1953-05-19 — Page 9

THE CHINA MAIL, TUESDAY, MAY 10, 1953.

1

Boom In US Notable Natural

Because Of Absence Of Speculation

BEST AUGURY. FOR AVOIDING SLUMP

(BY SYDNEY S. CAMPELL, REUTER'S FINANCIAL EDITOR) Washington does not regard itself as doing a mere technical smoothing-knocking the top off a frothy speculative boom so ag to bë able to smooth out the trough of a subsequent speculative shake-out.

The chief characteristic of the present U.S. boom, and the best augury for avoidance of a slump, is the absence of speculation.

The reason that this boom kept going is that it wils so heartily distrusted: businessmen did not get over-extended or drink, and so are not due for a hang-over, But there is some speculation in American and other markets, including London's Stock Exchange.

When only $1 billion of national debt of $267 billion

Dheir minds.

even

10 do

Washington does regard itself months after the election. No-get control of Congress as in a desperate battle against body establlaher an silhi unless when helped by the full glow time, to eure deep-seated in-experts-to-nerd it,

bf Elsenhower's glamour and insladjustment (particularly of All the evidence is that the the free ride on his cont-talls, the national debt) bequeathed present heads of the U.S. they are going to lose it any- by 20 years of Inflationary | Treasury and Federal Reserve way t the November 1054 saft money,

hove something very real On election; and meanwhile they

have patrioty

duly hould be remembered something, which they may re- has been funded, it cap hard-that least one highly placed nord es vastly more important

observer outside the U.S. has than any election results, name ly regard is task as complete

The engines-which Republi- | felt for years that the troublely in restore the soundness cans regard as nothing "Tex laid up by the mismanagement the dollar which has been

of of the US. national debt was gravely impaired. than engines of destruction the American way were in fact reversed more than two years ago, when the "accord" between the U.S. Treasury and the Federal Re- gerve ended the rigging of the bond market and the outright monetisation of the national debt.

of

So

of life ferally nerable: that the ex- T that their reading, they prees irain, out of control on will eventually be over-ruled the wrong track, could not be by the politicians, to whom brought back to control by nothing is more important than any means that would be poli- the election results. But a great thrilly nerepfahle.

could happen in Washington den!

the as meantime, including more dis-

Inflation in world markets.

may not be as pessimistic that, but obviously. It takes grave view of its monetary lusk.

NOT SO EASY

But it is self-evident that the Republican Administration feels that only a start has been It is easy to say that the male at pulling things round, Republicans, having been in the

NOT POLITICK

| wilderness for 20 years, do nol Somc

may have

suspicions want to go there again

after that, in so roundly damning its four years of ulfice and FO inheritance fin

the

Truman would revive the inflation Administration, the present Ad-the tiert fint of rece

recession. ministration is merely talking pokiles and establishing A. This is hardly o clent explanation.

ko-

Spontaneous casing money in New York would make things better if it came about by an enlargement of the suJI- ply. If, as teems much Her, It came about by

reduc- tion the demand,

in

might make things much worse.

The present tightness of I! money is not because of any ful in savings. On the con- to carily done. is-not so

The present monetary mang-trary, savings are a record pro- sum-reis do not happen he portion of a record national in- politicians. Their political rend- come, so that life. insurance Nobody, least of all Mr Hum-]ing may well be that as the Re- phrey, goes electioneering six publienis barely managed to

O. S. K.

3!1

LINE

Have Pleasure in Announcing the Opening of JAPAN-HONGKONG-EUROPE Fast Regular Freight Service. M.S. "ANDES MARU"

Sailing on or about 1st June

for

SINGAPORE, PENANG, ADEN, SUEZ, PORT SAID, ALEXANDRIA, GENOA, MARSEILLES, TANGIER, CASABLANCA, LONDON, ANTWERP, ROTTERDAM & HAMBURG,

Tanks Available for Bulk Oll Space for Refrigerated Cargo

For Freight and Particulars please apply to the

AGENTS:

БЛУ-

| cdmpanies and all other

Ings Institutions are gaining in- vestible funds at a record phed.

RECORD NOT ENOUGH With boll: depreciation and retained profits running above a year ago. Industry has more money Lov self-financing. Money is light beenuse

the boom demand for it exceeds even this record supply:

recession, liquidity would increase fast enough: It always does. Even if corporalo and personal incomes were re- duced, the supply

raoney might not fall, since business and individuals might well suve a still larger proportion of Their smaller incomes.

In 1

of

It In the temand for money that would fall. In fact, it money in New York does be- come caster later, this year, 11 is likely to be only because downturns in inventories, plan! and equipment, housing consumer... credit. needless

money.

are

|

Rubber's

Future

future

Thie long-term

of natural rubber in the American market Wil

determined bo primarily by its availability and prico. This already is true to a Trent oxtent. It should come more apparent once Goverment ramoves itself from the synthetle rubber business and the long-awaited birth of a com- . petitivo. privately owned synthelle-rubber-Industry occurs.

the

The extraneons factors of Government polley will exist no more to emerge, as they havo in recent years, as often decisive Influences on the Amerlean con- suming industry's choice of what type of rubber it may use in making tyres and some 40,000 other products.

Making ready for the arrival of this new freedom, the con- suming Industry is developing a more flexible range of com- pounding techniques so that a greater number of products can be made utilising either natural or synthetle rubber, Thus it will be better able to adapt pro- duction to take advantage of both short and long-duration changes in price and supply of natural vis a vis synthetic rubber.

Furthermore, once the synthetic rubber plants are a private hands, their level of operation will be more flexible than it has been in the soon-closing cra of Government

Iw the operation, past, the Government's Ideas of 'much synthetic rubber should

be

produced often have been more rigid than those of the

consuming industry, with consequent delays in putting through major increases or de- creases in the level of produc- tion.

NATURAL'S SHARE

The figures on availability In- dicate that even this year. natural rubber can have a same- what larger share of the American market than it now enjoys. At present, the tree- grown material accounts. for about 40 per cent of consumption. Competitive pricing can bring that share up to 45 per cent, according to calculations pre- pared by the American consum- ing Industry.

per

Recently prepared estimates show a potential American mar- kel for natural rubber of 025,000 long tons in 1959, about 45 cent of an anticipated total new rubber usage of 1,365,000 tons. This excludes some 50,000 tons of natural rubber previously ordered for the U.S. Government strategic stockpile and which is due for delivery here this year.

The 625,000 tons is what, re- mains alter satisfying the stock- pile requirement plus the new rubber requirement ol the

HONGKONG Indian Textile

SHARE MARKET

(From Our Correspondent)

Business done on the Stock Exchange this morning amount- ed to $241,214.95. Noon quota- tions and the morning's trans- actions:-

SITARES BUYERS BELLENS BALES BANKR

HK Dank INSURANCES

Unon XD.** Underwriters

XD

01400

700 700

4.00 3.10

3 M

760

16 67

$40

FIK Fire XD 140 BIRPPING

Asta Nov...1.30 DOCKS, ETC.

Dock.... Provident S'hai Back

Wheelock

LAND. ETC.

HK Hotel..

IIK Land Stial Lend UTILITIES

Tran.... Peak Tram

(0) XD.... Peak Tram IN) XU

19 490 10,40 11.0

2.20 345 1.91 IOM LF

715 2.55 100 % 7.43

1000 190

729 7,35

7.40

1000 / 7,40

500 67 7,45

500 7.40

07

1.30 1.40

23 22.30 1500 » 22.10

34

17

00 35

147 1745

09 10.20

C. Light (0) 10.20 10.40. 000 44 10,45

C, Light (N) 1.53 0.70 Electric

....21.30

M. Electric... Telephone INDUSTRIALS

Cement STORES, ETC.

Dalry

Watson

700 10.40

24 1038 23.60

700 $120.00

1500 23,70 500 23.00

10

10.10

13.10 10.30

500 of 18,10

100 18.70 500 - 18.00 500 N 10.10

Production On Increase

Bombay, May 18. Indian textile production

in the first four months of 1053 amounted to 1,020,- 000,000 yards compared wikit 1,004,000,000

period last year. the name

it was announced today,

for

The monthly Average during January to April was 405,000.000 yards com- pared with the 1032 average of 384,000,000 month.

Texille

exports

showed a steady rising from

معام

increase 48,500,000 in

January for all varieties to 54,000,000 in March and 03,700,000 in April--United Press

DANGER

TO P.I.

ECONOMY

Ambas

an

Manila, May 13.. The "Manila Times," in editorial today, warned. of the donger to tho Philippines economy of the dow of Jáp- 18.00 10.00 500 14.00 unese.goods into this country.

Recalling Japanese Am sador Washington Araki's statement yesterday that Japan's prosperity depends on her ex- port ability, which in turn is conditioned by the supply of raw materials, the paper called on local Industrialists to give due attention to this condition, which, it said, poses a number of critical questions.

Es

L. Crawford 27.30 27.00 COTTONS

Ewo

....... 239 240 Texule MISCELLANEOUS

Yangtze (0) 0.10 Yangleze IN) 0.40

.

5 3.05 1100 0.05

The Rubber

Markets

Singapore, May 18, Prices of rubber futures closed today as follows:-

Number 1 rubber, per il,

Junc

July

7214-16 August

7215.15 Number 2 rubber, June 0212-2 Number 3 rubber, June 6014-2 Number 4 rubber. June 0414-**

Spot rubber, unbated 11-72

Blanket crepe.. No. I pale crepe

12-04 DB15-0115 United Press.

LONDON MARKET

London, May 18. The rubber markol was easier. Prices closed as follows:--

No, 1 rubber.

in pence per ib, June

July/September October/December Jamary/March ....

United Press.

NEW YORK MARKET

New York, May 18. No. 1 rubber futures cloacci today 55 to 6 points tower with sales of

contracts. No. 3 closed nominally 60 points lower with no sales reported. and balance of the world out of an

expected 1,700,000 tons produc tion of natural rubber, augmented by some 85,000 tons of

synthetics produced outside America,

Over the

longer pull, avail- ability appears to emerge as A

more limiting factor. Unless natural rubber production is In- creased there will be only some 400,000 tons

tons available for sale in American market in 1960, according to consuming industry This will be economists,

to 25 equivalent

per cent of an annual U.S. consumption of 1,600,000 tons of new rubber in

even

That could happen. Consu- mer credit may soon run into an absolute shortage of money. Some expantion programmes, particularly the steel industry's, approaching completion, Bethelchem Steel reports

that as its expansion programme was not based on the defence pro-

the It will go on to com- Hranime pletion regardless of a Korean truce; and that the outlook for utilising the expanded capacity in 1953 has improved.

The Hong Kong Eastern Shipping Co., Ltd. is nearing its end, and there is

French Bank Building.

PAST THE PEAK In fact, there are several in the demand for uneerlaintin both steel and cars.

At any rate the expansion programme no suggestion of enlarging it.

Expansion financed by

the accelerated amortisation granted Tel: 26624. to defence projects is long past Its peak. For years, the bulld- ing of new houses has outrun

Tels: 38661 & 32369 Chinese Freight Agents: Great Eastern Hotel, 1st floor.

M.V. "LA MARSEILLAISE'

will sail for MARSEILLES Via

SAIGON, SINGAPORE, COLOMBO, ‘DJIBOUTI, SUEZ AND PORT-SAID On

...

SATURDAY, MAY 23rd, AT NOON EMBARKATION: Passengers are requested to board the vessel between 8 and 11 a.m. on Saturday, May 23rd. Baggage room, hold and cabin luggage will be registered at the Kowloon Godowns, Godown No. 50 (No. 2 Gate, Canton Road entrance) from 9'a.m. to noon and from 2 to

BAGGAGE:

that year. These statistical

projections assume that by 1800 the rest of the world (excluding U.S.) will consume some 1,408,000 tons, including 100,000 tops of synthetics

SYNTHETIC DEMAND

These figures show a need for more synthetle rubber production

to meet U.S. requirements than

the formation of now familles, currently is Available from

in house-building is fairly wide-

| existing facilities. Specifically,

Bath futures and spot mar kets were dull while traders awaited foreign political news along with

President Elsen- hower's message tomorrow on the budget and taxes. Some traders also expressed disap- pointment over the inconclusive results of the

recent Rubber Study Group meeting at Copen- hagen.

No. 1 smoked rubber sheets were quoted at around 25 cents. a pound, Prices closed as fol- lows:- No. I standard July

September

December March

Ma

The Manila Times urged in

MESSAGERIES

}

P.O. Box 53. Queen's Bldg. !

M

Outwards

MARITIMES

Tel: 20051.

M

PASSENGERS/FREIGHT SERVICE

1.waves Mararities "FELIX BOUSSEL" .. ⚫ mo

Korgowards

Itongkong "LA MARSEILLAISE" 12-21 May *FELIX ROUSSEL" .84-25 July

Ilongkong 10-11 July Due Marseilles

13 June

25 August

For Manila

Vis Baigan Yokohama

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

Outwarde "MONKAY"

"MEKONG"

-------¡lomewarÖR

"TEL-10"

"MONKAY"

*SILVER SANDAL” "MEKONG"

FREIGHT SERVICE'

L.CAVES

Trope Balled «Stenburg-33 Atay.

Leaves Keelung→10 June

....Reclung➡4 July

Hongkong

1-19 June 9-10 July

Itanekeng

For

Japan Japan

For

11 June # July

- 23 July

1 August

+

2012 July *****chirslung-11. July Salgon, Marseilles, Algiers, Oran, Tanglers, Casablanca,

Le Havre, Antwerp, Rotterdam & Dunkirk.

BUBJECT TO CHANGE WITHOUT NOTICE

MAERSK LINE

FAST FORTNIGHTLY BERVICE TO;

NEW YORK, BOSTON, BALTDIORE & PINCADELPHIA vis SAN FRANCISCO, LOS ANGELES AND PANAMA.

June 0

June 17

Juby E

NEXT SAILINGS

my

"LAURA MAERSK“

PLV, m.v.

"OLGA MAERSK”

JUL.DA MAERSK”

ARRIVALS FROM U.S.A.

M.Y. "OLGA MAERSK”

In Port Buoy A12

.v. "ARNOLD MAERSK" MAN. "RULDA MAERSK"

June

June

ย

creased production of consumer For Freight and Further Particulars please apply to:-

goods for damestic consumption

o compete with cheap Japanese go.ids.

I also recommended the

| raising of a high tariff_wall to

keep out competing Japanese goods from the country.

services

was

The daily warned that Japan's offer 10 the Philippines of

in reparations fraught with several dangers. Should the Philippines accept this form of reparations, the

continued, paper

Japanese capital and technicians will pour into this country, transforming joenl industry into a subsidiary of the Japanese. Eventually, the paper argued, the Philippines wage level would be pulled down by ecmpeling "cheap" Japanese labour, France-Presse.

New York Sugar Futures

New York, May 10, World No. 4 sugar futures closed 3 points lower to 2 points sales of 352 con- higher with tracts.

Domestic No. 6 closed un- changed to 1 point lower with ́sales" of 40"contracts."

Prices closed as follows Contract No. 4 (world) July

4.

Beptember

October

January March May

Juli. spot September

Contract No. July September November March May

July

24.80 bid

September Spot

24.60

34.20

24.03

-29.85-nominx?

July

No, standard July Reptember Dreemier March

23.10 nomine!

23.00

23.00

Miny July

27.00

F12.00

-Unlied Pre

3,75 nomino!

3.87 asked

3.04

3.04

5.03 naked

1.03 asked 3.7%

4.00 ald 5.34 bid B.33 mundnal

3.75 nominal 5.00

United Press.

LONDON TIN

MARKET

London, May 18.

The tin market was steady today. Turnover was 110 tons, including 45 tons for cash.

official morning session 28 follows:-

a drop of some 15 per cent they show u demand for 1,200,000 Grain Prices Prices closed at the end of the

ild a ly expected

Some curtailment is also ex- peeled In durable consumer Louds (in heavy household up-

pliances it may come soon) elm-equivalent

ply beenuse recent output how or appeared to be too enormous to types. ba maintained indefinitely. A recession creates its liquidity. Even if Washington had been pulled round enough then felt that the national debt to enable an easing of money, the recession might not easily be cured by easier credit or fresh injections of

CANNOT RELY.

The U.S. business magazine,

Week, Federal Reserve to ease up on

Business

urges the

In Chicago

a

Chicago, May 10. Prices of grain futures closed today as follows:-

Wheat-price per bushel:

1.16% nominal 2.153-14 2.14

Boot May July

September

December

Kyo

1.07%

1.501-156

1.581-1 1.833 137

1.501% 159

ገና 2345-75

tons of synthetic rubber in 1900. Special types, such as butyl and neoprene, are expected to meet 100,000 tons of this demand, 1,010,000 tons for GR-S general purpose Factors bearing on the attitude own of the American consuming In- dustry toward natural rubber Producers have heard may be worth examination. deal of complaining from their a good

erican customers about the. March

Com problem.

Hearin

Spot signs of oarnest effort to rectify MAY July this situation are appearing and

September this front should progress on

December head off

disenchantment Merch Any 5 p.m. on Friday, May 22nd and

Its Light money programme as

with natural rubber on the part from 9 to 10.30 nm. only on otherwise, the country faces "a

of smaller users, who have been MAY caused the most trouble from

July

Čata Saturday, May 23rd. No baggage dangerous economic situation."

or hold luggage will be Reserve in overdoing the tight

Claiming that the Federal poorly packed natural rubber.

May Probably a greater factor in July registered after that time.

money policy, the magazine to- consumer choice will be the in- CABIN. BAGGAGE: Cannot be accepted on board before marks that it is oavier to halt creased flexibility of synthetic Spot

operations embarkation time. Passengers will an inflation than it is to check rubber production

n deflation once started.

when the plants are under therefore have to collect their Experience shows that that is private, ownership...a day which baggage from the godown between | only too true, but the Chair- should come either in 1954 8. and 10.30 a.m. during which man of the Federal Reserve has soon thereafter. Coupled with period cabin baggage may also be relax.

said that it cannot yet the efforts of rubber registered. Passengers are request-

chemists toward devrion Company Both the giants; the US, and Aigues-the necessary com-

14 compounding Exchange Rates ed to note that ALL BAGGAGE | Russia, reem to be must be registered as prescribed will: major internal transitions. plement this bound to above.

might be very serious for heighten the emphasis on com world markets if an economic potitive prices, and tesson the transition of the defence pro- role of technical superiority of gramme caught Washington in one form of rubber as against the throes of its present anan-another in the total picture elal transition.---Neuter.

The Financial Times.

$

room

Compagnie Dos. Messageries Maritimos Queen's Building,

Tel: 26651

himself

It

grappling

In

of

Soybeans

July

1.02 nominal

3.0212.3.00 03-30

2.7735

September November.

2.004-11 January

EXTER New York tour per 100 lb. Back $12.00 nominalUnited Prom

Business was done in the local

unoticial exchange market, this morning at the following rates i US dollar (per $1)......... 0.000 sterling, nata (per 23) Indonesian gufdem (per, 100). in ticala (per 100) nui

Singapore (Bienīts) akis FIC piastres (per 100) Arosa,

Spot in buyers

Spot tin, sellers

763 71734 Business dano xi

700-7674 Three-months tin, buyers 75 Three-months un, sellers 10x Bualnem done at Settlement

747 707

United Pres.

Market

Pepper

New York, May 18. The pepper market continued qulet today with grinder and dealer buying interest at a minimum pending Washington fiscal developments and foreign political news,

on

Limited interest was centred which yarawak pepper for

buyers

paid $1.30 but вецета

to ask two cents higher. Spot pepper was indicated nominally at $1:47 a pound, but dealers thought that business was possible at one lo two cents a pound lower on a firm bld-United Press-

JAPANESE BONDS

London, May 18.

"(46. of 1888) "B" (4 of 1910) "C" (5s. of 1007). p" (5s. of 1024) "E" (5%. of 1030) Consols

Japanese bonds

120

130 01-5/10 -United Press,"

AGENTS:

JEBSEN & CO.

Pedder Building.

Tel. Nos, 30066-9

Chinese Freight Booking Office 27, Connaught Road, C.

Tel. 20461

Dates and rotation subject to change without notice. At liberty to proceed vis aller porke 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.

'REBEVERETT"

Arrives Sails

May 24 from Manila,

May 25 for Singapore, Perang,

Itangoon & Calcutta..

"LENEVERETT”

Arrives Salls

May 31 from Singapore.

June 1, for Kobe & Yokohama,

(Accepting cargo for transhipment Kobe/Pusan and Kobe/Okinawa)

EVERETT STAR LINE

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

"NORDSTJERNAN”

Arrives Sails

May 28 from Singapore. May 20 Moji, Kobs, Osaka, Nagoya,

Shimizu & Yokohama.

"STAR ALCYONE”

Arrives

Salls

June 2 from Japan.

June 3 for Singapore, Port Swetten- ham, Colombo, Bombay, Karachi, Khorramshahr Bahrein

ALLE

{Accepting cargo for transhipment Kobe/Pusan and Kobe/Okinawa)

EVERETT STEAMship corporÁTION S/A Queen's Building, Telephono 31206. Chinose Department: Telephone 28293.

BUSINESS REGULATION

ORDINANCE 1952

Copies of the prescribed Forms. 1 (a) } (b)] and 1 (c).

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

TEN CENTS EACH