1953-04-08 — Page 9

THE CHINA MAIL, WEDNESDAY, APRIL 8, 1958.

Convertibility Of Sterling Delayed On

American

Insistence

By Ronald Boxall

Lotdoh, Apr. 7.

The conciliatory attitude adopted by Mr Butler at the Council of O.E.E.C. meeting in Paris has given rise to second thoughts regarding the outcome of the earlier Anglo- American economic talks in Washington.

Communist

|

Severe Setback In Tin Prices

London. Apr. 7.

The Korean peace moves caused severe selback,it tin prices today.

with £70 per ton sliced off int Thursday's closing quota- tion on the London Stock Exchange.

Sellers Asked £835 per ion (or spot deliveries, while forward deliveries were quoted at care.

THE #pot price Has talici by €100 since April but in more than £200 higher than the pre- Hortal level-Reuter.

HONGKONG

SHARE MARKET

From Olie Cotidipondent)

ESTATE

DUTIES MESSAGERIES.

M

INVESTMENT TRUST FORMED

(By Norman Crump, The Sunday tilhas City Editör)

The formation of Estate Duties Investment Trust marks an important motě (d assißt private companies which are in danger of being crippled by the payment of estate duties consequent upon the death of one of their chief owners.

„Outwards;

MARITIMES

M

PASSENGERS/FREIGHT SERVICE

"FELIX QUSSEL! "LA MARSEILLAISE

Homewards "FELIX ROUSSEL" ..

- tgaven Marseilles

17 Apt.

Hongkong

12 Apr.

MARSEILLAISE" 22-23 May

Hop Rooz

18-12 M

La Marseillen

Fyr Mažia Tokohama

Via

20 May

13

June

Salgun dalgon

Vis Marseilles to all Medietiden & wedt Attica ports. via Djibouti to Madagascar.

Outwards "MONKAY" Homewards

"MONKAY"

This new institution is sponsored by the Industrial and Commercial Finance Corporation, "MEINAM" which is taking up one-fifth of its initial capital "P-HO of £1 million. The remainder of the capital is being found by certain insurance companies and investment trust companies,

Transactions recorded on the them of their to ensure less than £100 a lon. With the.

It now appears that, while giving its official blessing to the idea of an eventual advance towards convertibility for Sterling, the American Government asked Mr Butler to dela y his plans until other West European countries were ready to join in a general assault on currency restrictions. Indeed this would be a logical compromise, for the United States has given almost equal importance to plans for closer European economic co-opera- tion as it has to its advocacy of greater freedom for currency and trade.

Hongkong Stock Exchange this In any event Britain has now fact, to on rising The Econo-thorning were valued at $507,- retraccil some of the steps she mist" survey suggests that the 627.80. The quotations at noon took in November 1951 and again rate of such spending may begin | were: in March of last year when imports were slashed to arrest the loss of gold to Western Europe.cession may be avoided by The decision to raise the quota prompt American Government of certain imports and to free action. others from all restriction will enable Western Europe to earn a further £32 million of Sterling

The important question, how- in the second half of this year. These earnings should be raised ever, is what cort of action would be required by Britain by another £8 million as a result of the higher curteney allowance and other Sterling Area countries were re- Britons may now cinker when the events of 1949 they travel abroad.

1934 ponted

1955. The Economist" These concessions were

pe:- Significantly,

question haps inevitable,

France and deals

Economy Notal For India

Sir

-Says Finance Minister

to seeline some time in 1984. BitARES DUYERS SELLERS SALES Event then, a "pause" or a re-

ORDER OF PRIORITY

in with

ор

DANKS

HK Bank INSURANCES

Canton

Union

HK Fire

20+ 1390

248

SIUPPING

Asla Nav

DOCKS. ETC.

3,40

70

KC. Whart

Assistance of this kid will not, Northern Rhodesian solve the malt problein,

copper for mines, for it would diminish the denth duties will have to be intensity of the competitibh from pald. Yet it will obviate the aluminium. Atalh these inliics need of selling private businesses are able to produce at to strangers.

relatively or of depriving low cost. N'Chauga's production

nssela. In | rossa

Including rayditis. dre, this way it will the continuity of numbers of current price of copper at £280 small concerns which form the n ton, there is tosti, for

life. substantin reduction, while bull backbone of our indudes not leaving mines such as N'Changa |

One million pounds sound a lot of money, drid It may with a substantial margin of be fair to describe the new profit. institution as "pilot plant, be enlarged

experience There are, of course, other gained and the demands for its doubts.

tet

Recent labour troubles assistance Increase. Yel the in the copper-belt have left their kind of business

which

needs mark, while the problems of fuel this kind of help colaists of and power have not yet been

solved. cases where the valuottoti, for

Finally there is death dutles les between £5,000 question of future world demand, and £100,000. Where the valun- and this depends on the question tion is less than £5,000, death

enth whether or not there is an duties 7.30

N.. Pt. Wharf 0.15 0.20 1000 6.20 Dock

B00 $ 19.00 1800 18.00

7.30

New Delhi, Apr. Chintaman Deshmukh, Tinly, who have both been badly though the present plan for LAND, ETC.

400

Provident 1.10 11.50 Wheelock

715 7.63 2000

1500

2.00 7.40

5000 L

200 7.45

1000 4 7.49

43

50 100 ## 5511 1.00 1000 1

It

HK Hotel

this

the Finance Minister, sald here hit

by

British the

did import convertibility not exist, today that under

policy prevailing restrictions were threatening to points out that British po

Pod, in the event conditions in India "neither retaliate by cutting their own should.

of even a Cominunism, Socialism nor any Imports from this country, slight American recession, do other such system will work." Nevertheless, Beftain's decision

Its dallor-earning power He was replying to a two- to reliberalise part or everything in its power to main

Lain day debate in the House of the trade with O.EE.C. countries is this would have to be done even People (Lower House

not without significance. of no

Until

at the expense of some un- Paritument) budget de- quite recently British officials emp

ducing consumer

goods and at relations certain with countries. For Britain would have to resist their demand for British capital equipment and other potential dollar-earning have goods.

mands for grants fur his were still Insisting that the employment in Industries pro-

time had not yet come to lift the risk of embominoniealth

studled

import restrictions. The ques- wi different economic systems at work in tion is what caused them various parts of the world, he change their mind? thought that given certain con-

ESCAPE CLAUSE

nore

#

HK Land S'hai Land..

Tram

Peak Tram

(New)

Um.. 13.10

Star Ferry

C. Light (0)

can probably be paid out American trade depression nexi of the proceeds

of insurance year, and if so, how serious it policles or other

resources out-{will be, side the business. Beyond the 744

upper limit a

is large company enough to raise capital in the market if it so desires.

. 21.00 22.30 1500 or 22.10 100 6 22.10

10 102

10 10.10 700

3500

10.20 1500 10.20 10.10 309 10 12010

C. Light (N) 0.50 0.00 2000 M 6.00 1000 0.00 Electric .. 21.10 23.10 239

Telephone

INDUSTRIALS

strument STORES, ETC.

500 23.10 603.10 100 23.20 $150 6 13 100 110

2500 + 20.10

500 15.20 20.60 20.10 3430 6 10.70 Watson ... 21.90 22.16200 of 12 L. Crawford COTTONS

Ewo

2.30

000 23

THE REAL PROBLEMİ To show the real nature of the problem, two examples only need be quoted. If the valuation is £90,000, death duties come to £8,000, if it is £00.000, then £17,500 has to be paid.

Life psurance cannot help much here. If the owner of the business in the hope that it will cover carries a life polley of £17,500.

his death duties, then the total value of his eslate is raised to £07,600, and £27,000, or an

tra £0,500, extra

Is payable lh death duties.

of

It will be scen that with amounts

this magnitude involved, even. £1 million will go quite a long way. It might évén meet the needs of 50 or 216 1400 6 2.49 do businesses. By that time ex-

600 @ 245

·

2000 or 2,35 3000 2.35

than one system i Even more signißeant is the could be rude to work, he said, fact that British omeinis

Sir Chintaman

Deshmukh also modified their ideas con- sald one had to discover whether cerning the renewal of the Other steps suggested by "The under certain conditions ity a Europorn Payments Union Economis!" to counteract the country

could choose ajagreement. A short lime ago,

effects of an American recession particular farm or

Britain rather un-

Dalry was insisting on the are in order of priority and orthodox form of

uisertion of an "escope clause" desirability" tighter import of economy. Ile said Communist members in the agreement giving her the restrictions, but against dollar seemed to be "somewhat starry Union on three months' notice. and

right to withdraw from

20.50 the imports only; price stabilisation eyed" and did not realise that he has now been changed to/LAJAI

stockpiling schemes for Communist economy required

materials; MISCELLANEOUS to Sterling Area raw extraordinary ruthless leader-request-granted by other and dipreciation of Sterling.

Hongkew ship and preparedness by the members of EP.U-for a for- It is cleur, then, that the

Really population to tolerate hardships mula to be written into the effects of an American recession which would never be tolerated may withdraw from the Union would in any case be extremely agreement whereby a member on the Stering Area's econoiny Democratic systemat

only after ample notice Hida bech

But the danger would grave. given and other members have

be greater still

it Sterling was had the opportunity of discuss convert

convertible into dollars when It.

the crisis struck.

The Hkellhood is that it the agreed lo an extension of the

recession

came towards the end E.P.U. system for a further of 1854 or some time in 1955

months from June 30

Common-ves the

severe

In

any Reuter.

Chicago Grain The fact that Britain

Futures

has

t-is-regarded-as--a-clear-In-Sterling would in fact be con

N.Y.Foreign Exchange

England-flickil

unolicial

30-day futures 90-day futures Australia (pound) Now Zealand (pound) South Africa pound)

vertible, for though the Com Canada (dollar) dication that Chiengo, Apt. 7.

on-monwealth plan may proceed at wealth plan received a

more leisurely pace than was Chicago grain and the leading setback in Washington. Euro- Birst intended there is commodities

were zenerally

Sternt first convertible

nothing higher.

Union to suggest that it will be aban wreck the Soybeans took the leadcan fears that conve en the ovence. Wheat elesed have apparently carried more done

ling would

doned altogether. In that event, teslay to higher und soy-weight in the United States the drain on

the Sterling Area's Leans were 15% to 2% higher than the lofly aspirations of the gold and dollar reserves would Prices closed today as follows:- Commonwealth Prinic Mini-be all the greater and might even lead to a second-and more Wheat-price per bushel

into There may, however, be an- permanent-retreat other reason why the original rency restriction.

STERLING RISK Commonwealth plan, which al-

Though this does not neces-

most certainly

tera.

Spot

May

July

September

December

2.274-72 2291 2.34-2.33-

Corn

Spot

niny

July

September

December

Ryc

Miny

July

-1.5333

1.507-76 1.03%-2

1.57

1.0415-34 1.68-1.67-24

0118

May

71-71-28

July

New York four-per 200 lb. Sock. $1320 numainal.-United Press.

envisaged an

Clasing Rate

April 7. US$1.01-10/10 2.8121

2.44 bid/ 2.07 caked 2013 2.011

resources

and

For thest reilabris. Rhodesian copper shares should be ap- proached by the investor with a slight alr bf exqp. I have little doubt as to the ultimate

FREIGHT SERVICE

„Dudkirk—is Abt.

•Keelung-28 Apr. „Keelung~~23 Ma Keelung-29 June

Hongkong

21 MKY Hoarkode

30 Apr. 30 May

1 July

Fur Japan

For

+

+ Saljon, Marseilles, Alglère, Oran, Tanklórs, Casablancs, Le Havre, Antwerp, Rotterdam & Dunkirk CIE DES MESSAGERIES MARITIMES P.O. Box 53, Hongkong Queen's Building (Gr. Floor)

Tel. 26661 (8 lines).

MAERSK LINE

FAST FORTNIGHTLY SERVICE TO:

NEW YORK, BOSTON, BALTIMUSE & PHILADELPHIA vin SAN FRANCISCO. LOS ANGELES AND PANAMA.

NEXT SAILINGS

m.v.

"LEXA MÁEESR"

m.v.

"PETER MAERSK"

May

m.v.

"JEPPESEN MARRBK"

ARRIVALS FROM U.S.A,

m.v. in.v. m.v. "QÜÈTE MAERSK"

"LEISE MAЕДBк"

Apr.

"JEPPESEN MAERSK"

outcome of the industry, and 1 For Freight and Further Particulars please apply to:-

of

certainly, do not advise the sale

couper shaths

ffy anyone who holds them. On the other hand, this may not be quite the right moment to Buy them.

NY. STOCKS STILL ON DECLINE

New York. Aptli T. would have been The New York stock market

after over the institution's advanced today could be enlarged.

Coming carly heavy selling The keynote of the new pressure. Institution's operations

will be

The market has been under Rexibility. In the case of a severe selling pressure since sound, sold business, it may be the start of last week as a te-

content to take un

up debentures, sult મ Communist peace however, the management Is gestures around the world,,

in need of reorganisation, the Wall Street fents the trekt institution may prefer to take on business of any change in up ordinary shares with consequent powers. It their the defence spending pattern

want re-

must

be that might grow out of the international situatión... emphasised. however, that the Present

Yesterday's market suffered institution has no intention of

ention of its hardest fall flee the week taking part in the day-to-day

started in management of such companies the Korean wir

June of 1950, Today It will no it helps, nor

the at presentation

opening the on their

boards, but resistance to the

Felling

continued. declino On the other hand, if it thinks that the wrong people are in was tiedlately apparent,

first hour of trading charge, it will take steps to see that they are replaced by the the rigin people.

timplanted resistance

With

and

d. Railroads led the

list higher with gains ranging

In conclusi i, the upper limit from dractions to $2 a share while

of £100,000, mentioned above, is losses were from fractions to a

by no means sacrosanct. Some dollar a share.

2252.

2.82

Belgium (franel

.019915

cur-

Denmark (krone) France (franc) West German

Deutschemark

1455

.0028

22305

Holland guilder)

$15

Italy-official

.0016

Norway re

.1405

Portugal (escudo)

.0350

Spain (posels)

0260

Sweden (krone)

.1035

Switzerland-free

034

MIDDLE EAST

03/29

ald

B is necessary.

ANGLO-AMERICAN

аге at the

early advance towards conver-sarily mean that Sterling should libfity, has now been modified remain forever Inconvertible, it into a vague hope. of glving does underline the risk of freedom to the Tound at come attempting оп experiment of Indennite future date.

nature unul much more this One of the conditions on adequate reserves which the plan depends is a Sterling Area's disposal. It may continuation of the present explain, too, why, official en- high level of industrial activity thusiasm for the Commonwealth and therefore in demand for plan shows definite signs of Sterling imports in America. woning. There can be no definite assur- ance, however, that this condition will be fulfilled.

Indeed, the "pause" in

London Rubber possibility of

Futures

London, Apr. 7.

The rubber market was quiet.

Prices closed today

lows:-

Number rubber. In pence

per lb.

June

May

July/September

October/December

Januars/March (1954)

American economie growth some Ume in 1954 or 105 is now being widely discussed,

PRESENT FEARS

Present fears that next year

#s fol-or the year after might see n

recession-slight or otherwise-

1920

NY Sugar Futures

New York, Apr. 7.

in America are based on the World sugar futures clood to- 1914-20 known facts about the United day 1 to 4 points higher with

States defence programme. Ac-sales totalling 307, contracts. cording to "The Economist", Contract No. 6 closed today

devotos week

2 to 4 points higher with sales

1912-20 1014-20

10

United Press.

NEW YORK RUBBER FUTURES

New York, Apr. 7.

Dealers reparted a lack

Number 1 Standard

May

July

September

December

March (1954)

22 Att

2330

23.10

23.03

of

which this

special survey to the subject, totalling 56 contracts. American defence expenditures

follows:

Fayl poluid) Iran (rial) Iraq (diner) Turkey flies) LATIN AMERICA Argentine-oficls1

Brazi! (cruzeiro) Bolivia boliviano) Chile-free Columbia (pcsol Cuba (pepo). Mexico (poda) Ferre

Uruguay (peso)

Venezuela [bouvor)

FAR EAST

Indin trupee)

Paklatan rupee)

Hongkong

Indonesia

Sinilipore

Japan

$115

3043

0000

360 yen 10 US$1.

-United Press.

LONDON TIN MARKET

DED-3145

sensión os follows:-

3.20 bid

3.21

Spot in, buyer

Spot tin, selier

863 67D

3.29 bla

Business doɑne på ..................

3.30 bld

Three-months tin, seller

Three-months tin, buyer

010-865 DEO

043

3.29 noinital

Business done at Bettlement

; DGS.

Contract I

3.11

No.

5.85 nominat

July September November March Spoi

8.01

Cliniied Prem

large companies may not wish

million

Two

six hundred to raise capital on the market. thousand shares were trades. even although they dre in a

Some petroleum, stoels and position to do. so. In such craiferafts joined the advance, tho new institution may be At Chicago willing

closed to join with its own higher, May, wheat, shareholders in providing such a Bushel: ay naize 150.5.

Collon futures clored eleven hundredths of a cent per pound

g375 cents

The 1952 profts of Anglo-higher to one Hundredth lower. American at £3,015,000, com- pared with £2,091,000 for the previous year, are satisfactory. În judging

July October Spot.... them, it must be remembered that 1952 was too easy a year gold-mining shares, Also American has substantial funds

for mark

invested in its Orange Free State

which mines,

have not yet where they reached the point can declare and pay dividends. dividend Anglo-American's own divid

is

Unchangch as could be ex- !

at 00 per cent.

This is a

AGENTS:

JEBSEN & CO.

Pedder Building.

Tel. Nos. 36066-9

Chinese Freight Booking Office

27, Connaught Road, C.

Tel. 20401

Bates and rotation subject to change wiiliout notice.

At liberly to proceed via olbér pória to load/discharge catgo.

EVERETT

LINES

EVERETT ORIENT · LINE

Fast regular freight-refrigerator-passenger service to Korca, Japan, Philippines, Indo- China, Siam, Mulayn, Räfigidă, "Calcutta and Chittagong.

"LENEVERETT”

In Port Loading Sails

Apr.

# for

Ron

"BRADEVERETT”

Arrives Salls

Singapore,

&

Penang, ¿Calcutts.

Apr. 22 froni Manila, Apr. 23, for Singapore,

Rangoori &

"REBEVERETT"

Arrives Sallo

Apr. 28 from Strigapore. --

for Yokohama. Apr, 24 (Accepting care, for transhipment) Kobe/Fuzan And Kobe/Okinawa)

Penang, Calcutta,

1

EVERETT STAR LINEA Fast regular freight-refrigerator-passenger service to Korea, Japan, Philippines, Indo- China, Slam, Malaya, Colombo, Bombay, Karachi and Persian Gulf Porta.

33.28

33.34

33.38

33.80

Asociated Press.

Arrives Balls

New York Cotton

Future's

New York, Apr. 7. Prices of cotton futures closed pected; when it is remembered today as follows!-- that the company must always y Spot retain ample funds in hand.

July

32.00

33.27-33.26

33.4 33.38

33,50

3163 nominal 2373 bid

NEW ORLEANS MARKET Spat

World futures firmed with the

The drop from. 25,749,168 to October. are scheduled to rise to a peak higher trend in the raw market.

London, Apr. 7., in the last quarter of the pre Domestic

£2,787,427 in the total profits of December futures were qulet sent year, then level off for and without a particular feature. 80 tons including 20 tons for longs to the Ah-American July

The tia market turnover was Rhodesia Broken Hill, which be- Match

May consumer Interest in the spot ing gradually in Inte 1954.

quarters and start fall- Peveral

Prices closed today

as cash. Prices closed today at the group, is not surprising, 1951 WAS market, although No. 1 standard

end of the official morning an abnormally idd var for this sinoked ribbed sheets

Unless other forms of spending were

Contract No. 4 (world)

and de 1952 barlige Eothpatiy marked down lo 23 cents a rise to take its place, this de- May

of £2,787,427 are reasonably May pound, nominal. Prices closed cline in American defence ex-met September

good when compared with the July today as follows:-

penditure might be sufficient to October

Octobek., of £3,250,000. Desember ordinary capital cause a situation similar to that January

The dividend is cut from 30 to March March which occurred in 1940, Then, Stay

40 will be remembered, the mere

cent, and at the, latter May Spel

July the charas yield 154 per fact that America's gross na“ tional product stopped rising stay

This fall in pronts is obviously was enough to cause crisis in the Sterling Area culminating in the devaluation of the pound.

Fears that something of

this cort might happen again when the American defence, piru gramme begins to tall off are only partly offset by hopes that N.Y. Oil Quotations economy will be taken up by the slack in the American

Dilliness was done in the, local And by New York, Apr. 7: other forms of expenditure. Linomis!

„market, thi Copra was gubled today at While American spending, by morning at the following rates: Number 2 rubber, May $205. per; Miert to naked, cit, businisios, find private In-Sterling, siele (par £1)

U.4. dollar (per $1),** 12 0.014 this Piele codst. Cócounut (oll | dividuals

well as by the indonesian guilders (per 100) 10

May Number Handard

July

September December March (1054)

May

21.50 bid 21.80 nominal

21:45 nomina!

21.30

--

21.15

M

21,00

21.00

21.00

---United Press.

way quoted at 104 cents a Government, is not expected to pound United Press,

5.07

1.09 bid

8.51 nominal

United Press-

1

Singapore Rubber connected with leat year's de-

Futurės

Singapore, Apt.

rubber Prices of

Exchange Rates closed today na follow

exchange

Batients (per 100) Bingapore (Biralts)

fall this yemand should, ini Diksires. (DAS, 200)

48.10

| Number 1 rubber; þër 16,

Number rubber, y Number * rubber, May Spot rubber, unbåled Blanket ereja No. 1 pale crepà

23.70

路

33,46 bid

bld

33.30

-United -Prozs,

-Seeds And OÕlis

New York, Apt. 7 Prices in the seeds and ols Into market, here closed today un

operation, and loves the changed with the following ex

dithes, in the prices of lead and zine, but there afd some bigms that these prices have now Be- come more stable. Meanwhile i rihw

lead plant

Improves undertaking's prospect

COFFER PRICE FALL...

ceptions-

Now that 11 socis likely that York. 284 cents:

Peanut oll, per ib. fobs Now

tile London copper, miarkat will Castor off, per lb. tob, how reopen, a fall la, the price of York, $160.

61-15% copper would not be surprising.

23.75.

-Uolled Press.

· Flax seed, - per bushel, fob, This, however, would not be Minneapolis, $9.854 United entirely unwelcome: to the Press,

Apr. 9 trom Japan. Apr. 10

for Singapore, Port Swet- tenhain, Madras, Colombo, Bombay, Karachi, Khor- ramshahr, Basrah & Bahrein,

"STAR BETELGEUSE”

Arrives Sails

Apr. 15 from Singpabre,

Apr. 10 for Robe & Yokohama, (Accepting cargo for, transhipment) Kobe/Pulan and Köbe/OkibaWN)

EVERETT STEAMSHIP CORPORATION S/A Queen's Building, fätöphälä 31206. Chinese Department: Telephone 28293.

BUSINESS

REGULATION

ORDINANCE 1952

Copies of the prescribed Forms 1(a) 1 (b) and l'(c);

Now O

Sale at S. C. M. Post, Ltd. HONGKONG ¤ AND KOWLOON

TEN CENTS EACH