"
THE CHINA MAIL, WEDNESDAY, MAY 20, 1953,
Business Money Rates
Trend In U.S.
In U.S. At
Still Strong, Says A New High
Commorce
Washington, May 19. The Commerce Depart- ment reported today that the upward trend of United States business activity was still strong.
Most lines of business were enjoying the usual Springtime lift, the Department said in its May "Survey Business,"
of
Current
Tile Departmel's economists reported Unt--manufacturers
were selling virtually every thing they produced and pro- ducers
goods for civilian use were receiving new orders at a rate which matched the high rate' of selling.
De DES WAS
The survey said that the pile up of produced goods in in- ventories had been comparative- ly small in contrast to lest
November and October, cember when production ricing rapidly but much was go ing on to the shelves. It sald that stocks now held by manu facturers, wholesalers mid re- toliers were worth $75,000,000,- 000 and were generally balanced and roughly in line with the current rate of sales.
nation's
The output the manufacturers was now at a ral 10 per cent higher than a year Almost a manufacturers boosted their production but the increase was particular- In defence pro-
ngo,
had
ly pronounced
duction
and in the output of
such things
machinery,
equipment,
झाउ
Industrial
household
and store
office
major
CAN OUTPUT
Items and cars.
Second only to international developments, markets are coming under the influence of what has been described as the "unrelenting stringency” in the U.S. money market.
All money rates there-from three months bills to 30-year bonds-have risen to the highest levels since the wave of bank failures of 1933.
The new US ·Treasury 14 President Elsenhower. and per cent 30-year bands, which Treasury Secretary Humphrey were heavily slagged" and "con- downwards, key-noted o lument adently expected to command a over the situation that they hart substantial premium, have fallen intierited, in terms even more to an appreciable discount. Other dismul than those used by the bond prices have fallen uninter-present British Chanceller in his ruptedly: the Dow-Jones Index-| early months of office, at a time of U.S.. Bonds déclined on every when Britain was losing £300 single business day from March| million of reserves a month, 20 tu May 6.
The U.S. authorities are not doing this sort of thing for fun:] deadly earnest. rarely have men been in such
A fortnight age one notfeed that almost every major utterance by the leaders of the Republican Administration, from
HONGKONG
SHARE MARKET
(From Our Correspondent) -Business done on the Stock. Exchange this morning amount ed to $327,272.40. Noon quota- tions and the morning's transac tions:--
The survey also cited substan tal ireresses in the production of electronles, truck
traiters and types of Industrial and many electrical machinery, moderate for machine tools, offer Keins and store equipment, engines and turbines and
and decreases In the production of diesel, electric INSURANCES
locomotives and trucks.
There were 1,600,000 passen- ger cars produced in the first three months of the year, au- other 600,000 in April and pro- duction in May was running -slightly above that, the report
said.
The car production record for one, month of 617,000 was set in March, 1951.
Production of major household appliances hit the highest rate in two years during the first quarter of this-your, it was reported. The increases appear- ed in most lines, ranging from 'almost 10 per cent for washing machines to 40 per cent for refrigerators.
Television set production was off from the final quarter of 1952 but the overall production of major household goods was 20 per cent higher than in the Anal quarter-United Press.
Grain Prices
In Chicago
Chicago, May 18. Prices of grain futures closed today as follows:--
Wheat price për bushol
Spot
May
July
Reptember
DECEMBIT
March
9.1425 normirat 2.1416 2.136-4
2.261.
Corn
Spot
May
July
September
Deceiver
March
BHARES BUYERS SELLERS SALES
730 765
Union XD..
DOCKS.
Under 4.80
Dock
Considering the immensely greater financial strength of the 0.5., (his attitude seemed almost incredible. Yet the diagnosis has. now been confirmed from Americen quarters.
ON WRONG TRACK
Sales Of Synthetic Up In U.S.
Washington, May 10.
The US Reconstruction Finance Corporation re- poria March
of
70.10 for tons of wyn- thelle rubber, some 10,000 ton's higher than the pre- vious monthly peak.
While data on other major (ypes of rabber is not yet avaliable, the wyn- thetics fizure points tola March consumption of About 130,000 tons. The
previous monildy
WAB
to A
con-
120,000 font. named in January;
Weekly reports on tyre production also point to a Dew record for March. — Reater;
Symptoms
Of Illness In German
Economy
INTENSIFICATION MESSAGERIES
OF UNCERTAINTY
IN MARKETS
P.O. Box 53... Queen's Bldg.
M
MARITIMES
Tel: 20001,
M
PASSENGERS/FREIGHT SERVICE
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· For
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"LA MARSEILLAISE" 23-27 stay
President Eisenhower's statements on April 29 and 30, and Marshal Bulganin's May Day "FELIX ROUSSEL 21-23 July speech, can hardly fail to intensify the uncertainty in Wall Street and other markets.
London metals weakened immediately, on the inference that the President had foreshadowed further cuts in, defence. In the welter of con- fusion between U.S. budgetary appropriations, authorisations and actual expenditures, it is not in fact clear whether he did so or not.
But this confusion is itself a Those four ways are: great factor of obscurity. It is. (1) Elgar Japanese -exporta protty cortain-that-Congress is to the Briti Colonies which Roing to cut both. defence and are supposed to be relaxing -Imports
foreign aid.
restrictions
President Eisen- their bower insists on a "completely from Japan: new, fresh outlook" at military
The ExchLnge sweps; spending in relations the
to
(3) Japanese earnings of total economy. Since the de sterling frani fence programme, os it
non sterling stands, countries;
There are FOTIC
practical
small,
in a pivot for the economy and (4) Sterling usance credits to the markets, businessmen are Japan. bound 10 feet some uncertainty until they know the detalls of limits to all four of these. Con- the New Look.
[celvably, Japan may find her- All this dense obscurity may self able to buy cheap stor-
turnover uffect
maretian Ing" against outright sales of prices. On both Wall Street and dollars. The discount on the the London Stock Exchange, the cheap sterling would be Bonn, May 19. volume of business has fallen to but useful. The National, City Bank of
Over-riding oll West, German eco-ahout the lowest level of the
market New York writes: The situation
that Wall from year. Price changes, in such idle pointers is the fact nomy has recovered of the United States, no pietured
markets, may well be mislend- Street, the mujor barometer, by Mr Humphrey, may be likened its relapse of January and fag, Markets in both securities still fails to give a decisive to Sir Winston
Churchill's February, but symptoms of and commodities are likely
to technical volume signal on either description
the British more serious illness still remain decisive PRESC ultra-he bulf or the bear side. cennomy, when the Conservatives are apparent.
cautious.
Reuter. look over, as an express train
a few days up to about speeding out of
April 29 Induil-fal control
29 the
pence KCATC the wrong track.....We must first.duction index was 150 per cent markets had a reversal.
The of the 1036 level, but still below
on
The
The March
pra
bring the train under control and the postwar record high of 167 tonal inflationary interna!
then we can start it on the track."
right
The present heads of the U.S. Treasury and Federal Reserve are determined to do just that particularly by tackling what the same bank describes as "the misshapen structure of the debt which
the Administration is pledged to improve."
•
per cent established last Novem- ber, recording to a report by the Federal Economics Ministry.
tension Wall Street, rallied. rubber and the sensitive metals The equities in a
detenie British
securities gold shere and transferable sterling
-Cascil.
was
The Rubber
Markets
June July August
Production all along the line continued to show an increase in March es compared to February particularly in the textile and
Singapore. Moy. 19 shoc-making industries.
But this reversal itselt which
Prices of rubber futures closed. underwent particularly sharp becoming questionable even be- today as follows:- cut-backs in the firet two months tore the Eisenhower and Bul- Number 1 rubber, per 16. of the year.
ganin orations. Gill-edged were Wes Germany continued firming again and the rally in
metals show a foreign trade surplus in
was far from fully March, when it tolniled $47,- | hotding.. Some of the other re-
In- verse movements may be more Spot rubber, umbaled durable, Gold shares are the Blanket crepe
deantion but! No. 7 pale evene great equity In they are in process of correct- ing a weak technical posliion.
to
They regard it as their duty to repair the ravages of 20 years of easy money and of mismanage-009,000, and exports are ment of the national debt. More ereasing faster than Imports, 18.00 18.00 700 @ 10.00 technically, the whole structure
Futhe
the fact remains, thut of money roles has been raised
production dropped in January 738 because of increased Treasury
to an extent that cannot be ex- 100 barrowing at both ends of the 7.00
market-three months end 30
Provident
10,70 hal Dock .. Wheelock
715
2.10
1000
800 1
800
LAND, ETC
H.K. Hotel..
1.K. Land
UTILITIA
7.40 7.50 050 a 7.35 years.
2000 7.40
2300L 2.45
The Treasury's decision in 250 7.40 3007.10 April to borrow $2 billion had a 2000 7.45 big impact because it was unex-
tax
6 891 000 5615 pected. It was due to a short- Shai Land 1.35 1.57% 4000 11 fall income
revenues which was unforeseen and is slil inexplained. This is the flest
Tram_........
Pea Tram
(0) XD
(New) XD 17,00 Star Forry
C. Light (0) 10.20 10.40
243
1st time that U.S. inx revenues
10.30 in a boom, have failed to surpas
the budgetary
100 110
500 10.40
100 & 10,403
C, Light (N) 9.55 8.60 2000 # 6.55 Electric 21.00
..
DEMAND COVERED
Consumer goods demand aris. lag from 10 years of war and want now appears to have been covered.
ad
JAPANESE SWAPS
Number rubber, June
Nimber 3 rubber, June Number 4 rubber,, June
Via 13 Jane Salgad SA August Yokohama
via Marseilles to all Mediterranean & West Africo porta, via Djibouti to Madagascar.
oulwarsis "MONKAY"
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July.
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28 July
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"MONKAY"
July
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m.v.
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m.v.
June
June
...July
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June
June June 10
A
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-United Press.
21-21 221-21!
2014-21
United Pres
NEW YORK MARKET
New York, May 19,
no vales reported.
LONDON MARKET plained as seasonal only and is
London, May 19. 11 below last year's levels.
The rubber market was firm. Additionally, seasonal unemploy-
Prices closed today as follows:- Spot sterling may hold strong Number 1 ribber, in prece ment in January of this year enough, but some of its.
other De it. was 85,000 more than in Jan-varieties are more questionable. Jus ury, 1052,
July/September Transferable sterling will not petoner Decrinber casily regain its great strength - January/March of a few weeks ago, when not practically up to the offefal rate and some people in New York who were short of trans-
No. 1 standard futures closed. ferable sterling had. In effect, 25 to 30 points higher with sales Although 2,000,000 estimate: she
new jobs to buy it
with dollars. back
of 6 contracts. The No. 3 con- 2500 10.38 U.S. tax system is highly geared
have been created since 1946. More transferable sterling tract closed nominally 25 points 2500 10.40 to economic activity, so that the average number of unemploy- seems to be coming into exis-
higher with when business is booming money
has remained constant attence. British banking statistics 750 úr 2330 | tends to food into the U.S.
Just over 1,000,000, mainly for the month up to mid-April The spot and futures inorket 500 23.00-Treasury.
because of the constant now of imply that Britain had to make were idle with the undertone Electric 10,40 10.00 1000 10
refugees to West Germany from some special payments, perhaps steady-in company with London,
Prices elered as follows:- the Soviet Zone,, now averaging of as much as £50 million, for! Telephone INDUSTRIALŠ
30,000 monthly.
various purposes including Middle-Eastern oil royalties. July
Forward sterling is over September
December shadowed by fears of Japan's
Anre April the British Treasury, to swap operations. At the end of my July relleve Japan's shortage of ster ing which is officially regarded as transitional, agreed to allow Se
September Japam to do exchange swaps up
certain ilmit (ie. to sell Ma to D dollars against sterling spot, and July to buy back the dollars three or six months forward). The mere report that Japan inny do so im- mediately widens the rates against her...
Mocas
Coment
Rope
!
STORES, ETC.
Dalry
Watson
Lane
COTTONS
12. Ge is
500 or 15.20 800 15.30
000 15.30
15.70
18.00 18.00 1700 € 18.70
2115
Crawford.77.20 27.00 MISCELLANEOU
Ewo
Entertainment 17.40
This unpleasant break with precedent maybe the kind of thing which happens when one Administration sows for another Administration to reap.
กรก
Overall productivity is only eight per cent greater than be- fore the war, and production gains in the coal mining industry HEAVIER BORROWING
have been achieved by an in- However that
may be, the crease in the number of under- Treasury
much round, workers. Output per will require
non in heavier borrowings in
the pits has shown al- 1200 17 July/December,
over the pre- 1 no increase are most and they throwing their shadow before, war level.
Yet coal
is the production The recent 34 per cent bonds
key to the German economy. were described as a pilot issue." After what they did to yields
In 1032, West Germany produced 123,300,000 tons of and prices, the New York money
coul. 4,400,000
more than In market waits cheerlessly, for the
1081, but considerably less than rest of the flotilla in July/Decem
mine operators had indicated at the beginning of the "year" they could how,
Cotton Prices
In New York
New York, May 19. Prices of cotton futures closed today as follows:-
Spol July
October
December
March
July October
Ryn
May
1.5014
July
Oats
May
July
7336-48 734-36
May
Boybeans
goot
May
July
September
2.98-2.96% 2.70
2.HER
1.37-1.50
November January
Barley
Spot
New York
34.00 nominal 3422-34.23
23.03
33.03-33.95
33.01
33.00 bld -United Press,
33.70 34.20-34.21·
NEW ORLEANS MARKET
Spot Juty October December Hour per 200 lb. Szek March
May July October
$15.00 nominal-United Press,
New York Sugar
Futures
in New York, May 19. World No. 4.sugar futures closed unchanged to 4 points higher with dies of 270 con- tracin Domestic No. 6 rugar closed unchanged to 3 points higher with sales of 148 con- Both markets were less
today although
the
undertone held stendy In com- pany "with", "the raw. "market. Prices clcked as follows:- Contract No. 4 (world)
July
September
October
January
March
Reptember
3,154 nominat
MAY
July
Spot
33.04 33.03 bid 3)14 33.03 bld 23.00 d -United Press.
N.Y. METALS
New York, May 19. Prices In the metal market closed unchanged with the fol- lowing exceptions:-
Tin, grade A (00.80 per cent or higher) New York, per ib. 99.50 cents.
In the Arst week of May, money polley may have turned a shade less stringent. A tem-
porary purchase of $54 million of securities by the Federal Reserve helped the New York banks and was almost its first helpful action this year.
Previously the New York banks had had outright defcits of reserves, even after they had
raised their Joan
„FOUR_WAYS.
December. March
No. 1 standard“
25.5 nominal
2150 bid -24.35 aamisal 24,25 nomtral 24.15 numinul
་
No. 3 standard
23.20 nonitral 23:3 nominal
23.15 nominat
23.03 nominRI)
23.04 nomina)
23.05 nominal
United Prest
forward JAPANESE BONDS
In fact, Japan's shortage of sterling may last some time. and none of the four ways of} vassed at the end of April may relloving it which WITC can-
United States, turn out to be the real
tion: by Ruhr In-
HAD TO IMPORT had to import 7,300,000 tens of As a result, West Germany coal from the
and it is estimated per cent of dustrialists that all plg Iron produced in the Ruhr last year was heated by this American coal,
All parties admit that with the
Japanese bons-
London, May 19.
814 $814 120
"A" (4t. of 1892), "3" (48, of 1910) "C" (5%) of 1907) "D" (56, of 1924)
(3 of 1030)
-United Prest.
solu-Consola
M.V. “LA MARSEILLAISE”
will sail for MARSEILLES
Vin
SAIGON, SINGAPORE, COLOMBO, DJIBOUTI, SUEZ AND PORT-SAID On
SATURDAY, MAY 23rd, AT NOON
lass of her bread basket now rates, sold forming part of the Soviet zone, securities and borrowed heavily Westien Germany can
survive from the central banking system. only by increasing her exports. Excess reserves of the member But they also admit that she banks as a whole in that week cannot remain competitive un- were rebuilt to the respectable less productivity is increased, |level of 3378 million, from the Capital appears 10 be the derisorily low or even minus biggest single scarcity, both to levels of some previous wecks.
build houses
of】| EMBARKATION: ses near places work, and to modernise plant. After the uninterrupted slump, But the capital market in West the New York market in Germany is small today, mainly Treasury bonds rallied on May because taxes exceed one-third RAGGAGE: 6 and 7. The Chairman of the of the national income, Federal Reserve Board 'stated on The Government took its first. 7 that a liberal casing of step toward easing this situation the Government's monetary when the Lower, House of Par- policies will be forthcoming when Inflationary
tament approved its motion to dangers no reduce income taxes by 15 per longer threaten economic cent beginning June 1-United
Press etablility.
But meanwhile the member Copper (electrolytic, export, banks borrowings from the
New York, cents per pound) central banking system have Pepper Market
20.75--30.00.
Lead (common, New York, cents per pound) 12.75-United Press.
risen again to hear the billon-
.
dollar level and their hott in
eb
... New York, May 19.. dodness in well over half
1011. The Fereral Reserve à 15. The pepper market ruled qulet Chairman made it plain that for and unchanged today. Grinders
IM
the
Exchange Rates No doubt its purpose in making line with the
.3.76
$395-3.74**
3.28 3.87 nominal 3.63 Ltd
0 nominal
65 nominat
3.70
172-3.08
U.. dollar (per, 31),
Kierlink, note (per. 21)
Beate
B.75 nominal
Bian tests per 100)
Ringapore (Strait);
United Press.
FIC plastres (per 100)
Immediate present least, and buyers conunund cautious Washington is still disinflating, while sellers maintained prices primary money dearer is to have taarkela D Businers was done in the fort room to make it cheaper Spol pepper was hidrated t nometal exchange
If and when relation is needed this market
around $1.47
with a pound, morning at the following rates to
4 recession, avert
When floats and May shipment at 1ba7 Book Rate is only 2 per cent in about the same level, June was Indonesiata guilde; (per 100) £1.80 a boom, there is not much room. Indicated at around. $1,45)
300 to put it down, in a slump.—pound, on an ex-dock basis.---
United Press.
6.043
Reuter.
094
138
014
cabin
Passengers are requested to board the vessel between 8 and 11 a.m. on Saturday, May 23rd. ... Baggage. room, hold and 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 5 p.m. on Friday, May 22nd and from 9 to 10.30 nm. only on Saturday, May 23rd. No baggage Toom or hold luggage will be registered after that time.
CABIN BAGGAGE: Cannot be accepted on board before
embarkation time. Passengers will therefore have to collect their baggage from the godown between 8 and 10.30 am, during which -period, cabin baggage: may also be registered. Passengera are request- ed to note that ALL BAGGAGE must be registered as prescrihod above.
Compagnie. Does Messagerios Maritimes Queen's Building,
Tel: 26851
Tel. 20461
Males and rotation subject in change wlinout matter.
At liberty to proceed via other parts to load/discharge cargo.
EVERETT LINES
EVERETT ORIENT LINE Fast regular freight-refrigerator-passenger service to Korea, Japan, Philippines, Indo- China, Slam, Malaya, Rangoon, Calcutta and Chittagong.
"REBEVERETT”
Arrives Sails
...........Mas........ 27...koni Manila..
May 28 for Singapore, Ronang,
“LENEVERETT"
Arrives Sails
Rungoon, Calculin,
Chittagong
June 2 June 3
from Singapore. 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, Slam, Malaya, Colombo, Bombay, Karachi and Persian Gulf Ports.
"NORDSTJERNAN”.
Arrives
Sails
May 28 from Singapore.
May 20 Moji, Kobe, Osaka, Nagoya,
Shimizu & Yokohama.
"STAR ALCYONE”
Arrives June 4 Sails
June 5
from Japan.
for Singapore, Port Swellen-
Colombo, ham,
Bombay, Karachi, Khorramshahr & Dahrein,
(Accepting carro for transhipment. Kobe/Puran and Kobe/Okinawa)
EVERETT STEAMSHIP CORPORATION S/A Queen's Building, Telephone 31206. Chinesa Department: Telophone 28293.
BUSINESS REGULATION
ORDINANCE 1952
Copies of the prescribed Forms 1(a). 1(b) and (c)
Now On Sale at S. C. M. Post, Ltd. HONGKONG AND KOWLOON:
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