THE CHINA MAIL, MONDAY, FEBRUARY 24, 1958.
Page
TRADE and COMMERCE SECTION
US ECONOMY: WEEK'S
SURVEY
Govt Pumps New US COTTON JAPAN'S EXPANDING
Money Into
US Bloodstream
By IVAN ZVERINA
Now York, Feb. 23.
The government moved last week to pump up to $3 billion of new money into the bloodstream of U.S. economy in its strongest anti-recession action to date. Still very much afraid of laying the groundwork
GOODS SURVEY
Now York, Fob. 23.
Now business, in all of the basic textile markots con- tinued on
the slow sido
fast wock.
Buyers of cotton goods, in both the grey and finished state,
along with wool fabrics, rayons,
burlaps
and other hard fibres continued to follow 1 tight- on just sted polley of taking what they needed for quick de-
[livery.
Market
analysts,
looking
drew encouragement
to a possible swing back to inflation, the Ad-ahend,
from the reserve board's action ministration kept its tax-cut scheme on the in cutting reserve bank re- shelf and gave priority to a major credit- quirements one half per cent, easing step instead.
The Federal Reserve Board on Wednesday lowered the reserve requirements on demand deposits at its 6.400 member banks by one half per cent. This will immediately free some, $500 million at the end of the month when the mea- sure becomes effective,
ind the administration's pre- dletion for a pick-up in business
employment in March.
Impact of the first step should
lieved but
be felt son, some quarters be- chants were more
the first step mor
preoccupied with the lower slock market trend and a further slow-down In retail buying in the wake of blizzards and sub-zern weather over a wide area of the nation.
ECONOMY: A CHANCE FOR US
Washington, Feb. 23.
Japan's expanding economy presents a great opportunity for U.S. farmers to share the growing market for agricultural products there if Japan is given a chance to earn dollars in the United States.
LONDON STOCK MARKET
London, Feb. 23.
HONGKONG STOCK EXCHANGE
Our Own Correspondent Business done on the Hog
kong Stock Exchang this morning amounted to approxi- mately $925,000. Noom quota- Lions and the morning's trans- actions were:
Shares Buyers Sellers TANKS
833 450
in Bank
INSURANCES Lombard SHIPPING Waterboat
This is the substance of a re- Asin Now...
for part on prospecis
U.S. Wheelocks
DOCKS, ETC Buricultural products in Japan. Wharf.. Issued by the Department of Dack ....... Agriculture's Foreign Agricul- Provident ture Service.
The report said that in 1950 40 per cent of Japanese imports
33
39.00 1.273
0.25 0.33
(0)
IN
13.20 12.40 11.30 11.50
LAND.
ETC.
HK Hotel
American statistics of ris-rom the United States consisted of farm products. The report ing unemployment and of and this trade "was particularly Land..
beenuse it was daltar sehreys cut-backs in production valuable
business." simplified into "it looks like a recession coming" have rather dominated London's market last wook.
C. Light
The Decline In US Business
New York, Feb. 23.
The current U.S. business decline may be "some- what greator" than that of 1953-54 and re- covery may take longer, a Wall Street survey said last Friday,
But indications are that business may be stabilised
Salen
10 E 135 10 £ 935 10 075
Tri
"at lower level" by the middle of the year, it added.
rapidly rising prices The report, published by the time,
-continerital Corporation, which lead to consumer stock- ono of the largest Investment|ing of goods, as was evident at
in companies
America,
Korean Was the outbreak of the prepared by econòmiste of the war,” Union Service Corporation.
They said the one thing that might speed up recovery woult be of the US. consumer be
apressive buyer camo "on Boods."
CON
The report said there "does not seem to be any historical basis for expecting the sumer to bring this readjust- ment to un early termination breause of aggressive purchases and,
thero until
15 more There is little indication of evidence of buoyant purchasing, purchasing At one la forced to conclude that
of
1 18.20 3.000 18.30 this increanod
500 or 10.40 present", the report added. It is doubtful that Jung' or an 1,000 or 10.30 "However, as yet, there is no earlier month will see the start 2,000 1030 H 4,800
1.50 evidence that this decline will of a recovery movement, al- 33.75 assume the severe character of though the lovel of business the 1937-38 period, and, even may well have been stabilised more certainly, not that of the at a lower level by that time." long depression following 1920."United Press,
33-23 33.75 500
1
2.40 1.35
1.50 1.30 1.320 125
130
24.30 24.60 1,800 24.50
050 $7.50 99.50
24.0
.. 10.00 17.10-4,000
17
27.00 1,500 27.00
27 2720 2.4700 or 27.20
Eectile .... Telephone.
INDUSTRIALS
Healty re RUBBER But the report warned that A. Japan could rat continue imports Trust RS”
VITIES at their present level or Increase TTACI them unless it can sell in the United States. "11 must sell if it Yaumati is going to continue to be a good Nobody suggests that it might
market for American products." The Treary used up $100 Since one reserve dair cut
Turn into a prolonged depres-
The report noted that in 1030 be multiplied to
a million of its free gold supply support
Sales yarn spinners reported sion, like that of the 1930s, for average of six dollars in addi- last week to increase its de-
U.S. tolalled one billon dellars. tional lonus, the netim ingy posts in federal reserve banks, sporadically small buying fur-the Rumption is that the Pre-total Japanese Imports from the Better grade. knitting sidont's Council of Economic Japan was the largest foreign eventually
thy adition The government thus had $100 ries. Mein
mastered buyer of U.S. cotton, wheat, bar- more to spend before counts made the relatively best Advisers has fully of a total of $3 blot to the million
coming showing. Mults were willing to the technique of injecting freshley, soybeans and hides Immediately available busk now tax money starts
imanu stimulation inte in The withdrawal did not talk price to interested credit in the United States,
facturer.
economy. But Lutal to the Treasury's, Since the percentage of re-d
by cash assets. The Treasury's free requirements varies
was thus much coli "eashion"
Concensus was that the measures duetion of reserve requirements ultimately benefit the WIL
Lake effects
nerve
geographical location crttlelsed arrangement which duced in $400 million. many bankers think obsolete.. this is how the new will work out;
reserves
Central Reserve Banks-gonomy but that It wil
before the York time those in downtown New and Chleagowl! lower their show,
by half
per cent
lo
The
deposits and thus
release
ax
esilmated $125 million.
19% per cent of net demand
KC-
re-
of
secand
ard
STORES, ETC.
Dalry Watun 1. Craw...
inflating skins. temporary Japan also buys considerable COTTONS
United Press.
rise of unemployment to 5,000,- quantities of corn and tobacco-Textle
Nanyang
000 jobless is not exactly an advertisement for the "Amerl- can way of life" and Britain's well-to-do classes have shown last considerable nervousness weck.
to sell,
10
two
did nel look Some quarters for any
change in the current situation for several weeks, by which time users should begin thinking about Initial quarter needs.
Sisal, hemp and burlap prices
They have tended reflected absence of buying The Financial Times index of terest, Burlap prices receded
low mark. industrials fell from 158.4 to a new 16 years Spot 10 inch 71⁄2 ounce burlap 157.0 on comparatively moderate
sates. Rolls Royce fell ex-dock at 7,00 cents a yard, basis, was the lowest since mid- shillings three peace, less be- cause there was substantial August 1958. Rope markers continued to postpone new pur-selling thun because there was sti jcsa buying. The big chases of hemp and sisal, not Defence contractors do
chain stores also saw an exodus The The rayon, acctate and man-
of Investors; Marks and any results from
UK versal surge such made Abres grey goods market
Selling con- Spencer and Groat placement of continued spoity. and rural communilles 53.0 billion in contract award-slated primarily of M-in bual-Stores both lost one shilling, redure their
MAJOR CITIES
Other reserve city banks
is
major cities will lower their
Arst
was still true The same
large-scale government They, too, defence enntracts. have not yet filtered down to business the Jovel where would get any of the uppro priated money.
from 18 tu 171⁄2 per cent expert
free some $105 million. Reserve defence spending
banks in the
towns -Wilt
country-smutierns the record
reservered for defence between
Octo-
show before another month or Iwo.
with
Exchange Rates
delivery, ness for pot from the present 12 per cent to her and December 1957-to prices showing a slight coriness, 111⁄2 per cent-releasing an-
United Press. other $180 million in reserves.
The government is convinced this is the right step for the time being. It is being backed by the reported decision the Joint Congressional Econo-
Thu Committee
such mic credit-casing moves along with spending on Dublie works should take priority over
Inmediate cuts as the recession weapons.
of
inx-
But once they do inost busi- nessmen believe they will pro- since duce "The biggest your Korea" for new military bust- ness, Non-military business will benelit, too, of course.
simply Meanwhile, "It's matter of waiting until the new business filters down to us,"
Anu-one contractor sid-United
On the other hand many bankers
reserve re- say the
quirements cut is too little, too lute
The government hopes the reserve requirements drop will have a vital impact on interest rates. If the Injection makes
money
Press,
15.30
white Woolworth fell ning price,
NEW YORK STOCK MARKET
New York, Feb. 23.
piled ир Adverso nows
against tho stock market during the past wook with only a small dent made in prices. Instead of a sharp decling, the lovels trading dried up to of last October. Daily averagt volume was down to 1,840,200 shares, against 2,000,513 in the week, and 1,741,121 previous shares the corresponding week narrow. of last year, another moving market.
When the averages appeared
on Friday, indus trials stood at 430.02 off 4.88 points on the week; ralts 105.31 of 2.30; utilities 71.93 of 0.12; and 65 slocks 190.21 of 1.71.
Compared with a year ago at the time industrials down nearly 6 per cent; ralis
and 65 stocks 20 per cent per cont while utilities chowed рет a gain of more than dollar cent.
new
VIDIO
14.20.
18.50 10.00 12.50 14.00 13.30
MISCELLANEOUS
4.53 2.00 0.00
10.00
INVESTMENTS Yonglaze
1.K. & F.E
1.50
Invent Sungala
TC-
"Business activity the port said, "is now at approxi- mately the level called for by growth trend the long-term line, calculated at 3.70 per After increment, cent annual having execoded this line for several years,
While it
well decline i 300 g 10.30 below the trend line for some
1,527 +0 27.23
500 et 27.10
$,000 5.50
may
timo, unit has often done in the past, continuation of the long-term growth should even- tually bring a higher level of activity without generating a boom,
DIVERGENCE
SINGAPORE divergenes between the com-
STOCKS
"There has continued a wide
mon stocks of cyclical companies and consumer goods companies, current level, Even at the
cyclical stocks have declined than their highs more from during the 1953-54 recession.
Many optimistic forecasts of an early recovery in business
based
on the expectation
A DROP IN VALUE OF US GOODS & SERVICES
Washington, Feb. 23. The total value of all Ameri- can goods and servicos dropped from an annuat rato of US$440,000 mil- lion to US$432,500 million in the final quartor of Commerco 1957, tho
announced Department
today.
of
Singapore, Feb. 24, Brokers today quoted the fol- towing stock prices:
Opening are
The decline compares with a US$12,000 mlBlon $1.57% of increased consumer buying drop
batton study of carller periods from the peak to the indicates that such expectations during the 1083-54 recession are not supported by historical before the gross national pro- precedent
Dalu Lintang Rubber Co.
Ltd British Borneo Petroleum
Syndicato
Smeltera Consolidated
Ord.
Neave Ltd and... Fraser Fraser Neave 73% cum.
prof Gammons (Malaya}_Ldd. Hangkong
A
dicate that the current situation
The drop in the final quarter
of 1957 was US$500 millon
La not ha strong in many ro tilgher on an annual level than exception of President Eisenhower forecast earlier in His January economale report
lo congress,
348
Shanghai
Banking Corp Hongkong Tin Lid, Kumpas 150.
$3.00
*$4.05
$2.2711 $450. Ba 3d
30830
duct started to increase again.
"A comparison with the last rocession in 1953-54 would -
spects, with the
Lunas Rubber Fatalex Ltd. Malayan Breweries ...... New Serandats Rubber Co.
Ltd. Petaling Tin Lid.
#1.05
Increasing period."
a
tho
$3.15
$3.55
11.75
$2.50
$0.00
11.55
$20.70
Oils were the most hopeless sector, fort the cutting of prices and of production were in and out of the news almost every day.
Royal Dutch was down seven Ruiners was done in the local shillings six pence to a
Kuala Kampar Zin thia low of 14 sterling; Shell
Tranporiz
4ut the close old stock lost 3.3 shillings to a new low of 123 1.80 shillings three peace and the
9.02 others were down between 2 20.00
1:50 shillings and three chillings.
Japanese wero quiet nih with the 1930's non- week assented closing with a gain of
sterling,
1890's, while the both assented and non-ascented, were down 1 sterling.
The
market exchange unofficial morning at the following rates:- U.S. dollar, (Der $1) Sterling rates (par E1)... Australian notes (per 211 Indonesian rupiah (or 100; Slam tlen (per 103)
(Stralis). Singapore
Washington's
to plentiful enough force bankers to compete for borrowers, the changes could push interest rates down.
Cheaper money in turu might encourage businessmen to
rew
have been shelved because of the recession and thus provide the stimulant the
Optimism!
Hard To Take
London, Feb. 23.
for premium
British government stocks.
They all loat ground, but war loan lost 7/18 and the other Jong-dateds were ranged in between them. This is a good for short-dateds,
were
•Rome Hotel Singapore Cold Storage Straits Trading Straits Steamihin United Engineers Ord. Wearne Bros.
cumdiv; edeb.
special.
A
This accelerated government Despite tho fourth quarter
spending on defence,
the ro-
port said, plus "unemployment decline, the Commerce Depart benefits, public, and privatement said the gross national Pension payments, and an in-product, in 1957 totalled US$434,- creasing portion of wage earners 300 million, with the nation's records both in output at new 11.25 tin service, industries, should go volume and in value.
鼠 reasonable China Mail
5.10
Bank Of France
Statement
Paris, Feb. 29. The Bank of France statement for the week ended Feb. 10)
bonds fell 14 to 8 per cent. | Sales so for in 1950 total It was a disorderly week for 91,440,500 shares, against 70,182,024 a year ago. In the 1957 period the market was in an upturn after touching its low up to that date on Feb. 12. The rise carried on unili July 12 held unchanged. There were 70 new 1957-68 highs set reads as follows: and 22 new lows. Lorillard Toil gold holdings Jed in turnover with North Total other currencies Sight balance abroad American Aviation spoond.
EPU Jersey Standard third, Safeway Advance to Currency Stores
Stabilization KARMAAN fourth, and General
Total bills discounted 1,835,200,832,673 Motors fifth. Last week's most
Dank notes in circu active Insue-Royal Dutch- Lotion .... 3,148,208,1323,330 made sixth place. United Currant accounts and
459,317,79,030 deposita
-United Press. Frees,
demand col-wanted by the City Of London rather than by the ordinary to it in investor-United Press.
consider expansion plans that The sky still refrains from falling in. Wall Street
had six successive declines but no such lapse as could easily have come February of this sort of year,
is economy
waiting for.
EARLIER ACTIONS
the
Earlier retions--such as
DTC
control Some people find Washing- | evade exchange lowering ot discount rates ton's optimism harder to take finance a run on sterling.
poor business nows, The concession ly paraded as made credit easter but not then the
Street manages to merely a convenience to foreign more abundant. About the only but Wall
stockholders who can already sector where any results could take both.
reclaim British tax under be observed, was private home
double tax agreements. The A report by building. Bureau of Labour statistics shows
rew starts on housing from an nnnun] rate of $70,000
011
increase
December to January,
1,003,000
in
This has bee accompanied by a parallel hercasa inap plications for Federal Housing Authority insurance, on
is to
}
soll-
NEW YORK COTTON MARKET
Now York, Fab. 23. Trading in cotton futures last wook highlighted increas- ing strength in now crop months which wont to pramlum over · old crop
fint deliveries for the timo this season. At Friday's close the
a
ZURICH GOLD
BAR MARKET
London Stock Exchange in dustrial shares fell in the week
Where a non-resident was not lo February 14 to their lowest since 1954, a shado below the fully reclaiming the concession depths of the sterling crisis of it is far more than a conveni- last year and of the Suez war-nceand in any case, the Bri-
Ush Treasury loses all the tax. fare of 1958,
In other respects, Britain The internal purpose of the
She still now loan fores much better.
replenish the has virtually full employment of Government broker's means of
funding by both men and plant nothing to continuous resemble the serious unemploying long-term Treasury bonde Other Asent developments ment that has appeared in the on the market,
In the week to February 14 he sold out the last of the long ruled 14 to 73 points-70 cents stock (maturing in the year to $3.05 a bule higher than the 2004) which he previously had preceding week.
deferred Strength in the top. The 5 per cent coupon of months reflected; 1. Possibilities and of capacity, whilo America's is the new loan is In line with for a big lecrease in the retire-moderate, but business with the down to below 55 per cent.
the market but pension
guges.
this week:
mort-
Two Now York banica eut interest rates they pay On foreign time deposits funds
of foreign governments and banks deposited fur specific periods of time.
Hanover Bank reduced by
per cent its rate on both 9 day and six-month
deposits
to 2 per cent and 3% per cent respectively, J. P. Morgan cut Sia six-month rate
similarly
United Stalas and Germany.
LENGTHS
Britain's steel industry
La
оп
still working at over 90 per cont
surplus dollars payer
to be
most of
mined gold.
list
Zarich, Feb. 22. The gold bar market displayed a firmer tendency during the week to February 20 in quiet dealings on very limited ceiling by the Bank of England and small general offerings,
Dealings with the Middle East America were South
funds ment of acreage to the soll bank Far East was active.
frane 201,201,302,420 11,065,832,219
11.771,000,000
zero
Bank of England Statement
London, Feb. 23.
The Bank of England state- ment for the week ended Febru- iary 18, reads ca follows:
Notes in circulation ...£1.950,124,338 13.039,040 Putdic deposite
218,299,718 Private deposlis Government securities.. Other securities
aceipts Ratio
244,104,0G2
40,345,000 43,500,391 140
Unlied Press.
NAMESAKES
Answers-1 Salute, 3 Manner,
3 Dickens, 4 Wealth, 6 Aititude,
13
(From
On the gold coln markel, the с Expect, 7 Obsequious, 8 The inflow of money to Law and other non-tax payers like programme; 2. Expected contrading volume was unimportant Humble, Bully, 10 Servile, 11 don sui continues and the Bank the high coupon while sur-tax gecsalonal opposition to
prefer the tax-free ministration plans for lower and no significant changes were Greeting, 12 Condescend, of England stili cems
capital guins on existing
low price supporta; 3. Possibilities noted. Selling by the Bank of Hand, 14 Money, 15 Polite, 18
and adv-shaking. salting some
Moll into gold by retaining instead of coupon stocks at big discounts. for a stringent supply situation, England at times
Unclo Pumblechook good grade pressing effect-China Ühe nowly- but left its 00-day rate at the seling
The consensus is that the new particularly
Dickens" "Great Expectations.") old 2 per cent level.
cotton, before the new harvest Special. stock doo not preclude an Simultaneously, the London early cut in the bank rate. Long in the autumn; 4 Lessening muthorities have gone to great yields have already fallen to inst chances for legislation in tino lengths to induce non-resident September's pre-bank rate level to affect the 1958 crop,
may close Now crop
the owners of old and now sterling while the basic rate and short
week at 25,00 cents a pound, balances to tie them up into theylouds are much tighør.
40-point pre- Disinflation on Government's stabil-hing Teggury's new 11⁄2-per cent 25.
the year loans, tax-froo
model may require an absolutely mium-2.30 balo --- over realdents and purchasable with high long Field but funding corresponding old crop deli- A week ago old crop merely requires a relatively high | very, witch sterling at a discount.
They had issued no tax-fred one which comes cheaper to the may hold a premium of 18) stocks since 1944 and were Treasury, by lowering the short palata 65 conta a bale over the a thought to dislike them beonumo yield then by boosting the long deferred dulivery. - Valtod
they can molimas be used to China Wali Special.
Now York City business Roons continued to drop. A $50 znillion reduation Inst week brought the totni decline the first alx weeks of 1950 4607 million.
Bank
to
to pon tightened,
Postlive reserves in federal reserve system's member banks EXCESS TÉBErves loss borrowings bortalled 105 milion Tant weak, against $245 million week before.
Proza
SHIP
BEN LINE
Lar
to sustain
and
in
love of retail sales, which are Personal income was at a
millon now reducing inventories
record US$343,500 eventually should call for in 1957, despite a decline of 1,500 creased production."
million in the annual rate from Russian advances in the the third to the fourth quarter. missile field, the economists "ob- cof-
income Net personal not been served, "have ducive to a fooling of security US$13,500 million from 1956 to which stimulates free spending" 1957, while consumer spending
of in- increased by about the and the over-capacity
precludes, dustry
some amount--Router.
for
J. A. L.
Japan Air Lines
rose
some
have pleasure in announcing the
opening of their new Information and
Booking office in the East Wing of the
Peninsula Hotel
on
Tuesday, 25th February, 1958
Telephone Numbers:-
RESERVATIONS: 67424
INFORMATION: 60650