1957-02-12 — Page 9

THE CHINA MAIL, TUESDAY, FEBRUARY 12, 1957.

TRADE

and

COMMERCE SECTION

Page

Bank Rate Has No Mystic WALL STREET London Stocks

Powers HONGKONG

DOES NOT ACT AS MONETARY TRAFFIC SIGNAL

From RONALD BOXALL

London, Feb. 11.

outcome

of the

An unexpected monetary policy introduced or rather reintroduced after years of disuse--by Mr Butler in 1951 is almost a mystic belief in the efficacy of the bank rate instrument for altering the course of the economy.

No doubt thin been planted

as an

STOCK EXCHANGE

(From Our Correspondent)

Busineg

New York Cotton Futures

Big Drop

Show

New York, Feb. 11. Cotton futures today plunged a little more

MEETS NEW LOSSES

New York, Feb. 11.

Move

Lower

London, Feb. 11. The London Stock Market The stock market was well below the pre-moved into lower ground vious support levels today with losses ranging to in quiet dealings today as more than 5 points and values sacked more than most traders 3 billion.

All sections were down and Bocony Mobila...

South Puerto Rico Sugar Trading picked

sharply. Bouthern National Das up Tickers were several minutes Bouthern Raliway (Com.)

Steep, Nock (Terantonx,1

Stordard Brands Metals, aircrafts, shipbuilding Lancs, lls and special Lsqucs bore the brunt of the decline.

done un the Hong than $3 a bale, the widest drop for any session in late at the close.

book Stock Exchunge this morning amounted Se op-

$520,000. !proximately

Noun quotations ah Sho inorning's transactions.

Share Biser Nettera Zaten

BANKA

Bent Asia INSURANCES

SHIPPING

1040 234

932

4 30

1500 or

750.0

130

almost a year,

Broadscale liquidation, with spot for selling and hedge pres- sure accumulated over the week- ved comcident with the Govern- ment announcement of a lower price support basis for the 1957

་

erop.

Threatened restumption of the dock workers strike tomorrow,

possibility 175 with

of increased 079 hedge selling against any export

held up

the ports,

100 60 101

་་་un

50445,75 | helped keep prices on the defen-

Calve.

19.

F Worl

ጉዟ .

34.

di

131 13

20% 45,73 279 133

LAND, ROC

# Botel

fven

Lora

B

15,10 15.30

(:2

14

nie. Exchequer's Fed Maymun's torced As The Economisi mind by the enthusiastle Gurke: the change was made RimER pourings of the protagonists of fat dah stage "almost certainly

orthodox monetary polles, The unwillingly."

result is that a kid of damu i

—or at least a sense of some

thing significant Sappening

This much is clear troas

in pains the Chancellor took

the marvellous world of high make plain that the redir Anance all the more intriguington should not be regarded because it is not properly under "green light," stood-attaches

the rate.

to changes in

Attempts to popularise the theory of monetary control in which interest rates play a key part have characterised the bank rate as Traffic

Q

signal. When it goes up the

Govern- ment is said to have shown the

red light", meaning must all be prepated for a bout of austerity. Similarity, when

we

It would wrong, said Mr Thorneyeret

to interpret as a change in

This is not ecomic policy.

www

LULITIE

Vaurnaly

Light

E

Ent

1000 15.20

2004 12

New crop months showed the widest losier, Bearish sentiment increased with the Department 16 61% of Agriculture notice

of n rut of 1.10 cents pound in the sup- port rate for next season.

ENZOA371, 530 NY LAA

I

223,24 230

102 19, 2290 240

31 31 EL 01

TOP No an

ANG PADA 2440

INDUSTRUALS

... 301 0176 1200

a signal for bankers or others controlling The sources it cement finance to relax credit or other 1 Buge restrictions on lending." cell.

Move Welcomed

-

: Wat:111

COTIONS

Valen

Nony.ng

10 123.30 1000 104

1000 23 3500 - 314

200 g 25.40 200 20 40 DO 20.40

2002330 DOU 6 24.30 117224,40

10 70 150 2000 18.20

0122.00

The crop will be supported al 77 per cent of parity compared with 82.5 per cent now in effect. Department officials salg the reduction would mean a drop in The support price of about $5 at bale. The inninum interim Joan rate for middling inch cotton will be 28.10 cents pound compared with the 1956 Late of 20.34 cents a pound.

Memphis

น

5

WORLD

RUBBER MARKETS

New York, Feb. 11. The rex contract today clused points higher to 12 points lower with sales of 40 contracts.

30.69

March MAY. July

September November January March..

3025

20,23

20 BA

29.49

20.30 28.00

Standard contract today closed & poluts higher to 12 points

lower with no antes reported.

March

May

July

September

November

January

March

30.65

***

22 BA

20,00

20.40

29.20

20,00

There was nothing in the Ini- mediate news to account the decline. News such as;

1. Fullure of the market to meet support at the

400 level it

where Sessions

standard Oil of Cal

Standard Oll of Did. Standard Oli or NJ. Sterling Drug Co. Stokely-Van Camp. Studebaker-Packard Corp. Switt & Co.

49 3714

40

awaited the publication of January provisional trade figures,

These were not released until Ja after the close when many 18% sources described them as 384XL

"dismaying."

82

Trading in British Govern- menity

WAS

light with most

LHUCK closing around their

opening levels.

Blue chip industrials showed

improvement in Bomo

issues

the ma-

but wound up with jority down three to six pence, BANK EASED

20

1814

98

Texas Co

હા

Tide Water As, Oil

Twenty. Century Fox Plan

was

helped ve

Union Carbide.

Union Parlie Wallway

the past week;

United Aircraf

70%

UB. Fall "E

54

UB. Cyperun

401

234

124

three pence

40

2. Buildup of adverse items;

3. Investigations and threato of investigations:

cicfia- be highly

u, S. Line Co.

US. Rubber

U.S. Blest

4. Moves to cut the budget.B. Emelting which would tionary:

5. Ravages or tight money and competitions of stocks;

0. The Middle East situation which brings uncertainties doily. Numerous Losses

It was the widest break in the Industrials since October 10, 1055, the day a medical report said President Eisenhower was still not 100 per cent out of danger from his heart attack of late Scptember.

Losses of 5 5 points or more were numerous, Industrials lost 8.85 points OT 1.90

Rilis lost 3.34 per

per cent. cout

and

Atlanta trade reports noted a continued słow demand for spot cotton in the past

Rubber futures today tumed utilities 1.28 per cent. week.

A total of 1,201 issues appear- Irregular after a steady opening, complained of Mis sald inventories.

but overall activity was on the jet on the tape. Of these 910 reported another quiet slow side and appeared to be declined, 131 advanced and 164

the held unchanged. week with

mortly evening up before very little milf in-

Volume for the session total- terest Many mills wanted to

hollday tomorrow. Factory in- buy 1950 growth to mix with ferest in the spot market was led 2,740,000 shares,

New York Stock bond volume almost reported their stocks of 1958 growth,

non-existent.

was $5,280,000, certificated

de while eastern shipment offerings stock

also clined 74 to 2,852 bales.

чисте on the light side. Closing on a reaction the HatLocally, Spot No. 1 Ras was

1. Craw

13, 1300 26.30

1200 13.0

Targe

4.00

A 23

AGM

MISCELLANEOUS

Later

17.00

a

we

Nevertheless the been welcomed in financial circles where high interest rater

move

has

Vine INVESTMENTS Yonglaze

10.10

0

10

500 G &

ovr

are unpopular breause they

it has gone down it has been taken as the "green light", signal that all is well and

can go ahead and spend money.

are

Beliefs Wrong

Needless to say both beliefs wrong. But that they are held is reflected popuarly

in the fact that each change in the bank rute is announced in to the news- bold headlines paper reading public as n

Last rale

The

although the interest als But New York Sugarbering prices were goed nominnily 30% cents

rates that

the

не

are tied traditionally bank rite the charge for bank overdrafte

and the rates pay able on deposi; necounts-ente down in response to the duetion, it does not mean that lj is going to be

In closed today 20 easter borrow money—whether it higher for the hire purchase of

Facts, motor eur or fur

publie or

Worki

SINGAPORE

The market opened higher on better Open interest

overseas advice but i cased because Jacking of interest,

Opening

pound.

Market

of 18

02 to Orleans clused polals.

points off 14

New to 64

4

New York, Feb, 11 No.

Munth

Mar

Volume 17.600

138,700

sugar futures

Mas

10.200

285,000

to 20 points July with sales of 742 con-

10,700

140,700

0,900

100,000

De

3,300

118.300

Mar

3,700

43,000

May

2.800

331100

Indeed, it is believed in some quarters that the reduction in

Domestle No. 6 sugar futures closed uncharged to 3 pointa higher with sales fracts,

July

13000

17,800

Total

00,100

1,034,100 bales

+

of four com

NEW YORK

Spot rubber unbaletl Blanket crepe

prise" or even a "shooter- | private business purposes.

**

week's change when the was cut from 614 cent to 5 per rent Was

i

covering and R The bank rule at a time when Tre-holiday no exception-in spite of the the Chancellor still considers speculative trade demand Im- fact that the glit-edged market,

to "restrain

both parted a note of strength in he necessary

u less delive which is the most immediately public and private spending in world contract in affected by the change, has order to make room

market. The market will remain for exports been actively anticipating it and essential investment" closed tomorrow for observance

since the beginning of the year,

The foregoing ders not mean газе that changes the bank are unimportant. They art-23 the reaction in Bannelni circles testifies. But they are impo- tant for reasons other than those attributed to them by the lny public.

The bank rate is the rate of Interest charged by the Bank

of England to rediscount short term money bills. The finance houses who deal in these blils are anxious not to leave them- selves so short of

funds overlending

that they forced into the bank" have to borrow against term bills at the bank

higher rate of which is

l

terest than those

them,

that

ulto

might mean that the Govern- of Lincoln's birthday. ment will have to rely, more on

the other means of curbing the

demand for money-by physical | March controls at its source,

The Truth

Septracher

Future closings were:

No. 1 rubber per lb. Mar. 0811-0044

Apr. 87-88 No. 2 rubber per íb Mar, 051-80 Nu.

8315-04 No

811-8214 184-BUT 75477

Prices of futures closed today No. 1 pale repa Bs follows: Spot March

May

July

October

December

33.30

35.00-17

35 08-13

LONDON

The market was quietly steady with spot quoted at 26-3/16 pence. Prices:

2003-20132

2015-201

34.3-50

32.00

22.83

12,61

72.00

No. 1 Ras spot

33.20-27

Mar.

Apr/Jum

23-20

July/Sept.

Oct./Dec.

2516-25%

34.00 07 35.00-00

Feb MAY. Apr. Eftale crepe thin "Mar.

23-201

24-2322

2512-2014

thick

urki noted

NEW ORLEANS

Prices of futures closed today

March

Contract No. 4 (world)

May July

5.79-69

必ずロで

0.74-75

July

Mareks May July Spot-trents per lb. fob Cuba) 3.07 Open interest: 7,190 contracik.

8.7-2-26

3.54-75

4.75

as follows:

4.73

Spat

4.70

March

May

July

October

matter is

Contract No. 6 (domestic)

December

5,601

March May

3 02

July

0,741

ther Navnet

LIVERPOOL

3,77

The truth of the that whatever the improvement there was in general the health March of the British economy up to My the time of the Suez crisis the

final consequences of

episode have not yet been felt Sporents per 1. elf NY

Futures

in closings, per ib. were as follows: Old contract

32.43

32.70

22 07

General markets, cif 'basis, ports:

AMSTERDAM

The market was very, quiet. Prices closed today in guilders per kilogram, elf Mar, as (lows:

its

that

pence No. 1 rubber

by

are

and

short

or even accurately gauge. And that is the factor that will be Open interest: 1590 contracts.

Chancellor's uppermost in the

No. 2 rubber

Mar/Apr.

20.05

No. 3 rubber

-Unted Preta.

May/June

No. 1 crepe

rate

mind as he gets down to the

July/Aug.

Oct/Nov.

25.43 25.00

in job of pinnning next month's

budget.London Express

Dec/Jan.

24.04

Ser-

NEW YORK METAL New contract

Mar/Apr.

May/June...

FUTURES

July/Aug Oct/Nov.

20.35 20.05 25.65

23.20

Dec./Jan.

25.05

€0.00

they have charged vice.

borrowed from The Fate of interest Anance

houses

Will charge for a short term loan nowadays mainly to the dov ernment against bills,

Is

not too

necessarily below... far below-the

therefore

but

bank rate.

2

Anticipation

When the Clly judges that

the time is ripe for a fall โถ

Lincoln's Birthday

New York, Feb. 11. Major securities and commo- dity exchanges in the US wil Operate ሲዊ usual tomorrow. Lincoln's birthday, no longer

It will be a holiday

only

the bank rate they will try to celebrated as a holiday in Wall anticipate it, And they can do Street. this by bidding up the price of glt-edged securities thus bring ing down the effective rate of intercat on them or offering short term loans to the 'Gov- 10minut nt lower

interest

Both these things have been happening recently. The Finan cial Times Index of government Bocority (glit-edged) prices had rison steadily from 82.30 at the end of last November to 89.50 at the end of the week before

the bank rate reduction. And

the Treasury bil rate

fallon

had

↓

Futures

unquoted.

closings were all

Egyptian Kamak Jan/Feb. New York, Feb, 11. Prices of metal futures closed

SAO PAULO today as follows:

Lead Feb.

Ma Zinc Feb

Bl Copper Feb,

15.430,

19.04h

13,300

1,0 29,001 รองเท

was

London

fol-

2.85 nord. 2.53 BURN.

2.40 DUTE. 2.78 nom.

United Press.

Foreign

Exchange

London, Feb. 11.

Closing rates were: In the US the average spot New York price was not available. Total Montreal saics

these at

markets

Amsterdam Brussels 80.07b (standard) | 23,509 bales-United Press,

Copenhagen Frankfurt Matlam Paris Blockholm Zurich

Tu

agar. Frb.

Mar

on en

Feb Mnt.

998715 (tr=11) 20.00b

- United Press,

LONDON METAL

PRICES

for the banks, markets such as

London, Feb. 11. rubber, hides, tin, lead, zinc, Prices of metals closed today burlap, cocoa, coffee and sugar in sterling por long ton as and the N.Y. Preduce exchange, follows: -United Press.

Singapore Stock Market

Singapors, Feb. 12. Brokers today quoted following stock prices:

2.79-13/10-2.701 2.08-2.66-1/10 10.07-10.67 140.00-140.00 19.754-10.3 11.7046-11.75% 1701-170116 0903-037 14.50-145015 12.2734-12.30) -United Press,

New York Foreign

Exchange

the

Dayers Sellera

Balu Lintang

Ltd.

Flubbor Co.

Tin spol

704

762

3-morith

750

7521.

British Borneo Petroleum

Syndicate

Opening

$1.82

01/-

Cepper spot a-thonth

244%

244

245 Contvlidated Tin Smelters 24174 Ord

New York, Feb, 11. Closing rates were:

Canada

31/41/2 England (0-day futures) 27019

Feb.

112

112

Frater & Neave Lid Ord. ..

11EP

114

Fraser & Neave 714% cum,

鏡

$4.00

Australia Switzerland Argentina

1.04-13/32 2002/10

2322 J0280 United Press,

N.Y, COTTONSEED Lead staf Mov

OIL PRICES

Prices tream nearly 3-1/10th futures

New York, Feb. 11.

of cottonseed oil closed today in centa

por cont early last December to per lb. as follows:

Under 4-9/10th per cent. . So | March

much for the "surprise" when May

the

Juts

Zine ist half Feb.

May

-United Prost

Exchange Rates

LICK

Gammons Malaya) Limited $200

Hongkong Bhaghai

Banking Corp.

Hongkong Tin Ltd.

Coropas Ltd:

Lada Rubber Kalates Ltd. 00 Malayan Breweries...

New Berandah. Rubber Co.

id.

Peking Tin Ltd.

Business was done in the local famen Hotel unofficial emchange market thi Singapore. Cold Storage morning at the following rates:m

change

was eventually

Sept.

16.30 18.05

16.70

10.01-15.09

US. dollar (pær. 81)

made.

Oct.

13.00-49

Stering notes, (per 43)

Dec.

Australian novel iper 1)

In fact what has happence Jen.

that the Chanellor of

15.200

10.20

tho

ibed Press.

Indonesian rupiah (per 100) .. #lam toal (pre 100)

Bij Brtists · Ewurance 4.1) 11.

10.18 Straits Tradin

1080 | Brašta Biesmallp

united Engineers Ordi 25.10. Wakiso. Deco,

$1.60

CHICAGO LARD FUTURES

Chicago, Feb. '14% Prices of Lára futures clornă. today in cents per lb. as follows:

Marda

Buy Sept

American Stock

Exchange

volume was 800,000 shares.

Dow-Jones closing averages

were:

30 industrinis

20 rails

15 ies

63 stocks

40 bonuk

Comm. Adure price Index

Closing Prices

Alden Inc. Acy.

Allied Chemicals

Allled Mills Inc.

Allis Chalmers

American Airline

American Cable & Radio Corp. American Cyanamide Co. Amer. & Forgn. Power Am. Mach. & Fury American Metal

American Sheung Am. Sugar Ret.

American Tel. & Tel. American Tob. "B" Anaconda Copper Armou Beel Armour

Atlas Com, Mining Baldwin-Lima-Hem. Baltimore & Ohlo

Bendix Aviation Corp. Benquot Cons

Boltlehem Steel

Boeing Alplane

Borden (The) Co

Burroughs Add Machine

Canadian Predste R.

Case (2. L.) Co.

Cat. Tractor

Celanese Corp.

C. I. T. Finnnetal Corp. Chrysler Motors Climax Molybdenum

Colgate-Palmolive Co. Commonwealth Eler. Commercial Credit Consolidated Edison Continental Oil of Del. Crane Co

Crown Zellerbach Cuban Amer, Sugor Diamond Alkali

Dow Chemicals..... Dupont de Nemours Eastman Kodak

El Papo National Clas Eric Railroad Family Financa Corp. Ford Motor

General Electric

General Foods General Motor Gen. Pub. Uni. Glidden Co.

Goodrich (B. F.) Co, Goodyear Tir Gur Oil..... Heyden Chemical Homstake Mining Co. | Tigersoll-Rand

· Inland Steel Co. Interchamiest Corp. In Business Machines Int'l Harvester International Nicke International Paper Int'l Tel & Tal John-Manville Co, Kansas C. Power & Ligh Kennecott Copper Liggott Mayor Tob. Co. Lockheed Aircraft Loews Incorp. Lone Star Cement Co. Lowenstein & Sona, Korabi Iron COD, Mimesota Mining Mission Development Monsanto Chemical Co. Sfontgomery Ward Motorola Inc.

National Cash Ret. "A" National Dairy Prod. National, Leat Nations: Steel Corp. New York Central Olin Mathiason Otis Elevators..... Owen-linols Gires Pacific Gas & c. Pan American Airways Paramount Pictures Parke Davis Co.

•Penny J, CC Penn Salt Co. Php Morria”. Procter & Gamble, Co. Pittsbundi Piate Glam, Publieker Inmurleson Pure all

Hadio Corporation Tapable

Tynokia Matki. TR-10 shell Oi

Saint Reg. Pa

Warner Bros.

Westinghoum

Electric

West Va. Pulp & Paper Woolworth

Bank of London and Scuth America coscu one shilling

three

to pence

profit-taking.

131 shillings

us a

result of

Olls yielded 1

43% and 2 shillings but chain stores United Press.

NAMESAKES

I managed to cling to carly gains

ranging from 5 to

pence.

Sucz Canal appeared only once on the tape-unchanged at 51 sterling. Germans showed

Answers;--1 Figaro, 2 Italy, some activity. Dawes and

3 Tenor, 4 Arla, 8 Composer, Young Score, 7 Shaves, B Seville,

Loon

non-assented dropped sterling and the Notes, 10 Opera, 11 Barber. 13 agented issue lost 1 sterling. Orchestral, 19 Senle, Singe, Tolcyo 01/2

Jumped percents 15 Magple, 18 Singer, 17 Cur- | ahend, 1 sterling in an otherwise taing,

colcurless Japanese market, Gioacchino Rossini (the com- Dollar stocks ware generally

lower.—United Press,

poser).

P.OB.I

E&A

COMPANIES

PENINSULAR & ORIENTAL S.N, CO.

PASSENGER/FREIGHT SERVICE

Outwarda "CANTON" "CORFU” "CHUBAN" "CANTON"

Leaver Lozdon

Salled

19th FebruLTY

4th Apri

21st Apri

Due Hongkong 22nd February

30th March

8th MAY

1st June

Singapore.

Via Southampton, Colombo, Pinang *

Homewards

“CHUBAN"

"CANTON" "CORFU" "CHUSAN"

*SUNDA"

Leaves Hongkong Dua London

18th February

10th February

3rd Apri

12th Max

21st March

8th April

12th May

12th Jung

Via Singapors, Fening & Colombo.

FREICHT SERVICE

Loads 13th Feb.

"SALSETTE" dne 12th Feb.

“BOUDAN”

dus Eod. Mar,

"SALSETTE" seada 8th Mar,

"SINGAPORE"das 11th Mar. "BALLARAT’đu= 17th Mac,

for Singapore, P. Swet. tenbain, Havre, London, Rotterdam,

Hamburg.

Antwerp

mouth

from UK.

from UK.

Gringe

For Singapore, F. Bwet- tenham, Penang top don Hamburg. Etotter

dain & Antwerp from UK.

from UK

ALL VESSELS OUTWARDE AND HOMEWARDS WILL FROCKED BY THE CAPE or `GOOD HOPE UNTIL FURTHER NOTICE.

BRITISH INDIA S.N. CO., LTD.

1886 — A HUNDRED YEARS OF SERVICE — ING

Érom Calculta, Bangoon "BANGOLA” dus 25th Feb,

Salla fol, Feb. 5th Mar. mais oth Mar.

"FULTALA” due

"SANGOLA” das 10th Mar. all 1715 Mar.

de Straits

for Japan

from Japan.

för singapore, Itangoon, Chiltaboo Visakhapat Tan de Kalcitada

from Japas

for Singapore: Penang, Banzoon és Calcutta

P. & 0./B. L.. JOINT SERVICE

"ITAURA” in Port

"URLANA”

“UMARIA”

safir 19th Fak.

due 19th Feb. all in Feb.

dae Bird Teb. salls 25th Feb.

"ITOLA"

due 4th Mar, KALLA 3121 Mar.

from Japan

for Bingapore. Hambay, Karachi, Basrah, Khor ramshahr de Kuwait Szum JapaUS. for Bingapore, Cochin, Bombay Karachi, Big rah & Kuwait from JapaA

for Bingapore, Bombay, Karachi, Khubei, Kuwait, :. Khorramshahr & Harrah from Bombay & Karashi ' Ius Jupan

EASTERN & AUSTRALIAN S.S. CO., LTD.

"NELLORE" In 'Port "NELLORE" loads th Mar.

from Australia for Bandakan, Rabeul,

·Brúbane, Sydney, Mol bourne à Kannada

All vessels havi, Ulberty to call ka kay portà an or off the route & the route ja piling nei subject to charge or amendment will or without, höttos,

For full particulars apply to: MACKINNON, MACKENZIE & CO. OF HONG KONG LTD. Telephone Nos: 27721-4.

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