1957-02-11 — Page 9

THE CHINA MAIL, MONDAY, FEBRUARY 11, -- 1957.

Page

TRADE and COMMERCE SECTION

US Business Circles Jolted NEW YORK

THREE BILLION SLASHED

OFF STOCK PRICES

By JOHN MORKA

New York, Feb. 10. The business mood in the United States was definitely bearish last week.

Business confidence got its biggest jolt in weeks on new fears that the country might be heading for a depression unless something is done to check the inflationary spiral which has been running at a 4 per cent annual rate over the past eight months.

wwww

Slock prices turned jittery was the third time this your he and some 3 billion in market has spoken sharply on the sub- valuations were shoved off on Ject, but never in such strong Tuesday with

He reiterated previous market averages terms. at their lowest in months on the pleas 121 management

and day, The Dow-Jones industrial

labour should exorciac restraint average closed the session off to keep the price-wage spiral :༡༢ 7.23 polnis, for the biggest one-

from unsetting the economy. day loss

November since

30. Recent strong

Issues as steels, metals and nircrafts brunt of the price puring. The market however, showed strength on Wednesdry and re- covered lightly.

note

bore the

Background

economies

COST OF HONGKONG

LIVING

RISES

By MAUREEN GOTHLIN

Washington, Feb. 10. President Elsenhower's warning this past week that inflationary pressures are getting out of hand while wages and prices are at an all-time high,

came

The Bureau of Labour Statis- tics, which keeps close tabs on made. were

And

both, sald today the cost Willlar Mc. Martin Jr., Chair-living has increased 18 per cent net of the Federal Reserve since the 1947-49 era, In the Board-the nation's money con-

same period wages of 13 million the credit troller-emphasised

have inereured factory workers curbs are too easy and insisted

30.6 percent. Their averga | that

pay on Dec. 31, 1996, was 84.05.

a bigger budget ces/weekly

would check advances in

...

STOCK EXCHANGE

(From Our Correspondent)

Business clone on the Hong- kong Slock Exchange this morning anounted to apprexi- mately $1,170,000. Noon quota-

tions and the morning's trans- Detions:

Sharpe

BANKS

Buyers Sellers Sales

1010

10 1500

uf

I ask East Asin

INSURANCES Union

SHIPPING Wheclock

9824

630

0.80 BITA M7 0.00

3000

B.BO

DOCHS, ETC. K. Whart Duck XX 4514

1

97

Providen

101

LAND, ETC' HK Hotel HK Land

62

.

Meantime, what has happened | flumphreys In the cost of living?

The B. L. S. sald incresses

Senator Margaret Chak Smith, in a major address, All wages rose 15 billion lost echoed sundry other warnings your, a seven percent jump over Backgrounding these develop by legislators and economists 1955, and personal income in- that the budget contains forces cluding wages and lures, is ments were the following:

1. Former President Harbert "which if not controlled could

now at a rate of 333.5 billion st Hoover, who served during the

get a torch to inflation

year 1020 depression,

reminded the And so it went

all week- Backgrounding fois pessimistic nation that the US, was in the depression warnings,

were a busi of warning.midst of a new **Inflationary Washington legislators, about the whopping govern movement. Unless government ring to reports, lilicate some ment budget of 71.8 bilion, spending is curtailed, a serious support is growing for "erceping" Inflation,

the wage depression could ensue And excuciny drivi-aim President price spiral.

Elsen-Secretary of the Treasury the President's budget-highest hower, however, best synthesised | George Humphrey recently meacetime budget in History the bearish

mood of the week erillelsed the proposed

Republican congressmen with 1 blunt warning that the billion budget, warned of toosist the budget is too big and U.S. Government might have high taxes.

ought to be slashed. There was to impose wage and price con- Only decreased

talk that efforts might be made guvernnoni trols unless business and labour

spending, not increased receipt,

to cut the budget by about 10 combined to bolster govern- could make

a general tax cut

jr cent, ment efforts dirveled at curtati- possible. He spoke of a "hau- ing a runaway Inflation. This curling"

unless depression

MORE OIL NEEDED OUT OF TEXAS

now

New York, Feb. 10.

of

71.

for the blame

the

*

hvo at paring!

Almost at the same time that President Eisenhower directed busines-mers and labour blamed each other for the price spirals. Brief Filed

in nearly all goods and services contributed to the price ዞሮ Leading the Jump are housing, Including household uperations, and hensportation, medical end personal Care. Food, clothing and recreation have risen less.

RUBBER Antolat

Trust UTILITIES Train

46 1000 451

1000 45

13.40 13 1000 A 13.40 300 13.36

COTTON MARKET REVIEW

BANK RATE CAUSED

A

RIPPLE

By C. T. HALLINAN,

London, Feb. 10.

New York, Feb. 10. Cotton Futures trading last week became more active and more two-sided, with the dividing line The lowering of the bank rate one-half widening between old and

percent to five percent caused a ripple new crop deliveries.

last week on the London Stock Exchange. At Friday's' cluse, une list ruled 42 points higher to Some people said peevishly that it could points lower, or down 20 cents a bale compare up $2.10 10

have been done just as well several weeks with the preceding week. or months earlier and saved the govern- ment several million sterling in the high interest rate it pays for its borrowings on Treasury bills. The word "anti-climax" was pinned upon it.

All old crop deliveries soared March reaching 35.38 cents a pfice on the Board since mid- deliveries tagged

to reasonal highs, with nearby

pound, establishing the highest

Moy Inst year,

New crop on the

the

upswing. Buying Interest the wis blanketed, Boiled down,

questions traders said, K nervousness causing hesitation are these: mcreased while tradera moment-

When will they take another where it was almost

Gelly s

п expectext

government

arnouncement on the minimum and lower the rate to 4% Interim Jonn rnto for next porcent,

exactly a year ago? is this so- called "monetary weapon" really successful or is it just a bit of What

SCHGON,

Guessen on the percentage of partly to be used in calculation alpined make-believe? of the loan rate showed a wide will happen to us in the budget variation, ranging from 75 10 that comes in April? Will taxes BI percent of parily, Concensus

be raised or be lowered or be 16.30 15.40 500 10.39 erystalized around

a figure of

of left unchanged? 500 1 18.40 78 percent,

which

would 111- 1300 10.50licate a guaranteed minimum

Rather staggered by the dim-

1.82 1.071 3000 m 1.525 50,000 100 ..1.021

23.20 2314

100 23.00 23.10

Star Ferry. 143 144 100 ** 144 Yaumati

103

100

| C, Light (0) 23.10 23.20

312 31

Renta and services alsɔ huve | Electric gone up more than the cost of goods, in some instances the Tel (0) coat of soine foods, household furnishings and some clothing were lower in tour

years ago,

Bureau's wage-price berometer G based

the

The

20.10 23,30 250

1600

1000 kk 15.20

п

Formosa Surged Ahead In Sugar Market

Manila, Feb. 19. Formosa has surged ahead of the Philippines in the sale of sugar on the Aslan market, the Department of Commerce and

reported today.

rate for middling one-inch of milty and the imminence of all accorts from the Philippine

approximately 31.87 cents these conundrums, the tendency

of 80 percent was to clear out for the time-Embassy in Taipeh emphasled

pound

A rate

would suggest a loan of 33.00 cents, The comparable Town rate under the gramme is 32.74 cents a pound,

being.

taking

British governments, present pro-

FACTORS

Strength in old crop inonths reflected CL combination of Juctors:

December than

Tel. (N)

21.20 24.40

Cesirable "free" cott & 3456 | poundings

on

PRICE RANGES

2014 38.75 12.00

STORES, ETC, Dairy

13.00

14

500 in 15

400418

700 0 10

480 6 15,00

Loan

the week as a whole, lost rather heavily.

Long-Dates Fell

War Loan and Old Consols.

sonred

covery that ils earnings and its

an all ou Nationalist Chinose economie campaign to sell sugar to Aslan nations. The Philippines as lagging for behind in the exploitation of these markets, the report added.

The report also claimed that a British and French sugar monopoly in East Africa. Formosa shipped forty thousand metria, sons of sugar to that region last year, it was reported United Press.

According to the report For masa doubled sugar Bales to Singapore and Malaya last year 1. Covering in March before classified as the long-dates fell surpassing the one

hundred first notice day-Feb. 21-and7/04, but the medium-date thousand metric ton mark,

further

Lh were down 4 or 5 shillings and shrinkage in

Formosan sugar hád áno gain- certificated stock: 2. A tighten the short-dates were 8rm.

ed domination of the market in 34.00 ing situation In the supply of Loading industrials were high-North Borneo where more than cotton ly irregular. A diguided bank 20,000 metric tons sold fast year.

tho

share, Bank of London

and (Other Asian nations buying America,

25 Formosan sugar were Ceylon 2. Soll Bank con- shi 500 38 30 bole thark, the 4,000,000

shillings ร one day to 140 Vietnam, Thailand, Hongkong, siderations and the lock of

dia and Japan). winter rains In the slings on the market's asswort, with the consequent dividends had increased. It held¦ Formosa had broken prospects for a reduced rate of 15 shillings of this rise, closing 500 ( 20.00, production in the future.

the week firmly at 130 shillings. An expanding rate of raw Imperial Tobacco, running into rotton experts helped to offatt some decline in cigarcite sales. 2000 the discouragingly slow rate of lost 2 shilings on the week but 6500 $35

elvity in The textile market. Courtaulda. which has also had 600 19.80

Despite quietness in the clothi situation, mills reported a1

A penco and nucleor scarelly of commercfully desir

sir shares were firm, up a shilling grades and staple in the or more. But any number of While well-known, cotton market. spct

like Ford Motors Business was done in the local total free supplies of cotton are and Rolls Royce and Vickers, nometal exchange markat this

the til umple,

normal pro- reflected the exodus from ther moming at the following ralėsim

better stape cotton important sector of the market. U.S. dollar (per $1)

portion of 0,11 Sterling notes (per £1).. 10.10 was reduced by the extremely Oils were definitely with

12.69 hot weather experinced during | jósors, ranging from

most of the growing season last Dutch's ? shillings down to 10 year.—United Press

Burmah Oil's 9 pence, British Petroleum lost 2 stilling

Lane. CrW COTTONS Textile Corp Nanyang

10 American Federation of Ructuating prices of about 40 L. bour and the Congress In-basic items which it weighs in du irtal Organisations repre- its index of gains and losses. I INDUSTRIALŠ senting the U.S. labour force also weighs

Cement and Rope other goods - brief fled with the joint services bought by "the average reoromic comm'lice conducting moderate Income family." herrings

The President's Conante report, insisted there Was 110 blond inflationary danger. They blamed

"selective"

The price ranges cited in the following table_tre averages for dustries is being a general ba ILA corporations in buste i

Dec, 1948, to December, 1952, (when the afations brought on detton threat. Praits were too by the Korean war had levelled ASCELLANEOUS high.

the government

for December should oul,) cod erse its tight money policy and (uilt: dollar, b.80 100 1917-49. sp more money, inbour uvernge.)

Ivem

read, per tib roast, per 1b. 097 027 Hamburger -perit,

sisted.

The National Association of

Manufacturers took an opposite

view. I said a similar brief

Food

בנפ

Entert.

1056:

4.05

4.70 8.43 0.00

17,80

Exchange Rates oble

.700) Australian notes (per 1) ..

Dec.

Dec.

Dec.

1940

1952

1930

14

.102 183

137

Bak

303

.002

.700

.019

.641

240

M41

248 Singaporu (Straila)

.470

707

010

1.01

1:80

613 Indonesian rupiah (per 100).. 18.25

Bam tieal (per 100)

President Elsenhower's strong emphasis on keeping West Europe supplied with oil will spurree incresses by price-led- new industry efforts at relieving the growing pinch on Europe's dwindling reserves, a leading American oil executive predicted today.

According to B. Brewster Jennings, Chairman of the Socony Mobil Oil Co., President Eisenhower's press conference remarks today that the US must make every effort to help that pront margins are too low, Pork chops, Europe overcome its Suez-inspired oil shortages at prices have been forced upper in..

by rising labour "made sense.”

costs that cre Milk, per quart. outpacing gales in productivity. delivered....... Other "Right

expert witnesses echoed Potato per 10 Aincreati otary of State Dulles attributed the President's appeal for self-

13. companies and industry are part

Eges, per dos dox. discipline restraint of business Clothing moving in the right direction," fallure to meet projected ship- rad 1 bour. Still others insisted Men's shirt he said.

ping goals on the reluctance of that the Government should and

Men's wool uit 4.79 the Texas Railroad Commissionrust take a more active role in

Men's shoes ... Sometime in March, he pre--the regulatory body-lo ap- the operation

Women's cotton of the

dress nation's 100,000 to 200,000 preciably hike i's allowable pro- monetary and credit policies.

Women's sho barrels per day more would be duction." Defence Mobiilser

Household operation Carmarked

So far however, there is no West for

100 Europe. Arthur S. Flemming told a

Fuel oil a joint mediate most of this increase ist

of prospect

Kala. any

11.50 the senatorial committee last werk

wege-price controls. President

Gan rates, per- of shipments to Europe Elrenhower himself that

centage kiercanes — Suez Canal be

has in mastrielty. and Carib-tented from the gu

his reluctance

100 kwh

3.80 limited

to take soft coal. opened

Lanker benn

3.00 330 475,000 such drastic measures. ports movements In the meantime. barrels a day. Of this total only

"And

1.396 18.00 1020 Commerce the improvement in crude ship- about 258,000 barrels were

Secretary in Sinclair Weeks told a press con- ments to Europe would be eon-

crude.

wants ference today there is "no dis- which Europe siderable, he said.

and reeds most.

position on the part of the control in wages and prices, amiltration" to impose direct

Self-Restraint

dicted, from

• form of crude.

Should the

for

Reducing

il

Already some American companies are reducing volun- torily their refinery runs in order

Commenting on the possibility that Texas might permit boost on production, Jennings said "I think you can safely as sume Texas has it under ad- visement."

The Elsenllover Administra-

tion, he sald, la against con-

to make more crude available "My guess and it's strictly tres, no stress is being made on

for Europe. In addition, more companies will switch seme of railroad their production

to

fuel

에

has

industries

per ton

Rent, percentage

inertale Transportation Trant fores Gasoline, regular

grade. per gal, New automobites,

percentage lit Stenats (Ford Plymouth and Chevrolet) Medical Care Doctors Hospital นกป

Vii

3.07 0.62

11.09

13.00

1483

0,3% 13%

¡Jan. 1953)

12.8% 112%

.115

.100 J84

250

.204

304

9.34

12.00 15.80

call t

..office

1,37

4.54

3.03

2.00

4.43 4.03

31.16 1.00

United Prest.

room per day auers is that the Texas the subject rod ne plan is being

home commlesion

mede to impose such controls"

Doctors Weeks joined in Eisenhower's Dental which Europe needs. Because great responsibility toward the

and They appeal

tee, for less crude is needed for fuel economy of Texas

I self-restraint by ng a tool. production.

Miscellaneous more crude would must take all factors under con labour and business to curb in- sideration. It might very well be dationery, pressures, and pointed

Cigarettes, regulne thus become available for cx-

they'll raise their allowables. But that in some

size, per pack. .19 pore International

Reiterating the Americanbour costs are runnkig sheed panies have already laken all industry's "sluctre desire" 10 of productivity and pushing

assist eges, Jennings disclosed that the He declined to identify the in-

Europe with its oll short-prices up to inflationary levels. The exccutive committee of the dustries,-United Press. American Petroleum

Industry considered what steps it might

ake in this connection at meeting last month. A. cross- the US section of

patroleum Industry was on hand, he said. Long Time

all cem- steps to make available greater supplies of crudo and fuel all for Europe. Sinclair Oil Corp. announced today cutbacks on crude runs to refiners, in line with similar moves

announced carlier last week by Standard Oli Co.

(New Jersey) and Socony Mobil Oil Co.

Sinclair said its culback of| 15,000 barrels dally

or 5.4

per cent below the January lovel

a

will continue at least through "I think I can safely say that

Japan Raw Cotton Imports

3.33

27.00

Deflation Bogey

Hits Wall

Street Stocks

New York, Feb. 10.

Wall Street conjured up a deflation bogey last week as more warnings of a hair curling depression came from several

sources.

Prices of stocks dropped sharply to the

the past year, rese

U.S. SUPPORT PRICES LOWERED

Washington, Feb. '10. Agriculture Secretary. Era T. Benson last Saturday lowered the Government's support prices Royal for eight major farm products.

Sheil Transport 2 shillings

pence.

But Suez Canal lives in

world of its own and rose sterling to £51.

Supports for the 1957-cotton and crop were set af 28.15 cents por 01 pound for 3⁄41⁄2 inch middling, ihe base grade for supports. This a was 1.10 cents below, the 1988– 1 crop support price.

of

In foreigners Young Loan Slace farm production and non-assented gained 11⁄2 storling living costs have soared to, a and its assented, 2 sterling, bu record high, supporis were cut the asserted of

in terms 6 percent more

*parly Potash 2 sterling. Japanese non- prices" than in dollars-and- assented, where changed, were genis. The parity levolfixed up 1 or 2 sterling with the as- by Congress as "fair price"

standard---refects senteds up fractionally.

the prices Dollars stocks

down farmers must pay for things heavily..---United Press.

they buy..United Press.

were

THE

GUINNESS

resistance point where support has developed on BOOK OF RECORDS

five previous occasions. It developed again but the upturn lacked vigour.

of

A complete catalóguo.

In the Friday session, the de- | against It the 1950 reporis, ellre was arrested at 483,10 in three automobile companies... the Industrial average. It closed Chrysler showing a plunge of 80

Bank Of France the day and the week at 488,29 per cent net from 1065 Ford, of 10.03 points from the pre-a drop of 46 per cent and Ameri- Statement

vious week, and a new low since can Motors showing a net loss Nov. 28.

of nearly 3 million. Paris, Feb. 10. Last year, the market rallied

Copper price)

the cute sent The Bank of France "state-sharply when the Industrials hit copper shares down as much as ment for the week ended Jan. 458.21 on Jan. 23; 403,00 on 4 points in Kennecott 31, reads as follows:

Feb. 14; 463.85 on May 28; President Eisenhower warned Frand 403.83 on Oct. 1, and 40041 on that unless business and labour Tula! gold Tokyo, Feb. 10.

holding 301204 301425 Nov. 20. Total other currenvescr 19,634,018,500 Japan will import 2,598,000 Bight balance abroad bales of row cotton for bor In EPU spinning mills during fiscal Advance to Stabilisa-

tion Fund Total bili ut

the end of March. Esso Standard there was nothing but the great-1957 it was decided today.

consultations with

Current acodunia and

deportis

Oll Co., a marketing unit of cat desire on the part of overy- The Ministry of International Bank notes in circu- Standard of New Jersey

Trade has one to be helpful," he said.

and Industry set. tho Intibr scheduled is refinery runs ΟΙ

Jennings discounted Industry Agure after crude at a rate of 40,000 barrels predictions that the super tank Association.

the Japan Cotton Spinners a day below the January level. er ranging to 100,000 tons would

Socony culback its crude runs by a total of 17,600 barrels daily gradually replace lo mildere

sized tanker in hauling and intende to

East olli

duri exports of henvy fuel

hiko Its

oil during the first quarter 1,765,000 barrels,

Nearly Half

"The Suez Canal will be by business for a long time. so

in

for

as the oil industry is concern- ed," he said.

The total figure well include

32,617,000,000

31,300,000,000 1,700,078,854DST

149,403,121,392 -United Fi

Poorer Fashion

Raile lost less but perform 3,045,000,000,380 | ed in poorer fashion. They closed at 144.10 off 4.37 and a new low since March 14, 1955, Utiles modo a new high since March 20, 1931 on Monday and closed the week at 71.10, only 0.15. Pooples Glas Sumpe

2 points on the week to help sustain this spoUD

100,000 holes which will be kept The Bank Of England

Statement

In lock-United Press,

NAMESAKES

restraint show

the Federal Government will have to in- stituto controls. Another ad- Verso ilem was a move in Con- gress to maintain the high raits on corporation and excise taxes due for an automatic reduction on April 1.

The market had its wida break on Tuesday when the in- dustrial avenga fall 7.23 points and rails lost more than 2. That was the widest decline shee June 8, the day. President Elena hower was seized with lleifis,

Steels Down

London, Feb. 10. 10 wheellimoted that the

billion The Bank of England" state-market lost a

on the

to estimates made by his cinns

Answers:-T Vitality, 2'Olls, 0, reads as follows.

ment for the week ended Tob, work, bringing digioso sinoo ine higir Was set läxtelligat to pany, oil cammot be transported Pansants, 4 Landscapes #

17: bilion" or, "74 per cent, However, Jennings pointed from the Middle East around Cypru's, 0 Canvas, 7 Style, a Note II olandation

In the 26 sessions so far this Fout : that lo "really" solve the African Cape of Good Hope Valon, 9 Arles, 10 Pedison, 1x Public pod autom

ver, Indkisteinle have declined Inland and Lukens, Alcoa loat Europe's shortage, "you've got in a 100,000=fon tanker as Sketching 12 Improsion,

13

to got roose of out of. Taxas" cheaply sea: 40,000-ton tanker | Priming, 14 Bruant, ill Texas accounts for nearly half through Tho Canal, ** United For total US production, Beero=' Pross.

Vincent

Van

Gogh

the fallo

Government Other, securities; 'Receipte

polly

painter).

of the world's

records and superlativos-

272 pages 126 plates

Price HK$9.50

Obtainable from the sole distributors In

Hồng Kong

Steels were driven down more SOUTH CHINA MORNING POST, LTD. than a points in such, issues es

Ingió, cash in 10 and quities in nebryo in its pel Com Hong Kong.

110

ited Prem

And Weasels ental waa; oft-0-fry the oils. Aire

In addition to the deflation crafts were of 3 to more than

the

market had 4 polate taited. Press.

Kowloon,