THE CHINA · MAIL, TUESDAY, FEBRUARY 11, 1958.
TRADE and COMMERCE SECTION
Sterling's Seasonally Favourable Period
Bank Rate: The Next Move?
Trouble_May_Come From The Labour Front
By RONALD BOXALL
London, Fob. 10.
The belief is spreading among people qualified to judge that the next move in the bank rate may not be as distant a prospect as was once thought.
The arguments for maintaining the credit squeeze have not diminished in "force, but certain factors have recently appeared to set against them.
Foremost among these is the strength of sterling funds of foreign with its background returning to London and the recovery of the gold and dollar reserves.
The HONGKONG
STOCK EXCHANGE
Our Own Correspondent Business done on the Hong-
Exchange
kong Stock
murning amounted
this
to appro- ximately $251,000. Nocn qusta-
tions and the morning's trans- actions were:
Bharg Buyers Beile zu BANKA
FK Hank
hard Waterbost
INSURANCES SHIPPING
Whmuck,
January's Fold gures are is the labour front. True, there that even better than they appear at is good reason to bellove Brat sight. The actual riso in the trade uniona will be less
K Land Humphreya the rezerves was $131 million. insistent in their wage demanda
QUBBER In previous years. The But if the EPU settlements are than
declaton to allow Amalg attributed to the month in busmen's which the transactions took their claim to go to arbitration is UTILITIES place the "true" gain last month a sign that the
trade union
was $166 million. And that was loaders are convinced that this performance is not the the best monthly
since the early summer of 1954. downa."
We are now in the seasonally favourable porlod for sterling,
Nevertheless, if one
accepts and this year the normal gold that the battle against indiation the lost on been accentuated by will be won
difficult to labour front, i is
gain has
or
the reflux of funds that were see how the Government could withdrawn during last Autumn's crisis. This has lifted the ster- relax the credit squeeze, while ling exchange mate to its highest the issue was still undecided, level for three and a half years to the point where the authorl- ties have had to buy in sterilng Lo prevent the rate bursing through its upper limit.
Upward Move
The upward movement in the sterling exchange rate has been matched by gill-edged prices on the London Stock Exchange There are now nearly back 19 At their pre-bank rate levels. the same time the bill rate has fallen to half per cent below its post-bank rute level.
now
4.10
A.55
1050
200+
Baie
75 < 12.21 2004 12:20
200 10.70
34
500
24.30
ل الهداية
New York Stock Market
New York, Feb. 10.
NEW YORK We Should Follow COTTON Hongkong's Example
A
MARKET
Now York, Feb. 10, government announcO- mont of a higher guaran- tood minimum loan rate for the 1958 crop startad cotton futures off on a spirited rally today,
Initial gains up to $1.78 bale swept the far forward deliveries to new seasonal highs on a broadscale demand from shippers, commission houses, local traders and various itens accounts,
Prodt-taking and hedge offer ings shaved extreme galas, although the list still finished net unchanged to 20 points high
Stocks declined on average today with volume lightening but finished above their lowest levels of the session, The gainers, few in number, stood out in the longer. Opening prices we e up to list of minus signa. They included Standard 30 points. New Orleans closed Oil (New Jersey) and Amerada in the oils, New Haven in the rails, Raytheon in the elec-25% crois & pound above the tronics, and U.S. Gypsum in the building equip-ae for the current season. The ments and Musical Industries in the specials, casts of the mid-January parity
Most of the chemicals, oils, ralls, motors, metals, steels, tyres, and special issues gistered declines,
Microla Inc.
lap 14 points.
"Week-end announcement of a 14mporary loan rate was about
close
calculation was made on the roport announced after Friday's The interim m'e was figured by trade statisticians to be at a pound for 38leLot 34.00 cents
inch middling one
cotton at average locations. The rate for the Current sceson was 32.31 conta a pound.
re-
National Cah keg. “A” National Dairy Prod.
3914
2010
National Lead
National Steel Corp.
12
6
4
Today's early selling reflected the strong resistance at the cur rent levels in the averages. And today's adverso news included at other dip in steel operations, n cut in the St. Joseph Lead dividend and a drop in copper
New York Central
Norfolk Western ty.
Olin Mathiespa otla Elevator ows-mois Glass
Oxford Paper Co Pacific Gas & Eler. Pan American Airways Paramount Pictures Parko Davis Co.
prices on the London Metal Ex-Penny J. C. Co. change.
Losses for the most part hold
to moderate amounts, seldom
rising beyond a point with
registered losses
20 although some met support and
one--Amerado-was able
100 record gain of a point.
The bank rate is more than of monetary instrument
STORES, ETC. policy; it is a powerful psycho- Daley 10.40 10.70
Wan Craw 14.50
12.10 12.30 100 12.20 logical weapon. A reduction in
Lane, the rate
would almost COTTONS certainly
by Text les... be interpreted
Nanyang MISCELLANEOUS many people as a sign that the
And once V.bro danger had passed,
that idea
it INVESTMENTS gained a footing,
Yanglaze 5.30 would be even more difficult to deal with the coming round of wage cloims--which, as matters stand, would add about £450 kho million or six per cent to annual wages bill.
NEW YORK
Penn. Salt Co. Philip Morris
Procter & Gamble. Co. Pittsburgh Pinte Glass Publickor Industries pure ou
Radio Corporation Radio Corp, Pret. Republic Steel
Auto sagged fractions. Ship- buliding
to Isaura continued reffect cancellation of orders for tonkers. Tyros decline with-swie & Co.
Texas Co. losses renging to more than & Textron ind point. Special issues produced | Tide Water Arm. Oll some wide losres. St Joseph Time Inc. Lead fell more than
Twentieth Century Fox Film 2 on its Union Carbide dividend action.
Uninn Ol of Cal New York sicck Exchange United Aircraft
**nion Preise Railway bood volume was $4,200,000.
New York scck Exchange US. Foul "B" votane was 1,900,000 sha.es. US. Line Co.
American Stock Exchange volume was 570,000 shares.
30%
---S'PORE PAPER
Singapore, Feb. 10.
A Chinese newspaper, Nanyang Siang Pau, today suggested that Singapore should mill Áustra- lian wheat, and sell flour to Malaya, Indonesia and Thailand.
commeating The paper was
Flour Mil on the Victorian
request to the owner's recent Australian Government to rib- sidiae Malaya's dour exports to South-East Asia.
because
Nanyang said
of
cheaper four from Hongkong and Japan, and subsidised flour from France, Australia's share of the Malayan four market
1934 to 79 per cent in the frat had fallen from 93 per cent in 10 months of 1957.
Ilongkong was exporting
LONDON STOCK MARKET
London, Feb. 10, Jittery small investors acted today to depress the stock market.
Steels and englacering issues and two cheap ficur to Malaya by using slipped between one its cheap labour to grind
shillings. Motors declined Australian and American wheat. such as a shilling.
Natang Bald Singapore follow Hongkong's
retreated Chain store stocks It said the Colony on the government's appert to more careful
should example. had more extensive local and consumers to be export markets than Hongkong, in their buying. and It could get Australian
wheat cheaper than Hongkong could.-Router.
NAMESAKES
Singing,
2
ស
Olls were extremely weak with Royal Dutch down £9/10 and all other leaders down two or more shillings. Most gilt-
A bur. edged securities ensed. Other bolstering background
exception was the funding four Answers-1 influences included discussions
Actress, 3 Entertains
per cants, up nearly 10/-.
In several Japanese Strength Expert Hochdale, 5 Volce, 6 Dialect, 7 on possibility of
cents a pound, Film, 8 subsidy of six
Capri. 9 Theatre, 10 ond German liens featured an payable in kind, and continuing Lancashire, 11 Boards, 12 Songs. otherwise dull foreign market.
United press, doubts whether legislation in-
Gracio. Flelds. creasing acreage for this year could be past in time to affect the oncoming crop,
Nearby deliveries continued
to lag in face of textile market dullness and the slow demand for spot cotton. Allanla re- ported a poor business as mills a lack of 41% complained about
sales. Memphis said mills there complained of poor busi- ness with substantial Inventories of finished goods,
Volume Oven interest
also
*
POBIE
COMPANIES
PASSENGER/FREIGHT SERVICE
PENINSULAR & ORIENTAL S.N. CO.
nye stetskong m Tot 23rd February
มย
13
18.30
XD DOCKS, ETC.
Doc 80.50
6.15 0.30
31
2000
$220
100
YOU 200
300 a
Provident.
(0)
12.20 12.30
(N
LAND, Etc.
11.20 11.50
10.00 16.00
34 34.23 3100.rs
16 10.20
1.276
1.30 1500
2000
130 130
..... 24.30 24.40 1000
24.00
600
24.50
time far "how-
Star Ferry
fow of 2 points or more.
Yaumu...
C. Light
(0) 17.10 17.20
240
00
17.20
Railroad issues wers
con-Reynolds Motal
12.20
1ག ! གཏོ བ་
sistent lasers and at their Several
lowa
Sears, Rodbuck & Co.
Shell Ou Co.....
of t
Saint Res, Paper
304
1000
17.20
Mectric
28.00 28 Co
point or better, Eastman
and
Sinclair Vil
4372
I
27 25.60
Allied softened to
lead
Bolar Aircraft
Bogony Mobilo:1
100
800
28.00 chemicals lower.
Bouth Puerto Rico Buga
Bouthern Co. (The)
20
Telephone 27.20 27.10 INDOSARIALS
Many of the oils sold
all
Southern National Gas
Southern Railway (Com).
Cament.** Rops
20.20 14.50
300
Standard Brande
ગામમ
Month
10
Standard QH of Cal,
45%
Standard Oli of Ind.
Tar.
8,100
124,200
800 4
Standard Ofi at NJ.
都田駅
10,000 300.700
Bierling Drug Co.
July
18.500 224.000
14,000 1,100
Stokely-Van Camo, Studebaker-Packard Corp. Sunahing Mining
Dec.
0.100
Mar
10,500
12,000
May
0,090
117.3070
July
2.000 24.000
Total
63,500 1,320,100 bales
NEW YORK
Gutwarde
Leaves London
Prices of cotton futures closel
"CANTON"
Salled 7/1
today as follows:
*
"ROUDAN
Spot
20.05h
siped 11/1
Mar
33.20-21
"BURAT"
Sulled 25/1
15th March
May
35.28
July
35.37-30
24.97-94
Dec.
34.94
Mar
$3.00
‚“KAKMALA"
"CARTHAGE" "CHUSAN"
Selled 1/2 Unth February
10th. March
3th Apri
Mar.
7th April
13th Apri
July
14.07
Homewarde "CANTON"
4011
Prices of cotton futures closed today at follows:
Spot
34.03
35.17
May
July
Dec.
Mar
May
700
Singapore, Feb. 11. Brokers today quoted the fol- 287lowing stock prices: 1736 | Batu Lintang Rubber
Opening
Co.
7
Byndicate
416 British Borned Petroleu
$1.65
388
· LIVERPOOL
LTZ Cotton pance per lb. were as follows: COL_
25.30: contract: Mar/Apr. May/June, 25.48: July/Aug. 25.77; Oct Nov, 20.34; Dec Jan, 20.77.
23.00:
future closings,
*
Consolidated Tin Smoltora
20%
Fraser & Neave Ltd Ord... $2.07% Prater & Neave 7% cum.
#
"OLINDA"
Te
pref
$4.05
du 11th Feb. sails 120: Feb.
17145
Carmen Malaya) Ltd.
03.20
American Tob. "B"
16
Hongkong
Shanghai
in-
Anacorula Copper Armco Steel
43
Banking Corp.
1450
4036
Hongkong Tan Ltd.
54 34
224
Kunipas Ltd.
$1.42%
Allas Com. Mining w-Lauma-itai.
10%
Kuala Kampar Tin
2130
Malayan Breweries wit
July, 20.59; Oct., 40.00; Dec., 40m. In the United States, the aver- cge price of one-inch cotton at 14 designated spot markets was $1.05 $3.3734.70 cents.
*
#
New Berandah Rubber
43
1
Lid
$2.40
Petaling
Tit Ltd.
$1.05
Total sales were 180,000 bales. United Press.
"SANGOLA” due 14th Feb. all 15th Feb.
“FULTALA" dne sth Mar, all 15th Mr.
Raffies Hotel
$3.00
Singapore Cold Bamge
40.00
Stratis Trading
#1.70
Strails Steamship
United Engineers Ord.
tha Even so a reduction in bank rate in the near future It would not be the erst time cannot be ruled out, though I that a fall in the bank rate has would think 11 unlikely before the beginning of April. That is authorities compelled tha reduce the bank rate merely to when Mr Heathcont Amory will give official recoguition to be presenting his first budget.
to
trend that
armly is already catablished in
has
It the wages situation fact. When it cleared a Uttle by then, he
market
will
RUBBER MARKET
New York, Feb. 10. Rex rubber futures today closed 35 to 40 points lower with sales of 80 con- tracts. March, 25.65: May, 20.25; July, 20.50; Nov, 20.35; Jan.,
appears that this might happen; may be glad to use the oppor-250: 22633. the gilt-edged usually
discount the expected unity to announce a reduction
in the bank rate. For there Standard contract closed 35 to reduction, thus making the will be nothing else la the 40 points lower with no stles actual exercise of little more budget to be cheerful about. 23155 May 2022, July, than academic interest at least Express Service.
to the market itself.
But those who believe that the bank rate may soon be re- Juced from its present seven per cent have more to go
on
than this. For though the gap between interest rates in Lon- dou and those in other financial centres may beneßt sterling by drawing in foreign funds for short-term investment, Britain cannot ignore what is happen- ing elsewhere.
The Facts
New York Sugar Market
26.50; Sept, 20.35; Nov. 20.30; Ja.. 26.50; March, 205
Easier tendency reflected the London decline, plus the con- 610W Linued discouragingly domestic consumer demand and moderate abipment offeringa prices Far East at from the close to workable level.
Intra-dealer switching of May/July contracts at 25 points provided another trading rea- ture. Spot No. 1 Ras was quoted con-ni 20 cents.
New York, Feb. 10. World No. 4 Bugar futures closed 4 to 6 points lower with sales of 444 tracts.
The market
Research Bureau.
has been
SINGAPORE The market
Of a to:al 1,125 issues traded, 600 were lower, 287 higher, 238 unchanged
Dow-Jones
were:
0 Industriala 20 rails
15 utilities
83 stocke 10 bonds
closing averages
445.94
107.77
72.40
153.37
刮您
Comm. future price index .... 100.04
Closing Prices
Alden Ins. Acy Allied Chemicals Allts Chaqueta Am. Brake Shoe American Airline American Cable &
Corp.
American Cyanamid Co.
Amer. Forgn. Power Ain. Mach. K ́T dry. American Motas American melting Am. Bugar Rat. American Tel
fluenced by: 1. Unexpectedly Armour Domestic No. sugar futures slow sales of both now
ฟเบ closed unchanged to 2 points used automobiles; 2. Large and Ballimmer & Ohio The fact of the matter is that fewer with sales of 10 contracts. Simil risg new car inventorie: Beneficial Finance Britain is still pursuing an -
Bendix Aviation Corp. World No. sugar contracts in dealers' hands; 3. The down-mguet Cons. .... disinfintionary tonsaly
policy, ev sed pending Taw
market ward Lovision in ideas of tyre | Bucing Airplane while other countries are be-
Borden Rachine and more con-developments and further news demand this year for both how coming moto
Burroughs the recently reported and replacement equipment, Campbell Boup Co. concerning cerned with the possibility of
| Russian Inquiry LOF around according to the Commodity Caw (1) Co. deflation,
United Both the
200,000 tons. States and Germany have xe-
was reported cently reduced their bank rate The Soviet
for that incunt Against a background of Degotiating blackaning business activity and falling commodity prices.
Short-term interest rates are higher in substantially London than in any other im portant foreign centre, especial- York, ly in the care of New where the bank rate is now over Mar. four per cent lower than Lon-May July don's.
Sept.
Row
following previous purchases of around 100,000 tons. Kavana reporta
noted 140 100 have been mills out of grinding the new crop.
Contract No. 4 (world)
opened
Cat, Tractor Celanese Corp. C.LT. Tancial Corp. sus- ¦ Clustt Peabody
Colgate-Palmolive Co. Colombian Carbon Co, Commercial Credit Convalidated Edison
Crown Zellerbach Continental OU of Del. Cuban Amer. Bugar Diamond Alkell Damond Matoh Co Douglas Aircraft Dow Chemipal Dupont de Nemours Earman Kodak
changed on Friday's final prices but sagged throughout the day on lack of trade support.
Towards the close prices in proved on some trade enquiry for near shipment. Futures: No. 1 rubber par in. Feb. 2715-7736
Mar. 701-77 3.01 No. 2 rubber per lb. Teb. 7-10 701-71 3.02 No. 3.02 No. 4
3.63 Spot rubber unbaled
be excellent reasons pecting a reduction in the bank | Spot-icents per ib. feb Ľubaj 3.53
50-60
El Pain National_Cas 1716-779kmily Finance Corp.
66-03 02-84
The rubber market was easy donemal Motor
1aR d Gas Corp.
1.3. Суркия
US. Rubber
US Smalung US Steel
Warner Bros. Westinghouse. Electric Western Union Tal Co. West Va., Pulp & Paper Woolworth
United Presi
SINGAPORE
STOCKS
Lunas Rubber Estates Ltd.
Wear Bros.
$10.00
$1,24 $1.93
--China Mail special.
New York Metal
Futures
New York, Feb. 10. Prices of metal futures closed today
NEW ORLEANS
8888888
54.02
34.03
New con Jul00:
May/June,
Oct/Nov. 21.38; DeoJan. 27.49.
BAO PAULA Cotton
future
la closings,
fol- cruzeiros per kilo were is lows:
New York Foreign Exchange
New York, Feb. 10.
Closing rates were:
*
*
"CORFU"
“CORPI
มาช
18th March
Leaves Hongkong Due London
11th FebruRTY
14th March
14th March
14th Apri}
"SOLDAN" $
19th March
25th April
"CARTHAGE"
11th April
ub May
"CHUSAN"+
24th April
2011 May
"IKAUNA"
E
*
Agreed Merchant Rutes
Canadian #: Maximum Bolling 17: Minimum Buying/ 17% T/N 17-5/10-0/D.
VI S'para, Fenas, Colombo, Bombay, Adın & Pt. BAIA ·
* "BURAT" omita Columba & Bombay, calls Danos
extends to Hamburg, Rotterdam & Antwerp.
Marseilles
• "CHUBAN" also calla Marvellies.
1 "SOUDAN" omite Colombo, Bombay, calls tiavro and extends Hamburg, Rotterdam & Antwerp.
BRITISH INDIA S.N. CO., LTD.
trom Japan
Penang.
for Singapo alcutta.
Rangdon, Chittagong
From Calcutta, Rangoon, Penang & Singapore for Japan
from Japan
For Singapore, Penang, Rangoon de Caleutia
P. & O./B. 1, JOINT SERVICE
Bue 16th Feb. SALL,151 Feb,
"URLANA" duo 8th Mar
mails 7th May.
from Japan? for Ringapore. Penang, Cochin. Bombay, Kara chi
Kuwall Darah & Khotramshahr
From Karecht, Bombay, Cochin & Binrapers For Japa
From Japan
for singapore, Bombay, Cochin & BHAVNARAY
from Karachi, Madras, Passeng & Bingapore for Japan
EASTERN & AUSTRALIAN 2.5. CO., LTD.
“NELLORE” due 27th Feb.
sails at Mint.
“NAN LINH 6 th
for Australia
From Austraila for Japan
-All vestris kayə. Uhorky tỏ sáli at kay parts' an
or off the route at the route a sailings are subject „to changs op KitabEziend With or without notice..
For full particulars apply to
MACKINNON. MACKENZIE & CO. OF HONG KONG LTD. Tulephone Nos: 27721-4.
Canada
England omelal
非
41
30-day
Do-day
Austella
unonicial
South Atria
Argentine
Colombia
Equador
"UMARIA" das 19th Feb.
10112 281-7/31
*
sells is Fab,
*
"ODRA"
due
4th Mar. salla di Mar.
2.57-1.1
2.2819
300 13/10
0105
0030
United Fres
London Foreign
New Zealand
as follows, in
cents
per ib.:
Feb.
11.400
In "normal" times these might Oct.
for
5.41
Blanket crepa
Mer.
ex-
Mey
No. 1 pala crep
Firestone Tyre & Rubber Ford Motor
Mar.
$1.45b
Zing
Tab
4.70b
3.18
LONDON
General Electric
rate. But the present situation
Open interest: 0,211 contracts.
Copper Feb.
22.176
is far from normal.
The seven per cent bank rata
Contract No. 6 (domerilo)
with spot quoted
at 23 perco
Gen. Pub. VI.
Man
200
Gildden Co.
..........
Foodrich (Dr.)
S.
21.125
was one of the measures taken) Mar.
5.01 Boltiemand boum tom;
No. 1 spot .............................
2-21
8.78 April/June
25-22314
Homestake kring Co. Ingersoll-Rand
5.70 July/Sept
236-231
Inland Steel Co
Oof.Deg.
2315-232)
5.318
Jan.ar.
Int'l Harvester
last September to restore co- July
fidence piler a crisia that Sept.
brought sterling nearer
to Nov.
catastrophe then even now is #pot-(cents per the cit N
"ex-duty)]
#enerally realised. And it in Open Interest: axiomatic that conadenes is for United Press.
more caully destroyed than ro-
stored.
It is still too soon to any with |
any assurance that sterling is
out of danger, Foreign business-
per lb. Prices:
31 March-man
Exchange Rates
markota
thin
men are watching the situation Busters we done in the loop with close interesi. At the emalat exchange alighieri sign of now trouble,ming at the following rakto jog
UH, dolar (per, $1) komprare.
their slowly reviving confidence | sserting noted (pm £1) von
In sterling might collapse.
And the direction from which trouble In most likely to coma
Australian potem pac (3) .. doen rugih (pre 100) Kino- Moni. (yah- 500) kes
· Singapore - Marx200)-
-231% Doodyear Tyre...
Heyden Newport Corp.
| Interchemical Corp.....
- Business Machines
General kouzkais, cit basis, ports? TID. Mar. April
Estate-atype thin Mar.
Me thick Mar. 2
AMSTERDAM
*
24
DI
The rubber market was very quiet. Prices closed in guilders per. kilogram, cif Feb. - as fol- Iowa: 16.00 No. 1 rubber 11:30 | Mo. 2 rubber 11.02 No. 3 rubber "To No. 1 repa
International "Nickel
| International Paper
Int'l Tel, de Tel.
John-Manville Co,
Kees C. Tower & Light Errett Meyers Tob. Co. Lockheed Aircraft.
news meers.
Lone Star Cement Co. Lowenstein & Borm.
MeDonnell Aircraft
3.20 nom. | Marabi Iron_Corps
1.37 nom. | Minnesota setina Binom. Maken «Development. Siri pods innsanto Chamioşi Co.,
Montgomery Ward
(Ar
United Pres
London Metal
Prices
Landon, Feb. 10. Prices of melat closed today
In sterling par long ton as follows::
טר
spot
3 month Copper apot
Верото е
Exchange
London, Feb. 10. Closing rates weró; New York
Montreal Amsterdam
Brusesis CopentureER
Frenkkari
Stockholm
201-13/16-2JT 7035-78-11/18 108716-2063
*
from Japan