1953-07-07 — Page 9

Outlook For Dollar Reserves Has Shown A Real Improvement

(BY SYDNEY S. GAMPELL, REUTER'S FINANCIAL EDITOR) Touching wood, the outlook for the dollar reserves of the non-dollar countries has really improved.

The outflow of reserves from the U.S. during the second quarter has been slower than in the first quarter: In particular, the outflow of gold has dwindled from $625 million to only $75 million.

THE CHINA,MAIL, TUESDAY, JULY 7, 1953.

But during the second quarter foreign central banks have moderately necumulated dollár balances, whereas in the first quarter they triflingly drew on their balances; and they have greatly stepped up their sccpmylation of dollar securities-from $97 million in the first quarfer to $227 million in the second quarter.

Over all, the outflow from the U.S. in the second quarter was at about hair the rate of the first quarter.

Havana Rail Rumours

An announcement by the United Havana Railways Company in London June

rumours

Havana,

21

Even at the reduction, it should be good enough for anybody. reasonably expect One cannol conthrionner of the first quarter cutflow of $750 millon which was not so much as outflow as a risiring tide,

The world needs to earn some reserves from the US. but i dots not need to earn them at thate of $3 billion a year, as in January-March. The U.S. is 01 not the only source of reserves deflated -the tor the non-dollar world: it also circulating in Stockholm

clsewhere that purchase of the Railway by the Swed- ish financier, Axel Wenner-! Gren, was on the verge of completion.

The

mest

board

Company's Jaconically

announce

announce- read: "The that their

Deputy Chairman, Mr W. R.

returned as planned

Tomkinson, r

from

Cutxi on 17 June, 1953,

after, discussions with. Mr Axel

HONGKONG SHARE MARKET

(From Our Correspondent)

|

hus its newly-mined gold output of about $kuv milion a year.

For this output the monclory author:lies have to compete with be hearders, but since most of the heurders have lost their ap- petite the fleials are getting a better share.

non-

The drumatle change in U.S. money policy, marked by the cut In the member bunks' reserve requirements, gives t dollar countrica more tether. Now that the US. has reversed to- ward monetary relation, Britain and oth Countries can cor respondingly reille without endangering their reserves.

ABOUT EQUAL In the 12 months up to March of this

year foreign countries gained more than $2,300 million from transactions with the U.S., where in the previous 1 months they had lost $800 million uf reserves to the U.S.

In publishing the figures, the U.S.. Department of Commerce points out that the $2,300 million Just about equals the bett foreign aid landed

by US Govern- cout ment loans and grants to foreign countries during the same 12 Business done on the Stockmonths. Weuner-Gren, règarding

Exchange this morning amount- Thus, the Department says, Jalter's desire to purchase the ed to $789,585,80. Noon quota- "the rest of the world as a whole, Company's undertaking and as- tions and the morning's trans-but not necessarily individual sets IA Cubo

the actions:- medium of

of a company to ho formed for that purpose. The SHARES BUYERS SELLERS SALES negotiations could not be com-HANKS pleted until Mr Axel Wenic-

through

the

Gren had concluded his arrange INSURANCES ments with the Government of Cuba and they have according-

1K Bank East Asia

Canton

140.

23 1400

15.

217

Unki

780

0044

141

18.10

.

1K Fire...

ly been adjourned in the hope SHIPPING Ahat Mr

Axel

Wenner-Gre

will be able to conclude there Currangement), when negotin- tions will be resumed."

As trendy

concern

reported

vf problem

and high

from

Waterboal Asin Nav DOCKS, ETC K. Whart

Dock Provident

S'n Dock Wheelock

LAND, ETC.

countries, could live balanced its transactions with the United States without such Government grants and loans."

in the Interest

of

In other words, the whole of the U.S. Government's foreign aid went to

to enlarge the reserves of the non-dullig" countries!

It was obvious that something tonasike this was going on, and that, world no 50%) equilibrium, it was desirable

100 60

The Bank for International 20.20 12.10 12.30 2000 12.20 Settlements and many other

1,00

observers used to emphasise that nothing better could be done with Marshall Ald than 1ợ use it to enlarge the

rescrves of

83

7.05

1.00

6000 FAB

6000 v d

8 2000 of 7.95

02 500+ Gil

the recipient .. 815

350 10.40)

IIK Hotel

HK Land

wages.

Sthat Land 1.135

Humphreys 16.10 UTILFFIES

Tran

24

1500

.

1000 24

Havana, come major arrange- iments that Mr Wenner-Gren or any other buyer would have to make

the Railway's labour

EXCESS 1ersonnel Others may concern the question of the Railway's surplus lands, the preferential_freight rates on sugar cane and sugar.

It is known that on June 12) Tomkinson had an inter-i

President Batista, with

પ્રવાસન accompanied

Wenner- by Mr-

and

view

Gren and by Mr Wenner-Gren's

Jawyer. Dr Guillermo Belt,

Termier Cuban

Ambassador

Sur Ferry . $14

C. Light (0)

C. Light (23) 7.85 Electric

20

Maena Elec

#.30

Takakong

to

Washington. The interview is belleved to have been favour

able. The

for

Railway is vítal

of

Cuby's

the carriage vital sugar crop, and something will have to be done about it. It just managed to carry. the which recently nugur harvest ended,

but it is in

danger of breakdown,

constant

LITTLE HEED Even before the Company's eraguncement,

London had taken little heed of the ramours of imminent completion of the deal, Central option, as ex- pressed in prices of the Rail- way's stocks, was that the deal·

night

go through, but that it is

011-

INDUSTRIALS

Cemedi

17

Su

What is surprising, and 2006 23.60 |

23.70 encouraging,

1200 44 12

400 6

7

1000 25.30)

is the tacit ae- ceptance by Congress and U.S. public opinion that this is also in the interest of the U.S. itsell,

A Democrat Administration sild 400: 25 not allow

Marshall Aid to be 2500 28

101 23.30 used to enlarge reserves; as soon 1000 8.60 as it started to have that eff.:

13220.40 1.03 20.40 in Britain, it was cut off from:

-10 201 1000 20.0

2

H

Britain.

ALS

A Republican Congress might 30-1700 17.40 have been expected to use the 1500 1766 enlargement of foreign reserves elinching argunent for being 5001751iberal about ald and imports. Rope STORES, ETC.

Yet the simple and almost in- Quiry

218 219 506 210 creible fact is that, several BAX 21.00 months after the Republicans 2130 came into power, the whole nett 40324.40 amount of U.S. aid has been 245 devoted to giving the non-dollar 2700 23 countries a transfer, or a claim to a transfer, of an equivalent 325 par of the U.S. gnid stock.

Watson

....2440

L. Crawford 200 COTTONS

Ewo... .15 Texttle Corp. 533 MISCELLANEOUS

Yantre 10 6

Yangtze (N) JUD

SM 21,900

3300

1500

1500

0.50

outery

After several months of that, 455 there is no particular

against 11 in the U.S.

Protectionism there has to be stealthy and shame-peed rathe than blatant; and, the Federal Reserve

fowards bas turned easing money within the U.S.,

has disregarding (as

the fact that previously done) this conduces towards on outilow from of reserves

the U.S.-

The Rubber

Markets

by no means a certainty and, at best, it would take time to solve the dimeuit problems that are involvert. Prices of the Rail-

the way's stocks before nouncement were steady, but tale

and appreciably betw the levels reached earlier this month, when the London Stock Ex- change did hope that the deal would go through quickly.

The Rallway's senior stock July

stands at about two-thirds, and Ho other

Singapore, July 6. Prices of rubber futures clos:d today as follows No. 1 rubler, per it.

August

Sepi.

0014-16

07

siceks at little more No. A rubber, per 1b. July 812-62 than a half, of what they would No. 4 rubber, per lb. July 01-01 be, worth

if Me Wenner-Gren Spat rubber, unbaled.... 65%-80% bought the Railway at the price Blanket crepe

67-00 .72-77

ore Nu. rubber, per is, duty s+14-03-

of £6 million which the British, 1 pale crepe

The market was steadier on Company is believed

to be short covering, with sellers re. respard

esking. On information so served-United Press.

the

for available, exp

these prices

experts

as

realistic 1

appraisal of the prospects.

LONDON MARKET

London, July 6. Prices of rubber futures closed One reason for Mr Wenner today as follows:- Gren's interest is believed to be No. 1 3159, in pence per 1b. 10% his desire to give the world a Selement

Business done at

large-scale demonstration of the No. 1 rubber per iù.

monorail system, on wilch there

July have been experiments in Ger August

Bept. many.

purpose, Bu No. 2 rubber, July other important railway system No. 3 rubber, July

For this

in the world could probably be No. A rubber, July bought for до little

food, The Railway's surplus

10.

1914

1936

103

Reuter.

LONDON TIN MARKET

London, July

Prices of the closed today as follows:-

Sput in, Keller

Spot tin, buyers

023 627 Business done ntire #273 Un. Iyers 6zzi Three monİİLM Three months tin. sellers 25

023-8224 Business done at Settlement *******

027 The market was steady at the lower levels. Spot was marked down £12 to £023 per long ton-United Press.

Exchanges In

London

AS

million.

million is more

£3 Blanket crepe On the other hand, £3 than chicken-

No. 1 pale crepe

-United Press NEW YORK MARKET

New York, July 6.

New York Blontreal Amsterdamt

23.10 bid

#3.43

23.45

lands hre understood to be Prices of rubber futures closed res

valuable. If Me Wenner-Gren today as follows:

or any other buyer were allow July

ed to sell them as the Company December September

Itself at present is not the nett March 1054

cost of the Railway itself might May

be a bargain-Reuter.

London, July

7.01 9/16-2.0) 11/16 2.796-3.79% 10.5815-10.60)| 150,00-139.00

Osio

10.00-31 Zurich

11.10-12.18T Deutsche Mark.. 11.70-1.703 Copenhagen..... 10.30-19.3415

B00-00015

14.311-14.63

23.30 cominal Stockholm,

23.30

"

Judy

21.30 No. 1 Rubber

futures closed 10-40 points lower will sales of 40

JAPANESE BONDS contracts, Dealers reported a

London, July 0.

Blocked Mark 13%-10%

United Press,

Burma Sigus Underlying Tone MESSAGERIES

Trade

With Belgrade

Burma and Yugoslavia have Just signed a trade, agreement with iminediate effect.... At can be....icr minated as three months" notice, by her side,

Under, the terms of the Adrecruent Burma will ex- port rice, raw cotton, teak, rubber, tin ore, wolfram ore, silver and fang-bil to Yugoslavia.

In return, Yugoslavla

Burma supply

with machines and agricultural tools, machine tools, build- ing materials, explosives, chemicals, electrical equip ment, passenger and goods

wagons, textiles, cranes deep-drilling equip-

ment,

Wall Street

Again Stages

A Rally

New York, July 6.

further Stocks ralliori a bit today with industrials closing

the

heading

rc-

higher for the 11th time in the past 14 seasons. Rtalls, however, lost a few cents.

Experts warne:i that market

might be against

and slatuneesistance,

develop in late trading But, like the carlier this, dip from, the highs Jour. Salts for the day

amounted to 320,000.

The market was hampered by light

volume and by the carry- over from tast, work at the un- taxes certainties, surrounding

Korca.

Ол and

the more the ex- side was optimistic pectation of sharp, carnings.

and gains for many companies in the second quarter,

for reports which period are

bc Soon to issued.

Steel shares slipped back

today. Motors

were mixed with Chrysler down 4th point.

Witt few exceptions,

13

the heading olia moved ahead. Facilc

Western Oil lost more than a point., A total of 987 issues appeared on the tape. Of the number, 112 advanced, 333 declined and 252 held un- changed..

1

The New York, stock exchange band volume was $2,170,000....

The American stock change volume was 420,000, United Press.

Cotton Prices

Go Higher

Cotton

CX-

New York, July .. futures moved higher after early Irregularity under the influence of a rally in nearby July,

The list closed near Its highs. 16 to 20 points above the pre- vious close in contrast to its opening range of 17 points lower to three points higher,

The nearby July fell 85 cents a bale on initial trades, but then rallied on mul-buying and short covering. The

wering. There were also re- One porter on cotton screage. report estimated cotton plantings at 25,400,000 acres and another 24,775,000 acres compared with the actual plantings last year of 26,922 000 zcres.

at

December

Prices closed today as follows:

Spat July October

31.20

33.29

34.00

34.14

34.44

34.44

34.21

4.નહ

Alarch (1951)

May

July October December

33.43 nom.

United Press,

Of

Has

Equities Improved

(By Norman Crump, Sunday Times City Editor). Since the beginning of the month markets have had to face the disturbance in Eastern Ger- many, the action of the South Korean Govern- ment, and the long delay over finding a new Government in France.

Queen's Bldg.

Outwards

M

'Page 9,

MARITIMES

Tel: 26651.

M

PASSENGER/FREIGHT SERVICE

Leave Marseilles

"FELIX BOUSSEL” ♫.Ballad "LA MARSEILLAISÉ”, “ July "VIETNAM

Homowards

July

Leaves Hongkong "FELIX ROUSSEL" ..25 J. "LM-MARSEILLAISE” 4 August “VIETNAM” .........' August

Itongkong 10-11 July

2-4 Aug.

Ing Yokohama

0-10 Aug. Yokohama

Baigun

Dun Marseilles Via.

23 Aur

Manila

27 Aug.

Saigon

14 Sept.

Balgon

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

Ontwarda

"MEHONG"

COURBEULLES"

Homewards,

FREIGHT SERVICE...

Leaves

Europe-8xiled ...Europe-Salled

Leaver

+1

Ku

23-24 July August Tiongkong

For slapan Зарад

For

Krefung-14 July 18 July Keelung 3 August Avgust „Keolung-18 August 20 August.

I can remember many a year in which even "MONRAY" one of these three events would have caused a "BILVERBANDAL"

"MEKONG” pronounced market set-back,

"COURBEULLËS” Keelung 1 October 2Pctober

Yel, in spite of the existence recent experience, lead to the of a bull position in gilt-edged converse results in every case. stocks few weeks ago, 3 per Hence the fairly common ex- cent War Loan has fallen only (perience shown. by the current from 82 to 80 15/16. Industrials, series of company reports. Most on the average, have, hardened, of them show a serious drop in

and there is an impression that profits. If not actual loses. jubbers in this market are now Equally they show ample liquid short of stock.

resources

MAIN FACTOR

These facts suggest that the. In several cases the decision underlying tone of securities is has been-rightly in my view- stronger than is superficially ap-to maintain dividends, even al- parent. One

further fact can be though the latest year's profits acidicul

although in my view it is are not such as to justify that of lesser Importance. This is the course." impending offers of steel shares, whether next month, or, as, now seems more likely, in the autumn.

When the investor comes to Some people think that already they are holding back prices, ou look ahead, the important factor the ground that they will absorbs that the emphasis is still on The world is now, a whether institutional or

exports. money,

buyer's market, and Japan and Germany are

growing factor. Against this is the assurance

Again, all our American friends that payment, can be made in have rightly told us that, if we wide but undeЛlned range of want to sell to them, we must outstanding Government

stocks work hard to get their business, Here the forecasts become a little Salesmanship, conte money, and Ypque.

If payment is made in cash, so it is said, that cash, will we must be prepared to spend it. It follows that we must watch be used to redeem Treasury Bills,ir

Therefore, the our home costs. and indirectly this

dire the

Wholder of. British equities must strengthen

market

in watch closely the course of wage "shorts," On

the other hand, if

demands and new wage agree- Is the institutions who payments.' ........

private.

ensh, they will have that much

Raw material prices he may les money with which to buy say, are falling, but this helps

hurts."

A STAGE ARMY

our competitors equally with our- selves. Therefore, I repeat,

To all this I have a simple watch home costs. If, however, here, the present answer. Taking all these possi-all goes well bilities into account, the ebb and strength of minrkets is a good flow of money over the impending augury for the future of British steel share Issues, will largely equities. resemble the manoeuvres of a stage ormy. On balance they have over-much should eflect upon the general level of: security prices.

not

Of much greater import is the old question of security supply and den

demand. On the demand

Grain Prices

In Chicago

Chicago, July 0. Prices of grains closed as tol- lows

Wheat (No. 2, red, per bushel

In cents)

100 10536-102 303-34 2004-

20711- 21031

per

side, this much can be said. Anyone who has to collec" money from door to door, whether for political, social or charitable purposes, will agree that there In less money about today than there was a year ago. This may

Spot argu-July seem a relatively trivial ment, but it is pertinent, both as Sept. justification the Government's Dec

March 1034 monetary policy and as showing May 2954

Corn-(No. 2, yellow, that the average man is short of

bushel in cents) spare each, whether for Invest-

Spot ment or other purposes.

Meanwhile the flow of new July Bent issues continues. On the whole Dee they have deservedly met with March 1954 success, although again, one May 1954 would like to know how much

from

the of their

13223-15 support came

July institutions. To reinforce

Το

1314 my

Sept... however, previous point.

the Soybeans (price per bushel dividing line between

success

in cents) and failure is very thin. This Spot was proved last week, by the July

ATEURL partial failure of Capetown and

Sept. Nov. Durban. offers...

1037% 154-1537 1401% 141-142 140 1401 Bre-price-per-bushel in

cents)

Jan. 1934.

Murgy 1994

Barley (price per

cents)

VERY DIFFICULT Coming now to British indus- triuls, the "Korean boom" in raw material prices and subsequent Spot slump makes it very fficult to New York hour-der interpret company results. The $12.40 hid.-United Fress. dificulty remains, - because al-

past

27034-27114

25937-260

249-24312 2003-2004 bushel in

130-160

Ib, racis

though the

nine months"

trading has been more stable, the

São Paulo, Cotton

the

latest company reports still cover

New York Sugar to

Futures

New York, July G. Prices of sugar fülüres closed today as follows:-

July

Contract No. 4 (world):

September

October

January (1054)

March (1954)

May

July

September

Spot cents per lb. 1.0.b.

(Cuba)

July September November March May July

1.01 bi

3.60 bid

183 nom.

3.45

3.40

3,48

3.47 nom.

3.47 nom.

3.00

5.92 bid 4.03 hid

Contract No. 6.

September November Spot (cente per lb. c.f.

5.62 bid 5.71 nom. 5.17 nom. 9.77 nom.

York ex-dock) .... 9.00

year beginning April 1,1952.

Sao Paulo, July 6, To risk some broad generalisa- Prices, of cotton futures closed

rising commodity prices today as follows! cause higher apparent (and tax-

(cruzeiro per kilo) able) pronts,

taxation,

July for stock, re- October bigger charges plenishment-mid smaller ilquid December resources. Falling prices, which MAY

been the world's more

have

+ Salgon, Marseilles, Algiers, Oran, Tanglers, Casablanco, Le Havre, Antwerp, Rotterdam & Dunkirk.. Subject to change without notice.

MAERSK LINE

FAST FORTNIGHTLY SERVICE TO:: NEW YORK. BUSTON, BALTIMORE & PHILADELPHA VÍK BAN FRANCISCO, LOS ANGELES AND PANAMA. NEXT SAILINGS

m.v. "HULDA MAERSK" m.v. "CHASTINE. MAERSK” M.V. "TREIN MAERSK

In Puri Buoy. A-10

July 17. Aug.

2

ARRIVALS FROM U.S.A:

July

B

July 14

Aud

m.. "TREIN MAERSK m.v. "MAREN. MAERSK”

m.v. "OLUF MAERSK“

For Freight and Fürther Particulars please apply to:-

A

AGENTS:

JEBSEN & CO.

Pedder Building.

Tel. Nos, 36060-9

Chinese Freight Booking Office

27, Connaught Road, C.

Tel. 20461

Dates and rotation, anbject to change without notice.

A liberty to proced via other ports 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.

"BRADEVERETT"

Arrives Sails

July 18 from Manilo,

July 17 for Singapore, Penang,

Rangoon & Calcutta,

"REBEVERETT”

Arrives Salls.

July 26 from Singapore,

for July 27 Accepting cargo for.

Kobs

& Yokohama,

raiment

Kobe/Pusan and Kobe/Okinawa)

EVERETT STAR LINE

Fast regular freight-refrigerator-passenger service to Koren, Japan, Philippines, Indo- China, Slam, Malaya, Colombo, Bombay, Karachi and Persian Gulf ·Ports,

"THAI"

Arrives

Sails

July 11 from Takao

July 12 for Singapore, Port Swollen- hom, Madras, Colombo, Khor+ Bombay, Karachi, ramshahr, Basrah Babrein,

"STAR ARCTURUS"

March 1934

United Press.

Spilo

M.V. "FELIX ROUSSEL"

WILL SAIL FOR

YOKOHAMA and KOBE

ON

Saturday, 11th July, 1953, at Noon

EMBARKATION:

World Number & sugar futury BAGGAGE: closed unchanged to off and print with. sales, of 300 contracts. Domestic sugar Number i supor closed unchanged, to one point lower with sale of 25 contracts. .in Futures followed steadiness. the raw market where sales

Passengers are requested to board the vessel between. 9 and 11 am. on Saturday, 11th July,

Baggage room, hold and cabin luggage will be registered at the Kowloon Godowits; Godown No. 50 (No. 2 Gate, Canton Road entrance) from 9 am to noon, and from 2 to 5 p.m. on Friday, 10th July,

were reported at 0.40 per ID. CANIN BAGGAGE: cannot be accepted oh bohird before

delivered. United Press.....

Cotton Futuros In

New Orleans

New Orleans, July. 0. Cotton futures closed today as

Exchange Rates follow

very dull market with factories {"just not interested." Tha...„de- Bushes Wax. done, in the leal Japanese Bonds

exchange market cline here, followed. London's unificial

this "A" (43.

of 1890)... 85

morning at the following rates:- *D* 40. of Into) 711 oction. The Singapore rubber 13,5 dollaritper 1)

#.037 1221 market was steady on rumoura steriing note (per 41) of 1907) "D" (bs. of 1030). 100% this Britain will sign a £50 Indonian guliders (per ion). 20,40

Hiant tiesla (per 100) Consols

FIC plasires (per 1003

60% milion pact with Red China-SingRoom (Straits),

-United Press,

United Press.

Apot

یران که

Jogloin kätei

3háo bid

October

24.00

Darember

15.83

March 1934 May

32.40

1.01

July

October December

រ

bld

Queen's Building,

embarkation time.. Passengers will therefore, have to collect their baggage from the gclown between 9, and 11. duking which perfod cabin baggage may also be re gistered.

..

Passengers are requested.:to noto that ALL BAGGAGE must be registered is prescribed above.

Compagnie bbs Messageries Mâritikës

Tel: 20051.

Arrives

July 22 from Singapore July 23 for Nalia & Japan (Accepting, cargo for transhipment Kobe/Pusan and Kobe/Okinawa)

La

EVERETT STEAMSHIP CORPORATION S/A. Queen's Building, Telephono 31206. Chinovo Department: Telephono 28293.

31112

BUSINESS REGULATION ORDINANCE 1952

Copies of the prescribed Forms 1 (a) 1(b) and 1(e),

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

TEN CENTS EACH