1955-10-24 — Page 9

THE CHINA MAIL, MONDAY, OCTOBER 24, 1955.

TRADE and COMMERCE

SECTION

Pagē

Supplementary Budget Speculation London Markets

Harrogate Conference

Criticised

London, Oct. 241.

The Manchester Guardian said yesterday in an edi. torial hended "Coltons Future":

"Lanenshire has been getting a "k mare among the polt- Ucians Intey for plate

medies for declining trade The grievances cu be well enough understood even i they are

SOME MEASURES ARE NEW YORK Formosa's Ban On

CERTAIN BUT WHAT ARE THE SURPRISES?

By Ronald Boxall

London, Oct. 23.

The announcement that Mr Butler is to introduce a supplementary budget next Wednesday took observers completely by surprise. Previous measures of restraint- notably the credit squeeze-were in the Chancellor's own words beginning to bite. September trade returns showed not easy to remedy. This encouraging improvement over earlier months and terms of trade were moving back into Britain's favour. Sterling was on the upgrade and all in all Mr Butler's assurance that there was not a crisis appeared to be more than a politician's wishful thinking.

ever, is unly one side of the a picture. The other Was given at the Colton Board's Harrogate conference at the weekend

12

-

"Lancashire is it to be saved by tariffs or quelas, but EL maintain a fall-sized trade alot, haproves He trumpetitive Geney bu!

bying besiten on price. aflen by Bu how

AINI Ris

is possible jo mekte savings in production criste that may make all thas difference

.but

every burly agreed th Lanca dure cannot long as a single-shift system worked and even a double shift system (uf 37'4 hours and at 20 per cent increase of wager) 1 not everything

Mr

compete si

TIMES COMMENT

Cottur

a

Up to the time of the announcement financial observers had all but convinced themselves that the next vast disinflationary attack would be on government's own

in subsidies Cut spending programme.

certainly on housing; possibly on agriculture--was openly canvassed. With the inflationary situation responding to past treatment this was all that seemed necessary to keep the national economy on the right track.

1k

"

1: ken

Ary cul 11

the

or

To

10

economy

COTTON

MARKET

REVIEW

By William T. Plunkett

New York, Oct. 23. Cotton futures trading this past. woek became more two-sided, in a less) active market as traders pondered the question of future price supports in face of a steadily increasing national surplus of ruw cotton.

At Friday's close the list ruled 30 points higher to 41 points lower, or up $1,05 to off $2.05 a bale compared with the preceding werk

While

the nearby months, with December in the head, kept edging higher, the nex crop months kept working lower. Tue

discount on new crop December under the current spet month widened to $18 a bale, an Increase of $3 for the week.

Strength in the current months was coupled with: Shipper covering against ex- port commitments, possibly Korea; 2. A steady réduction in the stock of cotton avail- able fer contract delivery; 3. A belief that supplies in mercial channels are apt to tighten up when the peak of the harvesting season is over and producers, speed the rate of entries into the loan,

1.

com.

/

Canned Fish

to

1

Tokyo, Oct. 28. Japanese exporters of canned fish have asked the Foreign Office

open talks with the National Government on Formosa's banon, canned fish im ports, it was reported to- day.

Formosa

WILL опе of Japan' biggest markela for olamed Ash parti- cularly sardines and mackerel before it banned imports early last month,

The Formosan restriction canned fish Imports

011

has hurt the Japanese all the more because at least two other Southeast Asian nations have done the same,

K urma and Indonesia

recently dropped their Imports because of tight foreign currency situation In the two nations.

Japan last year exported 68,275 cases of canned fish to Formosa--United Press.

HONGKONG

STOCK EXCHANGE

(From Our Correspondent)

Got A Shock

From Our Own Correspondent

London, Oct. 22.

London Stock Exchange was marking time while it waited the announcement of what it thought would he a comparatively mild economic measure next week when the news that there would be an autumn budget burst on them.

The market immediately revised its view of what the future held. If the government con- sidered the situation warranted a supplementary budget-an "emergency" budget as it was termed in the newspapers-apparently the economy was in a worse state than the market had thought.

And since the budget would be designed primarily to cut back spending-both by Indus- try and the public in general- It would kicvitably have an adverse effect on company pro- fits and dividends. 50 on Thursday Industrial shares were marked down sharply-in some cases by as much na Os-and the Financial Times index dropped 13.6 to 183.0.

But whe the prospect of determined

measures to curb demand and stamp out inflation held nothing but gloom for in-

Free World

May Not Need US

Cotton

Washington, Oct. 28.

The International Cotton dustrial shares had the oppo-Advisory Committee today site effect on gilt-edged securi-forecast the possibility that tles. For anything that helps to in another two or three years Irradicate inflation, it Was

argued, must bene holders of the free world's need of cot- fixed-interest securities. So gilt-ton might be met without edged advanced all round on United States-grown cotton. the news with some stocks showing 10 gains.

Noon morning's transactions:

quotations and the Which

Biggest Falls

The committee, composed of representatives of 82 cotton pro- ducing and consuming countries, soid this in its October review.

Noting the "seriousness of the present world surplus" of raw cotton, the committee said cotton output in the free world outside the United States, had

"almost doubled” since 1947.

weeksHARES BUYERS SELLERS SALES

The biggest price falls among Business done on the Hong-the industrials were suffered by

these shares such kong Stock

an building Exchange this morning amounted to $980,000, ectrical equipment and stores

hud let a short-lived rally earlier in the week.

The lower prices some buyers on Thursday

but total there was no follow through" to this demand and only a of the day's losses gained.

LOAN ENTRIES

Loan entries for the ended Oct. 14 were 595,243,780 bales, the

greatest amount for

The

to dreiston

have an (And so there is, But who are ¦ the

that which The London Times. JFA

budget throw public the chief culprits: government involves the creation of new vditorial un the

sume subject, open into a state of complete themselves, Industry от the credit for such things as new Fold:

nfusion. For a budget at this public! Most commentators felt plant for industry, new factories, "AL 12

me of the year can mean only that they are to blame.--and new refrigerators and motorcars Hoard's

for the public. con thing higher taxes.

in that order. annual conference at Harrogate

mention Just where the axe will fall

these things. Thomeyerolt

Apart from the expected an reaffirmed

the however, is to show how tricky Measures that with

mauneement of mystery. courageous clarity

For housing

in- subsidy-which

the present situation is. government's determination no!!vero considered up to the an

to control investment to alter

their policy

in inter-cnt of the budges could cidentally will be fought tooth actions

by ministerial fund nail nailonal trade to help the cotton "

by

Socialist either in new industrial capitat

durable goods- consumer industry. The cotton manuface order and would not next to be Opposition-little if anything is

to bili. embodied

put

it mildly, be in the finance

likely us be learned about the would disturberi by furers.

Imports from indin and Hongkong and This does not mean that those government's plans for pruning politically embarrassing for the But hot be taken its own

That Conservative government. expenditure. by the decline of their exports,easures will

start the more protection and the the one thing on which must await the normal annual that would not matter if it was abandonment of the polley of nast

are agreed is that bud

the right thing to budget next spring.

ed on Aug. 1. Impoundings, so far of 760,000 bales are more than preference

will announce a cut Butler

In any case the sort of cuts question is: is it? Commonwealth Mr

But in the housing subsidy.

A cut in industrial investment double the amount at the same suppliers.

it that are considered most likely This would be con- does not mean that the govern-in government

expenditure de could be brought about quito

time last year. Statisticians trary to the government's Com- monwealth

ment does not have other sur- not need a budget to usher simply by withdrawing or figured about 16 per cent of policy (and would rises up their sleeve. All that them in.

པ་ endanger

So the burden of any reducing investment allowances the ginnings so far are under other preferences} is certain ls that they won't be rew restraints and to their general trade polley

Imposed next against income tax

Dock at present the loan canopy. Moreover, the week must fall on industry or granted to concerns that invest government 'at the popular.

end gymbolised by the recent

in new buildings or equipment. October the public or both.

will take over the newal of the GATT.

And If this were done on a 1,050,000 bales from the 1054 selective baals so as to dampion programme. down the least desirable forms

seck

ta

and

this trude

re

}: 10

policy

Index!

it is nevertheless not his reasons,

Extra Spending

do.

any week since the season The

of

Informed sources also report-

of Investment, it might be justi-ed offerings of spot cotton have fed economically.

Alternative

To discriminate

between are

not been as free as a few weeks ago. As a result, selling prices under the loan have narrowed, and there are Indientions of an active, Holding movement among

The Census Bureau reported domestic consumption raw

consin type of investment and another, the growers.

can

however,

13

of

BANKS

HK Blank

1700

INSURANCES

Union

Lombard

Underwriter

940 930

13

10

1004715

78

attracted

AV Cre

le

Kol

season

The committee said that the this of colton supply

"ohould

..60 axcord million bales" and a cotton surplus had developed despite, a eigilficant gain in consumption, While warning that the pic-

the ture could change radically.

By Friday investors had over the initial shock 'but DOCKS, ETC.

tendency again wos for indus- before the end of the season- K. Whart...

trial shares to fall and gills to in July next year-the-com- 201 201 m 29.20 rist. In other markets olls had mitter added that prospects Provident (O 13.00 15.00 1750 15.10 much the same experience

500 or 15.81 industrial shares,

31.43 9.35 17000 or 11⁄2

but

as were that free world consump- Whealock ...

earlier ton would continue at last losses of Up to a Gu were 833son's level. LAND, ETC.

partially recovered and the RS Hotel,.. 19,30 15.00 400 101

leaders finished 2s down, on HK Land ...

Thursday and steadied 63 0535 2000 «^ 136

further

nix 37.75

Humphreys Realty

RUBBER

A. Rubber Trust.... UTILITIES

224 67 37.24

83 63.50

next day.

200 or 21.45

200 30

20.00

2.20 2.30

Narrowed Down "The object

of GATT increase world trade by reducing Normally budgets are looked trade barriers

mixture of

both adequate forward to with o

Excessive spending that safeguards but progressively, apprehension

pleasant these sectors und

of the economy Because Mr Thorneycroft has anticipation. There Is always have been indulging in is of u been President of the Board of the fear that something will be purticular type. The trouble is Trade since

Conservatives

ves taken away, but that is usually not so much, they are spending the returned

office in 1851 tu

he balanced by the knowledge that more on current bears the brunt of al theomething may be given back. Industry for more raw criticism of

would brand the No such

uncertainties exist nud the publle for more food and from

those whom it hurts and shout next week's budget. What-akithing and so on. Indeed

government in the eyes of many IL who

t be con-debatable ever IL

it 1 won't be con- disagree with

whether this sort of contain's

of of their supporters es little more extra spending That

automatically extra

be called nan Socialist "planners." The down the

alternative to enforce a general feld of "excessive" since it is a

a naturai 11 doeă not corollary of healthy

cut in Investment throughout the expansion

C. Light (9) the task of trying to and therefore (within reason of economy by fiscal means on top simplify vigorous critics at

the Harrogate is "murdering

monetary entielpute the Chancellor's pro- course) socially and economical-f

previous restraints might prsals.

ly desirable. The sort of spend-

to the Conservative Clearly he believes that there ing that is less desirable in the acceptable "In the later stages of the is too much spending going on, present over-expanded state of

Uneorists. But n Harrogate conference more was

at best it would restrain demand at the expense fortunately heard, from mem

of slowing down Britain's efforts bers of the industry, of

to make herself other side of the picture, of the damage which the industry is doing to its own prospects by its stolid resistance to change," -United Press.

those

But

policy only

the

more

that of the whole Parrows government which according to speculaties

cotton industry."

the

the

Bowaters To Consolidate Capital Structure

The

London, Oct. 22. Bowater

+

but

New York Stock

Market Review

By Elmer Walzer

New York, Oct. 23.

Stocks registered their first weekly advance this past week since the market fell sharply on President Eisenhower's illness.

res

be

more

cotton in September at 874,837 bales compared with 817,459 bales used in the same Consumption period last year. since August 1 totalled 1,602,064 bales compared with 1,485,221 bales at the same period last setson-United Press.

economically Singapore Rubber

stronger in the highly competi Live world and at worst it might induce more disinflation than is aither proersary or desirable,

Market

Singapore, Oct, 23.

An enforced cut in the public's The market opened easier on spending on durable consumer Saturday and steadied on short goods is also open to objection | covering inter. Future closings: though for different reasons, No, 1 rubber per Ib. Insofar as the boom has been caused by too much spending

Nov.

on the hire-purchase plan it will No.

correct itself

sooner or later

L.DA 3.00

Tram ..... 24.40 21.30 2830 or 2435 Y'mati Ferry. 114 115 100 e 115

23 23.20 X 60 23.10.

Mines improved after a dull start and plantation Issues in showed no deflalte trend.

·US RAW COTTON

EXPORTS

New York, Oct. ·23. C. Light (N) 17.80 18 2006 or 17.90 Electric ... 4234 43 1300 43 Raw cotton exports Macao Elec. 11.60

destination as reported in bales Telephone. 35 151 2000 er 3nts by the New York Cotton Ex- INDUSTRIALS

|change for the 1955-50 season to

October 10 were as follows;

Coment Rope

STORES, ETC.

371 3724-2400 ziz 17.10

Britain... Continent

Orient

Total for Benson

Same period last

Canado 20.10 20.40 700 No 20.40

14.70

L. Crawford 37%

Dairy

Watson

Kwong Sang

Hong

102

COTTONS

...... 5.03 0.05 19060 1 0

Textile Corp 1.80 12214-12215 12116-1215 | MISCELLANEOUS tuiquated Allied

120-1201

118-110

112-113

Singapore

Dee. Jan

2 rubber per Ib Nov. without official intervention. For No rubber per 15.

Nov. money that is earmarked for No rubber por lb. future

Nov. instalment payments can not be spent other things. Spet rubber unbalod... 12214-1231

101-103 The gain which amounted to 13.79 points in and this must relieve the pres- No. 1 pale crepe

United Press. the industrial average was the best for that figurere on too much money chasing

few goods. since the post-election boom of 1954-the week However, it is the Chan- ended November 5, 1954. The average closed at cellor's intention to disenarage The Bank Of England Brokers today quoted

of goods like re

order to leave more free for

spreading frigerators and motorcars

A Possibility

Blanket crepo

Statement

133-134

London, Oct. 23, The Bank of England state- ment for the week ended. Oct. 10, rends as follows:

Nete in circulation..... Public depot Private deposila na Govemment sonturillos other securities

o floodipts

Stock Market

Singapore, Oct. 24,

following stock prices:

the

Opening Datu Lintang Rubber Co.

Ltd.

.... $1.00 Petroleum

| British. Borneo

Syndicate

Consolidated

Ord

38,491306 Lunas Rubber Estates Lid,. 113

| Malayan Breweries, parking United Pros. Now Borandah

Ltd.

13,120,065 Hongkong & Shanghal Bank- 325,517,300 Ing Corp.

Hongkong Tin Lid, -271,114.054

40,009,00% Kempas Ltd.

Tin Belters

29/ Traner & Neave Ltd, Ord... $1.07 Sterling

Franer & Neave 715 cum, 1,784,295,00 pref

$0.20

$900 7/0 $1.45 $2.50

*$3.40

Rubber

$1.50

$1.40

#2.40

$10.07

$20.00

458.47. organisation The rail average closed the well as high military orders. exports, he could do so without have announced sweeping week at 181.45, up 2.98 points, Motors were boosted on as the budget. The only measure plans to consolidate the capital best gain since the week ended resumption of heavy produce in this direction that would re- structure, including 100 per cent September 9. Ulties finished tion: Chemicals with high quire parliamentary sanction is stock dividend

ordinary at 82.61, up 1.03, their best rise earnings outlook featured in the introduction of a completely stock.

since July 22, 1935. The 05 soveral Gestions. Oils were new purchase tax rengo. The plan is designed to in-stock average finishing at 102.59, bought heavily

by investors crease administrative efficiency up 4.03 made its best gain since who believed they were be- and facilitate financing future Mirch 4.

hind the market. company expansion.

A further possibility that has There were good, gains in been canvassed is an increase

Textile, tobacco in tax Issues of tho

on distributed profits the parent company at a special of highly favourable carning building. tolovision, electrical designed. to restrain dividend meeting to be held on November reports and dividiend actions, groups. Utilities were lifted Inte would be that this might douce The Bank Of France Su Bills Insurance Co.

equipment food, and mercantile payments. Politich) jústinention plus more to como, Business The main provisions of the

In the week by special strength the trade, unions to be more plan include issues of 100 per held high. Investors returned in two lastes.

to tho

restrained in thet buying side.

their wait cent stock dividend on ordinary

Monday's market revealed a

Wall Stroot experts said the funds. But economically stock,

consolidation of three dange of first of the week market performed very well.

· ឆេង would unjustifiable. United Kingdom operating sedivity. The market broke its Many of them felt that, barring Paper mills con

into one

voted upon by stockholders of

Trading declined from the The proposed plan will be recent pace.

Also there was a big batch

15.

company, simply at the flux of sharp Monday declines come dividend disappointments, | opini itt với Chancestor's field,|

Statement

Paris, Oct. 23.

mice at

The Banic France statement ane and Industriels rond more than the high level of cornings re- rotete erheither by political for that of ports could keep the rise going considerations or of the risk of read as follow

| toppling. the sonte too far in. tholderen

preferred capital of Bowater group in the United Kingdom by. conversion into a single class

and

ja point.

Blue Chips

for some time longer, fed oltare direction, '· If -peso" Ahling' la:). Tolak yoki holding.

Total other curtezeles

of preferred stocie of the parent

The analysis: Busted selvos getting now laga bt quge more criath than another: 6:19. Bight instance, troad corporation and increasing the The rise War

hat, deloc next – Wödbeadashi Ku KPU PIERRE dominate gostions for picha authorleed preferred

and this past week by the blue stressed. Eskamabelleved :“bohind:

action» against the Advance do, stabli ordinary shares of the company chipe-the top ranking of the marketamers noted that, read cattia.

proposed major groups.

the "rucunt, ducts and seabed Brady dave governed Flask note: || "yihida urid led (tintry? Jumarmin, and exp Aircrafts were up on hugol usirvative position, market moteltz bilent. orders placed by airlines na appreciation Unitod

to

charlement Gig

and allow for future

requirements. -- China, Special

Current accoUALS

depos

200,000,000,000

Petallour Tin Lid, ........

Haffles Hotel

Singapore Cold Storage

Lid.

Biralls Trading Siralla. Stentnship Enkled Engineers Ord, Wearns Bros.

***xd.-China: Mail Special.

$14,00

$13.50

$10.00

$2.90

Exchange Rates

Bielnose svi dong in the local :tinosfieldi txchange. market

moming at, the zollowing, ra1062m

henriing, nabon (der-23)

*Indonesian rupiah Iper 100)29, 1890 “REMIT) Keniny (per 100) Fe

Bisigapore (thiraste)

1.00

10% Increase

"The cotton surplus has deve». loped despite a significant qui

the consumption. In three pensons cotion consump- tion in the free world his itam creased by same 2.5 million bales or 10 per cent....

"Most of the increase in free world consumption during the icst two seasons has occurred outside the main press, par- ticularly

cotton producing countries. Uke Pakistan, Turkoty

by Mexico, Brazil and Egypt. Star Me increases have also been in Korea, Formoon and

"Emphasising the fact that the picture could change radical- ly before the end of the season, 109.960 prospects are that free world 30.251 consumption should continuo at 297,563 Fround last season's level" -United Press.

Router.

70,414

G81.9k

J

PHOTOGRAPHS

by our Staff Photographers Yacht Club Regatta

Fire at West Point Rennies Mill Clinic Shatin Post Office Police Training School Ceylon Trade Dolegation Joint Kaifong Celebration Heep Yuan School Bazaar Maternity Wing at B.M.H. Stanley Prison Officers Club Motor Scooter Treasure Hunt Civil Air Service Training Centro H.K.A.A.A. Meeting & Prizegiving Hong Kong 'Regiment Band, Jazz Concert Navy Mounts Guard at Goverment House Land Forces Motor Cycling Championships Chinese Football Association Dinner Wah Yan College Old Boys Dinner Presentation at Victoria › Barracks Tung Wah Hospital Flower Day St.John Ambulance Inspection Indian 'Association Recaption.

H.K.F.C. Bowls Prizegiving EY.M.C.A. Sale of Work Hospital: Sunday Services UN. Association Party:

Trafalgar Day Dinner All Local Sports Local Présentations Local Weddings

etc. etc.

Available at

SOUTH CHINA MORNING POST; LTD.

Wyndham Street.