THE CHINA MAIL, MONDAY, JANUARY 27, 1958.
TRADE and COMMERCE SECTION
Easier Money
Money Measures Gain Depth
Japan
Fage
Stalling
Week's Survey Of The US Economy Negotiations?
Philadelphia Takes Lead In Cutting Prime Rates'
By IVAN ZERINA
New York, Jan, 26.
registered
more
"Easier Money" measures gained depth last week with lowered rediscount rates stimulating the capital markets while
still commodities softoning. The Federal Reserve Bank of Philadelphia broke the ice with a cut to 24 per cent from three per cent. This followed a cut from 8 per cent by all Federal Reserve Banks last Novem- ber. The Philadelphia action last week imme- diately resulted in cuts of the "prime rates" on lending by New York, Philadelphia, Cleve- land and Kansas City banks from 4% to 4 per
cent.
the report said, but well below the post-1947 average of 3,7 per cent annuaf gain.
The prime rate is what commercial banks charge business borrowers for unsecured loans, The capital markets were thus expected to take "quite a spin" in the next six months, financial
salt, SOLACE
Thoy considered the current decline the one of in money rales sharpest and quickest within recont history.
However, commercial bankers cautioned that the rediscount zate cut by itself would not stimulate borrowing but would definitely improve business 2017- timent. They also said the chief effect of the measure would be number of, refunding quito operations by corporations which will want to shift their Joans into existing high-cost now ones at the current lower Tales
The stock market itself did not accelerate its pace follow- ing announcement of the rate cuis, indicating that the action was probably anticipated by both investor and trader.
situation im- As the money
gol proved, the commodities cofter suli. Grains reached new lows and non-ferrous
and metals-particularly zine aluminium-were hit by lack
demandi
rising лод
world
Blocks.
This followed the slide in
prices and production cupper in the last ten days and coincided with the world in conference in London.
CUTBACKS
Zinc
In farm work productivity. Jumped 5 per cent last year and In non-farm Industries the gain
was 1.4 per cent.
the non-tarm rise la 1950 was less than 0.3 per cent,
Manufacturing posted a rise of 0.8
cent, per
In non- Lines such manufacturing retailing, transportation and personal services-productivity went up 1.6 per cent.
28
The greater increase in the non-manufacturing sector was contrary to the 1947-58 pattern which saw manufacturing pro- ductivity average 3.2 per cent a
the your higher and
11011- manufacturing gure go up by 2.8 per cent a year.
Over the last several decades, the report sold, output per man-hour for the economy as whole has improved by an average of about 2 per cent year. But from year to year, the Improvement has been
regular.
П
The President renewed his prediction that an early upturn in business was due and con- firmed at the highest official level something that has been evident for some time now-
of
emphasis has now been awit. ched
the prevention to too much deflation. He com- which mitted the govemment to "poll operates the largest horizontal cles designed to facilitate the retori seller in the world-resumptions of growth." said it was cutting production
Blackwell
|
NEW YORK New York
New York Stock HONGKONG
COTTON
MARKET
REVIEW
New York, Jan. 26. Catton traders last wook found the line of least resistance on the down side, continuing the pat- torn in ovidence sinco
mid-December.
Closing on lower ground in sessions. four out of the five
Market Review
By ELMER WALZER
New York, Jan. 26.
Stocks last week broke through a hitherto impene trable barrier and signaled what chart exv hailed as a new bull movement that could carry on for several weeks.
This barrier was set on Nov. the 149.87 in 201 20, 1957, Industrial average. It was lever that attracted new telling
It each time
was approuched until the late Friday dealing when it was pierced with such vigour that tickets ran late for
the list at Friday's close was oil net 34 to 57 points, or $1.70 to $2.85 a bales under the preced-a few minutes.
ing
week.
wan
This operation
purely The nearby March contract
with the cows which tended nished on the week's low of technical and had nothing to do 34.70 cents a pound. This re-
a net loss of 199 toward the bearish side despite presented points $8.95. a bale-from the moves toward caster money and on high consumer buying at retail. catablished #cason's high Dec. 10. New
shared equally in the
cotton
months decline.
for IAN
CLOSE
and old crop Nearby deliveries felt the im-
At the close of the week, the pact of liquidation by old logs industrial
average sloop At discouraged by the prolonged lull in the textile market and 450.00, a clear penetration of the Nov. 20 close. At that level the business recess on alk..
i was at D new high since When cloti bustness is very Oct., up 0.54 points on the slow, and outlook
uncertain, markat week, up 14.97 poluis on the down 27.00 points technicians raid mills are more year, and likely to hedge their stocks of from a year ago, the raw material, Some of the redcct bedge selling in futures was put down to mill account,
Another actor colling over tullish sentiment In nearby deliveries has
been the large sales made out of the govern- ment surplus stock.
The utility average closed at Avaliability of this cotton has 21.38, a new high Fince June 18, releved the light supply altua-up 0.35 point on the week, up ion ar good grade cotton, 10.67 on the year, and up 1.25 which was the big factor in the points from last year of this
tirac. Prceiber price · Iss.
Moreover, reports indicated many mills continued to lower
their
grade requirements so that the principal demand on has southern markets lately Leen for medium grades.
Since August 4, the govern- mont has sold a combined total of 6,300,000 bales out of the surplus stock for export and unrestricted use.
The Talirced average elcsed at 107.63, a new high since Nov, 7, up 53 on the week, up 16.67 on the year to date, and off 41.33 from the corresponding period of 1957.
The average for the 65 stocks in the Dow-Jones calculation closed at 153.15, a new high since Oct, f, up 1.74 points on the week, up 746 the year, and of 16.52 points from the corresponding date a year ago.
LONDON STOCK]
MARKET
STOCK EXCHANGE
Our Own Correspondent Business done on the Hong-
By STEWART HENSLEY
Washington, Jan. 26, The word in official quarters here is that Japan is stalling negotiation of a new agreement on quotas for her cotton textile shipments to the United States until Congress acts on the reciprocal trade programme and adjourns.
་
Meanwhile, the Japanese are hudgeting their 1980 shipments on the basis of the 1957 quotes under which they limited over- al shipments to 235,000,000 square yards in an effort not to Brous opposition of domestic textile interests.
Officials said they believe the ong Stock Exchange amounted Japanese preferred to ship on $483,000, the old quota brsls and avoid approximately Noon quotations and the mom-stirring up American Inchetry and ing's transactions were:
Buyers Beller
XK Bank.. 825 03216
Bharts
BANKS
INSURANCES Union ...... Loband... 3212 SHIPPING
Kalen
147 230 8030
7317
Art New.. 1.275 Wheelocks 0.50 3.00 DOCKS, ETC. Dock
Pre-Ident
(0)
INI
EO
100 450
cor gressional reaction until Con- gress has acted on the renewal of the Trade Act, which is the bread authority
which inrill reductions for Japan and other trading countries have bren negatintëd.
under
VOLUNTARY'
GOLD BAR
BUSINESS QUIET
Zurich, Jan. 25. Business in gold bars was
quiet, but the undertone' was steady owing to small offers during the week to January 23.
In the latter part of the week Japonese-American negotia-demand also fell off, but prices tions on the "voluntary" quota were hardly affected.
Japan wouldk
impose for 1038
broke down last mouth when
Trading with the Middle East while dealing routine,
was
12 12.30 11%
500 10,60 2.500 m 16,49 2,400 + 1830
significant,
London, Jan. 26.
Bevch
per cent LAND, ETC
JE Hotel 1020 15.40 bank rate-greeted with Britain's
applause in September-K and .. became rather unpopular į Realty......
RUBBER
this week.
the two sides failed to agree. with South America were in-
The Japanese are willing to
keep the overall ceiling m 235,- 3313 314 2,000 33%
000,000
in colts, declines were noted square yaras during 1958 but wanted to increase the in limited trading. Sales of to brokers by the Ibolts for easy-to-sci! navereigns
and Bick or England had a depress- as ginghants by
Ł Amalg .....275 1.323 20,000 130 10,000 1,30 5.000 or 1.30
Trust in 125) UTILITES
... 23.80
...
122 120 043
For one thing. The chairmen others of the big banks, and
alles attentica to the fact that, in the outside world, money is Star Ferry.
Bri-Yaumati getting cheaper, end that tein's economy badly needs fur-C. Light 15.50 10.90 1,000 16.00 ther Investment at interest lower than the present levels.
♫ rate
of
Electric
2560
100 10.00
000 or 1080 4,000 of 19.80 21 2X25.90 300280 22:00 20.90
14.00
16.30 10.00
1080 were raised, both in Macao E. Volces
24.20 29.50 warning Telephone and out of the City,
INDUSTRIALS Cemen that Britain must not persist in
1*** 21.00 result in Rone n policy which may
world STORES, ETC. her importing the 1958
Dairy Walion recession into her own economy.
L. Crow. There was no sign that the
Sinceres Fovernmeal hus changed its the view that indation is still
still far from hemy and is being defeated.
CONFUSION
The result, on the was general confusion.
market.
than Times
A further result was a strong movement into British govern. ment stocks which lifted sharply. The Finustelni index closed the week at 80.34, highest since the bank rato was ruised on September 18.
Sales for the week averaged
Old Console rose 12 shillings 2,804,274 shares daily, against 2,410,521 shares in the previous pence, and war loan with others - gained 10 Much interest centred in re-week und 2,099,595 a year ago. several pors that the administration Sales o tar has been working on
ATC still a new 39,117,251 shares compared with phrase cotton subsidy programme to 30,725,008 shares to this date in cheap. begin with the next marketing 1937. year—Aug. 1. The programme
would replace the present plan of selling
Paris Gold
The
market
COTTONS Texille
17.20 12.30 000 @ 12.30 14.30 500 14.20 2.93
*** 4.575
10.50
MISCELLANEOUS Vibro.. INVESTMENTS Yongtere Sungala....
1803
2,000 13 200 3
4.GJ
8.50 0.73 150
300 $4,33 3,500 $75
New York Cotton
Goods Market Survey
gories such
compensate lowering the, Ing effect.-China Mail Special
quotas on textile for whic
there is not so ready a marke
The American indusoy
sisted that there should be t alterations in ealekorics quo.. at all and some even waned a six per cost reduction in overall ceiling.
The State
Departments
and took
A
Commerc.al
pustio
midway.
The Bombay Bullion Market
No date has been set for re- sumption of the talks.
and The It appeared the ameials raid" Japanese had decided to wal until after Congress ucla on the controverslal trade measure in order to avoid creating naverar which roaction congressional might harm chanecs cf renewal of the Act,
resume-NIL- in 1958 total shillings. But, as the favourite
they goes.
But the leading industrials illustrated prevailing confusion. On balance, they were slightly higher, but the buying War highly selective. Unilever, with again of one shilling six pence, Rolls Royce, with gain of one shiling sixpence, were the
popular, Ford most
Lo
Bank Of France
Statement
Paris, Jan. 20, The Bank of France statemer t
Bombay, Jan. 25.
bullion market was again highlighted in the week to January 24 by tho strength of gold, where values forged ahead on short covering, though activity was in- clined to stacken on the rise.
The paucity of Kolor gold sup- lies and the restricted inflow of unauthorised metal were the main stimulating infuences.
Stocks at the end of the period were 20,000 toles with arrivaŢa and offlake balanced at 3,000 toles.
and
Bank of England
Statement
It was pointed out that the Japanese could, for the time being, operate under the old quota and then increase ship- ments during the folter part of the year if they were ultimie ly successful in getting Ameri- can agreement to higher ceilings on some items.
would not Japanese officials comment. They insisted th-1 The silver metal showed smąži the position of their government on balance gains, alded by in- was to seek an early agreement creased absorption of upcountry They acknowledged, however. | offerings the strength of New York, Jan. 26.
when gold. would talks The buying pause in cotton that they had no idea
Stocks at the end of the period gray goods, dating back Press.
were 1,300 bars and office to mid-November, gava
Lveraged 20 bars daily-China Mail Special little sign of an impend- A didn't quite
ing change last wack, governinen! cotton break the Nov. 2p barrier in the
fill-in demand tor quick for export at a discount under Standard & Poors, index of 500
delivery still constituted by one that where inflation was the the domestic prices.United stocks. It missed that
the main part of a rou- cent
the week at and closed chemy up until recently the Press.
tine business. 41.71, indicating a gain in all
Consumer determininion liated issues of 3 billion. So far
Motors operate at the unhurried pace this year the Kam in market
gained shilling, but others in followed for the past ten weeks For the week ended Jan. 10.
London, Jan, 20. value amounts to 8 billion.
the same high grade could gain reflected: 1. Availability of reads 'as follows:
The Bank of England state- Stock penetrated their no more than sixpence or nag-cotton print and brondeloths on
Total gold holdings 501204,302.428ent for the week ended Jan resales at below mill prices; 2. Total other currencies 9,742,885,588 22, reads as follows: Maginot line of Nov. 29 despite pence. such adverse nows as omnis.
Business recession talk, pointed Sight balance abroad
11,371,000,000 Noles in circulation.. in EPU up by the rise in unemployment. Advance to Stabu alon of dividends by two of the
Teto Lion Fund But despite the gloom in the nation's largest tallroads--New
Anong ulls, Royal Dutch and
Tatil bills discounted 1,001,077,253,727 York Central, and Pennsylvania. Shell Transport
immediate picture, a representa- Paris, Jun, 23.
tive group producers detected Rot in elreuiation 3,188,431,279,310 six penoc, but Cana- sales were noted on
Most of the
business in-shillings
453,439,856,205 In the wind Current accounts and
deptaits fell several "straws and Burmah
-Unlied Press. the dicators the Parls gold market in
showed declines but dlan Eagles
three shillings
and pointing to a change "before 100 week anded January 24.
They fell a. these ike the dividend cuts nearly
long me." Bitish Petroleum closed absence of were considered results of the
"definite" pick In the persistent
up In nearby changed. hourder demand, selling pres business dip which is old news, sure brought prices down to the Wall Street
was looking ahead Among foreign bonds, Ger- buying will happen soon."
A few of the elted "straws." the most 1. Improved consumer buying active. The Young Loan non at Anished goods, especially in before the external payments perts held that a turn for the
asserted gained 11⁄2 sterling and sheetings following recent price crisis and the formation of the better would be visible befor Chillard Government.
Very old, the senied 24 sterling. Dower reductions; 2. A sharp rise in The second quarter
non-essented rose one sterling converter covering for spring on Bright prospects of obtaining i
For the week 194 of the 1,301 with the assented up one-half piece goods; 3, Larger budgets foreign loans, substantial return
while sterling.
mong buyers now örriving in of funds, which were taken out-stocks traded advanced,
Potash seven per coats, both the market; 4. Slender suppliers France when the lightly 270 declined and 119 beld
assented und non-assented, fel nowing through the were There Washington, Jan. 26. from the
st W03 frunc
ita changed.
the 100- number of workers height, and a feeling that the leuca setting new highs for two sterling, whlic
assented of the 6' per cunts claiming state unemploy-world economic recession might more
lost one sterling and its assented lest three sterling, Japanese mont insurance benefits succeed in checking internal seven new lows-United Press
However curtailed production 1930's Iost
one-half
sterling schedules in force for some time increased by 54,500 to for the spectacular decline.-
both assented
at the mill level are expected to 2,863,000 during 'the China Mall Special.
hsseated, while the 1810's non-affect the, consumer whenever remmed.
defence spending, Increased Long a Aluminium of course, would be the prime
at once by about 2,000 month. Canada's
.
Market
Liti announced cut of some incentive in this respect. The 5,000 tons a month-in two of question was how soon it will
Heavy reduction from be felt and how strong it will plants a approximately 10 per cent down affect the whole picture of na Intional economy.United Press. to 80 per cent of capacity.
ita
the United States, both Alcos and Kaiser Aluminium
Wono
cutting down by similar per Unemployment level ruling in early November to better times and someone
centages, Alcon by some 10 to
15 per cent of its 1057 capacity rate of 712,000 tons,
But these cutbacks were con-
sided inevitable when
viewed
as part of the whole economic picture. They merely followed the pattern set much earlier by steel, the prime indicator
any cconomic ills.
ol
Tho
As non-ferrous metals went down, sicol picked up a bit. Its
week production Jast
W+9
tons
3,538,000 tons, up 23,000 from the preceding week. But last week's total was still con-
siderably bolow the correspond- ing week of Jan. 14 in 1957 when 2,187,000 tons of steal wore pro- duced
Insurance
Claims
wook ended January 11,
side
ination, were the main ceasces
the Labour Department New York Raw
reported last week.
This brought the rate of in-
In his economic report to the cured unemployment to 0.0 per Congress, President Eisen- cent, the highest it has been for hower cald productivity in- cight Your In
tho
Cotton Exports
New York, Jan. 26. Row cotton exports by
་
than a year and
International Tin Council
78
only
OILS
rose
perhaps mans were
and the
Iwo
WIL-
non-
consumer
pipeline; . Easter, money gift- tion following the bank discount reductions,
assented roac one-half sterling. normat buying is
cent
liquidated,
were
the same. source
Dollar stocks moved high, informed sources estimates mainly reflecting Wall - Street about 1,100,000 sindles movements rather than British | liquidated churing 1957. These demand, while the premium re- were spindles that were not mained unchanged at 8% per shifted to other plants, bul Loudon, Jan, 20.
Stockbrokers probably lost reported. corresTM | destination as reported in bales The International Tin Coun-
by money this week. The average Industrial fabrics duplicated cressed by about 2 per cent ponding week last year, the by the New York Cotton Ex-ell last Saturday increased
claiming
quiot ilustion throughout the cootomy last number of workers
change for the 1087-38 on 11 per cent the cut in cur-daily volume during the last the
Many weavers bene's rose by 4,700 to 1,725, through Jor. 21 were as follows: rent tin exports by the produc four days of the week was only apparel field.
301674ine countries and decided that 0,770 bargains recorded; broker- have been, ruming on sharply 10 tin exports
from April 1 to age finns need a daily average curtailed schedules. Some are in order to on a three-day weck, while 183.720 June 30 by the six producing of around 8,000
others have blocks of looms break even-United Press. 2410370 countries should be limited
covered. 29,000 tons.
year.
Dritala
Continent
Tot for
In his message to Congress 800.
the accompanying the report,
The Department said recent Orient President declared that labour
that cutbacks in metals, machinery Canada "must recognise leaders
plants were mainly Sotuo perk) last year* wage incresson that go beyond and auto
recent 10- excluding linters-United Frest Over-all productivity gains are responsible for the
crease in unemployment. The inconsistent with stable prices.”
usual winter reduction in out- Ho said that "erage increasin that involve either higher prices door work helped to awell the
or further narrowing of:
totale.
the
margins between prices and
NAMESAKES
Answers-i
Americe,
In anticipation of the Chun- ell's decision three monthin' tin of the Lotidon Metal Exchange
2 closed for the week last. Salur- day at £729% a ton, which was a rim of 29. on the previous
About. 43,000,000 of the 65,- Seventeen, 8 · President, come may roland" "the_ronzing=000,000 persons is the civilian return, Election, 0 White, 7 tion of economia growth” labour force are covered by the Judgement, B Democracy, day's omelat quotation.
"Productivity" is
Exchange Rates
the
All Indications peinted to extremely low. 'Inventories of boni the producer and die- tribution level.
Bushes was dotie in the local mixed.
M Recharge anarketa moming at the folowing rules:-- V.4. dollar (per (3)
Hard libres Wero quiet and Burlap showed little. change, while traders awaited 828) outcome of Cakutia dook steiko, terling notes (PT 41MA 15.30.Hemp prices ensed in face of o Australian notes (per" 21) IM
of Washington, 10 Union, 11' States. Anot tin on the day role indonesian rupiah (per 108);* 1846) Blow buyer interest and reporta
Ase). Federal-state... system technical for output par | subployment insurance. Thenefile 13 Ormion, 18 Opinion. man-hour. The 1937 Increasó avarage 20 per one work of un-
Andrew Johnson (American 824 to President) wils grombone than that for 1960, ! sinployment.-United Prost,***
Pres
72% a ton-United
Ribens „Kont: (per 100), **
Bingapore BANKENS
of ample Philippine Inventories.
United Press,
franc
Publie deposita
Private deposits
overnment securities
Other securiti
Receipts
ilatio
SHIP
sterling
1,963,359 787 12,535, 288 279
47,000.50€
30.370340
United PreRS.
BEN LINE
PHOTOGRAPHS
by our Staff Photographers
King's College Speech Day Annual Bisley at Kal Tak Range American Mothers Dua From China Assizes Service at St. John's Cathedral Launching of Chee Hong as Floating Clinic Women's Day of Prayer Intg. at Dean's House ANNUAL MOTOR RALLY Arrival of New Governor of Hong Kong ATT Local Sports
Local Presentations,
Local Weddings
"Etc. Etc.
Available at
SOUTH CHINA MORNING POST, LTD.
ndham Street,