Limited Scope Of Debt-Funding Proposals
(By Norman Crump, Sunday Times City' Editor) London, Oct. 4.' Judged in the light of previous expectations, the Government's debt-funding proposals, which were announced last Wednesday, appear limited in their scope.
Their main purpose is to provide for the £577 million of 14 per cent Serial Funding stock, maturing next month.
2
No attempt is made to deal with the £412 million of per cent National War Bonds due for repayment next. March. Nor is there any major attempt to raise extra cash and so to reduce the present volume of Treasury, bills.
to
for
issue is for an unlimited amount. inent.
open
the
Nevertheless, the present, into Inking us new Government operation has points of interest. stock, simply to redeem some It begins by offering to the of The total
anual bufiding
banks holdings of holders of the maturing Serial Treasury bills. copacity of eccan-going zhips Is
Action of this Funding stock the opportunity kind woult 050,000 tons and in the scal
no1 be dlsin- into per utionary, for it would not affect year 1851-2 Japon constructed to convert alther
cent Serial Funding stock, 1954, either the spending habits of the 230,000 gross tons of shipping for export to
or into a new issue of 2% per pubile or the lending policy of foreign owners
owners cent Serial Funding "slock,
the
banks--which, Indeed, which kept the yards close to
In addition, there s nis full capacity. Νειν,
already fremed due to
ceerdance only, of 3 per cent with the wishes of the Govern Japanese steel prices and other cas
Exchequer stock, 1962-83. This corts being above work! levels,
What it would do would be to It is cheaper to built a vessel in European yards than in Japan, tion flats will open
at a price of 001. The subscrip- Increase the cost of the interest and close on the National Debl, and also huve been
tomorrow. "diverted elsewhere. Thus almost
to divert into the Exchequer Considering first the conver- savings which are needed for the only construction work now sion offer, which remains
purposes. under why is on vesstils, ordered until October 10, the 1954 Serlat and under the
new Issues are current
Japanese Funding stock will appeal mainly
along. of which the shipbuilding
ainly coming and programme,
to those who want to remain Babcock and Wilcox debentures about half the nation's ship-
eally
It is the new re
are the latest. building capacity is idle.
So, in leaving 1957 stock which is much the the City and the public entirely more aftmetive. It la repayable free to flud just as much money in four years time, and so can they like
this be regarded as reasonably short; Government issue, the Treasury of £2 85. 10d. per cent. and it offers o redemption yield
has done the right thing. It has provided further evidence of our be surprising It will
If the return towards financial freedom banks and other institutions, and elastielty. This augurs well who are the mala holders
of for the future. next month's maturities, do not go mainly for this 1057 lock. Indeed the question has been
it would na asked, whether have paid the Treasury to offer this stock also for cash.
Today the house of Krupp has of their passengers are German and foreign orders made olmost unbelievable pro-
TYPICAL AUTION gress from its post-war situation
and semi-destructions
im-
This illustrates the growing potence under Allied adminis-
with une tration. These are a few of the German connection hields in
Krupps which
IsImportant underdeveloped area.
It is typical of and
Krupps-in acquiring huge
ង ibis new mood of pioneering 1000 1.35 building up its business at
farmliable
rale:
that the firm is taking a large India: tu cempuny industrial combines of
ore deposits in
mining and
contracts
with
the shore in the development of the Demag fron
135 200 8.00 and Klockner, Krupps is, at the Watenstedt-Salzgitter
1730
Trat
141 140 {21 Star Ferry
19ght TDi 1309 23 20
100... 130 109 110
request of the Indian meni,
constructing
Arca.
the
It
Govern-is constructing
£60 melting machinery for this bla millions steel mill over a four-potential source of German Iron
Krupps's ՔՈ Է՝
period.
repre- ore.
of the witch Typĺbal, ico, sentatives managed to outbid
to this from British
for
cannons competitors which will eventually machinery is
the
peace-time construction
2015 million tons of steel; by Krupps for the Rhineland 272110021.80
1643 13,03 14ght (N) 91, 985 2000 44 9 54 | Electr Maeño Elev
Telepitome INDUSTRIALS
Cement Rept
STORES, ETC.
13
-U
20 1000 24 23
18.50 1700
600 - 23.20
year and which will be jointly brown-coal fields of the biggest surface coal excavator in the financed by the Indian Govern-
5,000 ment, the World Bank, and world. This will weigh Germon heavy industry. Krupps tons and be able to shift 10,000 is also helping to build a cement cubic metres of soil a day. works three Hundred
One of the Immediate
results 23.10 23.10
ay. This works of this wealth of worth-while south of Bombay, 231 2
1001 23.70 will have a production target of contracts is that Krupps--lately three hundred tons of cement a shattered and dismembered is day and is handily placed in the
567 151
Bolty
Watson
1.
Crawford Kwok Sang
Hong
131
COTTONS
Ewo
21
Textile Corp.
1000 d
5.05
Oct. 23 for.
Yokohama,
usun,
Kobe
&
Oct, 22 from Singapore.
(Accepting catro for transhipment Kobe/Pusan apd Kobe/Okinawa)
EVERETT STEAMSHIP CORPORATION S/A
(Incorporated in the rpribile of Panama
With Limited Liability
Queen's Building, Telephone 31206,
Chinese Department: Telephone 28293.
Malaya Alarmed
By Rapid Drop In Rubber Price
Singapore, Oct. 14.
A drop of almost six per cent per pound in the price of first grade rubber over the past eight days
is causing high economic tension in Malaya, es- pecially among rubber men.
The Rubber
Markets
Lonilon, Oct. rubber market
The
No. 1 Iss steadier with quoted at 10-13/16 pence Prices:
No. 1 Hex upot Settlement House terms: November December January/Marth
...
April/June July/September
J
14.
FIRST STEP
Faced with the fact that high costs have priced Japanese-built
Ievel
ships out of the internationat market, the Government recently moved to bring down interest charges and the price of sles! for shipbuilding to o which
Japanese shipbuilders would again be able to compete with other nations. As Ars
Interest rates. chargest step,
by, Government
commercial banks on loans to finance ship construction were reduced, by -means of Government grants, lo a point nearer the international level in the case of Govern ment banks to 3% per cent,
The price of shipbuilding steel-plate in Japan is currently
n ton,
quid.
THE CASH ISSUE -
Jur
NOW
Mixed Trade In Cotton
Futures
The simple answer may be that the 1982-03 Exchequer steck is a cash offer, and that to have a cash-cuff conversion
offer of u second stock at the same time would have complicated the position. It
It may also be asked Colton futures prices todny why an unlimited
issdod, mixed dealings. Here the probable answer is that The market, opened unchang- both issues of Exchequer stock, ca to up four points.
New York, Oct. 14.
middle of one of India's largest considerable expansion the equivalent of £53
it steel constructional | including 210 a ton for "extras" | Excliequer stock is amount of | favoured the upside in quiet and
of its
Ilmestone deposits.
heliacusen. This
concerned with size full Pakistan: Krupps has agreed firm's forder-books are
its orders with quality. A plan to reduce in to produce consultant engineers absorb ail existing productive steel
unta 1055 and
price to coincide with
world Pakistan for the
Government
prices by cutting the eapaelly. and to undertake, a thorough
"extra" rate to 10% per ton is nt For that
is reason Krupps survey of all production and of instituting a four-year plan," the alm being to
present under consideration- lower con- the possibilities of building entailing the building of three struction costs by about 11 per la sizable steel industry. Krupps
:
10
will also build a plat steel plant big machine shops at Rhein- with a yearly production of hausen and the increasing of its about 20,000 tons of steel. This present employ from 3,000 was plant, according to
unoficial 8,000, spot reporis. will cost, after expan- per lb. slon, between £25 und £30 millions-and-Krupps-will-take 15-16 shores in the enterprise in lieu 1094-167% of nonetary payment. 107-17
17-171
171-173
174-11
United Press.
20 cents a pound. December March (1834)
Spot No. 1 Res were quoted at
"POOR" FIRM A
new
cont.
L
1980, which were made carlier Less netive hedge-selling was yor, were over-subscribed, nus-rued routine demand which showed the Treasury that from domestic mills and other more munty
if trade loterests. Local specula- was available,
sites Un only they had asked for 11, Thisters were on both time the Treasury is ready to stall way. take all that it can get, but this The show of stability in the does not mean that on Indefinite face of the glant-sized стор amount will be forthcoming. In prospect, with the chance that heard estimates | it might grow bigger with a 'late fact, I have
from £150 ranging
million
to frost, gave the nation to, some £250 millon
technleins that "perhaps perhaps
the had discounted Bear Actually this 3 per cent 10-market year stock will be quite a useful factors for the time being."
Evening-up Interest holding, particularly for tacs
Japan's steel manufacturers have argued, In the current negotiations, that much of their equipment is obsolete and that, In order to replace it, they are faced with the necessity of borrowing
money n!
rates so
high
tint the cost the resultaat product must be above world levels,
siccl
The astonishing-fenture of the Krupps "come back is the apparent ease with which capitai is being found to dinner IN MIDDLE EAST
projects all over the world
Govern- Egypt:
industry is urging the Krupps directors say The retret of this has still not that this is their third
inent to compensate them--and most been fully explained. In rome
reduce steel prices for ship con important market in the East. cases capital is being found in
the offering
struction by indirect financial
con-
The
loss than
October
who think more about avalding delivery provided another trail- spol month about current log feature. The This applies to both went off the board nt, 32.45 Individual and institutional 111 cents, oft a point not. vestors. If I am right in
Forty-three notices appeared. ing the whole of next Attendant liquidation was taken maturities to be converted, the up by leading spot Interests ni
The Krupp interest in Egypt is the cou others it is presumed Į aid in the form of lower interest proceeds of this Exchequer stock/30-31 points under December
స
as
Issue should give the authorities The New York Colton Ex- a nice little nest egg in readiness change
Service Bure tony for the 1952-51. War Bond estimated domestic consumption the four- maturities of next March.
of all raw cotton for week period ended September 20 at 733,000 bales. This com
OTHER POSSIBILITIES
There are other possibilities. Įpare
pared with 720,000 bates in the
bales
NEW YORK MARKET
New York, Oct. 14. believed to be of two kinds. track
tracts. In fubber futures closed 24-35 The firm will ship machinery, that the Federal Germon | charges on borrowed funds. points higher with sales of 14 heavy lorries, and
All indications are that, what- locomotives Government is affording long- contracts. Rubber followed the to that country. It will also term credit facilities. Krupps
ever the future of Japan's chip- higher trend
primary have an important share in the of the
maintains that it is
"poor"
regards markets although business was
of n steel plant -
firm, which cannot even afford building industry
foreign orders, the revival of construction on a limited scale. In the spot probably ucar Caire. Reports its own press department. the nation's own mechant market, one leading dealer in that Krupps will also have an It should not be prematurely
will continue as planned, --- terest liquidated all nearby post-interest in the huge project of assumed that Krupps is among
Manchester Guardian. tiens with other dealers on the the Assuan Datu, have not been German Arms which offer
gond
In the first place the authorities preceding period and 437,000 The threat of State inter-
are already buying 1032-54 Wor
last year. buying side.
denied.
feredlt terms and early delivery
ference with insurance, which Bonda in the indrket. Next, the An Atlanta trade report said Factory interest
slight. was
Turkey: The Krupps manage tracts and
not buying dates in order to capture con-
still existed, was not D its
threat authorities may well decide to textile mills were then revises ment adnilited yesterday that
against a particular section, but convert their holdings of 1953 much because of low demand the terms when fuldiment of
to the whole fabric of British Serial Funding stock inte gods. Memphis ulo reported the for cloth particularly heavy 20.13 its blueprint for the consruction
under 20.23 bid of
way. Only a steel suspension bridge contracts in
insurance, said Mr W. L. Grant, new 1857 steck, and then less inquiry and demand from
geli 20.25 bid
one assumption can, indeed, be 20.23 bid over the Bosphorous is likely to
the general manager of the Pearl lutter to the banks, made at this moment. Kruppe 20.25 bid be
accepted
Assurance Co., in Lendun. by the Turkish
Prices of cotton futures closed Giving his president address quite possibly will be only the mills during the past weeks. Government. The plan is the has come back as a major factor
glad to buy. This would provide United Press.
in the industrial scene and has work of a German
architect done this
to the Insurance Institute of the authorities with some more today as follows:- from
Spol Professor Bonatz, and the bridge war" to "peace"
by Suction. London, Mr Grant sald that money, which they could use to Det. (expired 1730 GMT) 1242 AMSTERDAM MARKET
would cost about £25 millions. It
Industrial life assurance,
Bonds. more buy 1882-54
War
In December Amsterdim. Q. 14,
Krupps seems likely to do- would be 1,300 yards long and
described
roundabout but effective Martiz (1954) appropriately velop and anchor its interests in The rubber market was steadie. Le suspended about 200 feet.
"home service insurance," could ways, it could easily come about May the new markets which it is. Prizes closed as follows:-
that the problem of dealing with July of in isolation. Syria; Krupps
not be thought
the maturities of next March October
December The first effect of the threat to Interested in shipping industrial opening up by accepting shares In new enterprises. Krupps
had shrunk to relatively minor Mardis (1935) machinery of all kinds to Syria, will, in effect, became part-it was the remarkable solidarity
dimensions. of all insurance Interests during including equipment W owner of key industries in the the past few years.
P for oil refineries. The firm has British Empire, as well as else- already picked up some valuable where, It should-be-remem-industry in
Insurance was bered-although may be an In keeping with their concen- unust truted attention on comparative-
May July
December
First grade rubber reached a record low since September early 1950 with October first grade selling at 56 cents.
Malaya rubber men, alarmed (is no doubt that at the rapli drop, warned of j situation
the economic consequences
in
to serious. Everybody
the rubber is very feel must
Mulayı particularly
those. fio, a rubber per ih. Oct. 1.00 Buyers
the country and the Sterling the pinch, area in general since rubber is with replanting programmes." the Sterling area's biggest
The Vice-President of the dollar-carner.
Federation of Rubber Associn-
One source said the fall be tenir also werred of ces econce low 60 cents per pound means me break-down if the present
an automatic
rate of
export duty payable te
Government
reduction in the palce den! continues.
Meanwhile, ore, scarce raid of 5% of value, pobreachmeer has direatly started and a cessation of compulsory in scene Singapore rubber flimk
and which
Inny
contribution for planting
h UTMES replanting. He said a number diminals if the price drops any of the
len
spektermah
No. 1 rubber per tb, Oct. 1.07 paid bo. rubber per 1. Oct. 1.59 noin. No. 1 erepe rubber per
b. Det.
1.00 пол. -United Press.
Consumption At
Peak New
probably
contracts in this country.
actively
unjust
to
ак
a competitive market, and indred
33.40
32.70-71
33.10-20
33.40
33.42 пат,
33.00
33.00 Not
33.10 bid NEW ORLEANS PRICES this suggests that the
New Orleans, Qet. 14, Prices of cotton rutures closed generally, are likely to today as follows:- remain fim. The current fund. Spot
texpr 1730 (MT) operation had
It Det. (expire
December It is now March (1854)
such lay dia July
October December
the there always como easily. A great ing.
Sy undeveloped areas the Krupp nothing...
Rolling ung in tho Sudwerke
that
and
stop the cool directors are opening up other and steel Industries in
any markets in South America
country
other than Germany. South-east Akron, Ohio, Oct. 14.
Europe.
quite certain it of producers are already in towo: A
World rubber consumption stock, the red" and many more may Singapore Rubber Packers' As will reach a new peak of 2,400,- Gusatahlfabrik
CLOCH
is now manufactured
the name of Krupp and br. forced to close down their elation disclosed that many f
this year but ample in Essen, is becoming
an im--no written in capital letters i estater.
had staff re-organisation plan 000 tons
just in Germany but all supplies are avaliable, according ready,
over the world. It Several producers placed the
Argenting. Yugoslavia is another It is recalled that Leroy John to the President of the Goon portant export to Brazil
hoped that the phrase "peaceful blime squarely on the United non, icader of a U.S. mirsion year Tyre und Rubber Company.
the Stater closed-door policy. One during their visit here over the Mr
will install nickel processing material and synthetle
case and cnp the story. sympathetic rubber facilities throughout the plant in
complete setzse, and collective aetion did not
change of outlook was seen the highly successful of the Insurance
ance associations in
In ventures
the field of public relations.
The
of maintenance
highest
the
shadow before clear that
to ដ
kh1
Cause
turbance.
and
operation 19
a ininimum
should
It may be ore March (1935)
that the trenity to carry
taken this professional standards
out
a major operation, designed to reduce substantially the out-
bills. I am sure that this would
31.40
32.43
32.75-70
33.11
31.50
33.41 Ula
53.03 bid
31.00 Uld
33.00 bis
United Preen.
of Treasury London Copper
And Zinc
of conduct, which was the alma of the Chartered Insurance In- is to be tute, was one of the Burcztstanding volumb
cfforts rewarding and most commending the insurance in- have been a mistake. dustry to the public. The meet- ing was the first In the lecture season of the London institute, which has 9,000 members.
producer said there is a lack of weekend, szid that he and hit ex E. J. Thomas noted that/excellent morket, and Krupps reorientation" will cover
wero
Greece, north
appreciation on the part of the colleagues United States of the Malayan toward Mulaya's ruliber industry world can produce 2,780,000 tons/Athens, as a part of plans to
dible 10
consider London Foreign
DRAZIL —EXAMPLE
Brazil afforda an interesting example, of how any given Gor-
rubber industry's problems problems and they had
a year. However, he called for utilise that country's The only solution was. for tho
on expansion of the synthetic able nickle ore deposits. United States to allow the hope
that the price of maturat
meet the WIRH rubber industry to would rubber
up wh go ordinary laws of supply and dynthetic going to private
to prospective Inercise In rubber proi mand to operate fairly between synthe
fie bald fynthetic had consumption.Ualled Press. and synthetic ducers. natural rubber rubber. He warned that further
rell cheaper undor declines would force rubber American Government control workers Into a lower standard of and subsidy but it would not be so under privató throw many able to dů living and even thousands out of employment cutérprize,
Mr Johnson gave the assurent) This, he said, would not help in the and Communist campaign that the United States would de
everything within reason in Malaya.
The president of the Rubber prevent Malaye's, tin and fuþbir Communist Producers Council of Malaya, from falling into Me H. A. Campbell, said "There hands,"United Press.
Exchange
Exchange Rates an export firm may houd to New York.
Busines was done in lie local this unometal excllango market morning at the following rates
secure 'repayment for Its ser- Montreal vices...
„Drumols
London, Oct. 24.
CONFIDENCE RESTORED Two years ago a major opera-
London, Oct. 14: tion was necessary, Confidence Copper was, quiet, zine and in our ocpnomie, stability had to lead were steudy. Prices at the be restored, and the world had end of the unofBeial session!——
doubt Copper pol£2371% buyer 2249 eller
S-month that we were restoring menctary Eine Detal Tajs discipline. Hence the Bank
Jun 201 Oct, London, Oct. 14. -- Rate, Increases, and hence, 100, Land
Jan. the driginal issues of Sorihi
JAPANESE BONDS to bo shown beyond
180-7/10-100-9/10
110-11/16 Japanese bonds
140.00-140.10
9.9032-18.0045 31841-12.1016 19.3814-19,383 2645
stock
A Confidence has been |
"A" (48. of 1880)
"B" (4%- of-1910)
7412
"C" (58 of 1907)
135
p" (Bs of 1024)
104%
ME" (098) of 1080)
101
Mark
∙13-189
(TOKSO BA OF 1920) 94 *a (Tokyo, Ba.of 1912), 103. Consol
*United. Press,
Krupps will hope to draw on Osb Brazil's debli trade balanced with Zurich NA MAMA | Copenhagen Germany, at present in the forni Parta 14.6 of blocked Brazilian cruzeirom, Blockholm 1750 The Bestillan Government could Lisbon
1a "convert" its debts by giving locked stark 6.65 | Arms like Krupps shares in new
US dollar per 31) 2150 Sterling notes per 211, Indonesian guilders (pek 1boy Siam tlcals (per 100). Singapore (Blemitu}
Indo-China plastres (por, 100)
31.20
Deutsche
03 0/10 United Press.
[2
73
44
Unted· Frees
Now- York, Oct; 14:
the posille ja entirel Copra Quotation
restored, and so it is time to
show the world that monetary Copra was quoted today at discipline do Inouns freedom $200 per short ton, eff Fadle and flexibility. Therefore Coast. Coconut oll was quoted would be entirely wrong to bully at
10 cents per lb, elt West
or cajole:the City, or the public Coast.-United Press,
No comments yet.
Private notes are available after approval.