THE CHINA MAIL,
TUESDAY, APRIL 15, 1958.
TRADE and COMMERCE SECTION
The Big Economic Problem Of The Present:
The New York
Britain's Role In World Economy Cotton Market
Pound Sterling As
International Currency
By RONALD BOXALL -
London, Apr. 14.
HONGKONG
STOCK EXCHANGE
kunz
RUBBER
The New York NEW YORK
Stock Market
New York, Apr. 14.
MARKET
New York, Apr. 14. Cotton futures today fluctuated indecisively in quiet dealings while traders awaited new in- centives,
Closing slightly above the day's lowest levels the final range was unchanged to off 5 points. The New market opened off 1 to up 5 points. Orleans closed off one point.
Stocks improved again today on increased volume. with sales of 34 contracts. sinail number of sellers,
There was some price erosion near the close Nov: 36.83: Jan: 26.15: Mar: either small orders while traders
but gains of a point or more still were numer ous in the main list. -
Penny J. c. Cu.
Our Own Correspondent The economic issue of the moment is not
Business doce on the Rong- Stock Exchange this the budget or even the American recos-
The steels met suppert despite Parke Davis Co. morning amounted to appro- sion: it is nothing less than Britain'sximately $604,000. Non quitanother unfavourable produPenn. Salt Cu
ling and the morning's trans- tion extimate by the America Patlip Morris
Iron and Steel Institute, Lukens Procter & Gambly Co.
more tsburgh Plate Gle and Simonds Baw rose
Publicker Indiotelev in the Pure O thum a point each specialty steels.
ability to go on being a great power in international economic affairs.
actions were:
Un
weclock
યુદ્ધ માં 705 The risc was attributed to
20technical
factors following the
recent Gezo market's
Same issuCY
Hadio Corporation
Radio Corp. Pref.
Republic Steel
Iteynolds Metal
weakness. Sears, Roebuck & Co.
were helped by Shell Oil Ca....
25 favourable economic develop-alat Reg. Paper
Sharep Buyer Brisern
BANKS
Bajer
EEK Hank
TYG
260 270
30
10
SHIPPING
DOCKS, ETC
0.35
€25
300
X
(Q)
100
1420 11.40
an
LAND, TU.
37.50 17.70
600 2009
17.40
1750
14.50
1.35 1.329
1.10 1.83
33.00 23.70
This is not the first time that the question of winding up the sterling area has been discussed as a serious possibility. But recent events have provided new debating points for the proposition that Britain is jeopardising Wharf. her own internal economic interests by the Provident." costly maintenance of sterling as international currency. The subject matter of the debate was outlined in the recent Sunday Times article by George Schwartz. He pointed out that as traders and investors Britons had a moderately satisfactury year in 1957, "but in our third role as international bankers, we were obliged to borrow to meet unusually large calls upon us by our clients."
He went on "That's time rub stairs en sterling. Britain could of the matter, and it's something probably stili invest abroad and on which you've got to make up į build up your minds. Are you going to time. sustain your traditional position
An extra 100 million a year
as a leading power in the world, for five years, which should be, permomiendly. politically odkerwise, and are you prepared
R Land Папаритель RUBBER
Analg
Trust XD.
Tawal Train
UTILITIES
Star Ferry Yabritall 4. Light
101 Elebe
ments.
Market men are waiting to stocks react to rat see how
quarter earnings reports, many of which will
be on the vourable side. They feel this will give them a
clue to the markel's underlying strength or weakness.
A number of issues Jilt new 223.20 highs. Cessna Aircraft sparked
with
Sterling Drug Co.
Stokely-Van "Camp. Htudebaker-Packaid Corp.
a gein of
Sunstilne Minjug....
swil & Co.
42
LOT
Nearby New York, Apr, 14.
deliveries held Rex rubber futures today relativaly steady when a limiter closed 15 to 20 points lower trade demand found an equally
May 20.70; July: 20.75; Sept: New crop months swayed
Washington develop- 20.03: May: 20.63.
As of today, Commodity Ex-awaited change, Inc., discontinued ments on latra legislation, along news on the export quotations on the standard con- with
develop- been inactive programme and crop tract, which has
ments. for over one year.
After D steady start, In- fluenced by the gher London- Stugapore advices, and reports
While the crop has been nu- of additional Bussion buying Doverseas.
the markcel guve ning late in various sections of the south, traders believed the round on seaticred, selling as
delay could be made up easily trade buyers backed away.
was negli- with even a reasonably period of 20% Shipment business 與
out of favourable weather. gible. Reported sales
some bark Indonesia included at 18% cents, cost and treight, April/May.
724 30%
20
Three browns, out of
the
DELAY
ค
Raw cotton exports today infalled 46,443 bales, bringing font for the season to 4.190.566 bates
5,039,102 bales st New
year, according to the York Colton Exchange.
NEW YORK
Prices of cotton futures closed today as follows:
Spat: 23.18;
53.12: July: 30.13; Oet: 30.84; Dee: 30.62: Mar:
HB; May: 20.72; July: 60,DA.
NEW ORLEANS Prices of cotton futures elnard Lucy as follows: Def
14. Mus: 33.m: July: 36.12: May: 30.70; Julv: 2010.
LIVERPOOL
Cattur future. closings, in pepee per lb. were as follows: *American Contract: May/June: 24.73: July/Augz: 23.03: Oct/Nov: 25.05; Dec/Jan 2000; Mar. Apri 20.40
Mixed Contrael: May/June: 25.33; July/Aug: 28.83; Oct/Nov!" 2053; Dec/Jau: 20.38; Mac/Apr: 28.03.
SAO PAULO Closing
in
Atlanta reported litle activity in the spot market during the past week, except for few prompt sales as ill-its and en-
from shor.
shippers. Memphis reported inquiries for prompt and summer shipments, cruzeiros per kilo wero as tol- but very little laterest in later shipments.
pound moved al 21 quiries cents, cost and freight.
Spot No. 1 Rea was quoted at
20% 26% cents.
AMSTERDAM
The rubber market was quiet. Prices closed today in guilders per kilogram, elt April as fol-
301
Sinclair Cu
20
Sony McbION
Rear Aircroft
Szuh Puerto Rico Sugar
15
201
Southern Co. (The)
Sonthera National Gas
un-
Southern Knitway (Com
1572 Game
Standard Frauds
Standard Oil of Cal
Standard Oll or fad.
Standard Oil of NJ
Sterp Rock (Torento Exge.}
12
ይተ
STEP
2P
11 lows:
No. 1 rubber
No. 2 rubber
Twentieth Century Fox Filin
24%
No. 1 subber
ATE No. 1 crepe
Unton of Cal.....
441%
2714
0712
29%
13
201
32
B4
17%
1915
Textron Ine.
Tide Water Assn. 0:1 Time Inc.
1000 23.00 the alrerafls 1,000
5032320 more then 1. Fairchild Engineers Co.
Lockheed Improved 3000 13.70 B
fractionally and hit new lops. £3.60 New highs were 1 by 17.00 American Can, American Tele- 17.40 phone, Eversharp, Fairchi (on
20.10
20.50 live trading) Repulic Avin- 2010 ton. General Mills,
Grayson-
Union Carbide you
Unton Paeiße Hallway United Alterasă
United Gas Comp.
20.00 Robinson, Greyhound, Philla-US. Foll "p"
2830 delphin
& Reading. Southern
Natural Gas, Sterling Druk. linized Bleuit and Western Maryland.
118
01
109
17 40 17.30
#003
6314
26.40 20.70
200
200
reserves at the same
ཛཱ་
1000
500
20 AK
Telephone 2020 23.40
160 300 20 20.30 S00 20.30
INDUSTRIALS
Cement...
27.
Arcy an Spolys, ETC. Dairy
Watson
40
500 17.3 11.50
11.20 11.30
10
17.40 17.40 250
4.53 2500 E
14
4.53
5.20
10 10.20 1.35
from and fav
given impossible. regsonuble restraint at home. might tunaform the situation, says PEP. Certainly, it adds,
to told the logical "requirements of this?
"You want a high standard of Germany has rehieved more.
to
living at home, you want play A major role in world strategy, you want to contribute to world development, and you want to act as world bankers. Each factor operates at the ex- pense of the others. Dock it add up to more than you can manage?"
50.
Well, does it?
INSULATE
PEP does
Ent believe That Britain would stand to gain by limiting international Uyes ot sterling in order tu insulate expatision at home from fluctua-
external tions in
confidence. Apart from creating
unites for commodity "shunt- wrote. {ing"
+1 1h0 expense of the
Mr Schwartz does not think
"We Lie
not."
he
Lane Craw. COTTONS Textiles INVESTMENTS Yangi:ze 1.K & FE
Invent
Sigala....
New York Stock Exchange bond volume was $5,340,000.
New York Stock Exchange 100 or 11.20 volume was 2,830,000 shares. 1500 11.30
Exchange Stock Amerien 100 센
volume was 720,000 share.
Of a total 1,175 issues traded, 15 were higher, 202 lower,
Daw-Jones closing averages
Oppo New York Sugar
"hopelessly out of line in the reserves. it would have J
pest war world, but
elfeel on world trede that would certainly, bit the British exports.
less than deflationary two per cent elf the mark. We could get on to it by 1tling our Batle Boger"
STRUGGLING
But other participonts in what rolitical and economule planning 4-non-party-espartanist tion this weekend called "The Debale On Sterling." Take the view that we are struggling
burden that stapport a
will defeat us in the end,
One economist writer, who is of this opinion, goes so fur us
to say that when Britain has fo raise interest rates in London
On the question of level of reserves in relation to sterling Ludances, PEP points not thai
Market
New York, Apr. 14.
were;
30 induzirials
20 rails
35 willen
25 locks
40 bonds
Comma. future price Index
Closing Prices
Alden Ins. Aey.
Absea Chemicals Allied Mill
Inc.
Allis Chalmera
Am. Brake Biloe
American Airline
Amer. & Forgn. Power
World No. 4 suger futures. Cable & Radio Corp. today closed one to five American Cyanamid Co. is the central aim of policy. points lower with sales pF Au. Gas Lectric to build up reserves. In any Leases voy-for-reptent--021.
365 contracts. funding ought "almost certainly"
"Ducatle" "No. 6 sugor futures to be avoided. "If Bestoin $ closed unchanged to one point lower with sales of 102 con- tracts.
The question of Britain's
World
"B"
An. Machi & dry. Atnerican Metal American Smelting Am. Sugar Iter.
remain the sterling area's
American Tub. American Tel & Tel Anaconda, Copper banker, the depositors Von-
contracts rellected Armed Steel tidence
the safely and availability
by the Armour of their deposits liquidation promuted
Allas Cons. Mining must not be shaken."
easier row situation and a feel-Baldwin-Lima-Ham. ing among some recent buyers Balmore & Ohio...
Beneficial Finance that the worst of the Cuban
Bendix Aviation Carp. ut a heavy cost to herself-In | capital-exporting role calls up uprislag may be over for the Benguet Com. order to persuade
Dathlehem Steel overseas strong arguments against any present. sterling countries to moderate major change, at least so far of Dunestie No. 6 contracts firmed Boeing Airplane Burden (The) C borrowing, which They are Commonwealth investment དང with the raw market and con- furroughs Add Machine afletully allowed freely tu concerned. And here. PEP nalng uncertainty over future Campbell Soup Co. undertake, then "Britain's pre-makes a point that is sometimes supplies because of the pro Coradian Pacifle B. tensions to be
cupital- overlooked. I is that "The
larged strike of Hawailan sugar Case (1) Co.
Cat. Tractor exporting country look teassurance of prior access to the workers. A truding feature Celanese Corp. delusions of grandeur."
London money market may well
spotlighted an exchange of 80 CIT. Financial Corp. What is Kat Britain is come to be the crucial economic
contracts of May for actual chronic factor suffering from,
1hc underpinning
sugar.
grandeur?
10
#
jeability to Ha its little dogf5 | Commonwealth's political unity." gr delusions
of
Obviously there must be a thing
diagnosts that comes nearer to pin-pointing the seat of the trouble-but
cannol IL
be
PROBLEM
ure
Contract No. 4 (World)
May: 3.34 July: 3.40; Sept: 5.4; Det: 3.30: March: 3.37; May: 3.37; July: 3.37: Spot (cenia per lb. tob Culinį: 3.40.
Open Interesia: 0,705 contracts. Contract No. (domestic)
Y.70-71; Bept: May: 8.73; July: 15.70; "Nov; 6.17; Spot-(vents per ju. their NY ex-duty): 1.70,
Open interest; 2,348 contracts. -- United Press.
10
Another problem arising out of the debate on sterling touches summed up in a phrase.
PEP's own contribution to then what many economists be-
to be the crux of debate does not attempt any firm leve conclusion on the question of matter--the fact that the world's
Insufficient whether it is profitable or not reserves
of trade. In for Britain to remain at the permit the free Dow head of the stering aren. But total they rose from US$27.050 views, it has brought the whole debate within scope of easy understanding,
by summarising other Reople's million in 1937 to 60.906 million London Foreign
SEARCH
Exchange
at the end of 1958, whereas the value of world trading needing to be financed, rose tcstly twice Es fast. Britain, which rances icarly half the world trade,
London, Apr. 14. Closing rates were! docs so with less than four por
New York Assuming that it is possible to cent of the world's reserves
Montreal continue the search for a liberal And to make matters more
Amsterdanı solution to the world's trade and dificult, the Breitun
Woods Brussels baved payments problems in
relatively Copenhagen of chronic dollar shortages, PEP | stable exchange rates, throws Frankfurt belleves that Britain will have the whole burden of absorbing
facebyslem,
ON
Millan
Zurich
2.819-2.81%
Chase Manhat. Benk Chrysler Motor Clue: Palody.. Colgate-Paimolive Co. Colcenblari Carbon Co. Commercial Carbon Co. Commonwealth Elec. Consolidated Edison Continental Oil of Del Crown Zeilerbach Cuban Amer. Susar Diamond Ajka!! Douglas Aircraft IW Chemicals... Dupont de Nemour Eastern Airline ......... Tasman Kodak......
E amo National Go Family Finance Corp.. Firestone Tyra & Rubber Ford Motor
General Electric General Foods General totor Gen. Pub, Utli. Getty Of
Hidden Co. Goodrich (B. F.) Co. Goodyear Tyle ........ Gulf Oil***
Corp. Homesteke
3.73-7/16-2.33-9/15 itayden Newport C
10.6031-10.009, 12000-130.85 10.3438-19.5 11.736-11.73PA 1745-174515 20.01-2001 11804-11B10 192074-11507% 75.85-72.08 12.2416-12.2435
Öllers unchanged,-United Press,
to go on being a barker. To do trade fluctuations or to reserve Paris olherwise would meɛn_repudiat- PEP and a growing body of Stockholm ing her obligations to countries, responsible oplaton in Britain Vienna
most of them poorer than her- holds that sters should be taken seif, who hold sterling balances, to increase world liquidity and The alternatives are the "Im- that Britain which suffers moze possible" ones of repaying then most countries, whatever balance immediately or Tepay-confidence is disturbed, shuuki ing them over a longlah perled take. the lead in pressing for which would incan providing this. hundreds of millions of pounds #
year.
Ingersoll-Rand
thiand Bleed Co. ******* Business Merlines 11914- Harvester,
Küternational Nickel
Tuternational Paper
Int'l Tel & TOK
443:30
145.00
71,82
152.04
CO.TO
US. Gypuss
U.S. Line Co
U.S. Rubber
U.S. Smelung
US. Steel
Warner Bros. Wenthouse Elretrie
Western Union Tel. Co. West Va. Pulp & Paper Woolworth
SINGAPORE
lows:
future prices.
July: 42.10; Det: 43; Dee: 43.30;
the
Evening-up in the May de- Mer! unquoted.
Une small In the United States, very co-featured trade. The open position in average price of one-incli col- hay today totalled 139,600 ton al 14 designated spot mar- balcs. First netice day will bekets was 34.50 cents.
April 24. The certifeuted slock Wola) roles at these markete 1.22 nom. drelined 785 bales 123,987 vete 25,207 bales, United
2.14 non. OZIDEL. 7.20 0.
The feature of the day's trad ing was thoit severing on April 1
Rss and premium for this ship-
ment has beer as much as 144
cents
Lower sheels for April shilp 30%ment except for No. 2 Res have been pressing with buyers very
-United PreBH.
acorce.
Offgrades have been very quiet.
Futures:
No.
No.
?
No. 1 rubber per ib. April 79-2013
May 175-7724 rubber per 14. Apni 732-1342
4915-20
No.
67-60
Spot rubber unbaled ko
79-2015
*
Blanket crepe
02-04
78-00%
LONDON STOCK MARKET
London, Apr. 14.
The stock market closeri firm 150.07 today off the eve of the govern ment's budge! announcement.
Governments were narrowly
20% mixed.
יבי
21%
路
1522
30
70%
4400
413
Blue-chip Industrials were fair demand and rose 09 much as a shilling.
British Potroleum led mon all stocks inlo higher ground. Foreign bands were mostly unchanged in gulet dealings.
Dollar
stocks were mixed. United Press,
Nu, 1 pale crepe
LONDON
The rubber market was quiet with spot quoted at £3
per b. Prices:
No. 1 spot
Settlement house term:
MAY
June
bales.
*
Press.
1-80
COMPANIES
PASSENGER/FREIGHT SERVICE
pence
23-231
2014-201
#
Outwards "CHUSAN" "SALSETTE”
PENINSULAR & ORIENTAL S.N. CO
Leaves London Baled 15/3 Salled 20/3
1st April 5th April
"CANTON" "BUNDA" “ŠALMABA” 10th Apri "CORFD"
50th Apri
Leaves Hongkong 27th Apri 6th May
Due Hongkong In Port 12th May
sih May
Due London
26th May Elk Juna
July/Sept.
Oct/Dec.
Jan./Mar.
Apr./Mac,
General markets, eit back ADT. May
perts:
Mumewarde "CHUBAN" + "CANTON"
June...
231 Estale erepe May ...
titek Mag
-United Press,
India Announces Import Policy
The Government of India has announced its import policy for the six-month period, April to September 1958. In framing this policy the
has dominating consideration
been the persisting need to conserve foreign exchange
resources.
However,
limitations dustries.
Even
within
though the of the foreign exchange avail-foreign exchange available will able, an attempt has been made not be sufficient to maintain to overcome some of the short-peak production in all industries 20 ages which were beginning to it is hoped that it may
possible to grant 212 Impedo production.
"SOMALI" *
"CORFU"
24th May
6th June
12th May
Bih June
2nd June
30th June
5th July
Via S'pore, Penang, Colombo, Bombay," Aden & Pt. Said.
"CHUSAN" aho cxli Marsellies.
"BOMALI' calls P. Sweltenham, Bingapore thence
direct to flavre & London.
BRITISH INDIA S.N. CO., LTD.
"BANGOLA" đus Zih Apr.
from Calcuits, Rangoon, Penang & Singapore for Japan
Sails 20th Apr.
P.&O./B. I. JOINT SERVICE
due 13th Apr
"OZARDA"
sa 101 Apr.
be
"ISMAILA"
cences for
“ITRIA"
Quotes
have been increased larger values on a selective basis mainly for items required for in the case of certain essential Industries, namely, industries than in the half year Indian textile chemicals and accessories, Just ended, component parts of taper roller
!
dup 23rd Apr.
#ails 26th Apr.
due
911 MAY 1911 1918) MAY
items, machinery
new
2015 bearing,
parts spare
In view of the reported short- for
it may be necessary to machinery, chemicals not other-axes, wise specified, industriel gymssue a few additional licences for non-ferrous metals for which and resins and certain abrasives.
In
small foreign exchange provision
"ITOLA"
due 8th Max sall 9th May
*
2916
50's quotes have been given for two has also been made.
15035
13
30
йems, namely,
The question of granting ad- printing machinery and agricultural tract vance actual user licences for
period October
1050 10 tore. Quotas have also been in the 801 creased for a few essential con- March 1959 will also be con- sumer goods ke photographic oldered to enable them to malto
77
$40
2 sensitized material and paper advance purchases and arrange for shipment during the begin- items.
4832
T
9234
Joho-banville Ca
Sta
Kana C. Power & Light, Kennecott Copper
14
HIGHER -Quolas....have been reduced in 47%|| the case of items,
ning of that period.
Regarding capitol
Meyers Tob." Co.
to
Incorp.
Exchange Rates Los Cement Co.
Lowenstein Bonal,
McDonnell Aircraft (Am
Membi Iton
16.00 12,40
Block Corp. Minnesota Mining Mikon Development Mianto Elemical Co. Aantumery Ward
Business was done in the local
excliange market the The means most often suz-unuificial
niaming at the following ratex: Increasing world Us. dollar (per $1) PEP is inclined to side with tested for Mr. Schwartz's "itle Anger" quidity, include increasing the starting nates (per £1) thesis. Admitedly reserves are price of gold, enlarging the Australian notes (per Fil
of the Internationaldolibrian rupiah ter 100) too small in relation to Britain's rela
1.Siam (leat iper_100) Hablities. But many hold that Monetary Fund and stepping up Singapore (Steglia)
American It the general behaviour of the rate of private
Naficul Carli lieg. A National Dairy Prod. finlibhs) Lead
1.40 National Steel Corp.
NEW YUK GESMER Norfolk
the internal economy that gives investment oversesa. The factor rise to the difficulties of sterling, hey have to openness is that Agreed Merchant Rates
Foods,
strict
1m-
for which generally the exising indigenous Industry is, expected policy will be continued.
moko good any shortage,port licences will be issued for # e.g., cool tor dyes, à few types approved cases where the value parts, BVC of Imported plani ind af motor vehicle
Alce compounds, stoel
cle.machinery is covered by long Amongst important consumer term overseas investment Goods for which quotes have In all other cases the importer 2012 been reduced are fish, frujis and | Þór to salisty government, thati
hilik food.
the terms of payment are such
In the case of items that it will be possible to meet 60% studia Jamus, popre, solonium, them out of saving, in foreign quotes have been withdrawn or exchange which the project will
45
14%
it'
14
セブイレ
Swiss Franes: Maximum Sell- Government which, Ing 701⁄44. N
dompled with | price at the moment,
owan-loss Dias* ............. Oxford Paper Co. Pas AMERICA AI4-**
so it is a correction of instability bey require the blessing of the
at home that policy ought to American sim. With Internal
พ Gorman Deutschemarks: miability se sileviate periodle other Winsk,Mantine Bey. Maximum aliing 1946.
drastically reduced; but at the achieve.
pamp time provison has been
recent The
Export-Import
made for grant of licences ip Bank loan and the assistance
ath notum upore, eo .... that the level from the Development Loan.
of supply will not suites.
Fund of V.B.A, as well on the,
A somewhat blaher foreign agreement concluded with Japan exchange ceiling has been allo- are · sungsted to help new cated for raw:materials for 'la-'development schemes,
•
from Japan
for Singapore, Madrus, Cochin. Bombay, Kara- eht, Kuwait, Efferah Z Khorum balır
from Karachi Bombay. Cochin, Tuticorin Singebure
for "Japan
From Japan
for Singapore, Penang, Madras.
Bombay. Bhavnagar & Kainchi
from Jopa
for Bingapore. Karachi, Baarah, Khorraınsalır. Kuvali & pubel
EASTERN & AUSTRALIAN S.S. CO., LTD. "EASTERN" que 28th Apr. anila at May.
"ARAFURA" dps 24th Apr.
Abe.
from N. China.
for Jesselton, Labuan, Bandakan, Belsbane, Hydney, Melbourne A Melatan
from Australia Lot Japan
All. Yences have tibarly-là caži ́nt' any poria on" or all the reple & ihe poule à sailings are subject · to change or monendment with or without notice.
For full particulars apply to a
•
MACKINNON, MACKENZIE & CO. 01 HONG KONG LTD. Ielephone Nos: 27721-4.*
*
E
་