1957-01-21 — Page 9

THE CHINA MAIL, MONDAY, JANUARY 21, 1957.

Pare

TRADE and COMMERCE SECTION

Mixed Reception For Ike's HONGKONG

Record Budget THREAT TO EISENHOWER'S

TREASURY SECRETARY AGAINST INCREASE IN GOVERNMENT EXPENDITURE

By JOHN MORKA

New York, Jan. 20.

Reaction of U.S. businessmen and financial circles to President Eisenhower's record peacetime budget of 71.8 billion for the fiscal year beginn ing July 1 was mixed.

There was, of course, widespread praise for President's assurances that the budget would be balanced. other points, however, there was får less unanimity.

muy

¥10

the

On

DOCTRINE UPSETS

WALL STREET MARKET

By ELMER WALZER

New York, Jan, 20,

STOCK EXCHANGE

(From Our Correspondent)

Business 'done on the. Hơng- kong Stock Exchange this mom inx amounted to approximately $320,000. Non quotations and the morning's transactions:

Buyers Bellera

Share DANKS

... 1020 1020

A Russian-Communist Chinese threat against an the Eisenhower doctrine in the Middle East sent the Stock Market into a tailspin on Friday to INSURANCES round out the widest-weekly decline since May 25.

Lombard

SLAPPING

XD

East came in the last half hour of the Friday

The Soviet-Chinese promise to help the Middle Wheelock session after an orderly, routine decline had carried the market into lower territory.

Selling developed at once on stating that Incoming orders a large scale with steel shares were disappointing from the car the principal targets. It developed and electrical appliance indus such momentum that before ine | trics. 30 minutes were up the indus- Sicels and metals carried the trial average had been driven decline further Tuesday, to a new low since November There, was brief rally on the

on

Dock

371

Bales

Canadian Trade With Asia

Could Be Record

Ottawa, Jan. 20,-*

Canadian trade in 1956 with countries in the Far East and Southeast Asia ""may well set a record for modern times," an Asian trade expert reported today.

Mr Paul S. 'Sykes, Canadian Area Tra Officer for Asia, said in a report to Trade Minister 1630 C. D. Howe that exports to Asia have been increasing rapidly and the trend should continue.

45 or 1828

-0.50

Whart Providen

LAND, ETC.

IK Lati fumptusya

IK Hotel..

-4034

13.30

14.00 011

60

02

13 1400 14.00 19 1000'6 10.80

Realty RUBBER Amala

UTILITIES Tram

103 0 1.00

of

Mr Sykes' report followed the of machinery retum of Health Minister Paul equipment.

and industrial. Recent sales Marty last week froin a 15-Canadian-made aircraft and nation goodwill tour of South parts suggest further and South-east Asia.

develop

of of

ments in this trade as well. With tariff proferences in favour the oventual disappearance US. Imports, market for

Mr Martin's visit was not #imed primarily at increasing trude, but government officials believe some extra trade rela-ma tions may result.

to

the Philippines Canadian Imports may be expected. to improve progressively."

Singapore and Malaya".. (This

ares) makes up the second' Important Source of Canada's imports from the For Bast... as an outlet for Cana- din exponts, the territory is less Important but, despite current Import controls, 1 is still gular consumer of flour, molor. vehicles *nd parts,

paper: asbestos, engines, and a varied range of consumer goods."

Mr Sykes said that Canadian 2007 12011⁄2 13741⁄2 2800 g 135

trode in the Far East varies so 1.475 1.52% 10,000 1.50 greatly in extent and composit

tion that it is inadvisable 700 @ 23-30 consider the areas as a whole, except for the overall values of exparts and imports, in any one period."

1.60

23.10 21.30 141 163 103 100

65 m 103

C. Light 101 23.20 3330 1425 6 21.30 Electric

Tel. (0)

Tel (N)

Cement

Mesa E. INDUSTRIALS

500 68 23.20 31 31% 1000 66 31 9.50

.. 24.30 24.80

2340 23.70

30

Presi-, available on these come from Some economists found the messages to

possibilities. | Eisenhower budget proposals envisioning dent

speelfle But Mr W. W. Riefter, assistant surplus in fiscal

1950 61 1.0 legislative items. Meantime, the io Federal Reserve Board Chair 30, sales for the brief period budget message on Wednesday Fe

market continues under the in-man William C. Martin hinted daily rate of 6,600,000 shares, Treasury Secretary George M.

had run up to 600,000 shares, a but the trend turned when Yatimali... billion altogether too optimistic. Others felt the budget might influence of tight money and un- of possible new oicdit lightening

fallen three Humphrey sald if government effect turn out to be deflationary certainly over accond half busi-moves. He said signs of inflation and tickers had in that expected receipts

ness. While many anticipate a are

spending and taxes aren't cut την 311 "unmistakably minutes late.

Moon, Rails Off

well have a exceed the President's estimates. lack of demand

sufficient to present" that the situation "calls

depression But the strongest criticism carry the market into new high for consideration of the dangers

"that'll curl your hair." the ground, there are few who think involved in such came from Secretary

When the market closedl spiral and

for On Thursday an early de- Treasury George M. Humphrey there will be a major decline. the existing menus of coping the week, industrial' shares were cline was followed by a late Hope

with it,"

off 16.37 points from the pre-rally from the lows. Friday STORES, ETC. vious week at 477.44, which in started -out well for the bulls Dairy

Watson turn was off 22.01 points from but ended with the market COTTONS the 1950 close.

going to the bears.

Textile Notryang As Wall Street

INVESTMENTS HK & FE

intett

spending

of

econore government

11

does not begin to reduce spend- ing and cut taxes belre on be said, "we'll have

depres sion that will curl your hair."

Some Doubts

||

at

had been Selling

saw

Q

of the

who objected vehemently to the

The financial coterle got a bit seven billen

the Increase in

of a shock annual

Last week

as stock от rate

·Steel prices are going up and government

continued to three prices pat

zig-zag | so may the ent of steel Inbour, over the

with pressure The US Steel Corp, sunounced Calling for widespread indecisively, years,

Rails Anished at 161,13, off 0,20

1. the heaviest on economics, he ruled out the

steels and motor it is raising prices 3 per cent points on the week and off only list of unfavourable items pre principle

Issues, although most deficit

of the on steel pipe in sizes over 14 Spending

2.10 points on the year, utilities cluded another early attempt to under any circumstances

other groups also came in for a und

The company also on-

lost 0.40 on the week

and

put the market through the 500 measure of price-paring. upposed tax cuts us

oticed booste in extra charges 69.22 were up 0.58 point com- level in the industriala. The stimulants. If the

amounting to 44 per cent for pared with Dec. 31 close.

adverse Iterns in addition to the This year, so far, some $2,500,- carbon structural shapes and 31⁄2

For the Industriais. It was the steel news and the 000,000

Humphrey have been drained oft, Prices have companies, recently put through sessions of 1957.

in market valuations per cent for carbon plates.

Other

decline in 10th

first 13 statemerit, included the

dip in car output, revelation that 1950 closed lower in seven of the similar

mark-ups.

Meanwhile

housing starts tell 16 per cent sessions so far this year. Autos, Mr David J. Mcdonald, President

Market operators

under 1856, and doubts that the rubber, stecis, electrical equip of the United Steel Workers elated by the market's dullness

oil companies can make their ment, and cements seem to have Union, warned the industry that in the earlier sell-off.

Suez suffered the most. Losses appear a substantial wage demand will started on Monday when steals price rise stick after the

Canal is reopened. to have been concentrated in the be high on the agenda in any broke on a Pittsburgh dispatch

Wider Declines | higher priced issues, giving sup-future contract, negotiations. He port to the theory that investors said the union is not "completely are shifting their focus to the salistled with its prezent three low-priced Issues and away from

steel

"does the higher priced ones which not intend to stand still." Steel guro. it' the stock indices. management spokesmen blaz

blume According to a tabulation by the mounting costs of labour for Hemphill, Noyes & Co., brokers, cutting heavily into the to- prices in the 60-70 group have dustry's profit margins. fallen 2,00

rises are bound to come, per cent this year; price

to trude those from 10 to 20 gained 4.07 according

experts. groupings up to 40. Stocks listed unced an all-time record ex- all the price Meanwhile, steel companies an- the New York Stock Ex-peruditure of 1.7 billion on ex- change In the 1 to 10 bracket pansion for this year.

500 million more than in 1956, but they're finding it increasing- ly harder to finance the expan- ston because of the tight money «ituation.

Although he disclaimed uny ¿ differences

President with Eisenhower, Bnancial circles had According to the some doubts. Wall Street Journal, "the shape of the new budget suggests that..

....Humphrey's indience with the President is on the de- cline."

also There was speculation that the President might be listening more to the so-called "liberal wing" of his party the to the Conservative Humphrey on

the

per cent,

as did

who insists

government should do les for the people, with less emphasis on the wel- gained 8.02 per cent. Inre type of government pro- prammes Eisenhower

has been

recommending.

The budget, the Wall Street Journal pointed out editorially, was "rolld testimony to failure" on Eisenhower's

Steel Letdown

Market experts blame the price slump in recurrent reports that the steel industry is head- The Eisenhower Administration, ing for a bit of a letdown uy

1

port,

year

The

contracts

and

New

NEW YORK

COTTON MARKET

REVIEW

This Is By WILLIAM T. PLUNKETT

New York, Jan. 20. Cotton futures trading this past week plodded along at an extra-slow gait while dealers pondered a number of conflicting in- fluences overhanging the

to

Copper Boost

it commented, is not reducing midyear. Main reason for this will reduce cotton price supports market.

Agriculture Department the burdens of government, but slackening in demand from the for the adding to them by increasing car industry for cold rolled year's support level of 82.5 per market acted a little tired after

1957 crop below lesi

Some expects also thought the expenses

sheets. The car makers general- cent of parity, Officials say sup- previous four-week rise which "Nowhere in it (the budget) ly take more than 20 per cont ply and demand prospects in-carried

there a Gingle

steel phrase of of

output.

nearby months Appliance dicate a 1957 support rate some-seasonal Inths. determination, or even of hope, makers are also sald to be cut-where between 70 and 81 per that the non-military burdens of ting back on their orders.

cent of parity.

At Friday's close the list ruled government can be reduced, In-

of 11 to up two points, or $5 stead the talk is all about the Another disturbing feature 'The increased

bew obligations of the govern last week was the report that tensions and tightness of eup-week

bale higher than the preceding mant to take away the money and spend it for he's inventories of sicel are piling up piles has forced the US gover-

in car factories. Sales of cars ment

centred to order

The limited interest that larger have been lagging,

deliveries but the amounts of

mainly in nearby with are not overly worried and alumine, copper, nickel be set aside at

evening-up in the March so for; they are counting on the mills and foundries during the delivery and trade switching normal spring pick-up to point second quarter for defence users operations making up most of the way for a profitable year. The copper set-aside was boosten the activity prior to first notice

17 per cent quarter. In

ubove the current day-February 21,

New steci, aluminium are two per cent higher United traders studied Washington re-

ports relating to the prospec Press.

tive government loan on farm legislation.

them TO strive without success can be an honourable failure. To makers abandon resolution is to abandon everything

"And that is the true measure of_this_failure.”

Some steel issues have decline Economist

Marcus Nadler, Profcesor

of Banking and as much as eight per cent so far Finance at New York Univer- this year. The lessened optimism ty, foresees a moderate decline in the car, industry, along with

cutbacks in car business

production in nctivity

nhead Europe, as a result of the Suez Accordingly,

he finds that the

to total oil shortage and gasoline railon- margin of surplus revenues as outlined in the bud-ing, have put pressure gét

natural rubber prices "13 little too small for

past few days. Rubber futures In the past seven days of trading lost 10 per cent of the value, sending prices back to their pre- Suez levels. War scares helped

in

comfort."

H.

Bit Weak

over.

production

The wider declines included Bethichem Steet off 8% Youngstown Sheet and Tube off 91⁄4, Gulf Oll off 8, Louisville & Nashville off 7%, Caterpillar Tractor off 7%, Crudble Stoel

7, Inland Steel off 74, Na tional Supply of 10, Chrysler off 3%., and American Ship- building off 0.-United Press.

12.00

14 14.20 1500 24

•

Importance Of Japan

of Japan,

"The importance for example," he added, "tends to overshadow the Importance 16.20 13.40 1000 13.30 of the Philippines as a market for staple Canadian exports and the vital importance of Malaya 1000 is 7.30 as a source of raw materials,""

Sectional reports to Mr Howe

4.30

4.30

7.30

0.70

1000 9.70 included:

Borneo

Colonies--

British Borneo Chad has to date carried only a limited trade with these territorien directly

the development of latest resources in the form of oll Japan-"Exports of

timber wheat

bauxite, power and agricultural are being gradually sup-ards promises Increased con- plemented by sales of an in-sumption of imported goods and

of foodstuffa, creasing range

despite the comparatively low- this raw materials for industry, and figure of current trade, it is safe

some manufactured goody,

to predjet interesting develop- 3.10 the trade is acquiring a diver- 16,01

menta in the reasonably future.”—United Press.

Exchange Rates

udicial

Businem was done in the local

exchange market mening, at the following rates:- US. dollar (per #1) ...) Sterling notes (per £1) Australian nolos (per 21) Indonesian rupiah (per 100) Blur tical (per 100) Singapore (Straits)

NAMESAKES

prad

17.50 Imports of Japanese goods have 12.01 sty which was lacking earlier 21.80 been increasing rapidly to a

1.80

point where the gutio between

and охрать import values...... (is) two to one?

8

South Korcz--"The market continues to show the after- effects of the war. Demand is

small generally

with wide (uctuations, and the export

near

BRITISH AUSTERITY APPEAL

Answers-1 Quest, 2. Acrcunt, Table, 4 Camelot, 5 Adven- tures, Knights, 7 Court, History, 9 Merlin, 10 Legend. 11 trade has little relationship to

12 Chivalry,

Lancelot, 13 Caradin maricot capacities." Arthur. 14 Castle.

Taiwan (Natiormist Chino)-

London, Jan. 20, Guinevere Queen

in its current Auscelated

Britain's new Chancellor foreign trade mainly with the of the Exchequer, Mr Peter Arthur's Queen).

United States and Japan."

(King)".

London Operators

Visualise

Cheaper Money

By C. T. HALLINAN

London, Jan. 20. Stock markets liave been exhilarated

Communist Chine The trade Thorneycroft last Saturday has fluctuated violently over issued three-point recent year but now seeme to be austerity" appeal to the taking form. Imports from

Mainland China have been in-nation to overcome the creusing. The goods involved are economic trisis. wanted In Canada and can be Intervieved by an Exchange. obtained in better quality and

he

at better prices than from other Telegraph correspondent,

called on the nation, to: sources. Exports of fertilisers and other non-strategie, goods 1. "Make 1957 an even better are increasing at the same time year for savings than the record and a sound development in the year of 1950. trado wwould seem to offer mutual beneflis"

More Related

2. "Do not criticise, when the Government secios to cut ex-. penditure as it certainly must

do."

"Do not press the Govern ment to spend more, even if it

Hongkong "Canadian is an object which you specially

Internationai cents a bale lower to 10 cents a all week by the rising conviction that Hongkong trade

money is going to be cheaper. Not "cheap money" as in the good old days, but cheaper, with the bank rate destined in the near future to be lowered to 5 per cent or possibly 41⁄2 per cent; this frees monies for investment in industry.

стор

months

werd

and nicked alloy, the set-asides relatively neglected while

The Bank Of England

that

while

becoming more and more related to the favour." industrial development of this "The health of the nation do- colony long-standing rela-pends on its production per head tions with Hongkong trade in of population, and not on what terosta, combined with excellent we may try to swatch from one transport fclillies, another, Mr Thorneycroft added. air and sea offer a sourd assurance that In other words, what wo`must'

with this vital and all try to

to do is to put o lifte the trade growing consuming and transit more in and take Hille less out?

rea will

progress

Mr

out Thorneycroft pointed Indochina With no present that Britain's exports were indiendon shipping facilities £300,000,000 last year will improve quickly,

the out- ponts to tho United States had If defence expenditures can November be lowered, at least in the new wrongly,

look don 7. Rightly OT

i important developments increased by 25 per cent,

ping." the City of London is not very

New markets were also open- budget, this will also relcaso decided that the prolonged bear

The Philippines

(this) ing In Australia, which had just thore money for the defence of market had definitely closed on

is Canada's second largest export cased import restrictions, and in the harassed

In the Far East ... economy, but it November 20 and that a new toorkoel

Europe. stems that Mr Macmillan

can bull market had started.

the Philippines: continues to be "It will be the task of In- make only a modest

cut even

a valuable market for Canadian dustry to seize these opportund- Reynolde, the nuclear power flour, newsprint North for the year 1057-68,

How-

and other ties to the full," he declared— Associated Electric ever, the Hawker-Siddeley both

share, and

more felt two shillings this

shillings while an past week from the conviction other congressional fight against that their earnings would cor-

British American Tobacco and Marics the administration's flexible tainly suffer eventually, if not.

and

Spencer-commanding the

of support system.

attention Sterling Meanwhile, other Washington

more than four shillings (and 1,699,704,653

Unilever gained three, shillings 13.000,001 reports said cotton price sup- neelasični, ports for the 1857 crop will be

and six penICE. 200-321,620 reduced by the Agriculture De

The long list was up a shilling 3700910 Partment below this season's

lovel of 824 per cent of parity obviously taken aback by the Dutch lost nearly 16 shillings.

Olls were eccentric, Royal United. Prem. Oficials Entd supply-and- demand prospects indicato a

emergencies of Mr Macmillan, support rate somewhere be consoled itself by the verdlet tween 70 and 81 per cent hat the new Prime Minister

Statement

London, Jan. 20. Much the same was voiced by boost the price of rubber from The Bank of England into

H. Helmaru, Executive 32 cents a pound to 39 cents, last mont Lon the week ended Vice-President of the Americansutumn. The cutbacks-in Euro-Jonuary 10, reads as follows: Business Association. He cald, pean and US car

led to reduced tyre con Notes in circulation... "The budget is a bit weak be- cause the whole thing is pro- stumption. This factor, along Publia, deposits jected on increased tax receipts with the heavy build-up of Private depozits

Government recurfiles. anut a good business year, while stocks on the war scare, were other securities we may be in for a breathing | the-major depressants,

Receipta speti,"

Mr Emest G. Swigert, Pre-

sident of National Association, of

: MjerŢisfacturers: ·

"I is dls-

Elsewhere

Ratio

The The

Statement

for

7,300,473

כנן,

SUPPORT SYSTEM Senate proposals to restore rigit 90 per cent of parity sup- porta, introduced by Dakotas Republican Senators Young and Langer, suggested shares the move might touch off

of

now.

Taken Aback ·

TOGO

But the market, which was or more. Butlerite to a man

and was

British governments, dominat

than five Papers, fertiilsers and a variety 'United Press..

consumers-TOSE

but Shell gaineti nine pence and stvéral of the smallest oils were strong.

Sucz Canal lost 14 sterling to:52 sterling.

Foreigners Idle.

couraging to see the government Elsewhere, In belet

Bank Of France purity. Some quarters felt the a "safe" man and has plenty of sporting more and more on its Federal Rasctve Board will

loon rato may be no more than conservative initiative. Hence domestic programme, where stick to restrictive credit policies

the legal minimum of 78 per a work of bullishness. economy should be achieved.” for the time being, 'according to

cent, which would be well An Interpretation by Senato

below the level at which now the entire week with the In Woll Street it also was a Baking, Chainman

crop futures, have been selling. Government stockbroker selling caso of touch-and-go,

Fulbright after

closed-door

Paris, Jan. 20.

The Consus Bureau report Gits owned by the various Foreigners vero, idle, Geru briefing, Mr Fulbright sald he

The Bank of France state on damerile consumption for government. departaments and man lanies were · virtually First roaction of the financial got the.

mont Bourd impression

the wook ended February proved disappointing dog! at steadily rising community was that the budget officinis "see no reason

ang unchanged all week, In

the under January 10,' reads sa follows:

The Bureau indiested the due price... was inflationary and therefore present condition to

Japanceo list. the Tokyo $ change

month

War appearance

led, with a rise of por con non-issented, lost £1 not unfavourable for the market. their methods-p primarily the round old holding Traders on the Stock Exchange discount rate of trying to con- Total other cur

1901,304,302,130 031,007 balce against 880,549 32 shillings

but the assenteda // worn, un- soon turned bearish however, trol inflation." There was new sight balance abroad

bales in November arks 652,135 Consols: 4 per cent. Consols and changed whiid. In the 1924s the 13,426,068,773 bales iised In December last the, Rallway Nallottalisation non-asentert mined and the and demand fall off, and selling speculation that the government it: XPU

49,100,100,000 YEAR. ANTbishment”: dt” enib,,|,, Bit. Industrialk | carried

Stocks field in consum stock gained 20/5 more Dollar stocks were marked sob in with the market yesterday, might be considering new credit Advanen to Bisbuira irregular at the close, curts me theme thought to Find

$7,900.000.000 Decembery totalled 1,667,190 Total will discounted, Considerable weight was given was being given too hike Banknotes in circus GG000107,778 month previoul hd 1:898,789 on Friday bt 188.3, noin 0513 premium which they com

|balts against 11,483,614", "bálos - Pantseaned, ensinayahanelali down almost dưpry day, losing

Timer

industrial avonde. Elewod | a good miany pouts. the words of Secretary Hum- the rediscount rate as an anti- Unroy, Now all the Stroot, Is | inflatiopney mooiuró. However,

Current acerunt and shd deposita

140,880,796.000 bules on hard a year ago, per cent. In seven, wouks froth fell from 03⁄41⁄2. to 714 por con lawalling for the many other | Listen:

Unitoka Prema.

the low of 101.5 reached on United Press

rencies

Firana

1,700,403,340,450 |

at

Be pericing.. Old

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•