1956-06-11 — Page 9

Page

TRADE

THE CHINA MAIL, MONDAY, JUNE 11, 1956.

and

COMMERCE SECTION

Page

NY COTTON AMERICAN BUSINESS HAS WEEKLY US $1 Billion Tariff

MARKET

REVIEW

By William T. Plunkett

Now York, June 10. Multiple uncertainties in the government export pro- gramme for raw cotton cut activity in the futurex markot here this week to the Blowest pace in many years.

Latent weakness in the stock market, following news of Pre- sident Eisenhower's illIMAS,

joined with increasing reports of textile mili curtalimeat,

in pushing more traders to the sidelines to uwalt developments, Uncertainties about applico- tion of the mail bank law to the Browing crop, and the generally favourable

tenor of the crop

additional newa, were

hondi- caps to new market interest.

Uppermost interest centred on the the impending sales out of

The Roverument surplus stock. Commodity Credit Corporation Announced bids for sale out of the stock will be accepted June 12, or one week earlier than ori. ginally scheduled. The advanced date

Finer it was welcomed shortened the overhanging perled of uncertainty.

NO LIMITATION

The agency placed no limita-

Non on the quantity

10

he

offered at the low pris diret- Trade opinion ed by Congress. was divided on how Jow

The

minimum acceptance price will be, ut some traders thought it will be lower than the recent salex made around the 271⁄2 cent a pound figure.

The low price

on the sale made last January was 23 cents.

The quiet demand for spot cotton pointed up reports of in-

One

Creased mill curtailment. foremost southern plant nurinced

reduction in Ly operations from a six-day to five-day

week and an indefinite Dustponement of a $10,000,UVG expansion programme.

B

Imports from Jupan were

blamed by the management for the move to suspend the expan sion and curtall the work-week. new crop ple- Surveying the ture, leading spot fr in dicated a five per cent eut in nereage this year compared with July 1, 1955. This would sug- Fasi plantings

of about $10,030,000 acres. The 1951 is $17,437,000 acres. United Press.

The Bank Of England

Statement

PLUS-MINUS WEEK HONGKONG

Layoffs, Cutbacks, Increased Consumer Debt-But There

Was

Record Personal Income

By JOHN MORKA

New York, June 10.

STOCK EXCHANGE

(From Our Correspondent)

TEXTILE MARKETS

New York, June 10. The business slow-down under way in the cotton goods trade for over month approached halting point last week.

Business done on the Hong-he lob

A

New interest became, doubly- shackled while, traders pondered: 1The uncertain courie of raw pricos; 2. Uneasinges over

3...The kang Slock

sagging stock morning amoufited mately $610,000. Noon "quota- News of heavy sales of colton tions and the morning'a trunste-print cloths and broadcloths, for

third and fourth quarter

tion:

BANKS

East Asla

Lombard

XD SHIPPING

Water boat

Waterboat

(19)

This was a plus and minus week for American business. On the minus side: The auto slump continues. ThereURANCE'S were new production layoffs, production cutbacks. Housing construction lags. Money continues tight. Competition in appliance and television remains rugged on heavy inventories. Farm machinery output strike as labour-management sit down to talk about a new contract. Consumer debt moves higher. Inventories at wholesale levels move higher as sales drop. And there was an easier price trend for some basic commodities, rubber, copper, steel scrap. Stock prices sag also.

Asia. Nav

K. Whart

Inbour situation in the stal to approxi- | ***

Exchange

this

Buydra. Bellers

1009

Aster

do

Cut By US

Under GATT

By Thomas Weyer

Washington, June 10..

The United States has granted new tariffs concessions on nearly $1,000,000,000 worth of goods imported from foreign nations, the State Department announced

livery, at concessions of to last week. cent from the "going marke"," made other potential buyers at the

extra-cautious and determined to

waita "for a new look whole price picture."

Several million yards report ly sold in the prints at con- cessions, with

the anxiety to move the goods reflecting the slow demand

finished

2100 @122 fabrics and a resultant plic-up In 时弱

DockR GE

Provident

(0)

2200 1 131⁄2

30 DEJ

12

22

1.20

DOCKS, ETC,

90

14.00 14.90

9.10 9.20 1800

13.10 13.90

300

03 6315 1000

17.40

1.40 475

Rubber 1.0215

1.53 30,000 ₫ 1922

28,000

Trus

148

16,000 of 1.05

UTILITIES

Tram

23 23.200 Yaumati Ferry 106 108

1500 23

Wheelock LAND, ETC. Ik llotel. IIK Land Humphrey. Really... RUBBER

mill grey goods inventories,

Seeing the possibility

new

good

The United States and 21. other governments associated in the General Agreement of Täriffs and Trade (GATT) negotiated new tariff rates during four months of discussions at Geneva, Switzerland, that ended on May 23. GATT is an international organisation of 35 countries designed to lower trade barriers between nations.

US

A US concession on Scotch

to

not expected to

United Kingdom

tarifts were cut by os, at $145,890,000 in 1954, or 29 of much as 10 per cent on items per cent of total United King. export to the United 500 14.50 further concessions, converters, the United States imports from dom

and other abroad.

per The 15

cent States. 500 14.00 pleco goods buyers

maximum 0.15 consumers decided to postpone reduction is the

allowed by US law and will be 15.00 New purchases pending a

staggered DVOT д three-year whisky 0315 test of the market next week.

GOOD BACKLOG period with the first cut to go Increase

whinky exports, officials said. Some mills reported

into force on June 30.

but will proit manufacturers by bhoklog of orders remaining Tarifts concessions were slashing. tariff rates. Import enough to enable them to hold granted by the United States fulles bayo lite effect on the price-lino-but chewhere such items es synthetic rubber, American consumption of Scotch was conceded somo manufactur- | Stoich whisky, ver Louth, whisky, officials added. ers still had a good part of third certain chemicals, aluminium, C. Light (0) 22.30 CLight (N) 23 20 203 1500 or 20.30 and four quarter production to sicel bars, automobiles Fectric

2015 30.45.

700 20.50 be sold.

parts,

airplanes 2006 29.70 DO 29.80 File .. 19.00

240 20.00 Another brightening spot in woven silk fabrics and sheet and

wide cloths was the increasing plate glass." Its

IA.

On the plus side: A record level of personal income with farmers showing some improvement also; expectations of big corporate earnings this year. Along with record dividends disbursement. Continued strong demand for capital goods, machine tools, electric motors; heavy expenditures by America's industrial giants for new plant construction; employment repo 23 23.20 continues near top levels.

In

XTCSS

Bonu

of twills. This was the first such develop- ment since the deftrments 300 @ 10.20 | conters were issued 30011

auto makers operations.

by after the started to curtai

1500 23

12.20

205 & 12.10

INDUSTRIALS Coment

.... 335 pe STORES, ETC Dairy Watson

200 (4 12.30

number of shipping instructions to a largo producer

21

500 a 354

10.10

11

COTTONS

Textile

Corp.

8.30 0.40 7.40

0,26 0.10

Ninyang

MISCELLANEOUS

Yangtze

Allied....

5:30 2000 #1 5:25

In calon yarTIJ, traders wŻNO not inclined to expect any rea market activity until the latter

cus part of July, following the cus- tomary vacation period. Knitters end knitwears producers WETO probing the market for carded but at number and combed

two cents below prices one to mill levels.

asic

Concessions

and

Canada, Italy, West, Germany,

parts,

and the Benelux nations ranked

down

next in volume of trade covered by US cotictssions,

More favourable tariffs weTU. put on goods imported from Italy with n° 1954 value of $40,020.000. The new conces

The cute announced were on sions will effect 33.7 per cent top on several thousand tariff of dutiable Italian importa, reductions made by the United

Italian Nearly all

impart States during the last 20 years items received the full 16 per in which has followed a

cent · tariftcut, This means programme of brining barriers to international trade, tariffs will decrease by five per Many cute in the past have cent on June 30 and by five per

cent each in 1957 and 1958. a Cumzlative amounted, on

The Benelux nations received basis, to 75 per cent or more of the original tariff duties.

lower duties for 9.2 per cent of their total exports to the Untied New US concessions

States. Concessione were made Rayon grey goods sellers.re- granted on products imported

goods valued 'in' 1954 at ported an imported tone in some from all foreign nations who $32,522,000. Products affected 15.78 Alamont goods numbers, but in import value totalled 911,000,000 include some chemicals, sheet,

was in 1954. Figures for the current rolled and plate glass.

Exchange Rates

New York, Union Chiefa Elsewhere, the auto industry tons of asphalt and 500 million ot of new construction equipment, and steel industry leaders began grappled with the problean their crucial discussions about a 200,000 unsohi cars, June output Another thing that Well Street new wage pact for some 850,000 is now geared five per cent becounts on is the traditional sum- July as- mer rally which has taken place varkers to replace current con-low the May totals.

to drop in nearly every

year of this tracts expiring on June 30. With semblers are expected

The average summer labour

the 400,000-mark. for sking

sizable below

Sales century. this

are about 25 per gain has been 16 per cent for It was meanwhile year. felt that steel prices would move cent under the year-ago-levels. Industrials and 20 per cent for

Car makers

The fact that this i generally feel that rails. upward also, giving what many

year is also taken feel is added impetus to a new 350,000 is just about the right presidential

moving into as a good omen for the market. carryover before wage-price spiral,

1856-model production. Future Much of the market's recent output

trend has been will be downward therefore. scheduled along these lines. The ascribed to technical corrections

Business was done in the local unoffeful exchange market this to steel cutbacks have meant layoffs. Up after long periods of steady rise.

morning at the following rates: set- auto In an ordinary technical May 20, some 185,000

U.S. doller (per #1) against o

werd jobless, with back bargain hunters would be sterling notes (per 1) possible mrike, steel output for workers

similarly quick, to snap up the higher Austrails notes (per é1) thousands of others cord 43,000,000 tons. In the affeotext notably in the auto yielding issues. But so far, bar-indonesian rupiah (per 100)"..

Singapore (Straits) everst of a strike, there will be parts and dependent industries gain hunting hasn't developed Slam teal (per 100)

accumulated There's lots of skepticism, how-to, advise holding sound these stocks, it is felt. According to ever, about the industry's ability for investment, They urged also bigweeding out the doubtful silva- Iron Age, if labour negotiations to whittle downward those are settled peacefully, a letdown stocks of unsold cars. The next tions on rallies, a factor which

three months should

Steel Mess

Many users adding inventories hedge

Grst half 1050 headed tok a 10-

more

of

In third quarter appears

have on the

evitable." Mills are now telling important bearing

dustry's cur-quarter plans.

their customer there can be no guarantee of delivery after. July

1. Iron Age notes, adding this is

Reflected

Blocks

an many think. is responsible for. in-tallics failing to continue once they get under way. Brokerage advices concentrate on special altuations which would make for

for some time London, June 10.

not so much because of pessim- The auto slump is reflected in more selectivity

debt to come, the pileup of instalment The Bank of England slate ism over the labour outlook.

April auto "Higher Wage During "It's simply a realisation that for April. vice/t ment for the week

on the instalment plan June 8, reads as follows;

If there a striice-no matter buyers

books added only 141 million to their One of the major considera- order Sterling how brief-steel

tiens in labour's demands Cor 1,071 062.580 v111 be a mess for weeks after-jobligations, compared with a 429

113

the publication com-million

boost in April, 1935.) higher wages and other income- 30.78.723 ward,"

mented. Meanwhile steel scrap Total instalment outstanding as protecting devices suche 13,241,02

31,233,410

Note in circulacion

Publle deptaltą

Privih deponita

Other securities

Government securities

Receipts

Ratio

Wages

This past

12.38 the

business aggregate 10.00 26.60 mainly of a fill-in variety.

18 United Press,

Continental Speculators Press Against Pound

wers

year are expected to top $1,000,000,000.

on

The Coel and Steet Pool took part in the GATT negotiations Concessions on products im-for the first time, acting is ported from GATT mwenber nations affect 1811,000,000 worth agent for its six member states. The Community negotiated certain tariff réductions on fron

of goods.

This figure includes $158,- and steel products for Germany, 000,000 of copper Imporis Italy and Franco, which would be affected if Congress restored import duties

оп the metal which würe suspended some time ago,

Deeper Cuts

By C. T. Hallinan

The Community did not reductions for tho London, June 10.

The 1854. figures may be ap- negotiate

Benelux -states because their The London Stock Exchange began on Monday plied to the new farin muhedthe tariff rates generally are lower

officials explained, because the

of the other three with a crash of British Government stocks which Genova meeting did not agree than those as the 23.888.120 moved lower as mills held off of April 30 amounted above fu need anal wage, is the carried the usual securities index nearly four full to reduce larity on any items poll members.

reot already put on the GATT

A number of GATT nations pending outcome of steel labour billion. This is 4.6 billion above fear of automation. 10.0

offered much deeper tariif cula the year-ago rate, talks Unted Press.

Hos oss for America's week, in Cleveland a Harvard. points down to 84.49, the lowest it has ever been 1sts at curlier meetings

professor commented on a subject

than did the United

Statal millions? Latest figures show of a current popular notion, in since it started in 1926 at 100. This was followed

More than 80 per cent of di that in April personal income cluding the idea that the pur- by Continental speculators pressing against the

German concessions were bet- hit a new high rate of 317 pose of automation is to elimin-pound sterling. Then on Friday, after the market

for than 20 per cent. US billon a year, $2,000,000,000 ate labour. That is not quite so,

The Jorgeal negotiations officials generally seemed to feel higher than the previous record says Professor James R, Bright, had closed, came the news that President

carried on at Geneva by the that the US had received the, sat in March, in April 1995 the of the graduate school of bus Eisenhower had been rushed to hospital.

United States were with the best qualitative deal from Cler cessions covered Items valued United Press,

IKE'S ILLNESS GOVERNED WALL STREET

By Elmer Walzer

New York, June 10.

annual rate of income was justiness administration. under 289 billion.

Manufacturing companies that Elsewhere in the US, there retool with automation will pay

wis

Exceptions

Scotch Whisky

These things will be pressing upon the stock United Kingdom. New US cob many at the GATT meeting: exchange consciousness when the market re-opens on Monday.

concern over the stock higher wages for work that will market drop and the immediate bo less skilled than before the and long-range implication of switch, he says, automation.

"Automation is making people

British governments, whatever capacity to steer the country and Stock prices this past week more employable, not less, by moved lower on average, con- downgrading the requirements happens, remain in the English-Its over-strained economy to

man's consciousTIESH + ̈ ́de "the safety, tintreg their downward trend of for a job, not upgrading,

We fod Rolls Royce recover- long starding, Market and He said that automation will worlds' safest Investments" und financial experis meanwhile are boost the pay scale by exising Priced at Monday's close lookcoding from Monday's low of 933 Od

Like incredible.bargains.

to 98s 0d, up 5s; we find Imperial War Loan, which at one time Tobacco recovering from 45 d This week's market story centres on ones down what they con- the productivity por man hour. favourable items for a He criticised the theory that

will throw less on Monday had touched £00% to 48' 0d, up 38 Associated session-Friday's-when President Eisenhower's price odvance of this time. They automation

note that the market, hav; leirited, workers out of work by

its all-time low-before closing Electric roso, in the four post- illness swayed prices from opening to closinging boon hammered down hard pointing out that as machines at £70%, chad the work at slump days, by 2a in general, on the blue chips fell much less more automatic.

recovery of 21% less £72, News that the President was suffering from a and fast is still a sick old bull become

the buying than did the government stocks and need some time for no human contribution is needed 870 0d. Some of

was by professionale, covering but they virtually all recovered digestive upset came before the Friday opening cuperation. During the month of from the operater?

It the loends and their short sales, but most of

gained a shililag It brought in considerable selling from which the May alone, the Dow-Jones in-

or two.. was by investors, big and little, dustrial average fell 28.07 points fel

trilled at buying War Loan at a

Oils had a chaotic weck, due market recovered in an hour. Prices came back or 7.4 per cent and rails

The greatest impact of auto 11.53 points or 6.5 per cent, from the lows and volume lightened.

The experts noted, an immation will be on the sales dos Pile yielding them more than to the powerful groupe, which tako their 'Monday's speculative 4 per cent. partment, Pro. Bright explained.

Big Question

lines. Royal Dutch, for example, fell from Monday's £70 The Industrial avenge fell is lows and they took consolation provement in the stock matke: The, sales staff, he said, usust

wything is expected, because points at its low.

£14 that happers-like a third quar-keep pace with the machines.

In the week's slow but un Friday's £744. down That wast

the most povere stopped short of the May 28 ter letdown appears to have since a company cannot reduce

costs by slowing down or shut flinching recovery in gilt-edged while British Petroleum gained drop since the Elsenhower heart low, the apparent culmination been discounted somewhat.. attack last Sept. 28. By closing of the decline that had pro- Even so, it is held that this ing of the machines since there securities Was Loon was the s to 1488 9d..

Trinidad Off soured from time, the late rally had results ressed since April 6, the day does not preclude a test of the "la no one left to lay off who is favourite, but the others were

***not essential.

also wanted. From Mondog's Monday's close of 40s 3d to St

High for the week half wiped out the industrial average reached year's lows, pow Its record high.

Hydraulic repairmen, pouema- low of Consols recovered 21% Thursday's all-time about half of that loss.

70 Odoll due his, the, typort tle. remirmen and

the railway, electricions or 278 84 anch When Friday's market was. Because of the strength d

| were, cited as excuptions to his

stock £1 1/7 or that Texas Oll Co. had offered averaged into the previous four two sessions, a sizable group of

to pay £63.2 millions for the If the test slow the market general amertions on

down 22a days which. ins shown a stock closed higher on that is able to hold above those lows, and of requirenyents. - --

The

week's big question, of company's assets, equal to 808 rise in all averages, the pet res week. The outstanding gainer wall and good, say the experts. United Prem.

courge," in: Why did so many 3d per share. Violent Cousen sults for the week were as fol- was Chrysler which closed on it act, there are apt to be now

people got in a panic on Mon-yative Piety oppositLom day and sell the "world's safest sale of one of Britain's few ot investments for whatever price resources caused married prot they could got? It' soema to taking and the mares Have been due to the sudden the wrok at 6ås. conviction that Britain

1

tho from the fact

decline

Corrections * ·

* Friday at 102.30 a shatej up 2 lows for the movement, Another.

Statement

to

of

closed

Industrials 475.29 of 8.94 on from inst week's close. General favourable item in the fact that The Bank Of France the week; rails 162.03, off 2.83: Motors gained 25 cents on the art of excess fat has been re- utilities 05.21 of 0.27; and 65 week, Ford last 3712 cents moved from, the marcet's waist stecks 170.18 of 2.08.

International Business fine. With prides hovering at The market hud rallies on Machines was up 11% points on lows, many of the, Bk market

Paris, June 10, Inced with very, very difficult German Bonds Monday and Thursday and de- the work and gains of more investors, the so-called in-

The Bank of Stance statement problems, that the government 4 points

by

·were", set" stitiationals, might be tempted to for the week ended,

Conhan baridi, Had sported of clines in the other sessions. The than

May 31,med to be Inadequate, that if Friday tradest amounted to International Paper, Barbel Olf re-enter the market.

| nende as" follows:/

Inflation werd not checked, eotivity which resilted 3,630,000 shares, and helped Me Graw Hill Publishing, buyers invest for the long-term

thekrvermanent bungling Your Loan non- restore the dally "average |

Arperloun Hawaiian Steamship, and impart a ton of stability to Total gold holdings

desperation

ralió bank the Berlin 0. 8,963 rata, sull bigher, so as to check R141 and the Day na Rohn und Flamy of the market. On the more, por total, other eur Closed Higher.

Superior Oll gained 18 points five alde telo le the big rundrecen

that part of the country's ex on the other han A total of 1,302 Games op- talking programs the US. AREPU

tons which was being done Pofas foll peared on during the

What will happen from hors

Couf (n, bnybody spués according

to the analysis

Bone of the experte lied that thỏ Misenhower., 100m "only. hírtáned a test of the marketa:

weds of this 101 Peter that for 1 Bilfort declined, (9sa higaand and 1970 +10280 Were thotangock;;;

Irina, medd new. High 209 sot now lowe dor

Latted Pre

fund

$10.0007

Bighli

rock, 400,000

(Current) Borotanti,

depos

000 200,000

100

on bandwad more

When ww Innvrova!

'stoelor'ana #tris--to, the

indiaitrinke, ww. find somet

Adarice

und will pu

to 2114 Farum

www.Tokyo,C

sevented (2 Vulinitet

the

and

TYPHOON MAP

acl codes in force

April, 1956.

$500 MOUNTED

from

South China Morning

100.

Post Ltd.