1953-05-06 — Page 9

Increase In Savings Of

UK Companies?

A

By Sydney S. Gampell

Routers Financial Editor Barring a new and highly unlikely inflation of commodity prices, or a steep slash in profit margins, British company savings will remain high in the coming year.

With falling commodity prices, they may well increase: published profits may fall because of inventory losses, but the need for money to finance stock may fall more.

During the Inflation one used to say that the real name for inventory profits was capital levy; in disinflation one might say that the real name for inventory losses is liquidity.

Regardless of changes in ing money rates could mean Inoncy rates, there 15 xreat economy m. klocks. prospect of a further increase

volunic

in liquidity through economies in the physical stocks.

As the Government quits the

function, of stock-holder

The volume of stocks depends upon Traders vlewa of the future It is by causing public and course of markets. If they ex- private hoarding of stocks that pect continued fall in com- controls and government trad-inodity prices, stocks will bo ing are must wusteful. Free cut down even if the Bank magicels, dishuslailon and exist Hate were reduced to zero.

HONGKONG SHARE MARKET

The external counterporį is a further improvement in Bri- tain's terms of trade (n further falt in the price of imports re- lative to the price of exports).

Britain's great beneft in that line last year was supposed to be a once-and-for-all wind- fall But in fact the present terms of trade fre already

more

favourable than the average of last year, and might improve further.

Theat

gives

(From Our Correspondent) something in hand for the in- ervare in bnports, or Auance an increase in exports without

Business done on the Stock Exuliange this morning amouni- generating internal inflationary

ed to $277,730.35. Noun quotu= { pressure. tions and the moming's trans- actions:-

SHARES BUYERS BELLERS SALEM

BANKA

IK Bank

11:0

INSURANCES

Union XD..

170

DOCKS, ETC.

77

Whart

N. 1. Wharf 0

Dock

Provident

Wheelock

LAND, ETC.

IK Hotel

HIK Lant (0) 5'hai Land..

UTILITIES

Tru

PRIME CASE

The prime caso for edged is that everything has beenine so certain,

But it is also possible

gill- else

THE CHINA MAIL, WEDNESDAY, MAY 6, 1953.

Japan's REPORT BY E.C.E. London Stock | MESSAGERIES,

Sterling Policy

Tokyo, May 5,

ON ECONOMIES

OF SATELLITES

London, May 5.

The fate of Japan's Sterl- Ing policy rested solely on About the time of Stalin's demise, it became whether the framework of clear that the worst brunt of the cold war had Japan's Sterling trade, fixed fallen on the peasantries of the Eastern European at the recent Anglo-Japanese satellites. trade and payments conferments continued to press them, it would be the As it appeared that if their Govern- ence, would materialise, a Ministry official,

Governments rather than the peasantrich that| Finance who attended the London would break (whatever might meanwhile happen| to some millions of individual peasants), it was conference, said today.

decided to call off the cold war.

Director Finance Exchange

Tekei Tojo, of the Ministry's Foreign

Bureau, who Japan at the ference, said that the

con-

new

presented agreements might possibly case

Japan's pound crisis which had been expected in May or Jung,

Mr Tojo sold that detalls con-

Exchange

London, May 5, Japanese batida "A"

8121

(4 of 1899).. Japanese bonds "B"

(4. of 1910)

Japanese bond

(54. dr tab)

124

Japanese bonds "D"

(5x, of 1924).. 10034., Japanese bond« "E"

(5 of 1030) 1811⁄4 Consols

CO-3/16 United Fress.

Prosperity Comes To Islands

Like all potted histories, that is an over- simplification. Like all appraisals of conditions behind the Iron Curtain, it rests on inference and] fragmentary rather than complete reports. But the evidence for it, particularly as patiently col- lected and sifted by the Economic Commission for pected thus year from two small

cerning expanded application of Europe, is not to be derided.

the so-called administrative transferable account for Japan had been made clear.

However, he did not believe expanded administrative trans- fers would aller the existing Anglo-Japanese trade agreement.

Although he was non- committal about the rest of the agreement Mr Toju said that the latest agreement in London had enabled Japan to exchange In case of dollars for pounds need at the open market rale.

During his London vixit, he said, no arrangements were made on lowering the amount of guarantee money for letters of credit-France-Presse.

MISSION POSTPONED

DJakarta, May 5. The departure of an Indonesian trade delegation to hold negotia- tions with the Japanese Govern- ment on the renewal of an Indonesian-Japanese trade pact has been postponed.

The delegation was originally expected to leave for Tokyo at the end of May, but Japanese Consulate General sources told the United Press today that the Indonesian delegation would now go to Japan in the middle of June at the earliest. The present trade agreement, which expires

Washington, May 5.

of the

dom which, together, contain was far mer 1930's C old days when Zanzibar was the

WAS

exter-

M

Chutwards

Pago. 9

MARITIMES

M®

PASSENGERS/FREIGHT SERVICE

Leaves Marselles

13 Apr, "FELIX NOUSSEL" " 15 July

Hongkong

"LA MARSEILLAISE”

(forewards

Hongkong

10-12 MAY

25- August,

Due Marseilles

"LA MARSEILLAISE" 22-23 May

11 B June

15 June

11 July

For

Yokohama Manila

Vla Balcon Yokohama

"FELIX ROUSSEL"

via Marseilles to all Mediterranean & West Africa ports. via Djibouti to Madagascar.

"MONKAY""*

FREIGHT SERVICE

LEAYCR

..Dunkirk-19 Apr.

LEATCH..

Outwarde

Itongkong

For

Itome Warde

4-5 June Hongkong

Japan

For

"PEL-HO"

«Keelung-10 Jone

11 June

"MONKAY"

......... «Kèslung-30 June SILVER SANDAL” „.Keelung-20 July

2 July

1

28 July

† Saigon, Marseilles, Afgiers, Oran, Tangiers, Casablancs, Le Havre, Antwerp, Rotterdam & Dunkirk.

CIE DES MESSAGERIES MARITIMES P.O. Box 53, Hongkong Queen's Building (Gr. Floor)

Tel. 26651 (8 lines).

MAERSK LINE

FAST FORTNIGHTLY SERVICE TO:

NEW YORK, BOSTON, BALTIMORE & PHILADELPHIA via SAN FRANCISCO, LOS ANGELES AND PANAMA.

when the valuable that a

"LAURA MAERSK” "OLCA MAER,K"

NEXT SAILINGS m.v. "JEPPESEN BIAERSK” .... m.v.

m.v.

Miny 17

June 2

June

17

ARRIVALS FROM U.S.A.

m.y. "LAURA MAERSK" my. "KIRSTEN MAERSK" m.r. "OLGA MAEREK”

May

3

May

10

May

21

A record crop of cloves is ex- islands of the cust

coast of Africa, Zanzibar. former iva According to the ECE, with | progress

and slave trade towards Communism, nearby Pemba, which produces centre, and the growth of industry, the out- the battle with the peasants. pit of certain major industrial

nine-tenths

world's Having got what they asked supply of cloves, said & National products in the Soviet Union has for, the presumption is that by now become comparable with they

Geographic

Society nows bulletin. can't fake

When that of the six Schuman

"The islands are enjoying a ecuntries plus the United King-in Russia in the

man plan Sta

Stalin wagod the same battle

prosperity unknown even in the about the same population; the and had a

In the

saddle

chief galeway to Africa for vasily better ad- cutput of coal, electricity and ministrative

d-traders from the cast and west, machine than has and steel in the Soviet Union is about an

In the East European famo bout any of

outfiting place for one-half of that in Western countries,

famous explorers," the bulletin notenid And Europe

a simu and ho is Increasing at a simultaneously courting

| sold. much faster me the rope, Russia, this battle caused some price of cloves by 700 per cent,

nał conillets.

"Since 1050, world demand and Yot, even expected for Western Europe.

mshort supply has sent up the Allowing that, by maintaining of the greatest convulsions in recalling the days low

living standards, the, modern times,

and had tem- Soviet Union can devote a larger porarily to be called

for spice was so off, proportion of ite output to consolidation, after Stalin's Bingle cargo more than puid the defence and Investment,

ent, it may encyclica "Dlazy from Success, cost of Ferdinand Magellan's ill- be ahead of Western Europe.

In the current plans" of the (It

fated

first round the world l'as been observed wat, if the East European countries, the cast affected by yourly crop

to hove proportions of national Income fluctuations is the word did not happen been

devoted to Investment are Parmarked for another

housewife's at purpose, the best prescription of least as high as any that can be spie shelf, where a box of cloves the

Soviet economic

found in Western Europe with may last for months. system would be "espitalism.")

its much higher income levels.

"The largest shipments of The mike-weight on Western Now it is very creditable for a cloves, about 3,000 tons annually, Europe's side is the U.S. It is a poor man to "save" as high a go to

to Indonesia and into the rather important make-weight, Proportion of his income As

favourite Indonesian cigarette, a Inasmuch

ay in many line.it rich man.

mixture of 40 per cent cloves outweighs Western Europe and Omelal

Communist alatistics and 60 per cent tobacco. Lately, Russla put together. It does so have made it plain for years due to high prices, smokers have notably

free, and, in this that the Industrialisation of the had to be content with a propor- Soviet countries was outrunning tion of four parts cloves to BB Iron Age, war is a steel

pro-Its agricultural base. duct,

parts of tobacco. When they failed

"The next largest customer is from the ECE Survey was that their customary grain export- India, where cloves are chewed East European satcilles surpluses to Western Europe, with betel nut or mixed with have deliberately courted

common explanation was other spice in highly seasoned most arduous phase of their political but the much likeller dishes.

explanation was economic: the "America and Europe com- surpluses had disappeared. bined import about 2000 tons

The investment has con-a

Principal consumers year, centrated almost

exclusively are medicine and cosmetic manu- on heavy Industries, which can facturers and confectioners. Oll give rise to increased supplies of cloves as a fragrance, season- of

consumer goods

only in ing and preservative

was well several years time

known to the ancients and highly THE RESULT

recommended by one Chinese Despite the pressure on food sage in the third century B. C. from growing population and as a breath sweetener.

Industrialisation, Invest- rapid

"Wille Prices of rubber futures closed ment per head in agriculture in synthetle substitutes

manufacturers try Eastern Europe

to combat is a smaller

the high cost, proportion of total investment been searching since 1947 for the scientists have per head on in

ell cause of the clove blight, known in all Eastern countries,

The

the that

in June this year, would remain valid until the new agreement had been negullated.

the balance between their sup ply and demand has changed in their favour. With the im- provement in liquidity, the need

18.00 200 18 do for industrial ecmpanies 10 19.80 1140 700 ** 11.

their 1.45 7.55 200 7.40. raise money by selling

holdings of gift-edged passed

7.10 720 5300

1500 H

7.to 7.10

1.35 145 7000 **

way months ago.

liquid in-

Now the volume of 1.40 funds seeking safety-first

in gilt-edged Zoems vegimeni to have outstripped the volume of gill-edged an offer.

21.80 1000 31.30

Peak Tram

(01

TO

Pede Tram

10

Star Ferry

100

to

...... 9.00 .

נא

Hence the firmness of the gilt-edged market. Over a period, short- 108 dated have risen more than longs. A funding operation Lo 0000 0.00 reckice the banks' Iquidity

6.48 might reverse this 0.40 675 193 Flectric *** 23,40 2317 2000 Telephone-17.90 18.209-

C. Light (0)

XD

2. Light (27)

INDUSTRIALS

Сетель

.... 24.00

STORES. ETC.

Dalry XD .. 100

Walan

COTTONS

Ewa

21.70

.

500

particular

v. 23.40 | divergence, but not necessarily

the trend of --gill-edged -as-a- whole.

If re-stocking or any other development creates

A

new

in codaneer of inflation, it may be

10 tackled. by tightening money.

In that case the budget have been more bullish

will

for

2.35 2.42 x

2.35 gilt-edged in the short

thun

in the long run.

Grain Prices

In Chicago

Chlengo, May 5.

A reactionary swing in cotton and a late relback in Kraina combined to lower the general commodity price level slendy start today.

has It is If the Chancellor' under-rated the degree of dis- inflation that he

have may cause to regret that ruinii- Ing his promise to give Indus- try a beller hope, he has done it almost wholly at the expense of future budgels instead

of

by clashing Güvernment CX- penditure.

AMERICAN POLICY Economy in stocks in Britain after a is all very well, but the same thing in the US. (Inventory liquidation) might bring

Wheat closed to 1% lower world setback. and soybeans were

to 1 lower. Prices closed as Jows:-

A

The limitation of Keynesian fol-expansionism has been known for yours: it stops at tidewater, Billain cannot safely reflate by the soft funding polley if Germans (becaure of the goot! af unemplovrsent which Bri- tain rejects, or for any other reason) are working twice hard, and нака

Wheat-price per bushel

2.18 nominal 2177 2.103-3 2.23-14 2.201

December

Indonesia is reported to be eager to increase salt exports to Japan but the United Press learned that Indonesian salt prices are considered much too high by Japanese traders.--- United PresR,

Prices Settle Back

Cotton

In New York

on old

new

New York, May 5. Cotton prices today settled

into back after edging highs. Main Interest was still centred

crop months. Evening-up in May followed of additional de- the issuance Ilvery notices for 4.200 bales. The spol month goes off the board on May 13.

Trade and speculative longs utilised the advances in July to liquidate positions or to transfer lung lincs to new crop months. The weekly Government crop summary was interpreted un- favourably but had little ap- parent market Influence at the close. The summary said that the rains and wet solls retarded planting in most of the main ection beit and that weather con- dllions were most unfavourable la the central belt specially in Mississippi and Louisiana.

outstanding

Inference

the the

The Rubber

Markets

Singapore, May 5.

today as follows:---

Number 4 rubber, per lb.

June...

July

Augant

Number rubber, June

Number 3 rubber, June 0815- “Number 4 ̃rubice, June

Spot rubber, unbäled Blanket prepo No. 1 pale crepe

741-752

to offer

Western European s

As result,

for years only as "sudden death." "The latest suspect is a hitherto agricul- undescribed species-of- valsa production is still about,

European con

jurgl

6410 or below, the pre-war level, and spread through the tree, pro- fungus which attacks the roots

01-80 United Press. LONDON MARKET

London, May 5. The rubber market was steady today, Piles closed as follows:

Number 1 rubber,

in pence per ib..... June

July/September

Delober/Decagiber

January/March

2013 217-2

NEW YORK MANKET

the

while demanth for agricultural products

ducing an intense yellow colour." expanding Reuter. towns has greatly increased,

On

the ometal Communist ilon in Hungary is at the pre- statistics, agricultural produc- war level while more thch a 50 per cent expansion in Industry and urbanisation.

Pepper Market

New York, May 8. Higher Indian cables and In Czechoslovakia agricultural uneasiness over the tenor of the

from Indo-China and na Korca brought a higher trend in the pepper market today,

Business developed slowly na $1.44-$1.45 a pound, on an ex dealers marked prices up to

dock basis, across the board from spot out, to Jane shipment, -United Press.

production is given as 10 per news Infted Pres.

cent below pre-war, while tional income is up 40 per cent,

Between 1947 and 1951 agri-. New York, May 6,

culture's share in the gross na- Prices of rubber futures closed tional product of Rumania de today 85 to 80 lower with mics clined from 60 per cent to 33 per totalling 45 contracts. Bullish sentiment in futures evaporated, and in Poland from 24 per overnight with lower cables in-cent to 19.0 per cent. Reuter. viting

hedge realising and selling. Prices closed as fol- lows:

20.21

20.00-20.10

29.54 23.30 nominal

25,25 nominai

No. 1 standard.

the

May July September December Storch May

20.25 asked

PENINSULAR

No. 3 standard.

24.50 nominat

Nearby May contract met ttle more support below 34-cent line, but other positions closed at the lows with the gen- eral ist off 14 to 20 points. The market opened up 4 to off a points. Ir the Aniericans

Prices closed as follows:- Spot

34.45 defationary

money MAY

34.07 polley and an illiberal commer-

July

October the December

*Spot

}

Kay

July

September

March

2.31%

Cora

Spot

1.61

May

clal policy

July

1.604-2

December

September

March

Itro..

Maye

July

Oats

have

The Treasury bill rate in

05

U.S. has risen to the highest

March

In 20 years, which makes It July very nearly as high as in Bri-

American policy may doml nale money markets no

33.52

33.41-33.62 33.65

33.25 asked

31.68 uld United Pres9.

May

October

NEW ORLEANS MARKET

33.43 34.00 bid

1.5824-1.00

tuin despite the great difference

1.02

in long-term money rates In the two countries.

Jess

Spot May Jialy October December March MAY July October

May

7442-34 74-731 July

*New York flour-per 200 15. zools than other markets, American $13.00 nominal-United Fress.

economists are beginning to argue that, if the inflationary danger is over, the Treasury polley,

Exchange Rates ought to stop or even reverse fu

L

deflationary funding but there is no evidence

Tusiness was done in the local un- that the new U.S.

official erthange market this morning team can or will do co.

At the followITUR TILLER:---

US dollar (per $1)

Birthing note per £1)

Siam, ticata per 100).

Singapore (Straits)

F1 pinaires (per 100)

yot

Treasury 4.1725 It is very worried about the

16.21 tapakedness of

the

400

U.S.

Indonerlin guilders (per 100) 2200 notional debt. The chances are 1993 slill that, in a storın, it would. 11.978 in the first instance strive to make the ship more seaworthy ofter 20 years of neglect, rather than lighten, it to ride more easily.

santilla

Scrap

Stool Price

New York, May 6,

If the world situation turns out to require monetary, rondw Prices in the metal market|tion, and if the Americbus, for closed zhurchnöged. With the adequate or inadequate reasons, following@xception:-

refuse to do it fast enough, {{ Scrap, siçol, Lo,b. per fon, will be very difficult for Bri- (No. 1 heavy smelling). $93,00 tain to do it fast enough, momihal.-United Press.

Reuter.

33.63

33.58

23,40 bld

33.61

-United Fress.

TAIPEI TO AID FARMERS

Taipel, May 5,

associa Formosan farmers' tions, will be able to obtain loung from the Nationalist authorities to enable them carry out their functions ciently.

May July September December Match May

2440 siomat 24.30 nominaj 24.20 nominal 24.20 nominal 24.20 nomina} United Press,

LONDON TIN MARKET

London, May 8.

For Freight and Further Particulars please apply to:-

AGENTS:

JEBSEN & CO.

Pedder Building.

Tel. Nos. 36066-9 !

Chinese Freight Booking Office 27, Connaught Road, C.

Tel. 20461

Gates and rotation subject to change without notice. At liberty to proceed via other ports to load/discharge cargo.

EVERETT LINES

EVERETT ORIENT LINE Fast regular freight-refrigerator-passenger service to Korea, Japan, Philippines, Indo- China, Siam, Malaya, Rangoon, Calcutta and Chittagong.

“NOREVERETT“.

Arrives Sails

May 13 from Singapore. May 14 for Kobe

"REBEVERETT"

Arrives Salls

May 22 from Manila, May 23 for

.

& Yokohama,

Singapore, Penang, Rangoon, Chittagong 品 Calcutta.

(Accepting cargo for transhipment

Kobe/Pusan and Kobe/Okinawa)

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

"STAR ARCTURUS”

& ORIENTAL

Arrives Salls

STEAM NAVIGATION CO.

R.M.S. "CORFU"

SAILS:

NOTICE TO PASSENGERS

The in market was steady | BAGGAGE: today. Turnover was 125 toni, including 25 tons for cash. Prices closed at the end of the official morning session as fol- lows:

Spot tin, buyers

Spot ti sellers

Tusiness done at

Thro-manllis tin, buyers Turce-montis un, sellers

Business done at Settlement

10

effl-

Flax Seed Prifo

New York, May 5. Prices in the svega ani oils

FRIDAY the, 8th May at 12.00 Noon for the UNITED, KINGDOM - via Straits, Colombo,. Bombay, Aden and Port Said.

Passengers are requested to send ALL baggage to the Hongkong & Kowloon Wharf Co.'s Godown at No.2 Gate, CANTON ROAD ENTRANCE, by NOON on Thursday, 7th May, 1958.

SPECIAL NOTE: With the exception of hand packages carried by passengers themselves, ALL BAGGAGE must pass through the Wharf Co.'s Godown for loading. on board by ship's slings only. BAGGABE. COOLIES WILL NOT BE PERMITTED TO ENTER THE WHARF

market closed thanged wiEMBANRATION:

the following exception:

The Provinsial Food Bureau has drafted a set of regulations for exbonding Jour interest bearing loans to farmers' nests ciation in Bad Onasielal posia tion, to nid them in fertiliser distribution to farmers, and to promote rice planting-Reuter. "Press."

Flax seed, per bushel, fob. Minneapolis 44$379,

United

Passengers should embark between 9.30 and 11.00 a.m, on FRIDAY, the 8th May, 1958,

May

from Japan.

May 10 for Singapore, Port Swet- tenham, Penang, Madras, Colombo, Bombay. Karachi, Khorramshahr, Basrah & Bahrein.

"STAR ALCYONE”

Arrives Soils

Yokohama,

May '10 from Singapore, May 11 for Kobe Ll (Accepting carge for transhipment Kobe/Pusan and Kobe/Okinawa)

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

BUSINESS REGULATION

ORDINANCE 1952

Copies of the prescribed Forms 1(b) 1(b), and 1 (c)

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

TEN CENTS EACH