1957-03-18 — Page 9

THE CHINA MAIL,

MONDAY, MARCH 18, 1957.

Page

TRADE and COMMERCE SECTION

US Business On Downswing HONGKONG STRIKE MAKES

PESSIMISTIC OUTLOOK

FOR THIS YEAR

By JOHN MORKA

WORLD GRAIN SURPLUS

New York

STOCK PUBLIC WARY

Stock Market EXCHANGE

Review

By ELMER WALZER

New York, Mar. 17.

week gained about a point

(From Our Correspondent).

Busine done on the Hongkong

this morning Stock Exchange amounted

Noon to $404,000. quotations and the morning's

Shates Buyers Sellers BANKS

1875 1803

in the Dow-Jones average| UK" Bank and lost two cents a share INSURANCES

Lombard in the Standard & Poors

SHIPPING index of 500 stocks.

Wheelocks

..

3751

Rome, Mar. 17.

nation Twenty four New York, Mar. 17.

agreement on the estab.

Stocks during the past transactions: seemed less concerned about 1shment of a permanent American businessmen inflation last week but worried instead about a flattening-out body to study world grain surplus problems seemed tonight

despite in the boom. For almost 21⁄2 years, the U.S. has enjoyed a steady certain

American sup upswing in business activity. But with the trend downward lukewarm

port for the project. in recent weeks, and new weakness in the economy showing

Creation of such a committee This is another way of saying le the main sure before a special the market performed more than up almost weekly, many experts were becoming increasingly dye-day conference of train

the Dow-Jones averages which Arxt sceptical about the outlook for continued economic growth producing

consuming are made up of the cream of the nations called here last week by the Food and Agriculture Or market. The Standard & Poors for the remainder of 1957.

ganisation (FAO) on the re figure is much broader and in quest of its commodity problems cludes about 90 per cent of the committee.

ཙྪཱ

the U. S. News & World Report. The U. S. dollar, it dods, is Now worth

buying power than ever before, (and) is to lose still more value in the days ahead." in the last four years of the Eisenhower Adminis- Iration, the dollar has lost 3.6 cents in purchasing power, three

the past year.

Tate of Backgrounding this pessimistle | quarter of 1955, the cutlook were the following capital expenditures has risen in

The quarter. developments:

every pected decline in the second half of this year will mark the first quarterly reversal

since

the boom began. More comforting however, are the forecas for 1957 sales: Manufacturing, 0

cents producers are per cent, above 1956; trade, openly disappointed with April per cent; utilities 9 per cent. business. In some cases, ship-

1. Slackening in steel orders, mainly from the auto and ap- pliance industries. Output last week-94.2 per cent of capacity -was at the lowest levels this

and stoel year

Gre

ΠΕΡ

ments

outruniting orders by as much as 10 per cent. Operations last week may be even lower,

13

Inflation

ol.

4

re-

having occurred just in

Ernest G. Swigert, President of the N. A. M... Usted three factors contributing to inflation: "Uncontrolled monopoly power of international unions; big goverment spending; and a fax

to "designed

promote

Informed conference sources said-tonight that after three days of the of discussions, delegates

24 nations attending the meet- ing seaned ready to agree to

set. up the permanent study group.

Most enthusiastle support for the project came from Australia, Canada, the United Kingdom and South Africa, a conference United States voicing the source said, with Japan and the most Important reservations.

FAQ GROUPS

-

DOCKS, ETC.

301

Dock..... Provident Shad Dock HAND, ETC. HK Hotel K Lond Healty RUDŘER Ambig.

UTILITIS Tram XD. Star Ferry Younali c. Light Electric

K. Wharf

value of all listed shares in its Trom compilation.

The Dow-Jones everages showed a gain of 2.65 points in the industrials, 0.18 in the rails The

and 0.84 in the utilities. The 05 slocks rose 0.99. The utility rise featured and it left the average Macao E at a new high for 28 years, Telephone thanks to strength in one issue Peoples Gas up 8% points on the week.

STRONG SPOTS

There were several strong in the industrial lenders

as

Sales

65 3716 2003

6.85 300 0.80

104 47 42 13.10 13.40

1.30

19.20 34.00

3013 37

148

2.45

1.00

23 020

108 107

23 23.30

20.80 2014

241 24.00

700 37

BO 3.00

100 m 100

P0023.20

600 < 30 100 2014 013 6:30 1000 30

319.00 1000265 10002415 600 na 2435

60024.00 1000 # 24.00

34 3000 3374

INDUSTRIALS Cement

Hope

3314 1200

Amoy C.

STORES, ETC.

palty

..... 10.0 10.40

Watson

XALL

11.40 1133 3500 @ 11.40 24.30

6,90

4,70 4.7735

8,30

17

4.25

4.75

sald But an American source the United States was ready to spots go along with the body's crea- | such American Tobacco, Lane, Craw

COTTONS on a majority of the nations | Chrysler and United Aircraft- meeting here want H.

each up more than 2 points. Textile These help offset a 3-point loss Nanyang Bi

MISCELLANEOUS in International Nickel.

INVESTMENTS

"These forces and the inflation

Major American reservation which stems from them add up

the source said, was the feeling to the ultimate destruction of

that all surplus problems might Individual liberty and

In be more profitably studied of the nation," he FAO groups already

In exist-

the

ance.

concern at

Vibro

The real gainers were aside Yastaze

average group, including

the

Barber

ex-

3 Continued uncertainties elsewhere, in the auto industries 2. Housing starts-which help and consumer appliances. Textile take up much of any economic prices continue to sog. Paper-ystem alack-appour to have fallen board output is lower than last cial reforma di to re-dis- below the annual rate of 1,000,- | year. And market activity con-

wibute woalth instead of simply 000 units for the first time in tinues generally listless without

to rulse revenue, over five years.

incentives of new business hewa, 3. A new pattern in inventories Prices tended lower most of the appears to be shaping up Tho

although helped in part week,

ut an early was by prospects Inventory buildup which

opening of the Suez Cand and strong in 1900 is slowing down.

President bankruptcy reluctance The value of factory inventories the

O up 7, Freeport during January was 100 million, Elsenhower to take the initia-sold.

Sulphur up 7% on a big nickel compared with about 800 month-tive in cutting his record 71.0

The Japanese delégation The Federal Reserve Bank of and s

The add deal with the government, 17 this time in 1936.

This may budget as inßationary

good such,

for the financial New York in its annual report pressed

and mean that producers might be

released Last work finds that oral man power, money

American Motors time the

ran second new figuring on lowering production community.

while its polley of monetary top-executive Although there was seemingly

Major in volume to Shell Transport and ahead;

buyers re Also, that

£130. might taken restraint has

effect in commitoo looking forward to some levelling less talk about inflation the suo-

sectors of the economy,

Brea of agreement yet to be re-trading. It got into action when in prices.

Ject was not altogether forgotten, some The Eleenhower budget, blamed new pressures have cropped up solved, conference sources said, it was learned the Louis E. by

and elsewhere. Any retrenchment in was the definition of the scope Wolfson had increased his hold- govemment officials

ings in the company to 360,000 of the new body's activity. plant expenditures and construc- economists as too, high and in-

informed tion might be offset by govern=

sources estimated shares. flationary

attack came under

that ment and slate spending, so that tonight

the committee

The market retreated on Mon- Inflation was still something to would serve as a clearing tour. watch, it said.

In which statistics on world day and then turned up gradual- ly when it appeared as if the consumption, grain production, and movement

Ex-budget cuts, if any, would be could be changed in an effort to co-ordin- mere tokens. Congress threw the ate national policies so that one and throw it right back with budget at President Eisenhower will nation's disposal activities not far the world market the statement deep cuts

only be made in big programines United Press.

backed by Congress.

The net result

Expenditures

Personal Savings

4. Revised estimates indicating again last week, thai American business will The National Association of urged a cut of spend less than anticipated for Manufacturers new plant construction and 8.2

slash of more billion, n equipment this

Even W year. Capital | than 10 per cent. expenditures for 1857, according Rudolph Burgess, Under Secre to the latest compilation by the tary of the Treasury, Insisted

Some circles are beginning to spending more Department of Commerce and the the

country is

whether, in Securities Exchange Commission, money than it should. He urged wonder however,

fact the inflationary

Is surge will be higher in 1957 by only cuts for the long term best in-

spent. Although price 6% per cent, and contrasts with terests of the country." They about

called for more "balance" in the Indexes continue to move higher, the tremendous 22 per cent rise in 1958,

economy

savings appear to be increasing emphasising that the

demand seems Although planned outlays are

government was trying to do and investment hit new

then it highs of more

and to be levelling off somewhat. expected to

has mon 37.3 billion

materials to accomplish. All this this year and me

This coterie points to the counted on to provide substantial is resulting in higher prices, he

saving growing trend toward support for the

saki, economy

moit and spending less of cur- generally, they are not expected

reril Income

Government to provide enough momentum 20

statistics show that in the final business upsurge spark a new later this year. Since the first

quarter of 1958 personal savings were 7.6 per cent of personal in- come, compared with cent a year earlier.

Meanwhile prices continue to edge upward and the end is tum where in sight, "Will the cost of living ever come down?" Asked

US Cotton Moves

Irregularly As Season Ends

By WILLIAM T.

PLUNKETT

New York, Mar. 17. Cotton futures moved irregularly last week in fitfully active dealings, with the dividing line widening between the old and new crop deliveries.

Its

6.8 per

The Wall Street Journal finds also that bonkers are once more Lalking about a possible interest rate cut as loon demand cases,

of financial canvasa

and banking groups showed that mortgage money is becoming more plentiful, and that the cost of borrowing money "shows signs of levelling off."

Only a few weeks ago there was talk of still higher interest rates.

notes, bankers Now, it "wonder how soon the rates will head downward. The "prime rate,"

the rate charged to the best credit risks, is at 4 per cent, highest in about 25 years.

"The bankerB rovised ay praisal of the money outlook is based largely on one fact: Loon demand is easing," the financial dally finds.

Exchange

Rates

Budness was done in the local thie exchange market umofficial morning at the following rates;-- U.S. dollar (per #1) Sterling notes (per £1) Australkam notes (per 21)... Indonesian rupiah (per 100) Singapore (Straits)

tical (per 100)

gains.

Canadians

To

could

to

Allied

US Cotton

OF INVESTING

By C. T. HALLINAN

London, Mar. 17. The week has been dominated by the approaching strike of 40 unions in the shipbuilding, engineering and electrical industries. Feeling seems to be that it is ominous, that it has the same quality as the situation which precipitated the general strike of 1926. There have been no negotiations between the two sides, the | Federation of Shipbuilding Employers having flatly refused last autumn even to discuss an increase in basic wage rates.

This

comes at a time when British Govertuments were de- riding high.pressed nearly all week with the industry is With orders amounting to some losses ranging from 1⁄4 sterling 5,300,000 gross tona compared Old Conpols and War Loan- with 4,100,000 gross tons in June, down to 1/16 sterling. 1955.

BİRGT 23

Shipbuilding

were moderately lower by one or two shillings but the exodous from all allied shares has lowered the Financial Times industrial Index by 2.2 points to 184,5; some 10 days ago it was 100.0.

Typical of the break was the fall In Metropolitan-Vickers of 2/3, with others down 1/8 to 2/-.

Nuclear-powered shares, like Reynolds and Parsons, all lost about 2/~.

Chief event was probably the only practically rucvenstul öffer ing of 40. million £1 shares of the Steel Company of Wales; the Underwriters had to take all but 10 million of the shares for the investing public, fearful of labour coming into power of these days, shied away.

one

This flop did not increase the Conservative Government's pre- stige-United Press.

Recurrent Boom

And Bust

Shell Transport, whose shares are now actively traded in on the New York market, was in huge demand and soared 10/-,

New York, Mar. 7. though Royal Dutch-which has

of the nation's been in the New York list for a Federal Reserve Bystem Mr long time-ended the week un-

The head

Goods Market On the other Martin, sald the great challenge

Weekly

New York, Mar, 17. The cotton goods trade for apparel and industrial | fabrics continued at a slow pace last week.

The bellwether 80-square four yard print moved out of second hand on spot in fair amounts at 17% cents o yard for top standard goods while mills were holding for 18% to 18% cents a yard.

hand, British Petroleum

lost

of modem, tirety, is finding a

2/9, and Anglo-Egyptian "B" way to prevent the recurrent of the boom and burt cycle that more than 8/~

"could destroy" uk,”

Sucz Canal fell £24 Last week to £50%, pretty close to Its 12-montha low,

Foreign Bonds

In the

sions.

to

e-

"Over the Inat handyby FEATS American economy tos perienced some 24 full turgas of the business byels, an averago of one complete_|_rise-and<Dall ench four years,” Mr Marta Bail Foreign bonds again moved cratically when they moved at "Generally, the inmediato im- all.

of the expansion German section petus Comtimers followed the now Potash. 7 percents non-assented, government's role in economic months-old hand-to-mouth buy gained £1 while the % per-

affaire has come from one of ing polley, taking on commit-cents lost £1. In the Japanese these periodle. disasters,"

the same condition of the week's ments for quick and nearby deliot ench

Mr Martha

that wizmed The 1907 non- trading was small plurality of livery, mostly for all-in pur- prevailed.

elimination of certain factors of £14 while Out of the 1,330 issues poses, but paying little heed tɔ aastateds gained

creation of the 1930

lost instability through non-assenteds defuture requirements. traded 660 advanced 533

the Federal Reserve System did £122.

1010's The

non- 4.20clined and 180 held unchanged.

Availability of goods on restarteds Tore £1 but those not prevent "drastle depres 16.30 A total of 31 Issues set new

sales at concessions from the

of the 1899's and the Tokyo 12.19 highs while 53 were down

on some basic con- mill levels 16.30

lows for 14 months structions increased the degree stantial change in the assenteds also involves fiscal, bukiretary,

percents fell 10/-. Only sub-

"The overall problems stability 20.73 new

180 United Press,

of buyer caution.

was the fall of £1 in the 1930s. and dept management policies as well as prudent decisions on the Chinese were not very active.

On the whole, dollar stocks part of the business and financial were better but there was no community," he said.

be movement strong enough to called trend. The

"In the sphere of business and premium week's 744 per cent to 8 per cent of our times which they enjoy rose from last economies, the great challenge is to prevent the but tumbled thereafter, to close recurrence of the boom and at 7% per cent. Fugitive money crush sequence that he im Apparel fabric weavers, look-coes Into Canadian stocks these periled us in the past, and could.

days rather than into American destroy

the future. ing ahead, counted on the

United PreSE. market. developing greater activity and more atability before long, Hopes for im- provement were based on ex- pectations for the usual pickup in consumer buying during the Easter and spring season, plus Talks will be held with the government of indications that the volume of Australia to discuss the impact on Canadian ex-remie offerings of grey goods may show a sharp falling oft in porters of a recently-signed trade pact between the second quarter.

In cotton yarns, most Britain and Australia, the Finance Minister, Mr

continued to cover against im- Walter Harris, said Wednesday night in his bud-mediate needs, but brokers noted a slight improvement in for- ward commitments from several get speech.

stabllist with. steady hand-to-mouth buying

Have Trade Talks

With Australians

Ottawa, Mar, 17.

FABRIC WEAVERS

Bow of

user

"Further, the government has been receiving directions. Mercerised yard At Friday's close the list ruled 19 points

"Business loans of the leading many representations about Australian trade,” he lower to 20 points higher or off 95 cents to up $1 city banks which report weekly said. "Some of these come from Canadian ex-orders coming from weavers and a, bale, compared with the preceding week.

to the Federal Reserve in 1955 and 1950-since the first of the porters and relate to Australian import restric-kilters. Some course carded Buoyancy in

стор The certificated stocic rose to year have fallen by 881 million tions. deliveries WAN attributed to 10,243 bales, representing an compared with a 297 million in- reports that signups under the increase of 7,300 bales over the crease a year ago." soll bank programme has shown past week.

new

a substantial increase over the

2,200,000 acres reported up to

¿

"Others come from Canadlanı The Minister's brief statement producers, particularly of dairy on the pending trade talks.camu products and relate to special in a part of his speech dealing

with tho

Не preferential rates of duty.

customs tarist. noted that there

to do

yarn users were belleved ready some substantial cover- ing for the sound quarter to replenish depleted inventories,

In the synthetic market, nylen Other Outlets

sheets and the 80 denier taffetas In evaluating, the amount of

were still wanted for spot and lond signed up for the soll bank,

no nearby. Filament goods sold i March 1.

Some New York banks, it

"The present treaty arrange=| Hextensive now rounds of mul-for quantity for the scoond Buyers also drew encourage-crop experts reminded that con-

looking aroundments between our two uilateral tarift reductions in quarter, while spun rayons were ment from rumours the govern-sideration should be given to finds are oven

countries are 25 years old, it right," Agures probably for alternative outlets for their ment may revise the final loan the foot level in July to around the include most of the 750,000 to us if business demand docan't would be our hope to achieve a

pick up.

high level of trade on a bivad 33.74 cent average rate on the 1,000,000 acres gmowers usually

Bo far, however, there is dis- and equitable baals." current crop for middling inch underplant their allotments.

position on the part of the cotton.

Some quarters estimated Fedorul Reserve to further Dairy Produce approximately 15 million serca loosen the credit controls.

Liquidation

that

quiet-United Press

But some sort of “tariff read- justments," he said, could stem

from reports of the Canadian The Bank Of France

Statement

}

•

Paris, Mar 17.

state.

forlik board still being prepared. of the most fertile land may be Developments over the next few

Canadiary steet manufacturers, planted to cotton this spring weeks should give further clusa The talks with Australia will

pipe and Earlier in the week, traders The

Bamo Courets expected

to whether the controls will be cover the entire trado feld, Bar in the plate, tube,

specialting field, have 100% final producers to use liberal amounts cases or the serowa tunned even Harris said. He gave no indich-protested that the tariff against wtro preoccupiest with

tion when or where they will stills, Imports should

The Bank of Iránte be liquidation

March of fertilizer with the object of more than heretofore. In the delivery before its expiration on obtaining high yield per acre A lat will depend on how the be held, saying that Canada hat boosted. Canadian rubber foot- ment for the week ended March

#polifted the auto industry farms in the next

government uf Wednesday. The steady build again this year.

Auwalia that we wish to have wear makers have complained 7, renda as folloomas

about the many entry of the up in the carfincaled stock Raw coiton exports continued few wooka, United Press.

discussions with product from British and Hong-potka gold holdings

kong sources.

brought quidation in anticipato gain momentum, Clearances tion of increased benders to March 13 reached 5,074,172 elther against March or pro-bales compared with 987,470 | bably

succeeding May bales to the same time fest doliveriti.

Bession. There is little doubt,

that Tinai sale in March was statisticians posted at 3478 centa a pound, estimates soon total of 5

Delt

the

NAMESAKES

Laurel Ahaweng 41 Legend, Apolby Mythology, 5. Sun,

• Greeks, o 10 points $0.50 a bato- million bélés will be rekohad,

DANAS below the season's high of 35.43 compared with only 2.3 million Daphne (Daphne Laureola, of renta registered on Feb, 13, balas last person-United Press.) Grość Mythology).

some them."

trade

Canadian Firmers in kleint months have expressed concern over the possible importation of dairy products from Austrail", Past experience has been that with products avens shore cises ly on the Canadian market, than their domeitio counterparts

Tolst other, LEWIS

pe sorod

Tu Minister took note of the customs waise being planned by

Adranos to Blabillon- Mtion Fund six Burvyema nationally, man

"Canallats, trade

Total: buis diaks doubtedly be directed by these fans course developments, he, saki, rits too early to force what the cunt bounty and

affecte meor be United Prons.

ones.

As approved by the

Postmaster General, Hong Kong

AIR MAIL ENVELOPES

on vole at

South China Morning Post Ltd.

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