cai Standard Ou of Ind. Standard Oil of NF. Steep Rock....... stening Drug Co. Blokely-Van Camp. Studebaker-Packard Corp. Sunshine Mining Swiat & Co... Texas Cu Textron Inc.
Union il of Cal.
U.S. Foll "D"
B. Gypsum U.S. Line Co. U.S. Hubber
Smelling
US. Steel Warner Bros. Westinghouse Electric Western Union Tel. Co.
West Ve. Pulp & Paper Woolworth
2512 3514
July, 35.41: Dels 34,72: Dec. 3485:
Mar., M.50; May, 3424: July, 13.43.
LIVERPOOL
14
Cotton future closings, pence per ib. were as follows: Old continet Mor./Apr.
*
[*
*
P.OBIE.A
COMPANIES
PASSENGER/FREIGHT SERVICE
PENINSULAR & ORIENTAL S.N. CO.
"SINGAPORE"
Leaves Longen Salled /13 Sailed Tit Hailed 11/1
May/June
Juy/Aug.
Oct/Nov.
Dec./30.
20.80 245.00
Outwards
Flue Wangkong
17
New contract Mar/Apr
21.00
*
21x1 January
3416
May/June
21.25
4012
July/Aug
21.30
United Press.
Oct/Nov.
21.63
"CANTON" "SOUDAN".
8th February
23rd February ·
Dec/Jan
27.38
BAO PAULO
Cotton
future closings, were
"SUBAT" "CORFU"
25th January
11th March
"SARMALA”
5th February 15th February
Homeward
SINGAPORE
STOCKS
Singapore, Jan. 21. Brokers today quoted the fol-
ir wing stock prices:
Co.
all unqunted today.
. In the United States, the average price of one-inch cotton at 14 desingated spot markets was 34.88 cents.
salca
Total
"were baleg.—United Press.
*
*
"CHUSAN" "CANTON" "CORFU"
10th Marob
5th April
Leaves Hongkong Due London 30th January
27th February
11th February
179,540
14th March 2
14th March 1801 April
"BURAT" *
30th March
10th May
E
"CARTHAGE"
11th April
12th day
20th May.
OpenNew York Sugar
Batu Lintang Rubber
$10.
*
British Borneo Petroleum
2015
Syndicoto
12
Consolidated Tis Smelters
Drd
$1.07
KIN
28 00
12
Fraser & Neave Lid Ord... Finger & Neuve 15% cuta,
fire!
Gampions (Malaya) Ltd.
$4.05 $2.25
4011
Hongkong
Stanghal
Banking Comp
301,
Hongkong Tia Lid.
Klumpas LAC,
173
Kunia Kampar Tin
da 31.571 209 B
DO
Malayan Breweries
$3.3715
New Scrandah Rubber Co.
Ltd.
$2.40
Petaling Tin Li
$2,25
Ruffles Hotel
21.03
Singapore Cold Storage
30.01
Straits Trading.
$1.70
Strata Steamship
United Engineers Ord.
$1.28
5.10
Lunax Rubber Estates Lid. $1.03
Weare Dros,
China Mall Specia
London Metal Prices
London, Jan, 20. Prices of metals closed today Já sterling per long ton as fol- Jaws:
Tin spot
3-month
Copper spot
3-month
Lead 2nd half Jan.
Apr. Zine 2nd bat Jan...
Apr.
Buyers Sellers
730
712
1654
170v
1729/ 173
219
703 72"
01
OL 44.
United Press,
Exchange Rates
Market
New York, Jan. 20. World No. 4 sugar futures closed today unchanged to 9 points higher with sales of 748 contracta. World contract firmed after a lower start, responding to a trade and commission house dermond,
Dealers reported the sale of some Cuban raws to a British refiner which Holland was the
buyer accredited
of another cargo of Cuba,
In the domestic delivery, A. total of 90 contracts were con- cluded for nearby months. Contract No. 4 (world)
Marets: 3.07: May: 3.00; ly: 3.50; Sept: 3.40: Det: 3.65; Mar: 3.45: MAY: 3.0.
Spot-(cents per ib. feb Cube):
Open interest: 6,560 contracts.
Contract No. # (domestic) March: 0.03; May: 666; July: 5.73; Sept: 3.74 Nov: 5.70; Spot-(cents: per lb. of NY ex-duty): 6.45.
Open Interest: 1005 contraelu, — United Prest.
New York Foreign
Exchange
Now York, Jan. 20. Closing rates were:
Canada
England official
Aurate
New Zealanul
the Argentina
Business was done in the locat | Bouth Afrien unmetal exchange market morning at the following rates;='_ India US dollar (per 81)
Sterling noise (per £3).
Australian naten (per &1)....
Endonesian Too!
Stk test ¿për Bingapore (Straits)
(per 100)
NAMESAKES ·
Pakistan
United
281 17/33
235 3/1
London Foreign Exchange
2010-201 1/10 2771/10-2.77 3/10 10.30-19.38}
London, Jan. 20. Answers:-1 Justice, 2 New York
Closing rates wern! Aristocrat 3 Bever; 4 Franco, MontPRA) Physician, ↑ Head, 7 Englite, ↑ Sapestagen Executions Republic, 10 Mede, 11 Bovohition," 12 "Daries,
1 Sentence. 14 Machine, 16 Modicine.
Joseph Quillouis.
$177-113744
Pil
Blockcha Vianna
Zurich
IN 2016-12.30
-United Prem
*
*
"CHUSAN"
28th Apri
Via S'pore, Penang, Colombo, Bombay, Aden & Pf. 1930
* “BURAT“ omita Colombo & Bombay, calls Gonos d
Marcellies & extends to fiumburg, Rotterdam & hatwerp.
"CHUBAN" also exija Marseilles.
★
"OLINDA"
*
*
*
BRITISH INDIA S.N, CO., LTD.
"BANTHIA” due 30th Jan. mazim szat Jati.
doe 10th Fet. Kalth Feb,
"BANGOLA” des 14th Feb. salle 15th Tah.
11910 Japan
lar singaporu, Penang,. Rangoon Calpsista
from Japan.
for Slogapore, l'enang, Rangton, Calcuita chillygong
from Calcutie. Aangoon. Penang & Singapore for Japan
P. & 0./B. I. JOINT SERVICE
"ITAUBA"
que 20th Jan. salle 29th Jen dua 14th Feb. saile 10th Feb.
from Itovachi, Bombay, Cocht & singapore for Jupi
from Japan for Suigspory, Penang, Cochin, Bombay, Karu- chi, Musent, Kuwait,
Boura de Khorramaianf from Kanchi, Dombay, Codils & Bingapore THE JADRE
*
“IKAUNA”
*
*
"UMARIĄ“ «dye 10th Fol
spila 18th: Feb.
EASTERN & AUSTRALIAN S.S, CO., LTD.
"ARAFURA” calls 3rd Yeḥ,
"NELLORE” due 5th Feb.
for Labuan, Sandakan, Arbabe, Bydney. Adel alde & Melbourne
from Austrajša
All ventis have liberty to, calf at any parts - på or of the route à the route de mailings Aes subject
to change or amendment with ye without nožica.
For full particulars noply to MACKINNON. MACKENZIE & CO DE HONG KONG 119. Telephone Nos 977?! 1