1953-06-25 — Page 9

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THE CHINA MAIL, THURSDAY, JUNE 25, 1953.

Weakness In American Japanese Ta

Financial Markets A Temporary Phase

(BY SYDNEY S. GAMPELL, REUTER'S FINANCIAL EDITOR) Conceivably, the weakness in U.S. financial markets, which cul- minated in near-demoralisation at the beginning of June, is only a temporary phase, as business may have been borrowing ahead to forestall a possible worse squeeze later.

British Car Record

London, June 24. Motor ear production in May reached the highest ever monthly figure, the Society of Motor Manu- facturer and Traders an- nounced today.

A total of 50,000 gave a rate of one model every 15 seconds and topped tho previous peak. In Novem- ber 1950. 4,000 ears,

Britis! factories also turned gut nearly 19,700 commercial vehicles in May, nearly 3,000 than the April Reuter.

Mord

total

CAPITAL

GOODS FOR PAKISTAN

Lon lon, June 24. A scheme for supplying Pakistan

Japanese and with British capital goods was dis- cussed İTL messuge in the Financial Times.

Karachi

paper's correspondent in

declared:

ber of British and manufacture.s have

nun-

Japanesa agreed to supply copita) Koods and machinery Pakistan with

payments to be made in instal- ments extending over five years.

This will help Pakistan to get over her present exchange shortage and will ensure flow

the

cx-

In panicky markets there were some panicky ideas that the Federal Reserve might procuro an outright monetary deflation in the second half of this year, by refusing to put money into the credit base, to meet the seasonal expansion of needs for credit.

Such fears were certainly exaggerated. The US. authoritles emphatically do not want a deflation, and are fully prepared to put out monoy (by open-market pur- chases of securities) to meet any genuine seasonal needs, But they do feel that unless the headlong expansion of debt braked, it will itself bring on a deflation or a slump.

So Washington will not international outflow of gold and willingly ense or cheapen money dollar balances from the US, to unless a business setback cuts exort its normal Ughtening effect business loans. It is much more on the U.S. money market, with- worried by the rise in debt than out eitlier official help or official

hindrance.) by the rise in interest rates.

The Federal Reserve's actions:

ance.)

The Fed's outright purchases

Government

Propose New Trade Talks

Tokyo, June 24. Japan whority will pro- Dove to Britain that they hold another, trade discus- alon some Ume In August as Japanese exports to the to sterling' Arra coniinus docline,

to according Kyodo news agency today

queting Government

BOUTCOR,

These sources were re- ported to have disclosed that the Government on Monday received a com- munication to the effect that the high level of prices in Japan was chiefly responsible for the fall in sterling trade.

The Brillahi noto Was Bald to have constituted a reply to a Japanese Gov- ernment request at the end of May seeking lowering .of

import barriers by Commonwealth countries and other sterling area na- tians.—Repter.

HONGKONG

SHARE MARKET

(From Our Correspondent)

Business done on the Stock Exchange this morning, amount- ed to $187,546.40. Noon quota tions and the morning's frans- actions:-

BRANES BUYERS BELLERS SALES

DANKS

HK Bank East Asia

in the week up to June 3, which have most psychological effect. saw the worst of the demorali-

rall-Psychologically, the markets sation, Illustrate its reluctance were helped even more in the to put out money. Its outright week up to June 3 by the Fed's open-market purchases of bills in that week jumped to $108 purchases of long-term bonds on million, compared with a total

ed with a total behalf of various of $157 million in the previous Trust Funds, even though these previous purchases were little more than three weeks and with nit lu all routine, and only trifling in the earlier part this year. amount-less than $5 million, (It had been a seller of about $900 million in the early weeks though doubiless the timing and concentration of the purchasta WIR designed

lo give The maximum help to the market with the minimum expenditure SHIPPING of ammunition.

of the

of

the

absorb year, to scasumal rellux of currency thereafter, until May, it was completely neutral, allowing the

With

Trade Red China

Inevitable?

San Francisco, June 24. Mr. Hussell Smith, executive Vice-President of the Bank of

were

ACTUALLY A FALL

(Central banks are good at that kind of thing; the Bank of mar- England is sometimes vellously good at (1) But in the

the Federal same week Reserve sold $75

million of bille that it had previously bought under repurchase agree- ments, whereas in the previous week

had bought $94 AL million in that way.

So its practical help to the market and to the credit base of capital goods into the country Amorica, niti today that finan-

actually fell from $100 million "Under the agreement with cini conditions in Japany

In the May 27 week to only manufacturers, tive

June 3 the good, but added that Japanese $33 million in bo required to porters may

China week of demoralisation, cven trade with Communi open, in a bank mutually agreed

though the

from the help upon, a non-resident rupeo accomed inevitable,"

dlmul- Mr Smith, who is in charge of external balance was count into which the importers the Bank's international activi taneously falling from plus $54 will deposit at the time

after his million to minus $10 million. placing the order for goods antics, that reporters

a three- (In other

Inter- words, the amount not less than len per turn today cent and not more than 15 per monti varid tar that he was national movement of reserves not an wivooxe" of Japanese in the form of gold and dollar cent of their c.i.f. (carriage, trade with Communist China. balances reversed from an in- Insurance and freight) value. Biz ho odded: "It is talked flow of $54 million to the U.S. "On proof of shipment of the about by the businesmen in in the May 27 week to an out- goods, the importer will deposit Japan and their salesmen abroad: now-of-$10-million in the June-

of

frun

into the account a further sunt They to araby raw na eleis week.) From the Fed of not less than 25 per cent and in Manchuria whie they have

not more than 30 per cent on the c.i.f. value.

"The balance will be paid in agreed instalments."-Reuter.

Losses In

and

from International reserves to-

to buy iron ores from the United | gethi the aid to the market

States end the Philisins,

"The Kolen reconstruction, if and when peace is established,

slumped

"from

om $220 millon

the Agures

can interly, according

as one enphasises the smalmness of the practical help or the technical sold-out conditions in which such small help could have had such large psychologi- the cal effect.

ماز

to only $17 million.

One will be a large economie factor" bullishly or

Mr Smith described as "bright, spots" in the Philippine economic ship- situation the country's ments of iron ore to Japan.

Mr Smith added that he

time for thought it was

change Unitel States to tariff and customs procedures,

"As a country we have out grown the time when every in- to be protected by dustry has tariffs, Industry should opproach mor: reaistic policy," Cutton traders today forgot | said.--Reuter.

when else everything became pretecupled with

• about they

Cotton Futures

New York, June 21.

the adjustments in nearby July

on the first notice day.

The issuance and steady clr- of initial tenders for culation 32,400 bales kept longs on edge and brought in recurring furries of liquidation. July dipped to 33.08 cents 'a pound, Its lowest level since mid-

a

Best Market

For P.I.

Manilo, June 24.

IN A GROOVE

money

It is not only the markets that have been acting

aminously.

Wall Street's industrial intex has been making a bear-market pattern ever since January 5, and lately the technical action has deteriorated, with volume showing some tendency to con- tract on advances and to expand on Reclines.

Were it not that markets are so thin both ways, this would very ominous technical signal.

be a

Chartists are An executive of the largest the fact that

though ating party

January and on overnight loss and oldest cigor manufacturing of $1.95.

company in the Philippines sold Day trader covering

and today that Spain is at present mill demand lifted prices from the best market for Philippine the extreme low at the close.lent tobacco.

encouraged by the mile Index,

Concier ing how prosperous the rails are, holds above its 1953 tow,

It is not doing so by a very safe margin · but one van Etlil

July finished of 27 points and According to Senor Don other months off-4-to-10-points Federico Perez, Vice-President the omena na indecisive...

Prices closed as follows:-

Spul

July

33.00 53.24

Compania General De Tabacos De Filipinas, Spain

October December

July

October

December

NEW ORLEANS MARKET Spot

October

December

March

Moy

July

October December

13.00 3110-13.20 35.40 33.80 bid

34.05 uid

United Press.

LONDON TIN MARKET

London, June 24.

The tin market was tehdy at

the lower levels. Prices closed

at the end of the official moming

session as follows:---

Spot un, buyarı

spot in pellers |

Nurisers done at

Three months tir, buyers Three-intartha-tin. Volers Rusiness done at Betrinent

So far, it would be fair to my Wall Street is still in a wather 'than decline,

INSURANCES

Union

Cantim

MK Fire

Asia Nav

DOCKS. ETC.

K. Wharf

1520 27+ 1500

140

235

778

140

1.30

Dock ..... 19.00

Provident Wheelock

Hongkew

LAND, ETC.

HK Hotel 10 Land

11.00 13.70

7.00 7.00 2500 1:00 500

7.35 1.853

7.70 7.80

02 83500-462

ilumphrey.. 5$

UTILITIES

Tram

Star Ferry

23.40 23.60, 500

112

C. Light (0111,30 11.30 250 C. Light (N) 7.16 7.20 1000 Electric 25.30 25,50 1300 11 25.40.

Seaway Project Tenders By

British Firms

A new stage has been reached by the British contractors who have been investigating the poa. sibilities of participating in the St Lawrence Seaway project.

MESSAGERIES

P.O. Box 53. Queen's Didg.

ORtward

M