1955-08-29 — Page 9

.

THE CHINA MAIL, MONDAY, AUGUST 29, 1955.

TRADE and

COMMERCE SECTION

ROOT OF INFLATIONARY TROUBLES

N.Y. COTTON CANADIAN Wage Rates Rose By Over

MARKET REVIEW

By William T. Plunkett

new

PACIFIC RAILWAY

Montreal, Aug. 28,--

of

The bäst polity Norris Roy Crump, the boss of the Canadian Pacifle Hallway,

he cnt summed up In a few sentences:

New York, Aug. 28. Cotton futures this past week climaxed a series of rallies and declines with prices down as much 24 Railroads are more needed than ever before - $1.20 a bale and the early today, 1956 deliveries at seasonal especially in Conado, which is expanding geographically ns jowa,

well as industrially. Their hasle sirength is low-cost ihovement of large volume in all terrains

Al Friday's close the list ruled 5 to 26 points, or 25 la 125 centa a bale Jower than the preceding week.

4 Million

A Week

In First Seven Months

From Ronald Boxall

·

London, Aug. 28.

News that wage rates in Britain rose by £4.2 million à week in the first seven months of this year leaves no doubt where the root of the present inflationary trouble lies.

Unfortunately no relief is yet in sight. If the present and in all weather. Their main trend continues wages and salaries will rise this year by 11 per

job now to obtain the freedom with which to exploit those tul- vantages

Inability

Mr Crump, who was elected market of the maintain mid-week rullien was

President of the CPR carly in coupled with continuing

May, has been in the railroad un- certainty over how the Govern~

the age of 10, business stuce when he went to work for the nient surplus of raw cotion will

company as a muchinist's ap- be tilsposed of ultimately, and

prentice. whether

reconvened Today he bosser an empire, Congress wili enæet legislation

company.

only

crops.

the

A mid-week show of firmness in new crop months reflected # rebrement of speculative Interests

the Oct.-Dec. deliveries when a leading spot firm became a buyer of these

cent or more.

་

But production is rising at only half that. rate, so a further rise in industry's labour costs of something more than four per cent seems inevitable.

New

Type Of wage-Induced inflation." selfperpetuating.

Synthetic Rubber

Ecohontists have a lerin for Clearly then, something must ille present siluniloh, It is be done.

The But what? Anderswer, according to one of Bri- For lain's bavi known eton.cnle when even there is a significant writers is that there must be a rise in the cost of living (as | fundamental re-thinking of the there is ofter bach new round underlying problem.

ut wage incrcuses) organised Inbout demands and gets- more pay to offset it. And so on and so on.

Writing in the current issue

to control productity and pos-operates 17.000 route-miles of sibly lower supports on future railway-making it the second longest rollway system in the Amerie but also a chain of

of the National Provincial Bank hotels in rearts across Canada.

Review, Slr Oscar Hobson says In addition, the CHP has

lime

may well be approaching feet of passenger and freight

But the vast number of my indeed be close at hand Akron, Aug. 28. vessels in foreign service on the

when political leaders will the west find ling Atlantic

The Firestone Tyre and people have no such means of

prolecting themselves from the have to trinke the choke- cost of Canada and Alaska a network of air routes reaching Rubber Company has never-rising prices. They are either full employment or

Aushboiced that it has in "pilot the people who work to Peru. Hongkong and

for a stile pound and a stable cost. have no trade of living. They new story and who

cannot have tralia, natim-wide express and plant production" communication operations, and a

fessional men like doctors and tracks, it has for advertised which promises to replace lawyers who cannot raise their fast-growing fleet of road-haul type of synthetic rubber union to fight for them; pro- both."

dilemina, he points out, truck fees every time the cost of Betf us the "world's greatest natural rubber in

is a fundamentally falsc travel system."-United Press,

"The Ilving goes up; and the host of one.

cholce is not be- elderly people who are living tween stabilily and single 'Tull off the proceeds of fixed interest employment' investments.

months against sales, at around

10,000 balts, mostly in the March delivery.

The advantages gained then quickly melted with the re- uncertainty about the neved surplus disposal and the general- ly favourable encouragement of the crop news.

Proximity of the market to the Government luan level was

steudying another

influence. December delivery closed the week at 33.68 cents a pound, Technicians pointed out that a the ten spot markets, the average price was 33.83 cents u pound.-United Press.

US COTTON J

MAY DIP

SLIGHTLY

Washington, Aug. 28.

The Agriculture Depart ment said today the US ent-

US COST OF LIVING INDEX

assuring

wilge

tyres.

а

In making the announcement, the

Firestone Clairmen, said that "for tivo years Firestone has had

pilot plant in production more than half a million tyre tests have been completed."

Falls Flat

But the

PHILIPPINE MERCHANT

MARINE

Manila. Aür. 26. The Philippine Congress has appropilàted 106,000,- 000, pesos to be spent burr five years with the öbject of crèàding an over- seas merchant maride.

The first year's outlay of 20,000,000 peno ll be used for the construction or purchase of ships for resale, lease, or chartër, to Privatb Individuals er ebmpanilex,

Learts may be granted up to 75 per cent of the cost

newly of

acquired bela. Thoome from this source will be lax-exempt for a period of ten years,

The funds arc to be administered by the Gov- ernment's National DC- velopment Company, and the benefits are limited to Filipino citizens. Chia Mail Special,

HONGKONG

·

STOCK EXCHANGE

(From Our Correspondent)

Page

London Market

Suffering Credit "Squeeze' Pain

From Our Own Correspondent

London, Aug. 28.

Adjustment to the new credit "squeeze" condi- tions is proving a painful process for the London stock market. Small investors have left the run- ning almost entirely to the professional operators and last week's big price swings were therefore out of proportion to the amount of shares actually changing hands.

Industrial

The week began on a gloomy note. and oil shares showed losses of up to four shillings. The industrial index lost a further 5.5 to 192.9 fully 31 points below the peak of 223.9 reached on July 21, From the peak of the boom to the lowest point of the alump, industrial share values feli no less than 14 per cént.

those Conditone were no better in gast gains were

which the gilt-edged market. Here too, had been previously most de it was a story of operators sell-pressed. The "atomic" group ing to reduce bank overdrafts, came back lobo prominence and Prices

already

aliding leaders in other sections were were. when it was learned

that the algo well supported. English Uganda GovernmenĻ was to Eletrie were helped by a record raise a loan

In the week breaking flight from London to on terms that made comparable Now York and back in a day Issues stem overpriced,

by their Canberra ņiroraft. The Uganda Loan took the The recovery even reached to form of an offer of £3 million textiles which was perhaps sur- of 414 per cent stock, redecin-prising in view of the gloom able between 1008 and 1978 at which has solled over the in- a price of £07 per

Later

ecnt, Not allowners the

since the early thirties has to colonial

government

over five per cent for money.

raised in London

slocks

iroup

could

advice given by

Mr Richard offered Fort, secretory of the Lancashire roup of MPs, that they should get out of the business if they

not make it pay. Oils shared in a Began. To Rise

rally-with British Petrol and Burmah out. This, coming on the Lop of

1 other

led to in front. considemtions,

Gilt-Edged losses of up to £1 in gift-edged and the on Monday

Among the glit-edged Issues, which Business done on the Hong-Financial Times index of Gov- War Loan 314 per cent

Od on ernment securities dropped one had fallen to £75 175 In any rational | kong Stock Exchange this morn- and reasonable meaning of the ing amounted to $260.000, Noot point to 89.31, its lowest since Monday, rose in the next thres term. It is between stability quotations and the morning'st began in 1920.

days to £76 155, end

But minus After Monday, however, prices employment. the transactions:

signs crazy traversty of full

em SHARES BUYERS SELLERS SALES

began to rian sausini wly at again the next day as weekend

some but with increasing vigour profit-taking clipped ployment which now prevails."

BANKS

until shortly before Thursday's the previous day's, Bas Gite close. Sir Oscar makes it perfectly

the OT- clear that he is not advocating

The Immediate eause of this nouncement that 70 per cent of rally was a ccesation of selling, the new Uganda Loan had been As com as this became obvious left with the underwriters. The buyers returned and prices rose new stock opened at a £i dis-

count

over

we

risk

HK Bank

... 1733 1730 40 @ 1740

4

1000

51015

Union

1.30

120

73 731

2012 2.345 0360 2.30

D

Wole

were

out

of

highest con-

levels.

The Chairman explained that

The moral argument agalrisi two and a half years ago, Fire-inflation is, unanswerable, But sione research selentista had there are still many people who the return to the "bad old days." INSURANCES delerininer by infra-red nd believe it is possible, not only He does not want to see long Washington, Aug. 28.

perpetuale

outside Inflation, but queues

Inbour ex- The Government's cost-X-ray analyses that this new to rubbycr

was essentially the same actually to benefit by it. After changes. Indeed, it is because DOCKS, ETC.

smartly, helped by some "bear" and closed at 25s discount, of-living index rose three as natural

rubbewed that

"Further all

all, it is said, we haven't been ho dues not writ these things

covering and certain amount Coppers meanwhile, were con- K. Wharf... 74 78 tenth of one

in tests," he added, per cent

SHOW

free of inflation for ten, years that 6 15 so anxious to see In-

Docki

of cra

investment retinuing to advance which has cautious this new one-cent

type synthetle rubber

Provident (0) 15.00 15.80 ubber or more and we are betler off | Nation stopped brice and for all.

who taken many investment by operators

of the leading had physical properties equiva-

S'llal Dock .. in the

15221.310 believed that the slump was Issues, hourly

Rhokana including hikes for icnt to those of natural rubber even with unemployment down "Some hall Herense

Wherlock 9.40 912 3000 0.45 to practically nil,

rolis of the unemployed there | 650,000 General Motors and whereas all other synthetic, rub-

overdone.

Nchanga and will be if conditions are LAND, ETC.

Between Tuesday and Thurs- cessions, to Ford workers and 200,000 vers developed up to 1953 had This argument falls dat under tightened up," he writes.

been deficient in these respects."closer examination. For inna- I doubt if it would be greater "But

Hotel ... 18.40

2000 @ 19 day the industrial share Index The impetus here has been the In other industries,

IK Land

regained most of the ground it steady rise of the commodity that which

Humphreys. He noted that "CR-S type [tion, no matter how mild, can thin The

had lost on Monday, oils, moved price which reached yet another. Burent of Labour

not go on indefinitely. Sooner artyhow

Realty if we pursue our

sharply up

and glit edged peak cu Friday. statistles, which reported the synthetic rubber, although ex-

or later it must raise Britain's present course."

RUBBER

managed to make good some of rise, said it was the biggest cellent for passenger cars is not

costs so high that her industries monthly

their previous losses, living completely satisfactory for use increase in

ir all truck tyre sizes. Truck could not possibly compete in costa since May, 1954.

withstand higher the export markets. Without The consumer price riseyres must

temperatures because trucks run exports she could not bus lood with heavy loads for long dis-for her population or materials brought the bureau's index to

Tram that indiation heat in the tyres."

would grind to u stop; Britain the monetary weapon. He does

Eletric XD, 403 415 would be bankrupt.

Maccu

Elec. 11 1170 The Firestone announcement

not agree that the cost of bank

Telephone .. 32 33 2000 33 tako effect in Seplember, due did not state when the company

The idea, is of course, un-accommodation has no bearing to so-called "escalator" clauses

to expected

put the new

to INDUSTRIALS Uhinkable.

decisions before Long commercial pro- siluation got so lar

the businessmen's

Cement..... 33% 33% which gear their wages to in-synthetle into

out of expand

slocks. They may creases or drops in living costs.duction.China Meli Special,

hand action would be taken to difference whether

that to protest

It makes no STORES, ETC. Commerce the Meanwhile,

the banks who hat inflation-no matter

Crawford that Department reported major

got hurt economically or poli- charge four or five per cent. segments of the economy are

cully in the process. But But Sir Oscar is convinced that COTTONS

Textile Corp 445 defying the usual summer slack season and keeping the busi- ness boom to apply mild brakes to the booin, the department's

Can Be Stopped

He believes

ton supply may dip slightly) *** using 1947-49 as a base fences thereby generating intense for her factories, The wheels erh be stopped by the use of !

in 1956 for the first time in

forecast,

based

five years.

The estimated supplies and probable consumption, was mudé in the Department's publication, The Cotton Situation,

The 1055-58 cotton supply is estimated at 23.800,000 bales, about 400,000 bules larger than

1954-55 und the second rgest since the World War The Department snic con- sumption In 1955-50 may ob- pronch 13,000,000 bales com- pared with 12,010,000 bales in 1054-55.

Slightly Below

of 100,

The pay riscs for Ford and General Molors workers will

BRAZIL'S EXCHANGE REFORM

Survey

Business monthly

of umer and investment said consumer demands "Continue buoyant due to rising incomes. It cited high level of nuto production as a major factor in the con-

Rio de Janeiro, Aug. 28. Unaing upswing.

The Finanec Ministry The while non-ferrous agricultural announced today a plan for

reason

were raised to ten or

A. Rubber Trum

2.10 2.18 4000 2,15

433 or 3.126

UTILITIES

Y'mati Ferry

C. Light 10) 22.00

Dairy

23.10 210

24.30

120 20

22.70

.23 300 23

3715

Nanyang MISCELLANEOUS

Yongleze

8.45

4

Allied

5.00 5.50 2300 ÷ 5.00

Statement

what is more likely is that this they would change their tune if action will have to be taken charges sooner than many people think.twenty per cent.

But the monetary weapori can Economists, point, out that the

Inflation has not had ly do its work if the public cathstropnic results up to now is allow it to. It cannot do sa It two-fold. First, devaluation of there fa a clamour for relaxation The Bank Of France the pound i 1949 left sterling of the credit "squeeze" is spon undervalued in relation to other as it shows signs of becoming currencies and this ineant that effective. "Public opinion," BAYA the British economy could, upsecting her external position. on-farm prices have "moved submitted to the interna-Secondly, other countries have downward and the actual not tional Monetary Fund beatso find ination. change in wholesale prices has fore the Government finally) been alight-United Press. decides the form and time

Department said

that

Sir Oscar, "must be convinced

Paris, Aug. 28.

The Bank of France statement

prices have continued to edge exchange reform will be on fallacing for a úme without that tonation is a greater for the week ended Aug. 18,

If these estimates hold, the Department said, the carryover of cotton on Aug. 1, 1956, the beginning of the marketing yent, will be slightly

the below 11,100,000-bale carryover

AUA:

Dh

1, this year. The carry. over has increased each year since 1951, when it tolalled 2,300,000 bales.

The estimated total supply fof the 1660-60 trop year. Th cludes the starling carryover 11,100,000 dles, estimated on Aug.

1 at 14,800,000 balus. The 1930 crop is seven per cent sinaller than the 1004 stop.

Rice Producing Nations Meeting

Rome, Aug. 26. The world's chief rice pro- ducing and consuming nation will meet somewhere lu The Department said present Far East, next month

of its adoption.

como

gradunt.

that

Re-Thinking

89

han

small .u

is in

amount of un-

employment of else that full sende as follows:

greater danger

Fronics of inflacides if it goes on thin K. Total geld holdings 201 201 CP1420 docsn't. As soon as there is a Total other currencies 18,313,174,732 clear will to stop inflation t Bight balance abroad can be stopped."

in EPU... Advance to Stabilisa

tion Fund

200,000,000,000

241,000,000,000 Toul bli discounted 1,060,879,210,090

Bank notes in cir-

sulation for £.ibi,dal,522,006

deposits

122,205,840,004 United Prens

Exchange Rates

An delat tote added,

But who is to convince the Now, however, British costs freeing of exchange will not have largely caught up with the public that they have more to

Current accounts "drid' "abruptly" but will be depreciation in sterling, And fett troi inflation than from

other edlintries have had morts the cure? reform should not success in bringing Inflation

It Sit Ostar's opinion materially alter present con-under control. Further rises in

Will British costs

therefore great responsibility will rest on ditions in the coffee thatket," do tricreasing

irade union serious damage the pollileidis, the note said.

the country's balance of leaders, and the press possibly on the trade uniofis most of all Who will have to persuade the working mui bf the truth of the proposition-so obvious yet

heure of prosperity is real wages and not money wages."-- London Express Service,

din

Modificatid of Brazil's ex- Į paymenis, port rates will accompany, in all mensure possible, eventual declines in foreign prices in Д

Iridication art for 6 domestic ways and meals to stabilise the manner 16 gudrantbe Stabilty Singapore Rubber to dimeuit to bellove-that a

mill consumption of

What more" than

bales-United Press.

Thờ to study

ried "some-tritional

trade tho

of intefrial prices in cruzeiros, Food 9,000,000 UN

dial. Agriculture instead

of producing an in- Organisations did today.

crease in those prices."--United The meeting, for which no Press. exact date or site has been not

will

a report on

The Bank Of England Statement

+

sible lotion nedstires | epared by General Philip V. Cardon on Instruction from a special meeting on rice held in Ran- gooft, Burina, last November.

1

U.S. RAW COTTON

EXPORTS

New York, Aug. 28.

London, Aug. 28, The Bank of Englanŭ ŝtatė- The stabilisation meeting is mihi for the week

chidoit to be preceded by a con- Aug. 24, rentis bis föllövra: ference út exports to comparo

the quality standartis for ice destination as reported in bales BlogNNE.. Adopted it afferent countries by the New York Cotton Ex-

:

Market

Singapore, Aug, 28.

The market opened on Situl-palveta Snidered catara. day steady Because of improved

overseas advices, and improved

dethnie fot hearby shipment to Poland, Enquity for lower sheets, was smáll. “Futurės!

rubber, per: 18,

fall ballon exporta, by

No. 1 இத

Orth Nbv.

Sept

Norikber ber":

No,

Note, in eirculation **** 181312.24 TB experts will also can thing for the 1985-50 sedson as

2014127 sloes the Dukalunity of work ib Aug. 28 were as follows:

Gravemütsant Lesuritiba 101,500 cm | Lhg dut ebriftin Mahsigfds of Firila

Public deposit

Privats deposite

Oiber curifles

Heceipts

Italia

grading which, will" B8 Conilpont as adopted Internationally,United Orient United Press. Prost.

Canada

Bank

No. 1 pale

Onlied Freak

MESSAGERIES

Apart from a short perlod at midweek when priers showed a As is uaual when the market ( tendency to rise tea and rubbly fuctuates so widely industrial shares were quiet, South African shares which showed the big-gold shares were Irregular,

EVERETT

LINES

EVERETT ORIENT LINE

Fast Regular Freight Refrigerator Passenger Bervice Loading for Bingapore, Penang, Rankoch, Calcutta and Chittagong.

"İEDEVÈNETT

"NOREVERETT"

"BRADEVERETT"

«LENEVERETT”

*

Arr. Sept. 11

Sails Seat, ta

- ~ Oct. - Oct.

Oct.

- Oct,

- Oct.

19

30

-- Oct. Loading for Kobe, Osaka, Nagoya, Yokohama

"NOŽEVÉRETİ"

"BRADAVERETT”

"LENEVERETT REDEVERETT

Arr. Sept. 5

-- Sept. 10

-- Oct.

1

0 Sally Sept. -Sept, 12 Oot.

2

-- Oct.

- Oct. LIMITED PASSENGER ACCOMMODATION

All the above subjért to alteration without nelies,

EVERETT STAR LINE

PAST REGULAR FREIGHT REFRIGERATOR - SERVICE

LUAB

för BIBgapore, Port Swattenham, Colombo, Bombay, Karachi & Penlan Gult Forta.

20

จ

Beipt.

- Oct. $10.

Nov. 12: -Nov. 30

"SŤAN ARCTURUS" "THAI

Arr. Sept.

Salls Sept.

- Sept. 27

-

"BTAR ALCYONE!

*** Oct.

14

81

"START HETELGEUNE“

-- Nov. 11

- Nov.

15.07

TRAI

180

“ATAH ALCYONE"

1.70

LAO

Huadybeste we done in the toesl ToЛTICLAI @zoharige

market, this moming at the following raken US dollar (par 31 promoter Bierling notek (age 133, Australian notes (per £1) Indonesian rupiahüper 100) Sam, ticle{1}% SkribbleBARMES

Indo-China pissiers (per 100)

MARITIMES

P.Q. Bor 55 Queen's BalkNETTA MAT FAST PASSENGER/FREIGHT SERVICE

sailing Beptr 10th Balling Oct. 8th.

'LAUS"

dialed.

NAM”

NAM! "PEINO?

FAST FREIGHT SERVICES

****** Balling Sept, 20th Balling. Oct. 19th

Loading for Kobu, Osaka, Nagoya, Yokohama

Sept. 22

Salle Sept. Arr. Bept.

Bept. 11,

10 Oct.

* Oct. “TAH KITELÁRUSE" - Nov. 3.

No,

"STAR ARCTURUS“ - Nov. 20 - Nov,

LIMITED PASSENGER ACCOMMODATION : All the above aubject to alteration without moller.

EVERETT STEAMSHIP CORPORATION S/A (inddrporated in the Rejubile of Paulms with Liziljed Lisblity) Chinese Department: Telephono 28293. Queen's** Building, - *Tefüphoný""' 31206.