1957-05-06 — Page 9

THE CHINA MAIL, MONDAY, MAY 6, 1957.

TRADE and COMMERCE SECTION

US BUSINESS IMMOBILE' WORLD TRADE

Suspended Between SIX-NATION Urgency In Buying

Boom And Decline

By JOHN MORKA

New York, May 5.

PACIFICA CONFERENCE

Rome, May 5, A leading Japanese

for a six-nation Pacific con- ference -to study the of East-Wist

U.S. business hung suspended between boom and decline last week with neither the predictions of the optimists businessman today called nor the fears of the pessimists being fully carried out.

It was મ situation which Fortune Magazine described as "remarkable equilibrium at a remarkably lofty level," another way of saying that the axiom "all that goes up must come down" ignores the fact that things can stand still.

this:

1

Business activity for the

The situation stacked up like estimated that demand during the second half of the years will barrels daily less be 473,000 than for the first half due to terminaion uf the

emergency export to Europe,

first four

months of this year has been less than most business men expected, but only slightly leas and there are no signs that

it will got worse,

2

ate down iv zero. Despite the

|

Itathlong reported 4lut Standard Oll first quarter pro- fts, helped by the European

diŕnounted emergency,

10 237

Inventories in most lines millios, equivalent to $1.20 per shule, compared with 205 non, $1.94 per share, in

cautious attitude v1

business

men, these stocks will have to | the first quarter of 1858.

indiratung

atta

be replenished, inevitable pickup in sales later

in the

year.

3. Capital outleys have not mercased at the rate planned for the year, but most business analysts believe Whe outlays have only been delayed and will materialise batere the and of the year.

4. Money is still tight but i likely to ease during the coming month because the demand by business for expansion credit is running about 5 billion behind what the inflation alarmists had predicted.

Mystic Revival

After a 10,000-mile (our of the U.S. during which

talked to 5,000 business men and Industrialists, the editor of the Journal of Comunerce re- ported last week:

Weak Demand

Meanwhile, heavy stockpiles of petroleum products in th United States and unexpectedly weak seruand for ships to move oil from the Mideast to Europe through the reopened Suez Canal dashed hopes of tunker owners for a record year.

Reflecting this condition, 15 Companks which had planned to bid a total of 16 large new tankers in American shipyards notified the U.S Maritime Ad- mamistration thul they abandoned the United Press.

HONGKONG

STOCK EXCHANGE

(From Our Correspondent) Business done on the Hong kong Stock Exchange this morning amounted to up- proximately $537,000. Noon quotations and the

morning's transactions:

Shaces

BANKS IUS M East Asia

INSURANCES

Buyer Mellers

Sales

1640 1005

248

1:00

11 905

7

760

7004

- DOCKS, ETC.

K. Winef

jQu

Union Lombard had SHIPPING programme..Wheelock

Weekly U.S.

Cotton Goods

"The chief impression on this trip was the complete absenÇO of any panic or even genuine fear of any immediately ahead In business; but likewise the absence of my expectation of an early resumption of a shnep uptrend, now that spring has cotton failed Lo bring about mystic revival.“

Automobile

to be one

Market

Dock

Provident

LAND, ETC.

"

UK Hotel

2000 16

1000 of 7.50

400 100

300 A 110

45 2900 45

1230 12% 2500 £2.40

18.10 15.40 FK Land 24.75 3514

Realty

(R) 10.30 Humphreys 10.40 10.00

1.40

1.50 14 1.00

RUBBER

Amalg Trant

UTILITIES Tram

21%

Star Ferry

New York, May 6. Worth Street sellers of grey goods and finished fabrics again re-

week of "pain- Youma sales continued ported

By

of the major spots | fully slow" business.

Con-x All

C. LM (0)

in the economic picture, with sumers operated strictly Elinic

both Fortune Magazine and the

Wall Street Journal predicting on a hand-to-mouth

135

102

12.30 18 24 20 29.45

hasia. Macao E. XD

All-in INDUSTRIALS

Я Telephone 2570 25.90

sales for the year would total Buying just enough to take about 6 million cars instead of care of immediate the million predicted by the industry.

But that still would be higher than the 5.0 million cars sold in

1956.

Home Building

requirements.

E

Cement Rope

13 10 analysis, STORES, ETC.

that Dairy

..... 14.00

1144 11.00

8.00

Opilmistle market still expressing confidence the cit-month-old famine of buying orders soon may be over, clung to the belief that depicted consumer inventories will bring a resumption. of activity in an Steel and home building are before the "fourth" celebration other four weeks, or certainly the other major activities cur- rently listed on the credit side in July. of the ledger. The Wall Street

4

the

But

hot

Watso Emporium

Nano ang

Entert

Kwong $ 15. 177 Textiles COTTONS

MISCELLANEOUS IIK Const INVESTMENTB Yanglaze

**

4.00 4.70 B.10

1739

6.30

4.43

4.50

question trade and the impact of proposed European

common market on non- member nations.

Industrials On London Market

D

EXPANSION TO

BE DISCUSSED

Rome, May 5,

Nearly 2,000 business leaders from 60 nations will gather in Naples on Monday for discussions which expert observers feel may have a tremendous impact on international trade patterns for decades/ to come.

By C. T. HALLINAN ·

London, May 5. Weekly markets: It can be safely The occasion is the biennial congress of the stated that the Conservative Government| International Chamber of Commerce. Delegates perspired slightly all week. It is pledged to will take up a wide variety of problems, all of rescue the country from inflation but the them aimed at expanding world trade and fostering international co-operation and economic stock market plainly showed that, in its

development. Keizo Shibusawa, leader of

opinion, inflation is still going strong. the 7-man Japanese delegation

Among the welter of subjects Everybody bought industrial shares from the to to the blennial meeting of the

be considered are the ex- conviction that their prices are going up and up; ploitation of atomic energy, the International Chamber Commerce, and an economically when they reach a satisfactory level the investor-potential repercussions of auto- Integrated Europe along lines of the

rket speculator can sell them at a handsome profit,mation, the colo that private and and a free trade area was Unless he is a professional stock exchange in building up underdeveloped "full of question marks" which operator, he pays no income tax or surtax on his rations.

of

common market

could seriously threaten the ex-

and

profits.

port markets

of Japan other nations also.

Accordingly,

in Hente a certain urgency he suggested a meeting di business loaders from

hls buying. Japan, Canada,

The Financial Times' index of United States, leading Industrials

closed ot the Philippines, Austraila and New Zealand to explore mutusi The rise this past week was

204.6, highest since August 1955. trade problems.

3 per cent, a fadily terrifying per- centage for f trading days.

nonal Chamber

or

he

"So far all the talk has been about what's good for the mem¬ bers of the common market and the European free market," fold the United Press, however, 2000 @ 21.00 || nobody to talk about its effect

921.70

on other nations." 1000 21.60

100 25.70 "Although it is perhaps too

early to gauge just how tommon market

will develop, 500 15.40 we think it has too many ques- 1100 u 20.30

but for other

7

MILD RECESSION

WEEKLY COTTON

REVIEW

An

governments caplial might play

allmate

trado

Hazards

ABSURDNERS

the

o

10

the

no COTTONA

AMERICAN

STEEL INDUSTRY

New York, May B. America's steel industry in the first quarter of 1957 rang up.now records in sales and earnings for any similar period, and officinis are optimistic about the year as a whole, a United Press survey showed today.

Each of the top eight con- panies had higher volume, end five out of the eight companies had higher coralings. Sales reflected both more business and the $8.50 a ton price incrente that went into offoot last August.

improved

The eight companies included the survey-U. S. Steel Corp.,

Bethlehem Steel Corp., Republic Sleet

Corp., Jones & Laughlin

The spotlight, however, twill be on the recently-signed agree- ment to form a six-nation com- mon market and proposals to link with it a 17-nation. Euro-

trade poun free

drea which offer

European members Blubwawa, Chainuan of the

massive market of 200 millions Japanese National Committee of the International Chamber

The common market agree- Commerce,

meni-still, to be ratlled by Is here for the

Sales of the eight largest stoel But these loading industriale

member Naples Congress

nations would producers, which turn out five of of the Inter-

include a number whose annual By WILLIAM T. PLUNKETT

prices Grad which gelb

overy seven tons produced in the tariff walls reports have already shown net

progressively over nation, ran more then 200 million under way formally" on Mon- day:

New York, May 5. earnings falling

between only a few

15 years About

businessmen 2,000

Belgium, higher in the first quarter of 1957 were saying from 50

West Germany, Cotton futures last week France,

the than a year ago and net income weeks ago people nations

lo are expected

but Netherlands, Italy and Luxe was nearly 20 million higher, the take part in the week-long de mournfully that the "boom is fluctuated narrowly

levelling off" which implied that showed

| burg, comprising a market of survey indicated. overtone of 100 milions. liberations aimed at promoting the near future may see at least economic co-operation and the mild beginning

of a mild steadiness most of the time world trade.

in one of the quietest Shibusawa was pointedly cri-recession. tical of the common market plan Shares of Turner and Newall trading periods of the which would cut tariff barriers rose 8 ahillings last week

and year.' and duties

those of Guest Keen between Belgium,

and Nettle

Prices at Friday's close ruled Despite the Netherlands, Italy, France, folds, heavy engineering, gained West Gennan and Luxemburg

shillings, and a distinguished up one to 19 points, or 5 to 95 contrary, some business groups Earnings mirrored cost reduction 200334 progressively over a period

list rose 6 shillings or more,--| conte a bale higher thum of

the in the United States, Japan, factors Buch ns Plessey, the electrical manufac-preceding week. 040 10.30 15

Ger- *Fmncc, Canada, West years.

turers, Unilever, Furness Withy

many, among others, ace poten-machinery. and Tanganyika Concessions, Limited operations were given | tial hazards" to traditional ox- Leader of the whole parade over mainly to adjustments in ports markpots in an integrated was, Hudsons Boy, up 12 ghill the nearby May delivery, anti-Europa. The Goeling is shared

not so much the fur- cipating its expiration ings

in the by many that there 19 as the digger voon hour on May 14. Open certainty that. bearing company for Canadian olí and tanium. May contracts at the weekend market will not ultimately turn Steel Corp., Youngstown Sheet & bloc with Tube, Co. National Steel Corp., Oils

into all approximated 85,000 balos.

a protectionist were conspicuous week. Royal Dutch was in

resultant tarif walls against im- Armco Stool Corp. and Inland The October, п demand, rising 12 shillings

1958, delivery ports from non-member nations. Steel Corp. had total sales of

|$3,171,752,408. pence to its 1957 penis of 10 covered a relatively wider range sterling; British

Petroleum traders pondered the possi

This volume compared with Burmah and the two Canadian bilties for a change next year grounds also: An integrated

$2,356,799,805 n the correspond- mean 0 art 7in the form price support pro-Europe would eagles rose between

ing 1956 quarter when furnaces efficient Europe. A mass pro- shillings while Shell Transport gramme. after going ex-dividend, gained 4 shillings.

lected market would undoubt-were carrying over some of the Some quarters felt the ad- ediy

with. It lower costs red hot momentum-from the 1955 bring ministration might press for Suez Canat gained one

of production, more efficient die-b0cm and loventories were being

built up. programme of lower price suptribution patterns, more sterling to 40%.

parte, plus some relaxation

phasis on automation. As such, Total act income of the eight production controls. Advocates an TAX EXEMPTION

could companies amounted to $283,091,- integrated Europe, "We would lice therefore

of a change looking toward a conceivably challenge Japan's 818 compared with $245,710,004 o for a meeting of the six nations

Forelen bonds were erratie in direction would

freer market felt a move in that markets in South America and your ago.-United Press. trading principally in the Far their moods. Germans had an

enable cotton | Southeast Asia and seriously im- East to sit down and talk over idle week but the Dawes and

recapture markets lost to pair her exports to Europe, But common problems. We could ex-Young Loans, both assented and rayon and other substitutes, and the same token, same American plore the possible effects of the non-spented, lost £1; several at the same time prevent further | businesmen see an integrated comman market

our assented bonds

surplus accumulations and moved up

in Europe, that the Naples Con-

Answers:- Mozic, 2. Fore- économies and thus minimise down 10/-, Greek bonds gained crease its competitive position gress has especial significance,

It its Impact.--United Press,

4. Prophecies, 6 the in world markets.

will £1 as did also several of

offer

international cast, 3 Witch, business East Europeans.

leaders their first Bellet, 6 Yorkshire, 7 Cavon, 8 However,

were chance for a face-to-face Charms, Incantors, 10 Spell, Dollar stocks were

marked hesitant about following the exchange of ideas and some 11 Petrified, 12 Powers, 18 higher to keep in step with Wall rallies too far because of un-economic soul-searching

with Knowledge. Street's

'woman Mother Shipton (Wiso mium which they enjoy onsed al reaction toward proposals for United Press, from 84 per cent to 8 per lower price supports for raw cent.

The one thing which baffled

Because of the uncertainties, the market was to find out just futures trading slowed, down which shares of "oversees trad-considerably. On Thursday, the Ing companies" would quality New York for the total tax exemption ac- volume totalled corded to them on their over- bales. This was the seos pronta.

tor volume The

002

the

29.20 tion marks not only for Japon other nations 19 well. 200 3.20 While the basic idea and nim of the common market is good, 50t we are not sure as to what form it will eventually take so as to give up some serious doubts about its ultimate effect on our 1937 al 14.00 1rade. 3203 - 11.00

1000 14.00

on

great

half

or

buyers

a

NO

Doubts are held

on other

a more

*m-

NAMESAKES

advance but the pre-certainty about the congression-their international counterparts. RECORD EARNINGS

probing BY OILS SEND

Con-

MARKET HIGHER

By ELMER WALZER

New York, May 5.

thi

on

White Paper issued subject was that this over- sens trading would have to be handed over by the parent com

a newly constructed subsidiary company whose pro- dis, handed over to the parent United taxation, United

Less confident and more con- Journal said steet producers servative observers, disappointed Allied generally belleve operations will by failure of many recent

pre drift lower

in the second and diclions of buying revival to third quarters, then recover in be fulfilled, were a little more the final thres months of the vague about "calling the turn", year, The May issue of the na- boing satisfied with the vague Scien Business Magazine observation that "come predicted

government moves weather, there will be a dango," toward credit

casing in

consumers WCDM mortgage market would have impressed. They kept

stimulating effect on home the market looking for building.

cessions on third and fourth

deliveries. Desplic the slump in steet quarter

Manufac operations generally, the U.S. turers mostly turned down low Steel Corp, reported its sales bids, contending extension of of $1,100,5 million for the first the mill curtailment programme quarter of this year were the in recent weeks has been tib- Fighest of any first quarter 10 sorbing surplus stocks and that History and its camnings of buyers will be surprised at the $115,478,100, equivalent to $2.03 size of available stocks "when- per common share, the highest ever they decide to begin cover- Oil issues led the stock market higher during of any quarter ever, Directors ing against futuro meda." declared the usual quarterly Weavers insisted prices are on the past week. Buying in the group was inspired dividend of 75 cents a share. "rock bottom" and that further by record earnings for several of the companies Kingdom

company, could escape and favourable predictions for the future by Press. Buyers admitted the supply of some of the oil company executives. ed to have brought an abrupt second-hand prints and carded end of a boom for the owners broadcloths are getting scareer Steels again moved higher, ! Brokers said the market and operators of tank ships. and that converter inventories Chemicals had a good week behaved very well. It ran into

At the peak of the Suez crisis.

several at new highs, considerable resistance when U.S. imports of crude all feliave been whittled down to a white

vory slender operating margin. | Rails had a few good sessions, the, Industrial average got into to about 800,000 barrels daily.

However, other quarter said Autos wire irregular and tyres 500-territory and fail back in Now they are running more than

That 900,000 barrels per day. In the they heard of "quiet and con- higher.

line with expectations, moan lime, exports have fallen dential down" taking place on

An even 1,400 imues appeared was the one big obstacle as the to about 350,000 barrels daily print cloths for third and fourth

week onstech. the tape and of these 708 from the 000,000 barrels daily quarter at concessions of to on

✯ cent under the market from [advanced "walle 031 doclined mark reathed in November and mills anxious to "fatten up the and 163 held unchanced.

order book.”

total of 103 made new highs Brokers in heavyweight, in-while 85 made new lawa, dustrial fabrics reported in fole yardage of second-hande goods

Resumption of traffic through concessions are the Bucz raised an oti imports question." Froblem for the U.S. and seem-

March,

Petroleum

out of the

As a result, President Eisen-moved at concessions last week, hower announced on invoetiga-Most of the buying was for spot tion of all Imports and M. J. requirements, with Rathbone, President

tho

casincas

IRREGULAR

cotton.

Colton

Exchange only 15,000 smallest

a full-five-hour In the records

of the

the

The

of Homy VIII's time),

A NEW COMPANY?

commodity exchange administra- From the word "GO". tion dating back to 1997. previous low-record was 18,000 established on Aut. 2

The mid-April

parity price on cotton for middling inch WAR 37.00 cents a pound, up 13 points from the previous month.

Statisticians figured this in

The Bank Of France dicated a possible average loan

Statement

do

basis of

he

ond The

ταμε

for the now crop of 28.52 cents a pound 3% incly and 32 on cente middling one inch. These would

compare with the inberl

rated Paris, May 5.

cided on the The Bank of France state- | CIO ment for the wook ended April January perity, of 28.10

31.02 cents, respectively. 26, reads as follows:

Franc Joan Tala for the 1957-58 'crop, The market experts said if Total gold holdings 301,304,308,428 | will, be determined anally on

other CUT

basis of tho the market can do through 500 Total

the mid-July rencier LLOY

10,700 €35,951 | on volume it is just possible a Sight balance absord

parity-United Press. try will be made to beat Advancy to Stabilsa

in EPU the rooord high of 621.05, pet 04

on und Bank notes. Ens cir»

vulation

i

1

· 11,771,000,000

5,900,000,000

and

282,797,118.107

Statement

London, May 5, The Book of Kaslode, siales ment for the week etled May 1, reads, as follows:

April 6, 1988. There were not Total bil discount 140/The Bank Of England Salem fell below the previous many who held thia opinion,

with

majority lots week with the daily average at however,

deposits.... anticipating a full while, the of the booked decertbeth as "Insignifl-2,408,647 Whares ngainst 2,683,- market consolidates ita position. Standard Of Company

|540 in the previous week, (New cant"

Just now

„It is pointed; 'out situation The cotton yar urged the pretroleum Jersey)

The ontlet was higher on the corporatione industry to voluntarily, restrict featured further price

have made Exchange Rates oll imports to. avold possible in cardod counts, Reaction the weet, higher, for the month their reports for the government curbe.

ranged up to a cent a pound, of April and regular for the fligi quenter, the Sume Canet is open

Mullahi wan dan in the lost cut made four months of the year,

exchange or the altokilom in the Middle uponesas The Independent Petroleum marking, the aft

At the clore on Friday, the Task has returned to something morning at lowing relas Association predicted that oil since last autuma. The action domand In

that Dow Jones Industrial www key normal concalone. Hence, tho V.9. for [came in face of reporia domestic use and expoft for the garded knitting yard quotations stood at 69754 Up-9041, sallam in males, sgimen, in ljutio tabi Audralen peteng per fail your of 1957. would he 5.7 have been displaying a firmer. 12024

and utility for a marked rise, is the offing, Indonesite rupialis per 100)

Blarak kook par.199) per cent above. 1956, but lone---United Fres,

178.87 xip 9.0

market

this

Notes im niedalekéója

Publjo depoeste

Perente dubok

Daverman Mendurtizi

Dthey securites

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