1953-03-23 — Page 9

Share Prices Improve

(From Our Correspondent)

London, Mar. 22.

The stock marketa closed the week in good fashion following carlier unsettle- ment caused by the high- handed Soviet action against British and American planes over Germany.

by

Dastinee

Gilt-edged and industrials re- sumed the upward trend; the

market. was Stimulated Chancellor Butler's that there will be good news about the gold and doikr .SETVLY.

ye-

Furnishing companies and carpeting manufacturera general-

TOMAÍN

frm on Salle factory dividend announcement coupled with indientions that

mublie's the

THE CHINA MAIL, MONDAY, MARCH 23, 1958.

Increase In Dividends By

British

Banks

London.

The increase in the National Provincial; Bank's dividend made it inevitable that, the question of higher dividends would be raised at the meetings of the other banks,

Broadly speaking, there were two questions to be answered.

First, could the banks have prudently increased their dividends? Second, would it have been wise for them to do so?

nown

<i

Duly arc

In brief, it is said that a general increase would be infla- tionary, and more precisely that it would set in motion à round of wage demands.

While the rst question is one fit let it be known that its policy. of the resources at the disposal with regard to dividends and of the banks, the second raises wages was still one of "continued

th issue which spreads far voluntary restraint." power beyond the banking world.

That is a matter on which a remains und rises, stabilisation

The arguments in favour of the great deal could be sald, and, so Tobarros showed

the statement

company for as dividends are concerned, it cheered by

of of dividends

100 well is already creating certain Imperial Tobacco Chairman, known

problems, Sir Robert Sinclair, that lif- ficulties in dollar purchasing had always been

OVCTCOINE in the past and he saw no reason why they should not be overcome in the future.

Insurance shares also showed rises after the giant Prudential and Perl

" companies stepped up Elvir dividends. Both

1/19 companies have been increaslay: Thele holdings in equlties ofher the war and their camnings are now, benefitting from the relaxa tion on divided control.

TEXTILES IMPROVE Textiles closed cheerfully on news that textile exports are rate now ruming at a higher that at the end Jast year.

Engineering shares remained

steady.

On

Kafirs closed firm with em- urinkum producers phasis and developers following thu shake-out of weak positions lost Tuesday which marked the end of the count and of the Stock Exchange year when brokers were unwilling "to affort carry- over facilities,

Commodily stires were in the main featureless due to un- certainties regarding the broad trena of world commodity prices over the coming year.

pty with the world's expanding

production.

stevi

effect:

rearmament if the

[

new

This last point was very likely

in the Government's mind when

U.S. Cotton

Mission To Far East

દા

Washington, Mar, 23. The United States Department of Agriculture announced yes- terday that it was sending marketing Specialst, Mr Carl Campbell, to study ways of in- creasing American cotton exports to the Far East

A Campbell's mission was part 01 fui cort to promote agricultural exports, the Depart mt said.

HAVE TO LIVE

One must admit nt once that there are many companies which dividendis, whatever their desires, could not increase their

Taxation, depreciation, replace ment costs are all prior charges, and by the time they are met,

here is not much over..

But there are many companies which could

pay higher dividends, but which prefer to plough back their surplus carn- ings into their own businesses.

Now shareholders have to live just

as much as other people, and there are thousands of share holders with pitifully small in comes. Dividends which in 1939 are far from were adequate adequate today.

Jap

Mission In Taipei

Talpel, Mar. 22.

A seven-man Japanese trade Jelegation from Osaka arrived here from Tokyo today.

The mission la expected to lay here for several days to investigate focal

·cotiftians and 'confer With trade circles for the pur- pose of promoting trade between Nationalisi China and Japah-France-Presse.

URANIUM GIVES MESSAGERIES

NEW LIFE TO MINING

FIRMS

London.

To the shareholder in South African gold mines aranjam is something of an enigma.

There is no doubt that under the contractual arrangements now being entered into by the Union Government it will prove a new and fruit- ful source of income to the 'mining industry for

More Out the next dozen years. Of Work In Japan

the

Tokyo, Mar. 22. Japan's employment situation is deteriorating owing to

intensified international trade competition, an official survey indicated today,

It will be of particular bencht been neglected. Obviously the to the low-grade mines, and will result will be to increase con- give a new lease of life to those siderably Randfontein's total mines which, apart from ore reserves. and this will be uranium, were becoming unpro-true of other mines. fitable. Here, of course, every- Randfontein proposes to spend thing depends upon their being £3,780,000.

partly on

on lis uranium placed upon the fit of scheduled plant and partly on an adjacent producers.

plant for the manufacture of The The enigma arises from the sulphuric acid. This money will security precautions be found by the Government In by the South

African the way already described.

chronte business depression and sent

upon everything, to Į

Certain mines, however, intend do with uranium.

to shart plants between them. Under the 1948 Atomic Energy Thus the Anglo-American group A Labour Ministry check-up

Ach

the right to prospect or of Orange Free State revealed that

mines is the industry's mine uranium is vested in the probably to have two plants, one heaviest hit by the depression is spinning, in which field 10 major Slate. The disclosure of infor- at Welkom and the other at

mation about manufacturing companies

dis-nual output, or the price paid!

mid We elkem plant will handie alimes ployees last year w charged 30 per cent of their em- while cancelling fresh

employment this The number of unemployed in December in nt industries combined totalled 470,000- 12 increase from the per cen: corresponding month in 1951, the survey showed.

ore reserves, an- President Steyn. Normally the

The retrenchment in personnel due to rationalisation of indus- tics, also helped in Increasing the unemployed, resulting in the falling off of employment figures in all industries and even affecting the "prosperous" branches, such as the wholesale and retail trades, banking, ing

transportation, to say that surance, higher dividends would mainly public utilities.

By the

regular employment benefit the rich man. time he had paid his sur-tax one cent from the previous for January dropped by his higher dividend he would

month in the case of all indus have precious little left.

trics, and by 0.6 per cent in the manufacturing industry alone. Employment in the

Nor is it true

PLOUGHING BACK

The

and

Tho

4

In case

need.

Similarly, Stilfontein and

for uranium is strictly forbidden. from Free State Geduld, Western

minca scheduled

Welkom itself, and Holdings produce uranium supply it under while the other plant will look a ten-year contract to the Atomic after the two "Presidents."

But Energy Bourd sells it to the British and Ameri- the other

which in turn each plant, will be able to help can Goverments.

The terms o the contact are Western Reefs are apparently to to cover that the mines receive sufficient share a sulphurie red plant.

the repayment, with It is also possible that Blyvoor Interest,

of the capital cost of the and West Driefontein will share necessary plant over the ten-plants, and this may explain the. year contract, together with laiter mine's decision to

to postpone further reasonable prolit,

indefinitely the erection of its ESTIMATED REVENUE

own plant. Both these mines are Until fairly recently that was so rich in gold that to them most of what was known, but one uranium will be of less financial or two further facts have now importance than it will be to

be emerged.

some of the low-grade mines. Dr

publicly It is clear from the above that estimated that the gross revenue the gold-mining starcholder is uranium to be derived by the mines from still faced with several im- million a year, before deducting is the size of the additiong! In-

$.30 ponderables. But all

they

affect

come which uranium will bring The capital cust of

the the mines. There is no doubt necessary plant is expected to be that there will be additional during the ten-year period. The be enough to make a consider- Government will And theable difference.

capital, so that the necessary mines will not have to raise it themselves.

costs.

Malan

bas

will be about

Still some shareholders would printing, and food indut £40 million, to be repaid income, and in any case it will

# added that overseas sales of guin from higher dividends, and

appointing. rotton this season had been dis-they might even spend the add-

ditional proceeds.

On the other hand, they might invest them.

Sosa, Thailand, Paitistan and] part of their shareholders' in-

Q

the

It all depends upon whether the business concerned is one which whether, in these days of general ought to go on growing, or

shortage of private savings, such ought to money as is available be invested elsewhere.

It is also

that it argunble would serve the national interest best to give shareholders--who are also investors reasonable

ploughing back

گرده

which had shown a slight in- crease due to being favoured by the special procurement United Nations war goods and orders, also began to decrease,

survey showed.

the

about

For tax purposes, any profits NEW PAPER

made by the mines from uranium will rank as gold profits, und so will be taxed according to the tax formula fixed for enchi particula PROJECT IN mine.

The Fuji Spinning Company, one of the big 10 in the spinning field, has announced that 15 per

. cent of the total employees will be discharged, while the other

The mines will equally leading firms, including the Dai Nippon Spinning and the Toyo get the normal tax nilowance for Spinning Companies, have the forthcoming mass dismissals. niceady notified their unions of tion in respect of money spent on

the

ať construction uranium plants.

NEW PROCESS

-

France-Presse.

Shipyard Building Statistics

capital expenditure and redemp-N.

.

ZEALAND

Auckland, Mar. 22.

10,000

for A new township it has long been known that people will be bullt under

scheme for a giant £27,000,000 gold-bearing ures also contained uranlum, but it is only now that, pulp and newsprint in- Murupara, Norths the uranium is to be extracted, ustry in

Island, New Zealand. The new process begins with

This was announced today by the "slimes" leit behind after the Mr James Fletcher, Chairman of extraction of the gold... These consist u! "Alter cake,"

ид-

Was

ake," which is the Tasman Pulp and Paper form of hard mud. The filter Company, which is operating the cake is mixed with water and project. Mr Fletcher also nounced that his company then

fed into tanks of dilute

£7,000,000 for the sulphuric acid which-dissolvessing out the uranium. After further scheme from the United States chemical treatment, the uranium

Export-Import Bank, emerges

in the form of uranium oxide, which is soký authorities.

After

conferring with Amerl- 1ad and zinc shares have

ean cotton exporters in Memphis, been specially depressed for,

Houston and Los Angeles, Mr That raises a new question. Is while zine's price has recently

Campbell will go to Japan, it right for directors to retnin recovered slightly, it is believed that lead has still further to fall,

come and reinvest

it in their Even mungamese shares re- The

Fundamentally, numed full although the posi-

Department announced own business? that cotton exports in January that is what ploughing back remains basically tion

strong

amounted to only 304,000 bales, means, due to the present high price and continued demand to com-

compared with 485,000 bales in the previous month.

For the first half of the cul

August WORLD SITUATION rent markeling year,

1053,

exports Overshadowing the commodity | 1952-January market are the prospects of de-fotaled 1,801.875 bales, only 40 creased parchasing for stock- per cent of the amount for the same period the previous year, piling and West now reaches a settlement Shipments to Japan were 44 per cent lower this year, and with the new Soviet regime.

Slowing of the West's rearma-dia had taken only 27,018

freedom of choice. ment tempo would have tem- bales, against 474,142 bales porary cite

at least on many year ago.

The Department pointed out,

ANOTHER DANGER industries.

today, in its publication "For- in the However,

Excessive long-term the

eign Crops and Markets," that world's expatcting | world vlew

had brings with

it another danger, prires. collon industries raust inevitably neces-dropper,

that of nationalisation by a a big increase in commo sitate a

November,

future Government. Since

If past production dity

New York, Mar. 22. precedent is followed, everything urtd margin between forelgt: Mordover a genuine peace Anterian prices for colton had ploughed back will be cun- A tolal of 1,740 merchant settlement, coupled with expand-widened, Pakistani, Syrian and fiscated, simply because it has ships, or 1,000 HOSS

(ons and ing consumer markets in Asia, Birkish

All over, were currently become part of the business.

under construction could sell herald an era of un-quoted in European markets at the shareholder will receive will o on order in snipyards in the precedented International busi- thret to four

pound be compensation based on the principal countries of the world ness activity with international below the

at the start of Lis year, ne any mine will attempt to over- price of American current Stock Exchange prices of trade more than absorbing the

cotton, it said.-Reuter.

his shares. If the company has Shipbuilders Council of America world's production

continued to exercise "voluntary reported. materials at the prevent rate of

dividend restraint" those prices This compared with 1,701 at supply..

will be that much lower.

the start of the fourth quarter Additional considerations are last year, and with 1,714 on January 1, 1952. Ships on order the higher level of interest rates compared with eighteen months or building at the start of this Totalled 15,020,700 gross recent spate of ago, and the bids for shares. If this last tons, compared with 15,808,703

continues,

on

and 14,274,501 on phenomenon

October 1, may well bring about an increase in

January 1, 1952. dividends in such cases where an

Cargo Vessels,

at the start of increase would be prúdent. this year, numbered 002 with All these points suggest tent There were 731 tankers totalling total gross tonnage of 4,747,047. Wheat importing nations may the general question of dividend

9,851,415 gross tons, and 114 make further moves next week policy in becoming ripe for re-

combination passenger cargo to break the price deadlock consideration. So for as bank

ships with 1,030,718 gross tons. they are which is blocking a new inter-shares are concerned, national wheat agreement. well worth holding. Dividends

will

and may not be reduced,

of

raw

Stockbrokers, however, are not prepared yet to look so far ahead,

HONGKONG

SHARE MARKET

(From Our Correspondent)

Business done on the Stock Exchange this morning umount- ed to $193,185.40. Noon quola-

Inst

cotton was

cents a

New Move

In Wheat

Discussions

Washington, Mar. 22.

year

the

Another £10,000,000 is being raised in London, and the New Zealand Government is putting up £5,000,000.

They

So far it seems unlikely that

Canada will provide most of the equipment purchased from of waste rock. dollar areas--22 per cent of the haul its dumps The cost would be enormous, total. there would be the problem of

The Tasman Company's mills finding ground on which to re- dump the rock, and it is most at Onepu are expected to be in

production by late 1955. unlikely that the rock contains will be able to produce 75,000 uranium. Nor are most of the

(ans of newsprint a year, 30,000 mines likely to attack their existing silme dums, although tons of Krafi pulp and 72,000,- one or two In time may do so, 800 board feet of sawn timber.

It has been estimated that the The main source of uranium

the Sterling will save will be low-grade ore, which is plant unprofitable to mine, so long as it Area $20,000,000 a year.

The scheme was originally 13 6 alone.

& question of its gold content

to be a Government Thus Randfontein has intended announced that it now intends to project. But now the State will mine from its Bird Reef, which is have a part-but controlling

is duc its reef with the lowest gold con--interest. Construction

Britain continued to lead the tent, new construction with 092 vessels of all types totalling 8,181,242 gross tons. That was here is a 39.5 per cent of the world total. Following Britain was Ger-

The importing nations, headed by Britain, have planned possibly be increased. The main meetings for early next week risk of depreciation

ut which they will decide on further rise in interest rates.

tlons and the morning's trans-what to charge in the present Industrial equities BTC D

nctions:

SHARES BUYERS SELLERS SALES

DANKS

1 Bank XD 1340.

East Asia ...

INSURANCES

148

Union 715 795

Underwriters

SHITING

Asta Nav... DOCKS. ETC.

K. Whart XD N. P. Wharf Dock

Provident XD........ Shat Dock Wheelock

MININO

2.40

1.40

2000 1.40

ca

8 0.20.

10

200 * 18.00 1000 < 150

the

to many, 227 ships of 1,791,000 different matter. One test is to dispute,

gross tons and 11.4 per cent of The Importing countries have see how well the dividend of

total; followed by Sweden, refused to agree to a new ceiling particular company is covered by 177 ships of 1,005,935 tons and

If it is

10.3 per cent; United States, 02

price for wheat of more than its current earning over, iní vessels of 1,300,000 tons and 0.4

in

covered several

times

some

$1.95 a bushel

The exporting nations are course of time the directors may per cent, Holland, 140 ships of of the 1,179,092 tons and 7.4 per cent,· demanding $2.15 a bushel, or 35 be influenced by cents above the price for wheat above considerations, Conversely, In sixth place was France; in the present agreement which if the dividend is not thoroughly well covered, or if the business Informed sources believe that is liable to be affected by the negotiations will break down ups and downs of trade, the

an agreement unless directors may be unable to in without 1300 10

further price concessions are crease the dividend, whatever Investment is still Some sources believe the ex- a business calling for unremitting paring nations would drop care.

10.00 11.19 T

. 1.00 1,20

HK Mices LAND, ETC.

Jotel XD

NK Land

(014) XD

7.30 7.40 1300 71%

T

2000 738 7.35

1000 on

10000 m 2.Bo

100 471

offered y both sides.

their demands to $2.10 a bushel.

The importing nations also

their desires.

plan to meet this week.-Reuter, Rubber Futures

lumipexiss x 10001425 Japan Producing

Healty

UTILTITES

Tram XD...

Star Ferry

.12.30

214

5000 # 2.38

20

100 Xp

G. Light (0) 9.40 0.00 2000 p* 040

3000 - PAS

C. Light (N) 0.03 0.10 1000 0.00 -Mectric

XD 2135 21.50 434 in 31.40

Tel. XD .... 15.00

More Bicycles

Tokyo, Mar. 22.

In S'pore

Singapore, Mar. 21. Prices of rubber futtires- closeti today as folibws Number 1 rubber, por 1b.

April May

Bleyele production in 1052 was 1,018,815, according to the Japan Bleyele Association.)

Production gradually roso during Dio ́ercond half of the Number 3 rubber,

100 64 21.00

60 + 10.80

000 s. 10

INDUSTRIALS

Cement XD, 34%

BTORES, ETC.

year, reflecting increased

Dalry..., 1930 19.40

Watson XD 20.40

27

ย!!

Crawford

CUTTONS

Ewok

mand from abroad.

cour

Junio Number 2 rubber,

Apru

April

tudy.

de Number 4 rubber, ex-Spot rubber, Unbaisd

Blanket crepe.... the No. 1 pale crepe

Production this year is

above pected 1,200,000 level-France-Presse.

►

with 35 vessels totalling 854,098 tons--3.5 per cent of the world total followed by Japan, 60 ships, 050,010 tons, 4.2 per cent; Norway, 80 ships, 027,780 tons, 4 per cent, Denmark, 67 ships, 372,300 tons, 2.4 per cent, Italy.. 32 Ships, 354,068 tons, 2.3.

3.per cent; Belgium, 27 ships, 203,701 tons, 1-8 per cent; Spain, 33 ships, 172,770 tons, 1.1 per cent;

Canda, 11 ships, 107,160 lips,

.7 per cent; Australia, 17 ships, 76,028 tons, 8 per cent; Trieste, 8 ships, 61,100 tons, 4 per cent, and Eire, 2 ships, 2,900 tons, 1 per contAssociated Press,

Exchange Rates

2315-39 7:34-3%. *7016-%%- Business was done in the local unofficial exobenarn · market - this artis morning at the following rates:

and which hitherto has to begin In September.-Reuter.

AMERICAN PRESIDENT LINES

S.S. PRESIDENT WILSON

sails for

HONOLULU and SAN FRANCISCO via KOBE and YOKOHAMA

on Tuesday, March 24, at 10 p.m.

First Class (passengers are requested to board the vessel with their Cabin Baggage on Tuesday, March 24, between 8 and 9 p.m. Third Class passengera are to embark between 7 and 9 pm.

"

Baggage Room and Hold Baggage will be received in Godown No. 50 of the Hongkong & Kowloon Whart & Godown Co., Ltd. (entrance through Gate No. 2, Canton Road, Kowloon) on Monday, March 28, from 19.a.m. to 4 pm, and on Tuesday, March 24, from 10 a.m. to noon. No baggage will be accepted for

registration after this time.

(0.8. dollar (per 913.

Sterling note: (per £1) Indonesia itilders (per 100)

13.30

Blam Llouls, (per 109).

20.00

ST. GEORGE'S HLDG...

63-05

Singapore (Biralis)

10.54

--United Pre

XIC plastros (per 100)

14. F.O. BOX 31,

PHONE: 28172/8.

Outwards

M