1955-04-11 — Page 9

THE

CHINA MAIL, MONDAY, APRIL 11, 1955.

Page

TRADE and COMMERCE SECTION

BANK OF ENGLAND ADVICE TO TREASURY

Early Election Date

election.

Announcement

Or Lose Millions"

From Paul Einzing

London, Apr. 10.

It now seems certain that the leaders of the Con- servative Party have decided in favour of an early general And there is reason to believe that their decision was largely influenced by expert advice given by the Bank of England to the Treasury emphasising the need for, reduc- ing the period of suspense that is bound to continue until the election results become known,

the For even though the chances seem to favour Government they do not favour it sufficiently distinctly to rule out the possibility of a. Socialist victory.

Record Mexican Oil Companies Must Private

Cotton Crop

Wankington. Apr, 14.

An all-time record cotton Crop, perhaps exceeding 2,000,000 bales

prospect for Mexico this TONE.. the Agriculture

Saens reported today.

would represent a

increase over Mexico 1954-55 drop of 1.780,000 bales. - In turn, that was double the pIT- vious year.-United Press.

N.Y. COTTON

MARKET

REVIEW

By William Plunkett

Find Over

£50,000 Million Next 20 Years

By SYDNEY GAMPELL

Mr Gempell, the well-known financial writer in this article answers in detail"many of the complicated aspects of the oil industry and how it is financed. Another article on the subject appeared in the China Man (page 8) last Wednesday.

Investment Inadequate

Aust.-CAF Trade Talks Soon

Salisbury, Apr, 11.. Paris, Apr. 10.

Talks will begin soon be Private investment in some British and French Australian Government and tween representatives of the territories re the

overseas

of the

Government mains inadequate, the Or Central African Federa. ganisation for European tion on a trade agreement Economic Co-operation between the two countries. (OEEC) said in a report.. A radio agreement at today.

present cxists between Aus- tralia and Southern Rhodesia, But A survey by the organisation one of the Federal States. found substantial local capital it will automatically' lapse on had been forthcoming in the July 1, when the new Federal most rapidly developing terri-Customs iarills. сото into tories such the Belgian | operation. Congo

and British Central The Federal Government is Africa. But generally there was at present negotiating a trade no great Influx of American | agreement with South Africa, capital or parent nations. the Federation's southern

neighbour

not

with South Africa

from Centralcipal imports

London, Apr. 10. One thing overrides the current controversy about oil company profits. Over the next twenty years or so the world oil industry, at a very con- servative estimate, will have to find something like

The survey said the obstacle Mr Peter Knight, "Australian £50,000 million for capital expenditure, and the in the way of more rapid ex-Trade Commissioner in Salis New York, Apr. 10. Cotton prices pulled in only place from which it can be found is retained pansion was not merely Bnan bury, said in an interview that

cial in character. Some attempts talks with Australia were opposite directions this week profits. There are no capital markets in the world to speed up economic develop likely to begin until the new with new crop months con- that can provide that kind of money.

ment had encountered setbacks agreement because sufficient allowance was had beer concluded. tinued to lose headway.

technical If, for example, Royal Dutch makes its not made for natural At Thursday's. close the list

Australia's ical dificulties. or sociological ruled 8 points higher to 30 rumoured rights issue (an issue of new shares to or

qverseas' territories had their points lower, or up 40 cents to

end their dependence on It is therefore no wonder the off $1.50 a bale compared with present holders at something below the current own dificulties for atta

market price) the purpose will be to broaden the mand for one or two Bank of England views with the preceding werk,

export A good start of the interest capital structure rather than to raise new money, products. In many cases these concern prospects of a prolong-was given to pre-holiday even-

are considerable and not amea- longer the suspense continues/e suspense. This is not a partying up and adjustments in the The amount of cash that can be raised in that orable to modern technology."

May delivery as traders locked similar ways is a drop in the bucket of what is

The survey noted that in- matter,

Should the general election ahead to first notice day. The

needed. Britain's £1,200 million railway pro dustrialisation was especially open contracts in May apprO-

where the bring a Socialist government it ximated 660,000 sales as the gramme, involving 80 million a year, is chicken-n would not be to the advantage week closed of that governant or of the Resistance developed cund feed in comparison with the capital needs of world rapidly country to be left with a de- the 3312 cent level for spot May: oil. pleted gold reserve. It is of i-reflecting buying

credited

of

VIEW'S WITH. CONCERN

Such a possibility is bound to If the interval is too short remain very much in the minds the damage cannot be too heavy NEW YORK

YORK of those people whore attitude But if it is six months or more is able to infuence the ten the Treasury is Lable to lose dency of sterling. That is why substantial amounts of goid.” the Bank of England, charged with the guardianship

terling, is gravely concerned about the effects of prolonged uncertainty.

The view is held that the the more gold the Treasury is Ekely to lose between now and polling day.

STOCK

MARKET

REVIEW

By Joseph W. Michalski

There are three distinct ways in which sterling is exposed to adverse pressure as a result of fears of the advent of a Socialist

government,

BLY

New York, Apr. 10... POLITICALLY IMPOSSIBLE -Railroad shares moved to; In the first place it is poli- new high ground in almost tically impossible for any EOV

adopt unpopular 25 years on the stock crnment.

measures on the eve of a general election even if such measures

market this week.

Gains in the rails ranged to more than 2 points. Industrials abo met demand. They finished the week less than 2 points from their all-time highs. The rise on the week added more than

to

terest to all corerned to cut textile mills, shippers and spot. short the period of uncertainty. firms, the latter against sales of

Quite possibly if the suspense the new crop months, presun

hedge positions were prolcaged by the autuma aly to transitr by that time conditions would forward deteriorate to such in extent

•

1,500,000.000 in valuations to actually increased in March some decision in favour of an' curly position on a subsidy, domestic ergy is expected to rise still Miche Eastern pipelines to Sidon

ct

elcction.

the list.

The market advanced in three of the four trading sessions this week, on Monday, prices receded slightly under some mild profit-is necessary for the strengthening The Bank Of England taking

The list made its best show. ing on Friday when the rale snapped out of their current bethargy, the demand for carriers helped other departments.

£25 million.

in existing conditions of inflated consumer demand at home reductions in credit facilities are an evil that

of sterling

EVERETT

to

de-

are

are tobacco and asbestos. Her principal ex- ports to Central Africa wheat and

makic preserved though there is also a market for builder's hardware, sports equipment and agricultural machinery China Mail Special.

OFFICIAL

LINES

TIN STOCKS was growing too for all the additional

Singapore, Aot, 10. labour

to be absorbed by agri Stocks of tin metal and tir culture.

concentrates in Singapore and It found prospects generally Malaya at the end of February World demand for energy Shell is a Netherlands registra-favourable for an expansion of amounted to 6,797 tops-148 has risen about 2-1/3 times tion, and that oil industry ex+

exports from overseas territories tous less than at the end of over the past thirty years. As penditure is worldwide to.an production

of coal has risen extent that applies to very few in the immediate future, though January, according to

in the case of certain products, statistics released. only slightly, oil has been re- other UK-registered companies, such as cotton And vegetable

Production of tia coricen- quired to meet most of the in- the comparison is still striking. oila, stocks held by the United trates during the month of UPPERMOST INTEREST

crease, so that oil consumption

ADEN OPENED

States change this picture, February totalled 4,792 tons, the free world is already But uppermost interest con-1

As further indications of size, China Mail Special. cessary. To a large degree this. are necessary for the defence of that drastic measures would be

France-Presse. starting. It is true that the could be avoided by arranging tinued to centre on the question well in excess of 600 million BP's Aden rennery, opened last bank rate was raised in March for a general eletion for the of an export subsidy on the tons a year.

year; cost £45 million. Tankera. to 41% per cent. But there was earliest possible date. The sooner new crop cotton. While foreign Over the next twenty years cost about five times as much as no drastic "credit squeeze.

it is cut of the way the better interests kept, pressing Washing or so the world, demand for they did before the war. The dead, the amount of bank

ikans

a clarification of its for all ecorerned Hence the ton for

faster. With coal production and Banias cost £80 and £40 wade Sources tinderstood

static

of stagnant, oil may have

million respectively. Washington official circles in to provide an even bigger share

Oil production in a new feli dicated a beller that the use of of the total increase. At some at Zubair, Iraq, involved an ex- subsidies to stimulate lagging date in the future atomic energy penditure of 18 miles over a export sales of raw cotton would may supplant the "fossil fuels perind of six years before pro Statement

not violato reciprocal trade coal and oil, but over the next duction began in 1951. One com The sooner the Governmen!--

agreements with other nations.

twenty years there is no reason pany spent £6 million in Iraq either. the present one or the

London dispatches said textile able prospect that it can do London, Apr. 10. succeeding government is in G

willout ficting my 03. At The Bank of England state-trade uncertainty ΟΥΕΣ

the more than relieve the prospec- Basrah, £18 million was spent position to adopt the unpopulerment for the week ended April subsky question, existed not tive over-demand for oil

before any oil was exported intusures the better. The lenger 6, read as follows:

only in Britain, but elsewhere US COSTS HIGHER

At Waira exploration cost £10 these measures are defined the

Sterling in the artificial reduction in the Marketing on extra ton of difficult will be the task Note in circulation ...

million before oil, was located. oil in US price of cotton,

UF in the

been estimated for the

in office Publie deposits government after

Private deposita elcetion

Some buying was influenced to involve, capital expenditure in Canada thirty years the

Government accurities

of by rumours

discussions of up to £10. On that basis, spent is exploration, 131 wells PROLONGED

FEARS

Other securities

34.213.912 between merchants, mills ced the

additional 600 million tons were drilled to a total depth of Morcover, prolonged fears of Receipts

Government

seeking of world demand in say 1975 160 miles before of was dis- officials, Socialist government are lik:ly

the release of Government will have involved a capital ex- covered at Ledu. induce many foreign holders

I short, this industry which owned cotton of needed

penditure of £24,000 million. quality sferable" sterling to sell

in exchange, if it could be Costs in the US are higher than has long been accustomed to arranged,

Ciminish in

LIK'S

Get thinking in tens of millions of

and would

E' now has to think in han tenders on the futures contract in any case the £24,000 million. and

strengthen that market is only one element. Almost the dreds of millions. Beface long it

of the capacity

"now will be thousands of millions, which has lagged behind valties whole Paris, Apr. 10.

of and some

themed there is only one source existing, of France state in the spot market.-United

Press

capacity to be created during from which they can be found. ment for the

the next twenty years, will also week ended March 31, reads as follows:-

have required replacement by 1975; much of it will have re- Total gold holding..

more than Total other currencice Sight balance abroad

4

more

As measured by the averages, the industrials closed with gain of 4.38 to 418.20; the rails moved up 3.35 to 154.42; and the utilities were down 0.13 to 03.78.

The general market. average was 1.80 to 150.15.

up Market news

was generally

on the quiet side. A few indivi- dual issues were bolstered by Savourable

corporate develop-

ments.

FEW BACKWARD On the New York Stock Ex-

ก

to

of

out their holdings.

At the beginning of Marth My Butler instructed the Bank of England to support the rates c transferable sterling in the New

change, few recent strong ravourites were backward. G York market. As a result of

eral Dynamics, the first bullde

1t

nts

was

1

1,723,749.928

15,802,815 338,071.342 308.441,627

Rate

20,021,695 8.1

United Press.

The

Bank Of France

Statement

* The Bank

the

Bas

SOLITICES,

201501135 Rubber Exports quired replacement

11.542,835,000

88,201,479,495

195,000,000,000

such efficial optrations the rates have appreciated. of an atemic submarine,, ran into

*Spokesmen the Labour profit-taking. ema

Party repeatedly expressed their down 5%2

to $70%. Bath points Iron Works, a recent strong stock disapproval of this policy. It is on reports that it was going to reasonable to assume that should build an atomic destroyer, later Mr. Gaitske become one? meer denied by the Navy Deparment, the Chancellor of the Exchequer slumped 4 points to $57%. Bab-in a Labour government helal discountedt 1,171.537429,870 pore se all countries during the

This migh: cock and Wilcox slumped 8 would discontinue it.

mean that transferable sterling points to $102.

Santa Fe was the bellwether would depreciate. Many holders in the carriers. It finished the are Eikely to be inclined there- week with a gain of 2 points to fore to be on the safe side by their transferable ster- selling $143,

Bethlehem Steel was the staring while the going is good.

WOULD COST MILLIONS performer in its group with an bprovement of 3/2 points to

In order to prevent a sharp

$138% Oil shares were general fail of the rate the Bank of

by steady.

of dollars

Do

iz

means

ot

England will have to spend Of the 1,421 tesures traded last many millions

796 closed higher, 459 supporting operations.

Last

but by ved lower and 168 held m-

least foreign changed. New highs were ride British and sterling area goods

importers tered

by 188. issues and 32 made

may want to defer their pur- Dew "lows,

Baldwin-Lima-Hamilton led chases until after the general the market in turnover in the election for fear that in case of week A total of 132,800 hares a Socialist victory sterling would changed hands. The stock sell- depreciate.

ing ex-dividend, finished with a 1033 Press,

of % to $19%-United

Peruvian Ore

For Europe

Lima, Apr 10,

Peru is campaigning. to sell ite iron ore at the European mar

in EPU Advinced

Singapore, Apr. 10. to CUTTA Stablz. Fund

Exports of rubber from Singa-

Bank note in circula-

month of March, 1955, amounted tizm ....... 2,583.754,127-135 to 93,374 tons, according to pre- Current accounts and

deporti

122,740,567.735 liminary statistics issued here.- -United Pres. France-Presse,

Settlement Day

Bargains

From Our Own Correspondent

London, Apr. 10.

The predominating influence on the London

onca.

Lancashire Laying Off 18,000 Weavers

Since the war the industry's worldwide capital expenditure been well over £12,000 bus million, and accelerating year to year. In 1954 the US oil industry's capital expendi-

Manchester, Apr. 10. ture equalled 21,650 million, which implies about

More than 18,000 Lancashire £2,500 million for the free world in- cotton weavers in the centre of Britain's textile industry, will cluding the US.

By and large, if the scope of after Easter because of lack of be laid out for about & week! the whole industry has

it was announced "today. work, double, then annual capital The The investment of 22,500 million Manufacturers Association sald cotton Spinners and will have to double too-to say 30,000 looms in 11

25,000 million before allowing

to

The

weaving

for any further rise in costs. It sheds will be stopped after the is to

be hoped that the normal Easter Holiday. in costs will slow down.

announcement said most closed an extra considering the

secular infla mills will be tion

caused by the worldwide oficials said spinning section political demand for full em-

stoppage may be just as ployment, only a very daring or

very reckless man would expect It to stop completely or to 75 NO, STOP-GO METHODS Substantially, the money has

plies, expenditure has to be met

A depreciation of sterling stock markets throughout the week was the growverse would mean that it would costing, optimism about the Conservative chances in less doflars to buy the same British goods. Any firm which the general election engendered by the strengthen to be found year in year out. the depreciation would in that ed position which emerged from the county To maintain reserves and sup bought its British goods before ease find itself at a disadvantage council elections. Its bolstering effect balanced out of current earnings what in competition with its rival the quietness due to the absence of the national over the short-term supply who bought the same goods much

newspapers for the second successive week, cheaper after the depreciation.

1949 EFFECT In 1949 when

thefidence in a Conservative victory

a deprecia-

This was manifest * as

demand situation may When the market is closely balanced and profits are high i

easier when temporary over-

serious" but figures are not yet leaders feel the lack of available. Employers and union textile orders may be the most serious since the industry, slump was at its worst three years ago.

The shortage of work in the industry is emphasised by its re- cat request that the Govern ment impose measures to com- bol heavy imports of foreign from Japan-United Press, cotton cloth and yarn notably

EXPORTS

kels, so as to balance a recent tion of sterling was anticipated increase in buying on Tuesday, with an early upsurge whose supply reduces profis It is decrease in experts to the United this consideration induces many settlement day bargains marked highest levels however did not harder. But that to be done U.S. RAW COTTON

foreign importers to cancel their were 8,750 agalest 7,583 seven hold. States.

Within the next four days, the orders or at any rate to deter days earlier. first Peruvian iron cargo da due payment for the goods in the The end of the week, how in a west German port, on board hope that less dollars or other ever,

#.

Engineering shares

more or less

Wore

-only-Try on for-size, in -)

consistently: It cannot be done by stop-go

1951

New York, Apr. 10.

cotton Exportam by "des-

saw a tendency to take popular and declines....

53 capital expenditure by the ship that caned from the port foreign currency would pronts and boys were holding temporary. et Sen Juan This mineral eventually be needed for making off.

On the strength of hopes that two major non-US oll comination as reported in bales by the New York Cotton Exchange sterling

nts. The git-edged business was there would be seller for beer pantes, the Royal Dutch Shell for the 1834-35 Sesoon to April payments. comes from the rich Biancona the same fielda and it. it proves safistes Bhould this experience repeat

cat routine with starling very firm in the budget and income tax group and British Petroleum, tory, it will flow into Germany, Itself it would mean that the though it is too early to estimate there wa

in all round was about £750 million. That were as followsr effects of Chancellor advance in breweries. Face and Britain, as soon as balance of payments would go the

so equivalent to 24 per cent of Continent negotiations through the Marvery much against this coun- Buller's measures are the Among Kamis, Free State total gooks investment by all ment cona Mining Co., in San Fran, try and the sterling area be bilapre of frais, y

Geduld continued to be sold on Uegisters companies in the Canada ciaco, California, are completed tween now and the general Nationaliser steels reflected account of vague tale of water perlock Allowing

|must "harply, the growing con-"in the mines-

United Press.

́election.

that the

Barna

EVERETT ORIENT LINE

Fast regular freight refrigerator-

to Korea, Јарап,

passenger

service

Malaya, Chittagong.

Philippines, Indo-China, Slam, Rangoon, Calcutta

"LENEVERETT"

Arrives

Sails

and

*

Apr. 24 from Manila, Apr. 25 for Singapore,

Rangoon, Calcutta,

“REBEVERETT"

Arrives

Balls

Chittagong

Apr. 26, from Singapore, Apr, 26 for Kobe & Yokohama, (Accepting cargo for 'transhipment Hobe/Pusan and Kobe/Okinawa)**

EVERETT STAR LINE

Fast regular freight - refrigerator" servise Japan, Malaya, Colombo, Bombay, Karachi and Persian Gulf. (Bubjact, to inducement for direct call Koria)- "THAI"

Arrives Saila

Apr, 17 from Singapore,

Apr. 17 for Kobe & Yokohama.

"STAR ARCTURUS"

Arrives

Sails

An, 19 from Japan.

Apr, 20 for Singapore, Fort Swet

tenham, Colombo, Bombay, Karachi Khorramshahr, Basrah, Kuwait & Bahrein, (LIMITED FASSENGER ACCOMMODATION) (Accepting, cargo for franshipment Kobe/Fussu and Kobe/Okinawa);

-EVERETT STEAMSHIP CORPORATION 5/A-

(thcorporated}} in the Republic of Panama,

fitar with Lamited Liabile) an

Chinese Department: Telephana 28293, Queen's Building, Telephone 31206,

MESSAGERIES MARITIMES

P.O. Box 53 - Queen' a Building To: 25661-

FAST PASSENGER/FREIGHT SERVICE Ce

selling Apr.- 9th VIETNAM”

sailing May 20th "CAMBODGE"

FAST. FREIGHT SERVÍCE

WMTEHTNAM” PEIHO”.

sailing Apr 240) sailing May 12th