THE CHINA MAIL, MONDAY, MARCH 13, 1961.
Weekly survey of American econom
RECESSION EASES OFF
But recovery · probably
will be slow.
New York, March, 10. The recession is showing signs of easing off, but recovery probably will be slow and improvement in the unemployment pic- ture will be even slower.
Inventory liquidation
is rapidly approaching rock bottom, prefacing an early upturn in raw materials and primary production, but all sectors are expected to tread wurily for some time.
Dr Walter Heller, Chairman of President Kennedy's council of economic advisers, said this past week that the "principal prospects for early expansion of continued demand Hek in the upward trend in government purchases--Federal, state and Tucal-and incrensen in con- sumer spending with the nid of Kovernment income mainten-
hste programmes,"
of
This philosophy is the basis
Kennedy's two-pronged pump-priming policy: Mor federal spending and measures to help the needy.
CONSUMER SPENDING
Consumer
The industry still has a near- record inventory of more than and a million cars, however,
at low level, production is Both Chevrolet and Studebaker- Packard claim to foreste an carly, break-through.
Ford and General Motors announced production cut. backs Idling another 57,800 workers this past week and next.
time, At the same
and Chrysler
Studebaker- Packard resumed production this past week after one-week shut-downs to balance stocks and sales.
Truck sales in recent weeks is have shown signs of improve- spending stil In the doldrums, but could risement and could lead the entire Incentive. Industry out of the doldrums. with Sharply
any
this The "sick-man" of American Kennedy's announcement Past week that $600 million industry. Railroads cast of the are being forced, more federal contracts for goods Mississippi
of thei reluctantly, to and services will be placed in some
to shippers the same the first half of 1901 could pro- extend
fort of credits allowed by the vide such an Incentive,
truckers, This is
first their Treasury Sccrotury C. credit extension in 30 years, and Douglas Dillon
foresees a
will hit some companies definite upswing in the second hard by cutting deeply into their quarter of the your. Federal working cash balances,
on this though the credits only range budgeting in based premise, though some govern-
from four days in a week. u major mental experts say
One scution of industry where upswing will not take placo-
inventories before mid-year.
are increasing
.
Latest
worried. Refinery
very
even
is
operations
are increasing regularly, and claim the high stocks critics
HONGKONG STOCK EXCHANGE
nur Own Correspondenting
Business done at the Hong- Stock. Exchange this morning amounted to approxi-
kong mately $5,400,000. Noon quota- |lans:
tions and the morning's' transac-
Bharos Buyers Sellers IIK Bank
Ex. Div... 1915 1925
Baten
40 6 1000 20 @ 1030
41 1035
40 1930 $1935 71930 10 1935 746+ 1930 19 1920
Whorl
Lombard Talkea Duck
200
50
200
333
70
00 400
815
400
EU
400
400 EQ
1915
2000
HK Gos .. 23.30 23.00
Wheelock
14.00
15
Dock
140 150
Provident IK Hotel
XD
JLC Land
Ex. All
784
Yaumn!!
.
:
2420
German revaluation has not caused a reflow into dollars
London, Mar. 12.
The wrong dose of the right medicine duly turns out to be even worse than the wrong medi- cines. Any ideas that Germany's five per cent revaluation would cause a reflow into dollars and sterling have been ludicrously falsified.
The dollar never rose even to
its reduced par in Germany, let alone to the new ceiling at which the Bundesbank would be uble to unload a rifle of Its dollar honed.
Weekly
SCIENCE AND ENGINEERING
Induction motor
cotton has five speeds review and no gearbox
New York, March 12. Cotton futures tradors
found the line of cost
resistance on the upsido this post week. Prompi absorption of tenders against the expiring March de- livery, and a tightening situation in the south; generated the main price-lifting power.
Establishing now seasonal highs for all deliveries
spoi
London, March 12.
Members of the staff of the Electrical
Engineering Department of Manchester University, have designed what is bo- lieved to be the world's first five-speed /induction motor without a gearbox.
Induction motors
normally ( The basis of the new machino
nected in various ways and the
For several years both coun- Friday, the market closed the tries have had for less dynam-week with.net paths of 24 to 40 work at a standard number of is an arrangement of colls con points, or $1.20 to $2.30 a bale rotations a minute, and when a ism than Germany and the other higher than the preceding week reduction of speed is required speeds are obtained by switch- surplus countries. A higher bank rate would
and the widest gain for any as customary in the machineing the colls over. give Britain
week so far in 1901,
tool industry-It is necessary to the use a gearbox. The ready reception of
This, in furn, March lenders, and a moderate, means proportional reduction in but persistent, commission efficiency. house and trade demand for new crop deliveries, dominated market thinking.
another internal restraint.
On the Brst business day after The revaluations, which were the revaluation Switzerland re- supposed to be helpful to the ceived more dollars than on any dollar and pound and injurious single day on record, not exclud-to gold, have so far worked the ing any day the Congo ex-other way round. pioslon or of sterling's various
500 v 24.10 1000 24 3500 23.00 crises. 1500* 23.00 500 15.49 4000 r 15.20 500 o 15.33 2000 or 15.20 0000 or 15.10 1000 14.99||
1800 ks 102 1060 27 101
400 150 500 149 .28.20 38.76 2500 € 28.00
401% 200491
70 2000 20 400 30 200 7934 500 TU 1000 69 1015 1000 € 70
200 70%
144
3-40
300 6 147
New
137
130
HK Tram. could force price cuts in gaso- line and other refined products Ch. Light if the refinery runs are not our- talled.
The labour situation remainsail, and this has some all people grave and anomalous. figures for February show re- cord unemployment and employ ment at the same time, due to large influx of new job Employment hit 64,- seekers. 655,500 at the end of February,
record for the month, but un
sharply employment
10 5,705,000-6.3 per cent of the hbour force, seasonally adjust- ed-highest recorded since be- fore World War 11.
rose
Labour Secretary Arthur J. Goldberg used the figures to press for early congressional up- proval of Kennedy's anti-reces sion programme, He said there is "nu question that we will have o upturn in the economy in April," but wamed that un- employment is likely to in-
erease.
This gloomy outlook was sup; ported by the Harris Trust and Savings Bank, which reported in its monily "barometer of business" that unemployment is likely to increase and remain
WORLD SCENE
On the international sene, Electrle the outdow gold has dropped dramatically. and the fore- warned Kennedy administration should be able to halt any fur- ther trends in this direction.
The gold run also will be helpest by the revaluation of the West
Germun Deutschemark, and to a lesser extent by that of the Dutch gulider
400 148 500 148 300 6:47
400 G 145 100 144 200 140 4001 60 142 200 € 140
100 à 140
1100 14L
2200 141
450 & 140.
700 130
300 * 130
000137
50 138
2006 137
38
100 630
59 60 3734
1122
32
300 or 3214
2000 32
500 32
1300 33
2500 or 31
230
3891 87
F
Telephone
40 101%
G.1. Coment XD arm oficials Dairy Farm
42 4234
Allied Inv. 12.90
While government claimed the D-mark could have been revalued more drastically, Watson they welcome the move as one which should help correct the imbalance in International pay- ments and slow the flow of short-term funds Lo Germany, The Federal Reserve Bank of
emphasised the simultaneous reduction of dis-
high for at least six months,New York despite any business recovery.
Textile ...
It pointed out that unemploy count rates In West Germany. It Manyang
ment normally lags behind a re- covery in production
sold in 15 March review, that | A. Rubber. because with the
narrowing of the companies hesitate to hire more differential between
German workers until they are sure
and 'foreign short-term rates, demand is definitely expanding the German Federal Bank re-
duced the special Inducement Humphreys PRODUCTIVITY
report it has been offering to stimulate
bank commercial
production, Realty combined with reduced buoy-
Many organisations that productivity has improved with the rise in unemployment, but no figures are available,
Mild weather and a probable brisk Easter trade may help the job situation this month, with an upturn in construction, farm- ing and trade siphoning olt some of the hard-core, long- term unemployed,
President David Mcdonald of the steelworkers union suggest- ed to a house inbour sub-com- mittee that Congress should seriously consider lowering the
ancy of the European business community, is hitting Canadian business hard. Lite unemploy ment in the U.
7.30
R Trust XD 0.30
2,70
מא
the Canadian economy tags behind any im provement in V. 9. business.
The Bank of Nova Scotla Star Forry reported that the Immediate Int'l Invest Prospects for Canadian business Giman are not very bright.
XD
Underwritera
It warned that "for the next year or so, serious and concertant attention will have to be con- centrated on stimulating odded 40-hour week 32 hours as a production and employment." long-term solution to unemploy-
The rate of unemployment in ment. He claimed that the steel Canada, perennially pingued by Industry, by working at a capa a high proportion of seasonal elby
produce te esti- employment, ta could
even higher | iD & TE mated 100 million tons needed than that of the US. The Bank Inv. this year "la seven or eight of Nova Scotia saw only minor Craw months, and could close com- | bright spots in the gloomy Vibre pletely for the rest of the year." future, such as increased air
Latest inventory figures show craft production and increased retailers trimmed Inventories' in | exports of grains to eastern January by $900 million, much Europe and Communist China, of it by car dealers. Present Indications show a continued in- ventory reduction, though on a smaller scale.
UPL
RECORD. PROFITS
Wing On
13
300 6 312: 1000
100372
5000
700 3474
320m
120 m2
1500
200
B000 2000 @ 13.20
13.20
3000 13.10 1000 19 13.10 2000 13
On the second day, Mr Dou- glas Dillon announced that the dollar is strong again, whereupon It fell to its new floor in Ger- many and the Bundesbank again had to take in dollars, merely getting them. five. per cent cheaper than before.
On the third day (March 8) the Bundesbanit had to take $25 million. After the Bundesbanks closed, dollars in both Hamburg and New York were offered at below the new floor by people who could not wait for the Bundesbank to reopen.
On the fourth day (March 8) despile sterling's sharp rally on devaluation Chancellor's the
dental, the dollar remained on Hs floor in Germany, France and Switzerland and fell to well below its new pat in Holland.
FOR STERLING
In theory they demonstrated that, for once, two. paper cur- rencies could be better than gold, that wrong exchange rates can be corrected by lowering the gold price. on the one side instead of raising it on the other, and that on a revaluation of the surplus currency instead of a devaluatlon of the defolt currency, there is no advantage in holding gold instead of dollars.
on
The only part of its reserves which the Bundesbarik avolds a serious book loss is its small holding of guilders.
to hold than less,
•
the to take
Buying in deferred deliveries pointed up reports of a tighten- ing spot situation in the south. and expectations that higher sipport base. effect when the new erop sen- son begin on August 1, will mean still higher prices around harvest time in the autumn.
Government holdings con- tinued to dwindle. Traders CS- timated around 500,000 bales were moved out of government hands into commercial chan- nels in the past week under various selling programmes.
Buyers thought current prices
A
Rubber marker for road verges
London, March 12. Belfast firm, hitherto known as specialists in
wrought-iron work, have invented a device - which may come into wide use in tho drive to keep death off the roads.
The Arm have already ob- tained a provisional patent for the device, and tests have been
"Alter research and trials we shall have come to the end of the line as far as thought la concerned and we are now in the process of making six pro- totypes," "caid a senior member of the staff.
The now unit, regarded as Lone of the most significant ad- vances in the electric motor field in modern times, will be much cheaper to produce and will be casier to maintain and operate.
A large British electrical concern is at present negotiat- Ing with the National Research and Development Corporation, through which developments at the university are patented, for the right to manufacture the motor.
It was at Manchester Uni versity's Electrical Engineering Department that Britain's first digital computer was developed ways yet dis--LPS.
It to be one of the safest and most effective
*
The originality of the new New fire protection
In practice, that book láss were "cheap" when compared enried out which have shown miny, for several reasons, in- [with the high minimum sup- eline several countries includ-port price of 33.04 cents Ing Germany
more pound. The average price for covered of clearly marking road gold rather
The middling inch cotton at the 14
verges, In the south, at Bundesbank's unusual pur spot markets
was around 31 chase of $19 million of gold in the weekend,
device lies in the fact that I is the closing days of February cents a pound.
were doa rubber or neaprene post, 18 Old crop positions may have been a warning
minated by final #hot.
evening-up inches by two feet long, rein- For sterling, so for the do
which goes off the forced at the base for fixing in As was pointed out for Gern March valuation denial, the first that has been necessary
since the many long ago, abstention from Board on Tuesday. Tolal tend- concrete and cored with a steel crs against March SU far spiral spring. To the top is gold casts doubt on a country's amount to 180 contracts. The fixed reflecting foil which is 1957 crisis, has amply sufficed, without needing to be reinfore-evaluation denials, because the net open position at the week- visible even in heavy fog or
book loss from révaluation 15 eat had been whittled down to rain. ed by a higher bank rate,
If any renewed. pressure on automatic en gold but is avoid around 0,500 bales.
The rubber marker has several sterling did necessitate thated on any holdings of currencies.
The certificated stock on Fri-advantages over the more usual the revaluation, day reached 55,536 bales, plus concrete post. that Join in logical reinforcement, It would
It will cost less case.--- 3,447
awaiting inspec- but its greatest virtue is that in
merely illustrate that the most guilders in Germany's serious impact of the interna- China Mall Special. tional disequilibriuen is not so
much on the reserves, or the foreign exchanges
as on the
British and American internal economics.
Rise in China exports to Malaya
By Gordon Hung
bales
tion.-UPI.
MARK REVALUATION
BOOSTS LONDON INDUSTRIAL STOCKS
London, Mar. 12. . . Revaluation of the German and Dutch currencies boosted industrial stocks sharply on Monday when they were anyway, set for a rise and gave the list its best upward movement for nearly a year.
the event of a car or cyde striking it will give at once without causing. dampge and will spring back into position Immediately.
development
Asbestos
ships board for the
of protection aluminium decks against firo has recently under- in gone successful tests the U.K. The ·firm, Turners Asbestos Cement
·to Co. Ltd., is believed be the first company in the world to achieve this.
out
their
minkites the 600
A company offelal says it is will al- A number of the posts have important because it
low ship-builders to use aluml- already been installed on o stretch of new road in Northern thum decke members in
mild steel.. Ireland with the approval of the vessels instead of locat authority. Government thus
mich lighter Kiving a
Independent have been superstructure. and Police experts Impressed by the safety and cost tests on The new method have
carried factors of the device and will been
by the be observing results on the ex- UK's Department of Industrial peitimental section.
end Scientie Research. The firm are manufacturers of Sections of aluminium deck gates, fencing, etc., on many of protected by the new method the now reads which are being were heated from below for an constructed in Northern Ireland hour. After five and it was in this way that their temperature had risen to interest in the new safety post degrees centigrade. It col→ was aroused. It was found that tinued to increase until it was the laying of flush concrete
well over 100 degrees centi- kerbs made
difficult for grade buí, at the end of the motorists in heavy rain or fog hour, the temperature on the The theory backing the leap | 152/0. Tim slayed Armly on to see where road ended and
upper surface of the deck had was that Brilish exports woulti liigher ground.
while
coppers verge began.
only risen to a little more than derive a lift from dearer Gereked out a series of small gains
Korb level markers tended to 100 degrees centigrade: Suc- man products. But after the over the week.
become obscured, while con- cessful completion of this test intilul phase the reckoning was Leading
higher crelo posts carried danger. for means that the material has
The rubber post achieved the that the small scale of the re-paced by Shell 4/- up to 150/6.1oad users.
standartis fold lave developed, 'down in the International valuations was unilkely to prove British Petroleum and Burmah which they
shared smallor rises.
steel spring-cored to prevent Convention for the Safety of much a boom.
Rubbers turned quiet towards vandalism, may well prove on Life at Sen for The Financial Times Indus-
fire resleting the week and teas | important and safe development. divisions on passenger chips.— trial Intex jumped 6.8 points en the end
--LPS Chinese exports to the two Monday and afterwards
lost showed little change.--UPI.
LPS. territories, which consisted on 0.5 to end the week 6.3 mainly of foodstufTM, went up points higher at 337.5 and with- 2000 2775 from M$166.5 million in 1959 in good reach of the 842.9 high
to M$175 million in 1900;
2000 6 12,00 1000 13
11,00 3000 € 17
1000+8.95 1000 0.90 1000 g 11.20 2.45 3000 se 7.20
2000 + 24
2000 y 7.1b
6000 * 7.19 1000 7 2000 7.10 1000
1.45
2:6.00 170 28.30 232 48000 4 200 15000 7 2.00 10000 68 2.175
1000 12.00
5000 234
0000 234
10000 + 2,725
2000 2.70 10000 A 2,224
210 214
100214
100 212
15
***
Singapore (By Airmail). Communist China increased her exports to the Feder tion and. Singapore last year, despite economic difficulties caused by the droughts which have no peatedly hit the mainland for the past two years.
This is only M$21 million Point. The low is 293.4.
Most blue chips shared the below the record of M$190
Chemical | buoyancy, 'Imperial million in 1958. Chinese ex were 1/8 better at 71/1, Bri ports to the two states were fish American 1000 0.15
Tob:eco 2/4/2 substantially reduced in 1958 at 10/15. following Red China's kuspun- Electrical equipments were sion of credit faellules to local good en published results and merchante.
Bourishing order books..
3.50 10000 # NAD
G000 E 3.40D
2000 5,40 4000 3.40 DOOD on 0.45
4000 de B40
3000 ve 1,30
1000
BED
2000 in 0.15
G000
3.10
4000 5
15.40
20.20
2211
16
#2.70
Agreed merchant
rates
Swiss Francs maximum sell- ing 74-5/10,
Belgian Francs maximum selling 854..
Exchange rates
Bulness was done in, the local policia excinge
market
this
The Inland Steel Company.. for one, feels that steel mill customers have finished their inventory liquidation, and there
New York, March 12 National Cash Register Cor is "good reason to Believe that demand will boon Improve. Inparation reported record proßte common Willy many steel pro-inst year of $20,024,000 or $2.52 ducers, however, Inland report- per rliare. This was an increase ed continuing lower profils, and of ive per cent over the pro-morning at the following rates:-
U.S. dollar (pee #1) hinted that price increases are vious peak of $18,070,000 or sterling holes (per 1) in the offing.
$2.40 per share achieved in 1980. Australian noles (per £1) The car industry hopes for n Total sales, both foreign and Indonesian Rupiah (per 100).... modest upturn.' ín sates this domesile, hit a new high of Siam liels (per 100)
"Aingipore (Biruita) month, following a highly wel- $467,832,000 an increase of nine como late Febrtiary spurt in now per cent from the previous anu truckc deliverios. your's total of $419,004,000, the February asics totailed: 300;277: former record,
and this month--with- three Domestic sales rose to $209,- extra working days-could see 028,000 last year against $251,-| then kiso to litile short of | 500,000 in 1959, China -- Mail 400,000.
Special,
20.20
01.777
10.04
12.03
20
181
Unit trust
First Hongkong fund:
Last year China renewed her trade drive in the local market by resuming her credit facilities by shipping or In some cases
goods on, a consignment
her basin,
year were
MP-
|
HONGKONG BANK
Sleola, breweries, shipping chemicals stayed shares, and on. higher ground but engineer. Ing equities receded mid-week |vélere staging a slight upturn (on Friday. · Stores and textiles
lost ground.
RICE Large increases of ber ports Into the Federation and Singapore last
Hongkong and Shirghat Bank corded for canned meat, fresh gained 34 points over the five fish, rice, dereali, vegetable pro-sergióng to end at £09440 duce, textile fabrics, from and steel products and goods,
...Bundry
Rice shipment from China - 10 creased by M$4.5 million M$13 million, fresh fish from M$9.8million to MS0 minion. and textile fabrlen from M$ɑ to MB million.
There was a slight drop in quantity of due ogge, fren Trull, preserved vegetables and catuin fabrics cxported 19 both terriletics Inst, ten
on
Gutedgeds opened strongly but surrondered ground the week, War. Loan`314 për cente dipping 14 to £57-13/16, Dollar stockim were' máinly higher and British demand for 08. stocks Ufted the dollar premium" -275th 'per · sent to 314 per cent. Golds proved a brisker mar- két and scored some good gains
By prompted
: Johannesburg interest. Germany's revaluation day on the view that a higher caused marking down on Mon- PER-MAYA experie... to China fell from NISTER million gold price was made even more to: M387 millión Boosung, ar rentate but moved up again on Chlin # rounded”Kubbág::pur, favourable obinment about South ohanes fróin Mainya. Sõjalling Africa's chances of remaining only 5,000 Jóns” cóniparea Inside the Commonwealth, a tobie wider Alkerkulori hare by WILL" 45,000' 'tona in 1939. However, td Federzulon anit the assembled Commonwealth Bingapore xported more Potroz printä menistorakenne, of 1964 Uplamalda improvedu pikt DE eum products and vegetable all 10- Ching boat: year::
Beere gained, beiter than 4/- to
oils ended
„G. E.-Moraton, Lockheed California Division physicias, checks "white. Light” image of sun to calibrate guidanco system of new telescope which will further company's studies of no- lar storms. In a paper sobeduled for presentation, In. Bomo, Moreton salda movla cartoon. esters has bien, villised to capture the first photos of a radiation storm on the sun. His res part to the spound International Conference on Bolar Energy disoloned, thei. Lockheed photo- graphe-made, overy. 19, seconda from dawn to fuck aláíco,195Bueller Inferential evidence of raddlion sadeleolen magnello conditions that could be lethal to man in spot. The "helle- Erapan," photon: taken, through a special bydrogen flise, depist the’wari wa'a giant withered pesch whoso surface: In Broken by Nares' nome, timsa: mensuring! 2,000,000,00017 digasrenille: Additional solar radiation data alan ždu, been obtained from Exulrument currión; siers DN Lockheed Agean extelliten, Moreton added.