Flight From Pound Halted London Market
Federal Reserve Report
Washington. Opt. 16.
America's faktorfes boom-
ed last month 0.5 nover before in history,
The
Federal Reserve Board reported today that Industrial production reach- ed a new peak in Septem- ber,
Average
weekly factory waren hit A new high of $78.
Slee) production rose to 26 per cent of capacity, Retail sales increased to a polni 11 per cent above
September, 1954.
The picture of thriving business
had also
bit darker spola, Some farm prices declined further.
Bo
did some Industrial prices.
But the overall economle situation appeared
reflect claims
ment
to
of govern-
that economists
business is good and getting
beiter—United Press.
WEEKLY
BUTLER JEOPARDISES POLITICAL POPULARITY IN NATION'S FIGHT
From Our Economic Correspondent
London, Oct. 16.
The abrupt recovery in British Government stocks this week belied the City's concern over the sterling area's recent trading deficit, but at least it reflected the view that Chancellor Butler is striving to restore an adequate surplus. by next
summer.
And that in doing so he prefers to jeopardise his pre- sent personal popularity in Britain for the nation's future prosperity.
success
T
With this belief shared abrond | posed denter money polley, with
from Dight
the pound Continued restrictions in certain America's import Money spheres of has now been halted. which flowed away recently due trade, con also adversely affect to devaluation feurs is likely to Britain's efforts to cam dollars. start trickling back as soon as
In Canada long term prospects also favourable, But just foreigners have more positive proot of
how markets are highly com- the
of the Chancellor's mensures.
petitive.
Foreigners, however, will also look to the economy mensures of other sterling area members, and New Zealdod, Their success is vital for the well-being of the whole
US TEXTILE including Australia
MARKETS
New York, Oct. 16, New business in the col- ton goods trade, applying both to grey and finished fabrics, developed at noticeably slower pace this week.
Buyer cautiousness, drat ap- purent when the stock market crashed with news of President Eisenhower's illness, gathered momentum when the raw cotton market rode for a steep loss on the back of a guont-sized crop estimate.
Seasonal conditions, with the advent of cooler mutumn-winter weather turning consumer terest toward warmer woollen fubrics, was another handleap.
But converters and millinen warned the current slow-down should not be taken as a sign of a definite turn in the optimistic trend apparent for some time. "Say the market is just a little bit more hesitant than it has
was the GOCTI,"
way one con- verter summed up the picture.
Backlog
Were it not for the big back- log of orders held by the mills on many standard contructions, extending through the #trst quarter of next усат. Sorne quarter paid the siluation would have to be appraised in a differ- ent light.
Thus, with
mis maintaining
|
הי zון
£300m Surplus
The
has
nin Chancellor's always been to establish a £300 million annual surpius.
This level WDS more
In Europe and the Middle East Britain must face a com- pletely new state of affairs.
Russia,
which pul Soviet
emphasis on science special
lechnology,
Burally, is joining the industrial exporting nations and seeking markets in Britain's traditional exports accus.
WEEKLY
NEW YORK COTTON
MARKET
By William T. Plunkett
New York, Oct. 16. The scope of her drive is stil to be seen. But it is significant Cotton futures finished on that Russia is no longer buy higher ground this past inning heavy machinery and en-week after racing up and reached in the year to June, listing old of technicians from down on the price ladder,
Then inflation overtook
Russia is offering covering a the West. the world, including the sterling | both to the
range of $5 a underdeveloped countries, particularity in the bale. Middle East.
1954.
Aren
Exports to non-sterling coun- tries rose by only five per cent while imports jumped 11 per cent
Shipping rates increased. Whereas Britain formerly wel- comed an increase in tramp freight as adding to her in- visible exporta she is now
adversely affected by a rate in-
a
chartering nallon and 18
Capital expenditure abrond by some of Britain's greatest concerns, including her oil com- pardes was also ribing.
AL
export
At the same time Britain was meeting Increased competition from other industrial nations in feld and facing the rising wages and other costs at home.
Adverse
trends joined 10 make themselves sharply
felt only in the second half of 1954 and into this year.
Is Needed
Territories enriched by huge
Scoring substantial #ALIS
for
oll royalties are fortunately in the first time slace ourly Sep- a pasion to disregard Com-ternber the 1st at Friday's close munist economie pressure,
ruled 13 to 95 points-85 cearts to $4.75 a bale-higher than the preceding week.
But countries like India, Egypt and Syria are in bad need of Industrial goods and technical help.
Another Factor
Nearby deliveries led the up- swing and enabled the later de- livery to score a fitodérate covery after dipping into hew
In consequence, Mr Butler in seasonal lows. his export drive may and an increasing
息
number of goods After reacting around $2.30. a from Russia in the countries bale, the market developed whose imports wire once ex-steadier, tond, with traders com- "made In Britain." Ing to the conclusion that a good clusively The products from Germany,
part of the increase has been Italy and America are already discounted after five weeks
sagging prives.
there,
yot
pt
creased hedge Bolling dryd
The Chancellor
However, the railles inst op- another factor to reckon with-
the form of in- lalling prices of commodities position in which have recently been joined in their decline by the "Indus-liquidation for foreign accounts. trial" commodity group which had hitherto
the withstood
million pay- Now the £300 ments surplus, which is Mr Beneral trend. Butler's ambition, is regarded with lower
as
prices British
of goods more
an absolute minimum for manufacturers should produce the sterling orea's stable the number economy. It is needed lo; repay
epay cheaply.
|Continuing uncertainty over the future gövertamén policy Of exports and price support pom licies were selling incentives.
Slow-Down
A.N.Z. BANK INDEX OF AUSTRALIAN FACTORY PRODUCTION
Adjusted for number of working days in chch month. Bane 1948-48:100
ANNUAL FIGURES
Al Building Materais
Az Timber Ad Ird and
Stavi
MONTÚLY
1054-03
40-50 50-81 253-02 52-53 53-34. Dec. Jan. Feb, Mar. Apr. May
104 110 116 112° 131
1331 1401 120 130 140 1331
As Non-Ferrous
Metals
TOTAL GROUP
A (c Materiale)
BJ Motor Vehicles 12 Household Machinery
B3 Industrial Machinery
350
Metal Products 03 114 115
בל!
11:3
Factory
Groups
ALL GROUPS
304 110 123 123–142 100 100
119
103 172 129 154 117
* do 103 124
152 109 140 145 191 130! 124 102 121
120
103
271 101 101 101
124 120 110 1bo (0) 1121
102 110 110
122 138
144 134 130 137 1307
1371
111 151 367
$35 133 140
171 221
130 100
00 110 118
14 Millfiedus
72
234 173 230 201 740 240
274 203 10B
137 179
147
65 103 11 好吧 E 104
B30 117 17 13 117 110
110
TOTAL GROUP
B (Metal-
100 133
133
110 141
03
72
111 1
ca Kayon
Texůjes
118 180 107
70 04
104 131
303 350
TO 77 TO #1
11 130 140 1435
277 242 294 291
13 70
13)
311 241
Total
Texines no 100 01
102 100
cs Clothing
131 100 100 107 104 125
110 1:0
TOTAL GROUP
C (Clothing
Texilla) 300 100 101 09 120
120
101 113 117
Di Dairy
99
123
114
Producia
100 104 PI 102
D2 Cereal
03
B7
07 106
110 107 100
UZ
113
T
102
90 102 103 103
D3 Full &
124 116
101 150 103 104 117
114 114 130 103
118 112
working Industries)
Ci_Woolien
Texti
C2 Colton Textil
Milling
Veritable Canning
DH Meat
Canning & Curink
13
15 Other Food 102 100
Total Food
D Breweries
D7 Tobacco
TOTAL GROUP
D Food,
Drink, and
Tobacco)
El Chemicals
& Chemical Fertilisers M Paint.
cont
TOTAL GROUP
(Chemical
& Allied Industries)
100
107 110
103 109
88952
173 137 151 152 141 142
02 112 100 102 100 100 118
170
179
213 *
A8895
1 100 114 120 119 132 120
788
SER
101
52533
133+
113
1141
139
Unsettled
From Our Own Correspondent
Lontion, Oct. 16.
After earlier gains last week the London stock market closed unsettled on Friday with prices only slightly up on balatice,
Wall Street's decline which observers believe will continue and uncertainties over Chancellor 'Butler's future economic measures to tighten Britain's economy kept investors on the sidelines.
Brok Cars foreste no major improvement until the result of Mr Butler's squeeze and Kerth scope for industrial pro- fits become more apparent,
GOMTIQ
псаг
They are, however, advising ellents not to dump good stock on an unwilling market during the current recession which has brought some blue chips back 25 per cent from their rrent high levels,
The City
Is confident that the Chancellor's present mea- sures are a
correctivo proper and that after the present easy trend the market will resume le bull run when the national
economy
firm basic.
has been set on a
In the meantime bargain hunters
un- and tired bulls, able to get extended credit, pre likely
the to make
markets
seesaw,
War Loan closed at £70, rise of one half on the week.
Foreign. Bonds
Slab Zinc Stocks At
Low Level
New York, Oct. 16. Slab zinc stocks held by US smelters at the end of September were at the lowest level since May, 1952, the American Zine Institute reports.
The end-of-September stocks were 42,187 short tons compared with 40,084 (revised) a month carller and 175,605 tons at end- of-September last year.
Except for a slight increase in July, slab zinc stocks have de- clined uninterruptedly in the Foreign bonds were feature | Inst sixteen months as a result In steels, engineering and of Increasing domestic consump- heavy electricals midweek rises tion as well as Govertiment national were more due to bear closing purchases for
new buying. United stockpile. States finished at 41s 101⁄2d rize of 2s 10d Vickers were
than to
134 134 1211
tho
141
181.
20 135
IRA
197
110 123 128 137 13 160 182 150 167
SER
F1 Rubber F3 Leather F3 Floor
114 130
107
181 100 201
104
1:0
201
00† 1241 001 871
Coverings
$2
12
105 08 114 137
IN
151 150
710 213
921 122†
110 169 152 158
TOTAL GROUP
103 711 112 100 130
P (Mis-
cellaneous
Industries)
130 153† 1047 1041 100 1831
+ Preliminary
New York. Stock
Market Review
By Elmer Walzer
New York, Oct. 16. Stocks lost ground again during the past week --the third weekly break in a row.
debts; rebuild the Fold and But a wide range including dollar reserves: allow for wool, rubber, tin, jute, tea and A slow-down in textile mOT- investment in
cocoa are not exports from the ket activity, Commonwealth
along with the a firm front on prices, buyers development;
cushion com-sterling orca, Lower prices mean erratle notion of the stock mar Ductuations which can lower sterling earnings. So inket and retarded mill demand
Since President Eisenhower's illness the sufficiently covered for the time rapidly alter the trading post-planning the future moves Mir or spot cotton were being decided to mark time,
of the Common Butler must keep his eye on the handicaps.
other market has lost 42.77 points in the industrial watching events unfold on the tion of some
uffset Commonwealth's swinging com- national political scere and wealth territories; help
average. It was down even further at the lows the difficulties caused by un-modity prices. Even then his pending a better view of price-
Late in the week, the market on Tuesday but rallied sharply since, notably last forescen political events or bad bist dollar earners can lose their shaping factors, like the
value if they become overpriced various quartere the higher harvems. cotton trend and
buyers Wednesday when industrials rose 6.99 points in The
further and manufacturers discover sub concentrating on the nearby the Dow-Jones average. Chancellor's scheduled to be in wage rates
measures the nation will stitutes.
livēries. December operation on March 1.
bdeltfakts hear tham after parliament
developed independent strength meets
October 25-will
The October come ALA time when other countries, including the United States, are acting to fight in- flation and "blow off the froth" 100.
Fear of increased imports of lower priced Japariese Colten goods tohilnue to overhang the maricet.
on
While admitting "his polen tial threat is a great" one out-
Ia America "server remirked he has been tin- successful in securing any real finance the bulk
quantities of standard
make
purchase have by the Federal some goods have come in, ho to go easy on the
business.
Japanese print cloths. While
bankers
who hire
of the been requested Reserve Bank "never never"
added, he felt the quantities At present nearly $40,000
to à
were still relatively small.
million is out on loan—for any-
# mangle industry thing from other Disewhere, spokesmen continued to call for motorear
Following the Réserve Bank's import quotas on Japanese Im-
move the other banks are abk- poris,
ing for one third deposit Instend Mr William C. Lall, with the of one quarter, And they are Graniteville Co. said lower giving 30 months to pay hstead tarifs "could bleed the textile of three years, industry in Borth Carollah; Will Sifect may still look can dry it up, and inhaled despite recent falls. white; eventually destroy It.United But it
fa noteworthy Preos.
Anderleen Investors are recolling that shares on Wall Street are traditionally experied to sell at about 10 times cathings in- stead of 13 times as now.
The Bank Of England Statement
May Decline
that
met
Jap Textilexpired
Exports Should Be
Shifted
renewed
support from
with
A
thb
the
September slab zine produc- 36s, a rise of is 3d, General tion was 83,448 tans against Electrics were 80s 6d, a rise of 84,874 (revised) in August and ls 3d.
a monthly average of 72,853 tons Olis showed mill wins over in 1834. Allowing for metallur
conversion gical
loesca, week in belief that the September production of 83,437 recent favourites were oversold. short tons comprised 31,792 Shell dosed at 1243-00, a riso special high grade, 0,455" high of 29 on the week.
grades, 1,704 intermediate, and 41,426 primo western.
September
shipments werd
Kaffir and other speculative shares were easy. Operators were selling to raise cash and with no buyers in London, or moderate at 87,305 Johannesburg prices eased up to 78 od on the week in the case of Anglo-American Corporation
Coppers were caster on reports of forthcoming bigger supplies.
Arusha is la 42d, Bird 8s 9d, Central Line is 6d, Consolidated 1 fet 3d, DWA Is Dd, East African 12s 0d, KINA 29 4d, Tanganyika 160s, Kentan 42d Unwita 6s d
PENINSULAR
13
tons of which 83,604 were domestic, 1,274 export and drawback, and 2,427 Government account. The August shipments were 90,080 tons comprising 87,042 domestic, 885 export and drawback, and 2,153 Government account. Un- filled orders at the end of Sep- tomber dropped sharply to a new low level for the calendar year compared of 52,278 tons and
of the end with 73,032 at August.-China Mail Special,
& ORIENTAL
QUIS NOS SEPARABIT STEAM NAVIGATION COMPANY
R.M.S. "CARTHAGE"
For the week, however, the tributed the break early in the SAÏLS: average closed at week to profit-taking, by those delivery industrial
444.68, of 0.73 points from last wanting to get out of the
Friday's close. Rais werd at market. 148.47, off 2.58; utaitios, 01:48,
Buyers in December diy
cussed the possibility for stiffen-off 1.06; and 5 stacka. 158.54 Bargain Hunters
hg prices in that sector on the of 3.18. assumption that, lower
At the lows on Tuesday, the open market prices will absorb most market showed an overall loss
The subsequent rally rovas of the current ginnings. Ohio in valuation
of $17,000,000,000helped, along by bargain meat- Coterie reasoned that with the from Sept, 23., Since then it re-
ors who covered commitments, futures market 100 to 400 points gained nimoat $2,000,000,000 of and scene by bargaina looking below the loah equivalent, the decline. Ja ünlikely that corticated stocks
J3
will increase of these discountà.
F
... Third Monday
for fifth lelds and hoping for increased dividends later this year.
anti- The market analysts In fact, there is reason to be- lieve, he added, that the our-
cipated further selling on rises Pinehurst, N.C., Oct. 10.
The Monday break rent certificated stock will bo
which but thuy foresaw an eventual Governor Luther Hodges aug- rehleed sharply ・・ in coming amounted to 19.27 points in in-levelling off in a new base for a gested today shifting Japan's weeks, with the supply moving dustetals and 403 points in rails further rally. None, anticipated textile export trade to "under-into export channels-United was the third Monday drop in an bear market at this time. privileged nations who would be Press. In a bellor position to buy these goods."
Speaking to the North Caro- in Textile Manufacturers A6- sociation, the Governor said the recent tariff retuction on Japan-
the textile imports affect Me and welfare of the entire South.
Hò sold there is a "grent area
row. The first one came on Business nows was scon
President
The
wildest docili blico Oct. 28, ahead, Car loading dipped The Bank Of France 1929, also a Monday.
Statement
OTI
NOTICE TO PASSENGERS
BAGGAGE:
Friday, 21st October, at 12.00 noon UNITED KINGDOM via for the Straits, Colombo, Bombay, Aden & Port Said.
Passengers are requested to send ALL BAGGAGE to the Hongkong & Kow- loom Wharf Co.'s Godown at No. 2 GATE, CANTON ROAD ENTRANCE, by Noon on Thursday, 20th October, SPECIAL NOTE: With the exception of hand packages'
carried by passengers themselves. ALL BAGGAGE must pass through the Wharf Co.'s Godown for loading on board by ship's slings only. Passengers should embark between 9.30 am. and 11.00 a.m. on Friday, 21st October, 1955.
Monday, Sept. 20, the day, after highly encouraging, Steel open- EMBARKATION: I was antlout whower's illnesstions were at a record change-
It was
over. Electraity output moved sharply the week but were, There was a sharp loss and aahead on the, year, Retall rade) subóéquéné fecovery from the on the year and wholesale trade love on Tuesday), a sharp Pally was higher United Pres. on Wednesday Kihl irregularity on Tiniraday and Friday,
Du Pont was the wide over US
covered all the form and closed The week with a half-point rike. 201,2,1,de Ver? taw vitser jääven Marktged
Frades
RAW COTTON
EXPORT
MESSAGERIES MARITIMES
Queen'”. Building Tal: 26851" PO. Box 53
FAST PASSENGER/FREIGHT SERVICE How York, Ou, 10. "CAMBODGE" Raw, cotton expqits, by de "LAOS" lination as reported in bodes by 14,574878,000
"VIETNAM” Dosing Pillplane, boughs Alt, the Now York Colion Exchange add,000,000,000 draft and United, Aircraft wire for the 1966-60 season to Oct. 3700.000.000d by a frige order ben 11 were as follows:
Pan Amertekets - World AllwayeE 1,128,508,44K ABS | Đor 45 Jat: paarsóu which gu will: Contmport
[cut: New: Tack to Miropu trajan
The Banit of Frühes stolament | of the work. On Monday it lost for developthorit of textile for the week ended Oct. 6, reads 94. polista, zubeequently it re- With this sentiment the price ode" in many
undeveloped as follows: decline indy well continue. In areas of the world. London, Gel. 18.
vestbes hind already discounted
Governor Hodges, described the Total gold holding, The Bank of England state ulur expansion and increased work of a recently-create com ment for tile wick, Oct. 1 proille under an Elend emission to study the effects on sight alice
Desirenelas reads us follow:
publican administration. BURA
the State's economy
the abroad in EPU Sterim nees prospects for 1980 still look Japáncos mult cut. He said he Advance to trail- 1.787.90714: extremely favourable but the believed at
live tape, Jud Total bala political horizon has become useful moans of educating the
Profient's by the
and our elected repro- |flask, pote) As publie sentatives" to the "gravity or Consequently Britain may be any
Current Accotanta decision Solving the
hand-degoesta amrooted," The gradually. im Bolah,” United Prom,
Note les clrculation
Public deposite
Priváté dépokšta,JAKKE Gigveranent modified.
Other Pour Lamp Kengke'.. Recefpi
Natio
12,000 | čloudeil
Libnated Prob.
Hytti servo DS EN
United From
salling Nov. 6th Balling Dec. Brd Bailing Dec. 81st
FÁST FREIGHT SERVICE
19.414 00.000
wwal Biscegt exparta said the
Ory r Chesada bul
Deroe period "best
*PEIHO" "INDUS'
***. Bailing Oct. 17th
Walling Nov; 7th 2 accept cargo for Hamburg:
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