1957-01-07 — Page 9

NEW YORK COTTON

MARKET

REVIEW

By WILLIAM T. PLUNKETT

New York, Jan. 0. Cotton futures this past week celebrated the com-i mencement of 1957 truding by rising to the highest level in three months on an expanding volume of trade.

After 31⁄2 sessions,

prices at Friday's close ruled 20 to 53 points higher than the preceding week.

Independent

strength

nearby March contracts became the dominating market influence while traders awalled congress- Jonat developments on farm legislation, or other Eresh centives

months.

for the new

Broadscale spot house

crop

in March, supposedly liquidation against spot cotton purchases, was absorbed by an equally large demand from domestic mill mleposts, shippers and cartside commission houses.

MARCH CONTRACT

March contract rose to 34.45 cents a pound, getting within a single point of the season's high level established last Oct. 3. and showed cumulative rise of $2.59 a balo,

THE CHINA MAIL, MONDAY, JANUARY 7, 1957.

TRADE and

COMMERCE

SECTION

Profits Squeeze Fears In HONGKONG

United States

BUT GOOD PROSPECTS

OF NEW

12.

ECONOMIC PEAKS IN 1957

By JOHN MORKA

New York, Jan. 6.

US industry faced 1957 generally confident but beset with fears of a possible profits squeeze despite prospects of new peaks in economic activity.

offset

over

by

in

כאל

World Rubber Production

STOCK EXCHANGE

(From Our Correspondent)

to

ap.

Washington, Jan. 6. Business done on the Hong- The Natural Rubber kong Stock Exchange Bureau

This amounted of Washington morning estimated last week • 1987 quotations and the morning's proximately.. $300,000. Noon world rubber production transactions of 3,160,000 tona and A world

consumption of 3,100,000,

Buyers Seller Sales

་་

Bhares

DANKA

HK Bank INSURANCES Union

- 1000

940

The figures included both natural and synthetic rubber.

The Bureau broke down Lim figures by principal production | BUPPING

Wheelock consumption arcas AS (0) ..... 7.10 7.16

and

follows:

Production:

1,120,000 tons

LAND, ETC. HK Hote.. HOK Land Healty

Page

US Investments In Latin America Rise

By HARRY W. FRANTZ

Washington, Jan, 6, US direct investments in 20 Latin American republics increased about 550 dollars total mark, and prospects were million dollars in 1956 passing the 7 billion bright for an accelerating capital flow during 1957.

This does not include govern | tialities mounted rapidly, with mental credits for Latin Ameri- extensive exploration in Guate- can enterprises which now total mala, and report of an im- more than one Lillion dollars. 1000

porlant all discovery in Costa The Middle Eastern 2000

crisis len turned attention American

Recovery

7.20

7.18

of

North

DOCKS, ETC.. K. Whart Dock..... 47% 4014. Provident

ΤΟΥ

02

desirability

Investors

of

to the

expanding There

..... 13.60 13.80

500 13.70 hom

DRAFTERS of

petrolcuni minerals within the Western businessmen Hemisphere because of relative

and

15 102 1000 & 15.10

States, 670,000 tons

tons

Amely RUBBER Trust

... 1.0214

J11 024

1.40 5000 mp 13%

1.3650210 18245

1.80

Tam UTILITIES

Blar FRITY.. Yaumati

United States, synthetic: Malaya, 630,000 tons natural; Indonesia, 720,000 tons natural; rest of world, 540,000 tons natural and 145,000 tons synthetle for total of 085,000 tons.

Consumption: United natural and 030,000 synthetic for total of 1,600,000 tona; United Kingdom, 175,000 tons natura) and 45,000 synthetic for total of 220,000 tons; rest of world, 1,130,000. tong natural for and 250,000 fons synthetic total of 1,380,000 tons. ESTIMATES

The Bureau also released estimates for 1050 and consumption as follows:

production

Production: (world) total 3,105,000 tons:

Electric

likely

་ ་ was extraordinary re- covery in governmental and confidence in security and geographical pro- of the Peron dictatorship, which Argentino, following the Duster ximity, experts told the U.P.

to encourage more today.

The active interest of Ger- enterprises in future years.

co-operating In manufacturing man, British, Italian, French,

Brazil's Eelgian and Japanese companies Industrial expansion

steady internal 23.20 £3.50 300 23.00 in Latin American Investment mented in all economic circles. and Industrial potentials was The world politiept situation another Incentive to an intensi- and particuarly the abnormal 3.0 fication of the North American evoluilon of Eastern Hemisphere

140 143 102 103 100 103

economic

Is com.

C. Light (0) 231 23.70 1000

100 21.79 311 312 163 31% desire to co-operate in Latin petroleum trade

284 M 3116

will tent to Amorican 24.00 24.30 1900 24.70 T: (N)! 22.70 23.00

develop-keep United States Investors Interest alreeted predominantly loward the development of Industrial

materials in Lalin America.-United Press.

Upward Trend Oncial statistics for 1950 o the US private investments will 13.50 13.90 1300 13. not be compiled before March,

10.40 15.00-3500

ment.

ita

INDUSTRUALS Coment

Nope

381 38.75

150 + 30.76

13

STONES, ETC.

Dairy

Textile

Watson

COTTONS

Corp.....

4.35

5.90

4.70

Although the United States moved unto new high ground in production, consumption and spending last year, corporate selling profits lagged behind this increasing tempo of prosperity. This was about the only segment of the economy which failed to reflect America's rising levels of activity. Indications are that America's for an improvement of at least cent corporation tax which is industri plants will be under fouir er Ave vents over

the supposed to

reduced ncreasing pressure

cents automatically the "flour" level of it and U

carly lo 1957. nex twelve months to mat-under the deterred wage packs. It is now believed that the US Jain healthy profit margins in

facing now demands

for the face of stronger competition,

Thats the 1957 wage settle-

economic pid.

uncertain In- rising labour and operating meng might be in line with 1950 ternational conditions along with costs-some of which cannot levels, which showed wage in the prospect of a sharp rise in be exisily

manufacturing to military spending, might as the price creaKES advances,

about 12 cents an hour,

Congress hopes, extend the rate. Although Twi tabulations What worries some experts is Of course the Traders attributed the under-

current profit

of for

1950 aro

yet not the lure of lying

factory demand for the

pro- squeeze does not herald the end spot compiled estimates indicule ductivity to keep pace with the of profits and dividends.

United States, 1,080,000 tons month to the relatively small that American certificated stock, along

corporations inflationary price trend. Factory simply

means,

to synthalle: Malaya, 030,000 tone according with carned less than they did in productivity advanced little experts, shipper covering against export 1855. Profits after

that some companies natural; Indoncala, 780,000 tons Menyang taxes were last year while wages have one will

rest of world, 550,000 | INVESTMENTS commitmenta

show beiter and investment said to

going in natural

Yangtze 125,000 tons be slightly under the up and price rises have failed, others and that some Industry tons natural and total amount of the previous 16 keep pace with costs,

Toupe wift show wide synthetic for total of 675,000 On the assumption that Morch | year. (1

divergencies among its members.

Consumption: (world) total of There are contracts may

some hopes that move higher,

Standard and 2,890,000 Rons: According to the outpul per man hour will

Poors analysis, 1857 will stress continer to rise at about 2 per selectivity,

560,000 conflicting featuring

675,000 annually, cer:

although a

tons foresces the recent

the synthetic for total of 1,435,000; government report in-dividend increases this year as dieated some slowing down in outpacing the rate of rise in natural and 40.000 tons synthetic

United

Kingdom, 100,000 tons It finds that prospects for total of 230,000 tone, rest of profits.

particularly favourable for world. 1,120,000 tons natural and the stoel

and makers 195,000 tons synthetic for total bagte equipment; of 1,318,000-United Press. aircraft companies; oil producer) *** makers of autos and nuto parts, which are expected to enjoy aj comeback.

buying.

some technicians commenced to watch the certificated stock for

а

clue to possible tenders. First March notice day will be Feb. 31. The certificated stock cur- rently totals

Rising Sales

This phenomenon of

rising sales accompanied by a drop in

net profit has worried many this rate.

A recent National tabulation of quarter carnings reports showed

only 2,980 bales observers. while the open interest in March at the week-end was estimated Cy Bank around 300,000 bales.

from the

Labour Peace,

Industries

that 57 per cent of 094 COD- New crop months borrowed panies canvassed ayjoyed higher

While America's buoyancy

March sales compared to the previous generally anticipate a year action, although buyerS cau- year. 37 per cent of these relative

labour peace, their tiously followed the advances. showed sales up and net down. efforts over

the next

twelve Healtancy reflected continuing

months, are expected, to be uncertainty concerning the gov

The pressure on costs-mainly chacheilod In

following the emment support rate for

thenbour costs will become in-directions: new crop, plus extent of soil creasingly severe, according to bank compliance and congress-

i. Greater experts. ional action on turm legislation.

emphasis on in- Auto industry will have to tegration of operations with a United Pres

shell out some old models acabour costs..

offsetting mounting year under the terms of Jong-.. ringe wage contraels rovering

2. Greater 550 agreements

automation 5,000,000 workers,

NAMESAKES

some

viaw to

and

ara

of

with It

1957 Dividends

It

Fortune Magazine sees dividends

United States, natural and

Allied

.

But the upward trend was in- dicated by government experts os private capital

ما

mw

London Stock

Market Review

London, Jan. 0.

5000 or 7.03 follows: New

for Latin American republics in the first half of 1950 amounted 130 million dollars and Jumped in the 3rd quarter alone to 137 million dollars Stock markets opened the with the probability or a 4th week with a remarkable display Turnover had a dollars.

daily average of 0,253 bargains United Additionally,

States recorded, highest in a good companies already operating in many weeks, and demand for Latin America are estimated to British government stocks

reinvested about

200 for selected

industrials wavered at any dime between

tons The Bank Of England quarter total above 100 million of buoyancy.

Statement

London, Jan. 6.

and

never.

The Bank of England state-on dollars from their earn Monday's opening and Friday's

ment for the week ended Jan. 2, reads as follows:

Notes in circulation Public deponita....

The Bank Of France Private deposits ...

Statement

The Bank

Paris, Jan. 6.

of France slate-

Pranes

in 1957 topping those of 1956ment for the week ended Dec.

27, reads as follows: and holds out the prospect of at least a one billion dollar in- Total gold holdings 3012204,302,426 crease in net profits over 1958. Total other currencies This would amount

to a five Sheht balance abroad

in EPU per cent boost. Business will be 'Advance to the eure up next year, it finds. That

stabillation should mean higher profits and at bills discoured 1,784,605,102,102 morging.

emphasis on technological improvements in order to effect The overall average increase of savings In production costs. Answers-1 Reveal, 2 Pain-living was up about 2.6 per cent

3. Increased diversification ter-3-Gallery, 4-Portraits, an hour. With the cost of living.

----#But,”-——It—-cautions,-"the Spain, & Qually. 7 Pictures, B

leading to. about 2.5 per cent over o

consolidation and interplay among

costs, Features, Mezzotints.

year awo, Many unions are mergers to further strengthen ductivity, and prices in 1957 expected

Lo press for even competitive positions,

will be complex, and the ups (The Spanish better adjustmetus. Experts

among them may and downs feel labour might move in 1957

simply be offsetting."

Velasquez painter).

up

COTTON GOODS

MARKET

MARKS TIME

New York, Jan. 6.

The cotton goods markets, both grey and finished started 1957 with business-slow as buyers and sellers continued to mark time. waiting "to see what develops."

Expressions of hope for an early pick-up in buying, after three months of extremely slow business, conflicted with reports of increasing mill curtailment in the wake of accumulating cloth inventories.

An Important New England into carly 1957, will be coming organisation, operating 13 mills into the market before long for weaving fine cotton cloth, on at least "mederate purchase." nounced it will adjust production schedules hereafter"lo

con- form with salca,"

For the next three weeks, the plants will run of about 70 per cent of capacity as against

00

Mill executives, keeping kopes on a high level, were encouraged

by the fairly good business

in

Industry hus been spending huge sums of money to effect new economies in operation, but in some cases those expenditures haven't resulted in offsetting labour costs,

pro-

"The recent level of pre-tax margins at 18.8 per cent cur- porate sales stands just midway between the peak

rate of 20 American railroad Industry:- per cent reached in carly 1953 Tspite expenditures running and late 1956 are the low of Ile the billions over the past Just under 17 per cent during few years, most of the nation's the recession of 1954. It that rallroads have been best margin turns out to be

at spending huge sums merely to average for 1957. then 1057

will top keep from losing ground, and net profits

those of Lesund themselves spending 1956 by over 1.93 per cent.. these huge

of money "The problem of maintaining merely to keep ahead inflationary

full employment, price stability

sums

spiral,

the of

the

economie

rency

13.810,800,740

49.160,100,000

71,000,000,000

Government securities. Other securities Receipts Ratio

ings during 1950.

At the end of 1955 US direct close. 1,011,453 private investments in Latin

Sterling

17,007,173 America

were

203 221.120

223,988 principally the 66,302,318

The foreign exchange market 6,550,000,000 kept step with the stock market; 207,70435 dollars and government credits, against the dollar, sterling im- half-penny Export-Import proved nearly a applicable to the same during

the week, the Brst time 19.0 area were 1,013,000,000 dollars.

it hos shown such a burst of strength since last July. Including portifolio invest- ment such as government bonds

And yet and long term bank loans, the lolal US private

United Press,

Exchange Rates

focal

Business was done in the unofficial exchange market morning at the following rates:- US dollar per $11 Bank notes in cir

Sterling note (per 41) culation ***** 3,040,003,247,160 | Australian notes (per £1) Current accounts and

Indonesian rupiah (per 100)

· deposßáí -- av 173,728.351.402- Siam-tical (per 100)

-United Pres Singapore (Straits)

Latin American bin

at the at the

either long or short view--seem- the news-taking ed pretty grim.

OIL SHORTAGE end of 1955 was estimated at The shortage of fuel oli, fore- 9,244,000,000 dollars, In recent casting severe setbacks is years there also have been largo country's production and in its in the United Stated investments in the vital transport, was alone enough 6.17 Carribbean dependencies 15 Great Britain and the Nother-in ordinary time; another factor to cause a stock market slump

12.73

-27.75 1.30

WALL STREET

REGISTERS

SMALL GAINS

By ELMER WALZER

dt

Consequently the grand total of United States Investments in Latin America probably already in the neighbourhood of U.S.$10,000,000,000.

17.60 lands particularly in off and was the continued drain on the

bourite.

sterling crea's reserves of gold and dollars which would have brought the total well below 2 billion dollars from

the Inter- national Monetary Fund; modest and rather humanitarian In 1960 major United States interest has to be paid on this investments were in Venezuelan and eventually it has to be paid oilnolds

and new concealous; back. and

Peruvian copper;

New York, Jan. 6. Stocks managed to register a small gain despite several opposition in the first week of 1957.

Railroad shares, long behind the market, and

utilities, strong for their investment qualities, featured.

According and rising wages was viewed for dy by Forber Magazine; by some observers as in effect

most railroads, expenditures no sting gains."

Vast contradictions in the "have

produced objectives of the US, govern Using as ment. yardstick the operating ratio in order to evaluate the effective- The Guaranly Trust Company ness of capital expenditures in of New York, for example, Onde boosting

operating efficiency, that "where govemment is many railroads found them- asked to be all things to all selves on a virtual treadmill.

men,"

monetary

authorities

With industriels it was an The Pennsylvania Railroad, sometimes

The zig-zag movements of one of

face

"painful in-again-again market. They prices reflected uncertainties of America's gaints, spent choice."

rose in the Monday session, traders In the immediate future some US$4,053,955,133 in 1961-

last of 1986, fell on Wednesday of the market. The 65 and was able to decrease its "If they make enough money after the holiday, scored a rally had been

experts operating ratio

predicting there first avaliable to accomodate business on Thursday, and pod on would be over the nine

of 1950 to 82.10 at the higher price levels, they Friday after grossing the 500-

long period of high per cent from 68.0 per cent in are acquiescing in inflation,

selectivity in the list-even 1951.

I lovel

more so than in 1956. they do not, they are acquiesc- Ing in unemployment,

months

The

of

objectives stable money and full employment are irreconcilable unless wage in creases are limited to gains in

moderate resumption of buying Beyond

cases the ratio advanced. productivity."

for inventory replenishment will found capital outlays appear bring a swift increase in prices.

cn

to

the

countering in- and

Money Supply

by

ឥ

That 600-level has proved too much for the industrials for long time now. Each time the average is into that territory. it moois resistance. And this past week was no exception even though it appeared for a time as if the obstacle 'would be hurdled.

of

These experts looked for n poor showing for the 1st in the Arst half of 1957 when they and tests would be made the 1956 lows around the 400 level in the industrials.

Meantime

Not So Fortunate

apparel and piece goods at re- however, Forbes found, in some Others were not so fortunale, tall. They believed that even a per cent before the plants closed

Д certain point, it for the year-end holidays.

business entered Industriais, however, notted p the New Year on have produced diminish-

a spurt of Duration

small gain for the week. They activity destined, according to of the curtailment Gray good producers, airtady returns,

although in programme, officials sald, will operating

It cautions that adopt for a week before: rails 156.42 time record in gross national

or closed at 498.22 up 1.81 points slender

initial stages of dieselisation, creeping inflation'

the experts to set a new all- profit profits improved. The industry money, depend on market conditions and margins, have been forced Japanese Imports. Officials said absorts the higher labour ecsis therefore, as one solution to is "specially dangerous at this and 05 stocks 174.00 up 1.45.

managery their mills have felt Japanese incurred by the wage increation, is looking more

would be up 2.86; ulice 69.07 up 0.04 product for the year. However, difficulties In

there was On Monday, the last cession pinched in profit-margins, dim the prospect of Important competition most granted mill, workers last fall.

time, whan more thrift, and keenly."

Producers operating on scanty more to mergers, America's 151 savings are needed to supple of 1950, industrials cloud at prospects for tax cuts, and profil-margins

ins strongly in railroads will have

been ment government effects to pre- 499.47 up 3.06 polots on the day some fears of legislation de

the signed to curb Instalment buy- cated a determination to curtail whittled down to some 24 huge arve monetary stability, and to and up 11.07 points from

offact Inflation.

close of rather than cat prices any more, combines In order to do away

closed that ing. day, at 109ERETA and off Observers

or "nake goods just to store will inefcient operations

bo 10.00vely, "Unleas ond

saving can

UIENES Steels, Looking at the them away In the stock 100m." chiplication of facilities, brighter sido of the "picture"

| stimulatech, inflationary press clowed t up 0.21 and up issues and special made the

tres may over maintained the market looks lo

'period of 4,38. The 65 mocks in the best showing. Gains of 5 points Sales yarn spinners reported a The current cost-price squeezo years, becomin even stronger three averages Balticed the day or more appeared In American be on the average” of a new slow situation as the maket still on U. 9. Industry had now than it le now, A buying movement, with possi- operating

systematic under holiday in-demanis for

Amerado, Inter blow that it will take shape in

reforms, swelling of the money apply in of 174.08.158 0.95 from fie pre Telephone,

national - Silver, and Now York about two weeks. They nendoned movad et a alightly boiler pace, i per cent upper limit is too high) readjuntemente

from the 1955 clos that quite a dous proy

only Troll on Monding swelled to 1 to 3., Motors google but combod and carded - yors and unrealistic. They have sito intensity macka pressure-ffold 3,080,000 shares, largent for any steels closed the week lower on ensed, Bomo buyers, only partially covered were slow-United Prom. toon sooking à out in the 83 par } Promo..

Friday realiaing United Pread..

On Average....

tax

1954.

is

Five weeks

Iron ore, manganese was selling their

everybody British Gov- in Amapa, Brazil (soon erament stocks and the Index to reach production and market- closed November 30 at 82.38, the ing stage) and the Trinidad oll lowest it has ever been since it Industry

was first constructed in 1826; it Interest in central American closed this past week at 85,51- petroleum and mineral poten Unlied Press.

As approved by the

Postmaster General. Hong Kong AIR MAIL ENVELOPES

Brain Mall

on sale at

20

ulis, hipbuilding South China Morning Post Ltd.

fluences, Some marcerised yarns | Businessmen. Insist that: thic· D1 } un éffort to peøyent. temporary Vous close and up: 1.86 Deine Farbbüliding. Muny others rose

would

Job Printing Department

Telephone: 20002