1953-12-30 — Page 9

THE CHINA MAIL, WEDNESDAY, DECEMBER 80, 1953.

'GADSDEN'S FOLLY' OF 1853 BROUGHT EMPIRE OF CATTLE & COTTON TO U.S.A.

(By WARREN BENNETT)

Arizona and New Mexico celebrate today the 100th anniversary of the Gadsden Purchase, a 30-million-acre tract about the size of Pennsylvania.

The purchase price of 10 million dollars not only added 45,535 square miles to the territory of the United States but it settled a damage suit of 15 million dollars brought by Mexico against this country for Indian raids down across the border.

But the main reason it was bought stems directly from the dia- covery of gold in California in 1849.

NO BLAZING HEARTHS FOR COMRADES:

Coal Crisis In Yugoslavia

Belgrade, Dec. 29.

A cheerless New Year in freezing houses faces many Belgrade families, unless a solution is rapidly found to Yugoslavia's coal crisis,

As

TRADE and COMMERCE SECTION

U.S. ECONOMY

EXAMINED

"1954 Is Not Likely To Be Easy"

(By SYDNEY S. CAMPELL}}

London, Dec. 29. According to the U.S. Government's Information Service, economic advisers to Congress take a hopeful view of the course of the U.S. economy for the coming six months.

Mr Grover W. Ensley, Staff Director of the Joint Congressional Committee on the Economic Report, says, "I can see now for the next six months a pretty strong economy.”

Total employment of 61,925,000 in November was 308,000 below November of last year, while unemployment of 2,300,000 was 100,000 over November 1952 and 500,000 over October of this year.

facilities in However, the Congressional ember 1053, even though the ex-new production

weather this these felds. But that was only experts regard as "very signi- ceptional mila ficunt" the fact that,

a part of the story. despite November was much more pro- allke population inereuses, the civilian pitous for outdoor work labour force decreased to 61, in agriculture, industry and con- 925,000 in November from 62,- struction 328,000 in the sarna month of last year.

This means," It was cx- plained, "that an extraordinary number of workers have with- drawn rom the inbour market" They include housewives and older workers.

Business and employment ought to have gained more from the from that then they lost mild-weather disturbance to sales of such things as oil, coal and winter clothing.

But in the event it has been the other way round, and some "If there are still substantial of the unseasonal activity which numbers of such workers in the construction has gained from labour (orce, as is suggested, the mild weather la regarded total employment

"borrowed" from could decline as much further without resulting business. In unemployment indicative of serlous downturn in the country's economy,”

a

д

Railroads were engaged in race to reach the gold felds. Surveys had shown the fund south of the Gila River was the inost practicable southern route across the rugged Rocky Moun- Lains. The only hitch was this strip

was

a sort of No Man's Land claimed by Mexico and the United States,

One of the men interested in trans-continental route whs James Gadsden, President of the South Carolina Railroad with headquarters in Charlesion, He wanted to build a railroad across those plains south of the Gila to link the gold ftelds of the Weat with the supply centres of the East and also to tap the rich China trade.

Grisden was appointed minis- ter to Mexico to negotiate the and at the same time

Supplies for industry and the Collieries began to rush pro- railways are also threatened. duction da soon

the crisis The collieries say that fadus became evident. But they stated try and the railways allowed openly that they would not be purchase slocks to run dangerously low able to make up for what had settle the border dispute with: during the summer and only of been lost carlier in the year, Mexico and that damage suit the onset of winter camo for- One difficulty was that they over Indian raids, Gadsden's ward with big demands for coal, had dlermissed miners when they appointment by President Frank- which could not possibly be could not get rid of their coal in lin Pleree aroused * contro- fulfilled.

the summer, and are now find- versy in Congress. In addition, they said, the railing that these men have

This was more than a decade jobs Rnd ways deliberately failed to re- other

before the Civil War but the plenish stocks 43 part of

a return.

elavery "blackmail" policy

issue was strong. The to force The dispute between railways North opposed acquisition of any they and collieries came into the open new territory that would in-

when, at the end of November, crease the domain of the South.

prices

down which

succeeded in doing.

would

taken not

The railways, on the other the Yugoslav Hallway Direc-

salo

contracts

GETE

"A LAND GRAB”

future

A1 Pago 9,

NEW YORK Bank Credits

STOCK

MARKET

New York, Dec. 20, Stocks declined to their lowest levels in two months to day on selling for tax purposes but they rallied later in the day. A burst of selling in the second hour dropped the general market average to its lowest point since

For U.K.

Shipbuilders

-

London, Dec, 28.

The Chancellor of tho Exchequer, Mr R. A. Butler bas made the long-awaited announce- the purchase of heavy capital ment on bank credits to finance

goods in the UK, of viját inférest fo, the shipbuilders,

October 28 and In future, bank credits for UK boosted volunc to 520,000 shipbuilders will ba easier to shares-heaviest for the period obtain and repayment terms will since April 0.

be less arierous. The stipulation

means

Almost Immediately, prices that loans of over £50,000, steadied and volume lightened and then in the last hours of of ships must be replaced withm granted to finance the purchase trading

the markot pulled up sharply,

six months by "less inflotiontry" with volume picking

of borrowing has been up again.

withdrawn. Industrial stocks, down $4 at the day's low, Inished just $1.61 lower Rails, off $1.81 at their

bottom, closed down $1.02. Uulitica Just

about halved their 32 cents extrema loss, closing 13 cents lower.

Volume for the full session totalled 2,140,000 shares, the heaviest session since Sept. 15.

The selling was most marked in "blue chip industrials such as General Electric, Du Pont and Westinghouse Electric.

will continue

The Capital Issues Committer to consider the purpose of the credits brought to their notice, but the period of to bo settled the banks and their

repayment between customers.

Mr Butler said the new ar-

rangemnts would be embodied in a letter of guidance to Lord Kennet, Chairman of the Capital

Issues Commlitee.

The Shipbuilding Conference had welcomed "with very real satisfaction,"

the

Chancellor's announcement.

"These helpful measures may

Those sure stocks led in the The full story was that of the later recovery as traders con 237 items listed in the original cluded they had been sold. post-Korch expansion рго- The market was the broadest gramme, requirements have since last June 9, with '1,220 been filled for 120 items and no issues traded-753 lower, 201 more write-off certificates are higher. 260 unchanged, being issued for them. Issue of

The New York Stock Ex-stimulate sumo orders in the the certificates

band volume was is indefinitely

change

at present dificult circumstances, suspended for another 48 items, $3,500,000.

and will help to avoid threatened where it is thought that the re- The American Stock Ex- cancellations, which in certain quirements are filled and the change volume

030,000 cases, were being influenced by Administration is investigating shares.

the owner's inability to finance to make sure.

Dow Jones closing average the increased costs of construc→

were

30 industrials

20 rails

15 utile

65 stocks 40 bonds

was

Dec, 29

tion which have arisen since 278.30 the dates on which orders were 13.58 originally · placed," the Con- 100.02 ference said.

$1.91

07.10 108.02

New York Metal

TAX STIMULUS

That leaves only 68 of the 237 items still eligible for the NO CHEER

certificates. In many even of the 68, the requirements are 100 Comm, future price Business Weck, a highly re- per cent illled from U.S. capacity

takes

but the the and imports together, If the Congressional experts garded publication, are satisfled, that is that. Other nothing to cheer about but,

drop in the labour force as Government La still prepared to observers might feel

on give the tax stimulus for more that if

"warning domestic capacity, so as to re- total employment did decline the contrary, as a "much further,"

duce the dependence on imports. it would be ing." It does brake the rise in

which serious regardless of whether It unemployment; but in the face In this category, Items

of the rise

in population and

are 100 showed up in retirements from the entry of young workers it per cent filled include

untimony, barito, bauxite, means that, over the past year, fractory chromite, columbite Land about a million people have y

and tantalite ores, copper, lead, seasonal stoppest looking for work.

manganese ore, mercury, molyb denum, tungsten ore and zinc, weeks, For several

Bome Several others are nearly 100 bankers have suspected that ***

per cent nlled. In all these the Federal Reserve is trying to

the working force or in unem- ployment.

Was

the In November, drop in farm employment half a million, the same as last year; but the seasonal rise

in

non-farm employment was less augment the money supply by items, stimulating further U.S.

an average of 3 per cent per porta does more damage B&0,000 last year. So total em-

than ployment, which had

to keep the economy by annum, risen

good to the ccoonmy of the free world as a whole. more than 350,000 in November growing without inflation. 1952, dropped 300,000 in Nov- The idea is that, over a very

long past period,

the US. economy has grown by about 3 per cent year, but that, as the money supply has grown faster, there hurs been inflation. So if the money supply is increased by 3 per cent a year, everything will be grand. It seems credibly naive,

HONGKONG

SHARE MARKET

(From Our Correspondent)'

Business dono on the Stock Exchange this morning amount- ed to $345,335. Noon

quota

Business depends,

in-

of course, on the speed with which money Is used, not merely on its total supply.

So

Since that reacts on the U.S., It may do more damage than good to the US. economy itself. It

certainly does to the foreign suppliers.

In private capital Investment, some corporations intend at pre- sent to make larger capital out- lays, arguing that the best way to meet dimeult markets is by as to be more modernising so competitive. If they adhere their intentions, it will help the situation in 1954.

to

..

Futures

New York, Dec. 29.

Dac. Jan. Tin Dec.

· Jan. Zine Dec. Copper Dee.

Jan.

Prices in US cents per lb.

LONDON

12.676

85 US

62.50%

9.330

SATISFIED

Banking “circles have also ex- pressed satisfaction at the Gov- ernment deckion. However, not

al banks consider that the pro-

vision of loans of a relatively long-term character for finan- cing the scale of ships and other heavy capital goods come within

scope of ordinary the mercial-banking - business,~

com-

It is thought that some bank- 9285 ing houses will also be will- 29.750 30.00b

-United Press, FUTURES London, Dec. 29.

byver veller

WAKA 035

6374 234

232131

3-months

Tin spot Copper spot

2335

3-month

221

Lead Dec.

804

Mar

BB

Dec.

TEK

Mar.

Zine

All pilces ton-United Pres.

75 T3% 1322 sterling per long

Loan To Japan

For Power

Washington, Dec. 20.

The International Bank re- surprising if the answer to the ported that its $40,200,000 Jonn electric turns out to be the same as it power development problems of woning demand to Japon for thermal

But on the whole it will be the Federal Re- At present serve is willing to pump any amount of money into the sys- tem, but does no good, be- cause business refuses to use it. has been for the problems of effect today. | tions and the morning's transac-

booming demand, namely spenxi- The In the week to December 9 ing more on capital Investment. October, tions:---

the Federal Reserve pumped no SHARES BUYERS SELLERA BALES less than $264 million into the

DANKS

TK Bank... 1883.1095

INSURANCES

I

Lombard Union

and, accuse the coal mines of torate "blockaded" the "Tito" claregarding the terms of their mine at Banovici, in Bosnia, by by delivering refusing to send its goods trucks

When Gadsden signed a frealy inferior quality coal and by there.

with Gea. Santa Anna, thu keeping prices artlacially high. It did this in answer to Mexican leader, on Dec. 30, Some min are criticised be- rclusal by the miners collective 1853, the outeries increased. It cause

production per man has [tunning the colliery to cut was pointed out the people were fallen, compared with last year. prices.

34 cents on paying more than In one Bomlan

"CAPITALIST8" malne, for

for worthless desert: examplo, it fell from 1,565 kilo-

Both rallways and the collery was called a land grab for the grammes (just over one and 1⁄2 were accused in the press of beneft of the railroads metric tons) per miner per day using "capitalist" methods which The treaty met strong opposi- in 1982 to 1,100 kilogrammes might be normal in the West, on in the Senate where lobby- during the first bull of this year, but which were unworthy of a ling by speculators gave it a bad

BELGRADE SUFFERS Socialist society such as reputation. There were objec

itions to furnishing. financial Whatever the merits of the Yugoslavia. dispute, the inhabitants of Bel- Financial difficulties are partly assistance to Santa Anna. But, grade and other towns

equse of the crisis in the by a narrow margin, the treaty are the caus coal mr-Yugoslav coal industry. Bano-was ratified on April 25, 1934. Buffering, Belgrade chants were thronged in Novem-viel, for instance, is over 300,- ber by householders demanding 000,000 dinars in debt to

to what happened the coal they Yugoslav National Bank. orderod,

far and paid for, as Allegations of back as August or September ment at Bacoviel

Those acres of "worthless the desert" have returned over four billion dollars in copper and mismanage other minerals.

for up

Irrigation has converted the

camo

with

has

but which they never received. discussion before the colliary arid desert into agricultural Coal is the staple fuel of Workers Council. According to ones of cotton, citrus fruits, houses in Belgrade, where tem- one allegation the procurement dates, pecans, barley and alfalfa. peratures of minus 10 to minus department had been told to

The purchase, which includes 15 degrees centigrado are en-order urgently eight ball-all or part of eight southern countered in mid-winter.

which bearings

were not oven Arizona counties and six Older

homes have largo Ger- noeded.

southwestern New Mexico, man type stoves using mixture The procurement department became known as an empire of of coal and wood, while modern had the ball-bearings brought in the four "C" Copper, Cattle, blocks are equipped with central by air from abroad at a cost of Cotton and Climate, They sup hoating Bollers which ́consumo 50,000 dinars each. When they port more than 359,000 people. coal or coke

ono claimed them. arrived

Tucson, the area's largest city, no Banovici, which employs 8,000|was an adobe-walled village a Although privata oliizens may enquire in vain for coal from minors-it had 4,200 before it [centiary ago. Today it be a resort shortage does not areat govern produces 4,000 tons of cout a population ment offices which started heat day.

and Basen Douglas ing as soon as the cold weather ·Undez ́ils Present contract are

Important mining centres; come,

Deming aro with the railways, it selle coal to Lordsburg and ze them for 300 afara a ton less headquarters for a thriving live-, To make matters worse, s.

2. 10.

stock gulation was issued probibiling than to other BTS.

and Nogales attract the so in Belgrade of Electate | heaters

is deliberately neglect-many tourists, them, so as to get the extra Bitt All thin working hour, to save current lag th

James Gadsden ever ved for industry.

₤300 Sinai on proft. For never

He did not. to seq. Other cities besides Badgrade Instance on November 23, It de ovens see the initial plans for his failed to lay in stocks for the Hygred only 1 tons of cost to radimont, CORTA TULE writer. In August, Zagreb had the railways and 4,012 tona to died on Christenaar,

quarter of this until 20 any

half a dozen, coal merchants, the]bad to cut down this summer-notion of 170,000opolitan

Ky radiators during way oficials allege that ing. 7. dustry; rapidly oxDANA

only two days lock in hand, the the third quarter of

and 1jubljana lile miro.

At ille bezoning

atooka, bek

indus

cent of what they WOW MEA? same time in 19ke

said; the date did commandet

Ethan

from low

SHIPPING

Waterboat

DOCKS, ETC.

K. Whast... Dock Provident (0) 12.00 Ahal Dock.. Wheelock

LAND, ETC.

HK Land... Humphreys Reply

19.00

went into

last loan, announced

will bo funnelled through the Japan Development STERNER TIMES

Bank to three companies for credit-base by enlarging its portfolio of Government securi- has done. Its recent huge issue

That is what General Motors projects on Kyushu, Kansai and

Chubu. iles. Business réfused to take of $300 million of new capital

The fact that the loan becamo

that means was a recognition of sternor "effective"

may now be drawn On the contrary, the business times ahead, not of easier busi-money

against it.United Press. Icons of the New York City banks fell by $24 million, against a rise of $108 million in the corresponding week last year; they are now $312 million below the year ago level.

cent of IL

PROSPECTS FOR 1954

TICAS.

But not everybody can afford to be a General Motors.

the

ing to contribute to the provi- slon of additional credit for the export of ships and other heavy capital goods by lending more freely to the specialised financing institutións set up by -a number of the industries

concerned.

The UK Chamber of Shipping's tramp shipping rates index figure for November showed n decline of 3,7 points to 73.8 from the October level (basic 1952-100),

China Mail Special.

London Rubber

*Market

Lendon, Dec. 29. The rubber market was quietly steady with No. 1 spot Ray quoted at 174 pence per 13. Pricer.

No. 1 spot Ras Bettlement house term:

Feb.

Match

173-1735

-United Press. NEW YORK MARKET

New York, Dec. 29. Rubber futures today closed. unchanged to ten points lower with, sales of 81 contracts.

In the spot market, dullness "although" shipment offerings were reported "mostly on the high side”. Spot No. 1 Ras were quoted at 20%1⁄2 cents

pound, nominal. closings:--

Compicuously the railroads New York Sugar prevalku

Market

cannot Ono of the railroads' sunshino talkers recently argued 19 Á a bull point for them that can now enter upon a they period of reduced capital ex- 3. In any case, even

penditures whlie continuing to term growth at 3 per cent per realise the benefits from their March

could be assured by post-war annum

May Spot (cons per b. foh Cuba)

Contract No. 4

1.04 0.03 0.10 1800 m 0.05 2200 8.05

if long-

other

improvement pro-

Jan.

New York. Dec. 20. Contract No. 4 (world)

3,300

t

323)

March

3.260

320

May

Dcc.

4,31b

0.64b

3.5ub

1,00

HK latel .. 0.70 84% 1703 0 8.78 money policy and other means gramme.

500 850 (it would require many 30 705 700 70

That does the capital-goods March Da er 30 means besides money policy) 1814

such crude money polleles would industries some harm, without May July 1.25 not necessarily prevent violent Ri Ro

short-term swings above or be low, the rising trend line. Over the past two

UTILITIES

Tram

1.9 1.95 6000

26.20 20.40 200 a 20.40

140

Bar Terry. 13.09

17.03

generi

*x-dock)

necessarily doing the rails' pro- Spot fcents per l. cit NY as much good; they are not feeling very good at the mo ment.

For the utiles, the official C. Laghi

2000 13.00 tione the US economy has and remi-official surveys, fore- 500 13.00 grown at that rate; but the long cast no reduction in 1934 capital 2500 15.99 term growth did not prevent expenditure but Consolidated Light (N) 10.70 10.90 Electric 23.10 3.50 700 @ 39.10 ruinous depresion after 1929, Edison, the utility best known -Telephone

and serious difficulties in some In New York, fiready fore-

In the aftermath sitadows a drop of 11 per cent. other years. INDUSTRIALS

of a defence boom,

siini. In the first work of December Cement

• copiinl ... 18.70.19.10

goods boom, a consumer boom awards of heavy construction STONES, ETC.

contracts were exceptionally Dairy

235 25.30 500 25.16 und an inventory boom

130023.10 all bunched together, 1954 is not high, but only because they

kr5.10 likely

essicat to be the years Whatever the secular trend liao eventually proved to bo, it is a to be that 1954 will be below rather tian,above

I..

COTTONS

Crawford

Wo

Textile

2:30′ 7.35:4800 ek 214

"B.18° 0.20° 1000 @ 8:30 (20

01.10

Exchange Rates

which

Little if any further stimulus can be expected from fast tax

they

aspent

were padded by the inclusion of a huge long-term project for the new taconite processing plant in Minnesota.,

United Press.

Chicago Grain Futures

Chicago, Dea, 29. Pricos per bushel la cents;

Closing Prices Deg. La Dec, 29 Wheat, No. 2, reddantu 2041 n

Spot

March

MAY

Spot Match

Corn, No, 2, yellow,

161

Future

20.60.

20.45

20.50b

United Press,

US Commodity

Markets

New York, Dec. 20.. Leading commodity markets moved higher, along, a wide front with import flems lead. ing the way..

Cocoa

rubber, hides, wool, domestic sugar, copper, ab Teach were "Misionit “the · markete showing wall to good-sized 2003 gaine. Cirulen were milxed; WhoRt showed - relative miracja

HEIMy

+1 <

11871 157-34es, reflecting exporter buying. New York STOWN

and four, of, damúgn: "throligis. [203 ibe, rack $16.190. $14,10h moro temperatures where the United Frees, new crop. Încks adequate mow

protection United, Prism.

[OC_more immediato, nach: encouraging significance, 29006 | May tridty consumption, which had hitherto held up better than any."

other.

major Indicator, showed the ambilet

over

100% son Day non-holiday week U.S. COMMODITY

this

year/

end on a more cheerful

the oboe, has been

PRICE INDEX

•Now' York,{Deb,