Pago Z
THE CHINA MAIL, MONDAY, JUNE 19, 1961.
Weekly survey of American economy
TWO CONFLICTING VIEWS
WALL STREET DECLINES IN ALL SECTIONS
New York, June 18.
The Stock Market backed down on all fronts this week as the investment community came down with a creeping case of bearishness.
Activity was down as well, a Iceble
the alling remedy for investor who watched a steady erasion in the popular, averages and in most nooks and crannies of the market st
WAS &
Favouring the beara raft of depressing
news; price culting in the copper, paper and steel industries,
government giant corpOTA- pressuro' on the tlons, notably General Electric and other clotrient equipment a levelling of in makers, and steel production.
One major economie develop- tment apparently had no in- fluence in checking the decline: the Federal Reserve Board re- ported industrial production in May roso three
per cent to a
level only three percentage points below the all-time peak. But with stock prices already su high, observers said, there was little left to discount. Housing staris also wore up, but this, too, was ignored.
ון
and compraytl week watter with 17,701,100 o your rego
HONGKONG Administration New York
STOCK and industry cotton
EXCHANGE
[Our Own Correspondent
Business done on the Hong-
opinions
market clash
New York, Jung 18. .
kong Stock Exchango this A big tug-of-war is shaping up between
amounted bo ap- morning
Washington and U.S." industry on two proximately $2,670,000. Noon quotations and the morning's connectod fronts.
transactions;
Shares Mayor Belters Bple
IK Dank
The preponderance of major Lon. Reg. losses over substantial declines Lombard was overwhelming. A sample of whart Co,
Thikoo losers: Aldona Inc. 74, Baxter abs 04. Beckman Instrumenip Emerson Elootric 9, Mag- Mimacapolis-Honey- navox 93%. well, Polarodet 10, Einger 04, Wheelock Toxas Instruments 94. Young Dock town Sheet 0 and Lofthch. Prov. 04.
In fact, the lojal number of H & 9.
Hotel Josera-1,004—was the great- ¦ 11K Land nat since the week of March when 1,010 stocks 1900, showed declines. Blocks
last gains
week Yaumati
4.
managing
Rta.
came to only 800 out of a los HK TAM.. tal of 1,601 creasing the tape, } Ch. Light New highs autnumbered now lown by 10 to 60.
4X4
410
DO 414
100 414
100
310 314
50
340 JINE
2416
70
2315 23.00
€14
$00 300
181 18.00 17000
3515
**
100 230
4052 4955
136
2719
Electri
3724
**d
80045774
100
30
B435
B5
100
$3
300 £ 64
at
Grahem-Paige was the most active stock on 250,000-shong turnover boosted by on lugs Telephone..
The stock 104,000-share block.
held unchanged of 23%, the in- torent dremming from rumoured G.1. Coment plans to build a new sports Dairy Farm 3014 3011⁄2 RTCILA
Watson ***
According to the Dow-Jones Industrial average, which mea- suren 30-stock sample of "quality" issues, the market sank whopping 15.40 points ነር 085.60, or just a hair above the former all-time peak broken Following were United Fruit Allied inv. with such difculty earller. Aup 1% on reports that earnings break below this lovel were on the rise, Lockheed un- volume, somo technicians any changed, General Motors off 1 would bring trouble.
and Amerionn Telephone down The roll average dropped 3.28 46. The last-named weakened utilities lost 1.17 to an news that the government 112.00. Standard & Poor's index might apply pressure for a cut in of 500 stocks was down $1.48, long-distance telephone rates. indicating an approximate Jossi of well over $9,000 million in market values. The week's per- formance was one of the worst of the year.
to 140.64
Volume
VOLUME DROPS
on the New Yurk Exchange Stock
dropped to 16,320,338 shaved from 10,721,550
AMERIC7 STOCKS & CO
JEST
WHEN
SELL
TECHNICAL
WHEN
ANALYSIS
On Stock Tronds
Bazaarch Dept. PERENNIAL TRADING CORP.
010-818 Edinburgh House Hong Kong.
Tel: 24940, 3064
Nanyang ** Amal, Lub. Humphreys Really
0.49
70
***
23.10.00
*** 218333333 #882288 203 * 22 * *
43915
The Kennedy administration is going full out to reduce unemployment from the current seven per cent to the 3-1/2-4 per cent considered "normal". But industry is reluctant to move
from its present post-recession position of minimum employment and is dead set against "artificial over-employment" and its apparent corollary, the wage-price spiral.
In another field, the adminis- | cial and economie policies are iration is trying to discourage geared. the formation of foreign subsi- diaries of American companies.
Way
of
overseas,
CAK 2000 & A773) lower labour costs and
Industry, on the other hand,
the over of
the
Now York, June 18. Cotton futuros scozawod narrowly in another weak of slow dealings devotod mainly to avoning-up in the expiring spot July delivery.
At Friday's close the active
cents to up 13
cents
a bale,
months ruled three lower to three points higher, or off 15 compared with the preceding weak.
The for forward October de-
very moved up 40 points in the week's final dealings, when 值 BJ:D]! commission house
demand found an even smaller
supply,
of
contracts. Tho delivery made December 1962
on the its initial appearance Board on Wednesday, trading up to 35 cents a pound,
The
an
SCIENCE AND NGINGERN
Experiment with solar cells for buoy lights
A now brick structuro with a series of lamps mounted in the front face has boon created at the research station of the Corporation of Trinity House at Dungeness, Kent, south cast England. is an experimental installation to see if buoy lights can be powered from a battery charged. by a solar cell-the device which converts energy from the sun,
It
It has 400 of these cells. mounted on top of the structure in a banked formation, the colla being wired in series parallel storage and charging ten Nife cells.
This is intended to determine whether the system can be used on navigational lights
It is als0 hoped that investigations carried out on this installation will re- veal whether it can be used successfully as the main source of power for operating a light without having to rely on a shore-based electrical installa-
tion.
cur.
situated
New windscreen wiper for ships
A now typo of windscreon ships, wiper for uke on cranes and excavators— claimed, to bo 100 par · cent more efficient than any other type, and the only one of its
kind in the world is now being manufactured by a Glou-- cestor firms.
all new-construction
for
now
Stability shown in the fore- part of the week was credited oa the premise that such subsi-is not so sure about the figure. diories lend
out that the periods to charlist short covering, but restrict doncatlet points
when the demand pelered out investment and result in an "ex-of highest umployment in
prices drifted arul inclined to port" of jobs while unemployU.S.-the immediate post-war
in river estuaries. period and during the Korean softer, in line with the favour- ment here is high.
Wor-were times of rife in- able tenor
of crop The administration is propos-
news and connection ing to tax US, companies with fiation. The precise
the absence of any new bullish Incentives. employment end subsidiaries in so-called de-between high +371 veloped
The approach of first notice countries on retained nation is nebulous, but it is
26-may have carnings from such subsidiaries, certain that when employment day-June In addition to taxing dividends is low, wage increases tend to important bearing on the price outstrip increased, productivity, trend over the nearby term, mar- as at present.
With a resultant inflationary ket experts felt. Administration economists ar-
certificated storic que that not only do these subal- spiral.
Ferrant Ltd., the firm who The administration, of course,rently is over 102,000 bales. A dlaries eliminate possible jobs in
the solar cells, say industry to hiro fair percentage of this cotton
produced from cannot force
This now wiper has already this country, but imports
that the next stage will be the been approved by the British harm these subsidiaries
the mere men and women. But at presumed to be owned by pro
The spot interests.
construction of a modri buoy Admiralty, and is standard fit- bountry's balance-of-payments the moment it is holding over minont
statleting on which will be tested in the head of industry the threat' same. spot interests were TC- position.
to determine the Naval vessels. públic worksported short a large quantity of water tank Industry's answer is that these of widespread
which 12-subsidiaries
could hit the July 1981 futures contrāci physical configuration of solar absorb about x programmes
Although the firm have sent hardor than over- Tenders against July could cells when the buoy is subjected 15.10 per cent of all US exports, In Industry
be large. troders felt, unless to the effects of wind and heavy emall orders to Norway, Bel- 12.00 tho
construction employment.
Iatest
figures short positions are transferred scas.
gium, Finland, Germany and employment 13.10 materials, parts and components.
order Japan, and have an of un- to later months. So far, the defence also claims that show that the number Tho
to 82
The Nife storage cell which sixty wipers from the Royal mouy companies have the choice employed fell seasonally during difference of around 80
will be mounted in the well of Australian Navy, they are 2005.40 of producing
with May to 4.8 million-6.0 per cent points between July-October has
the completed busy, will be of fentering the general export at anot been wide enough to en- labour force
This courage switching operations by
the nickel-iron, 6000 a 3775 honda, or not producing at alį in seasonally-adjusted rate.
alkaline type, field, and would welcome en- 3000 & 214the high-cost American market, was
with a capacity of 45 ampere- quiries from any oversen coun- u drop of 200,000 from spot interest on a worthwhile
hours. It will not only provide | tries. septe. 10000 € 2.775 Further, they claim, the vast | April,
Speculative Interests have
the power to operate either a But this month sces the end 500 3.50 majority of US, imports trom
bean
credited with
electric flament holding low-wattage
The wiper sweeps the whole 1021 foreign subsidiaries are metals of the school year, and the 2009 GP 0215 minerals and basic commodiles inilux of students on the Inbour July futures. if they find them-
most of the long position in lamp or Xenon flash tube during window from side to side, and 10000135
area 100 per cent the hours of darkness, but will covers an vital to the US, which would murket could increase the ranks selves 10004 0112
in an
also operate a transistor coder greater than the arc or disc type be a compicie drain on the US of the jobless to 5.5
uncomfortable 500 @ 1
million. position, they
desired of wiper. It can be parked at.. 13.70
the elther to give the light If wholly fuelga Government estimates indicate liquidate or accept tenders, the character for Identification pur- the side of the wimlour. cut of
unemployment figures for the experts reasoned.
poses.
the way in fine weather and wipes the window in a straight summer at 5.1 million in July, The Census Bureau reported
consumption 4.6 millio
of all So far, it is visualised that at line backwards and forwards. cotion In May totalled daybreak a silicon light sen-
The wiper, which has been 675,000 balco, vs 648,000 bales sitive cell will
the switch off
hours non- used in April and compared coder and the light. When subjected to 1,000 with 710,000 bales used in May darkness falls some means must stop working and intensive sea Meanwhile,
highly last year.
be introduced to prevent the tests, consists of a wiper arm compellive steel industry in
The certificated stocks at the battery then discharging back and binde which la canti-lever healthy
mounted on a sliding carriage, through weekend totalled 09.300 but going
bales, through the solar cells. This, say atted with tyred rubber rollers. and of
up-and-down plus 2.704 bales awaliing review Ferrant, is usually achieved, by phases. Right now, it la cut-and micronnaire, for a combined using a backing-off
It runs from side to side in dlode in
roller tracks formed in the total of 102,013 bales-UPI. ting prices-UPL
cach of the parallel arms of the
wiper casing. The carriage is cells.
for- carried backwards and wards by means of an endless
driven by tu belt, which is
All internal electric mator. parts are stainless steel, or other material impervious to 5 | water.
20000 @ 2.773
*
(N)
2.00 2.00
0115
43
L. Oraw. Int'l Inv. HK. & FE
5016 10
25.00
01
10 6000
400
21.00
$14.30 0000 E BAS
14.30
Two tobacco slocks, American and Reynolds, rose 3% and a
Korvette gained respectively.
that it would Į K.M.D. 43, on the`nows
discount store on Now open a York's Fifth Avenuo. Foxboro was a rare "glamour" stock run- ning against the trend, rising four points.
Inv. Back among tho losers, J. W. Mays foll following Underwri
Gliman word that merger talks with XD Alexander's and Ohrbach's de- | City Hotels - partment storça hnd
beon Star Ferry dropped. UPI.
Exchange rates
Dualners was dane in the local
unofficial
exchange market
morning at the following rates:
US dollar (per $1
Sterling notes (per £}}
15.00
Australian holes iper C
12.50
Indonesian Rupiah iper 100)..
3.30
Stam tieals (per 100)
20.50
Bingapore trails!
1.01
UNIT TRUSTS
First Hongkong Fund: (buyer), $1,40 (seiler).
$1.92
Second Hongkong Fund centa, (buyer), $1,03 (seller).
Rope
LONDON STOCKS FALL
The
a
cm owned,
domestic In August and 4.1
to
LICENSING SYSTEM The chances are that the ad- ministration will force through million in September, when the proposed retained-earnings many youngsters return tax.
As a result, many com- school, panles are paying more atten- tion to the possibility of switch- ing to licensing foreign pro- ducera rather than setting up foreign subsidiary plants.
There are many disadvant- ages to the licensing system, principal among them being the fact that licensing is far less praftable. But the low cost of licensing compared with heavy production Investment, the un- certainties of possible nation- alisation of plant, plus the ip- crative of the new tax, make the system very attractive.
In 1030, the latest year for completo Agures, overseas licences produced $515 million big This was in royalties. Jump from the $301 million of 1956 and is expected to elim steadily.
raw
may
Denial of currency
rumours has sharp impact
. London, June 18.
some lime, several Mr Per Jacobsson's comprehensive denial of any
London, Juno 18. economic nows had very bad effect on stock markets last work. The one per cent increase in steel prices and the 10 per cent rise in ordinary railway fares called for subdued conditions.
At the Reports from the city were in-
companies are golog abend 99clined to accept the govern
with plans for now sub- ment's statement that sterling
sidiaries or Increased Dro- will not be devalued, but was
duction of existing facilities. depressed by the Federation of
One of the biggest plans is British Industries datest survey the Aluminium Company of that United Kingdom exports America's (Alcoo) announced were "disturbingly vulnerable formation of an Australian sub- sidlory, Alcon of Australia Pty. The setback in the Financial Ltd., to establish and manago a Times industrial Index in the $160 milion aluminium complex
P.O
ORIENT
to still rising costs."
LINES
s.s. "HIMALAYA"
For Japan, Honolulu, Vancouver, San Francisco and Los Angeles
EMBARKATION NOTICE
EMBARKATION: The ship will be berthed at No. 5 Pier, Kowloon Wharf. Passengers should embark between 2 p.m. and 3 p.m. on Tuesday, 20th June, 1961.
SAILS:
BAGGAGE:
The ship is expected to sail nt 4.00 p.m. on Tuesday, 20th June, 1961.
Should be sent to the Hongkong & Kowloon Wharf Co.'s Godown (No. 6 Gate), Navy Street, between 8 a.m.
low.
to £40%.
be
and all currency rumours had a sharp techni- cal impact. It caught the bears badly on the wrong foot. Some people in New York and elsewhere had operated in expectation of devaluation of sterling and revaluation of at least the Swiss franc last week-end.
However, sterling'a sharp rally
Before the first fully equipped marine buoy installation be- comes a reality, the problems to be overcome include the effects of buoy motion, prolonged periods of little or no sunlight- although the solar cell does not The wiper weighs only require direct sunlight for its lbs, and can be fitted with a de- operation - and the more prae- ichig unit if required. tical problem of preventing aca birds from fouling the surface of the solar cells, thereby re- ducing their effelency-LPS.
Valves built to last
Gro
to Canada by
ship Monarch.
Although
the valves pro similar to those used in radio
18.
(Wynstruments Limited, Sta- verton, Gloucester, England.)
New high vacuum steam turbine
The Scottish firm of G. and Glasgow, J. Weir Ltd, have produced a
high
YOCUUM
steam turbine.
пот
exhaust
It is of the horizontal, gearod
primarily for
The first soctions of the round-the-world telephone there
have been last two days has been cop-in Australia. The new company after Mr Jacobsson'a throw-
cablo may well
being laid siderable, although business | willi
several mare currency: scarce. 61-per-cent Alcos- down of this nonsense has not
across the Atlantic from Britain presumably wanted has been small. Over the owned, with the rest owned, by been fully held. The dollar on
Scotland and enlargement an extension. week the index fost 10.8 to Australien interests.
for the Post Office cable type and has been designed close the week at 381.0.
The Australian complex will the Continent had only a slight of the Baste arrangement The gilt-edged section of the include bauxite mining facilities that. It is again on or near its and noutra.be
service in motor rally and has not held all of other Central Banks to finance
Vissela an outflow of
where high-pressure markot was hit badly with on high-quality, deposits near noor in France, Italy, Germany money many prices touching new lows. Perth, with
from atorking or any an on-the-spot re- und Holland.
steam is not usually availablo. other threatened currency,
The turbine is of the, simple War Loan 3% per cent fell finery. The extracted alumina
Di pred 7/10 to £54%, a new all flme will be transported to Geelong,
The BIS report thinks There are said to have been
that and television seir, they have to impulse type having
stazos, excessive expansion of Interna-
suratul two velocity work under very difficult condi- Consola 2 per cent lost where a smaller with an annual three sets of bilateral chais at tl rodit on n
(enpacity of 40,000 tons and a the Bank of International Set-bals 13 Tot the answer to the
automatictions. Deep down on the ocean and the size at present available mill for fabricating aluminium tlements meeting in Basle in the dificult problem of international twenty-four hours a day and of up to 230
bed they have to operate in designed for steam conditions per ng inch at alloy steel, foil and extruded week ending June 10. The monetary managemant, shapen will be built,
It says because of the cost of acnding 750 degrees Fahrenheit develop United States took up with
that i cant-beh Similarly, two chemical firms Europeen Central Banks
ald wood cable ship to make repairs, ing a maxiraum of 830 bbp. In- the fork-term problems it may they must stand up to years inly variable spoeds con ba Among the "blue chips" Imaye announced ipcreased for- question of co-ordinating money do more harm them good.
af kire.
obtained down to approximate- elga operations, both for produc-|policy so as to miniratse the
ly 30 per cent of full lood perial Chemicals lost 3/- and lon of phthalic anhydride, used American quidow of capital.
These valved, Unilever 4/3 to 71/3 and 141/-in plastics and synthette paints.
designed and speed, making the unit ideal' manufactured at the Pad Office for driving cargo all pumpa. 10%, respectively.
Research Station at DoS HIN,
Driving torque is constant London, have to be produced throughout the 340 degrees of under ktoni conditions since any revolution of the rotor, giving thing as simple as Ruff from the vibration-free, drive which fa bres of wollen or cotton equally suitable for constant clothes can cause failure.
loads (..
pumps, dtc.) or fonds such as re
ALL SECTIONS Nearly all sections of the industrial market foll back
otta
and 5 p.m. on Monday, 19th June,nally lost ground with the rest
beginning of the week.
1981,
SUBJECT TO CHANGE
Agenta:
MACKINNON, MACKENZIE & Co.
OF H.K. LTD. Telephone: 85211/8
of the market,
It specifies that Britain's problem is not shori-lerm, instanottig, shas bolween 1951 and 1960 Beljsty's export rose 164 25 percent, Germany's pervent, and Ijaly's 160 per- coat. I say that the pro blem of cost inflation cannot be over-airessed · and that the Cohlinental, countries pericàce il léo, but obviously not so badly' as Britain and America.
A sportal "clean" room has Bucating *x-
been built at the station, with ciprocating compressors, air locks and other precautions,
It instances again that Deftish
The turkino is fitted with two
The Callfornia Chemical Com- It is not known whether any- la stores the main feature was pany, a subsidiary of Standard body pointed out the immense the weakness of Woolworths Oil of Callforato, Is to build a structural dimculties which which ended the week nearly plant at Hull, England, wilk an make Germany
an unwanted 4/ lower at 38/4.
America an un- annual capacity of more then Importer and Steels showed dissatisfaction 17,000 short tons.
wanted exporter of capital. The macked up to 3/0 lower on the increase volume at its plant, at Arnerion anst Germany have the ot the price increase and were W. H. Grace and Co. plans to BIS report nemarks that week.
Sao Paulo, Brazil, from 00 short same problems but upside down. After sco-sawing at the tons a month to 240.
Franco ralsed an undisclosed
so that manufacture can take safety tripe, one being vet to. subject, probably Mr Jacobason's
place under chest and fire-free operate at 71s per cent and the TREAD CAREFULLY project for an IMT network of In the employment field, both mandly credits from the Con-export prices since 1983 have ions. In addition, the n-oilies at 15 per cent above nor Pareign bonds were dult with government and industry are dental creditor countries. Pend two per cent. In both Britain the work wear mylon clothing, arrangement is
riaen tom per cent, Germany's gincors and girls changed on mal running speed. the execution of Chees which reading very carefully, as the ing some groomed on many and Ameries it discerna Ascala thilo man-made material dose on the output and of the furs were 1 points up on the shook subject is political and publle thorny retail, it remains to and other structural defects. not produce bres which could bind shaft in the
Banking shares were dull bút Insurances showed a mixed ap¬
relations dynamite,
soen wether thero la, much real The Swiss National Bank is Ret inskio the valves and caUNG TOUSING. Government economists claim dilkuranep pearance.
hetwoon
The accuracy of speed con France's known to be worried about | #hort circuits, Dollar stocks were all marked that 3-4 per cont unemploy- relection apd 'Germany's (some aspects of the Basin And, the reward for all this trol required" and range of lower, and in some cases were ment is normal and reasonable, pricuible acceptance of the strangement, despite the dollar care? Theww are now mostly rods over which the turbine. 44 points lower. The premium and anything above that figure, Jayabman plan. Al bout it will exchange guaranton on ile holds 250 valves working in the ocean la to operate detanninse – the Just 15 per cent to alá per kent, la exconivo, que fauro la mom| tak terku "It might #05 fin linga of uterina, The 118 lb | duptha, suchy with aniqvens lyps of governor which i dtiali
Teas and rubbers were irre, de lems afbitrary, but la one to working
will" the duty scale usili [worried about some things too. life of four years. There has in conjunction which many government finari-l autuma: 1983, by which ilma |--Reuter.,
only teen one fulture.--LIB. gular.-UPI.
The trip accommodated
ell
of the driven units-LPB.