Nervousness In City Leads To
To Avert Big "Shake-out”
A Slump
By SYDNEY 5. CAMPELL Router's Financial Editor
It can be taken for grant- ed that the U.S. Republican Administration will strain every nerve to avert ✡ slump. Almost every mem- ber of the U.S. Cabinet has
that gone on record to effect.
For example, the Secretary of Commerce promised last week that the Administration would
steps not hesitate to take
to krevent
"an old-fashioned de- pression." Treasury Secretary Ilumphrey puts it: "Tve aid before and I'll
again sny it that I don't think this or any other Administraiion if it can help it should permit an economic catastrophe
Anveries."
be
In
mess
(FROM OUR OWN CORRESPONDENT)
London, Oct. 12. The London Stock Exchange seemed well set to continue last week's all-round advance when investors poured in on Monday to give the markets their busiest day for two and a half years. But this was not to be.
The big shake-out, which began on Wednes- day, has been attributed partly to nervousness about the situation in British Guiana and partly to the fall on Wall Street.
seems to have been, of cloter tracks for But it
motor. out Just as much due to a bout of cycle racing which brok;
the countryside. Back in profit-taking by investors who on
the rise in considered
prices 1020 it was gold shares,
Today since the lowering of the bank
thero is a speculative rate on Sept 18 had gone far passion for buying shares of enough.
department stores and chain Effect of this can be seen in stores, which, according 16 tho Financial 'Times' stock cosily greutate: rumours, STC price. indices. The Industrial going to be bought up at hand- ordinary index, after ring five some prices by some mysterious points since the bank rate ad- "nancial group". Justment, slipped back a full
Stock Exchange point.
about to
#71
history repeat itself? The fall was less pronounced writer
the Investors' In the gilt-edged section and Chronicle confesses that this the Government sceuritics index speclat boomlet in "take-over" fell only 19 to a little under sheres inakes him nervous. 101. This still leaves it 1 points above the level on Sepi.
profit-
best speculative
Laking Dimong
for Opportunities
were naturally the more
shares.
MIXED WEEK The Financial Times' index. of department stores and chain stores has risen this year from D1 to 133-up 40 per cent com- 10 per pared with a vise of cent in the leading high-grade In the stores section, House Ind
industrials. Lots of people in of Fraser, which had previously | galped 8 to 105/-, pased to Eut the truying
City are talking about it of high-grade 07/02 .on Wednesday. And industrials persists. It comes from substantial sources and thus far shows little signs of tapering off.
for It can also
taken granted that nothing that is likely to happen to the US, end nothing that the U.S. Is likely to do to its allies, will really play into Moscow's hands. The drepost economic into which the US. could con- erivably fall would still be an almest other-worldly
paradiso ed with compared
16. the best that the Soviet bloe has
any chance of achieving in this generation, Even for the immediate future, Russia seems to have got into vastly worse economic trouble than the U.S.
of Indeed, ore the
short-term worst
fuelors for U.S. business arises from something that may be highly constructive in the longer run, namely that Russia seems have
badly OVLT extended that she has to go According to one observer slow on all her ambitions, both: external and internal; and this the Conservative conference, Mr Thorneycroft was "white with has given the Americans ጊዜ
to engerly seized opportunity anger" as he listened to criticism
relax their defenes effort and of his tariff policy.
Is And his anger
foreign aki in a way that was scarcely
most gratifying for the long or concealed when he replied to
medlum
butt term even the the debate.
scma nwkward Beetssitates business
in adjustments the short run.
WC
at
are in the middle of these negotiations," Faid.
he "Give us a fair chance to get on and finish the jub."
Maritime Conference
In Ceylon
But there is another Jenson why the United Kingdom 15 Gen 23,30 anxious not to give the impres
23.20sion that it is lagging behind the other O.EE.C. countries in re- moving the restrictions on trade. At the moment the United
Nuwara, Eliya, Ceylon, Oct. 12. Kingdom is negotiating with A representative of the Goy- the General Agreement on emment of Ceylon suggested Tariffs and Trade for permission today that Asian scamen should to raise its tariffs on a number
Der look to Japan for guidance in af foreign agricultural products problems affecting seafarers. while retaining its traditional Mr C. Carthigesan was right to give duty-free entry to addressing the Asian martinic similar products from the Com-conference of the International monwealth.
Labour Office. These negotiations are ex- Не Tremely delfente and their fellure might weli success or depend on the attitude adopted by those West European coun- the whose exports to
Industry Conference
tries Ilarrogate, Oct. 12. About 1.000 delegates
from United Kingdom would be most all sections of the British cotton affected. industry will begin a three-tiny conference here on Friday with the aim of increasing the dustry's efficiency.
The
The
Cách
Tokyo, Oct. 12. trade balance September, wound up with a import excess of Y31,970,000,000
Finance
recording Ministry.
The
to the
month
were
an
Assurance
And it has
the
on
11
got
10
เท
Wontever
heedlessness the with which the U.S. may treat friendly countries in both Hཐ Import and export policies, it is nothing to the way in which Rusia treats its satellites. In bointed repentance Russia now promises some economic aid to some of the sfelites. But that Hurst is doing, and afford to do.
reduces merely
exploits the degree to which it its ratélites. The severést foreign crities of US. policy,
Can
of whom there are many on both the right and let wings, have never suggested that the U.S. ym is an exploitation system, whereas the Soviet system can hardly be regarded as anything else.
Ye-these-construellye- funda- mentals do not conceal some that
awkwardn€KS, courses immediate suggested
At should be held for the seafarers the
almost the three in Japan.
moment to Itadicrous Sir Richard Snedden, General leading powers, the U.S., all Manager of the British Ship-Russia and Britain, ping Federation and United desperately striving to restore Kingdom shipowners' delegate the price mechanism to their to the conference, said Asians agriculture. were first-class and among the foremost seafarers in the world. Compared with the wages of shore Industries Aslan seafarers
Indonedan Gov- wages were high.
to
inter-
worze
than
Caution In The City
Landon, Oct. 12. A strong note of cauitan was evident in all sections of the Block Exchange following Marshal Tito's threats about Trieste and prices were generally lower although there were no big falls.
German bonds were Particulatly affected....the. potaik
inues losing ax much as 314 points. Japanese bonds dropped a point and more.-France- Pressc.
the
However, the week was a. mixed
'buo
Proflt taking
lowered Woolworths two shillings. Roll-Royce fell 2/6d.. Ford Motors 1/0d, Dunlops shilling.
મ
But there were plenty of rics Fuch ns Imperial Tobacco, up 1/3d., Lancashire Colten, up one shilling, Unilever, up ninepence and Courtaulds, up 7% pene: to 481, 3d., just below its peak.
Speculators, hopeful for a nice big dividend declaration at the end of this month, lifted Anglo- Iranian shares seven shillings to 156. 3d. But Royal Dutch lost fve shilings and the others were, inestly idle.
Japanese bonds took a heavy fall will 1930's, both assented and non-assented, down £3 and others down by £2 or £3. Great Universal' Stores, which Gennan Potash loans lost as had carlier put on 5/4d. much as £2 and the Dawes Loan slipped back from 82/7d to £2. Gold shares picked up 37/44.
somewhat as did some of the
Since then the shares have copper shares.-United Press, moved in opposlie directions, the former to 98/- and the latter to 60/1048.
NEW 188UE
In the all-important engineer- ing section, however, changes from last week's price levels have been very small.
RUBBER
STATISTICS PUBLISHED
Biggest talking point in this market has been the enormous success of the new debenture issue by the bollermaker, Babcock and
Wilcox. Sub-
Washington, Oct. 12. scriptions for this issue of £4
The Commerce Department has million of 44 per cent stock, released the following report on 1980, at a price of 974, totalled the natural rubber situation: no less than £68. million.
"World production of natural Three-quarters of the stock rubber in August, 1953, was es has been allocated to existing timated at 147,600 long 'tons by. of the Inter- shareholders and the company's the Secretoriat employees. Outside subscribers national Rubber Study Group. have been rationed to only Output in the first eight months
of this year. £100 of stock.
was placed The Treasury's new issue of 1,125,000 tons compared with Exchequer 1,165,000 tons in the inme period three per cent stock, 1962-03, was also highly of 1052.
"World consumption of natural took up successful. Investors £341 million of this stock, a rubber was estimated at 112,500 Bgure for in excess of the most tons in August 1953, 1032,500 tons in January-August 1953, and optimistic expectations,
047,500 tons in January-August, 1959. Estimated imports into Russia and
and China included in
NOT IMPORTANT
POLITICAL PROBLEM In- The United Kingdom has
given
that
Fundamentally, the problem is worst for Russia, because arranged would not use any waiver of the conference,
her system is most dependent year by the British Cotton "no new preference" rule in the
on agriculture and because her Mrd it was an bring will
together G.A.T.T. tp mcrease the advant
agriculture seems to have got senior nge enjoyed by Commonwealth errament managers,
into a desperate condition while and trade
union suppliers in the British market. Asiatic tragedy that a deliberat
the agriculture of her ratellites backed up this ing on seamen's problems in an officials. Colton is still one of
Ls ever
that. than Exports during the
not be avoid: totalled Y37,326,000,000 and im-
Britain's main industries which assurance with an undertaking Asian region, non-Asiatic Inter-
Qualitatively the problem may turns out the falshed article at to get rid of the quota restric-ference could ports Y09,320,000,000, each re-
the political and
nctually be worse for Britnin presenting a decline of 0.7 and
the rate of about 2,000,000,000 tons on imports as soon as its owing
balance of payments position economie situation there. 2.8 per cent from August.
yards а усаг
In Indonesia, maritime labour than for the U.S., because some pections of. British agriculture Sir Derms. will include
were below Speakers
But
tm-standards
have grown accustomed to even those are not the main
Exports
Chairman of
the but standards,
farcurs greater political Common-national YO,239,000,000 worth of cotton Raymond Streat,
who will portant irgues. The
taking steps their
JAPANESE BLUMP Callon Board.
American goods--10.7 per cent of the total the
counterparts.
But, although But the Immediate political talk on "the state of affairs in wealth supplies few, if any, of Government was products
which exports Y2.977,000,000 worth of
the to attain them.
in iron and steel, 'Y2,050,000,000
problem may be worst for the sentiment Kingdom the cotton Industry today." Sir United
the A committee appointed by Apeks Am-
market, worth of ships, Y1,920,000,000 Oliver
former Franks,
right to raise tariffs. And the the conference to discuss wel- US: It is aelatively easier worth of murine products, and bassador to
and United Kingdom is in any case
of fare
because Washington
Inflation facilities for Asian sea- Russia,
interest. Incomes is politically
has Demand Y1,445,000,000 worth
agree-farers in Asian ports decided to farmers' now deputy chairman of one bound by International
WLIN the of the big banks, will speak on ments to remove quota restric-recommend
welfare much more popular that The
cblet Imports were
tions as soon as possible. "The Economic Outlook."
should be set up with farmers than deflation of their incomes. worth of raw
This was stressed by Lord adequate representation of ship Balfour during the debate cotton or 10.0 per cent of the
owners and seafarers. imports Y6,110,000,000 The industry lost over 00,000) the G.A.T.T. at the Conser-
Provision of medical, recrea- Parly's ensual worth of wheat, Y5,200,000,000
tional and lodging at the peak of the vative
has ference last week-end. worth of petroleum, Y5,037,000-
last year and
promoted. 000 worth of wool, and Y3,514,- depression
Speaking for a large section should be 000,000 worth of rice-France-anly got back about 20,000.
the of British opinion he said the Mail Special. This suggests that world textile industry suddenly destinies of Britain's agricul-
Lancashire might be tural industry should be in her COTTON revived,
a disadvantage with other own hands and not in the hands main producing countries like of other G.A.T.T. countries. India and Japan.
Singapore, Oct. 12. Buying was confined to short covering and fluctuations were small. No. 1 rubber per lb. Oct. 30-60%
Nov.
57-581 Doc.
671-361 No. 2 rubber per 1. Oct. 43-57 No. 3 rubber per b. Oct. 4-53 No. rubber per 1. Oct. 519-61 6754-60 Spot rubber unbaled
46-17 Blanket crepe
03-65 United Prem AMSTERDAM MARKET
Amsterdam, Oct. 12. The market was quiet. No. 1 rubber per tb, Oct. 1.08 buyers Y11,733,000,000 No, a rubber per lb. Oct. 1.80 buyers No. 3 rubber per lb. Oel, 1.37 nom. total No. 1 crepe ribber perib. 1.00 buyers
No. 1 crepe, pale,
-United Preis.
LONDON TIN MARKET
London, Oct. 12,
was stendy. The tin market
£2 to Spot was marked up £508, and three-month tin rose £1 to £680% par long
ton. Spot tin, buyers sellers
60711
500
Three-manih tin, buyers
Business
50716-000 505 BOSIS #u. --United. Prem.
silk.
of raw
Presse.
Galvanised Iron
Plant In PL
Firms are worried about the labour situation.
workers
at
A
J
on
Board
REAL 169UE
boards
011
con-
members, to raise
facilities
China Callure
ot
this helped the gili-edged these figures tolle 2,000 tons, the Zunda lacked 70,600 toes and 103.750 tons,
been mainly
respectively.
"Up 12,500 tons from the De for the new stock which opened cember 31, 1952 position, world. on Wednesday around its issue stocks of natural rubber at the
of August,
830,000
of 00% and then suddenly end
Thursday,
1953. were
lons.
tuns in
have fallen producing countries, 407,000 tons
on further talk of in consuming countries (exclud
Russia is boosting zeme farm prices. It may actually harder in Britain than in
but the US.
price
Jumped to 994 on
be
the
alternative
to disinflate
In the foreign bond market Japanese of sharply
ostiming of 240,000 -
at
juds
reaching crisis proportions.
Feature
of the commodity United
Kingdom decline markets was the
Stator, the United
even
of
and France) and
since April Excluding Russian synthetics,
estimates for.
and Government stocks in the cowardly failure-would Japan's sterling shortage, now ing Russian and Chinese stocks beleza serious for Britain than PICKING for the US, simply because
agriculture in Britain is
£
Bhar IN HUNGARY
proportion of Emailer
of rubber shares following the 162 500 tons ofloat," the Parls, Oct. 12.
rubber national economy than in any drop in the commodity price to
lowest level the world.its Cotton harvesting in several other country in What the United Kingdom is regions in Hungary has begun agriculture
Tronury
the announcement August, 1953, were: Production Humphrey Instanced 1950, and Cotton recent
the reeking at Geneva is the right. Budapest Radio reported today. difficulty to show
tha that United States manufac-75,000 tons; consumption 08,000 End of month stocks Manila, Oct, 12.
that publication stressed
any already enjoyed by the other Despite the late frog's, the har balancing problem, because of contracts for synthetic rubber.
his budget-turers cannot cancel forward tons. Negotiations are reported be- most
187.500 tons, up 50,000 tons from serious' brake
the December 31, 1952 position. tween Japanese and, Flipino further expansion of output in G.A.T.T.
Grits where these are not ui- vest was expected to be fairly the dimculty of estimating how
For the first eight months of businessmen for the establish the shortage of labour,
"WEST END STUFF"? · I existing good, the Radla added. "bound" by Iment of a $2,000,000 galvanised
1083 production was estimated In cotton exports Britoin has
London, Oct. 12. when Using sceds specially selected much farm price support will be needed and how much, of-it concessions the Iron plant in Manila.
Improve G.A.TT nob maintained
during at 070,000 tone and consumption British Experianco action proves for their resistance to fairly will be handled by the banks if such
while for the Frustrach of the Treasury. In the 20th Century has been (1) at 617,500 tons, tion of Philippine Traders with quarter of last year, whereas necessary to protect domestic severs temperature, cotton grow
ing, which was introduced into the year ended June, it cost that all "bull markets", oven- same period a year ago, produc- Japan, who returned from a Japanese exports have shown agriculture and Industry.
125 per cont mora than The United Kingdom Gov-Hungary in 1948, has given ex-
the tually come to an end and (2)tion was placed at 605,101 tons and consumption et 880,000 tons. progressive Increases during the
budget naturally
eslimate-mana anxious cellent results-France-Presso.
they do so,
"In the first eight months of quarters to the end of jernment is
that
$1,880 million instead of 800 Just before this principle should be
public rushes in after some new 1053 world consumption of June-China Mall Speulat....
recognised by the G.A.T.T.
As things are going, and very special type of hates natural rubber and synthetic. But It
that experierico - may had clearly
compare This is known on the floor estimate the popular support
favourably with the present of the Stock fiical your. A couple of billion
ready
The President of the Associa ment shown during the fourth and
confer with
London Foreign Japanese representatives of the tired
Exchange
New York Montreal Amsterdam
Osle
Copenhage
(Stockholm
Blocked, Back
London, Oct. 12,
2.00 3/16-200 0/18 370-2.7034 104331-10.63 140.10 140.106
19.081-129034, 12.38-12.184.
001-0813/
13.011-11,04
trip to Tokyo to
Interested concern, said that the Japanese conecr wan willing to extend a a loate
the nasocia
tion in the form of machinery and a small amount of cash for the establishment of the factory. -France-Presse,
HOLIDAY IN U.S.
New York, Oct. 12,
All principal American mar keta viore closed for Columbus ¡Day, today.--Uniled Press,
AT JAPANESE BONDS for
London, Oct. 12,
Exchange Rates for the Empire trade fampaign. Japanese bonda
le the monies of its own party.
Lord Balfour's: proposal for a
Business was done in the local modification of the G.AT.T
mometal Exchange – market noring at the following ratesi-e 19. dollar
(per $10 Elterling sober (por (1) Indonesian guillers ("/100) Siam ticals (per 100) Hingapore (Straits) Indo-China plastems (per 100)..
"A" (in of 1899)
#g". (4s of 1010)
"C" (Ba of 1907),
"D": (03 of 1924)
"E (51⁄21⁄2 of 1980).
than-
that
the
Home
January United Slater
1,627,500 on against middle August 1937.
id Stuff," meaning " or "West /rubber reached 1,630,000, tong as, zupports may not look much In this has swept the
and the lower middle consumption jumped to 937,211
82
7314
dollars more for · agricultural
1334
1984
This and offs Informatoriali.grdos mond to restore the United
(Tokyo 814 of 1920) 09 extend 10.60 Kingdom's freedom to
Imperial
**Q" ("Tokyo 68.of 1912) 102 Profetinicos.
W day accepted by Mr Thoneycroft, Consola By President of the Board.
-Unlied 'Press,”
$370-billion economy," bul,
činak
from 811,084 tens and
Russia and Chips increonod
im foreign consumpuce dubide
with the national dobt airoady cines without favourably im so close to tho ceiling US messing the brokers.RAR
In 1946-47, it was the short try to 880,000 tons from agriculture in cepable of being something more than the last of dog racing companies and 11,800 tons, respectively, from straw which becsks the camera holiday camps. 1980-87. At the same period, a year ago." back Reuter,
was dirt track sharon-#, rami United Press.
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