1955-09-12 — Page 9

TRADE

THE CHINA MAIL, MONDAY, SEPTEMBER 12, 1955.

and

COMMERCE

DEVALUATION OF POUND DENIED

NEW YORK But The

STOCK

MARKET

REVIEW

By Elmer Walzer

New York, Sept. 11. Railroad shares came back into their own on the stock market this past week while industrials retreated after setting a record high.

The railroad average rose 4.87 points to 102.27, its best rise since the week ended March 4, Inst, when it rose 5.77 points to pace an industriola rise of 10.18 points..

the move This was exactly and hoping for. To them a con- Armation by the rails of the rise in Industrials would mean a new bull movement for the market getting set.

Businessmen Export Duty

The Foreign

Remember Sir

Stafford

From RONALD BOXALL

London, Sept. 11.

Twice within the past week I have been asked by foreign visitors to this country if the pound is going to be devalued. And each time I have answered them emphatically that it is not.

But the fact that this question being asked at all is significant. For it shows that Britain's present economiċ- troubles are being exaggerated abroad.

much

Remembering that Sir Stafford Cambridge economists dociare, unsultable or requiring the reim- Cripps repeatedly denied that is one of getting that balance position of import controls. sterling would be devalued right right in a state of prosperity

The devaluation they point out up to the eve of davaluation in without sacrificing too

gave Britain & relatively low cost 1949, foreign bus

businessmen

are

level as a starting point and the Mr the charists had been praying not Impressex, it seems, with prosperity In the process.

that the A

small fairly

adjustment growth of capacity in industries assurance Butler's

put matters right. such as oil refining and steel has present value of the pound will be maintained. Still less do they would appear to be impressed by his conomists estimate that a rise been strengthening her balance

five per cent in Britain's of payments. there assertion that

receipts from overseas transac- tions or a cut of five per cent in conomic crisis in Britain.

her disbursements would make her balance of payments reason- ably healthy. The two together would make it strong.

The rall rise was ascribed to several things, the most potent

is Iu

It is everyone's right to form being a sharp rise in carnings his own opinion-especialy where for carriers. Their income for his own money is concerned.

reported by the Ansocia-But informed July

opinion can only tion of American Railroads be reached after painstaking amounted to 72,000,000. rise perusal of all the known facts of 22,000,000 over the 30,000,000 and even then only by experts. reported in 1954.

IN FOUR SESSIONS Rails rose in each of the four Bessions of the week which was reduced by the Labour Day holiday Industrinis enjoyed a 3.71 points rise on Tuesday when their average closca ut its all- time record high of 470.24.

The sustaining force for the industrials was the steel group which was profiting by glowing reports of activity in the Indus- try. There was no summer juli autumn In steel demand and

J11

demand increases are piling up at a time when supplick of steel small and demand very

nro

large.

Reynolds metals was an out- standing gainer. It netted 38 points on the week to finish at $278. American Viscose Jump- ed 6 points in the Wednesday and raised the cash dividend.

During most of the week de- spite the irregularly in Indus- trials, the number of new highs made dally was in a ratto of 8 to 1

there or better. Also was a plurality of gains in the market.

Despite the dips in the last three sessions of the week, the Industrials managed to close the

It is useful, therefore, to have what is na near as possible an independent expert view of the

position current economie Britain

quarterly London and Cambridge Economic

Dulletin.

in the latest

In

According to it: "While the present position is not one of crisis there is a rent danger of prolonged malaise which might eventually load to a crisis."

Small Adjustment

Production, consumption and capital investment are all high, Britain's problem, London and

GRAIN IMPORT QUOTAS

• Denver, Sept. 11. President Eisenhower

an

Commission to

week higher at 373.50, up 2.00 nounced last week he will not points from the previous close. ask the Tarift

Utilities netted a теге five investigate the need for keeping cents to close the week at 66.35. Sales for the week totalled barley beyond Sept. 30, when

the present quotas expire..

703,410 shares for four day, The daily average for the past week

to 2,423,852 amounted shares.-United Press.

U.S. COTTON

TEXTILE

INDUSTRY

import

quoias

on oats and

The summer White House said thie quotas for the Егор усаг ending Sept. 30 are only 45 to 30 per cent filed and "It appears unlikely that oats and barley would be Imported in such quantities

interfere materially with domestle price support programune grains."

to

for these

To devalue the pound in these

would

be

Production Costs

in

то contend that there is no likelihood

the present circumstances of the pound being devalued is not to say, however, that no problem exists.

It does; and it is a difficult one to stop. if matters are allowed to drift it might even become serious enough to make sense of talk about devaluation.

SECTION

Three-Wheeled German Cars

New York, Sept. 11. Three wheeled West German-made Menser. schmitt cars are now on

salo On Tea

Raised

Again

Colombo, Sept. 11.

The Ceylon Government raised the export duty on ten from 50 cents n pound to 65 cents last night." The action brought immediate sharp criticism for the ten trade.

in

"at the Westchester county store of John Wana- makers, Arst departmČNÉ store in the US to handle them. The

store in- troduced Nów Yorkers to Henry Ford's automobile in 1904.--United Pros,

Page

Reasons For London Market Recovery

From Our Economic Correspondent

London, Sept. 11. A number of reasons have been deduced for the improvement In the London stock market last week.

Monday's Cabinet meeting at which the economic situation was again discussed brought .

HONGKONG forth no new anti-inflationary measures. The

STOCK EXCHANGE

Chancellor has now left for Istanbul to attend the annual meeting of the International Monetary Fund and nothing is likely to be done until he returns,

The Government's decision was influenced by the ten mai- ket recovery during the last three months,

"Since

June, prices hávo shown a definite upward trend and on August 30, the average the Colombo auction reached two rupece a pound," a Business done on the Hong-would Government

statement sald.kong Stock Exchange this morn- "Indications are that the tea ing amounted to $1,050,000. market has recovered, and that Noon quotations and the morn- export

prices are Hkely to re|ing's transactions: . at or above this level for some Ume."

Mr Broome, Chairman of the BANKS Ceylon

This encouraged the market | throughout the week. British almost as much

Shell as the out- Petrol, Burmah,

und spoken presidential address by Canadian Eagle were prominent. Mr. Charles Geddes at the open- Other Markets

of the TỨC conference. Ha ing warned workers that if they

In the other markets South (From Our Correspondent) continued to exploit the present African gold shares improved on state of full employment they declaration of malden dividends Free be helping Britain to by three of the Orange commit economic suicide.

State mines.

the Coppers were strong on A rise in the rates at. which now record price of the metal, local authorities

borrow Nchanga, Rhodesian Selection from the Pubile Works Loan Trust and Rhoanglo all reaching | SHARES BUYERS BELLERS SALES Board to finance their housing new peaks for the year. Other

main

East Agla

Unfor Lombard! Underwriters DOCKS, ETC. K. Whart Dock Provident

Gr 1740

20 1760

234

1010

54

10.20

15

17

29.30

1450 or 2346

5000 10.40

year-is

can

practising

UP REVIEW

The following is United Press"

1 market review:

programmes the fourth this base metal issues were firm and

taken as a sign that rubber shares were also better, the Government 1Я

It is widely what it preaches. held that a reduction from the

high rate of hou present

copecially by local -is desirable it Inda- | tion it to be brought under con- 10.30 10% 1130 6 1.20 trol. The five per cont Interest ... 10.20 10.30 8500 10.30 that these authorities will now 4000 10:20 have to pay for housing loans 1000 10.10 should bring this about,

Tea Traders Association, C Bank ... 1745 1780 rald the increase was "most un- fortunate and might have unsettling effect on the market." Mr C. F. H. Edwards, Chair- man of the agency section of the

Planters Ceylon

Association said that frequent changes were tiresome. Mr E. W. Kanangara. Chairman of the Local Country Products Association, described the action as "most unfortunate and inadvisable."

'ce

Wheelock

5500 G 10.20

1000 6 15.38

2000 on 9.30

LAND, ETC.

HK Hotel... 18.30 10.20 2700 or 10 HK Land

74 751 1230 75 20.20 Humphreys

500 20-20 IN) 10 30 10:50 500 14 19.30 Realty

circumstances foolish - and as criminal- as using an atom bomb to quell a minor civil disturbance, There are a number of other weapons Government's

RESTRICTIONS REMOVED Basically, as the London and in the British anti-inflationary armoury await-

Cambridge economists point out,

Al Nugegoda, Ceylon, the ing to be used before such

the problem is one of keeping

Tea international

Commit- extreme action is even consider- British production costs in tine restrictions on Ceylon's with those of her chief com- fea exports have been removed petitors. And this cannot done an

as long as trade unionists for at least the next five years, UEBER What 15 happening is the way the

it was announced today. they enjoy press the advantage

The costs are British production

by virtually non-existent unem- rising faster than other countries: ployment to a point where their agreement provides that there| Unless this trend Is

the risk of being demands for higher wages can Britain runs priced out of the world maricets only be met by rising prices the stage for for at least some of her products. tius setting

now round of wage claims.

cd.

arrested

Our sensitive coonomic indica- Somehow this picked up a danger must be broken. tors have signal as a seismograph picks up

must be

be

vicious circle The demand limlled to what the

new

international

tea

2.321

For The Better

The stock market opened the week on a poor note with fears of Government's tightening on credit.

At mid-week, however, there was a change of sentiment when the new account started on was helped Wednesday. This by the sharp advance on Wall Street.

All these factors and Thurs-

In addition the recovery was day's "no change" in the bank assisted by the statesmanlike rale announcement had an in- attitude adopted by speakers at fuence for the better on stock the Trade Union Congress, and market sentiment--though some the new relaxation of restric

Thrott- of the older hands in

A. Rubber 2.225 2.36 5000 or 222715 marton Street put the rally downtion on securities in sterling and

the export of bearer bonds, to the fact that the market was

As o "due Ice it and let it go at activity in

Trust

(ght (0)23.40

CL) 10 10.00

of

thle

The bonds

last,

WILE

pronounced. After further falls on Monday bonds were eagerly sought after Japanese quite especially among Government and moved sharply. The five per securities--which lost up to 7s 64 --the market began to recover,

'Trani Star Ferry L Y'mati Ferry

140

2700 2.30 3.276 3.334 3000 3.30

24.20 25.10

10 121

that.

006 110

100 of 119

11 2315

Electrie

43 4311⁄2 2300 se 43% Масло Elec. 116 11.80 Telephone ..335 3415 300 34

1500 2414

INDUSTRIALS

Cement .... 384 3011⁄2 200 de 20

17

1.30

.... 14%

be no curbs

on exports of tea UTILITIES from the member countries of the Committee Ceylon, Indło, Indonesia and Pakistan-and regulations specifying the maxi- mum

quantity for exportable coch year have been removed.

Ceylon was the prime mover a faint earth tremor. But that nation can afford to consume at this revision, since its local production has been outstripping does not mean that it is time home after the needs of the exs exportable quota. Under the to put the disaster drill into port trade have been met. It

old rules Ceylon was restricted speration.

in might be done

the first to 340 million pounds of export, instance by increasing taxation India and Indonesia favoured The London and Cambridge or raising the bank rate to force retention of the limits, since economists,

of borrowing. at any rate, are up the east

If their production falls short of STORES, ETC. setting

import restrictions their permissible quotas: Pakis- an example of coolness, these fail the academie fasiness night become necessary.

tan also does not produce its From where unconsidered proNOUNCE-

pormissible quota: United ments are as forbidden as juice

Unless there are unmistakable Press. boxes they state that the relative signs of an improvement shortly. rise in British costs could well one or more of these measures

go on for some time longer with- is bound to be taken-London

out making the exchange rate Express Service.

Singapore

Report On Korean Stock Market

Reconstruction

New York, Sept. 11.

Singapore, Sept. 12. Brokera

Loday quoted the following stock prices: Batu Lintang Rubber Co.

Ltd.

Britsh Borneo Petroleum

Syndicata

Consolidated Tin" "Smeltera

Opening

11.03

4.0

299 Fraser & Neave Ltd Ord. 1.77

cum. pref

Corp.

Nope....

Dalry

Watson

L. Crawford.

COTTONS

Textile Corp

0.10

MISCELLANEOUS

Yangtze

Allied

was

cent 1907 assented, which reach

per cent

£187% afte

10 and despite the usual slowdown ed 172 at me time, ended 4.

on Friday, maintained the im-up at 100 while the 84

1980 asscated,

8 points jumped provement throughout the week.

aflor touching £195. Activitly, however,

stin to on a restricted scale. But small German Young bonds went buyers took the place of small sharply ahead rising six to £55 Hun- before reacting to £151. sellers.

In the four days to Thurs-garian bonds, on the news that day's close the Financial Times Hungary's debts talks will open index for Government securities in London next week, jumped rose from 87.22 to 67.00 after with the 4 per cent rising four 2330 7 20:30 touching the year's low of 87.051 to £332.

on Monday--and the industrial Gilts Looked Bright share ordinary index put on 3.2

tooked to 195.7.

2000 2012

the

success

Chilt-edged háve

ped to a new three-year low of 744 actually finished 3 points higher at £75.

In the industrial share market brighter. this past week, but aircraft issues wore prominent because of the continued uncer .... 8.10 8.23 2000 @ 1.30

of the Farn-inty over the economic situa- on 2000 8.25

dion, the gains they made could Gains of two borough air show. 6 1000 to 5.00 3.05

not be called a rally. War Loan or three shillings were common which last week-end had drop- In this and other sections.

The better tone of the market has enabled would-be borrowers to put their plans into opera- tion.

The Kenya Power Com- pany are coming to the London market for a £3 million of £7 million debenture is next week and both the Galla her and Beecham

group are ruising new capital by rights issues.

ΤΟ PLAN HALT FARM

PRICES

Helped by the news

Expectations that the good yearly

.consumption figures would attract buyers induced an initial marking-up of oil shares but prices soon fell away again, until Into in the week, when ̈* strong buying hiked British Petroleum three shillings 14 that ponco to 118s 1d and Burmab

firm. Press.

Washington, Sept. 11. Officials said today that one plan being considered to bearer securities can now be ex-29 100 to 799 440--United

kalt 2008.40

The Agent-General of the United Nations Korean Reconstruction Agency (UNKRA) has re- For Neave Ltd. TX The President acted on the ported on a year of achievement in helping to re- Hongkong & Shanghai Bank- recommendation of acting Secre- build war-torn South Korea, including the supply-Hongkong Tin Lid. tary of Agriculture Earl L. But ing of new factory machinery and fishing boats La Rubber Estates Lii. 12.30 Representatives of a sec- President tion of the United States Department will continue to and irrigation of farmlands.

Washington, Sept. 11.

Butz sold in letter to Elenhower

Innintain

to

a clase review of the cotton. textile industry situation "and advise the Presi- charged today that tariff re-dent if ho feels the Import ductions recently negotiated quotos should be reimposed on at Geneva and effective the two craps-United Press, September 10 would result in

injury to American textile

mills, loss of US markets CONSTRUCTION

for cotton farmers in this country and possible ex-

ploitation of American con- JOBS FOR NATO

sumers.

Mr A. K. Winget, President

of the American Colton Manu- facturers Institute, sald new gates,

Kempia Ltd.

Malay Breweries..... New Brandsch Rubber Co.

Ltd. Petaling Tin Led. Singapore Cold Storage

The Agent-General, Lieutenant-General John name Hotel Coulter, reported to the General Assembly here South Britis: Insurance Co. that in the ten months ending on June 30, improve-stra Trading ment had been noted in most sections of the Korean United Engineers Ord. economy, and manufactures had risen.

Straits Steamnaisip

Wearne Bros.

2010

Zad

$1.00 od

$1.00

the dropping farm ported oll shares were

prices is for the government

to lease large amounts of land from farmers and thus

control directly what crops A

are planted on it. $4.20

who urged

$1.00

$28.00

$24.25

$19.00

$10.90 $2.32 -China Mail Special.

Some suggest casing as

540,000,000 acres.

this plan

much as

Oficials. sald this plan has been considered from time timo during the last two years and therefore is not particu His report said that food sup-businesmen werd approved up

larly new. They said it is being bo to June 30, plies generally appeared to

The Bank Of Franco presed more from outside the Government than from Inside require- enough for domestic

The report pointed out that,

Statement

the Agriculture Department. ment, but the retail price of rice

There of ald provided by

19 still considerable had more than doubled during the lovel

the Republic of

doubt us to Paris, Sept. 11.

whether it would year and prices of other UNKRA for commodities had increased Korea has been governed by the

extent of financial support re-ment for the week ended Sept.

The Bank of France state work. ceived from governments.

1, reads as follows:

the

On the average, wagty in- creased more than prices. But skilled occupations they lagged

Total gold holding in some industries and m un- for rehabilitation in Korea Tolai other currencies 10,008,372,088 gradually lowering prices of

Washington, Sept. 11. The Commerce Department sharply.

firma "the old today that busincui established for the from the US and other coun- express benent of Japan, are so tries are eligible to bid on three low that the Japancao Industry NATO construction Jobs in the

on which

a total is lo position to take over almost Netherlands any part, or all, of the Amerl- of $2,143,680 will be spent. can textile market at will. The only restrictive factor as for as we can see now is Japan's pro- ductive capacity and that has increased fourfold in recent Years

behind.

"It now seein likely that the General Assembly's target amounting to £09 million connot

be reached." UNKRA had contributed much. Officials said the jobs includo

Nevertheless, the report con to South Korea's Industrial ex-

The

Agent-General (1) the furnishing and laying of

pansion, nocording to the re-inued: pipe on a 48 kilometre pipeline, portretulitated the arly feels that the record of achieve ment has been and will con including a river crossing and major cement plant, during the the building of fuel tanke, zonds, past

your, and launched a faue to be so substantial that the United Nations Thay right- pump house, and bargy loading | blegest single projbel to date, a Mr Winget said "trade reporta indicate that July fabrio sales facilities; (2) another pipe Pro- new £2,780,000 ctment plant ly take pride in the mountin

success of By Japan alone to the United Ject totalling 92 kilometres with which is expected to be com-

to TALNO д stricken States reached 6 million yards, a river crossing and (3) an air- pleted in two years.

extension runway

with

an all-time record"

a

port

Mr J. Craig Smith, a former taxiway, connecting runways, President of the Institute, said alert apron and lighting.

Line without some kind of

55,440 Spindles

people."

UNKRA whi furnith equip-

They described it as among various Ideas which have been Trance

advanced to solve the problem 201,201,501,420 Sight balanco abroad 130,800,000,000 farm products which have made the rural scotions a weak point Advance to Stabilitation

Fund

200.000.000.000

the otherwise flourishing Total bills discounted 1,107,2134.8592

national economy. Blank note in circula

tion

3,073,494,397.090 Current accounts and.

depoka

* 121,807,004.058ducts such “United FrDON.

"

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Huge surpluses of farm pro- wheat, BB Cotton, bobtoco, maize and dairy pro- ducts constituto a depressing factor on the prices of crops Call in at any time:

farmers.--United | and examine, specimens

Press

Its first collective The Bank Of England received by effort

Statement

Loddon, Sept, 11: ment for the country's first The Bank of England se Exchange Rates

the week ended worsted guns apinning mill, for ment for limiting control over imports

new dyeing, and drilshing September 7; roads as follows: from foreign countries American were not disclosed but United UNKRA supplied South Korea

21.781 congamers aand in danger of States companion were told 35 wils 58,440 spindles for the replant and a flood control pro-Male to direction

upon by exploitation and a they were interestedi. Sisey, conalldi habilitation of three major box-grating agreed collinagia, set on US textile contact the Netherlande govern 16 plants, and all are now in UNKRA and the Government

damper.ancomated offes known De opvat (Ubnų, South Korea is meet will integund 98,000 people had this

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