1956-12-03 — Page 9

HONGKONG STOCK EXCHANGE

(From Our Correspondent).

Business done on the Hong- kung Stock Exchange this morn. ing amounted to approximately 3506,000, Noum quolations and the morning's transuctions:

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Tightest Situation

In Steel

New York. Dec. 2. Curtallment of European steel production caused by the Suez crisis und an in- ereasing domestic demand will make the first quarter of 1967 one of the tightest in the industry's history, Iron Age said today.

1.

THE CHINA MAIL, MONDAY, DECEMBER. 9, 1956.

TRADE amel COMMERCE

Oil Shortage And Tight

Money Position

BUSINESSMEN ATTEMPT

TO EVALUATE

LONG RANGE EFFECTS

By JOHN MORKA

New York, Dec. 2.

Leaders of US business and industry struggled last week as did their counterparts in other countries-to evaluate the long range effects of oil shortages and tight money markets.

GERMAN,

CANADIAN COMPANY

Toronto, Dec. 2.

Further

details have been released here of the Canadian company to be formed by Mannesmann AG of Dusseldorf to cen- tralise administration and financing for its American subsidiaries.

America, with some 285 million barrels of oil in storage and a production capacity which could turn out two milliony, and plastic tubing faciil- barrels more daily than at present, had no immediate oil pinch tub mills, and processing plants

of its own.

Substantial

Increase In

World Sugar

Bird Amerun business mMITH blinds so far removed from oil that they would hardly know n barrel of oll from a lub of lord nevertheless bad an HT ruediate and direct worry about halting the Suez Canal Boat tifeline to Europe,

WEEKLY

COTTON MARKET REVIEW

New York last Gathereal 71 week for the 43rd annual con- vention of the National Foreign Trade Council, businessmen and US bankers from all over the

of European told each other

orders Cation

for By WILLIAM T. PLUNKETT of automobiles, machine tools and others of the great variety of in world sugar production factored goods which the

A

Rome, Dec. 2. substantial increase

is accompanied by a steady trend in higher consump tain, a report of the United Nations Food and Agricul-

(FAO) ture

said last week.

The report saxl that world sugar production, excluding that of the Soviet Union and Eastern Kurope, bad risen 13 per cent in the past five years and est- maled the 1955-50

production

at 31,9 million metric tons.

This trend towards hight

The weekly trade Magazine raid that lack of oil has fureced¦ consumption i Mkely to con- European CHESTER

ent thrue, the FAO report said, Into steel prochieison

1957 and that because of its Through # combination of sugar stocks in major countries substantially reduced and will be demand, Water Weather The Magazine towards the end of this year

Κίνει price, the 1956-57 crops do not said its steel compostle toppert the composite price of promise of being much greater pig iron for the first time since than those of 1955-50

MDK

זיוי וגן איר

since

1948 and the sixth time

105. The price is now 64.03. sigaut 83.04 for pig mens,

धे

It

The magazine sund the price No. 1 heavy melting sarap in- ton in laburgh. creased $1 The price of No. 2 heavy melt- ing was $59 a ton, up $8, and No. 2 bundles $54, up $0.

The

of secondary price grude of steelmaking serup in- creased $7 a ton on a small pur- The chase in Chicago, it sold. magazine said Detroit auto in- dustry demanding more steel. companies Two automobile have asked one producer for more cold-rolled sheet in Jan- ery," I said. "One auto maker 400k 40 per cent more than had ordered originally.

il

The

US exports ncross the Atlantic, Geared To Oil

Europe's economy is so geared its importers were to of that merving cautiously where they moved at all. Thus the Suez erials had its impact thousands of milles

In Detroit, in nway Chiengo and, perhaps, even in Racine, Wisconsin.

York

019

money the

New the In market, described tightest In many years, the falling off of European

urdera effect

kad

an immediate Bankers acceptance rules had been roisid is of a percentage ponit, the Qurd such increaso În a month and ninth this year, Tunkers becsptances are usedl extensively to finance Imports and exports,

indicated The FAU report

in qugar that the greatest rise consumption was registered Astu, the Near East and Africa. have increased their

consump- tion by 48 per vem during the It past five years.

Although sugar

133

Determined to prevent an in- flauorary spiral being generated Ly

cred!! ensy

during the record US Industrial boom of the past year, the Federal Reserve thrice during the year boented the discount rute—the

on charges

loans to member banks. The discount production rate now stands at 3 per cent, incretises since the second the highest since the mid-1930s. world war have outpaced creases in the production of oil other major food crops. FAO Bot said, the 1950-60 year has

This, been an outstanding one. the

was roport Enid,

due to weather conditions must im

sugur growing portant tries which has only been fair. In Argentina a severe frost cut back «ugar production 141 084,000 tons namely 25 per cent

coun-

Withheld

When the Mideast crisis came along the Federal Reserve was reportedly ready to make still n fourth Increase in the rale, but withheld it on the theory that the crisis flself would net as a brake on lending. Un- precedented tightness of the

second aule company was turn- lower than the 1954-55 produc- New York money market indi-

ed down."-United Press.

tion.—United Press.

Cotton Consumption Exceeding Supplies

The carryover on next Aug. 1 probably will be close to 2.5 million bates smaller than the

entes that the agency's theory was sound,

Wall Street and many business men, however, feel that the governmcot has been overly cautious in its approach to In- flation and fear tightness money may pinch off business expansion as it already haa dinatically reduced bame building.

The Commerce

and Labour Department last week, however, estimated that a reced 44.1 will be spent on new billion business construction this year and another record 48.4 billion In 1957. If these figures turn out to be correct the fears of the easy money factions would appear groundless.,

Slow Down

It

Ihat expected

the $30,000,000 capitalisation in the new company will include new copital as well as present invest- ment in existing North American installations, and that Canadian and US investors will be able to participate in the new company through a bond or stock sue

Mannesmann's international operation include power, metal-

ties in the US, and steel works,

In Brazil.

the corporation present has offices in New York which handic the importing of materials. It is understood that these office's wii! continue to handle the importing duties while the new Toronto office. will take charge af pipe pro- duction.

At

SEAMLESS PIPE

Mannesinana

ready has a | $20,000,000 plant nearing con- pletion ut Baulte Ste, Marie to make seninless pipe for oil and Industries This will be operated by

subsidiary, Mammesmann Tube Compitiy Limited.

Canada's expanding oll In- spur for

New York, Dec. 2 Coton futures finished the week on a downgrade after see- sawing nervously in quie deal-dustry provided the

Ings.

At Friday's close the list ruled 17 to 29 points--85 cents 1 $1.45 a bale-lower than the preceding week.

Lessening of immediate po- litical tension In the Middle Fast,

the discouragingly plus slow situation in the textile and the smaller rate markels of entries under the govern-

loan mem

programme,

were among the factors elted for sell- Ing pressure.

the Saulte Sje, Marie enter- prise. The Mannesmana in-

terests sow a potentially big

market for their pipe produels nud Inunched 11 developing, modern mill which will employ 400 workers.

01

The mill is close to the plant Corporation Algon Steel which will supply its steel re- Most of the pipe quirements. previously imported from _Ger- many

nt will now be made Mannesmann Tube.

The mill will have a rated capacity of about 225,000 tons China Mall Special.

11 year......

Most of the interest centred in December and the other nearby deliveries, Trading in, the new crop months languished in face! The Bank Of France

of uncertainty

ever the gov

ernment parity support rate for the new crop and farm legisla- tion expected to be introduced when Congres reconvenes in January.

Statement

Paris, Dec. 2. The Bank of France statement

the in for

week ended Nov, 22, rends as follows:

Evening-up operations December accounted for part of the nearby "month activity the spot month vibrated within range of $1.40 a bale, finishing the week at 34% gents a pound. Open contracts remaining at the week ended were estimated around 52,000 bales. Spot month trading w end in the noon hour on Dec. 12-United Press.

SECTION

FRENCH CAR

Page

WALL WALL STREET

OUTPUT RALLY BEST

Paris, Dec October statistics of French motor vehicle out- put show that the Indus try's expansion in that month was not affected by the recent sales aliculties and the oil supply problém.

Overall October output

totalled 84,807 velinics,

compared with 70,954 in September and 63,313 In October, 1955.

Car output totalled 60,121 against 55,750 in September and 48,011 in Octobër last year.

Commercial vehicle vulput fotalled 18,018, against 15,018 and 15,113, and bus output 201 against 191 and 189.

Sales resistance in No- vember

to

reported have hit medium and high powered об Buch Sinea's "Vedatio”, Renault's

"Fregate", Peugeot's "408" and the

large

Citroen models. But boh Renault and Citroen

report that their smallOr models con- tione

in demand with delivery delays of overal

months.

Second hand car dealers report that bustness practically at a standstill. Friots on official market lists are conaldered to be purely nominal, Buyers sta thought to be waiting until December, when the Government's petrol potley will be clearer.

The Government ärglärd to allow more favourable credit terms for Recond hand

sules. enr

Entilat cash payments reduced to 30 per cent from 30 per cent, and payments can be over 15 months, spread tantead of 12, for cats and 18 months, instead of 15. for commercial vehteles.--- China Mall Special.

Superphosphate

Factory For

South Africa

African

OF MONTH

By ROBERT SHORTAL

New York, Dec. 2. Pent-up demand exploded on Friday and the stock market ended the week on the best rally in a month. The govern- ment's announcement that it was putting into operation an emergency oil programme to aid Europe and Bethlehem Steel's sur- prise stock split proposal triggered the Friday rise.

Steel and all issues starred in the final session. Friday's rise actually was an extension of the upswing which Kot underway late Thursday when ŋ new test of the market's lowe brought in support at levels where three other advances storted carller this your.

At the end of the week, the Industrial average stood at 472.78 up 0.22 on the week: rails 181.09 off 2.47; utilities 06.42 up 0.07, at 05 stocks 167.24 of 0.54.

10 re-

Wall Street has come gard the area 480-404 in the average as a demand area 50 for it hasn't been pointed.

Stopping Place

and

US Businessmen

Urged To Change

Tax Programme

A committee leadery urged the disapiast wook to change

However, some market ex- perts believe there will be fur- ther tests of the markets' ability to hold above the recent lows. If it breaks through the cri- tical support area, the chartists say the next stopping pince may be 20 or 30 points lower in the

average.

New York, Dec. 2.

of 80 busincen goverment its tax programme on income derived from business operations obrood to avoid "International double taxation'

our

This is "one of the most im- portant steps

goverranont could take to promote and on- courage American foreign trade and investment," enid tho business lenders in their

"final declaration". Summing

43rd thoughts of the three-chay national forelen trade conven tion.

Statutes and tax conventions currently apply the full dores-

The overriding market issue continues to be the Middle East, Prices renot to developments in that area like a thermometer to hol and cold. Tight money also Is experting some fluence on the stock market. Heavy taxle tax rate 62 per cent to selling has been another factor corporate Income derived from behind the recent weakness in

foreign operations, said the stock prices.

businessmen. This imposes "burden' on American foreign Youngstown Sheet Tube,

investment in these ways: which has been contemplating a merger with Bethlehem, ran up Applies tax rate appropriate

more than seven points on Fri-o conditions in a highly dove- day and closed the week with a loped economy to profits derived net gain of nine points. Other In many cases from countries with a lower stage of economie steels also firmed.

1

American Investors at a competitive dia-

Amsterdam, Dec. 2.

The emergency oll programme development; The

Mears Albatross super- for Europe brought good de- phosphate works of Utre- mand info domestle oils, Barber operate

Oil addett 2, Richfeld Oil 2 | advantage against investors from cht, together with their and Continental % on the week. foreign nations which grunt out British partner, are plan- International Dils ning to establish a

firmed on right exceptions or substantial tax concessions for foreign com- South Friday but closed lower on the

Royal Dutch was down mercini operations; superphosphates week.

Nulimes benefits of tax rate 34. factory, according to the Newport Newa Shipbuilding reductions granted by: meny for and American Shipbuilding fell countries to encourage and at- roport company's

34 but New York Shipbuilding tract foreign investment--- 1955/56.

United PreR. countored with gain of 74.

Of the 1,385 The report sald the company's

issues traded South subsidiaries In

Africainst week, 475 advanced, and Rhodesia had obtained | declined a77) 158 held

results

New very satisfactory

and changed.

highs were chalked up by 42 issues and 67,002,800,000 that it was possible to raise ex-

new lows by 349. Bon Fund

95.100,009,000 ports to these territories,

Stubebaker-Packard was the Total bilia ducounted 1,044,047 291,001 Results in Ireland had

circulation 2,180,230,800.385

but the most netive issue, followed been favourble, Noles in Current accounts and

Steel, Canadian subsidiary had suffer-Bethlehem Steel, U.S. 1.39.913.700,637 deposits

and General ed

o small loss, partly due to Merrit-Chapman

the Motors-United Press. Increased competition from

Tota! gold holdings Total other currencies Sight belance abroad

in EPU Advance to Stabilisa-

Prane 301,204,302,426 15$12,001,42′′]

-United Press

Britain In Serious

Economic Position

By C. T. HALLINAN

London, Dec, 2.

Britain is unquestionably in a serious economic jam; the past week showed the

alarm.

U.S.

also

pro.

Albatross' three mein ducts are superphosphates, double superphosphates and mixed fer- tilisers.

EXTENSION

Albatross is carrying out an extensive programme of renewal and extension, particularly at Pernis near Rotterdam, where modernisation of the port facili

The com- ties is in full swing pany's investments since the

end of the war have now reach- 36 million guilders

ed nearly 36

while depreciation is estimated

re.

at 23.4 million,

The report also reveals that, Heavy selling of British Government stocks in order strengthen lis

lo str sources, the

will take represented a flight of capital from sterling, up a four million guilder loan

company promoted by the heated discussions of another from Institutional investors after devaluation. The Financial Times index of approval of the move by share, holders. A change in the arti- government securities closed the week at 82.38, cles of astociation will also be the lowest it has ever been. The giant 3 per capital from 28, million, gilders proposed to raise the authorised cent War Loan-some one blliton 911 million to 40 million. China Mau Įsterling outstanding-touched its all-time low,

Special.

Krupp Is In Search Of Contracts

NAMESAKES

Answers: --- 1

Achilles,

Odyssey, 3 Agamemnon, Aeneas, & Troy,

Homer

752

by

The Bank Of England

Statement

London, Dec. 2. The Bank of England state ment for the week ended Nov. 28, rends ás follows:

Notes. In circulatin

Public deporta

Pivate depositz

* Government, securities

4Other securities

Receipia

Ratio

Bierling 1,000,391374

203,861,020 43,704,071

United Press

As approved by the

Postmaster General. Hong Kong

Washington, Dec. 2. The Agriculture Department said last week 1956-57 consumption of cotton will

exceed production for the first time in six years.

Economists writing in the 1957 outlook. said consumption during the current marketing year

. Not unti Monday or Tuesday Markels. were concentrated is expected to be about 15.5 million bales, up about

will the country know what has on oil and the Middle East.. 4.1 million bales from 1955-56. They predicted

been happening in November to | Royal Dutch lost 4 sterling-to | In addition, the authorita-the country's gold and dollar 72 sterling stila well above lis production this season at about 13 million bales,

tive Wall Street Journal this reserves but a heavy fall-1958 low of 584 #terding down about 1.5 million bales from a year ago. past week UXITESIOG tho perhaps

to 198 million while Anglo-Egyptian fall opinion that forces which willpowers up

Idollars-Ans been generally a shillings 9 pence to nominal and million bales, far above the 2.2 of w dowa

ultimately

It looks as though prios of 31 shillings, on the socupted. million bales of 18955-66. reverse the curent trond to the end of the year. would see

had that report

boen Consumption of cotton by higher interest rates are grow the total below a billion dollars, nationalised by Colonel Naster, domestic mills expected to ing." The financial newspaper back to the levels of 1952.

Santiago, Chilo, Dec. 2. But

the other, leading olls,

German Industrialist Alfred

· balen on Aug. 1 this year.

tolal about nine million bales based this estimate on signs off 120,000,000 boles last year. levelling off of spending on new Industriais enjoyed on Friday to close unchangest or down of two big construction contracts though active all week, contrive Krupp arrived today in search There need ·bo no qualms The Department attributed the plants and equipment, falling ..

OL certain *.: amount of bear-

only a shilling,

from the Chilean Government, about a domestic shortage. The smaller domestic consumption off of machine tool orders and

which enabled pore of covering of savings the well-knowns to close with a supply for the 1956-57 year is to relatively higher prices for the record growth

Suez Canal shares lost £3 to America socking new business Krupp is on a tour of Lalin estimated al.... a record 27.6 cotton from February to July, cellmated during the second and modest gain on the week. Like £61: the British Bank of the He plans to remain here 10 million bales, this. includes 1950, and increasing mill stocks third quarters at 21. billion

Rolls Royce's rise of a sidiling | Middle East lost two shillings days. He arrived from estimate production of

to annually United Press. 13 of wovon goods in relation

bust know of them were down 1 though the National Bank of Paulo, Brazil, where `a Kaupp million bales,

les, probably Imports unfilled ordons from Felfruary

pr.2 shillings.

Egypt, oddly, rose 10/- sterling works for the construction of US to:

Mini 3000motives, buses 3

Tatu other South vehicles is underway, KYA. oyer ON. V. German Dawes and Young The Krupp firm has sub- Time from Loans fell £1% bath apontou

milled bids on construction of hilling 0 and: hori debetlocks, shillo 14 per a shipyard for the Chilean navy while the bruta Polash, Lost £1. Japancap at Talcahuano and for the con- ***Maxka | were eccentric, with, grains; and betruction 2,61, a copper, refinery,

Great, low of 10/-/of £1 distributed" for the Chileurs Government,

waped Myron here nå? Wait go to Port

record high of 14.4 million

of 100,000 bales, and the record through August. carryover of 14.5 million balce.

The case of mill consumption,

The cotton now, inisight isinwaver, probably will or Exchange Rates Ford Mond Unilever

Jost

odequate to moṛt US foreign later in the pechon because of

#ince August.

and domestic needs for more the lower level of cotton prices unmetal hagymarket trim Altabeydim

Businnan van, done in the 10001 | bri Mheaval than, two years. F

morniturad the following, ratenyim The Ingresso in consumption Use of collon per capita in 1,8@gdolar, (per:31}) is being accounted for by much 1950s cetiampea at about 25.7 Alarin darger exporte. Bales of cotton pounds. The compares wkr 20,0 Supiralishi notas (pusę abroad fore 1956-57 merketing pounds in 1968 and 25,4 pounder, dans un An year are expected to reach Bin 1984-United Press, sipesbora

fling

Area11ba big chain 1a; 1999] Unlvengak

and Mexico Urištock Press.

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