Weekly
THE CHINA MAIL, MONDAY, AUGUST 28, 1961.
survey of American economy
BLOCKS TO RECOVERY
Unemployment London Wall Street's
problem and
strike threat
New York, Aug. 27, Just as large-scale unemployment has been acting as a damper on any revival of consumer buying records, the threat of
:
an
automobile industry strike VOS holding back the recovery of the steel industry this week.
On the stock markets the Berlin crisis prevailed again, stopping a drive that led to record-high averages.
-
stocks eac
London, Aug. 27.
A tense Barlin situation and homa front economic uncertainties combined
first setback
in a month
New York, Aug. 27.
Textiles
weekly
review
New York, Aug. 27. New business in cotton grey
goods developed at lass than a routine pace this wook.
Bro.
The Stock Market suffered its first setback in a month last week while the pace of trading trailed off to a six-week low.. to keep buyers out of the Markel sentiment was shaped fears, was a decline of 0,84 in by the threat of war over Berlin, the Dow-Jones industrial markot fast wook
and which becime moro acute average which closed at 710.70, industrial stocks continu- during the week, and by the ex-
The 20 rail average was down ed a slow decline in lot-pressed disappointment of the 1.50 to 143.02 and 16 utilities hargic
trading. Wall United Auto Workers Talon finished at 119.00 of 0.04.
The Standard and Poor's 500 with wage contract proposals Street's performance gave made by the "Big Tree" motor stock ludex wound up at 87.47 no Inspiration.
for a loss of 0.62, Indicating producers.
that around $4,200 million in While a few analysts took tho There was no panic unloading, decline to mean the post-election aggregate market values was but anail-scale unloading by
wiped from the books in the week's trading. nervous holders on an unwill-bull market was topping out, the ing market pushed most equities their view that the basic trend majority doggedly maintained
Volume
Ave-day lower, including the blue chips.
perlod slipped to 17,221,714 The Financial Times Indus-was still upward.
buyers gitated on trial Index fell 32 points on
The overriding opinion was shares from 18,924,000 shores a new
week earlier and compared with maintained a strong atitude on purchases, manfacturers the week to 200.6, only a hand- that the stoep early
August 15,209,200 shares last year.prieta, fal of points above the year's advance had left the.
market UPI. low of 281.4. The high was vulnerable to a temporary cor- 365.7.
rection in my case,
WIS
the over
Tokyo Stock Market
These three developments tory build-up by manufactur- were the only major flawe
ers to the tune of about $1,000 what otherwise would have been million, In the third quarter
after these a splendid post-recession
had been cut by covery of the U.S. economy.
about $400 million in the Arst quarter and held steady in the While Washington ecmontists
second. The Department based are beginning to learn to live its expectations on the reported with Inrge-sized unemployment resumption of the upward trend and same even consider ita in new orders received by dur- temporary boon in view of the able goods makers in July. They fact that it precludes any new were reported to have gained inflationary pressures via con- Į about two per cent from the sumer spending spree-Washingt-June level for a total of $15,200 fem is watching the unempley-million, the highest in two years. meni figures with great comVern, Manufacturers sales (gross) | close at 033⁄4%.
In July sing gained, about one Dealers complained For it is unusual for the wee
per cent up from June, and more talking than trading and employment rate to show no
totaled $14,000
vi number industrial
million. It the
"bargains" WOO ils pre-
the sixth netivity has regained
consecutive handled was the lowest for any monthly rain and brought the week this year. recession peak and moved to an
volume to the highest point
standout movement in One all-time high. For an unusual
since May 1960, situation unusual remedies may
the week wag a four-shilling have to employed and so it
Unilover to 141/9. surprising, al- Overseas investments Courtaulds dipped sixpence to would not be though it may be considered
31/0. Imperial Chemieni lost one something of a paradox, it at n However, and this was the chilling to 87/9, Rolls-Royce time of peak industrial activity flaw in the opinion of some bust-alld sixpence to 4/3 while awards, electricity guipul coat The Tokyo Stock Market
Improvement after
The only major chance
Constantly contracting volume that recent big buying interest on the decline indicated a lack in gilt-edged faded but and of selling urgency and, Do the Government Bonds lost up to weekend approached, prices over the five sessions. War were making a moderate come- Loan 32 per cent inst 10 back
Government and private re- they did ports on the economy, industry
and business
forecasts, and developments, held corporate both good and bad news for the investor.
of the private Industrial Indices, Borron's Production
arise while Moody's showed. and Standard and Poor showed moderate declines.
construction
dip
by
the government will have 10 ness analysts, the build-up in British-American Tobacco fell resort to accelerated subaldy the orders was primarily due to back two shillings to 05/0. spending as long as the unem- Increased defence contract work ployment lag continues for any rather than any demand pres prolonged period.
Steel industry
As for the steel industry, the situation is much simpler in economic terms.
mani-
The steel industry has been in between: whatever caught
capacity t Jarger production has already provided for, now has to be stockplied in the form and even at semi-finished, finished, products for whenever the motor industry resumes or- ders.
Consequently, the steel - dustry has had to postpone plana for September to return to the 70 per cent of capacity output which prevailed in May. I 1 currently working at 66 per cent of capacity with a weekly r Umated output of some 1,000,000 Long,
Nevertheless, the Commerce Department forecast an Inven-
in
пеш
while seme other overseas investment plants and equipment were said to continue at a high rate
this
year'.
Economic experts, while pro- fessing that the Berlin crisis so far has had no appreciable effect on business planning in the United States, offered few thoughts on its possible effect on the booming economy of West Berlin itself:
West Berlin
They think that quite apart from the political and military the one aspects of the crisis, seclar where the crisis will really hurt and the one aspect of the crisis which has been underplayed an far-will the economy of West Berlin.
The greatest threat to Weat Berlin, these economists think,
call
Increase in will be what they
be
foreign bonds. Japanese
fractions better
UNIT TRUSTS
but
First Hongkong Fund: $1,22 (buyer) $1.30 (seller).
93
Bank clearings,
production and motor sales were down from a week earlier, but capacity utilisation in the steel industry and carloads were up while department stores eales showed a two per cent gain over last year.
Plan shelved
The Budget Director indicat- ed that Federal revenues would be big enough to balance out increase next year without an
Rubber and tin
gain on world tension
London, Aug. 27.
remains
quiet
ENGINEERING
Harwell
course
in radiation
protection
· London, Aug, 27.
The fifth Advanced Course in "The Prin
ciples of Radiation Protection" will be hold in the Harwell Reactor School from
October 25 to January 30, 1962. ⠀⠀
A buyer-seller standoff over prices, and the continued pre- occupation of costaners with digesting the large-scale pur- chases made three weeks were the restricting Influences, market analysts supposed.
The course. which comprises The four previous courses Another the fallure of the falshed goods monstration and visita, is intend-
handicap has been lectures, practical work, de-proved very popular. Most market to follow through with ed for graduates or persons of United Kingdom Atomic Energy students attended from the the activity
and strength r graduate standard elther enter-Agency, but several came from cently witnessed at the level.
milling or already working in the other organisations in the United deld of radiological health and † Khfgdom and Europe and Asia. While
safety,
Some of the lectures will be given by the staff of the school, The course will cover a wide but the majority will be de. Beid of fundamental background ivered by experts from Harwell knowledge and will deal with and other United Kingdom principles rather than with Atomic Energy Agency establlab- particular techniques.
A high menta, academic standard is set, but since lew neademic courses cover It is also hoped, as in previous all the necessary subjects, the courses, to have lectures from course of lectures will begin experts from the Medical with first principles, and will not Research Council, the Agricul- require previous, specialised tural Research Counell, Central knowledge.
Electricity Generating Board, the Institute of Cancer Research, the Radiological Protection Service and Ministry of Housing and Local Government,.
insisting the current buying recess, will be short- lived. All weavers did not agree, but a majority indicated a com- dent belle that addillonal buying for fourth rund frot quarter requirement will begin within the next few week, possibly shortly after Labour Day
With the persistent ascent In the cost of raw cotton, and in view of impending and prospec tive
government purchases under the defence programme, along with the higher wage rutes for mill workere, to be- come effective September I weavers thought time was * ¡their side, and that it would be anything
"senseless to concede
Tokyo, Aug. 27.
romaino quiet the past or prices" at this time. More week with fluctuations at over some plants possessing a fair-sized order backlog, ac- a low level on account of
cumulated on the late July reports that the govern-buying splurge, were "ready to ment might adopt a tight wait the situation out', money policy. The Bank of Japan Governor, Masamichi Yamagiwa, was re- ported to have slated that the government
formulate
should
an integrated tight money policy Including a directive to banks to cut down on loans.
n
of trade
Industrial grey goods fabrics continued to make a relatively better showing them the Op parel fabrics division. Osna- burga, used extensively by the bagging and automobile trades, were boosted ong to 14 cents a yard on a number of popular. constructions in that category. The Ughtening squeeze on -mill profit-margins, chused by the
DEMAND RISES
brought
the
HONGKONG
STOCK
EXCHANGE
لازما
Our Own Correspondent
The theoretical part of the course consists of about 110 lec- tures under three main head-, ings: Basic scientifle principles (about 60 lectures); Principles at radiation protection (about 30 lectures); General topics (about ten lectures),
Practical work will cover, be- tween 18 and 20 experiments, including some designed to flius- trate basic principles and others Intended to illustrate the princi- ples of protection.
The programme of visits will Business done on the Hong- include Installations at Harwell kong Slock Exchange this and at some of the other morning emounted to apesleblishments of the Research.
$830,000. Noon Group, and there will also be a proximately quotations and the morning's tour of some of the United transactions:
Kingdom Atomic Energy Agency factories to acquaint students with problems in health physics and safety in the main types of: plants and in Installations of thể" atomic energy industry-LPS.
gheres
HK Dank..
40 14 375
Buyers Sellers
Balen
370
382
50 24 370
310 380
HK Book
Lon. Reg.
280
290
10 9 290
244
HK & FE
invest,...
24.20
E. Asa
1500 12
Wheelock 12.40 12.00 2000 ve 125
HKC Dack... 107 100 Taikoo Dock 03 00
30% HK Hotel.. HK Land..
Pravidest..
HK Realty Old,
-EU Tram.. K. M. Busi Yaumau
+
61000 63074
09 70
800 4 70
21 2.85 2000 2.53
27
119 120
Ch. Light.
301 301 1000 5000 100 Electric.... AD 3015
Telephone
(Old)
431 4312
(Right) 1015 18.80 HK dan... 21.10. 2135 4.525 4.00 Cllman. their
25 25.00 G. Cement 01 025 Dalry Farm 3072
Jardines
Nanyang
Watson
Stopo
Sincere
2015 92
012
Do,
41
500 51
British diesel
success
London, Aug. 27.
A series of tests recently.
completed by Independent American engineers have indicated that British made Perkins diesel an.
gines may be superior to standard petrol, ongines for taxi cab usa in Ply- mouth cars.
The tests, carried out for tha 500 4 2540 Yellow Cab Company of Phi-
Jadelphia by the Janeway En gineering Company of Detroit, |had two" objectives-to evaluatú the possibility of a five-year service life for Plymouth, taxi- caby fitted with Perkins engines and to recommend, specifications for the vehicle and engine in- stallation to
obtain optimum economy and life.
100 a 40 500 & 40 10301.025 120. 0005 ở th
A. Rubber.
7.00 3. Trust City Hotel L., Craw.
B. 1.023 HK Min Asia Nav.. Shal Hongkew S'hat Dock B'hai Land Humphreys
BRIDGE sures from below-on the part of the consumer.
Channel Tunnel counters Meanwhile,
business experts gained 3/6 to 20/d on news that will open talks with noted with Interest that oversens Françe investiments by American
tunnel or bridge to pri Britain on vale business continued to climb cross the straits, to a total of $50,300 milion by:
In the end of Jast year. This was ended Motor companies are not placin gain of $3.500 million over Greeks lost up to two points increase in taxes. However, Ing orders with step: compantes 1959 and may have been caused while in Germans Young 41⁄2
în administration-backed plan Another reason for little in the expected volume which by the record flow of American per cent were one point lower
to give nn eight per cent tax activity during the week was would normally be required for capital abroad sparked by fears at £170.
to businesses making rumours of a sycond Increase in Detroit's announce 1982 model of a possible devaluation of the
into credit Coppers and tins ron
plant expansion and improve-
raw cotton price action, has kept the Bank Rate. Pre-dollar last nutumn. production in September.
profit-taking after their recentments was shelved for the year. The daily average While no up-to-date figures strength on the high price for Walter Heller, chairman of volume was 48 million shares.
constant pressure on the milla contracts with the car Fent
to boost "cloth prices over the on overseas investment "workers expire next week ana
were the metal. In diamonds, De the President's Council af The market opened on Man-
part few months, brokers said, available for the Arst half of Beers cased to 133/9. the threat of a strike in some
Economic Advisers, seld a day in
Tarpaulin manufacturers, along 1081, there were indications
"wali - and - see" or all of the Big Three
Some tras managed to creep strong recovery" for business atmosphere. Although
producers of dight of short-term upside and rubbers kept steady. looms on the horizon. He also reached the market that Japan-cloths,
news with
coating facturers-General Motors, Ford that the
reported a continuing and Chrysler-looned Jarger capital at least had stopped UPI.
called for a continued easy hod
million in US$10
its inquiry. than ever this week
types of
credit polley.
favour in the balance of trade The Commerce Department
on the letter of credit basis in forecast third quarter salea
the first 20 days of August, ¦' In cotton sales yarn cincles, of manufactures would be up there were only selective buy some producers boosted prices four per cent from the secondings of dockyards, machinery around two cents a pound of quarter and salɑ It now be- and big iron and steel. Con an across-the-board basin. The Hevea the profit rebound insequently, the Dow Jones mark-up
an ensuing ibe second quarter was sharp. average dipped to 1,721.50 yen increase in demand, with pur- Second Hongkong Fund:
The net result of the facts and a decline of 837 yen from the
chases extending into the first cents (buyer) 99 cents (seller). ·| figures, the forecasts and the previous weekend,
quarter of next year. Advances HUGE DEFICIT
in the cost of row colton, and On Tuesday the market drop- | higher labour costs, triggered ped 14.05 yen to 1,707.51 yen due the price-litting action, brokers to reports that in July Japan rald. Buffered
deйcit a huge
of Surprised by
zudden US$120 million in the interna-strength, some spinners, for the tional current accounts
time and Arst
in many months, US$68 million in the overall paused to reappraise accounts. Stocks which gained | market position in the light of on Monday were sold for profit- | production potenial, existing taking despite a subsequent re-inventories end the amount of port that the Finance Minister, orders at present on the books. Mikio Muzuta, had stated that Wool market netivity was another increase in the official ourbed pending the reopening discount rate may be delayed. of the foreign markets and the
extent The market continued to sink
of government wool the Rubber and particularly tin have given an old for the next two days and the
cloth requirements under the Higher D-J average
programme. fashioned response to international tension—
stood at 1,679.41 deferice
Taw wool prices are expected yen on Thursday. tin reaching its highest since the Korean
the Australian markets On Friday, a conviction
that when War period but this may in fact be due to
Friday in South Africa. the bottom-near the low of 1,- Communist and non-Communist buying for
Kelenton Hard Abres featured a sharp New York, Aug. 27.
Sungais Servomechanisms Inc.. stock
requirements than for any war scare.
-and a report that the govern-
Star Forry ing weakness in raw Jute and ment and the ruling Party are
XD holders approved an in-
the swelling volume of how Macao Elec. 14.30 povernment are in any way
London Stock Exchange, and į stump. If Wall authorised
Street can go against any immediate advance crease in
flinching in the face "of the several other markets have been on booming, both businessmen on the discount rate
crop arrivals at Calcutta mill- caused a capital stock to 2,500,000 Communist threats, no amount as dull as ditch water. The over-end
centres. Sisal and hemp held consumern wilt become buying rally for SCAPCO and relatively steady with business shares from 1,250,000 of the huge economic subsidies riding question is whether the freer spenders end that could | Incentive-backed items. The expected to remain quiet until The Company
it will that have been keeping Bald
is really in- send the indexes much higher. Dow Jones average the American outlook
ruliked to
after the Labour Day weekend the Additional Usc
ahares city's economy booming winflationary. Despite the infla There is plenty of room
the consequent tionary forebodings from a wide them to go higher if the United over Thursday.
for 1,689.02 yen, a gain of 0.01 yeu --September 1. make up for available for issue to gain "a
loss of morale.
Heavyweight burlap prices better position in the future to
Any loss of array of American economic states is still to be regarded as
talent and from Wall negotiate
these sources · argue,
However, it did not mean that were down to the lowest level Street, mergers, consolids- morate,
a progressive economy.
investors had forgotten the in six weeks and a cumulativo in a flight of the defence spending and other tions, acquisitions and further might result
business westward. The
ever - present unfavourable full of 4% cents a yard from equity financing."
Servomechanisms has 814,001 sulting loss to the West Berlin mitigated
economic situation because in the nine-year peak reached last deflation rather But adducing the business be than created an' inflation,
the last session of the week January. shores outstanding and 214,723, economy would, In fact,
prospect as elevatory for Wall equal to turning the clly over Several setiars
Rayon of wholesale Street is unconvincing and pos- prices to 1,670.44 shares held in reserve for op-
there was a generat drekne in
sellers goods and relail trade are more slug albly irrelevant. If a boom ec-
yen in the watched the nelion in finished tions or conversion of deben to the Communists.
Already, they say, West with than Inflationary. People
D.J tures.
average, decline of gonde, declaring a real pick-up curs, its causation looks like be- auffered economice ominously keener to buy the Ing the other way round.
43.68 yen kom the previous there is what is needed to Berlin has losses through the mealing of shares than the products of
weekend, This was attriinated revive activity Wall Street at present in gove largely to the record balance of| Jevni-UPI.
the mill skilled East Germans who had also been the record the inter-city border. The 56,000 American companies. That has erning rather then mensuring i
of the the American business prospect marginal loans
35,480 million. yen of tho worked in West Berlin and credit situation this year.
of the Japan It le out on is own are now forcibly kept in the
In un-Securities Financing Company. East are considered hero
Loans for
of charted territory. purchases substantik! lose. So is the fort decurities have been
Meanwhile, the steel industry buoyant that the stopped flow of res while business and
claims to need higher prices to consumer fugees will no longer provida kans have been more Uke
cover the October 1 and the West Berlin
two previous price rice,
being raised before the Bank with is regular recension year than a recovery
And
The manpower pool from which year.
of Japan Governor's depar- Congressmen fulminate agalnoś A Public Law 489 authorisa- could pick the best technicians,
turs in Geneva on September | Bugar Corporation in Colorado I. In the actual competitive tion was amended yesterday by jirafessional men and killed There is more newn of nell-steel market some important
7 to attend the IMF meeting. Oprings Mr Merrill E. Shoup. The chance of an early Inhân declared in id letter to. the Agriculture Department for inbour.
ing prices being depressed by ilues are selling at six or more
discount Turkey to buy an additional:
crease in the As the orials deepens, and home and forcin competition per cent below present posted however, is 80-50 because of officials that in view of inter- rate, Congressman and Government 10,000 metric tons of United business analysis here have ethan of their being raised by in- | prices. States whent worth $620,00g, doubt that it will, it may affect lalion, and there is nothing The rub is that matry coat opposition,
government and ruling Party | national conditions, the US.. The Department sold the West Berlin's lifelines to the like a boom. The now peaks facreasts cannot be paard on
should be stepping up homo authorisation, as amended, pra West, not just inter-tonal con
of American Industrial output in higher prices. In themselves again, the stock market may be planning cut-backs which it the discount rate is raised production of sugar, rather than vided for the purchase of a total tact. This will be the real menns a rise of 12 per cent in rising costs are not bullish. It suffer a temporary shock. It would result from anticipated of 140,000 metric tons of whoat, tent of West Berlin's bustness four years and much lenu that inflation forest costs up" while i will either make a rally during Government action to Impiose worth $0.733 million, and thai | talih, and, morale.and the proof 12 per cent per capita, 100,000 metrio tota hnd already or whether the non-Communist
competition forces selling prices the decline or continuo slow marketing retrialivna on beet in Garmany, France, Italy or down, you have a pront squeeza downward trend if Investors sugar manufacturges, and res Been
bought. China Mali bastion's enonomy will survive Japan that rate of progrese which is the very revarse of take a Walt-and-een sulitudeau | strict nereagei in 1902—China "West German deutschemarks,
or wither away."UPI,
would be regarded na ni violent] bullish-Chins Mall Special. UPI.
Mall Speciale) NNER maximawari pèlling 09-7/10...
capital
The Company said it has no immediate plans for use of the increased shares.-Chlad Ma Special.
U.S. authorisation
Special.
Washington, Aug. 27.
"loss of heart” among West Germans investing and working In West Berlin.
What hangs in balance, the economists say, Is that if at any time in the crisis West Berliners, especially West Ber- in businessmen, feel that the Western powers and the Bona
Profit squeeze re Kennedy measures have mercly
#
A
stock prices hund just about hit an yen recorded on August 10
reopen on Monday, and next
drop in burlap prices, reficct-
Kroy
at
The outlook for this, we Sugar output
is rather gloomy. There is `n posibility of the Bank Ento
New York, Aug. 27. President of the Holly
#
40€.
24.00 20.10
3.40
220
Exchange rates
At the completion of the tests, Corneli Janway, vice president of the Detroit company, report- jed that both the 1901 range of Phyniouth vehicles and the Per- Iring engins, were
capable of five-year taxicab service with nut fallure.
Findings
The latter, a 02 bhp. P4/203, did not impose any additional
Impair
in the local shock or vibution to the taxi-
which would this caba morning at the following ratekin viructurat Tira. U dollar (per #1)
Business was done uriomicial exchange market
6,718
15.00
11.03.
Storing notes (per £1), Australian notes (per £Ð Japanera yen (per ton Cambodia rial (par 100) ... French new franc (por 1).. Firazilian cruzeiro
Indonesia rupiah (910)
Argentine peso, (per 100)....
Korean wan (per 1,0001 Italian (per 1.000) Chinese JMP (per 1) Taiwan yuen (per 10)
ubalit (per 100), n Hurinete kynf (per to) Pakistan rupee (per 16) Macho paláca (per 1) au Norwegian krone (per 100).
peso (pet 1)
Aingapore iraila (per 13 .... Swiss frame (per 1) we Netherlands gülider (per 11, West Getman D-Mark" (per 11 Cuban pem per 21
10.
Agreed
merchant
rates
The Dotrult "enginzary based 10 thuir andings on a series of dee fully instrumented' testy carried 1.13 Jout on two 1901 model Piy- masillis—ono Alted with the
cylinder petrol
329 engine, the other with the sour
cyclinder Porkina unit.
Using a Stathard accelero-
#.15
ОЛЕ
1.30
27.10
9.75
meter recoriling 'on to a
7.00
0.994 cillograph
Brunh
ond cobaltein
1.60 reactions from
passengers 11 14the two cabs, Janoway - conelúd- 187
fed that there was less vibration 1.33 154 and shake in the Perkina- powiem oak over the text routew which Included cobblestat afracts and rallway, crossings.
1.40 0.20
Swie trance, muxlinum selling
It report, Mr Jonaway' states that there wha no apptes clable difference in ride-for | passengers in the cabs used. The
standard, cofa,... however, noletor do to raition Diari, tie 107 S. Havier, Perkins-engined vohlale when both wire, hittad with laten at de busA, DEVRON
+