THE CHINA MAIL, THURSDAY, FEBRUARY 20, 1958.
TRADE and COMMERCE SECTION
NEW YORK US STOCKPILE
The Rochdale Tory Debacle RUBBER
Explanation May NEW YORK The New York
Have Big Effect On Future Policy
By RONALD BOXALL
London, Feb. 18. Those exports who pretend to discern particular reasons why an electorate votes as it does had a hard time explaining the Rochdale Tory debacle. Among the theories I have seen in print is one which says that Rochdale voters are tired of the hardships of the Government's anti-inflation programme and another which says that they are tired of the Government's failure to deal effectively with inflation, They cannot both be right. If blame for the Government's defeat can be attached to a single aspect of their management, it is that they have failed to explain what it is they are trying to do. But I am not saying that this explanation would have altered the result. The Conservative Party's backroom boys are now holding their own inquest on Rochdale, and
an have their verdict must influence on future policy. It may be that they will decide that economic, affairs had little to do with things generally. But I should be surprised if rising prices are not at the foot of this general dissatisfaction,
13 be
COTTON MARKET
New York, Feb. 19. Cotton futuros today softon- od after a small "opening rizo listed now crop delivarios to Ronsonal higha.
Stock Market
New York, Feb. 19.
MARKET
New York, Fob, 19. Rex rubbar futures today closed 25 to 35 points lower with sales of 14 con- tracts.
Mor: 20.30; Bay: 20.73; July: 20.00: Bept: 27.00; Nov: 22.10, Ja: 21.10; Max: 15:
Standard contract closed 23 to 35 points lower with no sales | reported.
Mar: 20.30: May: 20.30; July:
late.00: Sept 27.06: Nov: 77.10: Jan:
27.10: Mar: 27.14.
A burst of selling hit the cigarette shares
today and brought pressure into some other sections of the market.
House Puro Oll
This drive, set off by of Representailves Committee Day trading covering steadied | charge that Alter-tip cigarettes prices again at the close but the falled to offer adequate protec jint still Aniched with net on against nicotine, came at a losses of 4 to is points. Opening time when the whole
had been making Д to points New Orleans closed recovery under the lead of steels
and chemicals.
prices were unchanged to up
5 points compared with Monday's close.
March contract liquidation, anticipating first notice day on Monday, Joined with spot house selling in May in chilling the
initial demand.
new
crop
In Liquidation deliveries was credited to recent buyers in a realising movement
legislation pending clarification of farm Washington
possibilities
ini
Radio Corporation Radio Corp. Repubile Steel Reynolds Melal
market
Sears Roebuck & Co. Shell 011 Co.
good
Selling orders come into the tobacco in such volume that Lorillani was suspended for a
at Reg Peper Sinclair 501 Bocony Mobil
time. Others of the elgarette group fell more than a point to Standard Off of Ind
Lorillard
more than 3 points. was suspended, for a time yes- terday when selling plled up on advance of a statistical agency
Steel shares scaled down their to take profits in the issue. gair with Crucible weak Recent buyers became in- feature.
Chemicals dipped from their confused 05 0 creasingly
1058 the autna.
came into Losse some of the ells, store shares, and building stocks after the
whether or not an increase in highs. Chrysler Icet a point in acreage allotments for
| Solar "Aberaft
Bouth Puerto Rico Sugar Southern Co. (This) Southern National Gas Boulher Hallway (Com.) Standard Brandin Standard Oll of Cal. Standard Oll of NJ. Sterling Drug Co. Stokely-Van Camp, Studebaker-Packard Corp. Bunshine Mining Swift & Co. Texas Co. Texiano Inc
Water, Arti Oti Time Inc. Twentieth Century Fox Fin Union Corbirle
Union Oil of Cal. Union Pacific Railway United Aircraft United Gas Corp. US. Foll "E** 11.3. Сурет Dividend news operated vari-19. Rubber..
U.S. Steel
lust group had shown strength.
may be allowed.
Leading spot interests were accredited sliers of upward of 10,000 bales in the May de- livery, presumably on a hedg-ously on a long Rst of issues. US Smelting important operations liquidation in Lorillard rose at one time on an
was replaced
in later delive.árs, purchases
ab- but other trade interests irop months.
orbing March relling sold new
DIFFERENCE
t:carbys
with increased dividend.-
Of a total 1,001 Issues traded, 426 were lower, 410 higher.
New York Stock Exchange volume 2,079,000 shares.
New York Stock Exchange bond volume-$4,290,000,
American Stock
Dow Jones closing averages volume-170,000 shares.
were:
Exchange
Mar
пусти
50 industriala... 20 pell... Volume Open interest | 15 usustion
5.000 13.000
443.00
100.34
71,23
GS stocks ...
18120
May
13,800 334.200
10 bonds
LTB
July
21,000
214,000
Commodity Futures Index
137.30
Oct.
31,600
171,300
Dec.
20,100
15.100
1,900
$5,400
14,000
118,000
6.000
36.90G
Closing Prices
Alden Inc. Aty.
Allied Chemicals
Allied Mitla Inc.
Liverpool futures closed off 3 to up 5 English points. Liver- pool prices were 356 to 506
Trading in the cotton gray up and the extra £50 million of points under New York futures Which brings us straight
of the ordinary expenditure over which goods market continued slow against the problem
prices and Mr Thorneycroft resigned, to although mill budget. For between now April, the Government must de- the current year's estimates and generally unchanged
going subtracting the likely saving by Month elda whether they aru
which have not tougher departments with the shead economie policy put into effect spent their whole allocation. by Mr Peter Thorneycroft last September. Their dilemma
Mor. that if they do, there will
Add to this the difference May July other Rochdales, and if they
payments and Total between capital back down now they will cer receipts in the
financial next tally lose the next generi
year-which is also expected to election.
As far as the budget is con-rise despite the Government's tight rein on spending by the carned, the choice is between nationalised industries--and we July: 35.30: Det: 334: Dest 35.471 March: 23.64-.65; May: 35.52; leaving taxation
have a sum of £5,600 million, Javi 34,70. possibly even raising it at some which according to the purists
NEW ORLEANS points and giving back tax should be entirely covered by Prices of cotton futures closed
American Motal BODO of their
revenue meaning mainly taxa- today as follows:
American melting Spot. 34.43: March: tion.
Am. Sugar lief. 3 PURISTS
American Tel & Toi 33.40; Mosch: 35.61b; May: 33.81b; Americans Tob. "B" us examine first
On the basis of present taxa- Lot
the
July: 34.08. to fall say Lion, revenue is likely
LIVERPOOL and attitude purists'
ideal by about Cotton future closings, straight away that they do not short of this regard it as much of a problem 200 million. at all in a theoretical sense. number of things that Chancel-ce per lb, were as follows: as lor Heathcoat Amory could do
In this situation. He
payers money.
19
They would leave, taxation
it is or even raise it.
own
The reasoning behind this is leave the
ensure
11
There
Brea
could £200 million un-
Government In
121,400 1,181,000 hairs NEW YORK Prices of cotton futures closed today as follows:
Spot: 24.00: March: 30th: May: †
contract Mar/Apr.
May/June
July/Aug.
Det/Nov.
Dec/Jon
May/June
July/Aug.
Oct/Nov.
Dec/Jan
SAO PAULO
May:
Allis Chalmers ...
Am. Brake Shoe Aterlenn Alrine American Cable & Radio Corp. American yanamid Co. Amer. & Furegn
Ain, Gas & Electric
Am act. & Fry.
Anaconda Copper Armeo Steel Armour ********** Atles Cuas. Mining Bakiwin-Luma-liam, Baltimore & Ohls
Beneficial Finance_... Ben Aviations Corp.
In
29.23
24.24 2555
26 27
2Benguet Cons.
20.10
Bethlehem Steel
Boeing Airplane
Borden (The) Co.
2721
Burroughs Add Machine .......
2724
Campbell Soup Co.
Canadian Pacido R.
Cose (J. I.) Co.
to
Cat. Tractor
Celancee Corp.
I. T. Pinnedal Corp.
not too difficult to follow. In a covered and still budget for an New contract Mar/Apr.
of state
Inflation, orthodox ordinary surplus £400 million- which is a very respectable sum budget policy is to balance between the demand for indeed. and supply of national re- Or he could make economies
Prices were unavailable sources. If sufficient voluntary
expenditure day. savings are not forthcoming to
though after the Thorneycroft In the United States, the bridge the inflationary "map" the affair one cannot expect too average price of one-inch cotton
ex-much from this. Or, of course, budget tries to do it by tracting
at 14 designnied spot markets compulsory savings. he could raise taxation. In the
wns 34.55 cents. And it does this by provkling a present mood of the country- Total sales were 10,733 bales.
surplus of revenue over ex-
and especially after Rochdale-United Press. penditure.
connot see him doing this either.
Last year, for example, Mr Thornmeyeroft budgeted for a
But neither can I see him
surplus of £452 million "above going to the extreme and slash- powerful the lino". This was the amounting taxation as the
by which he expected ordinary Federation of British Industries revenue to exceed ordinary ex-haa urged him to do. penditure.
But that still left provision to
SURPLUS
be made for covering
Dayments below
capital
the line".
"The budget surplus as a These were expected to amoun! means of counter-inflation has
£854 millon,
£267; been tried and found wanting," millon of this was automatical- says the Federation in a memor- Chancellor of andum to the
to
but
The FBI would have
the
A DAY OF
SMALL DEALINGS
London, Feb. 17.
It was a day of small dealings
Chase Manhat. Bank
Chrysler Motors Cluett Peabody Colgate-Palmolive Co. Colombian Carbon Co. Commercial Credit
Consolidated Edison Continental Ou of Del. Crew Zellerbach Cuban Arer. Sugar Diamond Alami Diamond Match Co. Dougies Aircraft Dow Chemicals Dupont de Nemour Ebotern Airline Enatman Kodak no El Paso National Gas Family Finance Corp. Firestone Tyre & Rubber Ford Motor Guneral Electio General Foods General Motor
Gen. Pub. V.
in the foreign exchange market, Getty Oll
tone
ly covered by expected capital the Exchequer this week. Many with movements generally nar- Glidden C receipts. Of the remaining
for Goodrich (B. F.) Co. £357 million, £402 million was experts go further and say that row. The closing
Goodyear Tyra Its present high sterling, however, was favour cult ou covered by the "above the lino" taxation on
lovel aggravates rather than able.
Hayden Newport Corp. surplus, leaving only £125
alleviates the inflationary prob- million
be found from
There was a moderate activity
Co. Ingersoll-Rand lem.
Steel Co. in the sterling-dollar exchange voluntary savings,
CRISIS
and despite an easter tendency interchemical Cora,
Int'l Buter...
Machines Int'l That was considered at the Chancellor reduce income tax, the close was unchanged,
The Canadian dollar closed a international Nickel tima to be ultra-coulious profita tax and the petrol duty fraction dearer after moving international Paper budgeting. But we have. had to produce a reduction in tax erratically throughout the day. John-Manville Co another crisis since then, ma tion of the order of £200 to
cross Tate Waa little Kane C. Power & Light the Government has said that £250 million in 1858-59.
This The
Kennecott Copper........ Liggett Mayers Tob. Co. It intends to deal with inflation would be possible, it says, if the changed.
Among Conunentals, guilders Lookheed Aircraft .... once and for all.
Government made a determined
were on Loews Coment to. and Swedish kronor effort to reduce its In these
circumstances
*x-
offer and depreciated to a small Lone Star fell to a
Lowenstein & Sons. many exports including the penditure unill it Governor of the Bank of Bog-much lower proportion of the extent, while Danish kror McDonnell Aircraft
budget national income than its present also cased. land-bellove that the
Mesabi Irun Corp, D-Marks and French francs nenota Mining should be balanced "overall"one-third.
lost early improvements, while Mission Development
Hlo lont Memento Chemical Co.
now
Own
Monomery Ward
-which means that the rovenuo Specifically, the FBI recom- sterling gained a
surplus "above the lias" should mends that the financing of the ground against the Swiss franc Motorola me be large enough to cover all nationalised industries ahoula the outstanding capital items | bo
left to the free capital the closing stages China National Cath Ree. "A "below the line." (These range market from loans to local authorities longs. This,
Mail Special.
where it properly be-
it says would
for house building and to the allow scope for tax nakon London Foreign
nationalised Industries for the to about £350 million.
expansion of basic resources, to
My own forecast is that Mr
grants for Colonial develop- Heathcoat Amory will steer a cœurso somewhere between those
mont).
On the best information recommended by tho purint
Exchange
London, Feb. 19.
avaliable, ordinary expenditure school of economists and the Closing rates were: in the next budget year will be expansionist lenders of industry. | New Kork,ren*
Mozikrină
in tho. ragion of 25,000 million.
Which, getting down to cars, Amaterum This is calculated after adding | meana" that, he will leave ins" zrnkfurt this year's, supplementaries, the tion» virtually untouched.—ER- MAD
Blockt.elm additional national' debt inferest | pruss Servico,
831-11/18-3.8196 17-13/133975-6/18 70.631-10:031 1749-1707%
National Dairy. Prod. NALI! Lead National D COLD, New York Central Norfolk & Westerd By. Olin Malhieson, ***** Our Lavatr
· Owen-Illinois Glam Oxford Paper Co. Prolic Gas & Elec. ...... Pan American. Alfaraya Paramount Pictures Parke Davis Co. Penny 2. C. Ca. Penn.:Balt po..... Phlip Moryła jesen Procter & Gambla Co. Pittsburgh Plate Cam Publicker Industries .........
17
Warner Bros
401
20%
да
SUGGESTIONS
By SYDNEY GAMPELL
London, Feb. 19.
At this time when international comfnodity weak. ness holds the gravest threat of world slump and when Washington's anti-alump policy is to strengthen business sentiment on inventories, the U.S. stockpile recommendations are dis concerting.
rouse
nostals Brid
Prices cased in a dull market,
They are helpful to American] The committee's recommendia- following the London trend and reflecting the continued slow manufacturers of medical and tien to retain all useful present
Anished
of supplics stockpiles interest, many other 30% domestic
consumer Shipment offerings were teht for human survival and relief minerals is not to prevent him Traders awalled the resumo- in nuclear attack If taken selling any quantities of ther on of trading after the New seriously they could be most in excess of a three-year supply Year's holidays, Spot No. 1 Hss unhelpful to some commodity if he regards such, sales as con-
ducive to national security, was quoted at 26% pence per markets.
Their wording could
Perishable materials in excess pound.
SINGAPORE
fears that one man (the Do of the three-year goals "should Director) be sold or otherwise disposed The market
Mobilisation quiet fence throughout the morning with may eventually be given dia of when this can be done with 33 Boma small business 10 cretion to sell up to 40 per cent out "Crious" 30% squaring up positions.
of some existing stockpiles of foreign economie both
minerals md perish [No. 1 rubber per ib. Mar. 11-23ables (to reduce them from five the definition
A 71-7 years to three youth supply). being qualified as stated above. For the many stockpiles Study of the Pettibone port
which have attained or excood- by the Washington depart- ments will take time, Any ed the previous five-year goals,
would logislation
tako more
the potential implication is time.
obvious, But some important re- disposals
Future closings were:
due
No. 2 rubber per lb. Mor. 24%-15 No. 3 rubber per tb, Mar. 712-7135
34*
49
1242
No. • rubber per 10. Mar, 18-03
78-70%
Spot rubber undated .... Blanket repe
No, pelo crepe
The
M-13
02-06 LONDON
od
domostia
disruption or international politicst profudico
Buriou
of
rubber marke! was commendations
The qualified recommonuation easier with spot quoted at 23 and on negotiated termination to relafn metals and minerals
Prices; pence per lb.
of outstanding contracts might is based on their casinoes
storage, their freedom from rotation
3745x1 | General quaforts, elf baris, elf porta:
serious restraint
problema, and
sideration for United States
50%
This could be ominous duce new uncertalalles
on Overseas perishables, In theory least a future recovery in commodity the perishables
from the recommended
No. 1 spot .... Settlement nctase term:
221-23
not require legislation,
REPORT
April/Jun0
23-3
2304
July/Sept.
23-23,1
Oct/Now.
239-237
The report seems to
20%
J/MAX
intro- mines
or at
2434
b.
bier
073
Mar.
April
23-2134 23-232
marketa.
023% Estate crepe
17
thin Maren
thick Mateli
4
AMSTERDAM
The rubber market was quiet. Prices closed today in guilders per kilogram, cli March as
follows:
No. 2 rubber
221 buyers
No. rubber
2.18
220
2.34
United Press,
It ascerts that while the far-sion to them
of purchases metals and minerals policy | reaching impacts
counting on and sales
domestic and not On foreign markets and on foreign supplies relations must not be overlook- general North American neta, od, the emphasis in stockpile. management should always be on natioral defence and sur- vival needs, not on regulating supply the national economy.
could beneft
exten of tho present at emergency outside
| Weltghote restric
Wortem Union Tel. Co. West Va. Pulp & Paper Woolworth
United Press.
LONDON GOLD
No. 3 rubber
No. 1 crepe
MARKET ||New York Sugar
London, Feb. 19.
In the gold market, thero
was a moderato turnover at the fixing, with a fair demand particularly from the Continent. Although World more gold was available. buyers were not pletely satisflod. Tha market has been rather qukat since the fixing.
were
com-
of
121
50%
10%
40
201
172
42
45% Dellers
13
ал
10%
20
There were buyers of switch sterling on American.cccount at sellers at $2.784 491 52.78 and
against $2,703⁄4%
and $2.77%
at
to
Market
New York, Feb. 19.
the,
from
LITTLE
That area has little or no
of
Important perishables such as rubber. In
come
This disregard for immediate practice it has a big supply of Gub-synthetic rubber (though the economic needs is not ordinated to its finding that in a synthetic plants hardly
diclum limited war and in any inten- within the committee's sification of economic and poli- that anishing facilities are more
bombing tical
targois warfare it is important vulnerable that the industrial economies of than are raw materials produc-
United States and other free ing facilities and inventories).
Morcover it is recommended nations continue to operate at
that ary enlargement from the high levels.
goals to the greater Its main concern is not with minimum such warfare but with nuclear security goals should be reached attackt. It argues that stock-"on a low priority basis" with piles of the present type would preference to United States woul be valuable in the subsequent accessible suppliers. (The f
ference between the minimum
rehabilitation but it wants to
No. 4 sugar futures today closed 1 point higher 4 points lower with sales of 352 contracts.
the emphasis to other and the greater goalu is only in The Domsetle No. 6 contracts shift
come first, the discounting of distant r closed
Ithings that would 2 points higher to
plies). of 163 including burying the dead. point lower with sales
In any case the present strejk- There
buyers
contracts.
DISCRETION
piles of rubber and mos; olbor European gold at $33.1495 on
Evening-up operations in the 76 ounce of
perishables on the old five-year 05.0 fineness and March delivery shared attention
well thebasis may already be Stocleplia disposats are $33.1587 against with liquidation in the later do-
sensitive element for above the "greater" gouls on $33.1446 and $33.1800 previously, liveries, some of it influenced by most Eberto they have the new three-year basis.
Der Several of the other recom- ncoded Congressional the easier tone in the raw situa- markets Lion
Disposals of the mendations such as those on However, several countries mission.
and
barter-have indicated a willingness to buy vastly smaller British stockpiles oft-rades sugar at levels alightly under which lock this legislative safe ominous implications for mar-
have often guard
disrupted kots. Their complexity might the going market, Ceylon, Ire
market effect and Now the Pettibone committee comprehension, unless it ag land and Spain were accredited markets. buyers over the past day or two.
Dealers said production of wants the Defence Mobtilation givates unserratainty.
The most constructive have discretion in sugar in Cuba now is just about Director to
He should be allow commendation may be for the at its peak with rebel activity disposals.
ed to sell any surplus of a publication of stockpile statis. of little significance
and. Traders in the domestic con- stockpile material, without the ties: Ignorance
marked time present executive restraint that often lead markets tracts mostly
stockpile of thai perate any perils, watching development in the raw the whole situation. Tomorrow will be the material must first have been this disclosure recommendation last trading day for the current declared surplus, and also with is made only because "stock
out obtaining the March delivery.
express pile goals for most materials achieved."—China approval of Congress, as
have been Mall Special. required.
50% previously,
23
There were buyers of switch sterling on European Con- tinental account at $2.78 and 00% sellers at $2.78% compared with
$2.70% and $2.77% previously.
In transferable sierling, there were buyers at $2.7940 and 551 Feilers at $2.7950 against $2.7020
and $2.7930 previously. China Meil Special
514% 300
34%
4日号
7
50
Contract No. 4' (world)'
Mar.
3.40
LONDON STOCK
May
3.45
July
*.40%
Sept
3.09
Oct.
3.40a
Mar.
9.370
May
Open interest: 6,390 contracts.
Contemot No, € (domestle)
Spot-(cents per lb. fob Cuba) 3.48
Mar.
May
5.60
The stock market closed mixed
B.72b
in quiet trading today,
Sept
Nov.
B.TOD
*5.00
Eniall gains.
OpenInterest: 1,317 contract United Pream.
MARKET
London, Feb. 19.
Gill-edged securities eked out Spot cents per lb. eie NY
Ex-duty)
Oil started the day strong on
bear covering but was overtaken
by profit falting in jater trading New York Metal
and finished with
fractional
guins, Shell, however, scored a
gain of more than a shilling.
Industrials were mixed with Jones predominating. Elec- trical and department store 67% ( issues were higher and shipping
shares lower,
[Am.
shares Copper Tina were firm.
Futures
New York, Fob. 10. Priece of metal futures closed today in cents per lb. as follows:
Marth Lead)
Apri Zine March
April advanced. Copper Kärch
April Tin March
Apri
Trading in foreign bonds was highlighted by a strong show. ing by German lions,
Dollar stocks were mixed- Walled Pres.
New York Foreign
Exchange
Now York, Feb, 19. Closing rates were:
South Assn.
„Others unch
11.436 11.43
B.TOLI
22.000
United Press.
London Metal Prices
London, Feb. 10.
Dow
blunt their
ICA
secrecy
to exmg. However,
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-142-3/18 | Land, and hall
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