1957-06-03 — Page 9

THE CHINA MAIL, MONDAY, JUNE 3, 1957.

TRADE and COMMERCE SECTION

DISARMAMENT CAUSES STIR IN US BUSINESS

Reduction Of Spending DULL HOLIDAY

In Arms Would Mean Lower Taxes

New York, June 1.

The sudden and perhaps unjustified surge of hope in Washington and London that Soviet Russia and the Western nations may be on the verge of at least limited disarmament agreements caused some stir in U.S. business circles this past week.

With the business and market week shortened by Thursday's Memorial Day holiday and the economy showing no significant trends in either direction, the financial community took a sharp look at the possible effects of any easing of the "cold war.'

Pointing out that the growing, accounts for only about 19 per cost of armaments is one of the ent of present economic activity

The de ruuse for the current interest in the United States..

tence budget itself is less than datmament, US. News and

that, being below 40 billen a World Report commented:

year while gross natiera! pro- duct is above 400 billion, but substatial portions of the rest of the budget are related to de- jence pretty closely.

"Mray matters are rowing weary el spending {U much money on arms, and are becom- Ing Increasingly anxious to cut that cust. In the US, for ex- ample, you see a strong move- ment in Congress to reduce the defence budget, there are signs, that fussia also is feeling the pinch."

Adjustment

"The present impoci also may be greater than 10 per cent in the industries most directly especially affected, including the metal and metal working Ilustrien, while it may be con siderably lens hun 10 per cent in consumer goods. Food mid Analysing the business reper- clothing must still be supplied bizame they of my reduction of to soldiers after cussions government spending en orma- civilians, but a eut in the pro- ment that may be achieved will rurement of Jet planes might not immediately be gradual,

reonomic be offset by any our

substitution

de- of system will have plenty of Ume available

adjus! lo them. And that mand...

Disarmament of any sabatout- such an adjustment ought to be quite easy is apparent from the tial amount would mean reduced

fact that the total defence effort¦ spending; the nation and Con-

HEAVY SELLING OF GILT-EDGED SHARES ON LONDON MARKET

London, June 2. Weekly markets;, chief victim of the stock market this past week, was British government stocks, heavily sold on Friday.

the

WEEK ON WALL STREET

By ELMER WALZER ·

New York, June 2. Stocks reached new highs for 1957 at the close of the first five months on the basis of the Standard & Poors indexes.

Both the Standard iudex of 425 industrials and its composite of 500 stocks closed the week on Friday at their highest levels since last Nov. 5.

That

HONGKONG

STOCK EXCHANGE

Our Own Correspondent Business done on the Hong- kong

this Stock Exchango morning amounted to approxi mately $500,000. Noon quota. tions and the morning's transac

tions;

Shares

BANKS

Buyere Soilers

Sales

COTTON FUTURES CLOSE ON LOWER

GROUND IN NY

By WILLIAM T. PLUNKETT

New York, June 2. Cotton futures this past week odged up to new seasonal highs, then reversed the trend to close on lower ground for the first

time in five weeks.

1835 1650 20€ 1040 At Friday's close the list ruled 10 to 22 points 7.45 7800 1.40-50 cents to 1.10 a bale-lower than the preceding

1.40

HKC Bank INSURANCES Union Wheelock DOCKS, ETC. K. Whart Dock Provident 1930 19.6 LAND. ETC. HK Hotel 18% 14.20 4500 HK Land..

But the blueat of the blue The Standard & Poors 500- chips which make up the Dow-stock Index closed at 47,43, up Jones averages did little Jess 0.70 paint on the week, than nothing at all The Dow works out to a gain of $3,300,- Jone composite of 65 stocks 000,000 in value of all listed 30 Industrials, 20 ralls and 15 shares and is only 2.29 points utluties closed with a los of or 10 billions under the record 4-100ths point, the sinollest high set last Aug 2.

since April 20, 1956 The market coded the Arst gress in their present mood change

Avo month of 1067 higher would insist on it. Lower taxes when it was the same.

During the With needs for would follow.

It was a dull holiday week, except for rails,

four days by Memorial month of May industrials were civilian guoda no longer urgent, cut to Extra money thus left ki the Day. Daily average sales rell up and utfitles were strong but C. Ligtit hands of the people would not to 2,160,112 shares, against ralis declined. Ulities are fat be spat. Some of it 2,335,807 shares in the previous ahead from a year ago and in- only

be saved, and at first week and practically the same-dustrials show a 25-point rie would sight, under come

It was but ralls are sharply lower. economiris 2,100,855-a year ago, teaching, the result might the smallest dally average total be regarded as foreshadowing since the week ending April reduced economic activity.

Need Now

new

་

18

INDUSTRIALS

Ercirle

[R)

.107

100

30 0345

18.50 10.00

145 150

1.470 1.574

week.

Technical repsons, and ad- ministration proposals to cul, or

discard, cotton price supports, RHODESIAN

300 er 33.7 plus diapponding quietness in

1375 140 1440 # 130

1.10 150 20000 1

(Rts) 13.20

23 1500 22.96

Maeng E... 10 10.20 Telephone INDUSTRIALS

00044 23

600.19.10

the dry goods trade, al

Com~

bined to put prices on the de-. the last half of a tensive Lix holiday-shortened week.

COPPER

Buoyancy reflected persistent RECOVERS

rides, floods and high winds over

a large area of the southwest, with the resultant increased fears of a seriously delayed crop 1000 419

"ön ke 13.50 | start in that area.

J

2500 6 2714

13 508 6 33

Humphreys Realty

AUBÓER

Amalg

TruNE

ngale

UTILITIES

Trom

Yaumati

22.00

103 10 18.00 10.10

30 3012

รา

Declining tendencies earlier in the week were attributed to the conditions, technical approach of the holiday and the fact that

prices had carried very high in sections.

STORES, ETC.

Dairy Waison

Lane, C.

14.TD 14.09 11.20 12 1000

28

Emporium

0.20

Kwong 6. 11. 181

been many

COTTONS

Textile

4.70

2000

Nanyang

MISCELLANEOUS Trading lightened on declines Ch. Ent.

INVESTMENTS Yinmetze factor

which heartened and pleked up on recoveries, a bullish elencart,

2.45

... 20.30

6.25 4.478

5,00

Prices of industrials fell shurply on Monday-widest "Ifowever, added savings are decline since Feb. 11, the day what the finencial the market made its 1957 lows. exnetly peris generally agree is needed Thoy dipped again on Tuesday. capital is and came back sharply-best now. Demand for exceeding the supply of

Thus savings.

disarmament gain since Feb. 15-on Wednes.

again day. They rone

a might have the consequence of

TING

in- Dow-Jones Friday. making it easier to borrow, In

closed the dustrial average this manner it might not

only work

at 504.93 up 0.01 point, cut kiterest rates but also Rails closed the week at 145.55 stimulate some capital spending of 0.31. Ulllilies were off 0.33 now being held back. If the at 74.3. houding industry is right in its current claims that lack of mortgage money is holding down construction of new homes, in- creased sayings would stimulate that activity."

All wishful thinking, perhaps, but it served, at least, to de- monstrate how far ahead the thinking of business mon ranges these days and how peace, ay well as wor, poses adjustment problems.

commentators appraisers

continued their at-

things to come this year.

Government economists inter- viewent by US, News and World predicted continually Report, ring business livity through

out the current year, with

Teaching 435 billions

VERY HIGH

Cement

Amoy Can

the Allied

The not changes meant little

the of

week clase at tho because of the wide fluctuations. example ranged Arada, for from a low of 132 to a high vi 140% and closed the week at 133 % up %.

US COTTON gained 2 points or more.

the the

GOODS REVIEW

gross product-total spending arby needs.

compared with 412.4 billions for 1956.

Weakness

ST

Seaboard Oil nelica 5% points and a long list of other olls The dru, led by Schering up and Norwich up 4 %, turned in

better much

weekly performance,

D

than 2 each in

Corning

chemicals.

and one

CUSHIONED

London, June 2: Sagging copper prices on the London metal cr. change stondied last week- end with the news from A private survey Indicating the Northern Rhodesia that smallest acreage this year in 19 the Rhodesian Selection years and lessening chances for 11.00 Cretment of any price support Trust, that country's big- producer, pession, rest

Posal would cut back produc. for a higher loen ravetion by 10 per cent from ' 4.70 this your was a contributing Juna 1.

EXPANSION IN OIL INDUSTRY

Folkestone, June 2. The oil industry will have to pour £40 billion into exploration, new wells and now tankers over

years to next ten Europe's needs, Olin spokesman said today,

the

the fill ди oil

210W

30

at this legislation cushioned the reactions. bilities

factor on the upside.

At mid-May, cotton,

farmers

copper

At the opening of the mariect

intended to plant only 14,110,000 inut Saturday the spot price in neres, a private survey discloset. London rose to £236 1/8 R

ton and three months This would be 18.1 per cent

quoted at £297 3/8. under last year.

would

While a smaller crop be indicated on that basis, the SURVEY WETKIsed this carmot be taken for granted since farmers are using much more fertiliser per ecru than last year and soll moisture conditions are greatly Improved.

War

The overnight report fırın. Salisbury, Rudesta, announced that the two main product.m centres of the R. S. T. group,

would be cut 10 per cent-about 10,000 tona enqually, This is barely one per cent of the world production but it indicates the determination of one of the With normal abandonment, seven major producers: of the statisticians figured the estimate world to bolster the falling price suggested a crop of 10,000,000 of the metal, bales, toood on the average Ave- year field, or up to 11,700,000 bales on the basis of last year's yield per acre.

CONFUSION

Mono confusion

inch potion,

and

ox

comTM

in London said that even with estimated production would

Increase Of Crude Oil

NO CUT BACK A spokesman for the Anglo- American STEELS

group

copper mining compares, which pro duces nearly half of Norther New York, June 2. Steals did practically nothing

Rhodesla's output, announced New business in cotton with U. S. Steel unchanged and

Bethlehem off 1⁄2 point.

developed simultaneously that his Meanwhile, Ananelu) analysts grey goods materialised at Mathieson and Eastman gained H, Cunliffe, General Manager over the outlook for farm-price panies did not plan any cut

and British | support legislation At of the Shell-Mex

this back and government less than a routine pace in more

The move by the Rhodesian Glass Petroleum Limited oll empire's semion. Some quarters believed

follows recent tempts to predict to shape of this holiday-shortened week. 20-point gainer last week-lost industrial fucks division, said the any changes which may be made Selection Trust

Sporadic buying spurts

3 points, Douglas was down British Government's estimates eventually would not become cut-backs by American pro- developed in a few

ducers, notably Philips, Dodge wide print on the week in the air-

of how much oil will be needed (effective before the 1039 crop. broadcloths and

Line numbers,

Atlantic CODEL crafts.

In ten years time may

Copper circles prove Agriculture Secretary Mrand Anaconda, waterproofing duck fabrics, but stood out in the rails with

"unduly modest,"

Benson expressed hopes Con- elsewhere buyers reverted to gain of 23% points. On Thursday a Conservative member of the

In order to achieve the pro-gress will give him power to set these cut backs it recent hand-to-mouth Of the 1,388 issues traded, House of Commons asked the Government what

lost and 130 spective expansion in world uit supports between zero and that world policy, covering for quick end 521 Fained 677

A support still exceed current consumption per cent of parity. held unchanged. There were output, the industry "probably

per cent of parity by about 150,000 tons annually. it proposed to do to protect the British public's

FAILURE

102 new highs for the year and will have to Invest over the neect floor at 60

ten years £40 billion In would be sailsfactory, although United Press, investments in government stocks. He noted that

120 new lowa

he preferred unlimited discretion. Mill agents expressed 15-

The mid-May parity price re- the decline thus far this year had been so heavy

The actives included seven oil exploration, new wells, appointment over failure of the

alterarts and dankern, new refineries and

mained of 37.08 cents à pound, buying boom of two weeks ago) issues, 2 each that great institutions, like Lloyds and

Statisticions cach in the on," he sait.

calculated that at to develop any follow-through.aleels,

PREPARED motor Church of England, had now switched part of

felt chemical, roll, glass and majority re- However. 1 The magazine, however,

"That can only be achieved by 27 per cent of parity, and allow- turnover Getty their investments from gilts to industrial shares.

Oil led in garded the government predie-customer inventories have been groups,

the oil companies retaining by ing 350 points premium over "reasonable

provided "excess worked down to a Likas

part of their middling ach cotton this year containing

for the greater level" and that they must come with General Dynamics second,

Jersey cummings and ploughing it back would be around 32.54 coats a The government's reply was of 3/9. Central Mining, the optimism," pointing out:

back to the market shortly for Olin Mathieson third, African controversial vague and fumbling. The City was Soulli

Standard fourth, and Bethlehem into the industry."

the National Cunliffe told gained 7/- apparently alarmed for Friday ngure,

A. and

"Weakness still persists in the new purchases.

Northern Pacific Industrial Predictions about when that Steel fifth. altuntion.

Federation of Ironmongers that which Herbert, saw héovy

the machine tool business

The was the lone rail to make the

"no economic catastrophe re- lowered Old Consols and War spretalists, led the whole sector production, on the whole, isn't will happen were varied

sulted from the Suez crisis be- rising... automobile sales are next couple of months will see active list-United Press. Loon by 10. shillings.

buyers roturn, some

cause the oil balustry was pre- selling, completely unexpected, In the foreign bond section rot yet showing any great in-the

1950. Appliance quarters feit. But others BCTEL

pared for t were strong

sales are lagging and appli- to think the change may come active, Dawes Loan

third makers

cutting "hear the end of the are ance assorted gained £2, the assented

A third colcrio felt Housing starts do quarter," production. £24.

Young Loan

non not provide any grounds for ex- a new buying movement could It could £11⁄2 and the the asserted rose wrongly.

pecting

upturn, any

Retail happen any time," the asserted nearly £3. In the trade, in the aggregate, is mot be triggered once consumers are suggested that

Japonese list Tokyo 5 percents showing much of a rise either, conviriced prices are far ahead at itself

rother

and Consumer spending, on the prevailing prices. some of the non-sented leaped £3 nonpluated by effects of its policy on monetary most of the other non-astenteds whole, continues to rise

Best showing in the print fabrica was made by the 45-inch

Washington, June 2 control" of

the country's rose 10/-United Press.

What's happening is that most 80 x 80 3.50 yard where buyers

The Tariff Commission recom- economy and was not yet ready

spot prices as of the gues in total spending pad higher

President now stem from government and supplies dwindled. The 40-inch mended today that

Import individual outlays.

130:00 3,65 yard broadcloth Eisenhower impose an

ceats a pound on firm foo of three relatively another number, but the basic 80-quare tung oil,

along with four-yard print, shootings, drills, twins and most industrial fabrics attracted a meagre buying interest.

"ROUTINE

selling

This with a rise of 10/9.

wiped out much of earlier in the week.

the gains Cermans

NONPLUSSED

Rightly reply

Kovernment

with

OT

was

suitable remedies.

This heavy foll leaves

the

on Friday

£ question mark over coming stock market week. Monday may sce the ROYCIN- ment stock broker buying

heavy.

Without that Friday the week would have setn

really 1

the

and

non-

AMERICAN STEEL MARKET

TURNED BETTER

crease

over

abcech, meny "For months signs indicate that business in and equip vestment in plant ment probably will not rise, and it may fall; government spend

will not rise so ing probably steepily; foreign trade balance is very likely to dip.

WTUS

3

Import Duty On Tung Oil

Tung oil currently is free of import duty,

that

the

The Commission found that in tung oil is being imported New York, June 2.

such quantities as to interfere encouraging recovery

The steel market took a slight

Yarn spinners eald business with the domestic price support buarket prices of the safest turn for

the better this past

was mostly routine with price

programme for tung nuts and Investment in the world. Even week with fewer order

can- "Ita difcult to see in there arm. Large-scale buying is tung oil. and some

after trendy how total spending congenerally expected until after the Friday selling War cellation or delays

70 recommended Loan closed with a net gain of improvement in the weak sheet climb as much as the govern- vacations, or around mid-July

three-cent fee be imposed in- think. Just as] when. 15 shilings compared with the and strip sectors, Iron Age said ment annlysts

manufacturers prepare definitely. The

President will previous week.

toxiny

likely is that the sidewise move-autumn ben. Most recent sales

take the recommendation under Another optimistic note, the ments now evident in produc- wero mado to tho knitting Leading industrials fluctuated

advisement-United Press. outerwear, steel trade pub-ion will develop, too, in total trade,

· underwear severely but closed with many authoritative

hoedory the spending."

and

manufacturer. moderate gains. The Financial lication maid, comes from

Fortune Magazine, however, Inculsating yarns were essier in Times index of industrial shares steel scrap trade where prices

willi closed last week at 202.9, fell have been firming consistently in commented: "It is now virtually line by Tuesday to 2004 and closed recent weeks and inventories in certain that the economic trend market. at 2032; it was presumably a better grades are being good week for swiftly moving up. professional operatora,

TOBACCOS

The magazine gald

built wi

the lower copper MEXICAN SUGAR

Burlap

PRODUCTION

Mexico City, June 2, Mexican sugar production has

of

pound

season.

against 32.74 cents this

Since the final loan rate will be determined on the July parity, May and June parity are followed with added interest. ----United Press.

changes

Price Wanted

Washington, June 2. The Independent Petroleum al America bust Association week-end called ton a 4-cent-am barrel increase in crude oil pricas in the wake of a # per bent wage raise being granted

oil lie in the The Bank Of England generally in the oil industry,

He pointed out that sevanI – Leaths of the free world's proven riccives of crude Middio East. "For that reason the Middle East must remain the major supply source for Britain's and Europe's oil for many yearS to come," he said,

Statement

Sterting 1,953,571,170

London, June 2. Bank of England statement Curtliffe said the oil com- for the week ended May 20% panits were giving "anxious at reads as follows: tention" to the question of tran-

He Notes in elreutation"... sporting Middle East ott

Public deposite said a proposed pipeline system Private deposits

70 million Govermanent securities to transport some tors a year of crude oil to the Other securities

Receipts Moditerranean seaboard would not replace "supplement and the full use of existing transport facilities."United PressD,

U.S. RAW COTTON

EXPORTS

The present average US. wholesale price is $3.17.

"Costs of producing oll, just Like costs in other businesses, can nat continue to go up while prices

Robert L. -President,

unchangok,"

remain

Wood Association srid. The IPAA TÓ-

10153,171 presents 12,000 domestic oil and $10.710,651 natural gas producers.

CONTRACTS

224,101,810

39.500 901 24,104,726

**United Press.

The all, chemical, emt atomic [85] workers union is currently sign-.

Ing contracts under which its 100,000 fold and refinery, work- )

The Bank Of Franceers are receiving an 18-cent-at-

Statement

Paris, June 2. New York, June 2.

The Bank of Frapor statement Raw cotton exports by for the wock

onded May 23, destination as reported in bales by the New York Cotton Ex-Foods as follows change for the 1907-18 season to May 28 were as follows:

Oricht

BCL638 3,300,430 363.675

·8,390,873 Samo period Isst year 1,727,AL

Britpl

Continent

Саляфа

Total for DESBON"

* excluding inters

United Press.

980,990 tons, the National Exchange Rates

Hard futures ruled quiet and be gently upward fór at

unchanged. lenat the rest of the year." And mostly scrap that the Wall Street Journal, armncre reflected strength in people are thinking in terms o niter polling 70 economists, raw, jube and conoten over the a late summer or autumn upturn bankore Hdustrialists and gov-need of rain in the jute-growing readied on all-time high in steal demand,

exxienst pulgas reported: The areas of India and Pakistan, Tobaccos Wote wealt with

Iron Age sold demand for nation's economy in the months In nw 'wool, Boston accounts Union of Su Prochicers an

expected noubrod last wock. British-American down 3/0 and automotive and appliances con-ahead is apt to stay or as even said the trade there

anonical Bald.40 mills) A spokesmNIA. ott a highs 2/-innen to leg. down Imperial

nearly

keel with no timurantic changes prica “tas rochadza Nuclear power remained in But some comfort

is being in either direction. The most fovel, even though, marne "ecom will connue operations during favour with C. A. Parsons saindiawn from the fact that steekikely prospect, there's any colons have been made and a most of June, and output is I continued to sell expected to be increased by Royralle 2/3. } prodization, in bolding up fairly change at all, hi that the pace fawxbet Ing. 1/9 and

up." goods at the old price level-some 20,000 to 30,000 aditional Unilever

excepitorially well without large orders from of business will speed Was

Uzalbenă Prem

190 United Frum. strong with galna over the week these big usem.-Unlied Press. United Prom.

Total gold holdinga Total other currencies Bight belanos abroad

IN EPU A

Advance to Stabilisa-

tlon

hour package wage incroise.

Ultimately more than 300,000 workers will benefit.

The IPAA spearheaded a suc- t cessful drive for increased crude priota hat year after the oil

workers won a 17-cent amy hotm France

raino. Crüde price booste ranged 301,204,302,428 from 20 to 36 centa a bizneă. 15,75.000.000 Changes of collusive, action to d 11,771,000,000 prices subiscquently were wired

in Congress.

で

Wood,auid in a statement that Total bills discounted 1,336,978,000,000 the current wage incresse w

Bank notes in. Cirau-

******** 3,000,200,000,000] Cast (où und natural gas pros CÜFTEDE BERDunia and

deposita

30 ABS 200,000 ducere - #100,000,000 £ YouT -United) Prosa,

Unted Pross

KARACHI TEA

THE

EXPORT

Karacht; Juna Z. Government today Fit allocated 30,000,000 pounds

tem for export during the period of April 1987, to March 11,

1988-Unliad Prosa,

But was done in the 390nd ints charge

U.S. dolis iper (1) motor at the following reles sterling note (per 41 Australian poems (por &15 indonesian rupiah (per 100) 22 REM dicat tree 100) Singapore (fitrails)

·NAMESAKES

Acewers: 3 Dutser 2 Captab 3. Trafford, 4 Headingley, & Re- Oval, 7. Bating, mo corda, G Ashes, 9 Lorda, 10 Boundaries, sitting, 12 Ground. 13 Test, 14 Autralia, in: Yorzatalyt Pavilion.

St Leonard Hatton.