1955-09-05 — Page 9

THE CHINA MAIL, MONDAY, SEPTEMBER 5, 1955,

TRADE and COMMERCE

Butler Calls Meeting Of Finance

NEW YORK STOCK

MARKET REVIEW

New York, Supt. 4.

A long list rose 1 to 41 points on the week in the New Stock Exchange, and a few stocks lost up to 7 points in the high-priced Interm tional Business Machines. Rails barely made a gain— closing the week at 157.40 Utilities were up 29 cents,

up 3 cents at 66.30 in their average.

Copper shures encountered some profit-taking that left some ef then lower on the week, notably Magma which lost 24 points,

Steels as the demand for steel picker!! up with new buying anticipated from the flood areas where ro- habilitation soon will be under way on a big scale.

were strong all week

Oils 'd little more than hold their own with the exception of a few issues, notably Lion which gained 4 points on the week,

Goodrich was up 4 in the tyres end General Railway signal 0 points In the rail equipments.

Chemicals Up

Chemicals rose wilh Union Corbido. Procter & Gamble led the soap section with a guin of newty & points and also helped raise the industrial

average of which it is a part, Montgomery Ward rose more than 3,

whirl

Liquors were given a late in the week, featured by Distillers Corp. Sengrams which netted nearly

on the 5 points

-Ministers

UK INFLATIONARY TENDENCIES

AFFECT STERLING AREA

From Ronald Boxall

London, Sept. 4.

Chancellor Butler has called a special meeting of Commonwealth Finance Ministers. This will take place later this month in Istanbul when the Ministers gather for the annual meeting of the International Monetary Fund.

HONGKONG

STOCK EXCHANGE

(From Our Correspondent)

Business done on the "Hong- kong Stock Exchange this morn- ing shiounted to $920,000. Noon quotations and the morning's transactions:

SHARES BUYERs setlers baLER BANKS

IK Bank

INSURANCES

Union

Whether it is a crisis or merely a troublesome period SING that Britain is now going through it is equally the concern of the other sterling area countries. For the two main

symptoms in Britain are declining gold and dollar reserves and the deterioration of the United Kingdom balance of payments. And as these vitally affect confidence in sterling

that it is obviously right

the views of the other Commonwealth countries should be heard while the problem

is still tractable.

Although i difficult

toalarming rate and this, of course, financed by credit and so restores separate British economic concerns the other members of the balance of supply and de- area the sterling area as much as itinand. But the undesirable problems from sterling

situation does Britain. But we are not effects are experienced simul- problems the present in this country

not an immediate

et experiencing a crisis of the taneously, Britain's 1040 or 1951 variety. threat to partners. True, the central gold

are shrinking at

reserves

Fair Helps Greek Exports

дл

Salonika, Sept. 4. Mr Panayotis Kanellopoulos, week. Alrerafts followed Unit-Greek Deputy Prime Minister, Ed Aircraft higher after Uie

per cent said last night that he expected latter declared EL 40

Greece's exports this year would stock dividenet.

be $220 minion compared with Trading on the week fel off $175 million last year. from the previous week, but was above two weeks ago.

A

1,- previous

Ceylonese Mission

Tokyo, Sept. 5. nine-member Ceylonese

Government

trade

mission

Mr

Twelve natlons are represented

U.S. RAW COTTON

EXPORTS

The reason for this is that while Britain has struck definitely sticky patch in its economic affairs the rest of the sterling area does not at the moment appear to be suffering to the same extent. In volume their imports and exports make up over half of the sterling area total so what is happening to

In the first place the higher bank rate automatically increases the cast of servicing the foxt- ing portion of the national debt. And since an important part of this involves payments overseas (in the form of interest on ster- ling balances invested short-term

to the Br loans

Gover- Brush ment) It adve

It adversely affects country's

cost of the Tast two ingreapos in the bank rále has been put at £30 million a year. This would rise to £100 million if the bank rate were raised to six per cent.

the

.. 1700 1725 201715

21710

1010

Waterboat JOCKS, ETC.

+

K. Whart Does

21.80 1000 Provideni (0) 1320 18.00 Wheelock ...9.65 0.75 1000 9.65

400

78 27.50

1000 6 9.80

2200 0.85

1000* 0.80

0500 ** 0.85

1000 0.00

2000 9.75

7000 9.70

LAND, ETC,

to 10.36 .200

1000

Humphreys 1N). Realty

..... 2.23

73 7311⁄2 600

19.10

100 73%

5000 #2.3715

2.15

2.13

HK Hate! UK Land

nuÝBER

A. Rubber .2.12 2.15, jopo

Trust

3.10

UTILITIES

Trom XD 24,30 zi.co Youmati Ferry £15 11

31,700

100 or 110 C. Light (01 22.09 23 2004 C. Light (N) 17.60)

SECTION

MARKET

SWISS TRADE LONDON

STILL WAITS

FIGURES

Zurich, Sept. Switzerland exported goods worth 1232 million Swiss francs to Iron Cur- tala countries during the first six trionths of 10ES,

This is di ricrease of 20.18 million tration over the corresponding paHod for 1054.

Swiss imports from those countries for the first half of 1953 were 106.92 mlillori francs, 18.56 million franca above the 1954 Bgure.

Goods worth 12.07 full- lion fraños went to the

UBBR.

Imports froms the USBR werd totalled

11.12 million

Exports to Rumania resobed 5.07 million francs, with imports worth 5.56 million francs,

Czechoslovakia accounted for 21.07 million franes of exports and 28.98 million francs of the Importa United Press,

WEEKLY

From Our Economic Corrëspondent

London, Sept. 4.

London Stock Exchange is going through a period of acute uncertainty. The Prime Minister's speech over the weekend with its strong. hint of further Government action to curb public spending convinced many people that the bank rate would be raised last Thursday. It wasn't, and uncertainty became deeper than ever.

The Stock Exchange is waiting to see where the disinflationary axe will fall next. Business has been at an abnormally low ebb and investors are not coming forward to take up the small amount of stock that is being sold.

Prices had already lost their

week's proviqua

by gains Thursday, and August gold and dollar loss caused further sub- stential losses on Friday.

Statistically the story in full of gloom. The Financial Times Index of Government securities as reached its lowest point since compilation in 1920. On Thursday, it stood at 87.00 com- the pre-

TEXTILE Pared with 89.34 at

MARKETS

vious week's close. Consols are now yielding slightly over 4 per cent against 3.60 per cent a year ago. War loah at 34 per cent lost a further 42s, last week

and now stands at £74 108,

New York, Sept. 4. Quiet trading at firm

The Industrial ordinary share prices briefly summarised

Index fell six points to 103.9 up the picture in grey goods to Thursday's close, and slipped and finished cotton goods | further On Friday. Yield

Electric XD 41% 41% 2011 markets this past week. these shares is now just over

Telephone..

1000 $193

33 334 BOD ir 33.23

LINDUSTRIALS

Cement

.... 332

Rope

....... 16.00

STORES, ETC.

Dairy

22.70 22.00 4300 a 22.00 250 2.70 14.00 15.20

these countries' trade must be This "exte of payments.

into account

taken assessment situation.

of the

Encouraging

any in present

Fortunately the current trends in oversCAS sterling countries are encouraging in this respect. The present strength of the main sterling, commodity suggests that on the export side they are pribably doing quite well.

Servicing Lines

Watson

MISCELLANEOUS

Entertain ment Yangiazu

Allied

18.20

The long weekend Labour Day vacation handicapped new 34 1000 331; interest as traders become in-

ereasingly holiday-minded. 500 / 34.

However, there was an in creased desire to wait and see develops how retail business after the summer season 1 over before manufacturers formulate future merchandising plans.

800 út 18.40

20

5.00

8.10 0.24 1000 6.00 5000

French

Purchasing

Power

The rise in purchasing power in Europe has been:

20 per cent for France,

2 per cent for Germany.

11 per cent for Belgium.

BURMESE

BUDGET

DEFICIT

Rangoon, Sept. 4, Findrice Minister U Tin pre- sented the 1058-00 Budget to Parliament, today showing a expected dellelt of 101,300,000 kyats (some US$38,200,000).

Total revenue was estimated at 803,000,000 Jate

(aprox. US$179,000,000). Total expendi- tures for the next fiscal year have been calculated al 1,088,- 400,000 kyats (somę US$217,200,- 000).

Among proposed fiscal mea- Дve per cent compared with just cures, announced by the Minister over four and a quarter per are an excise duty, on gasoline, cent at the height of boom lagi sugar and cigarettes. July.

The Heaviest

Shores in the companies which do large hire purchase businėse and electrical -mainly sidbes A few mill executives thought concerns-suffered the heaviest business would hold to the falls, but losacs of two or three a few shillings were common in other

time, sections.

will

present quiet pace for weeks more,

By

that

In-

U Tin sild thé déficit will be covered principally by burrowi ing from the public, the Union of Burma Bank and the World Bank-United Press

Sugar Output Down

garrient manufacturers have to begin to consider,

The reluctance to buy rather ventory replacements, and the than any strong desire to sell

New York, Sept. 4. re-orders may be coming in on has been a feature throughout Sugar production for principal recently-shown autumn lines the market. Geld shares advan-ureas that supply the United Sates of Bnished wash, goods to edd, but this was mainly due to states this season will appro- the cutting-up and wholesale buying by Paris as a hedge ximate 11,243,000 short tons, raw being maintained against further fall in sterling.value, Lamborn & Company,

trades were

at a heavy rate.

Mills meanwhile maintained a arm attitude on phlees. Rest- substantial order ing on backlog, manufacturers bent most of their efforts to filling on hand meeting re- quests for hurried shipments,

orders

Industry leaders were con- corned about the fate of mills located in the flood-devastated areas of New England. There was a question as to how many plants

will

reopen-United

Copper shares shaded on profit

taking despite the fact that the

melal reached a record of £400 a ton during the week.

Nothing. It seemed, could in- duce London investors to buy-

not even the disappearance of premium on dollar stocks the

irst time since dealings in these after the securities restarted

war.

gor brokers estimated today. The promised supply compares with 11,621,000, tons, produced Fast season, a décline of 378,000 tons or approximately 3.3 për

All

areas Have practically. completed their crops for the 1954-55 sedson except the Philippines and Hawdil

The Philippines crop is expected to Against this background, there be completed late in Septem- was small wonder that theber. Hawall generally grinds week's big public issue flopped during the entire calendar spectacularly. Underwriters had | year.

But the bank rule also affects the cost of servicing Government loans other than those raised for few months to fill temporary He was speaking at the formal

gaps be

between the Exchequers Inauguration of the 20th Salonika

revenue and expenditure. Longer-

ཆ་ Trading volume for the five-International Trade Fair which Moreover, the demand for term loans coming due for re- these commodities should expand payment must be refunded at session period totalled 9,062,000 opened here today.

further when shares; daily average was

the expected current market rates and since 812,484 shares. In the

stressed Inventory accumulation" phase these will be higher, Kanellopoulos

cost of week, the total was 9,795,170 that the Fair had helped Greece's of the American Industrial boom servicing them will an shares, or a daily average of, foreign trade and promoted ex-is reached shortly..

ditional burden on the national 1,059,034 shares.-Unlied Press, ports abroad.

£523 million

of three exchequer. There are encouròging signs,

per echt serial funding stock

Strasbourg, Sept, 4. at the Fair, including for the, on the import side. Dearer must be refinanced before next The Frenchman's purchasing

money policies in Australia and first time the United States.

cent. as well as the November and a further £624 power intex had gone up from New Zealand The Fulr will remain

United Kingdom should have million of 24 per cent war stock 100 on Jan. 1, 1952 to 121.0 on until September 28--China Mall

restraining the reaches is anal maturity date 1st July 1, it was announced some effect in Spental.

officially here today, demand in those countries for next year. imported goods. Australian im Any further rise in the bank port cuts and Pakistan rupte rate will therefore automatically devaluation should also help to increase the cost of servicing the reduce the sterling area's total national debt. But there is a Imports.

further disadvantage of forcing up interest

the rates which New York, Sept. 4. All in nil, therefore, the situo-

Government must take

France's Industrial production Raw cotton exports by destination which

into the Commonwealth | H Fisheries, arrived in Peking ention as reported in bales by the Finance Ministers

next also climbed rapidly, it was will review account in deciding its Sunday by air, the Communist New York Cotton Exchange for later this month does not present move.

learned 40 per cent from 1950 That compared to 18 Chinese radio announced.

One of the effects of inflation to 1935. 1955-56 season up to Aug. 27 too gloomy a picture,

is that it raises the British cost per cent for Belgium, It said the Ceylon delegation were as follows:

Britain

8.201 But that does not alter the of production and thus weakens But West Germany. with 77 was met at the airport by high Conueni

41.800 fact that the United Kingdom's the country's competitive posi- Chinese officials and Mr J. M. Orient

1244 own position is very shaky. Fail-tior, vis-a-vis, countries, with per cent and Italy with 53 per Addia, Counsellor of the British Canad

cent outstripped France. Total for

103,775ing effective action to remedy whom she competes for export

noted, However, that because Charge d'Affaires' office-Unit- Same perled last year* 180,005 this overall sterling area the trade. But in fighting innation of the war, they had started

Prem. position will quickly deteriorate. with the monetary weapon

rask is that higher rates of in-from a lower level. — United To return then to Britain. The terest that the

industry must Press. policy adopted by the Govera-bear will widen stili further the ment is to regulate the economy gap between British and other by controlling spending at its countries' costs, source. This can be done in two ways: by varying the amount of total Incontes avaliable for spend- ing after taxation or altering the rates of Interest charged by Banks and other istitutions for borrowed money.

headed by Shirley Corea, Minis-

ter of Commerce, Trade and

ed Press.

ARMI®

-United

30,201

German Chemical Sales Mount

Bonn, Sept: 4.

The West German chemical industry today reported sales of 6,700,000,000 marks for the first six months of this year, an increase of 800,000,000 marks over the figures for the first half of 1954.

The Increased sales figures went along with a production step-up of about ten per cent for the chime industry.

The chemical Industry in the inks Federal Republic how third in total turnover, close be- bind the machinery Industry. (0,900,000,000 martes) with the food Industry (11,300,000,000

East German Goal And Coke Plant

Not Immediate

onomie.

Off Aim

the

3 per cent for Britain.

Singapore Stock Market

Of these, the Government has Ped industries who bátu Lintang Rubber Co.

Domen

$1.00

$1.00*

With a

12.25 13.37

11.08

$1.70

Insurance

Preis

Closer Economic

Co-operation

Frankfurt, Sept. 4.

Dr Hermann Abs, lcuding Wist German banker, called today for closer economic, co-opération be- tween West Europe and the Commonwealth.

Altogether 25 nations are represented at the fair.

There are 3,028 stands, of which 2,115 are German-Reu- ter.

This is unfortunately likely to happen if the bank rate is raised again. For past experience has

Speaking at the opening of the shown that the brunt of higher

interiiational trade fair kete. He interest rates Is not borne by

asked for á pölley, under which Singapore, Sept. 5, "Inessential" branches

plaftriors

would grant nctivity

Brokers today quoted the Trading at whom they almed, but at following stock brices;

each other mite trust than Opening present. First step to this, des proferred the latter method. The The

clared Dr Abs, would be the Lid bank rate key to all other in- have kirge bank överdrafts and

the Comandnwealth Integration of Petroleum British terest rates has been raised must borrow from the pubile at

Syndicate

42s 3d and, Europe because the pound tvice this year-the last time, byer increasing cost to pay them consolidated Tin Shelters

sterling was still Europe's world February who it was lifted bff. And since these industries Ord,

Lid.

currelley. Ord. $1.72 Fraser Neave one per cent to 4 per cent. supply all essential services

Faber & Neave Lid. 14% fuel, powor and transport cum. prof.

10.40 But title so-called "monetary increases in their costs are very hongkong

Shanghibl

1910 not produce an quickly

Banking Corp. weapon" tloes

reflected throughout

3d Indeed some the

Hongkong, Tin Lid. immediate effect.

economy.

Kempathies": tconvinists doubt whether it has What the Government will do a Robber any effect at all. The difference in the fate of this uncompromis, New Berandal Rubber

Malayan Breweries -- of one or two per cent for banking situation no one knows, But Ltd. accommodation will not neces-is ilkely that it will explore Polallow fin Lid." Berlin, Sept. 4. sarily dissuade businessmen from ther means of combatting in-nies Hotel

Singapore Cold, Storm Colhmunist East Germany has Expanding their activities olation before it raises the bank | soull started building a billion-dollar borrowed money during a period rate ignin. London Exprbši | Co. Ltd... soft coal and coke production /of economie. boom.

Service.

| Stralis Trading.

Stoamisp plant near Hoyer-Swerda,

United Engineer Ord. miles southeast of Berlin, the But Bvidly there must be

Wesme Brow. Communist press announced to- sonje point at which the bost of The Bank Of England Borrowing Becotnek so The plant, whit comprise four high that businesmen are forced the

Chemieni Asociation mäld that despite the plants and produellen melties The

Industry soft coal mines, three power to but down their spending.

question

botvertie pressure of rising prices, nearly for, industrial

London Sept coke and soft whether there la more to be lost.

The Bank of England state thon gained throring Interest ment for the work ended August all world markets reflected the

briquets Ih hadition, gos, oll and tor rates up to this Height,

$1, as followIC to be produced.

Increase in the bank rateNote in dimulation ad the most sought-after Contruction of the plant is have twelfturiet Kype of effe: Puble deport

GovernG, MECURITA Deman products were, inorganic scheduled, to be finished in 1904. the desiimble and the

The

have arabie Of the former, the most | Other metrftime chiglóals for Industrial ure 699 đked 3.791,000,000 marks for important is that (in theory at

Rockipie IT. Rallo reduced the huge project-United Press, least)

marks) in first place.

Exports were increased in the first half of 1965 by about 18 pot cent over the 1954 six-month igura More than 1,080,000,000

matka of, the side ngures came

from foreign buyers.

godd Wimpetitive position of the

Germon manultcuirers.

If raw forma,--UNIZA

Communists

BO

plastica

Prose

spending

Stałémént

div.-China Mall Special,

The Bank Of France Statemeht

Patik, Sept. 4. Tho, Dink of since the ment for the week ended August 125 as follows:

Exchange Rates eela holding

„Businame:","teas, depe

Totat Turtel other currencies the local sans - ominide Worond Sarkot,. this {MEPLEME

rates:-

| Advarna 10, Stabila

„Įmorning at the, mlowing Bu, Andollar (por: #1) - Beding notes:/per).

Endowmen firikik İber 100)

Slim ticala paredbi

Bingapore (Btraila) ja

Indo-China plastrér (per....109) - 8.37.

deposit

to take up no less than 7 per

cent

1960-70

cent of 25 mllớn of five per The areas that shows a do- unsecured loan stock eline in production this year,

affirecr

by. Allled Lambors sold, are Cuba with Bakeries at 207 10s. New stock a decrease of 397,000 tons; opetted on Friday at '60s dis- Puerto Rico 40,000 tons; Philip- count, and fall to 003. discount pines 20,000 tons, United

Press, by the day's close.

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