1956-08-27 — Page 9

TRADE

THE CHINA MAIL, MONDAY, AUGUST 27, 1956.

aunch

COMMERCE SECTION

New Anti-Inflationary Moves Expected In U.S. HONGKONG

NY COTTON MARKET

REVIEW

By William T. Plunkett

New York, Aug. 26. Cotton traders found the line of least resistance on the upside in the futures market last week.

All deliveries freats March (1007) forward touched 712?W seasonal highs, while the near-

by months beltered The topx reached a week ngo

Technical realising and hodge

early gains. selling pared

bul ni Friday's chee the list still ruled 17 to 34 points-85 cenla to $1,70 a bale-higher than the preceding week.

Strength reflected a number

cited:

1

REDISCOUNT RATE MAY BE

INCREASED STILL FURTHER

By JOHN MORKA

New York, Aug. 26. Financial circles throughout the United States buzzed with fears of new government anti-inflation moves as money rates surged to their highest levels in over two decades.

STOCK

EXCHANGE

(From Our Corespondent)

Business done on the Hong- kong

Exchange Stock

this morning amounted 10 ари Noon proximately $142,000. quotations and the morning'o transactionis:

shares Buyers Beltern Snter BANKS 211C Bask INSURANCES

Waterbos:

(Q) IN

Wheelcek DOCKS, ETC. K. Wharf

Speculation was rife that the Federal Reserve System-ING the nation's money managers-might further tighten its already firm grip on credit by a further increase in its redis- count rate. The rediscount rate is the rate the Reserve charges member banks making temporary loans in order to add to its supply of lendable funds.

The increase-It rialis cs--would

مرز

it

the

in

mate-(34 per cent by feading banks.

sixth This is a full pertentage_point KUCECRIVE Increase

the higher than the rite in effect a 17 months.

wili year IL

Infestat rotes BRO. Other that borrowing will are scaled

upward from the become more selcctive aniel cimluating, with ull kinds

mean

dis-

Vonsumer

and government--having to pay more for money which will be harder to get.

prime rate.

2. Mas! banks raised its rate on loans to brokers and deater to mance atuities purchased from 41⁄2 per cent. Investers in Tum will have to pay 3 per teat

for louns from broker.

Bankers acceptances rates

pe

3. were boasted anther centage point, the wood Fiderul Reserve just is few days.

day.

(The

Talse

<did

interest rates of ly Friday, August 24).

announce

the effce-

High Rate

Instalment Plan Goes To School

New York, Aug. 20.

the nation's

Thousands young people will go ta school thi instalment

this year plun.

חנו

A spokesman

Jo A personal Buance company suld many

i partrits are sending their chil-

itren through high school

the same

the family cur

'viden (01 LAND, ETC. HKC Hotel

HK Land

Humphreys

Really

RUBBER

Amaig.

Trust UTILITIES

Yetitst

Light 10,

1825

49 1035

45

$0.20

23.00

120 m 23

U

*B 40, 413. 13.8 14.10

13.10 13.30 1500

* 001,

300

£

20.10

1.45

1.45

1.50

24.20

son 11

24 24,10

C Light (N1 21.30 21,70 Electric

Telephone

101

100 110

32.90 2000 24.10

327 h 3000 | 31,

24 en 23.20

1000 Ń 20 1000 » 25.10 100. 28.30 500 24.10

38% JUN 1400 al 38%

350 t 24

IN INDUSTRIALS Cement...

23.00 24.20

STORES, ETC

Dairy

Watson

L. Craw.

I OTTONS

13.00 10.20 12.00 12.00)

500 43 30

Texte Curp 425 Nanyang....

7.00

200 20.40

Singapore

$1

way they

Stock Market

CREDIT FOR AIRCRAFT INDUSTRY

Duenveldofr, Aur. 20.

The West German air- craft Industry's Federal Association has announced that a

a credit of 35 million marks is being distributed to major firms to help the industry resume production after

an 11-year shut down, Orders have been

ceived to

produce

071

foreign aircraft of three types in Germany under Hoeneo. -the

Page

London Markets

Fail To

Hold Brightness

By C. T. Hallinan

London, Aug. 26.

Markets opened last

week

quite

brightly but failed to hold it. One headache was the series of Wall Street

another, of

the growng impasse over the

Association

said.

The

are

falls; 194

Plaggio-P 149, an

aircraft

and

Fatlan training plane, 360 Foura- CM 170-B Magister. Freneb les trainer;

117 BNCA-N 2501 Norates, a French

transport plane, In addition the Dornier works are building 160 planes of their

own design, the DO-27 reconnaissance air- craft, the first of which are expected to take the air in about two months,

Engines for most of the aircraft produped in Wesl Germany must stit) be im. ported. - China Mall Special

Egyptian Goods

Go To East

European Bloc

apparently Suez Canal.

Chief

course,

was

victim was the pleasant turnaround in British Government stocks which had started to edge up out of the bottom. Gilts need confidence to compen-

incomes

sate for the modest

they distribute and when confidence wilted the giltedged market wilted too.

At the close Britis Governments

weru

ek bound to rise slowly in price if crty they can escape the shocks very disorderly pleture with of internsMonal unpleasantnesses; War

Loan

and t per cent historically. they have several Consola strowing a frm gain of times found the

month five-sixteenths whil: the others August an unpleasant month.-

of showing a firm amox ranging United Press.

from Old Consels 1/18th to s

much as th

They took very but the in-

cheap these days stitutions still showid anxiety to pick them up. But leading industrials also hud rather disorderly appearance by į the time markels closed for the week.

Heavy Buying

U.S. Apparel Industry

Cairo, Aug. 26. The Egyptian customs administration today pub- lished statistics revealing more than 26 per cent of

Associated Electrical Indus- tries enjoyed heavy Egypt's exports

buying- to the Eastern European bloc term atomic future-and gained Department with statistical apparently inspired by the long-

went

New York, Aug. 26. Members of several American apparel industry organisations have

been asked to supply the State

of factus Trade Covering in October In the wake an it a steady full in the certificated stock; 2. Increasing complaints | borrowers-business, of crop deterioration caused by drought conditions: 3. Estimates suggesting cut of one/half to a million bales in the next Experts think the Board might

even unisounce 4 estimate:

Lo an increase government crop

the rate at its meeting on Thurs- Increasing

of acreage amwunts pledged to the soll baak; 5 Heavier koma

which entries, point up to talk of a producer | Board

for holding movement

higher prices; 6. Political promises for

In any case, many feel thức á 4. The cost of borrowing by college farm prices in the election year

rate

becsst 8 Revitable-und the US. Teasury rose to 23-underwrite Looking at the statistical particularly in view of your highs as the rate on ninety-washing machine-on a pay-na- picture, The mathematician unprecedented demand by busi-one day Treasury bis offered

you-go busis. pondored the

probable supply ness for funds in the face of last work rose to two-tenth of iluallon next year in view of dwindling of inflation and an

This a point to 2.818 per cent.

Rudolph Neuburger, presiaunt the backwarthiess of CUTTY-OVET

upward tread in prices and

ralei

well above the current of the Tuition Plan, a subsidiary crop progress and in view of the wages whinh might ultimately 2 per cunt discount rule now of the CIT Corp., said instalment one mullen acreage pledged to

take the term out of the pre- In effect in tea of the twelve plan education has been

in Brokers today quoted the fourth place last year among the soil barik,

rent boom and lead to economie memb banks, Only the San operation for nearly 20 years. Ifollowing stock prices:

importers from Egypt as com-after day, and sustained a lot of chaos at some later date.

Francisto and Minneapolly defstarwa

Openingpared with eighth place the pr:-elling. Royal Dutch icet rome group-organised to more effec- tricts hurve higher discount customers.

£20 above FL

1950 Tow Entus

of fively oppose Japanese imports vious year. China rauked rate-3 per creat,

Icst-have been advked by the after being tenth the previous 68%; British Petroleum year, while the Soviet Union 7/-, Burmah Oll 5/- and Shell Department at a meeting last

Transport

Wednesday to produce the data In a week or ten daya,

Mr. M. J. Lovell, Director- Counzel of the National Asso- ciation of Shirt, Pajama and The report did not give figures

In Sportswear Manufacturers, al- for export trade to foreign coun- | favour last week. German Dawes

the tributed tries, but said henceforth Egypt Loan, non-assented, lost £1 and

Department's in- terest would

to the inclusion in the £14% while restrict importing of the assented,

the Democratic platform of 31.70 duxury or unnecessity goods, Young Loan, both

plank both co-arsented calling

corrective for $22 and would try to increase pro- and ascented, wer? down 12 sa

nction 33.40 duction and subsequent exports were also the two Potash Loans. harmed by imports.

when American industries were $1.48

the Preliminary estimats on next government

report crop suggested the figures be reduced substantially from the 13,552,000 balos,

4

The certificated stock dropped to a my low at 3.472 bales,~~ United Pres

London Foreign Exchange

Landon, Aug. 20,

New Levels

121-

ནི''

with

Singapore, Aug. 27.

Rubber

Co

Borneo Petroleum

28 student Now

Lintang Gutu approximately

Lid 16,000 students are enrolled,

Britis

Syndicate "More and more parents have Consolidated Ti Smotterd found it convenient

Ord, to make large semi-annual or annual of tuliion and other sald Mr Neuburger Isn't surprising because tuition costs have more than doubled in the last 15 years."--United Press.

A high rade in Treasury Meanwhile, while the money Bucing normally reflects the market waited for the Federal increasing pressure on money

und is taken us further of payments heserve to make its move, terest rates on prime

Irend kans, inflationary

1 the fees, bankers

(used acceptances mostly foreign trade) and loans to brokers and deal:rs edged to new levels løst

столому.

5. The higher cost of corp-r Anancing has forced revisions inj

The pressure on money FOR Ally four major bond offering, over

Singapore Rubber

Market

values

$1,02

BOU-

27/9d

Fraser & Nanve Lid Ord, Frater & Neave 7% cum.

$1.95

pret

$3.00

$875

Hongkong Tin Lata.

frad

#1.72 0.713 $2.87

Co.

Hongkong Bi Shoghai

Banking Corp.

Jenipea Luo,

Lunas Rubber Estates Lid. Matayan Breweries

New

Serandah Rubber

Petaling Thi Ltd.

Singapore Cold StoragAZ

Ltd

Rames "lutel

South British fusurance Co

Ltd.

Straits Trading

Strait Stearn-dily

United Engineers Ord, Wenme Bios.

exdivCluna Mail Special.

in 1955 compared with 144 shillings to a new high of per cent in the previous 73/3 but Rolls Royce tumbled

3/-

and Borax American Invourite lost a 10 shilling

Oils were in the news dig

year.

Czechoslovakia

captured

Com

occupied lenth place as pared with seventeenth in 1954.

RESTRICTIONS

31-

ita

data

on the effect of Im- deferred-en ports on employment, pro- friduction and prices, it was

revealed today.

Incidentally the ahares of the Suez Canal company lost £0. closing at £50% compared with Tast week's £02%.

Foreign bonds were not

Members of the newly formed

Government non-assented alo

enlarging the Government's oil Japanese non

non-naverteds and ex- $13.50 nay with a view, to import-senteds were nearly ell tree-

According to Mr Lovell, no $26.00 ing loss oil from abroad. $14.25

tionally tower while the Tokyo mention was made of the poss!-- $8.00 Egypt's Minister of Commo.co.5 per cents non-essented gained bility of imposing

a quota. $2.99 Dr Mohamed Abu Nerir, today £1 and the

officials, including 1030 conferred with a trade mission lost

representatives £1. Japanese were all

of the from East Germany led by the fow shillings higher. Dollars Justice, Agriculture and Com- Deputy Foreign Trade Minister, bonds were severely marked nerce departments, talked in

of Herr Heinrich Rau,

the down in accordance with 0.

an agreement their ang

with importing

Japan whereby the latter might International of nirety thousand Wall Street fats.

voluntarily limit exports to the points tome of chemical feriliser from Nickel logt 6%

ond

United States locat East Germany in exchange for Bethelhem Steel 6 points; 07)

by specific this

of goods zadgar- ulher hand, Shell Union categories Egyptian cotton and other the

ments--United Press.. gained 2 points. 0.04 | agricultural products.—Reuter.

and fears of raise in the redis- the vast two weeks. The Aug- coval rate e mbined with unclated Investment Company re- seiflement arising from the Suer duced Ft #theduk offering Conal controversy to whittle some last week $50,000,000 $30,- $5,000,000,000 in market valua-900,000. The General Acceptin

Singapore. Aug. 20. trimmed tions in the past six sessions, Corporation

The pro

The murket was quiet on posed offerings of $20,000,000 by The ad market was like half and put off its sale until

sellers rezerved niti Saturday with **and Foreign exchange rutes closed | wise hit hard and new tunnelogirext week.

de- Last week other

gradually

In- on Saturday as follows:

plan of major American con-

postponed offerkigs preciated. There was some

erest in forward deliveries bul pantes running

do millicus of companies

fetalling

lower grades were quieter.

Future closings were: Nu t rubber per tu. Sept. 0916-09)*

Business was done Oct. 05-0934 Nov, unquoted unofficial exchange market 8, US dollar (per #1)

conering at the following rates:-

0212-6314 | Sterling notes (per £11 096-09]| | Australian notes (per £1)

Indonesian rupiah (per 100).. Siam feat (për 100) United Press.

Singapore (Strakte)

New York

Montreal

Austeri

Copenhagen

Brussels

Lisb

Oslo

Stockholm

Zurich

Dihers were unchanged

come

$125,000,000,

270-2.70-5-10 dollars were likewis, unsettled. presumably unwilling to pay the high rates. Meanwhile Ruing At midweek, there were there long-term Treasury bond prices 19.34-1034developinentre

hit new 1958 lows.

2.73-2.73 10.62-10.83 ! 133.07-130.00

80.10-80.20

19.9034-19.99

14.40-14.4025

12.17-12.132

-- United Press,

↓」

Nr. 2 rubber per t. Sept. 1. The "prime rate," the rale

No. 3 charged for loans by companies The nation's banks now find No. 4 with the best credit standing. | themselves caught between a Spot rubber unbated

demand was boosted to 4 per cent from tertiße

for

credit-No. 1 pale crepe

Blanket crepe mostly from busines to under- write current needs and future nsion profgrammes. Business! by major Now York banks, by way of

of example,

12ta! 2 billion more at this time sugared to last year. A record $3,000,000,000 in securities were offered for sale in the [second quarter of this year, a $750,000,000 rise over the first quarter.

Freer Movement

Of International Capital Predicted

Montreal, Aug. 26.

The Bank of Montreal predicted today a freer movement of international capital to help under-developed countries with the operation of the International Financial Corp. this month.

$100,000,000,

and

Marly

Most of this rise was in bonds

to finance part of the record business expansion new in pro- FTVER

Any lightening in the credit structure of the nation

w

tally set off a new round of Federal Reserve approved

critickm. Last April, when the

its

most recent rise, in the discount rates, the auto, appliance and housing industries complained its sales were being discouraged.

They

Insisted there was need for any credit braking

at the time. At that time also, renk-

Exchange Rates

Jes the

15.08

12,58

18.30

750

Bank Rate Increase

Convulses Stocks

By Elmer Walzer

New York, Aug. 26.

The Bank Of England

Statement

Londen, Aug. 20.

The Bank of England state- ment for the week ended Aug. |22, reads as follows:

Note in circulation Public depOLLIE" Private diposits Government securities Other securities Rezepts

Ratio

Stocks suffered a tight money convulsion in the first three sessions this past week and made a partial recovery on Thursday and Friday on light The volume.

Banks raised prime interest rates and boosted brokerage loan rates to 4 per cent from 4 per cent. The market boomed on call money at 10 to 20 per cent in 1928 and 1929, it

was recalled.

Sterling 1,924,300,00O 13,137,771 200,$89,583

35.901.826 77.929.525

Unlied Presa.

Bank Of France

Statement

The Bank of Fratice statement

Paris, Aug. 20.

for the week ended. Aug. 13, | reads as follows:

is

Total gold holding.

to

Tolki, ther

currencies

201.304.308,425

10,350,008,131 22 116,215,800 200 128.300,000,000

other

circulation Currest!! #oobunta, and

depacite

3,000

Pres.

The IFC, the Bank raid, in, in the three years 1952 to ing officials in the Eisenhower After the banks raised their the week. Ullitter, down Its monthly business review, 1954. Or this more than 70 per Administration were divided as rates, half of the regional every session, lost 1,87 points was formed to help the flow of cent

to the necessity for the move, Federal Reserve Banks on Thurs- |ciowa at 03.80. The average for was in petroleum

Sight balance abroad. private venture capital from mining enterprises.

day were on a 3 per cent dis-65 Blocks lost 3.20 polnim,

ALFU the developed

Great Fear to the under- "Recognising the cold but not

count rate, up from the previous *Some of the selling early-in | Advance, so Currency --grun developed countries. It has an unreasonable

rate of 2% per cent. This move

week reflected fact that indivi-

the Suez Stabilidation Canal cells.

Total balls authorised capital of duals or companies will not rise Thirty-one their money in overdos pro-

Although nothing official haa countries have atrendy become |·jects Merely. Because they are been asid last wesk, ', President!** 31ocks early in the 'weak, stone Middle East olis ́farid no) Bank notes in

said. On Friday another nebank Cleveland - booted

mere

poorly than many after

boosted (ità (iseuëm. recent steel strike settlement discount rate step-d

ints on the Gulf Oll lost 4% points on Canada's relationship with venture promising to be a pro- and the resultent price rise that Money the International Finance Corntable one, the IFC is ready to inflation was one of the danger blau market men said the week, Royal Dutch 2 points

for money. which poration is "raore likely to that beck its appraisals by string

and Gelly Oil 2 pointed sigos that would have to be forced the rates up reflected a *Addressograph fell & point of a supplier than a receiver the risks with private interents watched. Secretary of Com-buying Industrial pieture. This and Continental Oil44. points. of capita furula

the Bank and landing the weight of its merce Mr Smelair Weoks ward¬ | time the big credit is going into bed 3 pointsvor 'more. noted.

ed also that a watchful eye industry. In 1929 it wont into

memberr, having subscribed a exhorted to do so, but only if Eisenhower noted

Ittle over 78 millions so far.

Not Unreasonable

Ure is 'n good prospect of

n

prestige would

be miturising would have to be indoed li

decribed as practically on the Bank: nchiɑRRY fationery WE DONATE stocks. Today's stock unarkut,, is "||[Alberto fio, calabëlstiment:'of?. Most of the flow of produc- |

this Right now the great foar in cash basis. Ive capital for the establish==|| Enew A.- Infernational tending that businceren will expand mant, de expansion of foreign station, shift -£n 1. the their produtive: 7), capacities, ukehdiaries...) has come a; mainky batter and an increas the Federal oficials, while notios-

the United

unt of pro-ably silent ca this reasons for The Industrial Bank observed, addinsize of the muy

their a monetaryzmovay in the 13,40 : pokite ky:LEW

est, are known to feel that 11, meirions of the

[lid][oconomy," thoët” of crippling the points, Rails

boom--United:Frassi

land clised at 102

amount. Invested in countries countries; did

Canada and develop Over Kurtga "Big Boen 26- of- the kutuonly: $100,000,000,| Prém

the

New York Cotton Exports

New York, Aug. 20. Raw cotton exports. and Itións

·reported! Now

In

Bing

Average Fel

Bethlehem Kansas Union Carbide, Du Pont

we were sever -feil Amaridan: agricult

50

points and US Rubber ine 499 on. United Pr

follows

Bound To Rise

There Was highly selective |buying of gold shares but these selectives stood out in a rather dult marcet.

to

General opinkm that British Govierminis 6749

NAMESAKES

Answers: 1 Jiba, 2 Sailor, a Fight, 4 Ensign, 0 Battle, o Forectatic, 7 Navy, 8 Below, Port, 10 Prow.

Jean Benbow (Admiral).

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