1951-01-15 — Page 11

Wall Street Textile Display British Economy Is

Enters New High Ground

New York, Jan. 13. The stock market overcame early resistance on Saturday to forgo its way into

high new ground for twenty years,

Uncertainty over the tax de mands which will be made on 1951 profly made the market through the first hour, but Infintionary pressures over- rude these considerations

all sections noved up lows, most finishing higher

the day.

when from

on

With President Truman call- ing, for a balanced budget, the Street was Duxiously walting the budget message which he

will deliver on Monday to see how much new taxes will be

At

London, Jan. 19.

The complete. ground floor at the Earl's Court Keotion of the 1951 British Industries Fair is to be devoted to tho blagent textile display ever stared in this country,

Textiles are expected to be the big attraction at the Fair which will be attend- ed by thousands of over- sens buyers, many of whLONS will stay on to attend the Festival of Britain.

The BIF opens on Aprit 30 and laste il May 11-- London Express Service,

Surplus

required to make up the dif Deposits

ferences between expenses and receipts, Meanwhile, the Korean situation was closer to stage.

A

criticol

Ralls faished 45 cents. higher. in average at $82.08, a new high WRB since July 10, 1939. This sufficient to 11ft the general average to new all-time peak ut $90.72, the best since it be

and gan in 1933. Industrials

little lower, utilities finished a but both failed to reflect strong Rains. Oils, rubbers and alt crafts featured in industrials with gains of fractions to more than 2 points. Steels and motors weakened,

Dow

'Sterilised'

Mexico City, Jan. 14. Mexico, embarrascod by a

of dollars has

ordered flood

all further increases la that private bank deposits be turned over to the Bank of Mexico.

Ramon Treasury Secretary Betea said such posits would be "steriilsed" to keep them out of circulation,

Faced With Three

Problems This Year

(FROM OUR OWN CORRESPONDENT)

London, Jan. 13.

The Chancellor of the Exchequer tempered his encouraging state- ment on Britain's economic recovery in 1950 with a warning that "the nation is faced with a series of economic problems as difficult as any since the war."

Loco Orders Rolling In

To Britain

London, Jan, 14. ortless wortli millions of pounds are rolling in to Britain from all over the world for new In the past Frailway engines,

three weeks alone locomotive manufacturers have received orders for nearly £10,000,000 of rolling stock,

The firm of Beyer Peacock last month received a contract from Rhodesin Rallways for 30 to be worth

locomotives said

Despite an overall surplus on balance of payments of £200,000,000 to £250,000,000 and recovery in our gold and dollar reserves from $1,688,-about £3,500,000, while Metro- 000,000 to $3,000,000,000, the prospect for our standard of living, he said,politan Vickers and

Thomson is "disappointingly gloomy.'

The imminent

nationalisation

Although on this occasion he was chiefly concerned, investors have shown a marked switch of steel with economic progress in 1950 the Chancellor did not preference for holding equities. attempt to minimise the gravity of the difficulties which equities into Government stock, lie ahead of us. Three major problems facing us in 1951, connected with he said, were the impact on industry of rearmament, the continuing rise in the price of imports and the scarcity of raw materials.

Briefly the position of trade

terms

Mr Beten added that the in- terest rate 01 government bonds will be reduced from the

raw Jones averages at the present six percent to five per-

session stood

D9 cent.

end of the

follows: -

50 industrials

16 utilities

20 rails

40 bonds

Mr Beten explained that the 249.61 measures were caused by a 82.08 big flow of dollars to Mexico, 42.08 apparently as a result of the 103.07

fighting ini Korea. Mexico's dollar reserves have zoomed ot US$338,000,000, close to the wartime peak of US$355,000,000, ---Associated Presa

United Press,

India After

Grains From

Ameriea

London, Jan. 14.

It is understood that India's requirements of food grains will total no less than 4,000,000 tons

These supplies will have to be forthcoming from North America, Argentina, and Aus- tralin, there being wo other worth-while exportable sur- pluses in other grain-producing | countries.

reports were

Brokers Ask

The

Saturday Closings

New York, Jan. M. question of Saturday closings of the New York Stock Exchange because of the crush of business was informally dis- cussed at the weekly meeting of the Board of Governors but no action was taken.

During the summer the ex- change operated on a Ave-day week, with the market closed on Saturday,

In this respect, it is known that India is negotiating for the purchase of 1,000,000 tons of

It is understood that at least from grain

while one and possibly America.

more smaller current

on the brokerage houses have sought exchange that Argentina had relief from the heavy volume of nold to India 600,000 tons of business by proposing that the new-crop

for shipment Wheat

Saturdays between January and June.

up with Recent fixtures from the River Plate to India were understood to be part of this contract.

Textile Markets Inactive

New York, Jan. 13,

The question of price control

and the overall

Government

to restrain

extent of

buying combined

nclivily in the

market close a few so they could catch routine paper work.

Last year the volume was the heaviest in 17 years, and the pace has been much hotter ever since ilie Christmas

Associated Press.

recess.-

Decline In

NY Cotton

New York, Jan. 13.

•

textile markets this week. Cotton futures declined on Selters showed

increasing re- Saturday in extremely qulet luctance

enter contract trading. At the close, the list positions.

was to 10 points lower here, Raw colton futures zoonid and in New Orleans cotton the 44 cents level. es-futures finished 3 to 9 points tablishing a new high in the lower. At the one time, the down as much as market

Profit-taking and

to

history of futures trading in

was

New York. With anticipation $1 a bale.

of rising labour costs, some hedging operations were light, mills began to insert contract The declines in grains at Chi- clauses.-United Press.

cago also influenced the cotton

Italo-Japanese Trade

market.

Prices

follow-

March (1031)

May Talks

Rome. Jan. 13. Government circles said today That an Italo-Japanese commer- cial accord is in preparation and would call for about $17,500,000 worth of imports and the same value of exports. A clearing system of payments will be set up.

The negotiations for an accord

July

December March (1952) May

closed

today ns

44,03

43.35

43.10

30.58

30.42 nominal 10,12 United Press.

New York Metals

New York, Jan. 13. Prices in the metal markel here closed today unchanged with the following exceptions:

are going on in Tokyo.—Unlled) or higher), New York, per ib.

*Press.

Tin, Grade A (99.80 percent

175.-United Press.

Wool Dominated By

Stockpile Buying

Sydney, Jan. 14.

United States buying to build a defence stock- pile of wool is dominating the Australian market, a wool trade authority said here today.

He said that because of this competition, market prices are expected to soar beyond the present record level.

Buyers abroad were being told Japan would make most of it that they would have to raise available to Amerien, ho aald. their offers if they wanted wool.

Brokers

hore sald it wor Normally, the United States impossible to estimato how demand is only for foc spinning much wool was going to Rus- wool rade.

uitable for a high-class sta

Ships Icaving Australia civilian

for Odeszn were always filed Now, they are buying heavily with

wool.

but there were Courser types which are tower in undoubtedly for defence pur-than a few

boots on this rum now

yours poca, the authority said.

ogo Australian wool prices reach- üle added that Japan was aloo traying cross-bred topmaking ed a new peak at Sydney wool wood of a dimilar quality and sales last week. Figurer gen- paying for it in Australian cur- rally were. 20 per cent higher rency. It was almost certain than f last December-Reu- thai when this wool was treated, I ter.

АГС

Д ac

over

the

of the iron and steel industry, has caused hesitancy in the gilt

edged market.

the week

HONGKONG SHARE MARKET

British

just Houston have received an order for 90 engines from New South Wales worth £2,712,000,

Metropolitan

Vlekers

arc

R. I. L.

ROYAL

INTEROCEAN

• SINGAPORE JAVA. SPORTS and"/

MACASSAR

"NIEUW HOLLAND"‡ "VAN HEUTSZ” ** "TJISADANE"*** "TASMAN"*

"TJIWANGI”

•

to Singapore & Jaya.

ARRIVALS

In Fort

LINES

SAILINGS

28th Jan,

181 Jan.

22nd Jan.

27th Jan.

21st Jan.

28th Jan.

28th Feb.

only to Singapore, Penang & B. Dell, ** only to Singapore,

***. not calling at Singapore.

O MANILA, EAST &

SOUTH AFRICA and

SOUTH AMERICA

"RUYB" "BOISSEVAIN" *TJIPANAS"

"TJIHADAK”

B via Japan,

a1 £2,230,000,} O JAPAN building 48 diesel-electric loco- the largest order for diesel en motives valued

Arma gines ever placed with Brigh

latest

The recovery in our gold and already reserves had Is this

secure supplies that and nak the dollar

all been

discounted. Nearly

bir order The moving prace atterwards.

In this against us 20 drastically thai |

respect at least the sections of the market gained on

there were received by Vulcan Foundry of of British companies setbacks in motor though we will have to pay, another incuma

shares as a Lancashire to build 80 oll-burn- for the Slate £400,000,000 this year for the operating overseas, whose earn-et

the result of the announcement of Ing locomotives

Egypt, up

of Iran and same volume of Imports as In ings helped to build

cuts in production. railways impending

will be 1950. We will, however, need "invisible" surplus which

issues was This, it is estimated, Firmness in new more imports particularly of the year ofset the delicit on

marked by the outstanding worth £1,500,000. There are 40 visible trade, is not likely to be success of the Kenya Loan. materials-to sustain

Reneral purpose locomotives and reduced in 1951-pernapa higher level of industrial

20 freight engines in this con- tivity as the rearmament pro- reverse.

tract, and it was obtained under gramme gathors pace.

As far as our gold and dollar

flerce competition. Twenty-one This week

these a fore- reserves are

concerned We had

arms from ning countries are taste of the sort of problem we are now large enough to cushion

understood to have compete but must expect in the future. The the economy against any bu

for the Egyptian order. shortage of Imported sheet the most severe copercussions steel, the motor car

"Industry of

situation. of the international now announced, is

BQ acule Bul two factors winch contribut Umt production will have to be led to the recovery in our post- curtailed by 15 to 20 per cent tion are now eliminated. Mar- swell for. at least six months that is stall Aid, which helped until the new steel mill at Mar- the reserves to their present In South Wales, begins level, brus been suspended- Kam, production in the summer, This though we are still to receive will mean a four-day working $170,000,000 this year and week for several firms and there is not likely to be a re some 20,000 to 28,000 fewer petition of the enormous inflow cars a quarter for as long as of capital from North America

lasts. the shortage

which in the last quarter accom- This not only highlights

the

rumours of an panied

up revaluation of raw material problem but, be-ward

the first drastic cut in

(On the contrary,

Kuer production is sustained by the H.

in Al- very Industry which lends all this Inflow was largely

the expart others in

flold, it

of future commerelol ticipation shows how extremely difficult it needs and is now being drawn

cause

-

Ster-

LA

is going to be to produce the upon, our dollar receipts will £400,000,000 worth of probably be slowed down for extra exports which the Chancellor some months to come). said would be necessary to pay fer imports.

The motor car industry as not yet switched over to large scale reemoment production

so even

DOLLAR PURCHASES These two factors did not of

course entirely account for the building up of gold and dollar reserves. Other important fac-

in dollar. without the present tors were reductions. raw material problem the export expenditure and increased dolint programme was sooner or later earnings. bound to suffer. And this is to This year, however, we shall mention only one of hic ex-need to be more liberal in our will purchases from the Dollar Arca porting Industries which be concerned effort.

In the detence and we shall also have to pay more for them.

HIGHER PRICES It seems inevitable, therefore, that if we are to maintain our overseas balance this year the price of our exports will have

Our dollar earnings on direct exports may be reduced as a result of the difficultles involved in the switchover to defence pro- duction.

in August It was estimated that the British lo motives in- dustry had enough work on hand to keep

fully the foundries The volume of business on the occupied for two years. It now Stock Exchange this morning looks as if the companies will was valued at $188,060.50. The be kept busy for a much longer half day's business and noon period,

losing prices were as follow SHARES BUYERS SELLERS SALES BANKS

HK Bank East Asia.. INSURANCES

Union DOCKS ETC. K. Whart Provident S'hai Deck Wheelock

1500

(

85 @ 1200

30 @ 110

150

630

7011

2015

500 0

3

LAND, ETC.

HK Hotel IK Land

17

02/

500 @ 3.35

30

S'hal Land.

1

UTILITIES.

Tram

ૐ

3000 @ 1.03

1052

1000 6 1.05 1600 1,024 200 2013 2000 @ 5.49

C. Light (0) C. Light (N) 3,30 Electric

2015 Tele. (Old) Telo. (New)

Cement Ropo

INDUSTRIALS

L. Crawford COTTONS

Ewo

BOO 10% 1000 6

1000 1111⁄2

1014

1232

Dairy

10%

11710

Dairy (N)

117 @

Watson

10

2.50

Biggest of

Buyer Cotton

to be increased. The situation Finally the first instalment of seems to leave no alternative interest and repayment will fall to the acceleration of world- due on the United States and wide inflation.

Canadian loans at the end of

Rio Janeiro, Jan. 13.

has becoine Japan

Brazil's the year and this will further reduce our reserves by £60,000,-number 1 cotton customer, off- 000 in dollars.

cial statistics reported. Government announced

inflation-the Orc aspect of high price of Sterling Area raw materials has of course play- ed its part in building up our balance of payments surplus. producers of But while the Commonwealth raw materials particularly wool, rubber tin-have benefited from the higher level of prices since the

The the

"RUYS"

“TJIPANAS"

"BOISSEVAIN"

"TJIBADAK"

ARRIVALS

22nd Jan, 30th Jan,

1st Feb.

ARRIVALS .16th Jan

16th Mar.

SAILINGS

17th Jan. 17th Mar, 15th Feb.

SAILINGS

15th Feb,

24th Jan.

51 Feb.

Agents: HOLLAND EAST ASIA LINE

EUROPE via MANILA

and MALAYA

"MELISKERK" "AAGTEKERK" **TJIWANGI"

→In

ARRIVALS

Port 4th Feb, 5th Feb,

SAILINGS

10th Feb. Early Mar,

to

Through Ba/L issued Mediterranean and Northern European Ports.

• JAPAN

"MELISKERK” † "AAGTEKERK"

↑ via Manila,

ARRIVALS

9th Feb,

. Early Mar.

SAILINGS

17th Jan. 8th Feb.

HONEST AIRBETO 2012

The wars our generation has witnessed have brought what wars have always ecling of general insecurity-that's the brought disturbances, unrest and a way of all wars. Industry and mutual trade-useful pursuite of peace-are the endeavours in the opposite direction. This concern has, argued whenever it could, that free access, free intercourse and trade between peoples, contributes to peace and friendliness and security and takes the tension off where diplomats Beem to fail. For, when all is said and done, people want the opportunity to work for a living. Trade and industry, free and untrammelled, not only con tributes to that opportunity, but is a way of life. Vessels of our Line are plainly marked and can be recognized easily when they sail in and out of the principal ports of the world, and we like to feel that they are practical Isbrandtsen symbols of this philosophy:-

INDEPENDENT DEPENDABLE Regular Sailings from Hongkong to New York, Baltimore and Philadelphia via San Francisco or Los Angeles

This pessimistle forecast should following breakdown by buyers S.S. "FLYING TRADER"

of cotton

Brazil

not, however, blind us to the magnificent achievement of the exported during the month of

5,548 tons Sterling Area in pulling itself

December; Japan 3,884 tons, and up by its shoestrings out of the France 801 tons, Australia 584 morass of the dollar shortage in tons, England 345 tons and devaluation.

outbreak of war in Korea, our Industries at home have had to pay higher prices not only for these commodities but for others which bring no propor- benefit to the national tionate economy.

the surprisingly short time since others 250 tons-United Press. S.S. "SIR JOHN FRANKLIN”

STOCK EXCHANGE

All sections of the Stock Exchange revived this week and Monday's turnover was the largest since devaluation. There are several

reasons

for the Some measure of control over strength of the markets. Signs the allocation of raw materials of a dividend "thew" are now period of inflation in the

near future,

to non-Communist countries is evident and with the threat of expected soon. Allocation another as those which lurking schemes such

wartime are not operated in possible in present circum- stances and, whatever means are found. of securing

distribution of raw pome requirements Inevitably remain unestis- fied. The best that Cha be hoped for are long-term plans

a

more

to increase production of those

which commodities

are most scarce and where this is not possible to utilise substitutes to a greater degree together with some form of International or semi-international control on

consumption.

The central authority which may

be set up to co-ordinate supplies could of course in- fluence the price by eliminat- Ing competitive buying between Western countries, but unless the co-operation of "neutral" producing countries in secured this would still leave a large volume of supplies uncontroll

of

To look to the central.com- about drastic reductions in raw modities authority to bring material prices is therefore wishful thinking. Without power to control prices, which would mean the closing down vrelous free markets, the con- trak authority could only mit the amount of

materials raw which any participating country would be allowed to consume. OVERSEAS COMPANIES In the stumtion which faces the Western World. would not be

be surprising expediency political lowed to

today

wend

It

01- purchy The And rundown of stocks have Dow reached a

stage where the countries, of the West | Will

raw material

PENINSULAR

&QUIS NOS

Exchange Rates

market this

18.50 5.90

Business was done in the local S.S. "FLYING CLOUD”

exchange momcial morning at the following rates:- Sterling note (per Y US., dollary (per #1)

Indonesia guilders (per 100) 3.40

Slamicals (per: 100),

Singapore (Stralis) FIC plantres (per 100)

27.00 -109

22.10

RIENTAL |

“STEAM NAVIGATION COMPANY

R. M. S. "GORFU"

SAILS:

NOTICE TO PASSENGERS

BAGGAGE:

Friday the 19th January at NOON for the United Kingdom via Straits, Colombo, Bombay, Aden and Port Said.

ALL passengers baggage must be sent to the Hongkong & Kowloon Wharf Co'a Godown at No. 2 GATE, CANTON ROAD ENTRANCE by NOON THURSDAY the 18th JANUARY.

DUE FROM:

New York via Manila

Jan. 17th

New York, via Manila Jan, 20th

New York via Manila

Feb. 1st

SAILS FOR:

Kobe, Nagoya, Yokohama, San Francisco, Los Angeles, New York, Baltimore, Philadelphia, Canal Boston via Panama Jan. 18th

Pushan, Kobe, Nagoya, Yoko- bama, San

Angeles, New York, Baltimore,

Francisco,

109

Philadelphia,

via

Boston

Panama Canal Jan, 21st

Kobe, Nagoya, Yokohama, San, Francisco, Los Angeles, Now York, Baltimore, Philadelphin, Boston vin. Panama Canal, Feb. 2nd

(Transhipment cargo accepted for Jamaica, Havana and other

Cuban Ports, also Venezuela.}}

LIMITED PASSENGER ACCOMMODATION AVAILABLE Above Dates Subject to Change

For Information Apply to:

A.P. PATTISON & CO., INC.

GENERAL AGENTS: CHINA, FORMOSA, KOREA, JAPAN AND HONGKONG.

12-14 Queen's Road Central 4th Floor.

CHINESE AGENTS:

OVERSEA CHINESE STEAMSHIP 48:Bonhamn Strand West, 1st Floor.

Tel: 25346

CO., LTD.

Tela: 26127 31119.

Pacific Far East Live, Inc.

Fast Rogular Trana-Pacific Service

INGOVERLAND

NEW YORK-UNICAGO, DETROIT-TORONTO, MONTREAL AND ALL'AMKBIDAN & CANADIAN CITIES"

Jan, 19.

on

BAN FRANCISCO, Los Angelos

DIRECT

Vessel

From

Arrives

Ban Francisco. San Francisco

Straits

Jan. 18

Jan. 20°

Ban Francisco

Siralte

Feb. 4

· Feb. 21-

TA. $.

SPECIAL NOTE: With the exception of hand packages

carried by passengers themselves, ALL "CALIFORNIA DEAN“ BAGGAGE must pass through the "TAILIFTINE ›DEÁR" Wharf Co.'s Godown for Londing on "AN. ANDRIO VICTORY" board by ship'a slings only.

*3. L. LUCKENDAUNT

EMBARKATION: Will take place on FRIDAY the 19th "NDIAN DEAR".

JANUARY between 0.80 Am. and, 11

Aam.

· Jan. 21-

Jan. 30

Feb. 7.

Ban Franciaco & Los Angeles)

Sinkuporo, Djakarta, Colontio, “Bombay, Karachi "fr"EMERL San Francisco:86-Los Ange

Ma „Zápan A Singapore:-Djakarta, Dhembagian

Karthi,&

mor

San Francisco de Los Ancien

Via Robe

For full parilonlarm onti General Arculs, United States Lino Os: Quitat' Ballding, Tol: