THE CHINA MAIL MONDAY, JANUARY ̈· 80, · 1961.
Weekly survey of American economy
THE RECESSION DEEPENS Lonice
As nation waits for Kennedy directives
Now York, Jan, 29.
The recession deeponed this past week as the nation waited for President. Kennedy to issue his first economic directives.
official
These will come this week in Kennedy's State of the Union measure and in a fiscal report outlining the administration's programme to help the unemployed and stimulate the economy.
flseal
03
They will be followed, some 4. Heavy costs of maintain- two weeks later, by a special ing idla equipment in indus
or lika steel bulking murrage on the current gold tries drain which will propose steps materials which are pot egerai. to verteel the balance of paying at capacity. meata dellelt. Finally, changes i TAX DEPRECIATION in the 190) and 1902
In connection with the inss budgets will be outlined
pulut. a drize by busine : Con us the various KONSTA-
grows to convince Congresa mich departments have had
that liberalised tax depreciation limo to recommend! Drum.
are long overdue, These budysts have been work-wan
out by the outgoing Reems to be gaining ground.
These
that Kruups belleve publican administration and the
administration
reform of the tax depreciation Kennedy
stiucture would stimuate pro- expected to revise then at least duction investment, and at the
those feld where major
serve as
shot in polley changes arc contem-me time
eam to the general economy. plated.
well br This proposal may
nf
that the measuICJ
cel
in
was
the
The economy, in the means; part
These Line, slackened further. were the main indicators:
Labour Secretary Gold- berg told the President some 3.3 million were now frking unemployment compen ratlon. This indicated the total rs! unemployed in January would probably reach five noi a half million;
Rubber was a Wall Street moves
up for fifth
vital factor
in Britain's
re-exports
week in a row
New York, Jan. 29.
The stock market registered its fifth
consecutive advance
active trading.
this
wook in
LONDON
CLOSES
FIRM
London, Jan. 29.
A fresh eruption of takeover
and merger moves domin- ated the stock market
vestment buying on Friday
govo stock
London, Jan. 29. One single commodity and the purchasing policy of boon one country have mainly responsible for the ups and downs of Britain's total re-exporting perform-
There A good part of the gain came
When the Dally Mirror counler ance in the past three in the Friday session and was povery softness in some defence group's £32.6 million
attributed to Invector enthusiasm stocks which brokers attributed bid against the Roy Thomson yours.
also was some tem-
o firm close after a wook, of eøgging pricas.
Experimental gas turbine
locomotive
pent weeks wave of in- A 2,700 h.p. experimental gas turbing locomotive, GT3, designed and built as a private venture by The English Electric Company, has been completed at The Vulcan Foundry, Newton-lo- Willows and recently started its trials on the London Midland Region of British Railways. It will entor revenue service later in the your.
The commodity wes rubber and /generated by the better-ihan-to the recent news events sug-newspaper group's merger, plan ·
the country was Russia.
Over the past five years total re-exports from Brain have been worth, an average: £107 million a year,
Board of Trade statistics today, showed re-exports of rubber use from £18 million in 1957 to £32 million in 1958, then fell to £11 million in 1969 and jumped again to £23 million in 160.
"These movements more than accounted for the changes in total re-exporte between the three years, the Board sold.
SOVIET BUYING
expooled earnings reports of | Kesting an improvement in East with the Odhams Press giant is
West relations, several industrial giants.
included--and it came after the There was an interruption of Sales on the "Big Board” this market closed on Friday the the uptrend at mid-week, how-past week rose to 21,899,854 total Involved in current toko- ver, a many traders who shares, or a daily average of overs jumped to £117 million. purchased "bargains" in Decem- 4,379,972 shares, from 20,734,470 The bids brought some shorp ber, when others were dumping shares, or an average of 4,140,894 jumps in the counters oflected depressed stocks 10 establish sharès per day the week before. but elsewhere other indicators stock losses, cashed in some tidy The Dow-Jones Averages were exerting a two-way pull Anished the week with 30 Indús- į and early on seilers, had the proßte.
trials at 643.59 up 9.22 points, upper hand, and 20 ratis, at 140.34 off 2.30. The average of 15 utilities jump- vd 1.69 points to 105.14, the highest since April 30, 1930, than overall averag for 65 stocks eloped at 216.03.
HONGKONG
STOCK
EXCHANGE
by
Our Own Correspondent
Of the total 1,463 Issues traded this past week, 764 were higher, 575 lower and 114 hald un changed. New 1800-G1 highs were registered by 237 issues and new lows by 11.
ALL-TIME HIGH
Helping Friday's
upward
The prototype, which is the product of successful bench and
track tests at the E.T.C test Radio for inflatable
station at Rugby, is not unlike a conventional steam locomotive in appearance. The unit con- aisis of locomotive and tender, with a 4-6-0 wheel arrangement
ad
liferafts
movement was news that Briand a driving wheel dismeter A new portable transmitter....... tish Industry was still planning of a D'. It is finished in light heavy capital expenditure in
brown. with dark green frames 1001 and an carlier statement
and wheels, and is, lined with the Board from President of of Trade Reginald Maudling that trade on the home front might become lougher it tariff protection was cosed or tended lo be shrugged of
"
I
dark green and orange bands.
POWER
A
receiver for inflatabló liferafts is being market- by The Marconi International Marino Communication Co., Ltd., England.
It is designed to beat the problem common to the mft-- the handling and operating of bulky abjects, such us radio equipment, on board. "Lifeline",
It said that changes on So- Kennedy will propose, On the viet buying were responsible.
that other hand there is little
In 1960, Britain's Imports of Kennedy or anybody else can
natural rubber increased by only to
two per cent over 1959 but their do to induce the consumer spend more money if he thinks
value
18 per was up
cent.
Power is drawn from an Eng- be weld rather save it.
Jish Electric EM27L gas turbine Synthetle rubber imports, how-
LATE RISE cent More and more economists
ever, increased by 50 per
-designed and built at the in both quantity and value. In-
The Ipte upward trend re- Company's Whetstone works in The Standard & Poor's averago belleve lust year's trend of
from the af synthelle porta mere savings at the expense of
Timer Leioastershire which has been for 500 stocks rose to a new all-duced the Financial United spending may be ressensible
Statca rose by 60 per
10s to only specially developed for direct as the equipment is called, is Business done at the Hong-time high of 01.24 up 1.28 points industrial index
drive, with for the steadily deteriorating cont compared with 1959.
Exchange Stock
this from the previous Friday's close. 3.1 for the week. The Index mechanical
A completely self-contained, only Total raw rubber imports,kong
power turbine, against last separate Ampex was The steel industry post-recnomic situation. The third
the most active ended at 3iso
to operate, and provides efficient ánd whether natural or synthetic, in morning amounted to appro-
reduction two-way radiotelephone espfact poned its hopes of a re- quarter of 1000 was typical of
Noon stock with sales $4,700,000. were 291,000 tons,
of 408,000 year's low of 203.4 and the high simple reverse ximately
peat-box is employed. With a with rescue ships. ravery this month until Maren. this trend: Savings represent 1960
a of disposable Increase of 14 per cent on quotations and the morning's shares. It closed at $204, out of 342.9.
full tender--2,000 gallons of gas. improvement there ed 8.2 per cent
Sperry Rand followed with
À income as against only 0.0 per year earlier. The imports were transactions;
Steels lost their appeal as áld of fuel and 1,750 gallons, of The
370,000 shares,
compact fuss-fibre case and Standard new orders was in
Shares Buyers Sellers
water as well as train heating contains all the essential equiy» the same period of
stores, texilles valued at £70.3 million which
1770 1784 beginning of January was of cent for
Oll (New Jersey), General Elec-leading was 23 per cent higher than in HK Back. 1950.
banks, equipment a total load of over mont, Including telescopic axial trie and set by curtailment of produc-
American Telephone mater, while aircrafts,
and newspapers stayed on the 15 tons)the complete tccamo- and telephone andect. 1959-UPI.
rounded up the top five. 1ion is the auto industry. With
the Inst mentioned five weights 123 tons and the complete instrument is only 17 uptrack, American Telephone again was these cuts from Detroit, January
overall length is 08 feet. the bluest of the blue chips, helped by takeover prospects.
inches Fong, 7 inches wide, 5 shows only a slight gain to urders from December,
and inches high 细
than The flat-rolled market, especial- bis cold-rolled sheets, ly suffered most
Whatever
new
al
from the slump
In eattomobiles while a pickup in crders has been noted from farm implement makers and appllance makers.
very few
With
exten- tions, final earnings m
for 1960 which Just started to trickle In, have been disappointing.
parts
Even where Volume
higher
was indicated,
sales
often
net profit was down due to in- Typical of this cressed costs.
trend was Pennsylvania Hall- rond, the nation's largest rail carrier, which reported a fuss! of US$7.8 million last your s against a profit of $7.2 million In 1959.
The interesting part of this report is that in both years gross revenues were Пpproxi- mately the same. Westinghouse had a profit of $79 million us year on 2
volume of sales $1,955,731,000. In 1950 profit higher on B lower - almost 186 and $1,010,730,000 Steel, Republic
was
Roles volume
"third largest,
million respectively. the nation's showed a loss in 1960 сусп against the strike-plagued your of 1953. Bethichem Stee), the second largest, indicated its 1960 camming would be "sharply" dował.
of rate
business * The
failures or bankruptcies
În 1900 was at a monthly average of 87 per 10,000 enler prizes, well above this highest Dustwar rate of 51.8 per 10,000 renched in 1959.
RECESSION
In actual cash the pictures
ever
impressive: morc are Savings in the third quarter of 1900 increased by $3.5 billion. The second quarter gain was only $1.3 billion-UFI.
Agreed merchant
rates
Canadian dollars: Maximum Selling, 174; Minimum Buying, 174 T.T. 17 9/16 O.D.
Swiss Francs: Maximum Sell ing, 74 15/10.
Exchange rates
an
Butane was dong in the locat -unomgial
exchange market This HK Bank
Lon. Reg.) 1500 morning at the following rates:
423 3.73 Lombard Ins. US dollar per $11
250 13.25 Whare Co.
7314 7415 17.00 11.03
Sterling notes (per £1 Australian notes iper Cl Indonesian Rupiah (per 1001
12.03
2.40
Talkoo Dock
x Ga
Slam cute per 100)
20.35
Singapore (Straits)
хло
Unit trust
First Hongkong Fund: Buyer Price.
Seller Price
Wheelock
11.40 112
$1.13 $1,20
1 Dock
The gaps remain wide in world
interest rates
London, Jan. 29.
Japan's bank rate has followed Germany's cut, but not Britain's. It is now common form to describe such moves as designed to narrow the gap in international interest rates and so to relieve the dollar's problem of hot money out- flow. But the gaps remain very wide and hot money is only one among many influences in the present grave distortion.
The gap in sheri maney rates private Americans would also between London and New York be denied to private foreigners, is slightly aggravated by the Mr Reierson cays that no The recession, which mori easter New York Treasury bill | technical measures or, devalun- tion denials can be substituted and 'more economists pro cor- rate and sterling's narrower
31 Japon for the imperative task of cur discount. rently blaming on a mistaken forward thrifi on the part of the con- chose to widon her exchange recting the American balance of He spys dollars sumer, is beginning to be re-margins to the 1MP one percent payments, flected in so called executive limit and allowed the dollar devaluation would be a crush austerity. This moons that to sink to the widered floor, ing blow to the economie and politieat strength of the free many arms aro cutting their she would be entitled under
world: staff. trimming salaries paid to management, paring such fringe, benefits as bonussa.
chain The Sheraton Hotel asked executives in its Boston nifico opening more than $13,000 |
the
IMF Tufes to pay $35.70 for sold in London, well above the present London price.
Idens that Germanya bank another cut prasuged immediate cut in Britain, had
rate
a year to take a voluntary six waned before Thursday's no
Bank of England.
por cont out in pay. Pennsyl-; change annowscoment from the Vamin Hatiroad has stopped paying for club membership for same of its high-level officials. Generat Electric has prunod dozens from the "middle man- agement" category, men earning between $18,000 and $30,000
year.
There is no real similarly, Germany and Japan have targo surpluses while Britain shares Amarica's problem of intract able defleti,
DUAL SYSTEM Economio analysts, agreed
Reierson of the Mr Roy that the disappointing earnings picture of 1éso will be more Bankers' Trust Company (who mirrored in the fins was ahead of Mr. Henry Alex- KRIMTA Quarter of 1941, They my ander in auggesting the ben on. four basic factors, generally Americans holding gold, abroad) inter-reisies, will conieibuto now unges that gold should be to this Gevelopment.
rondned to Central. Dooks, and Governments and denied
Tlicy are: --
1. Easier prioca - resulting | epoctilatora, and hoarders.
from keeti competition for markets:
Cl. Prov.
1X & S.
Hotel **** Laad
Balea 201730
1720
19 n 1735
21769
14 1705
70 1000
39 in 1765
10 or 1765
23 of 1789
70 (500
group
103 2 280
2200 or 17.90 2000 or 17,500
TO $1.00
lleu of cash.
400 v 17.00
forces were fighting it out in the stock market at present;
of a
and
The
weighs. Bess With
rising 51⁄2 points to $114%, Jersby Olls receded early on but
The English Electric unit Standard Jumped 24% in the oltater elarbed stenally
20 lbs. Conforming thỏ thành các trbine lecarotiva favoured becmise
Gold mining prices drifted to run on the home raliways International Regulations, the good earnings trend,
steadily, the movement helped and is expected to give valuable equipm Sperry Rand fell 14 as direc-by dullness in West Africans operating experience with this buoyant 1050 1920 tors declared a stock dividend in after the Ghana government's comparatively new term of mo- Han: yellow for easyidanti-
moves to prevent marginal tive power. Market analysts said two mines from closing. The market
70 37 100 17.90 2000 11.30 20:00 11.30 15000 11
120 (24
20.00
444
25
Yaumali Perry '133 135
B000 15
·0000 11.40 1150 1.40 1000 I
800 69 124 300 + 124 100
A 305 30 124
000 / 124 125
100
530 e 10.20
.
also was apparently wailing
hear what President Kennedy would propose to halt the druin on US gold reserves and its
Belling is coming from those who see and fear a growing effect on the free-maziest price fundamental deterioration in the nation's Economy, To
of the metal. Coppers turned
them most stocks look much easier towards the close, but
tins were up. too bigh and the business ra- covery universally expected for the second half this year la mirzzo.
The buying is coming from thoes who believe that the beat market ended last October, that the new administration will 2500 26.00 effectively stimulate the economy.
70030.30
(New)
(23 120
100 134 700. BCO * 125
HK Tram., 33% Light ..... 20.00 8.30
300
500 6
300
500 or 20
1003428.20
1500
1000
28.00
2500 cc 28.38
500 € 28.10 3000 * 28.00 3000 28.00
HK Sec... 30,2014 500 291
IK Tel..... Others might feel that the real trouble is not the devalua
Now tion rumours but the distor Cenient tions which cause the rumours. Dalry Perhaps
the smart technical thing would be to buil the dollar.
3400. § 20.0
3500 At 20,00
300 28.00
1000 20.20
1000 20,00
6500 28.60
500 20.00
200 29.60
232 203
B00 30
7200
29.30
500 29.90
$300
29.00
10000
2000 20
$1 4255 400+
*1
10 00 500
2000
54 2412
200
204
1500
Already it so had, pre-IMT Watson 41% presture, ..., pre-election pressure and pre-inauguration, pressure. Allied Inv. Thle recalls the days, well into 1958, when sterling devaluation Textila was tipped before every con- ceivable calendar date-evon an OEEC meeting was Čufficient | A. Rubber, pretext.
"Unfortunately. The pressure
on the dollar, cannot be dis R. Trut Tutmodas AJ · hallucination"} Beally
and
Ainbrick cannot follow Blar Fet Biritaliin, msompiing
mxsorział, dlacjpitner Thero istny. Homeitling wrong when the Gūmki two great racervo, currénalen
to
--:
broomne iporis of mols thingi.
In that case, the tree, price
are not all over vives
000
12000
7,40
5000
1:200
0.03
6.00 1000
Podo
7.19
1.00 1.028 30000 100
10000
+4
3,025
Underwriter |could propamably break right of wiption 68 Brent fro
PRÚTIONAL for m The impact of the dip in whey from the: palal, price clerson's own the boonomy which ept into Boo Loodon dealers took ribe denying gold might be just es nic domand. Do many products, Amorican ban as a stop jowards supd as Qeykumjot, tumejus ch
BIRTIONE" AND "gold | motertain 3. Continued rising come of just such a dual price svatten, for the gold production, especially, tabaur, wheralty, gold already slemlest to i sherwof-China Mull Spypla)
000
end that the common stocks of our leading companies are sound long-term investments,
Technically it would appear the buyers are winning the argu- ment.-URI,
Long and undated gilt-edged bonds continued to sag with War Loan 31 per cents losing A 11/18ths sterling across the week to close at a new low of £58. Short-dated foreg beller. Dollar stocks were mixed; In foreign bands Grecke strong and Iron Curtain coun- try bonds staged on upturn on Friday.
Multiple grinding
machine
is watertight and and coloured a brli-
fication in the water.
cnce
SUBSCRIPTION Describing the equipment, a Marconi spokesman sold that on board the raft, the Koulement la simply crapped to the operator's knee, the derat erected, earth wire drop- pet verboard and within 20 +cconds of first turning the generator handle fransmitsion now multi-wheel can begin Accois to external grinding machine which | Attings vnd controls is obtained cover at either can accommodate up to by taking off
chd at the equipment. · Two eight
wheels grinding
controls only nre necessary 32 one (maximum span were
selects cilhor normal inches-825 mm.) kas speech or are automalloadly been announced by Q transmitted two-tone aterm U.K. machine tool firm. signal; the cther tunes the fransmitter to optimum per- formance indicated by a glow- Designed to grind multiple
in one ng lamp. The operator then dilameter components operation to a high order of Simply presses a switch in the necuracy and finish, the new handset to speak and releases
to listen... machine providos scopa for con- siderable production economy, in Transistors have been used the machining of camshafts and exterzively in the design of circuits reducing crankshafts and offers advantages: "Liful nost
large scale output, the both bulk and power require roamifacturers say. The machinė į ments. Both the transmitter
Tens and rubbers closed lower.-UPI.
Frestdent Nasser, Caring the United Arab Berazi celebrations for, the fourth anniversary of the avADUSLION SE British Kid French, troops from Port Haid, launched lerak shin erby to be built in the Aratz, werdik. It is a shrek
for
..put
haa a capacity of 40 inches and receiver are pretuned to (1010 mm.) between centree and 2102 kes, the international $0- distress can accommodato work up to redicte!cphone 10 Inches (254 man.) in dia quency, and onge the automatic meter. The manufacturers eny claim eignal has been trans they have aimed at simplicity, mitted and contact established, accuracy and speed by lising an radio bearings can be' taken on
transmission hydraulically operated dresser the ralle assembly designed to give auto rescue operations conducted. matic compensation for wheel The generalar has been truing.
#igned to require very Mitle turning effort and operation This assembly can also be does not impose too great a used for wheel forming. The tax on the strength of a sur- wheel spindle itself is 'driven by { viyor.--LPS.
a 39 hp, motor through six veo 190.
balts:
RESEARCH
Extensive research dis chine
de-
Flanging machine for
tool vibration in their own laboratory has been struc-A tural stability and improved optimum rigidity. It is easy to operato they add; the wheel- spindle assembly. Bean .bo, re- moved swiftly, or a now-whoe! filted without disturbing' the bearing), assembly,
Swedish yard
Scottish firm of machine
of ma tool makers who recently
completed on five-year modemiration project costing almost £500,000 are to supply a machine for a Swedish shipyard, Lubricant fe mainly pressure-It to for binding and forging fed but the wheelspindle and steel plats end ja believed to ba the petrie motor -bearings' are the largest of fin type in groeso packed pred need no fire world. The wst will be instaled new ther attention. The oll «fow by Gotaverken in shoin rate to the wheeliibad da udjusts filpyard near Gothenburg, S abis. Copsadi, is pumped to the Operated hydraulically, ohd grinding wheels at 85 gallons with an overall weight of 340 (247litros):n hulhute and there to the machine ectsista be a la ao independent supply to the long fanguine preow which on diamonde during the dressing handle steer plates 14 dn, Bhalch
d, nhà là Th11
The dem, High Smith Val" Billydrkülle contrala on, the ggw), Leid, who export shoul:40 grindinari machino Japo porvátna | Deront of their output, prod fryn low-proseura system and a wide varma Lög electrical equipment.
cabinets EPS.