THE CHINA MAIL; MONDAY, FEBRUARY 15, 1060,
Weekly survey of American economy
SCIENCE AND
CLOUDS ON THE HORIZON ENGINEERING
'Slowdown' Slight economic
in cotton setbacks
goods market
New York, Feb. 14. The buyers recess in cotton grey goods, extending back to mid-December, be- came even more noticeable last week.
Semi-holiday conditions 471 birth- Friday, when Lincoln's
down market day holiday eut attendance, nccentuated the cur rent "slowdown,"
ness.
-
Among the mentioned Iricting Influences were:
•
are expected
Now York, Feb. 14.
Administration financial experts this past week expressed unconcern at a handful of clouds which have loomed in sunny economic skies that expected to prevail through the first half of 1960.
to
were
A shirt by investors from
Corporations generally are
Some officials even suggested, 1081 with a surplus of $54,200 that failure of the U. S. economy million.
roar ahead at full specd Market analysis describe the follow kung settlement of the steel period as "the dullest in many strike Ave weeks agn is a healthy stocks to bonds. inouths." A combination of eir-development.
Moderate iberenses in the cumstances acted to keep a
jous net income brake applied against new tunt-production,
means that the expansion will be spread over a longer period and res that arrosssion, if it comes, will
a more liquid financial position and be delayed
muld, thethan they were in 1999. Their optimists said.
depreciation allowances and re- A slow dribble of relo They challenged the predictiontained profils total about $35 offerings on print cloths al be-voiced by AFL-CIO Vice Pre- billion, almast enough to finance low will prices,
Bidont Walter Reuther, and sonte the $32 billion worth of capital
COM-
fo $5 improvements and four Consumer pre-occupation members of the business with digesting the big purchases munity, that a moderate reces-billion for inventory outlays ex-
sion may start soon.
pected for the year. But there was a general agrue-
Also, last year corporations in- unresolved questionment that business, while go creased holdings of government the administra-is not as strong as anticipated. obligations by about $2 billion; interest while accounts receivable prew tion may impose an Import fee A downward trend in
rates since Christmas emphasines
to about $4 bitilan ever accounts the lull..U. S. Treasury 90-day
payable. much, yields dropped this week to 3.543 wall the wages, of textile work-per cent. Treasury experts had ers be increared when collective expected a deelice, bit bargaining gets under way by much. early spring.
•
made in December;
*
The about whether
on low-priced fabric imports.
When,
•
and how
WAGE QUESTION
Executives said the wage
Reasons
not as
HONGKONG New York stock
STOCK EXCHANGE
· Our Own Correspondent
Business done at the Hong. song Stock Exchange this turn- bug umounted to approximately
Noon 1825.000.
quoteilons
market suffers
another decline
New York, Feb. 14.
and the morning's transactions: Stocks declined again during the past week, the
Shares
Buy Beers
DANKS 1K Banks..
INSURANCES
Lombard SHIPPING
1200
27
Haten
3 or 12
the chemicals,
fifth setback of the six weeks so far in 1960.
more than three points each in The drop was held down by 101240 another sharp Tuesday rise and
arise on Friday, led by the A group of issues managed to leading chemicals. In the other register good gains, including three session losses ranged Minneapolis Honeywell up 11 down from 7.34 points In the points; F. E. Myors up 6/10; industrials on Monday.
Polaroid also up : Walt Disney Volume fall off after a session nnd Wimer Brother, up 4 of 3,350.000 shares on Monday, each, and Electric Auto-lite up and the total for the week set a 4. Goodrich lost 6 in the new low since last October 16. tyres and Coodyear a point des-
Sales
Wlicekick
1+
0.80
4.90 4300
2000
.
DOCKS, ETC. K. Wharf.
Duck *+ Provident LAND, ETC.
Realty RUBBER
UTILITIES
135
10.00
36
4.75 800
4000 < 0.05
300 1 154
125
158
2:00
62
so far this year amounts to 91,401,531 shares against 114,180,801 shares last year at
Confidence
Petroleum refining
and the economic problems involved
AT
Ta time when many countries in South East Asia are reported to be developing petroleum
the prime factors which determine whether the refinery industries, it may be of value to consider construction of the expensive and complicated plant will be of economic benefit to a country.
No country will welcome п In general expital costs pet refinery It
[18 establishment unit of output decline with in- meana depret
creases or poorer quality
in alze. Unit capital patroleum products and, at the costs are very nearly twice as high for a plant capable of pro- same time, it is necessary to en- sure that the refineries to
cessing 20,000 barrels of crude built can be of a sizo and all per day (1,000,000 tons per calibre to justify the very con- annum) as for one with a capa-
be
20 7500 ur 10.00
for the Avu sessions lie a price rise in the tyres. siderable capital cost required-city of 100,000 barrels per day one relinery plant in Mülayn is (5,000.000 100s por annum). 200.6251otalled
13,483,000 sharca,
GUPI.
to cost £7 million, Doubling the size of a prospec- expected 1200 16.25 Unily average of 2,698,792 shares,
while the refinery planned for tive plant increases the invest- 5500 44.50 12045 75 against 13,483,000 shares or u
Singapore is estimated at £4ment cost by only about 60%.. 23.10
daily average of 2,016,012 shares,
million.
There aro ok course wide 1.025 4,06 21000 m 2,03
Volume in the previous week.
Thus, not only must it be differences in refinery costs. possible for petroleum products which cannot be accounted for to be manufactured locally at nohy size alone. The small plant greater cost than the cost of the would be simpler, but less flex- imported producis, but the dif-ible: it may be designed to oper ference between import parity ate on only one type of crude: and the coBL of local refining | may have anctilary services: should be sufficient to give may have a small staff.
tr- reasonable return on the refinery general it is economically Investment.
possible to consider the construc- tlon of a small capocity refinery which is highly flexible complex, In that it contains many secondary processes.
A softening his demands outside for by corporations inancing.
IK Hotel K Lan
·
Humphreys
| Amalg
4.03
45434.65
7000 4,70
TRUSI
0.70
2000 1 0,70
3000 64
Trans
..
** 32.73 Star Ferry. 140 Youmail... 137 138 400 137 C. Light 10.00 10.00 1000 10.00 35190.70
23 2400 33
150
Electre
300 - 24
Teiphone 34% 35%
60035
700
1000 200
Stocks up
100 ir 10.10 23 30 23.50. 1515 23.20
24 IN)
1500 24
INDUSTRIALS Cement... 1315
STORES, ETC.
this time.
AVERAGE DOWN
Al the cluse cn Friday, the Dow-Jones industrial average stood at 622.23 off 4.54 from the previous week and off 57,13 from 500 24.10 the close of 1930; railroad 161.20 oft 0,20 for the week and off 34.25 2.85 for the year; und 65 stocks 34.00 200.17 of 1.11 on the week and 33.35 on the year; utility 85.47 off 0.38 on the week and 2.36 3500 445 on the year.
B0024-20 4000 24.70
34.5
40 1300 13
Businessmen are expanding Dairy 24.20 24.40 Inventories at a more moderate rate than anticipated. Stocks, particularly steel. have been COTTONS built up rapidly and there is a growing tendency to slower buy-
Treasury officials said that the question is "still something of drop stemmed froen!
mystery," but consensus in- · A lower buildup of ming. dicated expectations for a boost ventories by businessmen than
was expected.
of 10 cents an hour.
Meanwhile, buyers will plenty of gouds coming to them
Waln
24.70
L. Crw
Texilion
INVESTMENTS
returns
to London market
London, Feb. 14.
A national rail strike threat
LOCATION AND SIZE
The location and the size of a refinery plant are two of the most important factors in decid- ing whether a refinery will be
In
ond
10
o
In order to minimise capital,
necessary it may even be
and design an economic proposition. A re- simplify further Anery must be logically located refinery for one or two speciality did battle with pressure of both in relation to its source of crude oils in terms of both money awaiting Invest-supply of crude oil (the nearest quality and quantity but in any Bounce of apply may not oveut a refinery is a very expen- ment last week and by necessarily produce the most she piece of equipment.
It will be seen, therefore, that Friday's closing bell-be-suitsole crude oil for processing fore the strike was called for the local market)-and to the for many amall countries with no own and with a relatively small off-confident Investors potential maricet for its products. local crude production of their Wall Street furnished a variety had the upper hand.
In addition to considering the refined product consumption, the of reasons for the market's be
The Financial Times index relative cost of transporting bullding of a suitable refinery crude oil and products to the may well be an uneconomic pro- haviour. One group hela that edged 1.0 points upwards to the selling was based on nothing 324.5 although the volume of country concerned the practic-position-Contributed, more than technical considera-business had been small all ability of matching the refinery' tions.
week. The market went through output with the pattern of de- mand for individual petroleum Another held thai institutions several of He quietest
products in the consuming area were feeding out small quantifies since last October.
le of supreme importance. of blue chips and investing in bonds. Small traders who buy and sell odd-lots bought more stock than they sold.
Industrials have fared the worst so far this year, The loss in this group from the January i5 close of 685.47, the all-time 10.20 10.30 3000 10 10 record high for this average, and 8000 19.20 the close Thursday of 618,57, low 2000 10.30 Nanyang 13.00 18.90 2000 15.00 since September 22, amounted to Iron Age, trade publication of MISCELLANEOUS
66.90 points or 9.76 per cent, the steel industry, predicted that Vibro
17.40 300 17.26 aleel inventory bulldups my Allied
0.05 0.10 1000 p. 11,00 10000 M 0.03 tag from three to five million Luns behind earlier expectations Steel users want to keep stocks workable minimum, the magazine sold. High interest rates discourage heavy inven torles, while the 30 month steet labour contract assures un- interrupted supplies, it added.
Disclosure that the ad- on previous purchases have ministration expeels to close the been more selective in taking eurront fiscal year with a small
surplus and operate during sulat a care of their All-In nerds,
Conversely, the mills, opera- ling against fat order backlogs, running through the first and Recond quarters, were deter- mined to "git tight" and wait. They felt that so long as second | hand offerings do not increase materially, time is on our side."
Any wage increase lo indus. Arial fabrics will mean higher
Immediately for cloth, i Erices Unlike print cloth yarn Jabries, j and combed cloths, heavy indus. trial quotations have not enjoy- ed the sharp rise and heavy covering, previously enjnged by! apparel fabriz.
were
'PIGGY BANK'
SCHEME
Iron Age said that Aleel in- ventories will be built up to only about 13 to 15 milion tons. against 16 to 18 million predicted earlier. The result, it said, 'will be a moderate drop off in steel
SHARP RISE
IN STERLING
DULL TRADING AREA EXPORTS
keeping their holdings Intact for A SUCCESS
From GORDON HUNG
Singapore, Feb. 13.
A chance encounter with a little piggy bank in Scot- land launched literally the "Little Man's Bank" and in just years.
40,000
over
Steel demand
Demand for steel still remains high, however, the magazine said. Consumption runs about seven million tons a month. In- coming orders are about 85 per
exports area
ex-
fell
the most
year.
scrsicas
New finish for cotton cloths
And so, whilst on an overall tonnage basis the local refinery of crude oil may, at first sight, appear to be an economical pro- position, an unbalanced product
A YORKSHIRE company demand may result in a surplus of one or
has introduced a finish more products for which export markets will have for cotton cloths which is to be found, and as more and believed to have tonello and more countries develop their own tear strength superior to that
this problem redning Industry, will become increasingly difficult offered by any comparable to solve.
finish on the market. In the The question of size
The makers claim that I will economies of industrial plant
smoothly and naturally, has been fairly well understood dry since the Industrial Revolution tree from all creasing; have and, with one or two technical unique soft, silky handle differ- the same factorsent from any normal resinated exceptions. apply also to the plant required fabrics; and give extremely high for refining petroleum products. Į abrasion resistance-an impor- The larger the refinery, the lant feature for collars and cuffs, The new finish was developed lower the unit cost of the pro- ducts manufactured, and a re- after the company's scientists fnery must be above a certain had tackled the problem of lov minimum size before it becomes proving the behaviour of cotton economie to rig it at ulf. Like garments whatever the washing Their other industrial plant, It must be and drying treatment. operated as nearly as possible at chler concern was to improve to crossing in the full capacity all the time if it is resistance.
wet state. It was well known to pay its way.
that this could be brought about chemically, but the process in- volved produced a considerable fo in the strength of the clotia and the resinated handle was apt to be harsh. The company
Anlah the claims that
OVET- comes these difficulties.
The dislocation that a pro- longed rall stoppage would cause and the loss of profita entailed the for many companies kept brakes Ok
ihe buying. But underlying good tone of the Duliness of the trading re-markel and with only a tiny flected a lack of real liquidating | dribble of soiling kept the mar-
kels Arm. pressure. London, Feb. 14.
Biz investors were
A sleady flow of good profis operating rates during the second A further sharp rise in quarter and increased avaliability
part because of the reports, the bullish outlook for sterling aren exports for high capital gains and taxes they industry shown in a survey of of steel products.
the fourth quarter of 1959 would have to pay on profits
over 700 companies by the was forecast by the Board which have accumulated over the
Federation of British Industries of Trade Inst week. But
the industrial und optimletie statements from Blg swings in the rise in sales by the average reflected lack of buying
company chairmen all improved sentiment. overseas sterling aren demand more than reul selling countries will not be so pressure. The cream of the
SELECTIVE BUYING market suffered the widest price great as the rise in
Selective buying pushed up The more speculative swings, ports from Britain. cent of rates of shipments and
issues showed smaller change, priocs in a house still short of the two backlogs on mast unders aro
Busines news continued on the good class issues among Sterling
favourable side.
brokers children almost three months.
in which What small industrials, The American Iron and Steel slightly in the third quarter declines took place in steel, auto, sald there was still л good in Hongkong, Singapore Institute estimated 1hal this last year against carlier higher and electricity production were broad publie interest, and the Federation, had week's
output will risc 10 levels. This was mainly due lo attributable to the weather for Government bonds had an
British the most part.
The same reason unsettled
ended week, but deposited coins totaling 2,090,000 tons, against 2,083.000 the seasonal decline in
accounted for a dip in car load-steady. HK$6.3 million in their produced Inst week. While mills exports.
ings and construction.
Dollar stocks slipped back little piggy banks issued operated at 44.5 per cent of
The main force capacity.
behind the
Money market conditions con- with Wall Street, by the
To date cor manufacturers recovery since 1958 were sales
Golds
and to the dollar area
both from tinued easier with the Treasury
irregular were Bank.
are taking all the steel they can
bill rate at a six-month law. A interest tailed off. get, but there is apprehenslot Britain and the overseas
budget surplus in the making was
Diamonds went dull and De This mammoth total reflects that this demand will ease. Caring countries.
seen as a steadying influence on of the makers can
Beers were 2a dd off over the the not produce. Hard fibres were mostly quiet. the tremendous success
Most commodilles shared in money generally and a factor in
week. Sisal and hemp held steady to "Little Man's Bank's" experi- 725.000 cars scheduled for this
The lure of the
Oils were erratic but had a little ment in enepuraging children to
the recovery from the overseas brightening showed
month Burlap
without overloading
Armer look at the close. change. Buyers holding com- save.
dealers, and production cutbacks sterling area between Aprli and dollar abroad.
September Inst year.
Market experts sald the list Major
Foreign bonds were mainly milments to a needs won-
are expected. The piggy bank scheme is the
except for movements in dered how long Calcutta pro- brainwave of Chung Khlaw's
Manufacturers
durable commodities sill lower than a would have to continue Its trend de of
your earlier were cotton, lead, until a new base is formed for Greek issues. They ended the could ducers
raaintain their managing director, Mr Lee Chee-
goods have rebuilt steel stocks ten and frull.
a recovery and some of the ex-week one point off current position in face of the shan,
to the lovely of last July, the
herts changed their former pre- Rubbers gained in selected cuit television hos beon prolonged lag in buying by Mr Lee said that his idea was
Commerce Department "said.
dictions to have the market so issues by the close of business In the first nine months of United States and other 'over- born two years ago after u BQ buyers.
chance discovery in a curlo About the same time U. S. Steel 1960 biggest contribudon to re- ite 1800 low in the first half and and teas went beller where developed by the British firm
anaoused reduction in warehouse creased sloel prices that averaged about rubber earnings
a new bigh in the second half.
changed. UPI.
tlona, mills were
Mills making conting fabrics disappointed over the cautious policy practiced by automoble
Dotroi! makers, should have taken at least a partial second quarter position beture now, they felt. However, milla which have refuse to allow themselves 12 nemain completely dependent upon automakers, have switched some machinery of their
to wide apparel fabrics, draperies and other industriel fabrics in better domand,
AIAL
MOSTLY "QUIET
Khlaw Chung
In the nylon filament sec shop in Scotland, where he saw reported in a little piggy bank half hidden the best gold-ahead posillon in In an obscure corner of a shelf. Fascinated by the unusua! years. Taffetas and some other goods wore reported not avail-
shape of the toy "IL's unlike
able before late May or Jung, any Malayan plg" Mr Leo Fabrics containing rayon-and- | bought it and brought it home costate bipnd yarns, continued | after his holiday,
hm in face of the short supply
of acetate staple.
Boston zecounts said trading
In
the woollen market was
TAUGHT THRIFT
With youngsters forming wich
a ton
Car production
It was said that productio will dip to 155,803 vehicles this past week, the lowest of the yout This compared to 184,227 units assembled the previous week. The decline will hit all classes
spotty, with mille showing little & largo praportion of the pupuli-except the compact cars, which interest in new purchases. Most | Hon. "My Lẹg thought, it was im- last week accounted for 23.4 pu sources agreed the price tone portant that they was a tile softer than in recent taught thrift, weeks,-UPI.
Bank of France Statement.
Paris, Feb. 24. France statement del February 4,
The Bank of for the wook rosy as follows:
Tots gold huschen - 4,323,223,372,100 Sight banco abroad
Total giber currencies 77,009,310,407
Advice to Pleblitza-
Hon Fund
Benes in otroke-
tion
{
So back in Singapore. Mr Lee started tho sebemo whoreby de positare under the age of 18 are given little piggy banks, attrse
vely moulded in metal,
camo
steri-
from and copper, In both cases the recovery was greater than the fall in value occurring in the first three quarters ofjan 1950-UPI,
Bank of England
statement
Landon, Feb 14.
10,110,507
BONDS HIGHER Roflecting easier money and increased demand bonche moved higher in all groups, in- cluding the U.S. Government's. NAFU Corp. led the market in turnover with rates of 582,400 shares. It gained 10% points. Studebaker when-issued stock wan second with volume of 170,200 shares and n icse of point. These two lazuca 1ogether for more than a accounted million shares of the week's
Soviet-Chinese
trade shows big expansion
Advanced system of 3-D television
N advanced syrtom
of
af de NOTE
E.M.). Electronics to most
[NOTE: "Prstens" has been Bradford by the Dyerc Association, Bradford, Yorkshire, England.]
the requirements of nuclear plants and other establish- A miniature monts whore dungerous
materials have to bo mani-potentiometer
pulated remotely.
The stereoscopic equipment uilles The company's standard
closed circuit undis and consists
IN
response.to
growing
Idemand for miniaturized
UK firm har
A now small
of
Housed in an aluminium case,
moter,
of two camera chetinels mount equipment A cu side-by-sido and arranged introduced to rolay pictures onto two spindle-operated type London, Fel. 14.
pictures from {potentiometer. monitors. ivne should be cont of the total output, com-
trade Is these are then superimposed on pared to 23.2 the previous week.
Soviet-Chinese
cach other by means of a Car reta sale lust month The Bank of England state-sales,
booming and further ex- totalled 455,000 new care, up 10.0 Įment for, the week ended General Motors drew up in
pansions pre planned, mirror and polarised glass, it is only half an inch in dia- It's constructed on tho third place' with 'sales for the per cent from January, 1939, Thu February 10, reads as follows: Commerce Department reported Notes in circulation, £2,134,503.001 1055 of 1 points;
Moscow radio said today, ferm a single image. weck of 10g,300 shires and a
When viewed with polarised principle of moulded carbon A Standard
broadcast suld the 1950
produces tracks, incorporating a brush thpt auto sales boosted aver-all Pubite deputa retali volame to ir leyel two per rivale deposits
310,02324 Oli (NJ) fourth, with sales of aggregate for the two countries placles this
· has alw Two tracks are included in eent above buth December and Government securitien
tre. The equipment 270,309.1735 point, and Studebaker, fifth with was 30 per cent up on the pre-aisle three-dimensional pic assembly of special design. Other eburne the previous January. Other sales incita
vlous year and more than three 44287.621 cales of 143,000 shares and a loss times greater than 10 years ago. Continent af Europe and in this outer and silver-londed, con- ready been demonstrated on the the moulding: a carbon, resistive 33,719,990 of quarter point. showed little change, the De Re
"Soviet-Chinose trade in re- partment said. The January rate vas '$17.0 billion.
Financial experta credit revórul The scheme proved an in- | factors for the growing tendens modjate muccem," said Mr Leo. of investors tó chịit trom stocká
Soon afterwards waving boxes to bonds Proposed budget Bir shaped like safe or toad were pluses have dampened the in-
Whion one of these boxes full, is opened at a Chung Khiaw Book office, and the amount put into the child's savings account.
The main thing is that the piggies can't be opened at home.
Exchange rates
UPL
aleb leaved, Thann the sélection flationary psychology, they salateficial excherige market
Dilsiness wow done. In the bel 229,077,000,000. Was extended with the addillon This was coupled with a genera) (meming at the following roles
of the
camel, belief that blocks were over US dollars (per $12, rhinoceros, elephant and squirrel shapes. priced in relation ta dividends, isteding notes (par ki)
Investors, expecting & decline in
ntt
CUTTEIN WISynty and
And now the tile piggy bank ids has blossomed out into million dollar mujinosa...
indengine rupiah (per 100) the markot, are doing out war mums konts (pas. *** fore the drap comes-UFI. Bingapore (5lraits) .........
All of the motore and stets cent years has accounted for country, and has proved highly ductive Ihner, They are bridged
muccessful in practical demonby a single, tension locate registered moderate declines. 20 per cent of the U83A's and
brush housed in an Insulated strations. Kennecott was down 3% in the jabout half of China's foreign COPPETS vitile International | trade" náid the radio,
Features of the systems in-carrier. By reducing the number Nickel rose 2%, American Home It disclosed that 11,000 Soviet clude the simplicity with which of pressure contacts, greater rem
in Chemical 7% the drugs, the past decade and more than and the novel arrangement by
Chinese Dougion Aircraft. rose throe 7,000
engineers
Producis 100% 4% and Vlok experts have gone to China Is it can we set up, and controlled, liability is achtoved.
The potentiometer oporates
and which the human ops's "angla Win the temperature range 35 thia points on the week when it was technicians have received train of squint line been realistically degrees Centigrade to 6 itegress a voltago Centigrade and has achieved by mechanical mentia.
Elmitation of 350 volta. Type
Potentiometeri
8.70 announced the company wasing in Russin.
18.00 being leensed by Sud Aviation A long term trading, ngree-LFS. 1860 of France, móker or Caravelip |ment is being prepared which
50
0.6 short ratige jet airplanes. Du srovides for a further extens501 (EMI, Electronic Ltd., Hayes, Plessey Co. Ltd, Pruel, Essex, 181 Pont azı thlon Curtide Instd trade," the radio. added. AP., Middlesex, England.)
England.J