1957-06-24 — Page 9

Page

'THE CHINA MAIL, MONDAY, JUNE 24, 1957.

TRADE and COMMERCE SECTION

Page

MONEY RATES TO BE HIKED? GREYS LANGUISH

Talk Of Grave WOOL PRICES MUST COME DOWN OR FOREIGN

Financial Crisis In America

By JOHN MORKA

SYNTHETICS WILL GAIN FOOTHOLD

-Boston Wool Dealer

By FRANK DONOGHUE

Boston, June 23. Wool prices in the world market must come down if American toxtile manufacturers are going to stave off a new foothold by synthetics.

That is the view of a Boston wool dealer with close interests in the foreign and domestic wool fields. He is also a manufacturer and a member of a family that has been in this city's wool business since the 1890s,

Government,

Now York, June 23. Higher interest rates and costs of borrowing in the federal rediscount rates followed by a hike in the commercial paper rato, put the stock market down from the new peak last week.

Reflecting generally short-term money I lo spid that new according to another oberver. There should be some deter-

trade conditions and the tight money situation which cal

agreements, Prices cannut go down now be-mination on this question he- has now become a major political issue in the Corely promulgated by the US cause there is a shortage of wool; cause of our possible inability to did not go for consumption fell 13 per cent iri | import im a time of crisis," "one

But the dealer said, United States, the US Treasury's offering ofcouth in protecting American the first half of 1957.

Washington's prime concern in textiles. The principal threat is outlook a bright production- $1,600,000,000 in 91-day bills was discounted at an from Japan.

wise.

the past has been the woot pro- While the

Australia now ship about ducer. Lately, in view of the average rate of 3.404 per cent, highest in 24

of wool each inexpensive foreign Imporis, hold Japan and other foreign 4.500.000 bales years,

countries to specifle cloth ship-yor. Producers there my their Federal attention has turned to ments, there is nothing in the output will be increased to the textile manufacturer, agreement that prevents those million bales annually williin However, wool dealers would eruntries from shipping in wool the next five years. This long-beneft from Federal interest in

up is the form of, zay, yan, other rang view combined with io stirring

operation dealers in the nation's largest possibility of further restrictive additional mills in the interest wool Import elty sald.

In action

Washington gives of

Where national, defence, Boston interests some ray of once they

with dealt

10 hope.

customers there now.. one. Over 30 per cent of the nation's textile mills have gone out of business since 1940,

Meanwhile, commercial paper } general feeling to the bank- dealem announced their second but cu'erit that Instead of

of a point

iri Bike

three any easing in the credit stream weeks to push yjete rules to 3% It was more likely that the be turned per cent, highest le many years, credit screws might

Agure that The hike was prompted by even lighter, Some desire to increase demand and to this nigai tai, place, sometime meet the competition of corpor 11 Augura

September- ate issues and other fixed Income United Press, equities offering better yields.

a

Against his background of zooming interest rales, specula- tion mounted in US financial cir- cles that a hike in the rediscount rate-the rate charged by the Federal Reserve Beard on loans to member banks might be ad- vanced for this possibility. Many bankers and credit controllers of the US economy generally like to keep the discount rale in line with

private Bancing. Rarely in the past has the pri- vate money market, as reflected by prevailing rates on commer- cial paper, Treasury bills, bank- ers' acceptances, bren so

the rediscount rate

above

long periods.

Considering

high for

NEW YORK RAW COTTON EXPORTS

new

restrictions

Cheap Labour

Japan and other "cheap" latrour countries thus keep the world price of wool high, they

Lasist.

"They can outbid us by 10 per cent, then pay their help about 90 cents a day and still ship to This country and under-sell us, said one dealer.

Wool

Japan's influence in keeping world wool prices in the upper inckels is apparently on the wine. Dealers in the wool dis- tict here have received the word that Japan has apparently over- extended itself in the textile business.

New York, June 23.

Because the United States Raw ection exports. by de-

dealers fear also that must import half of its wool, the stination

the American consumers may get cost of that product is determin- as reported by New York Cotton Exchange for user to the synthetics to jed almost wholly by world the 1957-58 scuson in

prices. Most dealers June 18 greater extent, thus causing wool market

Synthetic therefore look to Washington for were as follows:

products to suffer, Britain

Gealers also have the advantage help. Conurent

of being able 10 keep their Orient

markut on an even keel with- Cul wide price fluctuations.

Chando

007.099 3,83204

... 2,404227 401,019

Total for Bears ... 7,035,333 Same period last year 1.096,100 hates

exelding Inter

-United Press.

NAMESAKES

Dealers have already noted u Icturn to wool among some

Indirectly

That help will come indirectly as part of the U.S. national de- tence requirements, many manufacturers who once turned believe. It may take a year, tu synthetics either

through or two,

or more to get the necessity or on economic force. entire American textile picture Answers: Giselie, 2 Com- An example is in the higher-straightened out, they feel. pany, a Juliet, 4 Mime, 5 Move-priced automobile Beld. Manu- ment, # Aelion, 7 Music. Bacturers there are once agata Ballet, 9 Graeful, 10 Emotion, placing the stress on quallly, and that Pouettes,

are turning to wool. 12 Covini, Russians,

Wool prices the world over are in a danger zone at present, Galbin Ulanova.

There are even reports some Federal Reserve banks- suffering from Inflationary pres- sures have already asked the Federal Reserve Board for a now hike in the discount rate. The Federal Reserve Board, al- though secretive about its inan- ctal policies, is known to considering another boost in its rediscount rate. The Board has many tenes In the past pointed out that inflationary pressure were all potent in US economy.

Bankers generally think, how- ever that political considerations may dampen an enthusiasm for hike in the rediscount rate, despite the fact that the Boord

is an independent agency,

The Elsenhower administration

13

BRITAIN APPROACHING

CONVERTIBILITY

Doing Little

of

the

South African wool Imports are doing little to take production Ing. Although the product is Ane, similar to Texas wool, it comes too high to com- pole with domestle and govern- inent-stockpiled products.

makes good

When Australia on her promise to turn out six million bales a year, and when and if the U.S. Roverament clumps additional restrictions on cheap foreign imports, and when and if an emergency federnl ruling necessitates openlog up additional mills for national de fence, local interests will satisfied.

FIRMS IN US

AS FABRICS GAIN IN US

New York, June 23, Worth Street cotton goods traders this past week reported a more two-sided situation.

While interest in grey goods langulähed, new business in finished fabrics gained momentum for the third week in a row.

་

趄

Now York, June 23. Fortune Magazine today Manufacturers of workhept off the market during the issued a special supple-clothes, sportswear and general two-week vacation lay-off,

Spinnera also reported ment listing

the 100 lines of colton garments, in-

cluding women's apparel, re-vacation-pause" _in the demand largest foreign comm-

ynnis Some inquiries parted multiplying orders fol-for panies," along with itslowing the recent heavy Influx developed from the carpet and annual listing of sales and of buyers into the New York upholstery traders, but generally assets of the biggest US market. industrial concerns,

Almost all the firma listed in the copyrighted survey were

Yawala Iron European.

Listed in Steel of Japan was 82nd place, in terms of sales.

The "Big Ten were listed as follows:

1. Royal Dutch Shell

Britain-Holland

QUICKENED

the demand was blow with prices mixed. While some yarn sources said prices were Armer, others said pelling schedules on carded knitting numbers WITC senti-softer than most traders would

goods,

MIXED

Market analysts said and

ment in practically all sections admit, of the cotton exille market showed an Improved tone with

of grey the exception

Hard Abres was re-

were mixed. end the pause there

0 temporary bu-Burlop and hemp prices cased garded he

slightly in face of a slow-down in consumer buying, Sisal prices improved on small buying by consumers figuring prices may be on bottom after the decline of recent weeks,

2. Unilever-Britain-Holland tween-seasons situation. 3. Imperial Tobacco-Britain 4. Brush Petroleum-Britain G. Imperial Chemical-Bri-

lain

d. Nestle-Switzerland

7. Dunlop Rubber--Britalu 3. Mannesmann-Germany

9. Hawker-Siddeley~~~Britain 10, ried-Krupp-Germany

ADDITION

In addition to Yawata, European companies the following:

09. Fuji Iron and

Japan

Eight straight days of sizzling temperatures up to and above the 00-degree mark, quickened the movement of seasonal goods at the retall levels and brought

replacement call at the whole sale end. However wholesalers stocks were reported relatively "clean. of desirable merchandise" for immediate delivery.

now

Boston wool trade reports said sales of worsted yarn were at a virtual standstill during the week. Some mills were reported running out of old orders and that SDITIO shutdowns may develop unless there is a quisie Sporadic buying developed in turnabout in business, non- some grey goods fabrics, but wool, Australian prices

casier, while Included the sum total was disappointing markets held in

other foreign

New interest was stilled as Steci-weaving and finishing plents

prepared for the traditional July

In raw were

Man-made textiles reported a trong tone in grey goods with

71. Colonial Sugar Relining-vacalon shutdown. A few in-mills in a well sold-up position

Australia

dustrial heavy-weight fabrics,

79. Japan Steel Tube-Japan Involving 80. Broken Hill-Australia

02. Hitachi-Japan.

through the third quarter. Soun wide

wide on fabrics were reported in delits,

tight supply for quick delivery, and broken sheeting

twill,

-United Press. moved in fair, volume for spot, toward the Detroit mostly

Industry. Tobacco

a generally quiet

WITHDREW

US Cotton

Futures Faltered

90. De Beers--South Africa Flat of Italy was listed in automobile 17th place and SKF of Swe-cloths for surgical dressings also

co-featured den in 50th place.

The American list headed by market.

Standard Oil General Motors,

US Steel, (NJ), Ford Motor, and General Electric Ar

that order. Fortune said that despite

Despite the inactivity, milis They have already noted a the fact that the US "Industrial

firm attitude on their best slowly changing pattern of dress glans" had

year maintained a

and prices, pointing to the rise in "It may be necessary in the in Asia where wool is gaining in ever in 1956, their sales

Tuw colton, and administration interest of military security for preference. The deaters hope earnings performance was rela-

Lo battle the the Federal government to deter-

synthetics

to their assurance of a high government By WILLIAM T. PLUNKETT by fively poor compared mine how many textile mills emphasising the superior quality smaller competitors. United jsupport price for new erop raw

Dalton, Same private should be in operation here. of their product.-United Press,

Egure the government price- prop might be hiked around $3 a bule dve, last year.

Some weavers

HONGKONG

STOCK

STAGE SAYS IMF REPORT EXCHANGE

Washington, June 23.

Britain and a number of other countries just last week is facing a heavy were reported by the International Monetary unrrage of criticisnt for its got Fund today to be gradually approaching the posi- tion where they could join a general move towards full currency convertibility,

"Japan some 1

and

Our Own Correspondent

Business done on the Hong-

kong Stock Exchange this moming amounted to proximately $002,000. Noon quotations and the morning's transections:

Buyers Sellers

pay

- Skates BANKS

Union

INBURANCES

Lombard

money policy in the biggest probe of US financial policies in over 50 years. The Democratic- dominated Senate Finance Com- mittee in effcet charged that the

"In Western Europe, government's funding policies,

Argentina so liberalised achieved an appreciable amount tight money

are countries have programme seriously endangering the trace and payments that it of liberalisation in their nation's economy which Senator appears they could be able,ments systems by substituting IK Bank.. Humphrey of Minnesola suidĮ without any very signifient transferable payments arrange- leading the country "into readjustment, to participate in a ments for Gilateral arrange-

10 eslublish the gravest financial crisis" since general move

ments," it added. the depression years of the regime of fail convertibility" the In other countries also soING SHIPPING early 1930s.

said in its All Annual progress was achieved, but the Wheelnek Report Dis exchange restrictions. direction of developments was

not so clearly delined. On the DOCKS. ETC.

Whant "Gradually approaching this other hand, a few countries met Dock position are the United King- internal and external difficulties: Provident dom and u number of other by intensifying their exchange LAND, ETC. Western European and sterling restrictions.--Reuter.

TIR, Land

"Was

Lured Away

Meanwhile powerfful banking groups complain that money is tighter than ever and insist that déposits are being lured

away by more attractive yields else

Fund

a

arca countries, in which stabi unitary exchange tales pre- dominate but restrictions are

birt still

whert. Some top-grade carpor applied to limit esitain imports The Bank Of England

ate issues are yielding in excess with

lessoning #

of 44 per cent, Government | significant · distinction between long-term bonds are also under | currencies

.of payment-

pressure price-wise as investors, particulary between dollars m nitracted by higher yields else other currencies," where, have been switching from

bonds to

the more lucrative

Statement

London, Jure 23. The Bank of England state- The Fund said it was able to ment for the week ended June

further progress 19, rends as follows:

equities as a hedge against in-report Ballon.

Bankers at the New York State Banitera Association this pist weelt 'report that money is tighter than ever with demand for credit continuing to rise. They insist that the prime ratesplie or a reduction in the in-

Sterling

22,250,000

HK Hotel

ន

Press.

Three-Weekly Account Gives London Shock

London, June 23.

sources

New York, June: 239.. Cotton futures faltered in mid-week, after rising to new seasonal highs, only to resume the upswing with added vigour at the week- end.

of premium type 80-squarts withdrew from the innket altogether, claiming current prices are not profitable and unless the altuation changes ufter vacation, looms may be 3 points lower switched to special and better- paying constructions,

At Friday's close the list ruled on spot July, and 15 to 41 points higher on Inter positions, or off 16 centa to up 2.05 a bale compared with the preceding week.

Some bag sheeting makers will close business for two Spot July lagged on the rise weeks and perhaps longer, as traders concentrated on even- depending on market conditions. Ing-up operations before first One source estimated that notice day on Monday. Open Dround 50,000,000 yards of

July contracts ut the week-end approximated 78,000 bales, traders estimated.

The Stock Exchange got a shock this past sheeting delits and twilly will be week when it learned that the three-weekly account which ended on Tuesday was one of the heaviest ever known in the history of the market; the clearing committee toiled all week trying to furnish each member-firm the list of transactions 100 1035 for which it was finally responsible but when the market closed on Friday afternoon the job was 300 60% still unfinished.

00

39

7.74

7.80

109 107

43

16.30

1500

200 @ 107

(#K)

Humphreys RUBIER Amalg

101 10.00

1.670

Trust

1.45

Tram Vaumati C. Light

23–23.30

103 104 900 A 103.

18.30

UTILITIES

Apparently it can't be finished before the middle of next week.

were

UK RUBBER DEALERS UNFAIR SAYS MALAY

STRENGTH

Latent strength in the new crops reflected House approval for extension of the surplus farm disposal ot marketing quotas for next year, Cotton producers might follow

suit when their referendum is 1

held later this year,

Mid-week hesitancy reflected

a more favourable tenor to crop Singapore, June 23. news with the return of fair, Mr Tan Eng-joo, a mem- sunny, hot weather. Technical ber of the Singapore delega, the lowering trend of the stock reasons and cautio: Infected by tion to the recent Anglo-market, were other factors cool- Malayan Rubber

buying la;erest,

Con-

un-

What it seems to mean is that there was n demand for Marks a much larger part of the in- and Spencer and for Great vesting community than the Universal Stores, both up 2/-, 15.40 market had realised has started while Woolworths went to

shift positions.

new high of 47/9d.

Oils of If we rely on the Incéx

rather chaotle. markot prices, we must con- Royal Dutch lost 6/- Anglo forenca in London, said to- clude that on balance they are Egypti "B" 2/64 and Burmah day that rubber dealers in

were "very ill selling British Governments 1 while Canadian Eagle roso Britain hough not as heavily as they 2/9 and the Great British Petro-fair." did in the rat halt of the leum gained, in a very active month of May-and buying in-week, only 7% person.

Mr Tan told #press CON- 10.70 18.00 100918.80 dustrials in the hope of future Apparently the continent rerence deniers in Britain were 10.00 profits due to some more infla came into the market for Ger- extreising, unfair practices to

man bonds this past week. The "cheat" Singapore traders, 18.30 tion of prices

non-esenteds all gated £1 45 BOOMLET

did also the Young Loon assorted,

The Crech loan was another tive one with a gain, finally,

221⁄2 to £881⁄2 sterling. CHINESE

(REX) 12.00

Electric

20.00

during the year since April 1955. Notes in circulation ...

1,050,472,800 in the relaxtion of exchange Pabile deportes....

17,000,143 restrictions, although not at the

205,229,000 Private depoats

MACDO E. same rate as in pecceding years,

Government

250,714,902 mersurities

42.200,003 Telephone :: The process of freeing trade

Other securities ...... and payments was continued in

Receipts Ratio

ternational reserves of certain important countries, it mid.

Outside Europe

-the interest rate charged to top business risks, now 4 per conta too low and should be hiked. They insisted also that and

INDUSTRIALS United Prem. Clement

and North The Bank Of France STORES. EXC

com-

everal

were

Central Amrlea, the Federal rediscount rate mented the report, likewise too low. Furthermore, countries, of which the Lebanon,

Peru and Thalland they complain they are being examples, had for some time forced by some big depositors

uberal non-dis- into lending long rather than short term cash, which they add criminatory import and pay-

maintaine

Statement

Paris, June 23,

80

10.20 1036

*8*338* *** 888

22 33.75 2000

11.20 19.70

COSECHISCE ESS

3011

30

The South African boomlet in gold shares lifted the Financial 25.00 Times Index froth 30.1 at the 60 hd of May to a peak, on June

21.60

11, of 74.8-a rise of là per cent 52.50 which is a lot-only to close on Friday down at 0f8 when re- presents a rise of some cent,

32.50

11.70 11.00 1000 @ 11.50

4.771 0.15

Wation COTTONS Textile Nanyang MISCELLANEOUS Chr. Ene INVESTMENTS

22.90

4.30

Chinese tended fractionally non-assertotis per lower. Jopatkic

aplayed some irregularity with Chiet characteristic the that of the 1930's up 21, that £1 andi wock was the highly selective of the 1800's down

4

of

He calct those who took sami- ples of rubber shipped from Malaya to check its quality were prejudleed.

►

Secretary Benson's announce ment that he probably will boost the cotton price support from the interim level of 77 per cent of the colton price support off on a strong note. Suggestions for increased soil bank payments if Congress continues the scherne, was another factor,

GUESSES

edi

While the Secretary gave no hint...how much he may raiso the props, traders' guesses put He said sometimes arbitraiers the gure around 50 to 84 per measured the grading based on

cent of parity, Statisticians, samples drawn as far back as using the latest parity price ten years ago,

37.00 cents a pound, found a As a result buyers took the percentage of 80 per cent would opportunity of putting in "un result in a ban of around 33.15 cents a pound for middling inch Decessary" claims. character of the buying the those of the 1010's and the 1924's Mr Tan said they had been against 32.74 cents for the 1988

hunt for tally

the

encouraged to do this by the STOP, an Increase of 41 points, least down 10/-.- known Industris, which, it is On several days British Gov- Singapore Rubber Shipping and or 12.05 a bale. Some quarters finance, felt the current market. price Control hopod, still have an inflationary eniments were marked down to Packing future before them. · Shares of discourage seiling but it was not established in 1953. to see that discounted a lost of 80 per Jolin Exeter,

department very successful. In the end rubber shipped from Malaya le cent, or even a possible 34 por

[cent of partiyy store, soared 13 shillings, while there were losses ranging be in good order.

The Malayan Rubber Export Us confumpton of raw coston those of Ultarsmer, uni oli came tween 12/6d, and 770 The

and long-term | Registration Board administersin May reached 672,758 bales those of modium=term "A" | paror; rosa 1/- and

has power against 713,280 bakes used.fn Burlwn was done in the lepsi | Johnnesburg Comfolliated a cada ano, jus a shade above the Ordinance and ubokbatal

concel the Hoces of mellers. May last year, the census burenu Acvation to with

exelungo, market), 134|| veterinai, gaich financo house-room | thele, 1957.1oys. :- Most tion Fund

morning, at the fallowing rálás:- six chillings.

Mr Tan felugned to Singapore reported, Consumption for 10 Doling stocks, Tojsi bir decounted, 1,999,105,300 pu vja, dniac: per 1)

three other months of the reason reached Scramble for deparțineni store' dawn in step with Wall Strout yesterday with made Bah

and chain Roro minres was tha krat, the gorikan paid for, then delegates of the Singapore Rub: 7,440,125 telee keskus 7,789.713 only really clear trend: Visibld. rose 11⁄2 per cent to 71% per cent. | Der Traders' Atsõelation—Rou-bales for the same parked Las

year, Tiled: From: Bên "addtion to John Berger, --United Press.

is being used in many instances ment policies which came very

to avoid higher interest, rites on the bond market.

as permanent capital

full convertibility. near to

A few European countries had increated restrictions during the So far, however, those at the past twelve months, the report. New York convention are neid to noted, but these, it said, were be reluctant to take the initia-exceptional

cases.

tive in boosting the prime rate European countries had pending action by the Federal appreciable progress towards a Reserve Board on a change in shore liberal ratein of trado the rediscount cale.. Theryl and payments,

The Bank of France stato- | Abled ment for the week ended June 13, reads as follows:

Fran Total goid, holdings 301 206,308,136 Totes other que

39,620,480,210 sigut balance #brond

·LA KPU

13,771,000,000

Current AUT

Exchange Rates

|«Indonesian rupiah (per 100) 197,911,380,005 | Blue Rikki (per 100) ev

ingapore (trafi)"

"