1956-07-02 — Page 9

THE CHINA MAIL,

MONDAY, JULY 2, 1956.

US

TRADE

and

BUSINESSMEN

CHEERFUL

Jitters Have All

Recession

But Subsided

By John Morka

New York, Juły 1.

The US business mood at mid-year was cautiously cheerful.

Recession jitters have all but subsided. There is strong confidence about a good fourth quarter. Many expect some easing in the third quarter.

But all in all,

CAUSE some of the and plutted their bullish fervour evident last win the remainder of the year

to have withsaded. Årnports. ter uppesies. although many experts still feel 1956 might well rank with the best in US history.

f. │

||

only 171 agricultural

สน shows,

118 equipment, and sine appliances will fourth quarter sales

moderately

below those of a year ago 31 also notes that signs of strengib i me becoming more evident ingly eyeitcal

There now any emphasis

The Suff venemy, mitally

OPTI

honing, agrteviltar) and phunce

12

12

auto ituit. incchiaerY miasta res, The auto plump, the threat

2345

12 "

L

210 like

แห equipment

Mexico To

Plant Rubber

Mexico, July 1.

Agriculture Secretary Gilberto Flores said today the Gioverament Ja plan- ning to plant 80,000 Beres of rubber plante

Southern Mexico by 1958. He hoped Mexico eventual- ly could cilminate importa of rubber.

Mexico wheat production this year will reach an all- time record laure of

1,200,000 Lumex,

Buld

This would be 30 per cent said

above last yrar.

this year's collon crop will be about the same as inst year's although

360,000 1e*s детта were planted to cotton this year. --Inked Pres.

CANADIAN

GRAIN EXPORTS

Canada

farm machinery- which are apt | million to do much beller s 1957 than n 1930. 1 books for a produe. tion rise of 17 per cent in 1058 ekeine attl

Over

1955 ini

steel strike and spiraling pees. The tightness of money. con- chenbar of inflation-deflata 11, auf Prusadera Eisenhower's electric equipment; of 16 JAN cent in bilamizious eal; of 15 to 20 per cent in beef and pork. For 3 0 4 percent in dairy pre

ducts; and of 14 p09 Pat polural gas,

the

<ht

High Hopes

that for the moment at least. light as the sieel adpe 1543,000 Where SODIC

threaten 10 Ju Make ungt Saturday an

R“r.】རྩྭ 8

k. AL EXTW

banred

three days

wage

piet

સ IN 1

Barber last week hopes were publ settle- Jhi;}{ Èyu t + ment Steel prices on the stock

The Commer

minimises the rba

ut

Department manufast- turers mocks which has worried

some oOSEF VETS,

Fluctuations

These glocka, I noted. "Van- not tre considered troublesome

atatos. with the exception

have expertencent Item In most groups

jest But

acresses to both inventories negotia-

marked the end o dul expectations.

Hung tut stat al mud-week ut labot autistry turned down ench other's proposals

untled orders over the past 12

i said inventorra ose months about 4.7 billion between April 1955 and April 1956 It attri As a what will happen the buted the inventory accumula- cids are rusis than 30-50 argely to expanded activity there won't be a shake

and the rine in uiled unders.

At mid-wear.

sa strike,

In expectations

banking their TUTINKT

stert mill have already started much

This erratic

speculation? behaviour

<

about the slok

usually takes about three days market prices as perhaps about in US bancial It no strike takes pince, it will anything take an her two days be

Ang

19.

tamuter. いしい 1,000,000 steal fons af steel pro- duction will have been lost even if a strike is avondent.

celes

יאן 1h

have bee

However, sme wide tuctuations.

A Journal of Connerre con- W 10 inlaten noted advances for cent or more charitag

hal! 1956 by 13 per cent of the various industry entegents and declines of thal extent by per cent.

Splurge

[3

|

COMMERCE

CAUTIOUSLY

Economic Progress

In Second

Half Of 1956

By C. T. Hallinan

London, July 1.

Western Europe looks forward to second half 1956 with hopes of continuing its economic progress in the face of mounting difficulties.

While me countries are en-ly by 1985. The study comes of fying relative prosperity many time of confusion when goven- host men authorities or threatening nte tall grappling with a

ranging problems,

from to put controls on the prices of items in order to dollar certain food retorni n W

nsiderations of hold

of

y

and spiralling prices.

furl

Ivi

example,

down the cost of living The Paris Bureau notes further.

This cronomic rpor! Lakes IRAS es the target year and 169235 analyses what the present trends by that year. they will mean will mean, according to the ex- perts. an ern of stability.

Cadena Anggers Bat Betali the next six months with some

The Dest

big problem is whether the nalice can step up its exports to the United State and Canada to wipe out in pert or in whole the 1956 fall-ension, a point of which all

area dollar re-phases,

42 test

Volume Rising

production.

ret

industry.

wil be co-urfinated on a high

ÚS

SECTION

DIVIDEND

RECORD

New York, July 1. Dividend payments set a new all-time record high In the Newt half of 1956, Wall Stroes experta estimated today.

their

They projected figures and predicted fall year would show grin of nearly 10 per cent

over

the $11,200,000,000 reported for 1955, the pre- vious record higð.

First half dividends amounted to $4,000,000,000,

A riso 12 per cent over

of 12 the corresponding period of last year. la all of 1825 the dividends paid · Ameri- can stockholders amounted

to

Press.

$5,823,000,000.—United

Sharp Decline In Use

Of Copra

Rome, July 1.

decline in copra and co-

SAAR DEAL A VICTORY

FOR FRANCE

Paris, July 1.

The Saar, 800 square miles of rich coal and steel producing territory on France's north-eastern border, will become German again on January 1, 1957.

But for three years after, this now pro-German state of nearly one million people, will continuo to be economically linked with France.

Thi Was

basis Lho

of an agreement un the future of the Saarland—for its size, one of the world's richest territories in, cool and

steel-reached in netstrai after Luxembourg this month Afteen hours of negotiations between Konrad Adenauer, West

and German Chancellor, Mollet France.

There was haggling over the They rich Wand roal veins. He under the Saar, but they are mined mainly from French territory.

The French scored that point, too. Two-thirds of these veins will continue to be mined from

France. Coal extracted by 考える be sold Praner at "favourable prices,“

German Gifts

Gennan plts will

Quy Prino Minister of

There was even e German | gift. France wants to shorten the The Saar, formerly part

of Prussia and Bavaria, was made trofect of the river Moselle from the Rhine at Coblenz to Metz in territory trustee

of the

France. Objeet: to compensate Nations for fifteen League of

France for The loss of the Saar years by the Treaty of Verby facilitating the transport and

n

Bullies,

Autonomous

The sharp antt administration the use of

Then, in 1933 the Saurinnders plebiscite to re- conut oil in soap produc. deckart in a

Join the Germany of Hitter.

In 1947, the Saar's elected, tion is one feature of post-

Assembly parliamem of war trading stressed in a

voted their 66-page report on the colly miembers

Constitution and becam situation compiled"

autonomia IS Democratic by the Food and Agricul and Soen country economically

linked with France."

Tevel

full by

543

It s drwn only one con- dilan, namely that no warr Lo occurs uttar upheaval

chaos.

tes

Ottawa, July 1.

exported 54.5

These resTIVUN bushels of

oats, million of May 1956, Bruin hud

everything Into barley, rye and flaxaced store vnly some 48 per centraling that, then it seeks

The key question, rensinstrate that on the pr the first three that loss. during

theredze, in the minds of many 1955-56 RIGH of the quarters

DOLCEVETS,

whether of Britain the Bureau crop year, Statistics said today.

Tin ledal compared with 785 (million Bushels 423 The femoustang pered fast crop year,

11

1950-54 inte molath 14 milion bushvenan Cument mop year exports of ut Har gong to the earl April were outs 25 milhot (171 ruddizm for the same period unt year, and 344 millon for

August-April

accomplish 105

tel WCEZ IKOW nie miracle and December and wipe out thi volume of that "defell"

+

the

A

11

is

cut

France has

made Bress which sire the end of World War 11.

hoading un

un vra of prosperity and stability.

Taking the French volume of prsduction in 1954 as an index. Britain's volume of exports is equal to 100 they forecast that rising and is distinctly higher

1905 It wil by

be somewhere than before, and many enn see

tuleren 147 and 181. the But progreza.

Bureau notes that SINT

The Bonn becoming the Government has just presen- eesome outlook is

te many who

ted a somewhat watered down think the next few months may version of an anti-inflation pro-

Britain inapeaing austerity

in order to solve grame designed to keep the upon herself i

business boom from getting out ul hand. triumph.ally

The programme calls On the problem of inflation.

for a

duties of in import gra), barley, 38.2 (539, 43.4).

polni tve 41 63 1, 6.81, 804 flaxseed ; the encouraging

the 28.7 per cent on industrial goods 9.7 (44. 0.15

sharp fall hi the sale of house-ond 9.5 per cent on agricultural En the

hold furniture perd.

consumer goods, broadly, the ends, an average production of capital goods is per cent. still rising slowly and the pro- duction of consumers' goods 15 failing slowly. Output of plants Dist Lene! machinery fra the quarter of the year was estimate at 84 per cent higher than it Barley Exports

The output of motor cars, durable consumer Exports of barley went 10 10

and cotton textiles different countries, with shy-goods down the to 19 multion 175 ments

But t. United States, 106 million United Kingdom. 66. million 1 Japan and 17 million to Germany areantung for most of

-tron

experts of Codian oots went

different enuntries to might

WE' the Prepat janters US and Belgium, thest countries adong shipments which totalled Jathl and 723,000 922,400 bushels respectively.

the total

was a year ago.

and of metal

19

Britain is not alone in faring the aftermath of the boom West of #054-55. Other European j

countries, as Untled Press inre imports, are facing it too.

Era Of Stability

cut of 11.5

Most Interesting Exports felt that this is the maximum reduction the Bunde- But some ex- stag will accept. perts insist is far from being to put visible pressure hugh on prices, especially on the still- Opposition rising ferm prices. from both industry and farmers increasing in this re-election

year.

Most Interesting development is West Germany's strong appeal international monetary reconsider the rates

for an conference private

]]

to exchange the currencies,

at

the Deutschmurk

Rye exports were distributed anent eight countries, with the largest stupments of 1.6 millon the United States. bushels

France, on the other hand is $700,000 to West Germany and

the

moment enjoying-for anu.900 to Belgium.

of optimisan Of the 1#

which trustwave countries

report imported Canadian flaxseed, the apive by a government

on the outinsk for the country's United Kingdom was the lead-

market. Preying

The

Gvernment report tshels Other

by the Ministry of Simi

very Economics - forecasts a strong and prosperous France 1the not 100 distant future, name-

A strike of coupe could play nation's the Will economy, if prolonged. A ever

would week strike

zen tenisky opratuna af oil and hamper gas industries, the construction railroad Industry, okers

and expumpment. "These

when tradition says the market three million

has principal markets In should have a rally. July segments are believed to br

Indus- Netherlands the

steel been a month of vise. worst

pestison

און

0171

Only

two

POTEŠIOTIS

g

sume

1)**

were with 2.2 million.

stocks. Some experts note that tripls and all issues have gone Belgium 12 million and Japan a steel strike could sutten prices up in the ratio of two to une to 12 million

for various commo:litico-zinc. | declves in that month. August is tin, scrap, rubber. Steel mills, even better. Thus Wall Streeters

_tve according to

Wall Street feel that a rully can come even

Journal, use nearly all the sleetit industry dyes ing a bit

kerap. over half the lin about 40 per cent of

an abri 25 per cent coal production.

and the third quarter, as many ex-

the zane of soft in the 1053 steel strike zine, scrap and rub- ber prices eased although remained fairly statele.

• peet.

Many look for sune amma- Uve statement by President regarding his po-

Eisenhower

1

litical Intentions to set off a flow

f die Investment funds which have been on the sidelines

for

rc-

This coterie thinks the election of Mr Ekenhower wil}

tin

What happenia

1.50 settlement other considerations

the 111 important

stcel

some weeks.

for

115

ww.

Steel

pacts wage affect labour wettignants other industries. In the

In the tre Taks

rubber aluminium indu_trics and ronds.

Invariably again

cffing und

it-

Bet off a psychologica) splurge of bullish enthusiasın. The Atch survey, for example, thinks that under these circum- stances, it is possible that

Welcome News

Dow-Joncs Industrial average

now Bround 402-might

to

ת

erommy.

Japanese-American Textile Problem

senators

Experts privately admit

that

is over-ripe

conut

on

ture Organisation for this week's meeting of its Com- Commodity mittee Problems.

General market prospects for oil both

copra and uneerlain,

Survey WeTC

We' with

other

fals

The said.

close

nuniyor

poconul the

new

Earller this Santanders

حمد

the

year, voted in another

This

plebiscite and again decided to return to Germany. threat of vast losses to France's resulted economy Luxembourg talks.

The

For three years the territory's

marketing of Lorraine øre.

The Cerams agreed to pay 550 millions of the 800 million marks which the vast scheme will cost.-London Express Ser- vice.

Japanese China Sales Increasing

New York, June 29. Japanese

china is

being sold in increasing economical and monetary link quantities in many US with France remains, That is the

to beyun

one

main point of the treaty variety chain stores, ac-

to cording Daily.

experts have

commodities competition targe materials in the oils d

draft. unfavourable. alution was group and their overall supply that

But for another three years,

third of the Sour's They had lost ground for use in soup (260,000 tons in Lorins

will be against yield used

marketed of all were now

this French concerns, 400,000 tons prowar), and had only

partially been offset by increased use an edible oil. tons of traded (About 400,000 and

oll

now tvero coconut

food products against used for

An In 1938).

added 350.000 danger, the

report said, that the supply of competing ols and futa was also expand- ing, particularly in the US.

MAJOR PROBLEM

was

Retailing

have Although some chains coal

dinnerware carried Japanese by

for years, at most chain stores. however, the appearance of mich Imports relatively госем. Japanese inports are "coming up strong, the retail public tion said

The Bank Of England Statement

"Latch on to something that is a proven good seller," it ad- vised its readers In a special article.

"Chain store buyers head- quartered in New York say the reason for the growing impor- 1.093,400,850

tance of Japanese china in their 10,722,334

It bring9 0 320,003,273 stores is simple: 234,350.000 higher sale and it tuns n ready

32,236,000

market.

About Double

London, July 1. The Bank of England state- merst for the week ended Junc 27, reads ne follows: Note circulation Publie depoalis The major problem, according Private deposits

Government securities Other necurities to the FAU survey, was that no

had Receipty growing country coconut

modern agri-Radio yet developed n cultural or industrial structure. afany of the producing countries were subject to the strains of

68 DILASS

17.0 United Prem

Although a 16-piece quarter set in Japanese china selis for

making newly-independent states The Bank Of France and $7.98-about double the

viable,

اله

Statement

M-

price for domestic earthware there has been " lack of sistence to price by chain store buyers."

come.

While some producing coun-

for an

tevaluation.tries were trying to raise yields upward

Paris, July 1.

"The buyer for one variety adjust- by better cultural practices, past

state- of France The Bank any They argue that

chain gave evidence of how im- an control and replanting with high

almost werement for the week ended June portant Japanese china has bo- several For the past ments should be made on International basis, and not bi-grade stock, taterally. Estimates of a possible faced with the Auture prospect 21, reads us follows:

This of declining total outpul.

declined of revaluation

had the of upward

Total other currencies 143,706,450,000 in his stores Deutschmerk

between was due either to the spread of Tou! gold holdings 301,204,302,420 years, he said, dinnerware males rango

steadily. Then the chain did two disease or to the declining area sight balance abroad

102,000,000,000 ₫ things: Brought in a lot of new D-mark 3.80 and D-mark 4.00

in EPU under coconut or even to in-

and added to the dollar compared with the

the Advance to Stabilis adequate replanting mel

domestic patterns tion Fund................... 184,089,999.8506 present D-mark 4.00-4.20

Jupatrese china. Increasing proportion of senile

Opposition

the

of much

deportia

dr

Franc

2,811,503,040,43

This year sales have shown a big increase and are climbing 148,917,031,323 all the time,' he says.-United

United Press.

of Bank notes In trees as in Ceyien and most of Total bills discounted 1,334,608, 500.000 Morcover. oulation the South Pacific. The National Bank strongly domestic markets were expand-Current accounts

countries and such suggestion. Ing in producing further into opposes any Their argument is that Ger- this

export surpluses, many's fighting hard to recover

The poor quality the ground she lost during

Crodit terms nro WAT.

Im-copra procured and the lack of pertant factors in many good acceptable standards and grades German also contributed to make mar- export markets but firms. it is felt, with their ket prices for copra among the stable among primary capital slashed by the war and least

the report currency reform of June, commodities,

to

FLUCTUATIONS

hence should play it safe

economists there

con-

of

Washington, July 1. the The Administration believes the domestic 1948, are unable compete tinued. cotton textile industry should apply to the Tariff and the Deutschmark value.

The effect of violent year-to- on from relief Commission for any

Rome reports песезвагу

average fluctuations in the year talking bluntly to ate Japanese competition, officials said today. the

Hallon public there days: You prices were severe on produc?ra must consume less, invest more, returns and on the value of the

Such instability trade. committes The Senate They said the Administration rise

purchase trac not want the dees

to antagonise proved a watered-down version and curtail instalmcat peaka between

clamping impert by

resolution Introduced by Sen. If you really want to się Italy's earnings had lil effects on the bale of payments, and hence 530-575 level before 1950 bows Japan

Income huge unemployment reduced, Frederick G. Payne and 25 other

Import pulley, an L. quotas on her products unless

of There is growing emphasis on out.

employment generally taking and can be proved that they are in-

of Importance But others are less sanguino

the Philippines and toward steps

Im-Ceylon, about stock prospects. Standard Juring the American Industry.

the famous Veron almost everywhere in the South & Poors, for example, notos a

for the creating of Pacific. degree of uncertainly surround-

The

for greater report called question of whether ing the

jobs for Italians in 1905 end the wiping out of Italy's international co-operation there Elsenhower will choose to run. disturbing less

"While the odds appear to be

chronie execes of imports over between producers and between consumery aver that he will be a candidate and

Sen.exports.

Elsewhere in Europe; producers and

such questions ne technical 'de- be re-elected, prudent invest-

velopments in coconut culture, Fortune Magazine predicted {ment policy must make

statistical

and services 1990 would be the best bus-allowance for a negative"

markceling ness year in the nation's history. prise," it said

modily intelligence, arrangements, trade polley and and supply long-term demand intentions-China Mall Special.

Sleek meanwhile insista thut any wage boost would have to be made up from a rise in steel prices. Many put this Agure at about $10 ton.

Elsewhere last

wero some

developments.

week,

Боте Bur-

Industrial production, it anid,

Two-Fold Effects

would be two per cent higher than 1950. What's more, It thinks there'll be a

DOMO

The Administration's stand was clarified efter the Senate Finance Committee urged the Tariff Commission to speed in

Investigations dustry-requested of the domestic effects of im- DUTLY

of textiles and othee products.

Signs Posted

version The original would have ordered the Tariff the Commission to investigate effects of all textile imporis.

Deal With Problem

have on

said The Committee Payne's resolution would required separate Inquiries 790 different types of textiles, even though heavy imports now are concentrated on only a few types.

new

end of

Mr May (August 1939 equals 100) NY Cotton

Exports

both

com-

Brakes On Switzerfam!--the most widely discussed subject is the rise in index which the CorumCT Omcials said the best way to

It cald Industries which feel jumped a full two points, in "further.

whother domestle injured by import competition May, from 173 at the end of Others think that

a decision determine

Commission April, to 176 producers are being hurt is vigorous upturn" for 1057. The

can appeal to the

at tha run magazine.

investigations. had

good by the President not to

present an "escape clause" case for specille words for the hard hit auto rain,, would also exercise some

to the Tariff Commission. In T.C. Jackson, executive Vice-Some blame the Government's of ther American decree, increasing the milk price industry. It thinks there will be restraint on the expected mum-

of the changed mer rally. The oxperta naist this way, they said, the US could President more buying 1037 models than had been the that the more favourable trend i cvolt arbitrary and discrimina- Cotton Manufacturera. Institute, i fractionally, a move which also In the past, the old the committee's action "has resulted in higher prices for of stock prices in recent weekstory action

the choose and buitor. caso in 1956.

indicates the economy ip wirony-state department on criticised spotlighted the fact that

ample

New York, July 1, Administration hade discriminatory legislation on-

Roports from Amsterdam and That would be welcome nows then many forecaste

ocied in South Carolina

Row colton exports by th and mithority to act docisively now Bruse reflect concern over the

tination og reported in bales however, Alabama against Japanese texto detebilsh import quotas dangers of Indation. indeed. Only Jately has the in- believed.

By to work of its

and dargo, dustry begun

tiles. Theo days require mer-solve the problem of rapidly

the by the New York Cotton Ex- что clock Inflation, care financial experts continu

cotton crossley colon textile! im-

put brakes on change for the 1935-60 season backlog of '900,000 unsold

Government has· bextiles to post signs to that ports." after months of production cut-strow the selective nature of the chants wolling Japanese

185,00 buying down to June 20 were as follows: maricot anti temper their backs and layoffs.

He salt the Cominereo, Ajfel-

043,230 thusiasm with constituations effort.

··· 1,004,000 Prentice-Hall. analysis, tad storming from the two-fold Japanese marchande priested culture and State departments payments ranging from 16 to 30: Briti W assured the Sonato Foreign Re per cent are now required. fon Orien sime good things for second effoats of President - Elwonhower's that the State Iowa, viciated hals 1930. In its current report political intentione and the over- 1953 US-Japmics Treaty of lations Committossey would the time purchase of much items Carde

and procted" to deal with the probe / Indios Vacuum cleaners and 3 economic picture-United Friendship, Commerco

lemUniod. Prous. Busitzēsu, thn, openc

Jem United Press. gone over ali manjoe-Industries Ploma

+

to

#the

Navigation,

Contraecié

for

Press,

TYPHOON MAP

with revised codes in force as from

1st April, 1956.

$500 MOUNTED

from

$4. UNMOUNTED

South China Morning Post Ltd.

HONG KONG & KOWLOON