1955-06-13 — Page 9

Th

OUTWARD SIGNS OF WEALTH

Madrid. June 12. Spain has thought of a

new way to catch up on the taxpayer reluctant

clare his true income.

to de.

the

From now on... income-tax inspectors will check on "outward signs of wealth dis- played by taxpayers.

un

The ownership of a motorcar yacht, employment of numerous domestic servants, the giving of society fiestas, will all be taken into

account

assessed on a prepared schedule.

Thus, the income-tax authori ties will regard ownership of 20-hp moterear

expenditure

as indicating an

of 30,000 pesetas

£300) year: Possession of a

Yacht will rate as equal

200-ton y

to spending

200,000

£2,000).

pesetas

A horse for riding

or driving in the city—not the country where a horse Fax:rded

as a necessity

in

is

is

ussessed as 8,000 pesetas (8) expenditura. A Tace-horse rates way of

as 18.000 pesetas (180). It is indicative of the

THE CHINA MAIL, MONDAY, JUNE 13, 1955.”

TRADE

Sterling

and

COMMERCE

Convertibility

NEW YORK Some Way Off

STOCK

MARKET

REVIEW

By Elmer Walzer

New York, June 12.

The new Ford Motor Co.

wage contract sent a new

market last week.

3 For

the industrial average reach- ed new high ground for time. It duplicated the fent an Friday.

three straight sessions in Spain that while theMonday through Wednesday ownership ot u motorcar is regarded as denoting wealth, to have two domestic servants in one's home does not count. Only three or more servants come inio

of showing the category wealth.

a

OVER TWO

Each domestic servant aver two is assessed by the Slate as representing 9,000 pesetas (£90). OT 13,000 pesetas (2130) in the ser- vant is male.

measure

THREE IMPORTANT ESSENTIALS

MUST BE SETTLED FIRST

From RONALD BOXALL

London, June 12,

The British Government's policy of working towards buying wave in the stock freer trade and payments was reaffirmed in the Queen's speech at the opening" of Parliament. At the same time in Paris the European finance ministers, were meeting under the chairmanship of Mr R. A. Butler, Chancellor of the Exchequer, to discuss plans that have an important bearing on this policy. Now that the Conservatives have been returned to power with a comfortable majority there is a tendency to assume that convertibility will not be long delayed. It would be over-optimistic, however, to expert this to happen before the end of the year. By then most of the technical details of convertibility should have been worked out and we should know whether measures taken by the British Government to combat inflation have succeeded or not.

ון

Railroad shares fáiled 10 condem this rise and this fact coupled with rumours. f impending margin rise from the current 70 per cent set off con- siderable realising, [11 10% Thursday session.

That little reaction let the

in

i market

stronger position apparently, for it resumed its rise in a more leisurely fashion in the final session of the week. Industrials had made up all the losses and rali nearly, made up

theirs.

The tax inspectors will want

lot of

from explanations citizens whose declared income falls below the income which he estimates after examining these Signics Ex- 'outward signs" terhos) of prosperity.

The

has causeti a furry among the rich and near- rich people of Spain.

taxpayers Some

expressed alarni as to precisely at what point the tax

inspector. looking

than Sales averaged more. fur signs of wealth, would halt

investigations. Would 3,000,000 shares in the first three his nothing be

Sacred

from this sessions. It was the most active inquisition, they asked,

week

one ending since the The Government has soothed on April 22.

their anxiety by ruling that

under no circumstances will an investigation into the private life of the taxpayer be tolera- ted." Society commentators re- ported that husbands were more pleased than their wives by this ruling.

Seme economists are not happy

S economists argue

urgent need is indus- They go on from

about the measure.

to stress that

that

unless

trialisation. inere, Spain's small middle and upper class

pour their class continue to capital into industrial projects, the effect on Spain's cronomy will be harmful. The State, they say, will then have to do it itself a step which it is liable to take inefficiently, ex- with risk of pensively and infation always attendant

EVEN PAMPER

So these economists argue that the Governmer's" policy should be rather to 11'00. and even to pamper these groups of society, be- cause the diffenties in- volved In launching new industries in

ark agrarian

The net result for the week was a substantial gains in in dustrials and moderate declines in the 'two other major groups calls and utilities.

WORRIED

WEEKLY

TEXTILE

MARKETS

on

If the British election had

all any influence at

the timing of convertibility it was on on the political rather than the economic side of the ques- tion. Socialist objections to the abolition of exchange controls

achieved, to be

are

er now than they

الانام

A

Still

CAPITAL IS

NOT MONEY

New York, June 12. The world's biggest chemical company said to day Americans within a decade can expect a 20 to 25 per cent improvement in their living standards and 12,000,000 more Jobs.

Du'

u Pont Nemours and Co. Inc., made this state- mept in a new company booklet entitled "the Story of Creative Capital."

It said the forecast "as- sumes a wide and steady flow of capital into produc- tive enterprise."

SECTION

Du Pont estimated total needs by 1956 will amount to $580,000,000,000, This Is equal to a 314,000 invest- went of creative capital for each family unit in the U.S.

The booklet defined capital not as money but as the tools of production.

United Press.

HONGKONG

STOCK EXCHANGE

Page

LONDON STOCK MARKETS

Investors Ignore Implications

Of The Strikes

From Our Own Correspondent

London, June. 12.

It has been another week of spectacular advance on the London Stock Exchange. Profit- taking in the last two days clipped some of the gains but most first class industrial shares-on which demand has been largely concentrated- finished well ahead on the week..

•

The Prime Minister's broadcast over the week-end warning of serious economic implica- - tions of the railway strike subdued the market on Monday. But Tuesday brought some sort of hope for an early settlement, however, and the Financial Times index of industrial ordinary shares spurted 4.5 on that day and a further 3.7 on Wednesday when it closed at an all-time high of 211.3.

After that prices lost a Mile|issues

not far behind. Gains

off the top but there was still ranged to several shillings.

liberal sprinkling of plus sign in the list at the close,

..

ex-

Gilt-edged were quiet by eom- parison but showed steady im- Investors still appear to be proyement on investment sup- more influenced by the Censer- port. vative election victory, the recent. “American demand

Oils again shared the To: high-grade British

periences of industrial equities, industrial share and the prosperity of in-orging ahead on Tuesday and dustry generally than they are Wednesday, first folder the lead by the economic

of British Petrol and then of consequences Shell and falling back on Thurs-

She!

But as with day and Friday, serious though these are.

industrial shares the week-end

(From Our Correspondent) of the railway and dock strikes

Business done on the Hong- Stock Exchange this kong

$359,- morning

amounted

to 135.10.-Noon quotations and two. the morning's transactions:

SHARES BUYERS SELLERS SALES

BANKS

HK Bank 1070 1080 21 1580

East Asia... *** INSURANCES

Union ..... 940 Lombard .... 50+ 2

It would probably not be

in itself very risky operation to combine these two rates and for declare sterling convertible "ron-residents"

of the sterling area. But could the situation be held for long in which foreign- to spend are not likely to cause a delayers had the right now that the Conservatives are pounds freely on American goods

of safety entrenched in power for while residents the sterling Lanother four or five years. arm were still compelled to practise strict "dollar economy?" But the economic problems If not Britain might be pushed

with connected

convertibility

into convertibility in its fullest remain as large as ever. Three

sense long before sterling was New York, June 12.

have High point of the week essential conditions

The sterling ready for it. textile trade area's central in the cotton

gold and dolar

SLOW ADVANCE still not Large Wall Street worried about the

must The policy, therefore automobile and steel industries came on Friday with news of reserves

still be one of slow advance. with their pay increases in the the substantial tarif reduc-enough-in fact they are small- were at this

will come Other auto companies tions to be made in the im- time last year. And little or no And the next move were expected to settle peace port of carded goods from progress has been made on the very shortly-in fact on July 1 Payments condition Ford

the when the European second fully with

that fully concessions. Steel

United

is due companies Japan.

should

to be renewed adopt Union were said to be lacing tough

Prior to that time, business "good creditor policies though for a further year. For at their the European to hope there Paris meeting mands, but

anti- market men manus

was quiet and mostly routine, there is reason

There has at finance ministers decided that in cipated no strikes as the situa Selective buying came in spurts will be shortly,

and future the ratio of gold pay-DOCKS, ETC.. twills, least been no backsliding tion strikeless labour settle-

broadcloths, jeans,

ments to credit in monthly EPU ments in leading industries -n

settlements should be 75-25 in- was seen as favourable since it lawns and print cloths. Prices that in itself is a hopeful sign

stead of the present 50-50. continuance record held Arm in most categories. production. Also it meant infa-

This is one more stage in the A mixed first reaction greeted

dis-adual

"hardening" of the the tariff reduction, announced lion.

Union which has been going on LAND, ETC.

West since..

European

LUK Hotel When selling hit the market by the State Department, and

HK Land their advance countries started on Thursday, the best gainers to become effective on Septem-

Humphreys towards

In all convertibility.

RTS of the week suffered the widest ber 10.

the

Realty probability it will also be setbacks,

last stage, for when sterting

UTILITIES

Tram

cards.

meant

Business

labour after

of

de

also

Its record. Construction

sharply higher-a record for the first five months of 1955.

land, such as Spain, are of a nature to make such in- vestment unattractive unless substantial profits are in sight for years. The Falange party. Spain's only political party, which has the put heavy pressure on authorities to take these and other tax measures against the well-to-do, takes the view that great discontent is caused in a -poor nation like Spain by the sight of heavy personal expen- dilure

by a small on luxuries sector of society.

WDS at least a few

States

the

the

MOST DISAPPOINTING Progress has been most

however, on appointing third condition-the elimination of inflation at home, Since con- vertibility was last in the news the

Government British

has been compelled

raise the bank rate on two separate oc- and other major European cur casions and to place" new

rencies become convertible EPU strictions on hire purchase. The will be wound up and its place result is not yet clear but it is taken by a Epropean fund from significant that the City of which countries whose cur-

has started talking rencies remain temporarily carded fabrics brought expres about the possibility of new dis-convertible will be able to draw short-term credit to meet their all balance of payments difficulties.

Others

REACTION AWAITED

London

re-

not

exports in

Exchange

more

A

Rates

-

SHIPPING

Waterboat .. 29. Asia Nov.

30C.

7913

K Whart Dock ...... 25.20 Provident (0) 13.49 S'ha Dock 14" Wheelock...

Star Ferry

$ 240

7.70 1000 m. 7.70

4500 79%

16.60 16.80 2500 14.00 .. GBA GS 400

0.10

1006 6 6.10

2.00 2.1212

23.10 349 y 23,10

2000 in 2 147"

Y mau Ferry 119 120 130 110 C. Ligne (0) 2020 20.30

C. LE (N) 15.90 16 1000 15 Electric

.... 39

40 SUB

Macao Elec. 10.00 11.10 Telephone ... 331 3 INDUSTRIALS

Coment

Rope

STORES, ETC.

Dairy Watson

Conserva-ark

Africar, gold

35 POINTS ABOVE setback only partially reduced

previous

In

markets

South The railway strike began only

shares registered a days after the tives victory was confirmed. Yetmarked Improvement on Thurs- since then the Financial Times day after earlier dullness; tens on the reducign in index has advanced nearly 14 were firm pants. At Thursday's close it the Ceylon export tax; rubber

shares. was no less than. 35 points above share went ahead on the the year's low of mid-March, strength of the commodity; and coppers advanced strongly on + Steel shares led last week's investment demand encouraged. advance with capital goods," by the recent firmness of the textiles, stores and hire-purchase finetal price,"

EVERE

LINES

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#5%

500 en 7.10

24.60

4.825

COTTONS

182 MISCELLANEOUS 7.07 Allied

NEW COMPANY?

One viewpoint was that it the door wider to At the highs the industrial would open list registered its best since the Japanese competition.

withheld comment altogether week ended March 25, and the

text of the 3,000,000-average pace for more until the whole than half the week was the first agreement can be analysed. time that average has been hit

Cuts of about 25 per cent on since the week ended March 11.

inflationary moves. news Icatured the sons of surprise from executives

One thing is certain in bright side, although wild cat who thought the cuts would be

less.

Convertibility will Buying offices expressed this. strikes cut automobile output.

eagerness to Scan the new come until the British authori- that Britain Steel production approached schedules to determine which ties are satisfied

her present articles would be worthy of im- cán, hold at least

Business was done in the local unofficial exchange market this proving, either for the first time, position in the export race.

morning at the following ratest- are 15 Unfortunately we ur in larger quantities.

U.S. dollar (par 31).........

5.80 1543 to do this sterling notes (per 21) sure of being able. 'National income set a new

than we were a year ago. Since Indonesian rupiah (per 100) high, So. did gross

national

Lave Slum ticals, (per 100) Political reaction in Washing- then wages in Britain product. Secretary of Commerce

ton also was awaited. Since the risen another five per cent and Singapore (Strails) Mr Sinclair Weeks said that rate on fire cotton goods were our

ability to compete with Indo-China plastres iper 100) with peace on the key in hardly touched, New England rival exporters has been further dustries, it is expected that 1955 lawomarkers were expected impaired by the dock and rail-

year be "happy"

aver the results way strikes. True, will be the best business ever, United Press,

Reaction of southern-state the first quarter of this year

ues-brought eight per cent, Icwnmakers was another

tarlit cuts, imports than they did in 1930, biggest tas tion. The

this favourable situa-. market analysts pointed out, but will are scheduled for cotton duck, tion continue or improve? denims, drills, ginghams and

An article in the current issue and Cambridge print cloths, on which produc-

Economic Bulletin shows optimistic it would be to hope that our balance of payments Settlement of the Ford Motor difficulties will be solved for us Company-union differences was favourable movement

by 3, Folange insisted that a toughy Brokers today quoted the heartening to producers At

For, the terms of trade hand against the rich was right following stock prices:

industrial cotton grey policy and not one of gentle

the says, in order to match expected Opening goods. They

import volume of increase in persuasion."

1954 cent between The Government

agreement accepted Batu Lintang Rubber...... 31.52

per seven Falange's view and hence the British Borneo Petroletan

pattern with other manufacand 1955-and as the article Synd.

... 15/8

and that buying of in points out, this

not unlikely new measures to check

Consolidated. Th Smelter reluctant taxpayers.

ord.

32/6 dustrial textiles will be Bub-the inder of export purchase 31.67 Fraser & Neave ord...........

stantial for the fourth quarter, ing power would have to average Fraser & Nerve 7 pc.

$4.15

116 over the whole of the Last cum pret Hongkong & Shengtial Bank $300 Spinners reported a sporadic three-quarters of 1955. That is

7/9 Honkone Tin

demand fer yarns, with weaving to say in relation to the first $1.60

of trade either terms numbers showing the best call, quarter $2.05 $3.33 ed in the overall, however, buyers would have to improve by eight $1.37

a mixture of the were slow to get too far out be.per cent or

of the turo, $2.35 xd cause of the nearness

mill vacation and mid-year

-perlod.- inventory taking 177240 $13.50 United Press, #11 $2.06 -China Mall Special.

It

w39 Falange pressure which caused Parliament, in 1954. 20

draft law reject 11.

the Minister of presented by Finance, in which every effort was made to induce taxpayers to invest money in prochictive state or industrial Investments

the

Some

" POLITICAL MOTIVES

Behind Falange's "soak rich" policy lle, of course, political motives. anti-regime eireles have taken the proposal of General

Franco to restore the Monarchy as grounds to argue that the Spanish clock will be turned back to the davn when Spain was a very comfortable place for a person of wealth. Falange

is anxious to

down these arguments

on

knock and. to

Singapore

Stock Markettion new is largely concentrated of the London

Kempas

Singapore, June 13.

Lainas Rubber Estates Malayan Breweries New Berandah Bubber Petaling Tin

Rafes Hotel Singapore Cold Storage South British Insurance Stralis Trading Straits Steamship United Engineers ord Welma BrOK.

1:10

show that the present regime is The Bank Of England

in the vanguard in any move to

reduce class privileges.

Meanwhile since income-tax proper, as distinct from the tax-

on

salaries, begins at an un earned

year and

then

of over 100,000

pesetas (1,000)

only at 2.50 per cent, commentators here argue that

Statement

the southern states.

wide

Surers

become the

The Bank Of France Statement

Trazion

Paris June 12. The Bank of France statement London June 12 For the weekends Fine R gods The Bank of England state-as follows: ment for the week ended June

tiated cold holding 8 reads as follows:

Total other currencies Sterling 1,776,678,5 Sight balance abroad 16.43 374 Advance to Currency

Slakallication 327,870,737 Toll Bus discounted 279,241,629 Bank notes in cros 340 881923

39,091 309, Current secounts and 143

deposite United Press.

Note: circulation

Public deposİ13: Private deposits Govenment securities

Beceipty

the taxpayers scarcely seem liable to be crushed, even when the regulation conceming the other securities

"nutward"". signs of wealth" IN PALO applied China Max Special.

how From the word "GO".

in

an

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Already, In fact, the pound is t convertible for many practical 201.231,581 purposes. Thanks to the British 12274.6632 authorities' decision to support 133,318,047.008 the rate for transferable, sterl 196,000,000.005ing foreigners who earn pounds BY 320 in trade with the sterling area may now exbarge them? Into (2.099 dollars at a discount of sess than one per cent on the official exchange rate;

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