1955-09-29 — Page 9

TRADE

THE CHINA MAIL, THURSDAY, SEPTEMBER 29, 1955.

SECOND THOUGHTS ON THE BIG CRASH

And New York Stock Market Men Say "1929 Was Worse"

New York, Sept. 28.

Next month the stock market celebrates the 26th anniversary of the blackest week in its history.`

That was the week of October 24-30, 1929 in which a record number of 57,256,000 shares changed hands and prices fell to the tune of $12,000,000,000.

Wall Street today' compared that situation with last Monday's and found very little in common.

One

putting up a mere $500. To

day,

to

in 70 per cent or $7,000.

group

brc

The 1020 market was based In 1929, the general publie almost entirely on credit.

blk was just one

of could buy $10,000 of stock by

speculators operating on a shoe string. Today there is a group

Who buy $10,000, the margin of strong Investors

building for the future, accord- ing

matitet observers, The current market break started from A very much higher level than that of 1920. At the record high for in- dustrials last Friday, the Dow Jones average

was at 487.49. The 1929 high made on Sept. 3 of that year was 381.17.

Yesterday

much Turnover today smaller than it was 26 years ag on the basis of shares Hated 1,000,000,000 for 1029 and

3,000,000,000 for 1055.

Market observers quote etter contrasts with 1929 in the world of finance and business:

Population Higher Today the population is about 105,000,000 against 122,000,000 in 1920.

Today the gross national pro duct of the US. Is running at a rate of $384,000,000,000 con- trusted with $103,800,000,000 in 1020,

Disposable income (personal income after taxes) is running at a rate of $207,100,000,000 against $82,500,000,000 in 1929.

Industrial production is far above 1929 and all blg indus- tries have grown to the point where they dwarf the giants of 26 years ago.

|

the industrini average broke to a low of 440.74 and closed at 455.50, a loss of 31.80 points.

Rails Up And Down

cause there was a much smaller number of shares listed and the smaller was much. valuation than at present.

The big break of 1920-1032, however, played havoc with the market which fell from $80,- 000,000,000 in value from Sept. $15,000,000,000 by 1, 1920, to

of 1932, a drop of mid-July $74,000,000.000.

The current valuation of all Jisted stocks is estimated at $200,000,000,000 for stocks.

COMMERCE

SECTION

What He Would HONGKONG Germany Doubles Farmers Look Back

Do With Higher Profits

Genova, Sept. 25.

Mr Den Takaso, JapanERO Government delegate and Parliamentary Vice Alinks- sér af Labour, told the 31- nation sextile eommities of the International Labour Organisation today that intoressed productivity was the develop- eméntial fo

mehl of Japanesh economy.

"But no intensified should be permitted on the pretext of increasing pro-

declared.

he

A particulari

Important that the profits

obtained from Increased productivity should bo shared equitably not only between employers and workers but also by the nation as a whole through Improvement of Heing conditions." — China Mali Special.

'AMERICAN

COTTON MARKETS

New York, Sept. 20. Cotton futures today See- sawed narrowly in one of the alowest sessions of the year.

At the close the list ruled. 8 higher to 4 points lower Open- Ing prices were up 4 to off 3 points. New Orleans closed 5 points lower.

Vulnerable Position Wall Street experts sold the big break yesterday came at a ume when unexpected

bad.

Operatiotis were mostly pro news-President Elsenhower's fessional, with mill interests luces-hit the market which covering against textile ortiers. was in vulnerable

Evening up in the nearby position brought on by an almost por- October delivery, following the pendicular rlæ for a long Issue of only nine delivery period.

notices, also helped to prop These experts sald

did expectations for the prices as market

needed a reaction al- heavier producer entries under BACK though they admitted the one the loan programme, which occurred was a bit On Oct. 20, 1929 the average

Now specualtive Interests felf 38.33 points to 24.04 and severe. They anticipate re- remained at a minimum. Out- on Oct. 28 it fell another 30.67 coveries and declines and then side traders wore preoccupied points,

n levelling off process, Many with the slock market and Yesterday the Now York look for a strong year-end rally fluctuations in outside commodi- market was knocked down by when year-end dividends swell ties. $11,000,000,000. It took a whole purchasing

power. - United that be-Press. 1039 to do

The railroad average hit the point since Oct. 20, highest 1020, at 104,29 a Weck ngo. Yesterday it touched 150.67 and closed at 103.13 of 11.15, a re- cord loss for that Agure.

week in

Yesterday's Market Movements

New York, Sept. 28. The stock market made a further strong recovery 10 day under the leadership of some of the best blue chips which, with yesterday's sharp rise, $4,500,000,000 of Monday's $11,000,000,000 loss.

erased

about

General Motors was the chief feature. To it went the dis-

first tinction of being the recover all its loss and set new high-at $145. up 5 points. It held 5% ot

|

Allis Chalmers

American Airline

American Cyanamide Co.

Am. Mach. & † dry. American Aletal mu American melting American Tel & Tel Anaconda Copper Amico Steel

Am. Sugar Rel.

American Tüb. “B”

Armour

Baldwin-Lima-tam.

Baltimore & Ohio

Bendix Aviation Corp. Benguet Cons.

Bethlehem Steel Bocina Airplane

C. IT Financial Corp. Cat. Tractor...

Corp. Cham Mahat, bank Chrysler Motors

19

Southern Railway (Com.) 2311 Standard Brandy

Standard Oll of Cal. 20% Standard Oil of Ind. Standard Ol of N.J

U.B. Steel

Westinghouse Electrie

tão

Observers looking for heavier entrics pointed out that the average prices for spot cotton in the 14 primary markets has been running almost 100 polnis-$5 bale-under the average govern- ment loan rate for those points,

Trading volume and 2016 interests in the Exchange today

open

Volume, Open interest

11.700

34,400 704200

40,200 1.800

4.GOO 92,700 2,028,400 bales -Unlled. FICER.

NEW YORK PRICES

New York, Sept. 28.

Prices of cotton futures closed today as follows:-

STOCK EXCHANGE

(From Our Correspondent)

Busine on the Hongkong Stock Exchange amounted to $500,000, Noon- quotations and the mowing's dealings...

SHARES BUYERS HELLERS VALKS BANKS

HK Bánk INSURANCES

Union Lombard

DOCKS, ETC. K. Wharf Dock Trovident

Wheelock

LAND, ETC.

HK Hotel HK Land

rts,

Really

RUBDER

Am. Rubber

.. 1720 1740 4 @ 1720

30 67.02

12

200 # 13 29.90

15.00 10, 500 @ 18,00 19.75 9.000,600 ₫ 9.80

18.00

2.10

Rubber Trust 3.15

UTILITIES

Trom ..... 24,20

Star Perry

Y'mati Ferry

C. Light (0)

ន3. : ផ្ទ

37%

130

1000

339:

300 € 24.30 1000 @ 24.20

145 141 118 117

23.40 1860 @ 240

800 23.30

It's Wine Exports

Bónus, Sept. 28. German exports of wine in 1954 were more double thana" Les: 1952,

than

In 1054 they totalled about 1,403,000 gallons of #tili wine and 315,800 bot- tles of sparkling wine.

Britain topped the list of customers, taking 27 per cent of German wine ex- parts. Second biggest buy- er was the United States with 22 per cent.

Value

exports of the WKE almost £3,000,000.- Reuter.

1:

On Their First "Free Trading" Year

Wellington, Sept. 28.

The New Zealand farmer is today surveying the results of the first post-war year of free trading in dairy produce and meat with mixed feelings. On the whole, he is satisfied-but there are some reservations.'

From 1936 to 1947, all New Zealand. butter and cheese was marketed by a Government

"

NZ Threat To Department. In 1947, the New Zealand Dairy Products Marketing Commission took over, but continued the wartime practice of selling in bulk to the British Ministry of Food,

Cut Car Imports

Auckland, Sept. 28. British car makers

today faced a cut of 14,000 vehicles in their exports to New Zealand next year.

can

The contract with the Miniguies of the industry set up a stry was ended last year by committee to make a thorough mutual arrangement.. So, since investigation,

among other August 1034, the dominia's things, into the suitability of the exportable surplus of dairy pro-produce for the world's markets. duce has been sold to private traders throughout the world, No radical changes may be though mainly to those in expected, but the industry will probably experiment for a start with a slight change in flavour and taste in a small amount of butter and also with improve- ments in packaging,

Britain

The Government was expect-

on the recom- New Zealand could have re- ed to get scon mendation of the New Zealand Jected, es Australla And Den- Board of Trade to cut by one-mark did, the British overtures vehicle imports to end bulk selling before Its 67230 third motor C. Light (N) 10 18.30 1391820 from all sources,

agreed course was rum. But her 200 18.2

This year 45,000 British cars producers took the risk. Electric... ** € 1000

Ameri- were being Imported.

cars will be cut by one- 30044

third, too. Only 6,000 were 35 1000 € 34,75allowed in this year.

The cuts will be due to de- clining oversens funds held by New Zealand,

London funds have been fall- 21.7021.56 125 21.00ing since New Zealand dairy exports went on the treo mar- 1000 21.88 let.-United Press, 2000 21.70

Macho Elec. Telophonia.. 34% INDUSTRIALS

Cement..... 87 80% 3000 e ma

Rope

17.10

STORES, ETC.

Dairy

COTTONE

Textus

Nanyang

Yangtze

Allfed

MISCELLANEOU

8.70 8.00 8.50

8.10 1000 @ B

WORLD RUBBER

PRICES

+

G

Now York, Sept. 28. Rubber futures today closed 85 to 110 points higher with sales of 286 contracts.

December Covering in the delivery and higher primary markets gave prices an up- word swing. About a third of the business was represented in exchanges of December and

contracts for May

physical rubber,

In the spot market, dealers estimated around 1,000 tons had been worked to dešléry today a good share of the with business beloved for the be count of factories,

Reported sales Included

New York Sugar Market

New York, Sept. 28. World No. 4 sugar futures today closed unchanged with sales of six contracts,

D

fob.

Reservations

The Now Zealand shoop and Not all last season's export bed cattle farmer is also look able surplus has been sold, but ing back on his first year since taking into account that which 1889 of free trading in meat. has been sold, and the prices it The results here have been has brought, and assuming that more satisfactory,

though again present stocks of buller and there are reservations. choose will be sold at current

Prices for the better quality prices-a barely justifiable as sumption

meats, with

cheese

as lamb. light- rising and butter prices falling weight wether mutton, and high --New Zealand will obtain Jual Frade beef, have been higher over £3,500,000, or 32 per than under the last year of burk Returns for the other? cent less than if she had insist-seling

have ed on the continuance

of the quailea

been lower. bulk selling arrangement for Overall, the return to the farm- another year at the prices which er has been higher.. the British Ministry offered.

Advantages

prices

such

But two developments have enused concern. One is that the cost of marketing under freo trading is much higher than f

Domestic No. 8 sugar futures That is the price New Zea closed unchanged to two points land will probably pay for pre- under bulk purchase, This

with no sales.

mature cancellation of bulk weil seen in the following figures: In world raws, dealers under-ing. But the advantages must be the retail price, in Britain, of

leg.

of New Zealand lamb rose stood Japan bought a email balanced bgainst 1. New

at 3.28 cents Zealand, in the words of the Government control in 1954 and

10d. д

lb. between the ending of cango of Cubans

chairman of the Dairy Com pound,

May 1050, The price which the Another balc of 8,000 tons mission, Mr W. Marshall got

received of Cubans was reported to "into open market relationship New Zealand furmer Switzerland, for delivery, next with the consumer through the rose only 4d.

as quickly is possible" was not trade

The otlier development is the and found out year but the price indicated. Futures:

"at the earliest date where we stood in regard Proposed increase of 5 per cent, from October, in shipping to competition from margarine." freights from New Zealand

These are worthwhile advant- Britain. What the farmers call the tightly controlled monopoly ages, but the fact remains that of four shipping lines transports market prices for bultar and

New Zealand farm cheese have dropped in the past abroad-a poltion Which con- producd 12 months. The Commission atrasts with that obtaining the sole buyer and seller of the Australia whore 20 lines farmers' dairy produce, this year make a loss of approxi-pete for business, m mately £4,000,000,

· Contract No. 4 (world) Oct.

Mer.

May

3.23n 3.21 3.21

July

Sept.

Spot (cents per Ib.

Contract No.

Nov.

March

3.23

3.20

3.62 3.30

May

Epot-icents per lb. elf .......... N¥ «x«duty}

5.421

0:55 United Press.

Singapore

one sheets at 40% Stock Market

with further cents,

will

com-

As akipping trughts on ex- port meat are over £4,000,000 a Meanwhile, the Commission, year ready, the increase, 418 the Dairy Board, and the form the New Zealand Meat Pro ers themselves are earnestly (ducers' Board strences, would | asking what can be done to im- [moan "an addition of: £400,000 prove the position." The first year to the nirendy high dost move came In August when a of processing, and transporting

Conference of dele- [export meat"-Retrfer.

doinihion

BP

were:

491

Month

138

Oct.

6216 Starling Drug Co.

021

Doc.

53%

Stokely-Van Camp.

1744

110

Studebaker-Packard Corp.

Mar.

10

May

14,400 363,400 14,400 483,600

T5

Swift & Co.

40% July

7.000 221:00

12

Texas Co.

100

40% Tide Water Asm. Oll

Oct.

4,000 128,700

30%

Dec.

4,000

13 Union Carbide

Twenty Contury Fox Film,

251%

Mar.

1007

Total

40

United Aircraft

Union Pacific Hallway

107

1847%

V.B. Gypsum

302

5. Line Co.

to Barden (The) Co.

L.S. Rubber

401%

a

Burroughe_Add Machine Canadian Pactite R. Case 13. 1.1 Co.

BO

Warner Bros.

the

West Va. Pulp & Paper ... Woolworth

Spot

33,701

Oct.

32.76

United Press.

Det.

32.83-06

November

Mar.

33.50

May

33.00€

and 47

July

37.29

buyers.

Oct.

32.17

Dec.

02.09

Mur.

38.07

United Press.

NEW ORLEANS PRIDES

Spot No 1 Ras were quoted

at 47% cents. Futurest

Batu Lintang Rubber British Borneo .Petroleum

Bynd

Opening

$1.53 40/

New Orleans, Sept. 28. Prices of cotton túlures closed today as follows

Déo,

48.90-47,05

Mar.

44.90

May

43.00

Confolidated Tin Bmelters... Fraser de Neave resplana Traser & Neave The prel

2/8

$1.77

20.40

July

43.00

British Government stocks -- possibly with support from the Government were very strong; some of the nationalisation stocks, like gas

Spot Oct. Dec. Mar May

23.25

Sept

Hongkong & Shanghal Bank 2015. Hongkong. TER, CENTE

Doc.

ECLOS

$21.87€

32.78

621721

$2.04

"VIETNAM” 7/0

"CAMBODGE" "LAOS"

22.09

31.70

22.00

July

52.31-32

Oct.

FAST FREIGHT SERVICE ||

stocit broker -

Dec.

Mar.

United Prem,

$13.80

414-419

Urüten Engkeers

“PEIHO” 11.00 INDUS"

sailing Oct. 17th

- sailing Nov. 7th

Wearne Bros.

caleneral Motors was the day's most nelive stock, followed by Chrysler, which ran up 3 points, and then by G. M. old Block.

The market took on a more normal appearance today, after the heelle pace of Monday's deciine.

| Colgate-Palmolive Cv.

Commercial Credit

Consolidated Edison Continental Oil of Del. Continental Steel Corn Products Crane Co.

Commonwealth Elec.

Crown Zellerbachi Cuban Ainer. Sugar Activity dwindled-with some Curtis Wright

the financial community even loend Alkal taking time out for the world Dupont de Nemours serics

In

(Dow Chemicals

beastman Kodak

opener. Tickers del after briefly hiz only opening. In contrast with yes terday's 19-minute delay for a

El Paso National Cus the Erle Railroad ...

Family Finance Corp. General Electric General Foods General Motors

three-hour period. There were few large parcels, in

com-

Gen. Pub. Util.

parison with Monday's hugo Gillette Safety Razor transactions tranging to 76,000 stares.

Turnover totaliod 3,780,000 shares, compared with 5,500,000 and 7,720,000 on Mond

were 1.230 issues traded higher and 205 lower, Industriais averaged 6.00 points higher; rails 1.17" higher and willies. 0.40 higher.

stocks, werO chemicals, alrerafie.

2

Glidden Co. Goodrich (B. F.) Co. Goodyear Tirg Heyden Chemical

Homatake Mining Co. ingersoll-Rand Mland Steel Co. Interchemical Carn...... Int'l Business Machines in'i larvester International Nickel International Paper Int'l Tel Be Tol Jotus Maswillie Co.

Kanzas C. Power & Light Kennetolt Copper Min

dis among industriala | Liggett Meyers Tob. Co. with the automobileLockheed Alretail,...

sicals, olla. Leown Interp. N...

Lana Star Cemont Cus Louisville Nashville R. Bethlehem Steel, Youngstown Lowenstein & Bons,

Inland rose more than Memul Iron Corp. Mirunesota Mining. Mission Development point and U.S. Steel Monnio Chemical Co.

Montgomery Ward Pont climbed nearly 5 Motorola Int points, Dow Chemical almost 2 Notions Dairy Prod.

Jersey Standard rose 2; Texas National Distillers Co., Lion Oil Gulf, Royal National Lend Dutch, Socony-Mobile, a point National Steel Corp.sia

thoma

points each, National. more | almost 1.

Du

to points,

New York Stock Exchange bond-volume was $0,640,000,

Asheritan

Stock Exchange

National Casti Beg,

New York Central aid

Olin Mathieson,

Our Elevators

Owen-llingle Clam Pacific Gas & Fried?

Pan American Airways

volume was 1,190,000 shares, Paramount Pictures

DOW JONES AVERAGES &

Day-Jones desing, averagos

today werebus 500 PA

20 rallayacak

13 utiikkios

10, bonds

Jčiamin, ruklires price

* Index (3.5)

Parks Davis Costei Penn, Brit Co... Pergy J. C. Ca.

Phulp: Morris Pallipe Priroče, 185,61-03 Procter & Gar

Closing Pricer

Publicker Pure

· Radio Cor

88

53

London Stock Exchange

London, Sept. 28. The London Stock Exchange was only moderately solve to

with a turnover of 8,870 sales, but the tone was not bad.

day

erkt National Transport, rose s

Singapore, Sept. 29. December one sheets sold at Brokers today quoted the fol- 40% and 40%1⁄2 cents, with later lowing stock prices: buyers bidding cent moro,

**United Prent."

LONDON MARKET.

Landon, Sept. 28. The rubber market was steady with spot. quoted at 41% pence

lb. Prices No. 1 Rae poti.

much od 18/6 with War Loan Other Cotton Markets Setement house term:

ལ

up 7/6 and Old Console up 5/~.

Speculators in fedustrial shares showed a marked preferetico

BD for

trose

isouce which are known to have attracted. Ameri- 5776 gan interest; Borax deferred Jumped 4/- to 142/-and Bowater 20%

gained 2 The blue chips in Oct/Nov. Reneral were quietly firm with a Dec/Jan. ally, few moderate rises of shilling

7031 or two.

BA

41

Dollar stocks wifero steady with General Motors up 10 points to 255/

Fordign bonda continued idie, Sole exception was the foreign buying of Costa Flea which lifted the 1944 bond up 28 10

Jan./Mar. Apr./June July/Bept.

General markais, cil basis., potet

Oct.

Nov.

Doc.

LIVERPOOL PRICES

Liverpol, Sept. 28. Cotton future closings, Ameri- can middling, in pence per were as follovis:

lb.

20.36

Mar/Apr.

May/June July/Au

-United-Props. SAO PAULO PRICES

New contract. May/June

July/Aug

São Paulo, Sept, 28.

Sao Paulo còtton futurb, clós-

United · Prest.

Personal Income Up In U.S.A.

Kempas

Lunas Rubber Estates Malayan Brewerien

New, Estandab. fubber Petaling Tin

Raffles Hotel

Bingapore Cold Storage South British Insurance ... $18.00 Straits Trading,

Straits Steamships

tod exdiv.--China Maui'special.

London Metal

Market

London, Sept 28. The tin market was toady. but quiet with a small turnover. of 18 tons. Other metal markets. were steady but Inpetivé. Prices closed today in sterling per long ton as follows—-

Tin spotumandag 3-month

Copper spot

3-month

Washington, Sept. 28. - Load and Half get it folk-108 Personal come in the United wanden verre Dedi

£70% and the 1011 bonds up ingy, in cruzime per kilo were States in 1954 totalled $285,368,- 2 and half sapl.

£3.10 £04%

Ola

were ermile, mos

mostly October

Bus follows:

December losing their early gains but Royal Karen

| Dutch held a gain of 10/- at May

2.60.2

|000,000, an increase of about 11.00 one per cent over 1959, the Department reported

Jub Coppers were firm with some In the United States, the Hood rises in South Africans,verige price of 10/10 middling United Press

at.

London Foreign

Exchange

Unitect

salaries, income

dividende, int payments, social, secir uta direct roller:

107 107

#fjölted Press. NEW YORK. FUTURES Say New York; Sept. 28. ENJA PROM of motal futures closed

n-couts per 1b.

age Rater

MESSAGERIES MARITIMES

[P.O. Box 53. Queen's Building / Tel: 26853

FAST: PASSENGER/FREIGHT SERVICE (5

Sth

salling Oct sailing Nov, 5th sailing Dec. Brd

Let US handle

YOUR

PRINTING

Too many proofs mean time wasted."

We grasp the point at the onset and

ONE PROOF generally stifices,

After that, our upstosdate automatic

presses make short work of the job.

current quote for your

SOUTH CHINA. MORNING, POST