1953-07-15 — Page 91

Growing Evidence Of Recovery In British Textiles

(By Norman Crump, Sunday Times City Editori

While the latest reports of many textile com- · panics continue to reflect the recession of 1952, there is growing evidence that the textile industries are slowly but definitely recovering.

Thus Patons and Baldwins, the knitting wool spinners, show a profit of £1,628,616 for the year ended May 2, 1953, which is a sharp contrast with the loss of £482,660 for the previous year.

the

New

tho solu- coming

The total distribution, which that we would be buying cotton was reduced to 10 per cent is with hard currencies. and now restored to 20 per cent. In reselling it for seft. Yet the rayon Industry, British most satisfactory, form of cover Celanese have declared a divi- against price fluctuations is that dend of 12 per cent for the nine provided by an retive futures months ended March 23 last, market, and in particular by This equals 10 per cent for the complete treedom on the part of your, and Is an Improvement any buyer or seller to straddle over the previous year's dividend between Liverpool and

Lancashire York. of 11 per cent, Finally,

These are

of Summe Collon Corporation, whose year does not end until October 31 problems Inwaiting

tion

the during next, have supplemented their normal Interim dividend of 5 year. Meanwhile

mort more Lancashire users of cotton per cent with a special "Coronia. tion" bonus of 5 per cent.

the Raw Cotton are forsaking Commission, and are buying their A few days ago Courtaulds un- nounced that the price of their cotton through private channels. "Fibro" viscose rayon staple is to The result is that both users in be reduced from 27d, to 24d. per Manchester and dealers in Liver- b. On the whole this is a bull pool are having a most useful point for the textile industries, trial trip" in all the mechanical

reduction

careful Judgment in the cost of work "At the same time, there have for any enterial is bound tai needed to run a spot market. As been some indications that

busle

the trade fully Jupunese Government considers help exports. Com-

Courtaulds them- most people in that it has done all can do in

selves are in a reasonably strong realise, this is as far as it is wise to rem present circumstances

position, because

thair to gout present. habilitate the production und

latest accounts Inevitably exports of the cotton textile

flect the 1952 recession their industry.

position is so liquid that their Last year's decision to repent

The initial hopes for general convertibility aroused by the Commonwealth Conference last December promptly faded.

It speedily transpired that

the only further progress to- wards convertibility that could be expected in 1953, apart from ndministrative relaxations of exchange control, was the re- opening of more British modity markets which would In such provide for arbitrage commodities between dollar and non-dollar countries; any ster- ling

spent in operations is automatically converuble.

Despite the disappointment of It was con- the wider hopes, Adently

there supposed that be an advance 'on this line. and a highly

Contnental authorities point-

sterling which

im- was most portant to foreigners before the Into war was convertibility commodities in British markets rather than convertibility Into geld and dollar.

Washington, July 14. President Eisenhower's order for a Tariff Commission investigation of the wool imports situation was a key step towards formulation of a United States' long-term foreign trade policy and helps to maintain a temporary status quo, accorded out that the convertibility of ing to reaction in Congressional circles.

A second and broader study of the interna- tional wool situation will be made by the Presidentially-sponsored bipartisan study com- mission on foreign economic relations when established.

опе.

QUITE DIFFERENT In the event, of the sort has hardly anything as happened, Some markets are being re-opened- but not for arbitrage.

the beginning of this By

markets in tin, lead,

Both Senate and House have | there might be in the raw wool approved bilis for such u com- tarifs. Unless there is a sciente year, the

have co-ordination between the tariff zinc mission but their terms

freedon

goods

re-

口味

not yet been reconciled. These treatment of raw wool and combo bor, tea and cocca had two investigations are an as-processed wool and wool manu- been re-opened with

for arbitrage: foreigners could States facturers, a chain reaction would pay in sterling for any surance to the United

demand for wool growers that the current follow with new

bought in those markets, and difficulties of their industry are registration by Congress

good gardless of whether the taken Into account by the International trade would he

dollar or non- had come from Eisenhower administration. The distorted.

dollar areas. wool growers nre the

most

Many imperial economists

It was expected that, during powerful group in the agricul- thinte that the competition of

1953.

would similar facilities tural bloc that is seeking higher man-made synthetic fibres

be provided by resumption tarlit protection, and their tem- greater menace lo the United Fary appeasement correspond-States wool growing industry, trading in wheat, course grain, ingly reduces the pressure on But the wool growers obviously rubber, collion futures, and pos- sibly, forest products (timber, Congress for an extreme revi- were more likely to get politically and

and pulp

paper), silver Limporta slon at the present session of support for curbs against laws affecting imports of agri-than against the domestic pro- gold.

As it turns out, some of these cultural-products. The Tariff ducers of synthetic products.. Commission conducts its

fact- The ultimate

question is markets (notably cotton futures) finding sessions in a careful

whether tariff rates are to be are not being re-opened at all

this year. fixed on behalf of manufacturing

In those which are being re- and trading groups or for the particular benefit of the agricul- opened, there is to be no tural Interests.

arbitrage (except, prospective- Wool Trade: In representa-ly, in copper).

FOR BRITONS MONE tions already made to the House

Highest hapes had

And

scientiile manner

usually takes four months or longer to prepare a report. The present investigation may take longer because it affects wool tops as well as raw wool.

for ments

been

With a wool Imports investi- and Senate Committees studying pinned on the grains, as being gation already in

progress, trade polley spokesman for these

claimed that In the most important commodities House leaders will be in a bet-organisations ter position to prevent enact- the last two years growers and in international trade. Arrange-

foreigners to

buy tent of the second Simpson Bill handlers of United States wool dollar grain with sterling would with its provision for ol

have suffered a plunge which

ubility. makes their industry unproft- have meant some real conver- bring It is the grains which

what bos out most clearly actually happened.

be much There is to

im-

ports quotas and higher tariffs on feat and zinc,

abic.

tion of farm bloc

A COMPLICATION

of

Bill.

through

10

control.

the

fully justified.

while

"Within the Industry, how ever, many proposals for self-dividend of 11% per cent is help and also for Government help are being discussed", the Manchester Guardian added. — Neuter.

COTTON

SPINDLES

Osaka, July 14. The Japan

Cotton Spinners that Association announced cotton spindles Installed and end of June operable at the totailed 7,505,113, or a rise of 10,820 over the corresponding period a month ago.

Of 7,505,113 spindles, 0,- 074,402 were in operation on June 30, or 91.8 per cent of the total, against 74.1 per cent for May.

The Association niso reported that the total number of weay- ing machines owned by the spinner-weaver mills nt the end of June was 74,298 units or an increase of 1,333 units from the end of May.

Of the number, 60,103 units were in operation on June 30. or 89 per cent of the total

against 82 per cent for May. Frutice-Presse.

HONGKONG SHARE MARKET

(From Our Correspondent)"

Business done on the Stock Exchange this morning amount- ed to 3660,804.10. Noon quota- tions and the morning's trans- nctions:-

BAYON EXPANSION

and

Buffer Tin Pool Suggestion

Criticised

If additional proot be needed, it Bies in the marked expansion in the production and consumption of rayun yarn during 1953, a Nor need compared with 1052. there be any excessive fears that. this will affect the fortunes of the Today many cation Industry. Lancashire firms spin and weave They are both cotton and rayon. in effect dual purpose firms.

What of the cotton industry itscif?

It has definitely re-Malayan buffer tin pool be covered since 1952, and there is formed to raise the price no sign of any early setback. und prevent more mines Unlike the disasters of the early from closing has not met twenties, both spinners and

A

Singapore, July 14. suggestion that

a

weavers have now proved them with much enthusiasm, ac-

enough to selves to be strong

stand a setback, and the investor cording to a Straits Times need no longer be deterred by report today.

"I do not think the scheme memarles of a generation ago.

At the some time, each year's would work," a Singapore mar- profits and leases are still de-ket representative suid, penilent upon row cotton price

He added, "Is. the pool going fluctuations, almost more

ore than

to be official or unofficlal? If it are upon the volume of is oficial, the Government takes sales and the over and I fear that it would

they production and apparent size of profit margins. become a political issue. Looking back over a long period,

"If it is unofficial,, unanimity ba producers would

That would be most

that the "good story shows years" for all cotton firms have among been the care of rising raw essential. cotton-prices. This lesson re- dimeult as their ideas would not

mains true.

VERY FAVOURABLE

In October, 1951, American middling cotton was quoted at

necessarily be the same. I do not. see how mutual agreement – could be achieved."

The idea

the reported in Straits Times on Monday was that a Malayan buffer pool be

38d. per Ib. By a year later formed Immediately without

had fallen to 32.95d. Today it is

prejudice to the formation of quoted at 32d., so that during the on International pool which

nine

months It has fallen by could then 2015: over less than une penny. There may Malayan

Lost

be a further small decline, but

pool.

the

the price is now nearly down to, A number of tin market in- terests, producers and Govern- the point where, the American ment officials were reluctant to price support programme could

on the proposal This comment come into action,

was reported to be due mainly It would probably be fair to say to the fact that they that, since the 1952 recession, the considering the report of the 081815covery of the leading cotton Working Party which discussed in International scheme companies has been very favour an

SHARES BUYERS BELLERS BALES

more

BANKS

IK Bank

... 1515 1820 East A'. ... 160

can buy

INSURANCES

Canton Union

242 705 Underwriters 4.30

whether

HK Fire

SHIPPING

Aala Nav... 1.33

133

13

21.30

to

to

"It is our belief that only The second Simpson Bill asso contains a provision tightening action by this session of Con- prevent bankruptcy Impress can agricultural controls of

the Industry ports, and its only possibility of fer enactment at the present ses changes in the import policy of convertibility than was expect- In the cheapest slon would be through a coall the nation to provide a reasoned for Britons: they

wool their grain the protection for politicians able with the larger group of Re- growers, icir workers and the market, regardless of

a dollar or a non-dollar with

their it is 5019-345% presentatives and Senators who allied Industries

statement to the market.

There is to be no

conver- zeek protection of the minerats woad," said a

House Ways and Menns Com- Industries.

mitice in favour of the Simpoonibility at all for foreigners: for

any

dollar grain re-sold them by British merchants they United In all revisions

The wool growers alleged that will have to pay dollars; there Stales foreign trade policy dur- there is no market available for in to be no re-export of grain foreigners will the the United States 1953 clip at from Britain; ing the present century,

to take out of treatment of wool imporis was anywhere near the cost of pro- not be able

factor duction or even at support level Britain any grain delivered the most controversial in discussions, and had tremen (an official price paid by the them on the maturity of a long

publie Guvernment) and that the wool futures contract. dous repercussions an

As futures contracts generally opinion in later elections. The would therefore probably go in

range of States large part into the Government allow delivery of a reason is that United

discrimination Arcatly loan programme. They claimed consumption normally

between dollar and non-dollar production, that in 1940, before Pearl Har, without exceeds domestic

foreignera will be and the manufacturers and con- bour. Imports of foreign wool origin,

take per cent of allowed to

delivery only run counter represented 38 signment interests 201-101

that in Britain. Reuter. and for

domestic production, and torilt protective larger share of the home mar ket. In 1953, the question further complicated by steady gains in production

Trado oxports- belloved today are which man-made fibres

for that the Tariff Commission in- cutting into the demand

and both domestic

Imported vestigation of wool Imports could wool.

not of itself lead to any solution of the overall import problem. United Press.

per bushel in Spot

Battlement House August 19-10 10-10 Sept. 7516

101-1033 October/December'

10%-1013 1941-194 1013-1025

148-3% Soybeans (price per bushel

in cents)

Spot

July

August

Sept. Νου, Jan. 1934

March

201 nom

204-20314

25436-9%

24015.4%

January/March

April/June

General market, July Augusi Sept.

-United Prob.

un-

NY RUBBER MARKET

New York, July 14.

futures closed Rubber

15 points higher Barley (orlee per bushel in changed to

contracts. with sales of 15 cents)

Prices were as follows:

130-140. Spot New York flour 200 lb. rock $17.90 num-Uplied Press.

nam.

No. 1 R89. cents per lb.

July

Sept.

Dec.

Match 1034

May

July

Supt.

New York Stock Exchange

New York, July 14.

Dow Jones averages on Wall

Street closed as follows:

30 Industrials

20 Rails

15 Utilities

05 Stocks

40 Bonds

Comm. Prices Index

208.00

13.25 bid

23.00 bid 22.90 bid

12.75 nom. 22.65 nom.

United Press.

Is

the

as a result of concessions under trade agreements the imports have increased to 72 per cent of]

of total consumption.

London Foreign

Exchange

Leading the campaign for protection of the domenie sheep Industry are the National Wool Growers Association and the Allied Wool Industry Commit- tee. The Association is a

of about manent organisation 400,000 producers of wool and mohair. The Committee is on organisation com- morgency posed of growers and growers'

Wool New York Western

Montreal handlers

the and

domestle of tho

Boston wool Amsterdam Bogment Bilsizade.

Exchange Rates, co-operatives,

Business WITH

EXTRA 104,76 unofficial

done in the local market

49.10. dollar iper $13

105,30 Sterling note (per 21) S

London, July 14,

2.81 9/15-231 11/15 3.TO 7/16-279 9/16 10.6814-10.59% 12.00-140.03

10.312-1034% 12.10-12.16 19:541-10.35

Oslo Zurich morning at the following rates*---*. Domestle wool: Future studs Copenhagen

0.010 1583at tarif dhanges or legislation Paris

14.03-1482 20.30

Love

to co- Stockholm would therefore

Deutsche Mark 11.0036-11.3016 12.70

the, wood mamifar-

1845-10.00 Blocked Math fasordinate

--United Press,, BDO turers tariff with any changes

04.02 Indonesian guider (per 100)

Bam tica (150r 109)

180.25 singapore (Braits)

United Prosa,

FTC plastres (per 100)

LONDON METALS

MARKET

London, July 14. The molals market closed in the afternoon session with A Himmar ione. Turnover was 125 tums with no prompt shipment reported. Prices were as follow::

2014-01 Land July

ロー Oct. Zmo July

United Press.

DOCKS, ETC. K. Wharf Dock Providon!

Wheelock

S'hal Dock

12 12.40 1,00

1000 5

able. At

the

are now

same time export Brussels last month.

by However, market interests in

business remains hampered singapore were said to be un-

50 & 7871) Import restrictions overseas.

mention three of our chlet com- animous that the fden was good petitors, Japan, India and the in principle but difficult to im- United States are also exercised plement.

over import restrictions imposed Chinese miners in Ipoh wern

gainst their goods, and even so

Japan has recovered her former! quoted as saying that a buffer tin pool dor Malaya alone would place as the work's largest ex not be effective. They added porter of cotton plece-goods. In that if a buffer pool were oct 8.70

view of all the facts elted above,

up it would have to be inter- today have may 8.50 cotton shares

national with all the producing 500 4 8.03

0.65 8.00 400

300

attractions for the

400 4.60 investor, for he will ourageous countries participating.

and soveral

Smelters in Pinang and Singa-” 2008.60 cases where yields of 10 per cent pore declined to comment on

and upwards are obtainable. The the planUnited Press.

0.10 more timid investor, however,

8.15 should exercise discretion, but

6.10

would not dissuade

0.10

un

8.65

1000 or 0.35

2000 8.03

LAND. ETU.

HK Hotel...

7.00 8.0 BOU 500

42

135

10.00 17.10 600

1000 de 17

75 4000 @ 25

40

173

BK Lund ..ET

S'hat Land

unphreys

UTILITIES

Train Peak Tran

(0)

Star Ferry

2000

1710

I

him from

buying Lancashire Cotton Cor- poration. Their yield is nearly 7 per cent, before allowing for the

and bonus, Coronation balance sheet remains strong.

Cotton Prices

the

very

In N.Y.

New York, July 14.

THE LIVERPOOL MARKET

before the Another problem industry is that of the restoration

Prices of cotton futures closed

2. Light (0) 12:30 12.50 1600 1343

2100 or 12.50 of the Liverpool cotton market. today as follows:- G. Light (N) 855 8.85 3000 49 8,00

A year

has now elapsed since the Spot 500 000

July of cotton became 000845 privato buying

October Electric ... 20.30 20.00 2000 permissible, but the Itaw Cotton December

700 20.40 Commission All continued 10March 1934

sinet May pil buyers "cover" against price fluctuations, In its second October INDUSTRIALS 2010.40 500 15 | Report, the Hopkins Committee Documber

Macao Elec Telophone

Cement

JAPANESE BONDS STORES, ETC.

8411⁄2

London, July 14. Japanese bonds

"A" (48, of 1800) "B". (48) of 1010) · "C" (58. of 1007) "D (5s. of 1024)

E s. of 1930) Console

Rope Dairy

al 11.20 24 20.90

1000 € 21

17.00

500.

16Âð

1000 € 28.80

be Raw. Cotton recommends that the Commission should continue this but practice for the coming year, 25.60 22.30 500 # 27.29 odds that inarmuch as public

34.03 noni. 25.10

3.00

31.24-34.24 34.30 nom.

13.42 nom.

-United Press.

NEW ORLEANS PRICES

New Orleans, July 14, Prices of cotton futures closed today follows:-

was "Intrinsically uncon Spot

DOO 270 funds are at stake, this practice 24.00 1100 24.00

The upshot is that all have a year's breathing-space, October 24.30 during which vital decisions will December

March 1054 have to be taken. Our lack of dol.

MAY. lars makes it dimcult to restore y

colton markat October world-wide at Liverpool, for it could mean

Walion

2414

· 24,40

7132

Crawford 34 2415 000

24

123

COTTON#

500

101 3

Textile Corp. MISCELLANEOUS

03% 1000

a

United Press.

Yonglaze

December

33.05 bid 33.00

33.70

33.39 þid

*****United Press.