Page
THE CHINA MAIL MONDAY
MAY 16,
Weekly survey of American economy
RECORD OUTPUT FIGURES
London Improvement
stock in gross, market retail sales review
London, May 15.
in
HONGKONG Z Wall Street
STOCK EXCHANGE
Our Own Co-mipondent
Stock Exchange kong
this
Instrument for
recovers from measuring engine weak opening wear in aircraft
New York, May 15.
New York, May 15. Business done at the Hong- America's total output of goods anding amounted to appro-
services exceeded $500,000 millionximately $4,790,000. Noon quota- Stocks met support during the past week when President Eisenhower told the nation that the economy had reached the $500,000 million milestone.
tions and the morning's trans-
for the first time in its history early actions
this year. Unemployment dropped back to the five par ́ cant level and retail sales hit a new high for a strong combination of good economic news this week.
shares BANKS
I Bank ...
East Asia
Union. X SHIPPING Aala Nov: Wheelock
INSURANCES
DOCKS, ETC. What
Dock
Telkoa ERLL
Industrial shares staged a sharp recovery starting and prices mid-week jumped sharply response to new demand in a market thinly supplied
The gross national product and Steel Institute reported that with stock. Minor profit- taking Friday was easily for the first quarter of 1060 mills plan to operate at 73.8 stocks carlier estimated at an annual per cent of capacity this week, absorbed and.
rale of $498,000 million, was an output of 2,103,000 tons closed firm at their higher at a $500,200 million by That would be $5,000 tons below levels.
President Eisenhower at his last week's volume when the Volume was never heavy but mid-week press conference. The operating rate was 75 per cent the Institutions were in the increase of $2,200 million from That, again was 2.5 per cent market and the belief spread the earlier Commerce, Depart- below the previous week's that with prices well into the ment estimate and of $18,700 operating rate, continuing a lower half of their downswing million from the annual rate steady decline that began in the moment was right for re- prevailing in the last quarter of mid-March. Steelmen had said investment,
1959 was due primarily to an earlier that the industry would even greater increase in inven- settle down to a rate of 20 per Lory buildups than originally cent of capacity and may go Humphreys
lower still in the third quarter Ready
RUBBER calculated.
traditional summer
Amala when the letdown coupled wih model Trust changeovers in the auto - d'ustry occurs.
on
Timing of remarks by a the lending economist opportunity to buy shifted In- vestors from the sidelines in a phase when the tide of selling over recent weeks had dried up. Whether the
movement is a secondary
or the beginning of a general longer upturn remains a matter market argument.
one
Inventory accumulation during this year the first quarter of amounted to $10,600 million at an annual rate of $1,800 million more than has been calculated before. Increases in consummer for purchases, government spending and exports also helped to push In any case few
the the gross national product over new upside the $500,000 prospect of any movement malching the post mark. election boom which rocketed prices in the final three months cf last year.
500
GOOD SHOWING Blue chips made a good show- ing, with gains running into shillings. Most ended with frac tional losses up to 1/8th sterling, Dollar stocks were mixed under variable Wall Street in Auences. Foreign bonds fea- tured gains over the week for Japanese non-essented with Tokyo 5 per cent £17 higher Greeks receded.
After starting dull gold mining shares brightened in end-week dealings on better reports from South Africa. There was no rush
million echua
Unemployment
Unemployment,
But even the comparatively
low rate of operations in the seventies" seemed to many steel makers to be out of proportion
Dock
LAND, ETC.
HK Hotel HK Land
S. Kelantar
XG
Surgala UTILITIES
Star Ferry Yastmati
Buyer Beiler Sales
1958 1890
***
7.25
-1.35
256
130
DO
B1
The President also released unexpectedly high gains in em- ployment which set a new April record high and a sharp decline in unemployment to clinch the good news.
Sharply lower March earnings brought the rails lose.
But the April statistics lent immediate support to the Ilst. Gains increased in scope with the best ones in the anal session. Trading picked up on the re- Other April statistics were equally favourable-record de-covery which was considered a 70 tail sales, an improvement in highly favourable sign.
At the closing levels on Tues
1.30
120 building of new homes and 123 record shipments of
83% .61
4344
001
61
20.30
36.10
2006
130
9.00
1
0.10
3.55
6.06
534
metal.
copper day, the industrial average stood
culation. That was only moder
A NEW British Instrument for measuring stress and engine wear in aircraft is three years ahead of any such instrument in the world, the makers claimed here.
The company, Royston Instruaight engineer of all logging ments Limited, said that it the operations," he said. Instrument was properly used and its data stored no two air craft crashes should ever occur for the same reason.
Mr Dobson said the Midas would do the night "engineer's logging work with far greater efficiency, but the engineer hlm- necessary selt would still be A pilot's dangerous because of his specific duties in manoeuvre, a bad landing or flying the aircraft, and In stress caused by severe weather emergencies.
Mr Dobson referred to the turbulence, would all be re- corded automatically,
saving in operational costs The recorder would be easily
made possible by accurate salvaged from a crash because measurement of wear when he
The car industry reported a rise in production over the ately above the year's, low set the aircraft was three feet under engine is stripped, virtually the
previous week and a year ago and retail sales held high for the week. These plus the April Agures more than offset a poor showing for steel, electricity, coal, car loadings and construc tion.
LOSSES
The Stock Market declined On Monday $20 moderately on
Tuesday the losses were larger 9.15 and the rails set a new low since
September 18, 1958.
This decline in the rails led experts to the belief that the 6.10 market was to meet further selling with an attack on the st recent lows in, the industrials.
178
180
175
257
23.40
C. Light
Electric
19.10
to the facts of Wie on the steel market today. They pointed out that the rate of incoming new orders currently nus at only 42 to 48 per cent of capacity and leven if orders do pick up, pro- which in
duction will have to continue rate, of new March reached an unseasonal 5.4 is decline to the
One reason. for the per cent of the total labour
business.
was given force, fell back in April to five
legging new orders per cent. The April rate was as the unwillingness of manu however, still above the 4.8 per facturers to build up inventories Telephone cent recorded la February, In actual figures, employment in beyond a certain point. This HR Ge
again was hailed as the weed of April rose by 1.9 million to a
a possible new upsurge in total of 66.2 million. But most steelmaking when maniac- of the gain was in seasonal i3-
turers find their present Inveri- dustries- agriculture, constructories too marginal. tion and trade. In industries making durable goods it ac- tually fell lightly, due primarily to the steadily declining rate of
Resting
In a way it could be said the
to buy despite good earnings operations in the nation's steel American steel industry was
from
monds improved, while coppers were steadler by the close. Tins continued on the uptrack.
14 14.30
INDUSTRIALS
Cement
5116
STORES, ETC.
Dairy
leading mines and the mills, and the resulting cuts a resting on its laurels. For the Watson
of its first-quarter Lane Craw, market remained cautious. Dia- various metalworking plants,
achievement was such that it Gilmen XD The latest example of this impetus
The Textiles... came from International Har- carried it to new records for the COTTONS vester, maker of trucks and January- April period. agricultural machinery, which four-month total of 44,511,893 Nanyang XD. last month laid off 3,000 men to ions was nearly three
than the 41,763,988 MISCELLANEOUS balance output with
A week of narrow movements in. oils ended with the leaders tacking on minor gains.
rubbers tended beller and teas stayed firm.-UPI.
SHORTAGE
million
demand. Several other agricultons produced in the correspondi- vibros tural equipment makers following period last year. On the Allied at..... ed suit in April and so bid other hand, the production of HK & FE Invest. passenger car manufacturers. 0,711,000 tons in April compared But the signs were that, at least unfavourably with the 11,564.683
poured in
in the case of Detroit, most of tons poured in March and with the idle work force was now the 11,281,920 tone being recalled in line with April 1959.
OF CREDIT strong spring sales.
SUPPLY
Based on the capacity rating Another sign of the weakness of 148,570,870 tons
af
of durable goods manufacturers January 1, 1960, the steel in- in the total employment picture dustry operated on an average was the fact that the average rate of 80 per cent of capacity worked during April, 91.6 per cent tumber of hours weekly by factory employees during March for an average rate of 90.4 per cent for the The past week was un-dropped again in April to 39.4. four month January - April
as the
peciod of 1800.
London, May 15,
balanced as far
supply, of credit was con- cerned. On Monday, there
was
Sign of strength
Yet, the fact that unemploy
an acute shortage ment dropped by 548,000 from with the authorities March to April and at the start
percentage.
4115
ឆន
30
414:
10.80
11
10.80
15,40
11.60
1454
Australian
6.70
9.10
15.00
HK, S'PORE
TO C
ENAMELWARE
AGREEMENT
From 'GORDON HUNG Singapore, May 14. An "unofficial". trade mis. enamelware sion of dealers here will go to Hongkong soon to sign a "stand-together" business pact with manufacturers there.
1511 They will urge the manu- facturers to pool their common resources in face of rising com 1. petition from manufacturers of
other countries.
trade mission
in America
*
off
at 695.82 in the Dow-Jones cal-twas ätted with an ejection said: "Ninety five times out of device, set to operate as soon as a hundred, when an aircraft water, or if it caught fire.
first thing found, is that it did. The British Ministry of Avia- not need it yet."China Mail
the instrument tion 15
Special. and crcraft Services! of California had agreed to act As agents for it in the Western Hemisphere and Australia.
on March 8 at 559.10 and 80.85 points or 2 per cent from the year's high set on January 5, the second session of 1950.
BULLISH
The railroad average at its 19-month low stood at 137.68,. down 2.75 points or 14 per cent from the ycar's high, also set on January 5.
The Monday decline was the 56th in the 90 seasons to that date this year,
What encouraged the bullish element late in the week was an improved demand for the higher grade industrial shares.
Steel shares had a good rally in the face of a decline in opera- tions below 74 per cent of capa- city, further cuis anticipated and some softening in prices. These were offset somewhat by Re- public Steel's chairman, who
a Britain's new copper
The Mida "black box" is magnetic tape recorder which notes stresses, strains, tempera.
changes in tures and strength of metals at 270 points in aircraft
the rod rolling mill
The managing director of Royston, Mr Ken Dobson, en- phasised that the device was not only a crash analyser it was mainly intended as a check on the operation of the aircraft. "It does away with a lot of the work of the fight: best observer, and would relieve the
anticipated a bottoming out in Floral decorative
the steel rate soon:
Ford got a big life on Friday for glass surfaces
when the company announced it
was stepping up production of its Falcon car. Other motors also
A
rod
NEW copper rolling mill now in production in Britain is fully automatic with a normal production of 100,000 tons per annum on the basis of two daily shifts of sight and a half hours sich. It is operated by a crew of only 17 man.
The mill built at Prescot. Lancashire, by British Insulated Callender's Cables) is the largest and most modern and rolling British Firmill in the world. It will sup
ply 75 per cent of the rod used announced recently by the cablemaiding industry in that they had developed a Britain, unique forms
Improved in belated response to WHEN
higher production figures for the week.
Early in the week when the general Hst was unsettled there was a fairly good demand for
all types of defence stocks, re- ficoting the spy.incident.
The industrial average
gistered its third best weekly
knowing the exact price.
It is entirely British designed
of floral decorative leading for use and built at a cost of approxl- In all types of glass sur-mately £1,500,000, excluding faces, a regular customer working capital. put
Each copper wire bar ded into INDUSTRIAL AVERAGE was so impressed by photo- the two furnaces of the shilf re-graphs of the new product weighs roughly 265 lbs. The that he immediately placed bars are 64 inches long and gain of the year-8.41 points- an order without even roughly four inches square. to close the week at 016.03. Rails closed at 139.47 of 1.38 points on the week but up 3.15 points from the Tuesday low. Utilities Anished at 89.19 up 0.21 and the 65 stocks, in the three, averages, 201.27 up 1.35 points.
Trading increased in each session until the total reached 3,750,000 shares on Friday. It was the largest week's busi- nese done on the Exchange since the week of March 11.
The sales totalled 15,420,970 à dally average of shares,
In the pre- 3,084,184 shares. vious week volume was down to 19,955,505 shares or a daily average of 2,781,101 shares. UPI.
The anission will comprise the
same intervals, of leading representatives enamelware dealers In State..
the
The immediate aim of the mission is to discuss and reach agreement with the Hongkong manufacturers on ways and
means of improving the rales of enamelware in the local market in view of the rising competition from Japan and ather European countries.
Chicago, May 15.
Another object of the mis- The largest Australian trade son is to assure a "guarantee" mission ever to visit them of Hongkong-made ertamel- United States began aware in this region. one-week study of the Mid-West
economy : by conferring with officers and directors of one of the biggest banks in mid- Ameticá
Local traders will Intrn the manufacturers 1 Hongkong that enamelware worth about HK$5 million could be sold every year through them.
They would also point out to the mantifacture that this target fire could be doubled the condition in the market becomes more favourable in the future, and y
Textile
market
active
The bars are heated in the produce, furnaces for one hour to a tem- The manufacturers
the do-it-yourself perature of 810 to 830 degrees mainly for market, complete kits.which en-Centigrade. They are fed auto- easily and matically and alternately to able householders quickly to make a professional the two furnaces, one every, 13 job of adding decorative lead-seconds and are, therefore, de- ing to any plain glass surface. vered at the far end of the The lead strip is cemented to furance at the time 13 seconds the windows giving the
The first stage in the milling "furnished" effect as the tradi- tional lead lighting without the process after the wire bar leaves in, the furnace results in, il leng disadvantages of raining
and] "squashed" from its original 16 dust harbouring grooves difficult cleaning. It is compara-square inches sectional shape tively. Inexpensive, extremely into twelve and a half-mjere. easy to use there is no glass to inches. The second stage further cut, no windows to remove, no reduces the sectional area to nine heat required and no joints to square inches, the third singe to solder and it is weather-proof Ove and a half square inches, in any climate extremes. Apart the fourth to four square inches from use on house windows the and the fifth stage to two and im strip is ideal for caravans, gar-half square inches,
deo suramer houses, shop pel- At the end of the fith sage, meta and book-cases, etc, the wire bar has increased in The firm also sell bulk sup-length from its original 34 inches plies to professional window to 30 feet, all in 30.46 seconds, leading contractors, builders, de-At stage, at, the epeed at corators and property repairers which the bar is travelling The new development which throath the mill has to be con- will soon be avaliable to the siderably increased to ensure overseas market is an extension that is greater. length travels of the existing basic strip lead the same distances in the state principle. It consists of floral me as the shorter bars blow- patterns based on actual plants and fowers. No previous excreased speed is obtained by al- Ing behind. Part of this in- perience or special tools are needed, the kits containing all testing the bars down two different channels, or trains, for that la necessary including de
Car makers, encouraged by a 15 per cent sales gain in April over the same month last year, stepped up production last week to 143,622 passenger units from operating on a large scale of May totalled 3,680,000 was 135,515 the week before (a low mostly by scattered to inject funds while taken as a definite sign of caused
in the economy. strikes) and 134,783 a year ago, Tuesday saw easy condi- strength
Aprii sales Agures showod Analysts have long become ac-
New York, May 16, tions.
customed to the fact that five car dealers sold 578,000 U.S.
The 37-member group arrived
Skyrocketing prices for per Dent However, there was another out of every 100 workers in the built ours, 15
burlap dominated the pic fur round the following two United States are more or less ahead of a year ago and 4 per by plane from Winnipeg,
Mr David M. Kennedy, chair- days and penal borrowing had permanently idle, With the cur- cent ahead of the March pace.
ture in basic textile mar to be undertaken at the Bank rent levels of industrial produc- New car registrations for the man of the Board of the Bank,
They would, however, ask the
kets this week, of England. Nevertheless, the tivity, they claim, only a boom first quarter were 1,520,963 up explained United States bank-
Activity in cotton grey goods, signs and full instructions. The the final reducing process. The «cials” elaborated on the in- goods be priced jo week ended on a more comfort could occasionally lower this 13.2 per cent from a year ago ing practices, Other bank off-manufacturers that the finished compete and second only to the record
wool fabrics and rayon grey and metal is processed and shaped speed is stepped up at each mac
At the end of stage din, the bar able note.
and flowers with maturat mark. As a result of the unevenness,
Another sign of economic selling year of 1935. Based on dustrial and commercial set-up with Japanese products
Hongtong has been the main finished goods developed at into delicately engraved leaves essive stage from then on
routine pace. 10. previous years patterns of sales, in this country. the market had to pay up to
seconds later, at # Members of the Australian supplier of examelware
On cotton sales, yarn spinners ings These are applied to the has become 65 feet long and 3.2. 4% per cent for its accommoda- strength came from retail sales this could mean a total of 6.8 tion during the most difficult gure for April watch showed million new cars sold through-isdom, headed by Sir Douglas Singapore Mist Japan sa maling said knitters and weavers were Elass with the firm's specially ten stake seve periods and down to three per a total volume for that month cut 1980-very close to the Copland, discussed opportuni- in all-out bid to capture the still covering "close to the vest prepared adhesive cement. The rod finally attains a speed
because of the comparative ease maining permanently fixed. The earlier, optimistic, predictions thes in Australia from the pouts merket ant during the easy stages of $18,900 million. This was There was a fair demand for three per cent above March and UPL
well ahead of the former record bills,
of $18,300 million set fast SHARP. DROP There was a chap drop in the October. While admitting that Treasury bill rate at this week's good weather had an influence tender of around 18 per cent, on retail trade the Commence This was attribuick to the fact Department painted out that were what really did the trick was a that discount houses setting far too few bills over of a strong flow of past weeks which were not personal income. tud suficient to cover their own re- Whether the $500,000 million
World sugar prices
New York, May 15.
depleting the range of works raw as prices over the past
quirements and the banks annual rate of output and serenatribation of a graphic chart
Sodepsite the fact of the vices can be maintained in the high cost for money, for which second quarter will depend to a the market has had to finance large degree on stees Predice their uptake of Treasury bills, tions for the gross national pus the discount houses were forced, pucts for the whole of 1960 especially in view of the keen have been running close to Competition for bills from out- $510,000 million. If this is to be kide quarters, to revise.
17
the
view of markets for Amerri-' can gooda
opportuni ties for United States; Invest- ments.
Str Douglas, MrAL Paltridge, Manager of the nilision, and, Mr E. E Jarvis, Australian Government Trade Commissioner here paid
Bank of England
statement
London May 15. courtesy calls on the Chicago The Bank of England, state Association of Commerce and ment for the week ending May Industry and local offices of the Tread as follows:
US Department of Commerce Notes fruition 23.100 440
While American Interests Public deportegy already are operating profitably Private deporta
Government em
Lavestigation by Rallo
panufacturers 1990 expand their
30 years. Waq announced. Iset m Australla,” said Sir Douglas, ofer marities week by Tamborne Com where will wide Recepts
urope Los pany, international
Middle W brokers. the chart shows the high, low their achieved another surge of steel and yearly average prices from
?你 Laporatioma slimilar to that of the Prografsky Meghích ta. prder to first quarter, would have to occludes the depression
Torpe krut!!At present there was no wir years and the's
libelihood or tilis unul much period avsla Juber in the ear,
In fact, the steel
low in 199
ided this week for be eighth emia
Agreed merchant
rates
Swiss Francs Masin
they found in securing a good product is designed particularly of 30 feet per second when it delivery on virtually all counts for the tasteful decoration of enters the finishing mill and, in
Apart from burlap, other hard glass partitions, mirrors or this two seconds i
w the coiler it is accele
she were cause in tone, burn cabinete
ing Interest in sisal here and in The same Arm also produce roughly double that, for Europe was reported at a prac-opaque plate glass panels, de- 3,800 feet ver, ma
By the time Bcal standstil Some Pullip corated with processed metal in pine haitters of hemp, anxious classic designs of wrought front a quer for ardeine, were reported styling. Panels are produced in diameter: soliciting bide. A standard mizes for fitting into
doors but can be made to cus- quer POSTPONEMENT
tomers own requirements.
over the past eight years they have bull up an denave home kod overseas business, seat producing no fewers than
1500 miles of strip lead every non your
sold in orld is far
Because of shrinking supplies
of raw juts me Clouts will whleb piarmel to reactivate: 135
cent more jute goods low
360
on
Jume I decided to po action because of the uncertain outlook for Jule supplies