THE CHINA MAIL,
TRADE and
MONDAY, FÉBRUARY 27, 1956.
COMMERCE SECTION
Eisenhower Problem Continues
To Dominate U.S.
GREAT IMPROVEMENT IN THE
POLITICAL CLIMATE
By JOHN MORKA
New York, Feb. 26.
Political factors revolving about whether President Eisenhower will seek re-election this year continued to dominate the US business atmosphere last week.
Although there was no definite word from the White House, doubts that he would withdraw from the presidential race are being replaced by a growing feeling that he is still weighing his possible candidacy pending a further assessment of his physical rehabilitation.
Amerkenn businessmen and
13
Market experts investors generally now ink of antleipate any definite change on "improvement” in the politt- in the markers behaviour? cal climate and sist that the; least, not until the President chances
that Improving
mukes known his President Elzenhower will be the standard
bearer for the Republican party the autumn
are
1.
decision
Favourable
wouk! Оп
sterp
Those who Baist Eisenhowry will be esrulidato point ta
The answer
"yes" three recent developmeids: Recent optimistic medicul ar
mean an upsurge iu prieta port no President Eisenhower' the other hand, say the experts, "no" would push prices lower. epridilon 2. The pickup in the chref
physeat but will not be overly envcutive's
insist that the market activity, relating
golf : Experts hunting and 3 The presidentit has to some degree already dis- Yew of the controvers al natura counted the whole question of stories and gas bill which would have lifted; Eisenhower health
Talk of a second term as market
depressan
regulation of natural gas prices from feteral jurisdiction.
Price Increase
Critics
While crrimin ang bodus- les like automobiles and horne building have been making the headlines, business
upl men wk !! about the under- the Iturriy
15 ong -length
The US. Fulbright Natural Gue H
this connection, economy [ contended that the bill would the outlook remajas favourable mean a big price hike at con; sumer love The
the
sientini Onse presidentid veto-in the face of
decision is out of the way, many expecta tions that he would approve the experts think that the stock legislation
the nanelaj.market. will then reflect more community try
what
deerneri surprise
His truly action was interpreted by some busically healthy economy
of
observers us being motivated in
Highlights of the week part by political considerations
1. A
steady strength Wall Streeters. businessmen favourable cornings reports by generally, meanwhile Inused
some of the nation's industrial forward to March 1, when his giants-evidence of the high expected, the President might have something to do about his political aspirations.
The stock market meanwhitle continuett to reflect the over- hanging political uncertainty, in line with expectations, Prices moved Indecisively
tat
level economic activity.
Many feel that the Federal Reserve Llour! NOW thinks therer more danger of recession tham
the of inflation during
This week Brxt Jew months the "FED" agreed to undertake of the economic Im- a study portance of instalment buyi
ying and to ascertaini whether the should have, the government
to control such credit- power buying The study is being made at The
quest of President
Elsenhower and his Business advisers Week magazine, taking note of The credi siluation, obSCTVEN The FED feels "the economy is entering a levelling uff period.
economic
Th
BRITAIN WILL NOT DEVALUE THE POUND
London, Feb. 26.
Britain will not devalue
5. pound sterling, Chancellor of the Exche
Harold
quer
pledged today.
In
*
Macmillan
Conservative party political broadcast. Mr Macinilan nald *some people may think that one of the ways in which” we tould ret out of present dimculties would
be by devaluing the pound."
"Wo did this once In 1949 and we cannot do it again.
"We are all 'ngreed on
"Apart from any thing #ise. it would shake the world's faith in the pound,
which la worth 2 great dent to us and the whole free world,“
With his ainual budget fera thara two months Mr Macmillan also sway, declared he is against re- Imposing price controls.
"or course it would be very nice if we could stop prices rising by orderby
Fald price control," he
"But it would not work— naless we controlled nearly rationed
And prices the goods, Even then it would not work for long because It does not go to the root of the trouble too much spending power," -United Press,
expected NY COTTON
think the "They slowdown in economie activity calls for a slackening of credit reins, not a drastle switch-the FED makes clear that pol lies
shift gradual favours acknowledges Uint President Eistnhower's decision whether to stand for re-election may have a significant impact on business, at least in the short-
Д
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un
term; a gradual shift will teave 11 with flexibility to deal with ether eventuality.
funds
MARKET
REVIEW
By William T. Plunkett
Investors Ignore Bank Rate
Increase
WALL STREET CONTINUES
IT'S ADVANCE
By Elmer C. Walzer
New York, Feb. 26. Stocks advanced for the
second
successive week with daily average trading the best since Sept. 30, the week of the President's illness,
The upturn was sparked by reports the President had made up his mind to run again. He was said to have told some of his close associates just that.
By C. T. Hallinan
London, Feb. 26. Stock markets this past week have thumbed their noses at the British government and its 5% per cent bank rate. With the cost of money sharply up, the common sense thing to do, according to the textbooks, is to sell your holding men and selling pressure re- of gilts, and of leading industrials and wait untillaxed after two days of narrow they have become much cheaper.
Traditionally, the only decent thing in a world of high bank rates is a long slowly spurt.
men
But there had already been a substantial fall from the peaks of last July and these lasues looked cheap indeed fund to the Indices, the prices of British govemment
stocks nod of leading Industrials, od- vanced every single day this week.
In
Salaried Class
HONGKONG STOCK EXCHANGE
Stock
It was enough for the market
movement ол Monday antl Tuesday,
The averages closed the week: Industrials, 485.00, tip 0.01 points and rails, up 2.20 points and a new high since Dec. 30.
Sales for the four sessions totalled 10,500,400, or a dally average of 2,842,120 shares.
Of the 1,800 924 advanced, the most
shares traded. 'singo
MALAYAN
RUBBER
DUTIES
Kuala Lumpur, Feb. 27.
The Federation of Ma. from 6x-
the week ending Oct. 31 when laya's revenues the gains totalled 837. This port duties on rubber in week
there were 200 declines 1985 were more than three and 170 issues were unchanged, times those collected in the
In addition to the Elsenhower previous year, according to news, the market had in
its official favour a long ist of davourable
figuras released
fr schedule Revenue trem rubber export duties totalled 174,081,075 Straits dollars in 1065 compared with 52,013,999 In 1054.
gifts the gains were startling. Four per cent Consola rose 00 shillings.
Business done on the Hongkong corporation Exports and a group here today. well off the
Exchange this morning of dividend increases with A bottom: War Loan was up 67
10 amounted
пpproximately few stock splits thrown in for shillings
Old und pence
$380,000. Noon quotations and good menstre, Consuls 47 d.
the morning's transactions.
SHAREN NOYRUS BELLERS SALES
BANKS
HK Bank INSURANCES
Union SHIPPING
Asia Nuv
Dick
Bit Of Lift
Bleiner news
Totul revenue from expert whole duties in 1955 tonlled 285,401,603 was reported favourably with strats dollars compated with the indexes showing a balance. | 112,304,313 and from import Ford stuck on the over-the-duties 250,000,000 which was an counter market got a bit of Iftinercase od 45,089,550 on 1954. B0034.254long with the listed shares. It i—Reuber.
1740 1780 21345
ប
1.07.15
3.1
2500 110
300 34
240
Provident (0) 13.60 14.20
#75
JA BO 34
400 r 14.0 1100 14
Who is doing this buying? A contributor to the weekly in- vestors Chronicle" who obvious- inside ly known the market out, says that the heavy buying is coming from the salaried managerial class and not, as in the old days, from the one-time DOCKS, Fre wealthy class of rentiers. This managerial class is too busy to of trading learn the technique "in and out" and they rarely
be
{ "selt persuaded
Wheeluck They buy for more or
and LAND, Te less permaneul ownership
HK Hotel they have left the market with almost no floating supply.
can
stret."
ing
New York, Feb. 26. Cotton futures worked
It is not strange, it these are, The widely rend publication
a indeed,
forces, the prevalling prexileted that the FED will irregularly higher in
week that demand in a market lack- Imit elf to easing holiday - shortened probably
should professional bears, some of the pressure on bank with the old
de- crop
have lifted Vickers 3s, Courtaulds reserves by supplying
Imperial through open market operations liveries developing relative and Unilever 25 d.,
Chemicals and the two great thus permitting member banks strength.
tobacco shares 2s. All this at a to decrease the amount of tem-
the 1st time when private conversation AL porary borrowing they have
Friday's close
doubts to 6 points, reveals great
whether bees forced to do from the ruled unchanged
or unchanged to $3.05 a bale the government really knows to higher than the preceding week. combat the current Inflation,
2 Prospects ori continued Ingency. Kadra in US imports this year. The possibility of a further loosening of the government': credit rein.
thas
3 The conuing high level all major week on the whole, apparently of production 111 lacking Incentive
and
industries despite cutbacks in simulus of favourable news,
the auto industry.
the
ECSC STEEL PRODUCTION
ALL-TIME RECORD
Luxemburg, Feb. 26.
During the past year, steel production in the member countries of the European
Cutbacks
The auto industry meanwhlie disappoint, al-
some sign
to though there were
| of better days ahead,
the પ
(N) SU Rumphreys
19.70 Realty #4725 dubs Rb 30c 5. RUBBER
A. Rubber UTILITIES
Tram Vali
C
1.00
26.10
Ferry
Light (0) 23.00
401
was helped by a statement by the head of the Ford Founda- 500341% on that the organisation did further offeringa no plan any of the stock in the near future and that the dividend secmed secure.
100 103
4000 300
C. Light (N 18.60 15.80 0300
པས་
SWISS BANK DIVIDEND
A long list of issues set now highs for more than a yoar. On
Zurich, Feb. 26. Friday the cherents got into
A dividend of 10 per cent is action. Standard Oll of Cali-
proposed by the management of fornia directors recommended the "Credit Sulace,"
One of two-for-one pilt which is to be Switzerland's leading banks, in voted by stockholders.
annuai report to gained 53%
The report lists, the net in- come for 1995 e 21,460,017 Swiss francs (US$5,015 302).
Coll-
113
09th Standard 21.60 | Zornia
points on the week. Other alls shareholders. 19.70ere up 2 or
3 points. Among the better gainers for the market as a whole were American Home Products, Up
270 + 43
Electric
Macau Eler.
101 IN Telephone INDUSTRIALS
Chettrent
Rope
0.60
9.30
31.39
200 gr 33
30%
15
30
700 - 14.00
the
STORES, ETC.
Watson COTTONS Textile MISCELLANEOUS
12.40
200 12,5
Apparently very few felt any Nearby months responded to
to "escape" Into the absence of delivery netices temptation
position in foreign bonds. Japanese are al- against the March
shrinking most all down by amounts rang- face of a steadily
from Ing
sterling, both certificated stock-
assented and non-assented;
New
Uncertainties
on that score
Metals Good
crop months were It-two Potash bonds were an ex- fluenced inainly by the debate ception, rising 1 sterling. Greek
down were
about 11 on farm legislation and increas-bonds Dealers' stocks still remain at ng conjecture as to what final sterling. levels over the 30-day-of-sales form the farm law may take, considered Safe by industry,
production despite cutbacks and layoffs in the last were increased by the question three months. Starting next as to whether the farm bul is Monday, Chrysler Corp will containing rigid high price sup
Administration leaders cut back to one shift from the ports. current two-shift schedule at have reaffirmed their stand in Cavour of flexible supports, but its Detroit plants. It will
will also lay off 1,000 workers. Although traders wondered whether some
might yot February sales appear to have compromise picked up somewhat, marry ob- effected,
that feel
production
་
קנן
oll
Allied
The breakdown for the
74; Addressograph-Multigraph, dividend given by the manage- up Chrysler up 234-Untiedment is ve per cont regular 600 @ 38.75 Press.
dividend, tree, per cent addi tional dividends and jubler dividend of two per cent to celebrate the bank's 100th 20- niversary.
As
9.30 4.33 1000 570
5.45
Singapore
Stock Market
Singapore Rubber
Market
an additional jubilee at- traction, the management also propesos to increase the present. capital from 100 millico francs to 105 million franes and to offer the new shares with a no nominal value of 500 france to
Singapore, Fob, 20. After opening slight above Friday's clogo the market on Saturday sogged later on laels of Interest. There were particular features, Future closings were:
No. 1 rubber per ib. Mar. 0535-953 Apr. 2333-03) May unquoled No. 2 rubber per 1h. Mar. 24-415 No. 3
935-04 0034-9714
the No. 4
Spot rubber unbated Blanket crepe Opening Na. I pale crepe
$1.03
41/-
20/01
Members of the managerial class are said to be very con- spicuous and effective In shares; they regard the big oll
Singapore, Feb. 27. Brokers companies as having the sound-
today
quoted future and they following stock pricés: test possible
anything be never seem to read
Rubber Co. about the troubles the giants Batu Lintang
Ltd. are having with rising costs. So Briksh
Borneo Petroleum Loan Rate
wo find Royal Dutch
25 Syndicate may have to slow down stili
shillings
last
week to 624 | Consolidated Tin Smellers further, probably thr
through Apri
Ord. Coal and Steel Community reached to bring the unbalance in line.
Another question raises was sterling, only some 15 shillings Fraser & Neave Ltd. Ord. 1.75
legislation would" below their peak. There were reports lost
The other week whether any
were all up at Fraser & Neave 71% in pref 52,500,000 tons, the highest figure ever
What the Auto
Industry might be enacted in time to apply to well-knowns
3 shillings with Shell Hongkong & Shanghai Bonk- recorded in Europe. In 1953, the year the of the 1957 models by the
advance
dale of its intro- this year's the
Crup, and whether least
ing Corp administration. might Transport up 5 shillings.
Hongkong Na Ltd. common market for steel first came into one month this year in order announce an Interim loan rate effect, production had not yet exceeded to boost cales. The changeover for the new crop.
be made 39,500,000 tons.
These facts are revealed in a review of the Community's achievements during the first three years of the common market for coal and steel; published by the High Authority.
might
and base metal shares-United
$4.64
It was a good week for gold / Kompas Lid. antes Ltd. $4.12
$DIG 723 1.77)
Lunas Rubber
Malayan Breweries
$3,40
Now Sorandali Rubber Co..
Ltd.
Petaling Tin L
Rames Hotel
$6.001
$1,50
$27.50
Hiraita Trading
Straits Steamships
$12.60
cumdiy
United Engineers Ord, Wearne 17o1,
Special.
$8.63*
32.02
as early as
President Eisenhower's pend-Press. On that basis, it is August, estimated that 1957 models wilting decision about running for plus a low-down make up a big 40 per cent of re-election,
in textile market activity and 1050 production.
the intervening mid-week holi- The Bank Of France South British Insurance. Co. day, were other factors tending to subdue new market interest.
Meanwhile, some automotive companies are reportedly re- turning to the steel market and ore reinstating orders
pro- Iron
Акс
Although the Authority con Large-scale unemployment | viously concelled. codes that the great expansion would have followed. in activity
was due
takes credit for the
7
to some
was
magazine Says Delrolt and other steel centres are expected extent to external factors, it Under tite Schuman Plan, the
to step up their sheet and bar industry overall Belgian cool position, especially for
a' five-year transition orders for May and June, having granted stendied the short-lived re-period, during which the more
Meanwhile, it adds, the out colon. in 1954 when produc prosperous German and Dutch
look for the steel Industry "is tion remained at a fairly high mines were to pay rubsidies to their Belgian counterparts to en- level in the ECSC countries.
Ketting rostor by the day." It demand from looks for big able them to modernise their
construction, private equipment and Improve. pro- ductivity.
building.
However, only two more
Common Market
allocate
Well Ahead
The report claims that the years of this period. now re- common market had had the main: after that time the High effect of stabilising coal prices | Authority plans
against funds to find and create new A Journal of
jobs for the surplus labour
add protecting buyers
sudden hærcusca. -
to
The report stresses the High force in the Belgian coul' min Authority's policy that unicom-ing areas,
petitive and obsolete industrios
should leappear
# o CYTIC➡
quence of the removal of tarli? barriers,
H
survey
ni the decis
home
Statement
· Paris, Feb. 26. The Bank of France atctc- ment for the week ended Feb. 16, reads as follows Tetal gold holdings
near Total uther currencies
In EPU
tion Fung
Scanning the export outlook for U.S. row cotton, some statisticians, despite the current lag, thought the total may hit close to 2,500,000 baies by the Henson's onel
nexi July 31, Their reasoning was based on fnot that mosi of the the 1,000,000 bales programme have sight balance abroad been sold.
government Onancing Advance to Stabilien- programmes for cotton, coupled Total bills thecounted with regular private safes would Bank notes in circula- round out The total figure,Current accounts and traders said.--United Press.
Other
·US RAW COTTON EXPORT
to
·
male-
Commerce inst
week points monthly Increases in U.9. im-
New York, Feb. 20. ports over 1833 inte April. The
Row
cotton exports by level of imports" "promises to destination as reported in bales run well allead of the 1950 move!
by the New York Cotton Ex- into ads publication change for the season 1988-88 to cautioning that "What Feb. 21 were as follows noted, Andonity.
happens in February or March beitato Uneconothic collieries work-catered for by the Authority ns could be the ipoff as to Continent ing poor sets at high Costs they were transferred to new whether Import this year will a Sare, doomed and wrouilck. have jobs and helped to adapt them--run "kiseau of the spring-enrly Towns, sur" withéon". been condemnes to ethathi" even [pelvas to metr sehr
turmer· Showing Lot 1985. Mame period last ye United Prom".
Jobs Found
1
and French coal | workers threatened with un- employment Ind also been
This was leading to serious Italian, German problems in the Belgian
ን
it ECSC had not been created. Long-China Mail Special.
Orient
excluding
tion
deposits
301,204,308,438
17,730,523,044
178,230,000.000
TNG,000,000,000
1,250, 900,062,043
Singapore Cold Storage
London Foreign Exchange
प
London, Feb. 20. Foreign exchange rates 2,158,178,007,000 Saturday closed as follows--
New York
2.8042-2.32-13/10 112,700,143,548 || Stontreal
2.06-1/161_18011 -Unlled PT CES, Amsterdam
Drumeir Lisbon Min Parin
Stockholm Zurtch
The Bank Of England Statement
London, Feb. 20, The Hank of England" state. ment for the week ended Feb.
32, runtis as followsine
10.03% -10.0711 130.47) | -1.30.533 20.10-840 175019-17053% DE276-1083
12346-122435 others were uncharted Press,
Exchange Rates
Zitaricione 'vrne (dote. In the local this 13.744308 | morning at the following ratan +312,000,000 - Ul. dollar, (per. S1)
10.500.custarjinar notar ¿der. Ri
sanse | Nefu in, eirinilation sterling 1,773,200;913' | timomilad
Publiu+ depo#{LF_{ lenville "diponts
76380 COVɛrnment, securities - Other secur|ties |
10 plenis | indonestan popsie),(Per 300).
Pumera, Lical (per 108): --Ualted Press, ... | Supsupors Astraila)
A
"
10115-16014
035-0115
-Unlied Frem
present shareholders on the basis of one new share to ten old cлes.
The bank
faction
tho
noted with satis- Swiss-Japanese agreement of. Jamury 1955 settling the claims of Swiss nationals and firms for War damages--United Preps,
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