Page Z
་།་
Weekly survey
THE CHINA MAIL, MONDAY, MARCH 6, · 1961,
of American economy
OPINION CHALLENGED
Did Kennedy
GOOD WEEK
paint too black FOR LONDON
a picture?
New York, Mar. 5.
Conservative elements in U.S. public opinion this past week again criticised the Kennedy
administration for painting an unnecessarily black picture of American economy,
to
But most available statistics so far steadily refuse
support the conservative businessman's contention that the long-expected rise in the economic level is about to start even without the help of various government measures.
cent below the record 1959 total of 14.131.
The share
STOCKS
Now York, Mar. 5. Bustling. two-way trade gayo stocks a good wook with Friday the star. buying day for the second wook running, giving prices their main boost. February figures showed
car
sales sharply better and good employment figures helped in- vestor readiness to buy, but dealers Judged that Wall
Street'a pattern
bigger influence.
proved the
The C18 million dip in the sterling aron's gold and dollar
Industrial stocks generally improved although not all the blue chips basked in the chest. Courtaulds, Rolls Unilever, Royce and Imperial Chemical moved lower on balance the week.
reserves, mainly caused by resurgence of condence in the dollar, was takon calmly. The dent in prives, but The leading spokesman of the
fall made Britain's overall economile out- conservative bushess wing. For-
lock still remains obscure, of the total U.S. tune Magazine, sounded the at- inch by saying that "There has ear market which foreign cars
to secure for them bec a growing gap in recent managed weeks between the state of the selves last year was 758 por American egonomy and what iscent, down from 10.17 per cent being
satd
in the year before. about Washington."
Where American cat manu- managed to facturers have stave off the threat of increas ing foreign imports by intro- ducing the "compacts." Ameri- can steel manufacturers now hope for a similar
achieve ment by improving quality and shortening delivery.
ACTY
10-
Far from being in the midst of descending spiral. The magazing said, actually busl- ness is showing the reverse. It
suggested that the covery, not far away, may be of "explosive" proportions.
President Kennedy, at his mid-week
press conference, by answered the criticism pointing to fucts and figures. So now the debate is whether the statistics, the majority of them compiled and published by the government, correctly assess the #luation.
CERTAIN DOUBT
There always has been cer- falu doubt about this but since there is no better way of met- suring the pulse of conomie life, analysts have had to keep an eye on the figures and base their judgment accordingly.
True, there were two indica- tors this past week which equid be read as showing the begin ning of an uptrend, One, steel production hold steady at 1,582,000 tons, unchanged from the week before but higher than In any previous week sluce last summer. This means there has been a slow Inprove- ment in steel orders despite the crippling cutbacks from the car industry.
Two, manufacturers In January reduced their inven- tories by $100 million, the smallest decrease since the stock reduction started in earnest last summer. This is being taken as a sign that the long slide In factory inven tories may be nearing an end. However, the developments in sleep still do not hide the fact that production of the metal so far this year is running almost 45 per cent below a year ago. And the slowing of the tempo did of inventory cutting stiil not override the fact that manu- facturing firms' new orders in January dropped another one per cent and sales another two.
UNEMPLOYMENT
On the
aver
The Financial Timas Indus- trial Index went up 4.8 points over the tive sessions, about half the rise being registered
SCIENCE AND ENGINEERING
SPECTACULAR US. big bank Value of highway
GAINS IN WALL STREET
New York, Mar. 5.
One leading analyst was reported last week to have described the stock market as something of a “panic on the upsido.“
Ho roferred, of course, lo last-minute bandwagon-hoppers stock who tearfully reversed early- | General Electile rose and misinformed-advice that stocks were much too high and a break was just around the
corner,
Now they wore buying, prices kept shooting up, volume was at the highest rate since 1933 and blood pressures mounted. The minor pauses separating spectacular coins some like gentlemenly ridiculous brawl.
were courtesies in a roughhouse
HEAVY ACTIVITY Judging by the rise in the
on Friday. The index ended at averages this past week, how- 331.3 against the higher ground, ever, investors were doing a but textiles, foods and building good job of hiding their worries. Dow Jones, in- According to
noted that steel users, pushing
Tho Leading oils moved narrowly points to cloro at 071.57. delivery foreign to end about level over rapki for
the rail average, Important to some wenkness-are
week. steel's greatest
technicians, lost 0.85 to 144.84 bypassing imported steel
Gold mining slocks managed and the utilities added 0.85 to favour of U.S.-made products, scattered gains mainly towards 108.74.
Iron Age Magazine last week materials staged more modestustrial Issues rose a good 16.07
In
advances.
¦
the end of the week under cape ¦ influencos, but the market never
Activity shot up to 27,012,908 shares from 20,000,010 during week and the previous 4-day DOLLAR STOCKS
compared with only 10,230,005 Dollar stocks were mainly in last year at this time. Tuesday's the plus exiuin paced by U.S. 5,834,350 shares volume broke a Steel 7 points better across the 7-year record and the ticker week while
Bethlehem gained tape ran late for 31⁄2 hours, 35, and International Nickelsonce as much as 10 minutes be- jumped 0%1⁄2 points.
hind floor transactions.
Iron Age admitted steel im- ports are still a potent threat, but claimed many consumers | really attracted laterest. are losing interest in them, listed five reasons for this development: The need to get faster delivery, the narrowing price differential; interruptions of foreign deliveries because of strikes and bad weather affect
transportation; better ing quality
production; of U.S. more dependable servicing and replacement policy on the part of U.S. steel manufacturers.
But the magazine said, the key to the situation is fast du livery in view of the very low inventory prevalling in the U.S. at present.-UTI.
NEW YORK
COTTON MARKET
New York, Mar. 5. Cotton futuros showed an avertone of steadiness this
week when past prices backed and filled Gyor narrow limits in bo- low dealings.
the list At Friday's close ruled three lower to 14 points higher or off 15 cents to up 70 cents bale compared with the preceding week
Prompt absorption of the de- The remaining interest in March liverles had a steadying effect.
at the end of the period approx!- mated 11.800 bales.
gloomy side of the ledger, unemployment at mid-
Over Operations were given
evon-up in the spot February was calculated to have mainly fo reached 5.8 million, four times March delivery, anticipating its the normal increase for this expiration on March 14. Addi- time of the year from the mid- tional March tenders during the January Agures. The calcula-week brought the total to date tion was based on government up to 14,000 bates.
that 3,300,000 figures showing workers have been drawing unemployment compensation on of February 15,
Ironically, what should bring pleasure to the consumer, the fact that living costs declined in January, should also rightly in be clasained
38 gloomy news, as living costs in the past years have invariably stopped their steady climb whenever economy was alow.
gains
Foreign bonds proved a Jack lustre affair but Germans firmed and Greeks improved Friday to end higher on balance on hopes that Greece will meet her pre-war debt were quite strong. more on commultiments.
hopes than en concrote Gilt-edged met demand at Production reported for
latest period picked up hardly a pound from the week before.
Among the industrials, were fairly well distributed, es- pecially among the electronics, low-priced speculations and so- called eyellesl
end! uf the week wip ing uut varty weakness. The bonds were helped by the prompt and successful placing of
85 million steel prior charges by the government.
Rubbers met good demand in ned-week but the movement Jost steam while quieter lous ended about even. UTI
Exchange rates
depositor
in India
New Delhi, Mar. 6.
The United States is ono of
Com Products, splitting the
74 in April, gained
3% and Washinghouse 2% after a big investment firm sald it didn't! plan to unload its shares in these two hard-pressed com- panies.
the biggest bank deposi-
tors in India.
According to a report given
Parliament by Finance Minister
proceeds from the
engineering
scholarship raised
London, Mar. 5.
Mr Morarji Domi, the United A United Kingdom engineering firm is to Stutes
has deposited 4,700 million) o million rupees (about US$1,000 raise from £300 to £500 the value of.
the post-graduate scholarship in High- way Engineering, which it awards an- nually, and which is open to applicants from all over the world.
sale of agricultural products under US, public law 480.
is
Of the tutal, approximately
million $700
In rupees- available to India as counter- part funds for Jopris atid grants, The remainder is used by the American government for Embassy operations In India,
Desal's report said that as of December 31, India has used somo 090 million rupees or ap- itproximately $138 million on
agroed projects-UPI.
Eastman Kodak picked up 10 points
following news planned to market a new, fast alm.
Studebaker Packard, which
Smith-Coronu called on 135. was strong In the week on nows that typewriter sales were way Текая ahead of its compotitors. Instruments, on the other end of the price scale, dropped 7% fol- lowing a report that its March quarter was "uncertain."
acquired a small chemical firm,
The market breakdown show- ed 1,402 stocks crossing the tape including 705 which rose, 521 140 which which dropped and did not change-UPI.
BANK OF ENGLAND STATEMENT
London, Mar. 3. The Bank of England state- ment for the weet ended March 1, roads as follows:
Notes in cirmalation
Publie deposits Private deposits Government securities Other securities Receipts Rallo
€2,315,374,472
11,105,30
47.054,811
13
-UPI.
HONGKONG
STOCK EXCHANGE
by
Our Own Correspondent
Sales
the
The scholarship,
tenable at Birmingham University School of Highway Engineering, was introduced four years ngo in enable overseas highway en- gineers to avail of modern re- search facilities in the United Kingdom.
To date, scholarship winners have come from India, South Africa and, last year, New Zealand.
A spokesman for the donors of the scholarship, Aveling- Barford Ltd., of Grantham, said that the increase in its value
Business done at the Hong-will take immediate effect and 321,779241 kong Stock Exchange this morn will apply to the award for 427,395,149 ing amounted to approximately the twelve months course com- 30,015,822 | 30,500,000, Noon quotations and mencing October, 1961, applica-
the morning's transactions:
ilans for which must be ro- ceived by the company's Train- Blaren Buyers Bellers
ing Officer no later than May 31. TUC Bank
The course provides compre- hensive facilities Гог the specialised study, both theoreti cal
and practical, of the fundamentals and techniques
Revaluation of
German mark
explained
is
Bonn, Mar. 5.
Issues. Steels West Germany's economic leaders made it plain today that their main reason for upvaluing the mark was the need to put a damper on the nation's runaway boom.
news. the
Molors were also vory firm. especially Ford, despite
хо
Lombard
Wharf Taikoo Dock
Wheelock ..
1820
RDK
20 1000 130 1000 10 1005
GO 1000
21900
40 1890
710 60 30 1000 300
70 97% 2000 1 1811
G00 or 70
3407256
1500 68 77
of Highway Engineering in the light of modern research,
It is open to engineers hold- ing a degree of a recognised 14.50 14.39 2000 14.00 University, or equivalent pro- 2000 e 14.10fessional qualifications in Civil,
ITK Docke
144 148
But they admitted that the Revaluation means a setback re-choice of the weapon of revalua- for the German trade unions ports that February production tion wus dictated by the need who have a round of wage in-
heavily sagge
to keep pro- to ease pressure on the U.S. crease demands in prospect. duction in lino with a million-dollar and help rectify the They will inevitably be asked car inventory. Buliding stocks, the serious structural imbalance to moderato their demands if so strong in recent weeks, were in, international payments.
the cost of living is held down. Provident clipped A bit via profil- Roaction abroad to the Ger-
PROSPERITY taking.
man decision to increase the
chubby- Professor Erhard, mark's value by 4.75 percent International Silver rose 14% from tomorow has concentrated faced, puffing at his cterial to the Ger- elgar, symbolises Businers was alon in the local and Marshall field rose 10% on on the international aspect of unificia! exchange market
Uus stock split news. Newport News the move.
man nation their remarkable moraing at the following rates:- VS. dollar (per $11
5.752 Shipbuilding fell 43% when it re- But the economics 15.0 ported that 1961 carnings aren't Professor Sterling notes (per £1). Aumilo nates (per
much im-architect expected Indonesian Dipjan (per 10853 Siam Ugala (er 1905
provement despite record order (nomic miracle" and the 033922 Singapore (Straits)
Tu backlogs,
behind revaluation, today un- phasised his alm in strengthen- ing the purchasing power of the mark and stabilising price levels in Germany.
13.75 3.10
to show
AGREED MERCHANT RATES,
NEW LIST
The following is a new list of Agreed Merchant Rutes which came into effect on Saturday:
MAXIMUM BELLING
Sterling
Sterling
MINIMUM DUYING
1/2 7/8
1/3 31/33 T.T.
$/3
1/3 3/22
1/3 5/32
With confd.L/Credit Without L/Credit
1/3 1/32 O.D,*
3/37/3
2/3 5/16
1/3 1/8 30 days 1/3 7/34
Co days 1/3 9/32 90 days 1/2 3/0 J20 day Indirect Sterling On Demand But on Europe 1/32nd higher thian London Rate).
1/2 7/3
1/4 3/32 1/3 5/31
NEW HIGH
Em & South Africa & Adenj The certilleated stuck rose to
Sterling the season. now high for
1/2 7/3 reaching 38,175 bales on Friday (West Africa, West Indies
South America & Pij compared with 53,578 bules a Rupees (India) week ago. The current stock the includes 40,344 baies .certißented
and 6,831 bales awaiting 2.
February sales of newspection. automobiles were
also disap
Elsewhere, spot interest placed
O.D. if under L/Credit
O.D. without 1/Credit
3/20 up every 30 days 1/3 3/32 1/3 11/3 0.0, without· L/Credit
3/32
up every 30 Jaya
O.D. if under L/Credit
$29/10
83 5/10 13 1/2
pointing after what seemed for some new hedges in July and nupees (Persian Gult Ports) abrlof spell to be in good start. the early new, crop months.
Preliminary February
reporta showed | However, new commission house Rupees (Prylum) car sales dropped and trade buying absorbed the i 300,000 unlik below January offerings.
The peak inventory of 1,050,000
Purchases from
government
Rupees (Paklutors)
FCW unsold cors was slow catalogues have been heavy and
by being worked pft but less than 1,000,000 bales of the
03 15/16
814 3/3
04 13/10
O.D."
720 days*
Go durys
93 days*
BILLS ON ADEN:
If under L/C: 1/4 higher Without 1/C1 3/8 higher 3/10 higher than the rate for il
83 7/10
TIT
on Aden.
80 1/8
BO 1/6
B3 7/10
O.D.
63 7/9
7 & 30 daya
34 5/10
60 dayn
64 3/1
90 days
02 1/2
113 6/3
O.D.
DA 1/10
30 days
4 1/
00 days
83 5/10
TT.
D3 1/2
Q.D.
15/10
7 & 30 days
DA 3/8
dayn
00 day
O.D.
00 days
TT.
O.D.
more because of severe produc-1900 crops "A" plan purchases kyats (Burma: Rangoon) 88 9/15
romain in Commodity Credit Corporation hands, informed source's estimated.
tion cutbacks rather than an increased sales tempo. And car dealers complained their predit Inorgin has plunged to just about one half of one per cent of a car's sales price an average $22 per new unit seld, before tax. Not since the 1058 recession bas tho car dealer profit been so low.
Wore
over 3,000,000 Malayan Dellars
52 15/10
Government carry over stocks
slightly bales and the desirable grades are diminishing. Mills, merchanta and spot Interests have
17 5/16 becn U.S. Dollar buying up stocks from govern-
(Firm calendar month tree of ponally thereafter 1/15 down ment holdings and only a small for each calendar months) percentage current purchases
Canadian Dollars is being hedged.
New crop futures, over the 34 Australian Pounds per cent level, appear to be dis- 1960 Agures counting the minimum
support New Zealand Pounds weck
CAR IMPORTS
Economic analysts noted with interest, some even with patis- Inetion, the final published this past
for level of 33.04 cents a pound, plus Bouth African Rand car imports. They merely con- carrying charges of about 20 Swiss Francs firmed a trend that has been points à month and a small part Belgian France building up for the post your of the cost of delivering cotton W. German Deutschemarke 71 10/10 and had nothing seriously to do fon contract, other with the recession, Rather, they concluded.—UPI, were a sign of the slowly im-
proving position of the United
Slates ments.
In International
pay
A total of 408/700 imported card were sold in the U.9. in 1990, 116,348 units of 18.78 per
technielang
Unit trust
First Hongkong Fund. Buyer Price: $1.30. Seller Price: $1.39.
13.12
#4 13/10
63 7/10
03 7/1
041/0
17 9/10
17 076
TT.
selwyr
17 11/16 3) daya
17 23/33
1/8 7/8
Q,D.
minister. Prosperity. Luchwig Erhard, of Germany's
and Mr
2000 24.00
2000
1000 15
2000 15
14.00 Highway, Structural or Mun!TM
cipal Engineering, or stlled pro- (cssion, together with at least three years' practical experience of highway construction...
2000 ( 15.10
2000 + 15
3000
1190
<DO
9000
15- 1440
2000 14.0
103 or 145 400 140 EDO gì 101 300 151 200 149 200148
400 149
600
28.30 28.40
145 500 28.20
300 4 22.40
300 3 2014 1200 20.70 2300 $23,00
0000 VF 201
1000 20.40
1500 20.30
31
52 500 e 52!!
1000 or 52
K Land..
80% 8911
400 & 891
Observers belleve Hotel.. his revaluation polley will lose him little of the people's cor- } eco-sdence.
'ELECTIONS' The
at to- unspoken word day's press conference where Erhard Professor
the Finance Minister,
Franz Etzel, officially announced the revoluation Wan "elections." Germany has general elections this autumn.
Students who achieve satis- factory results are awarded the degree "Master of Science 1:1 Highway Engineering" if they
have proviously graduated,
otherwise a "Diploma in Gra- duate Studies."LPS.
Propulsion machinery
500 125 An ardor for the 6,000 s.h.p. twin scrow, dictol-
650 $115
200 o B
800 or Un 1300 G
400 00
Yaumati
700 v BO 1700 L 120
New
131
134
JI
To have accepted Profesor with the advice Erhard's
and the arunce fedcial bank
the ministry in agreement Chancellor,
Dr
Konrad Adenauer whil
been have assured that he ond his Christian democrat party will face
in the electorate
the with
nutamin
HK Tram. 3515 35%
undiminished ch. Light. 32 321⁄4 popularity, observers here fcol. The Chancellor has a sharp cye
internal
political scene. on the
Walle Professor Erhard and Revaluation Is expected to Mr Eizel underlined the home target of revaluation, they cut profits of German exporters
did not attempt to diminish -and is thus unpopular with
its world importance, the Ruhr Industrialists. But it channel more German will
Professor Erhard &inted the goods on to the homo market move had not been made under at lower prices.
pressure from the American Imports from abroad will be or any other government," it nimost five percent cheaper for was the best way af killing two
with one stone: German purchasers. This will birds provide hotter competition for trolling the German boom and | home-produced
The taking account of international foods.
He sald Germany!
con-
expected result: A steady-needs.
stood by ing, perhaps a drop, in prices. A wly move in an election year, ali her nannat commitments, in the opinion of many political |In particular
defence соп- observers here.
tributions and the promise to German tourists-millions o President Kennedy to shoulder
burden. abrond every year--will now some of the American
little more for their in aid to underdeveloped coun-
tries-Reuter.
got n money.
Official exchange for
German
mark
Bonn, Mar. 5.
Those official exchango rates for the West German mark
will go into affect today.
100 Iceland crowns
1000 Italian Iro
11K Elac.
Хр
30%
HK Tol.
100 ** 134 500 134
2007 133
1000
3300
1000
4000 + 32A
מלה!
700 4437
2000
307
4715 2000 40%
5000 EF ST 1000 4734
500 69 T
2000 $ 4714
500 6 67
45
500
45
*
800 $43
electric
propulsion
stallation for the
in-
now
cable-loying ship to bo built by Cammell Lairds,
for Birkenhead,
Cablo
and Wireless, has been awarded to English Elec- tric. It is worth over £300,000.
The machinery will be tho most powerful to be installed
a British-bull cable ship.
It will consist of four B-cylinder main engines, driving direct
Dranged current generators zerles with the two 3,000 sh.p. 100-volt 140 r.p.m. main motors. The machinery will be Con- trolled from the bridge and other elations, Auxiliary power Is to be applied by two 500 W generators, tandem driven. from the moun engines, and two 500 kW auxiliary diesel driven generators.
English Electrio сал accont undivided responsibility for the manufacture of this complete propulsion Installation, and will only obtain minor ftema of Duxiliary equipment from out- side its organisation.
This
is the second high- powered diesel electric propuls | Bion installation placed with the 500 42 4435 Company recently, Il received the order for the 0,000 8,h,p. equipment from the New Zen- Innd Government year.-LPS,
(N) 44%
Cement XD 095
7 2350
1000
Dairy
Watson Allied Inv..
307%
40
30
000
71
71
500 EF 7012
Textile
0.40 1.60 800
1000
2000 033 1000 31
1000 & 8.00
10000 gr 9.85
2000 6 0.60
Ferry
fast
5000 i 2.05
10000 # 2.355
10000 Gr 2.523 5000 kr 2.59 22000 or 3.545
6000 er 21
1000 10
20000 # 21S 49 1000 e 49
300 64 18
100 6:20.80 079 31
400 a 21 DOS 31.40
Lone. Craw
4000
0.55
J
500
2502
JDC & TE
13000
LAV. X.D. 10.30
14 0000 67
Nanyang 13.00
Rubber Truet
X.D. Humphrey Really......
7.20 13 1606 3 120.
11000 0.3
A20 8.38 20.40 20.70
500 GM 2.4 2.025 5000 2040 14000 sa 216
0 day
177/0
5 days
17 1/10
17 AVIO
Parliy Mate
Lowest
· Inkhost
Rate
Rato
T.T.
17 3/0
1 US$
4.
3.07
4.09
1/0 1/3
100 Relgion franks
0.
7.8800
01200
U.D.
1/2 27/33
1/3 3/10
100 Danish kronorn
57.9111
T.T.
$7.0007
54.7070
1/72 1/4 O.D.
100 French now franes
Amal. Trub.
81.0199
70.6130
82.2149
*
12.30
100 Drachmas
13.3393
10.1078
13.8000
74 13/10
£1
11.20
11.0306
1:13840
001
10.5203 104105
10.4073
0.3000 84948. 003.650
100.8000
•16,3046
60.1330 15.1827
50.6400
30.00200
10.0130
10.60020 14/1602
77.9214
R1.4742
70.1031: 09.2135
78.400
93.0300
0.0007
O
9.7CTI
44.4414
43.8971-
444 ÁR
for
N.B.The Sterling Belling rate shown above applies only to delivery up to two months forward. & out of 1/35 must be exacted for endl; period of iron months beyond that. Biving raten Sterling Telegraphile Transfers and Bala may not be quoted boller than for delivery ready up to two months forward and thereafter at 1/3 of a penny higher for a further three months forward. N.D. Buying rates, for sterling bills on UK. endi Europe quotect above are air-mail rater, se are not applicable whiste initrues tlune ore that payment for agceptance" inay await arrival of carrying mermer,
160 Holland guilders
100 Norwegian kronera 100 Austrian mhillings 100 Portuguese oscudos 100 Swedish kronera
100 Swiss franca 100 thanlah pesetas 100 Türitish pounds
0.40 103.2632
GO.
Gilman
XD
2000.00
43000 61 39.65
50000 60 2.0RS :
1500
4815
31.40
1000 25 21.70
2300 & 21%
2000
4.70
2000
5000 9 4.85
2000 0 4.90
14
-10
230
34.50
Aniay
Tover $9,599.999-
15000 43 1.08)| Underwriters
9000 69 1.020 | 101: Toy. 10000 in 8.00 Alar Ferry 170000 A 2,975 | Topa