SCIENCE AND

THE CHINA MAIL, MONDAY, FEBRUARY 2, 1959.

Weekly Survey Of The American Economy

ENGINEERING PROSPECTS OF STABILITY

Red-Hot Reactor

A red-hot reactor is lifted from a furnace at Britain's uranium factory at Springfields, near Preston, Lancashire. The furnace is used to heat a mixture of magnesium and uranium tetrafluoride, causing n chemical reaction in which the magnesium combines with the fluorine and the uranium is reduced to its metallic form.-Reuterphoto,

CHEAP GAS FROM LOW GRADE COAL BECOMES A REALITY

Characterised By Quiet HONGKONG

Money Market And

Firm Interest Rates

New York, Feb. 1.

STOCK EXCHANGE

Busines done on the Hong- kong Stock Exchange this amounted to appro-

tions and the morning's trens-

Bujeta Bellers Sales

Stock Splits

Do Not Help Market

New York, Feb. 1.

Although those who managed the money in the United Statesximately $825,000. Noon quota- This was the week of the stock split but

continue to warn at every occasion of the latent pressures actions were: of inflation, there is a belief today that a period of stability BANKS is the prospect of the weeks ahead.

SHAKE-OUT

IN LONDON

London, Feb. 1. There has been a preity in thorough shake-out stock markets this past week which have been consequence with unly a small amount of business done.

ton

dull in

Profit-taking after the pre- ceding prolonged upward move ment Wis supplemented by nervous lling: based mainly of an early the prospect general election in a climate that may be unfavourable and to some extent on the position on Wall Street where there has been a check to the recent rise. When the small selling cused at the beginning of the new ne- count a better appearance was many directions, noticeable in though investors generally were still inclined to take a cautious view.

Gilt-Edged

THE prospect of plentiful supplies of cheap gas for countries all over the world where deposits of only low grade coal exists has become a reality with the launching of a £8,500,000 plan to supply gas under high pressure to the famous industrial belt of Scotland, an area of nearly 800 will be eut, at least not for un- square miles,

+

The secret behind the efficient

use of low grade cunt which the new plant makes possible is in the use of oxygen to

produce

gas by chemical processes from

type of coal completely Bait bly for carbonisation conventional means. It

known as the Lurgi process.

ERECTED

a day from coking coal.

site,

br

High Tool Grinder

Speed Press

A

TOOL-GRINDING fix- ture capable of grind

Gilt-edged have been having a breathing space and elesed the week at lower levels than week ago. The course of money rates came in for some discus- rion but is not now generally believed that the Dank Rale Up to the other few weeks. turn of the account British funds

of the chief were one

selling subject to

markets orders,

This stability would be char- per cent 21-year bonds that the acterised by a quiet mancy Treasury brought out this month market and stable interest rates, at a discount price of $90, 10 Since the beginning of Janu-yield 4.07 per cent. Last week demands have this new issue declined in price ary, bank lonn been moderate and new fictations to $90%, or the equivalent or a of erplial have been manageable.yleld basis of 4.10 per cent. Capitol Isucas are not expected to be as large as they were last year.

Great Increase

ان

With any great increpse capital investments for plant and equipment being deferred least until spring, such spending expected to have little effeci for several months.

A going rate of 4.10 per cent for the long-term interest of the United States is only about of one per cent less then statutory cost limit of 4% cent under which Treasury ligations due in five years more can be sold,

IK Bank.. 703

INSURANCES Union Lombard SHIPPING

23 190

200 CCD

Der 50.5

72 72.00 20.00

Waterboet Whetlock

ВОСКА, ЕТС

3.53 0.00 10000

1

Thock

Provident

44.76 43.50 12 12.20

LAND, ETC.

cight split proposals gave the market small aid in a genoral decline made on reduced volume.

At the end of the week the minutes behind the market, most Dow-Jones average stood at since October 14. 503.06.0 2.11; railroad 101.91 |

off 3.75; utility 0.88 oft 1.11;

674 and 05 stocks 205.00 of 1.03.

Those averages were up 10.31 up 4.20, of 0.12, and up 3.26

21.20

HK Hetel. 23.10 23.40 2023 2323 respectively for the month of January, which produced a, sales 32 33.25 2003173 volume of 83,253,414 shares, the best for the month since 1929.

36

·

the per ob.

Hk Land.

or

Humphreys Realty RUBBER. Amalg Trust A Tawah Burgais UTILITIES Trom

1.478 1523

1.973

The combined effects of the bond offerings new long-term sought by Secretary of the Trea- the Robert B. Anderson; sury. keen demani for mortgage money that has.decompanied the recent upturn in housing starts; and heavy financing by state and are expected local governments

investment to provide ample outlets for savings. The flow of these funds into savings Institu to meet attritiona hag, been lager than ever largely of funds tion on refinancings and to offset before. cash-ins of bills that mature lo

From now on, cash borrowings by the US. Treasury, which ap- pears to be in sympathy with so long anti-Infintion measures as recovery from the recent re

unhindered, cession

proceeds will not be fresh devies on the resources of the money market. These burrow

will consist

March and May.

The fact that the Treasury has now completed the lot of rais- ing new money to finance a de- fcit in the fiscal 1950 budget of the almest 13 billen adds to prospect of stability.

Many economists believe that public debt management

deci- stone this year are going to be synchronised with the policy of the Federal Reserve Systein,

Long-Term

Seme economists say that the Treasury would like to offer long-term Issues an opposed to short-term ones.

Whether the Treasury can and enough investors to, subscribe to long-term issues in the amount that it would like to sell them remains to be seen.

Star Ferry Youmall

c. Lichi

Electriu

Mutio E

Thus, the outlook for interest Tel rates is one of stability, Interest rates could rise later in the year, however, if a continuation of the

add to recovery should volume of private borrowing.

Now Peak

205

27.10 27.50

2000 32

$2

23,000 2

14 * 199

100 111

500 27.23 583 / 27.3 590 / 27,20 200 or 150

01 23

190 91

10.70

17

20 24.30

2006 16,00 240 8.ca

200 4 16.63

2006 20

Averaged

Sales for the week averaged 3,705,082 hores daily, against a dally average of 3,859,540 shares in the previous week.

Since the market sot Its re- cord high in the industrials' ca 100 P1.5 January 21, the industrial aver- age has had three decliner, a big one on Wednesday when it was clipped by 0.13 prints. Ralis declined six days in a row (R131/24.70 24.00 3020 24.09 before managing to gain on 600 24.80 Friday and uulities performed 3257 25.10 similarly, 29323.00

-0.30

106 27.10 sa 20.10

At the close of the week, the ecord showed 1,430 issues traded. Of these 520 recorded gains and 708 losses while 130 held unchanged. There were 220 new high sei and only eight * new lows.

The Friday session, witnessed 'n fairly broad recovery.

IL was. the first session in 12 cessions that all the major averges turned up.

*

Steels, chemicals, copper and a long list of selected issues fèd the recovery.

Production

bit

Automobile issugs did lo with losses tunning to a

Production more than a point, was reduced by glass

shortage

at Chrysler and a cutback in Buick output. However, the total was 14 per cent higher than a year ago.

Qils met a better demand late

cut some of their coins.

The markel's price range on 300 18.45] Individunt sues for the week in the week but profit-taking

10.30 was between a 94-point decline 15.43 117 International Business

Mochines atid a rise of 10% points in U.S. Gypsum..

(New) 23.00 24.20 Cement

$5,00 STORES, ETC.

10.40 10.00 Dairy

the

2:00

100

Waison COTTONS

13.40

Textile

MISCELLANEOUS

J

13.27

7.03

20

6.30

9.40

Vibro Total commercial bank loons INVESTMENT

Ins. Javst approached a new peak of 333 FE billion at the end of last year, about four per cent above the previous year.

Although the money supply (currency and demand deposits) 138.5 to a new peak of rose billion at the end of November, that 1058, economists point out

smaller, is still significantly relative to the level of business activity, han in the comparable

of other post-war

coveries.

-

Invert.

the

On Wednesday when selling was' most acvere, the tickers *** 08 much as

Cotton Futures

Erratic In NY

11

Market experts believe the list performed well. Some of them felt that the market needs

larger correction than it re- ceived before it can resume Its attempt to cross the 000-level which was all but registered in the closing average a little more then a week 66.—UPJ.

Bank Of France Statement

Paris, Feb. 1, The Bank of France state- ment for the week caded Jan.

New York, Feb. 1. The other side of the inflation Cotton futures climaxed a week of erratic price first picture is a continued moderate-

changes with a sharp drop in the new crop 22, reads as follows; bondly high level of unemployment:

On the uther hand, it will be

in the remembered that hot of last

Year the morket became over-loaded with long-term government offerings and the Treasury, found itself forced to resort to very short- term offerings until the market returned to normal.

Central banking authorities

of industrial

deliveries at Friday's close.

Total gold holdings.. the percentage

Total other currencies capacity sull'unused; the relative

gress and evening-up in the sight balance abroad siblity of most prices so far For the period, under review und the absence of a strong re-

higher to 50 points lower-up covery in exports. Recent wage the list ruled net 29 points maturing Match delivery. Eettlements, notably in the auto

Surprise

!

Loan entries for the week sharp drop from the preceding week, tolotting 241,724 bbles. The net stock of 1958 crop col- however, loan, ton under. reached 0,103,450 bales or almost three times the amount under lean at the same time last year,

In the forein bend market chief interest centred In Greeks at the beginning of the week on settlement hopes of a Cyprus but the tone deteriorated as the

Although a new move by the and oil industries and with In- } $1.45. to. down $2.50 a baleendal January 23 showed a

in Chi- compared with the preceding ternational Harveyler 10

week.. week progressed and most of

economists to be less inflation- the gains were lost. Hungarian make money tighter may not be cago, are considered by most

federal reserve

made ary" than some of those 4 per cents Jump from 4 to impending, ing press tool punches in fif-

74 on reports that a settlement officials have indicated that such

in 1058.

The mid-January parify price of this foon would be condi-a move would be probable if the

All in all, the recovery so far

support deall a shocking surprise tional on any trade agreement Inflation is regarded as the num

has been devoid of the infallonto the trade. The rates were 3B reached with Hungary, negotia-ber one public worry.

cents a pound for middling Alfred Hayes, President of theory abuses which marked tions of which are due to com-

from Federal Reserve Bank of New dramatic boom of 1955 following inch showed a drop of 03 points Buying mence shortly.

who speaks the 1053-54 recession.-UWP.I.

from December, whereas traders various continental centres was York and a man

Expected à sharp rise. pointed German seldom but saya much,

The 18-cent parity would again reported for

(on

indicate 30.40 cents purchase renewed upward pressure bonds but the support was not out this week that "the seeds of of a very persistent nature.

and prices) are clearly visible

Exchange Rates price on 1050-00 crop cotton. cannot be ignored," despite the

relative stability recent prices,

TBC

fixture

- The Stolfish plant is being teen minutes compared with

erected in the heart of the hours

other taken by coalfield on the edge of a vast methods has been developed open cast coal

The coul direst will be transported

by and put into production by from the open casa British firm. conveyor field to the gas plant to produce

Is primarily thaty million cubic feet of gas designed, for the grinding of poor-quality non forned press-tool panches from Thrash left after cylindrical blanks, but it can the process has been colapicted also be used for light machin- will be returned to the open casting operations on copper, for the site to aid in and Alling

example, as required for

01. electrodes for production

park machinery,

being It is described as

of capable

zrinding radial, argular tul In tuct nny geometrient form quickly with a sciting accuracy of .0002 inches and the special radius dressing

As the secret of the new plant lies in the use of oxygen for the chemical process, an

asential

part of the plant is the install tion of a tennage oxygen plant that will not only work con- tinuously night and day feed the gas furnaces, but also pro- duce reserve supplies to The peak demands.

attacineni allows forms

1 A inchrs konvex 10

Irem

1

It

for

inches courave to be generated The oxygen plant i being in- on surface grinding, wheels, stolled by the British Oxygen con br vece not only

Engineering Ltd, a subskinty of punches, bul also. bronches, the warld tamans British Oxy-drifts and gautes. (Lennie &

Western Company, and will អ្នកក

Roar, be, Thom Ltd., capable of producing two Bracknell, Berks, England.) hundred lens of oxygen a day,

TWO STAGES

The erection et the new plant elready began will be in two

Plastic Material

stages. Stage one, with an out For All Pipes

put of afteen inition cubic feet

of gas everyday in expected to

The dollar bond market con- tinued to be a very dull affair, American Issues drifted to the extent of a point and Canadians trended mainly downward.

Industrials

The industrials market hat had to contend with the usual end-account selling as well as the bout of small selling which

With buyers began thst week.

curee prices have tended to It also begins to look as 50g.

Liquidity

Aroong these "seeds",

of

Hayes

1)

the

balca

The open position in March at the close of the week ap-. proximated 160,000 bales, traders estimated. The certificated stock available for contract delivery tolal 02,054

with 1,138 bolcs, awaiting inspection. The trade had expected a 50-

Raw cotton exports for the point jump in the parity.

the

season In the week,

through January 27 Earlier

totalled 1,587,085 baled com- market bobbed up and down as

pared with 2,810,977 bales re- 16.93 traders followed developments in

ported to the same time last 12.08 the current loan programme,

Benson by the New York Cotton 0.10

along with President Eisen- 26.70

inhower's farm message to Con-Exchange.-U.P.I.

8.74

dene in the local Business Was anothe exchange market morning at the following rates US. dollars per $1) Sterling notes (per £1) Australian notes (per mentioned the increased liquid-donesian rupiah (per 1001..

Slam 11cals (per 100) ity of business and individuals,

Singapore (Straits) the threat of price increases, the difficulty of bringing the nation- at burget back into balance, and the prevalence of inflation psy- chology."

Hayes sald the money, man- agers should be spending less time then they are now doing

If the main impetua of the unit trusta initial purchases has protecting the value of the dollar more time promoting apent itself. Political stresses and

the have made Impact on steels economic growth, but that

American which tended to drift. Engineer- unwillingness of the

hove people and their leaders to bear a witole ing shorea ng

1185 been fairly subduct and the thole share. of. the burden same has been a feature of forced inust of the task on

| the mancy" managers." motorn

"Our problem has been to keep a sufciently close rein on bank reserves to discourage ex- pectations or fear of lollation-

Aircrafts were quiet with a downward tendency, Shly PRITISH Geon, a member ping shares have had some B

support. Store

shares

WITC

to

nry developments in credit and be gas moking by the autumn of

the money supply, and yet to of the Distillers Plastics subdued on purchase tax co avoid interference with orderly 1060. Two years Inter stage two will be completed,

Group, has developed a new (siderations.

Restrictive The

recovery, and, rèmumption of court's decision Currently with the erection of material for manufacturing Practices

Hayes also praised the Trea- against the yarn opinners' agree-owth," he said.

the plant a high pressure and pipes to carry wator, gas, ment has given textiles a badury for Its willingness to pay medium grid pipe system is beschenilcols and effluents. shock. ing laid to distribute the xas It is called Geon RA, 170 from one end of the industrial | High-Impact. Tugle Scottish belt to

PVC.

loyal

of

the

WESTBOUND

“MIMALATA"

Lec: Vane

4th Apr. (27,955 tons) "HHIMALAYATM 24th Aug.

FASTBOUND

Orient & Pacific

LINES

Japan/Pacific Servico in 1959

Honolulu

15th Apr.

2nd Sept,

Yokohama

23-24th Apr. 10-11th Sept.

Ban. Fran,

Los Angeles

6-9th Apr.

26-27th Aug.

10th Apr.

28-20 Aug

Kobb

Honolulu

13rd May

10th Nov,

Vabeduvek átti San Franektes

20-20th Any

24-23th Nov.

A

31ht May

27th Nov,

Yakoboma Leve: Hongkong

10th May "CHUSAN” 12th May

(241225 toma) "ORCADER" 7th Nov. 10th Nov. 11-13th Nov, (28,000) tons

Japan/Australia Service in 1959

SOUTIMKOUND Li

Hongkong 24th Sept. NORTHBOUND

Manlin

Air: Sydney

18-19th Sept.

27th Sept.

of

“OKCADEB"

27th Oct.

A

4th Nov,

air: Hongkong

0th Nov..

the going rate of Interest Stils new security offerings. With; Leading ou shures opened

the determination of the cost of the other--75 Among the advantages claimed the week on a stronger noto miles of 12 Inch piping and 55" for RA. 170 are Lightness (one-

with ngarçagive buying of Shell hiring money in the hands

Sratem,, Federal Reservo miles of smaller,

and fifth the weight of iron

Dutchka and the ecuuiry' COVER | "HIMALAYÁ” Transport atid steel). high impact strength, from New York and the con- the, Tivanity, continually, faces Imido the works, coal as it is

resilience cury polnilna,

and tinent. fed by the belt system from the low resistance to flow. They are

The mere speculave të problem of Hetping wit the main the statutory Interest cost us shares, eased be crushed open cast alte will and screened before ute..

nig to be non-corroditle | although there were some rice white was rel ko ihe days

the Trinidad group. the and incoluble. largen. coal will be fed to

is believed that in due time The smaller Lugi generator.

F. S. Gedulds repòria on the roal wil be wed, for strain rak- all iron and steel water maine

Last wook, 19 of the Tren ing. Largo quphilities of steam will be replaced by high-Unpost great values of the new strike are required because the gas is rigid PVC or that one-twentieth sparked off activity in gold suty's 40, markglable fatus of indo.by the reaction of cont of the 1967 metal pipe market thares with considerable buy-nolos and upnda apid at prións tó ing from Jolinésbing, parti: Mald inventius frur per cent of with steam and oxygen." under will be taken over during this high gremure,

Hjøar and held for 20 years, cularly strong market, U.P.Emura, one who the latus or four

Also

The

World War 1 financing.

Marketable

>

Advaneş 10, Blabilise-

tion Fund

Frano 247,458,200,00

1,420,639,673

14,125,200,000

Toth te disccunted 1,027,001,000,85%

Seokrates in circulas

tion

Current accounts and 3,272,743,519,000

deposite

Bank Of

423.500 дорта

U.F.

England Statement

Londen, Feb. 1.

The Bank of England state- ment for the week ended Jan. 20, reads as follows:

Sterling Notrs In eiretatios.... 2,002 204,09 Pubre, depois Private deposita Severnment recuuifita other securities Jennyly Rako

291,251.877

340,760,650

20,480,120

49,200

Kobe

25-28th Apr.

12-13 Sept.

Arr: Bhogkong

20th Apr.

16th Sept.

+

(Cruises-ihen leaves 5.Ę., 2014 June for U.K. via Panama.). (Continues to Sydney via New Zeálbud.)

(Leaves Sydney 2nd Oct. for U.. via Bus

(Continues Trans-Patile-nce above.) Routes and Bailings are cubiretto change or cancellaios with be without, Kotine, *Leaves Hong Kong 20th Apr for U., via Svez: + Contades to Rydney--999 above;

For full particulars apply tome,

TELIVIONE NOS: KIIRIZA, 29408.

BLADEONMON, MACKERED A CÓ ON HÀNG BẰNG 2TH

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