MESSAGERIES
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M
MARITIMES
Tel: 26631,
M
FAST PASSENGER/FREIGHT SERVICE
From Marselles
"LA MARSEILLAISE"
"VIET-NAMN"
For Yakultuma
Yokoltama
Leaves starteifies
Que JCIC.
13 Sept.
* fct,
1 Nov.
"CAMBODGE"
4 No.
Leaves Hongkong
Due Marseillen
"LA MARSEILLAISE”
13 Nov.
Nalgun
"VIET-NAMI”
20 Nov.
Kalgun
12 Dec.
Kalgun
To Margelli
From Europe
4 Bet.
it ort.
21 ·Del.
3 Nov
Left
VLA
For Monika & Japan
"CAMRODGE"
19 Nov.
Via Mariee to all Mediterranean & West Africa Porta V.a Djibouti to Madagascar.
FREIGHT SERVICE
››› Antwerp-21 July
Antwerp- 1 Hept. ››Bankirk-early Del
Leaves Kerlung
a Ort.
IP Oct, 28 Nov.
Leaves 11.K.
Def.
1 Nov.
AURAY
"IRAQUADDY"
"MONKAY"
To Europe
"COURBEULLES"
"AURAY"
"IRAQUADDY"
10 Oct..
13
Nov.
Due II.K.
30 Rept.
Manila & Japan
Manila à Japan
Febr
!
J
11 Nov.
1 Salgon, Singapore, Djibouti, Marseilles, Algiers, Oran, Tanglers. Comablanca, Le Havre, Antwerp, Hotterdam & Dunkirk.
Bubject to change without notice,
EVERETT
LINES
EVERETT ORIENT LINE
Fast regular freight-refrigerator-passenger service to Korea, Japan, Philippines, Indo China, Slam, Malaya, Rangoon, Calcutta and Chittagong.
"NOREVERETT"
In Port
Sall
Loading
Sept. 22
"LENEVERETT"
Arrive Saris
for Singapore, Penang,, Rangoon & Calcutta,
Yokohuny?
Oct. from Singapore,
Kobe Oct, for (Acceping cargo for transhipment Kobe/Pusan and Kobe/Okinawa)
EVERETT STAR LINE
Fast regular freight-refrigerator-passenger service to Korea, Japan, Phlippines, Indo- China, Siam, Malaya, Colombo, Bombay, Karuchi and Persian Gulf Ports,
"STAR BETELGEUSE"
{11
Sally
Port Loading
Pusan,
Kobe
&
Sept. 22 for
Yokohama,
"STAR ALCYONE”
Arrives Sails
Sept, 23 Sept. 23
from Japan. for Singapore, Fort Swellen- ham, Penung, Madras, Colombo, Cochin, Bombay, Karachi, Kharramshahr, Basrah & Bohren.
(Accepting cargo for transhipment Kobe/Pesan and Kobe/Okinawa)
EVERETT STEAMSHIP CORPORATION S/A (Incorporated in the Republic of Panama
With Limited ability
Queen's Building, Telophone 31206. Chinoso Department: Telephone 28293.
PENINSULAR
QUIS NOS SEPARABIT)
THE CHINA MAIL, TUESDAY, SEPTEMBER 22, 1953.
Striking Contrast In Behaviour of London,
Of
N.Y. Stock Exchanges
The Big Argument Continues
There is a striking contrast in the course of prices in the London and New York Stock Markets during the last six months.
Both markets were at or near their recent peaks about the middle of March. Wall Street, as measured by the Dow Jones index, has fallen since then by about 10 per cent and is now only just above its lowest point for the year.
The Financial Times index of Į Elsenhower's Republican Orillsary Industrial shares ministration will do everything slows, on the other hand, that in its power to prevent at
which took place in development: its political post- the fat London betwders mid-March
tion in this matter is much the of on
aunty (about 1 per same as that of the Conservative cent) has been almost entirely Government's in Britain. Its made good.
political sensibilities, moreover, are likely to be sharpened by the Congressional elections due next year.
New York, Sept. 21. Reduction in the Ameri- can arms programme, such
cancellation the orders for 306 planes and the slowing down in stock- piling of strategie materials, have greatly encouraged the pessimists and the recession predictors.
over
arc
In fact, it is only in the last
few days that the London mar- ket has seemed to take note of what has been
happening
New York; and even now' there is evidence only of a paure, nol of a setback,
HARDLY LIKELY
Nor does it lack what are be lleved to be the weapons for .combating
that any defintion might develop.
Unless it takes some positive action, the Excess Pronts Tax will lage at the beginning of next year and income-tax rates will fall as well. Cuts in cor- this porate taxation and in Excise
Worrying Factor In U.S.
By SYDNEY S. GAMPELL Router's Financial Editor Inventories are a dend ache. The official view is that, though large, they are not abnormally large in re- lation to the current high rate of sales. The bull argu- ment during the
summer
was that as the defence in- dustries in the United States make deliveries
LONDON MARKET
OUTLOOK FOR GERMAN BONDS
(By Norman Crump, Sunday Times City Editor) London, Sept. 13.
While the question of Germány's external debts was never an issue in the recent West Ger- man elections, Dr Adenauer's decisive victory has cleared the air in one or two important respects.
First and foremost, the inevitable uncertainty over the result of the elections has now given place to the prospect of a period of stable government for Western Germany.
some
GOOD PROSPECT Series I and II, which ara re- deemable In 1983, look paru- cularly attractive to sur-tax payers, for they hold out the prospect of approximately a 100 per cent tax-free capital appre- clation over a period of no more than ten years.
All
this is, roughly. the and arithmetic of
the
To
against her unfilled orders,
This should accelerate the year's interest coupons. Allow- thoir inventories will be country's economic and indus-ing for. Diese factors, the true Adworked off and so the total trial recovery,
of inventories will be re-ready made
which has al-price today of the "K.K." bonda duced to more normal com-
remarkable pro may be somewhere ardind 60, gress, and while this may raleg whereas they are redeemable at problems for industrialisis and par in either 1003 or 1983. pass without, any
bugbear exporters elsewhere, It holds of "inventory liquidation" out
that Assurance since there will be no such
Western Germany's bolanco of quidation in
payments will be fully sufficient real any
to cover her external debt ob- Denise.
Ilgallons. Alrendy, it should be Today the high inventories are noted, she has ample foreign not so easily explained away. exchange in hand. The Guaranty Trust describes their accumulation
bave Next, I
received the as **perhaps But many serious economists
the 'most disquieting
impression, both in London and factor in that these cuts point out
Frankfurt, that Western Ger- the current business situation." ONE, CAUSE described 05 more accurately
One contributory
of
Business Week regards them
many's GS cause
ability to pay is rein-mechanics which Interim adjustments
the black cloud on the business
forced by her desire to restore the present position of difference in behaviour is this
"Reich" bonds. spread out the arms programme
her credit in the world's chief German technical ard
horizon. During the second
Anancial a longer period without undoubtedly
quarter the accumulation of
while the investor, however, the im centres. Thus under actually curtailing it. They be lecal. Becnue the capital gains to fall in America
inventories jumped to a rate of
the Debt tax is due
Agreement ponderables are of equal, if not lieve, that American milltary
there is an unusually strono
nearly $0
new einking-fund payments do greater, importance. Admitting billion
a year. This outlays can hardly fall below incentive
was even faster on Wall Street
than in
not begin until 1958, there is the present will and power of the nothing to prevent her this year's 60 million dollars il or to establish capital losses.
fourth quarter of 1952, and of her sterling bonds in the Lon-meet its obligations under the
buying the German Goverment atomic
spending and energy
This has probably accounted
far poorer quality. The end- 1952 build-up wes a voluntory assistance to allies are included, for some selling. Clearly, how-
she Debt Agreement, the investor
ΟΙ Northern | ever, this is not the whole of
rebuilding Observers
stocks of
must assume that that will and Wall Street is also
the of Chicago the story. Trust Company
material
semi-manufoc-
power will persist until and The about
business
furers deploted during the sleel business will not yous
maturity dates. Theso aro 1903 question whether
in the next few
and 1905 for the "KR" bonds; strike. The recent build-up was Dush forward to new peaks next prospect
ary accumula- months.
mainly an involuntary
1909 for the Dawes bonds; and 1900 for the Young bonds To- J'car,
tion of finished durable "The succession of powerful
goods
day I am assured that the will produced forces that have
fastor which had been thart they could
sold. be fairly substantial recent
goods merely offset liquidation of stocks during the previous six months;
bot appin the previous Lo be weared
while the more recent re-accumulation was involuntary. In both durables and durables the main brunt was being tacturers. rising at a rate of 13 per cent
of the
recent years and.
overcume Areas of
for
raw
don market so 2000 thinks it. Again, the advent power of a strong Government completion of may conceivably accelerate the all the વીઓ
be ministrative, work needed fore debt payments can actually begin.
to
will do well to hold this year's because the consequent change for stimulating demand as well:in stocks of finished non-durabiture, the process of depositing pends upon futuro events, and
remove one
of
market
And since any reccssion in activity would cer- done so in American that have tainly soon affect the industrial weakness markel in London too-if only from dollar rurplus to dellar level and may decline next
delcil in the UK. balance of spending, #D- year-defence
payments would tomobile
residential the supports to the demand,
gift-edged to construction, and
1 market-it plant
becomes a matter name the most important", the of more than academic interest
The bank declared.
National
to consider whether Wall Street Car Dealers Association or the London equity Used reported that nation-wide sales Is correctly appraising the im-
24 per cent mediate outlook. in July declined
tevel fur the same below the month of 1932. Inventories niso declined, but the 6.6 per cent tion along these fall was not enough to offset
Is to answer it. the slide in sales. The sharpest
All through the summer sales drop was registered by 11 American business activity has Western statés-52 per cent
below remained, though
the less than in July 1952-but in-record level of the early ventories in the area were un- of this year, above both changed from a year ago.
year's figures
and-what
HARD TO ANSWER It is easier to frame a quad- lines than it
part
Tast
ig
A large Wall Street house more significant-those of the noted that the forecasts of the year before. Exports and in- outlook vary from return to ports have both been rising and
remain "normale" to deep recessions. are expected to
high; This firm said the precipitous the latest estimates of business decline on the stock market in capital plans still forecast a re- the past few weeks discounted card expenditure this year. In part at least a lower carn- Not only is unemployment al ings trend.
arcas placed
an
duties in the spring will bring the reduction in prospect to the annual rate of $8,000m.
Congress is hardly likely to renew any of these taxes if there is any sign of recession.
Nor is this all. Since money rates have been progressively raised over the last two years raised too high,
some people think--the Administration has a psychological resource available
one that can be used quickly in an emergency.
With so much talk about the possiblilty of recession the real is probably not question
a recession will come whether
itself, but whether the Ad- of
will act quickly ministration
develops and enough If it whether the weapons has to hand
which it will prove effective
դ they bre generally supposed to be.- The Financial Times,
06
now
REFINERS
REVIEW
POLICIES
Now York, Sept. 21. United States oil refiners Ire reviewing pro-
in
olt
non-
thrown on the manu- whose stocks were
per annum.
Whether or not there is to bo any liquidation of inventories such a might touch off a set- back, a cessation of the second-
quarter rate of inventory ac cummulation seems almost certain; It could be avoided only by a prompt acceleration in the growth of incomes and of credit, of which there is
sign. Mere cessation, of inventory accumula tion removes a demand, and
no
A regards the Immediate exists. The power obviously de-
the ratifications of the Debt the rapid industrial recovery of Agreement by the Governments Germany, significant though it concerned is now practically is, is only one of several possi-- complete. The validation
of big factors. That is the reason outstanding bonds by the Ger why, although German bonds man
is making still have great attractions, they Buthorities
As yet no num- may good progress.
appeal chiefly to the bers of validated bonds have strong investor
with soro been published, but practically margin in hand. held all sierling bonds
by British residents are being validated under the "shortened" procedure, and this should be approaching completion.
****
Demand For Platinum
New York, Sept. 21,
The platinum
201
market -was
stockpile.
the
THE COMING OFFER
be the The next step will
to publication of the offers existing bond-holders to change their holdings into new bonds. But before this offer can be made, the actual word steady at $92 to $93 an ounce.
demand for Jewellery of each set of bonds will platinum was sluggish, but in- Ing have to be agreed, and this industrial usage was well main- volves questions of legal tained. tends to cause slackening unless
drafting. It is understood that demand
According to it is offset by a new
in
trade reports the broad outline of the text of the Munitions Board is likely some other sector. Maintenance
the new Dawes, Young and to maintain continued interest of inventories however
to
owever high
"KK." bonds has been agreed for another few years in buy- It returned major the moment lower than it has
a level does not
absorb any to been at any time since the war,
but that there are details stilling
Platinum But maintenance group stock averages close
current output.
to be settled. Less progress Although the stock - piling support and but in the automobile industry, ecrganising or of major
of them seems
to be the best
over the "Non- | programme
pecret sound shares on a reasonable where it was thought that difduction policies in the wake of
that Acuity
can be expered better has been made might soon be appearing, the present high level stocks of
inaders bellevo the Glover- statistical basis. Using the
een made to
refined products,
than is probable, unless people Reich" bonds,
ment has so far acquired only latter as a -yardstick, the -firm plans have been
particularly got involuntarily stuck with high when the text of the new about two-thirds of the supply in sald stocks remain undervalued
creare
September Risolone, and cutbacks in opera- production
stocks in a way that would be bonds after the temporary
has been settled, the target. tion ions already instituted by some in relation
reduction to earnings, **
far from bullish. for companies. Gasolene stocka
During July bands will have to be printed. in August. Yet production
It is believed, however, that dividends and yields, both on
time official buying here is no longer the first eight months of the
This again will take the United States were last re- and August the disappearance of
item-absorption Meanwhile absolute • and relative
demand atte barrels, at 143,287,000
British holders of urgent and that purchases may year was only fractionally be ported
into and to book values and low the record achieved in the more than 20 million barrels basis,
Inventory accumulation—
at the moment be stretched out over a longer the long-term decline in the frst eight months of 1950. langer than
Jast
was just about while
offset by the sterling bonds year,
need do nothing. When the period, with the buying price of emergence All this activity, and the pro-supplies of heme heating
another the offers are published, British more flexible and more respon- & ORIENTAL purchasing power of the doline.
Perhaps the general
unexpected pick-up in construc opinion
tion. Since there must be some bankers, and will receive
holders will be notified by their sive to prices quoted in
an open market. China Mall can be summed up as follows: ls which have accrued from it, were more than 14 milion bur
limits to such ir
With the peak of the motor-
things a recession comes, it is un-hardly suggests an approaching refs above a year ago.
since
as con invitation to accept the offer. Special. atruction booms even in the likely to be disastrous and can recession particularly
keb reasonable private saving has actually been ing season possed, and spot mar- of actively slow, stocks United States, the danger is that increasing this year as well.
gazolene must be reduced to the supply of offsetting factors But there are also signa of make storage room
for the weakness, all of which together amount of fuel oil norded
will run out, 10 add up to a formidable total.
meet winter demande. The fall in farm incomes, for The only alternative to lower example, has produced a corne gasolene prices, it has been con- sponding fall in farm invest-londod, is a drastic and early ment; and farm investment ac- cut in production. Seme circles counts for about one-eighth of feel that oil companies would the total United States invest-prefer to cut back output rather du
than prices, realising that the MUCH TALE
former is caller to restore, For Stecks throughout the economy 14 corsecutive wees United
States
refinery throughout haz are appreciably higher than they 5:0
averaged above the seven million were a year ago and there
While mort much
fall about the difficulty barrels daily murk.
companies are moving cou of moving them at industry flously, waiting to tee shot of In manufacturing marke: may bring in way the average for the past five backing of unilled orders
has produ years.
The exports were valued at been reduced and the total US$2,800,000,000 (about £1,000,- new orders placed has fallen. In cruse runs to stills fellowing cuts dropped to $71 billion. There is 000,000) empared with a record the market for consumer goods abgounced recently by Sinclair Mail Phillips.China of more than $4,000,000,000 consumer credit has risen at tnd (about £1,428,000,000) in 1051- what many people believe to be Special. 52 and the five-year average of a rate that cannot be maintained
£1,250,- indefinitely. $3,500,000,000 (about
STEAM NAVIGATION CO.
:
R.M.S. "CARTHAGE"
SAILS:
NOTICE TO PASSENGERS
BAGGAGE: ·
Friday the 25th September at 12.00. noon for the UNITED KINGDOM via Straits, Colombo, Bombay, Aden and Port Said.
Passengers are requested to send ALL baggage to the Hongkong & Kowloon Wharf Co.'s Godown at No. 2 Gate, CANTON ROAD. ENTRANCE, by NOON on Thursday, 24th September 1953.
Lo
within
but
held bounds-recession, maybe, slump, no.-China Mall Special.
Reduction In Farm Exports
Washington, Sept. 21.
Department The Agriculture sald today that exports of U.S.
ended July 1 were
farm products during the below
SPECIAL NOTE: With the exception of hand packages | 000,000).
carried by passengers themselves, ALL BAGGAGE must pass, through the Wharf Co.'s Godown for loading on board by ship's slings only, BAGGAGE COOLIES WILL NOT BE PERMITTED TO ENTER THE WHARF.
EMBARKATION: Passengers should embark between
9.30 and 11.00 am. on Friday, the 25th September, 1953.
BUSINESS REGULATION ORDINANCE 1952
Copies of the prescribed. Forms 1(a) 1(b) and 1 (c)
Now On Sale at S. C. M. Post, Ltd.
HONGKONG AND KOWLOON ·
TEN CENTS EACH
Drastic Cuts Revealed
it
ment.
the
various
of refineries have started to reduce
end of
New Vehicles For Dunlop's
Landon, Sept. 21.
They will then have to consider its terms, in the light of their own and market circumstances.
At the best, it looks as if all LABGE DROP.
this preliminary work will not Pressure Lo, aut inventories be Anished before the extends also to cut buyers October, but it is greatly to be commitments which are the hoped that there will not be milled orders of the suppliers. much further delay. At the A drop of almost 45 per cent same time, before complaining about German over-much
A fleet of road tank vehicles machine tool inducar the
is during the past
diatoriness, which partly
specially designed for the bulk orders is an
unavoidable, we should consider handling of carbon blackt is now exceptional case. But for manufacturqTS US # the beam in our own cre. It i
being used by the Dunlop months Binco tho whole unfilled orders have been several
Rubber Co. They Bro trailer "αx
gratin"
payment vehicles and have dropping ever since last October, first
been con- billion.
asscis So far
ex - enemy by a total of $5
of out that, the total jumped from 325 sterling berdue, and its absence at one end and of discharge at there is no worry in the fact was made to British holders of structed by Scammell Lorries of Watford to ensure ease of filling
billion before
unfiled
to 'nearly
$76 billion last October and has
mall though of course much,
Day-
the other.
Each vehicle carries between
is creating uncertainty in more ways than one. The Administra11 Won of Enemy Property De
"get a move partment should
no real omen even in the tact that the last similar occurrence
of almost the same pro- | an." Do drop
in dollar volume---was in the 1949 set- presaging last October the total was and
1948,
And then, on top of all thir| Kirkuk Field's bed by defcoro
Output
and 12 tons of the pellatised powder. The hoppers of mild steel are treated on the inside with a varnish which gives a good gloss finish, is heat STILL ATTRACTIVE
sisting,
and helps the flow of The recovery in the German the black from the hoppers into Bond
market during recent the
the automatic powder-handling months has admittedly narrow system. Along the top of each ed the scope for further appre-vehicle are Iniels for easy all- qlution, but even so yields are ing, manholes for Inspection and
And д testa, still attractive, particularly for temperature
Last weeks the ample number of vents. Four following position obtained: outlets are desigred to
an easy flow of powder-China Redemption Yield
Mail Special,
Price, Growt
02
4%
15%
NaL
at
ensure
FIXED FREIGHT RATE OUT
Manila, Sept. 21.
Amon
contributory factors there are the repercussions to be were improved farming produe expected from changes in Gov- iton elsewhere, reduction of the ernment polley.
Whe due to be automatic United States foreign econceiç
de-watered h It not only that the Budget
painlessly
were Kirkuk ollfeld in Northern orders aid. low world prices as vermpared has come within sight of being
The balanced.
Republican Iraq has senced a with the United States prices,
century by Nevertheless, the comparison is Party, drive for pronomy really producing its hundredth million uncomortable. Business in 1843, reported-Reuter.
being seems to be taking hold; and ton of crude
while unfilled orders wore all. level of expenditure whatever
Well No. 1 at Kirkuk began whittled down by 7 per cent, is maintained on the armed gushing 20 years ago. Since looked nearly as good as during forces, expenditure on capital then the field has bom greatly the past. 10 months, during which
Hove been Dawes h...
Young 0215 131% 8%%% munitions expanded. One hundred millen mailed ordera equipment for
but whittled down by about 7 per bound soon to fall away, in some tone have been tappeil
14% 10% places qulle sharply.
Kirkuk is still numbered among sent. After 1948, business did X: 1003 20
Theso redemption yields, the world's greatest, oil, ro- mat stay so good. servoir.
From before the beginning of which are approximate, allow
Income-tax deduction, Kirkuk oll is pumped through this year, the outlook has been for
panies have reached an under. a 1,600 miles network of pipe-that inventorics would at worst the present standard rate, from The major steamship lines to the sea 800 miles away. be a passive weakness: that they such arrears of interest as standing with exporters here to
Being converted into funding would not themselves generate a
as from October 1, setback but might cause trouble bonds, and from future interest abandon the fixed freight rate
on both the main bonds and for sugar the United States totalled, only But there is stili ono impor
and adopt furlend the open If & Belback were generated from
the funding bonds. *, tho soctor. Today,
system some other 43,808 short tons, compared with fant factor which, though it lies
Bonds bought at curront putlook
A Philippines Sugar Asocia 08,330
outside the sphere of strict
he rother, worse New York, Sept. 81. Lons
may The raw silk, market was firm than tepid, unless copper production for occhanic/ calculation, can nover Refined copper
carry the right to the tion spokesman mid the change
at 90,540 be ignored, ()}
and moto solive during the past unexpected turns up, inventories
of advantage favourable dow capable of becoming an amount is not yet known, but tons, against tons (25-Tals is the probable reaction wank Traders reported, that are
It may be so much, es £5 per velopments. In the charter taar- vited) in July.
£100 bond. It is also likely ket. He expected, shippers stocks at the end of August of real trouble a rise for to the market and they predicted of course, always capable of
time Germany would obtain lower rates of the roured to 200 220 tok sa mxample in the rate of unem ficreased buying from now on gs. being offer by a new forward that by the
the Spring move in some other sector hegins to pay most bonds will averago than under the present 100,430 (reviseu) a monta ployment. It can be laid down mills prepare for carilor.-China Mail Special, Iwith confidence that President sengon China Mail Special, 'Reuter,
carry the right to two half-system-China Mail Special.
New York, Sept. 21. Copper dellverlea to fabrica-
POLITICAL FACTOR Liearly the possibility of a res tors outside the United States cession in America later this year were cut drastically in August, cannot be ruled out. In this the Copper Institute reported, sense Wall Street seems only too Deliveries in countries. outside likely to be right.
Raw Silk Market
rato
соед
+91 Bond "ex gratis" payment. Its would enable exporters to take
August was Ped copper of the Administration to any sign mills were biginning to come in active weakening factor-though,
No comments yet.
Private notes are available after approval.