THE CHINA MAIL, WEDNESDAY, JUNE 26, 1057.
Pago
TRADE and COMMERCE SECTION
TRADE COTTON I FUTURES
DISINTEGRATION OF Reflection Of Europe's Currency Distortion
UNDERVALUED
D-MARK
By SYDNEY S. GAMPELL
London, June 25. France's quota testrictions on imports, announced on June 17, can be regarded as a stage in the disintegration of Europe's present trade and payments system.
WORLD WALL STREET
RUBBER
MARKETS
New York, June 25, Rex rubber contract closed
today 20 to 49 paints lower with sales of a contracts.
July..
September November January
March May
July ....
3183.
32.11-20
3123
31.05
31,43
31.15
30,14
·Standard contract closed 25 to
The disintegration. is a reflection of the currency distortions which themselves reflect profound structural differences in politics, anti-40 points lower with no sales inflationary policies and economic dynamism.
POOR DAY
AGAIN IN
LONDON
London, June 25.
another Markets had poor day under the in- fluence of some more iell. ing of British Government stocks
and of uneasiness over the persistent weak- ness in Wall Street,
The prime tintortion is be- tween Germany. and France, but as to some extent it 15 between Germany and the rest of Europe some other countries later resort to similar may devices if Germany continues to droin of their reserves.
More Serious··
Thro is a problem of the undervalued D-mark inde- pensent of hud probably for more serious than, the problem of the overvalued French franc. France's action illustrates how long-range are the objectives of the European Common Market It does and Free Trade Aren. not make nonsense to those ob- Jectives inasmuch as it has been obvious from the start hat, until something could be done about the D-mark and frane, the only
parts of
those Just before the close some-operative
arrangements would be their body possibly the government stockbroker bought British escape clauses,
Beenuse Government and lifted them off the sicky 1987 lows they War loan, which had reached.
July
reported
September November January
March
May Jinly
12.50
10
ales
31.42
31.15
30.85
The enster trend reflected Lower Singapore cables and a pauso in factory buying in- terest, The delayed or non- arrival of cables from Indonesia handicapped business, a num- ber of dealers sold.
Limited sales out of Indonesia included one ribs at 31 cents went threas
nt 314 cents, both June/July shipment, cost and freight, Locally, No. Ras was quoted at 33% ocnin.
The market ruled quiet slightly
throughout and eased on
some July sheets of bull liquidation.
There was only A small in- terest for lower sheets with dealers showing little Inclina- tion to trade. Futuros: No. 1 rubber pår ih. July 8tq-0175 Aug. 926-92% No. 3 rubber per lb. July 91-0115 No. 3
90L-PI No 4
68-87 Blanket crepe............................... Spot rubber, unbaled 011-914% 781-8012 08-100 Ne. I pale crepe.******* LONDON
4
The rubber market was steady pence, Phets
of the increasing overvaluation of her currency. once has Informally beca In retreat from import liberalisa- is only a few shillings above ton and from her exchange with spot 9/10 down at 203% all-time low, closed with a 1005 of only two shillings 6 pence parity for the last two years. In effect she has operated a Philo Old
shed s Consola
selective devaluation coupled, in shilling to 30 sterling after
Terent works, with import having been 40% sterling.
restrictions by requiring 60 per cent deposits from importers. SMALL FALLS
The new decision may give her some respite. As it has so long been obvious that such restrictions were coming, there has been a tendency to forestall them by over-importing..
the government Apparently la rather at a los how to the confidence Testore
ip "world's safest investments."
Leading industriais
mostly showed small falls but there were a few conspicuous exccp- tions auch
BS
Physical Stocks
Part of France's lost monetary Unilever, up 2 Teserves has thus heen converted shillings 3 pence, and Imperial into physical stocks on which live for a tine. This Chemicals, up a shifting.
shib c has some bearing on commodities: stores Department
showed Japan, India, Switzerland, Hol- rises of between 6 pence and 9 | land and severi other countries pénce; John Barker, the wealthy have also been over-importing Store which five different groups ; and will have to qut down. afe rumoured to be trying to It is hard to see a real solu- control, met
23
No, I spot • Seitlerat /house term:
July Aug. Sopt.
2031-27
20%-27!6
27-2716
27-2764
July/Sept.
27-2715
Oct./Dec.
2016-07
Jan./Mar.
2034-201
Apr/Jume
269-204
$806-207
209-201
2036-37
General markets, cif basin, porte:
June
July
Aug.
thin July
Uuck July
Patata crepe
AMSTERDAM
2014
The rubber market was quiet today. Prieds closed in guilders per kilogram, cit July lows; No. 1 rubber No. 3 rubber
as lo
2.01 non.
No. -3 rubber No. 1 crepe
2.89 nom. 2.50 HOM.
2.00 nom.
United Press.
lot of profti- tion, Bryand the respite phuse TRADE WITH
taking and closed with a gain of | Impor! restrictions generally only a few pence. Bowaters, the make matters worse by nggravat-, big paper concern, was again the the internal indation.
told and closed a few pence down at 40 skoling's its 1957 love
Ва
cause of the Dece and Gast and other international commitments the unpost restrictions cathol solve, the D-márk problem.
Except for Royal Dutch Germán bankers have been which gained 5 shillings, pre-talking of European currency ad- | surably on bear-covering, thejustments lator this olls were all down about a shil- | Nothing is known ling. Suez Canal suffered fresh
selling and fell 1% sterling to 44 sterling
Foreign bonds were idle and milaly unchanged, United Press
COMMUNISTS INCREASES
Geticva, June 25.
your. The annual report issued
ailer the D-mork's fundamental undervaluation.
Currency adjustments might
New York Sugar port quotas, but still only aries increased by 19.5 per cent
RECOVERS
FROM DECLINE
New York, June 25.
:
HAVE SMART
RALLY IN NY
New York, June 25. Cotton, futures today staged a smart rally
HONGKONG after a shaky start, only to break ground again
STOCK EXCHANGE
Our Own Correspondent
and close with net losses.
Nearby July showed independent strength throughout the session as shorts hurried to cover when apot interests, recent consistent sellers, withdrew until the market neared the 351⁄2 cent líne.
Closing prices ruled net 3 to. 15 points lower compared with post-opening gains of 9 to 18 Business done on the Hong-points, New Orleans closed kong Stock Exchange this points lower. morning amounted to approxi- Noun quotn-
All deliveries reached' new the new crop mouth went into reverse,
Stocks recovered some $1.5 billion of their five-session 6.5 billion decline in a wide, but not very active upturn today.
Featuring the rise were the recently hard-mately $277,000. hit chemical, metal, steel and oil shares. The rails, lons and the morning's transac-Casonal highs before with the best percentage- gain of the leading
Rhares Buyer Rellers Axles Subsequent selling reflected groups, and even the utilities, which managed a BANKS
the more favourable Kover11 inent weekly
summary small improvement.
than expected.
tumover
Trading moved along a steady, Sterp Rock Toronto Exze.)
for the Sterling Drug Co.. pace with
Stokely Van Camp. passion totalling 2,000,000 shares studebaker-Packard Corp. with 2,040,000 twift & Co,
compared Monday.
on
Texas Co.
Tile Water Amen. Oli Time Ine
tion:
HK Bank INSURANCES Union
204 SHIPPING"
Wheelocks DOCKS, OK, Waar?
Pvident (0) LAND, ETC.
33 Dock..
Twenty Century Fox Film
118
Winter Ribide.
Facile
Market comment ascribed the rise chiefly to technical con- siderations. Beat gains carg generally where declines had United Aircraft
United (749 Corp. bem hardest.
US. Foll "g"
The Dow-Jones average show- | US,
ed Industriala, up 4.90 points at US. 501.09, res up 1.45 at 14480; utilities up 21 at 69.70 and 65 stocks up 1.61 at 173.04.
Of 1,163 issues traded, 627 were higher, 300 lower, 238 unchanged with 78 new lows, 14- new highs..
Now York Stock Exchange bont volume was $4,280,000.
American Stock Exchange volume was 130,000 shares.
Closing Pricea
Allied Chemicals
Allied Mille ine.
All Chairmara...
American Adrige volev
American Cable & Radio Corp. American Cyanazṇide Co,
Amer. & Forgn. Power Am. Gas & Pecite Am. Mach. 8. Ndry American Metal ............. American Smelting Am. Bug Ilef... Ameisena Tel, & Tel. Amersen Tob. "g" Anaconda Copper Armeo Steel Armour..
Alla Cons. Minint Baldwin-Lima-Klarn Baltimore & Ohio Beneficial Finance Bendix Aviation Corp. Banquet Cons
Bethlehem Steel
Boeing Airplane Borden (The) Co.
Burroughs Add Machino
Campbell Soup Co.
Canadian Pacific It.
Case (J. I.) Co.
Cal. Tractor
Celanese Corp:
. 1. T. Financial Corp. Chase Manhat. Bank Chrysler Moter, ... Cilmnx Molybdenum Colgate-Palmolive · Co. Colombian, Carbon Co. Commercial, Credit Commonwealth: Elec. Consolidated Edison Crown Zellorbach Culso. Amer. Sugar Diamond AJKAN Douglas, Alterdit Dow Chemicals Dupont de Nemours Eastern Airline
Finance Corp
Ford Motor
Faman Kotak Firestone Tyre & Rubber General Electric General Foods General Motor Gen. Puh. Uti
Line Co. U9. Hubber UB. Smelling
9. Steel.. Warner Bros. Westinghouse Electric Western Union Tel. West Va. Pulp & Paper
-United Prens,
CHATTER ON WALL STREET
New York, June 25, Francis I Du Pont & Cb. recommends conserva-
A
tive market programme;
"For continued calling ownership of, undervalued equities along with the holding of cash and cath equivalent reserves future buying opportuni- 181, ties"
for
Hi Hotel BK Land
RUBHER
1035
21035
100 80%
107
7.70 1.80 5000 or 7,20
100
I
|
* 4912 1000 m2 443
13. 13.20
16.20 15.40 35% 3319 (rta) 10,20 10.40
Humpitreya
Amate
Trixt
UTILITIES
Yayinatl
200 19.30
сгор
Texas reports indicated liat
EXPANSION
OF NYLON
PLANT
New York, June 25. American
Enka
Cor.
desplie same local hail and wind poration has announced an losses and failure to plant low-expansion programme for land cotton, prospects are much its nylon facilities at Enka, more favourabse than thought North
possible on June 11,
sald, mostly
110 10.20
204 10.30
Elsewhere, the summary
10.90
1.53
1.421
C. Link (0) 18.50 15.70
Its 12.701 Electre 20.00 24.00.
Telephona INDUSTRIALS
Carolina, costing
over $5 million, government Construction of an addition warm to the present nylon plant is sunny weather improved crop expected to start within several promicets, permitted consider-wocks. It is hoped to have the ablo cultivation and favoured new facility working during the Insect control in nearly all of second half of 1958, the main belt. The principal This expansion
nearly 1800 18.60 exception' was
In the middle treble Enko's production of fine son 8 20.50 portion of Oklahoma where denler nylon textile yarns while rainfall was up to four inches total capacity will be increased
by 75 per cent,
500 10.00
500 de 29,70 28 28.20 2300 28.10
men .... 324 32 RODOC.
12.10 BIURES, Dasry
WATHOR COTTONS Textio
14.50 14.20 1925 @ 14.00 1500 14.50
4.05 ....
$
ENTE STORE ENTS
Allied
II.K. & F.E
Invert
or more.
Open July contraels today toś failed $1,300 bales, Ring ob- servers, thought today's covering movement cut the interest by
American
will
FIBRE
Enka-one che
another 10,000 balms... The curti-United States leading prodvēers fleated stock remained at 9,634 of man-made yarna and Obec
began initial output of d staple fibre in March, 1954. Pro-
Open Interestduction of flament textile yans
was begun last year
114 1180
8,00
bales.
4.00 4.76
Month
Volume
10.30
300 10.30
July
12,000
Oct.
14,100
61,300 177,300
Dec.
13.200
334,400
Mar
11,000
133000
CHICAGO
May
17.000
120,600
July
12.100
83,400
Oct
20.000
$5,200
Dec.
4.000
9.800
Moth!
103,300
92,700 beles capacity
NEW YORK
months.
GRAIN
MARKET
Chicago, June 25.
The company's announcement said demand for fine denler ... nylon textile yarns for use in the tricot khitting trade has exceeded
Enka'a
production for a ŋumber of
In addition, these yarns are In the hoslary Industry and are being evaluated in
NUMETUS... other Helds. China Mall Special.
Prices of cotton futures closed gaining acceptance
33.8011
35.45
34.90
34.58
35.50
35.00
today as follows:
Spot
July
Most grain closed lower
Oct.
Dec.
Mat!
May
July
Det.
20.05.00 23.00.
Dec.
33.98
NEW ORLEANS
on the Board of Trade today. Hornblower & Weeki cti-
says mination of excessive ingentories The market opened lower, but in the vision for companies took an irregular turn at mid- still remaining in business....possion in the morning with notes air conditioner sales have scattered commission house
tem- activity and 20% been mounting with the
some liquidation today as follows: mperature, fista among, companies in corn features.
aggressively promoting Soinu
of cooling equipment At midday most grain prices 10% Borg-Warner, Buffalo Forge, began moving lower.. 13
Prices of cotton futures closed
نواع ال
LIVERPOOL
moderate foreign activity Cotton future closings,
Mar/Apr.
3420
3575
833588528
PRICE-CUTTING
WAR IN SINGAPORE
Singapore, June 25. Singapore rubber brokers were clashlog in an all-out price-cutting war on broker- age fees, the Straits Times 30reported today.
26.37
The paper said the brokerago war, which began with
the
20 collapse and dissolution of the
27.05
Spot
July
464 kinds
Oct.
Dee.
Carrier,
Mar. May
Chrysler, Fedders
Quigan, General
Electric,
General Motors, Trane, Westing house Electric and Worthington,
Soybeans were lower during early
trade bermuse of an expected larger 1957 crop and slow export demand.
Oct.
Dec.
RECOMMENDS
Trade was fairly slow with
in
331
Bis
Elec-
Dec.
MAC
May
Corn, No, 2, Trellow
11
Harris Upham & Co. Albert IGY LA. Bookbinder says Brazilian
Traction "still looks cheap"
EBOK
reported. Wheat, new, closed up pence per lb, were as follows: Edmund W. Tubell of Waltson 4 to 15% gents. Soybeans clooded contract July/Aug. & Co., lisis among possible re-up 5% to 3% écnt. commendations "in the event of Wheat, No. 2, red weakness in the general American Smelting, market," Chrysler, Consolidated 4tronics, Ingersoll Rand, Lily
Tulip, Newmont Mining. Tang- Sul Electric.
Oct/Nov.
26.0
Dec./Jan.
25.40
Mar/Apr.
201
May/June
July 210 5/911) 2001) 2101 Sept
21315-213 21014-21 22444-413
New contract July/Aug.
Oct/Nov.
Dec/Jan
May/June
13314
July
12932-T
Sept:
İSLER
Dec.
126-1201
Homestake Mining Co. ingersoll-Rand
Inland, Steel; Co.
has & 31 per share book value, 816 triple present price....ays enso Rye
Mar
10%
May
133
Oct
Dee.
Interchemical Corp.
Int'l Business Machinek
114 | earnings could come to $3 per shate for 1957, compared with
July
Sept
1231% 120
Mar
MAY
;
Int'l To K
Inri Harvester,
international Nickel.
151 $1.18 in 1955, $2.10 in 1900.
Qata
July
International. Paper
Sept
Boybeans, No. 2, yellow
dependa
Soci July
Sept.
10
101
butainous population, and the replacement market, but has
Nov.
233%-%
42515-9%
Jars.
2
351 | changed from a highly cyclical
Industry into a
growth. In-
MAF.
Barley
3153 | dustry United Prest. ↑
geno oldden, Co. Goodrich B. F ca Surrou
Goodyear Tyhế
Harden Newport Colp.
o support today at the General Agree these rumours, except the general feeling that the present system meni on Tariffs and Trade is becoming more and more un highlighted the rapid de worktable, No foreseeable change velopment of trade between in German politics is likely to Communist countries and the rest of the world, which set a new record last year, be a better paliative than im- Exports of Communist coun- palliative and quite likely to in 1950 over the previous year, mikë, metters worse.
Import to set a new record of $2,257 million, Imports also incréised restrictions and devaluations are appropriate remedies for fluctua- by 21.3 per cent during the game New York, Junė 25. tions and static disparities. When period; totalling 1,812 million World No.
John Maryūla to, 4 sugar appiled to the cumulative and dollars.
Foreign trade development of futures closed 4 14 intensifying problem of continu-
10
Kennecol Copper pusly divergent trends, such the trouble zone was fargely due
Liggett Meyery, Tob.. Co. points lower with sales of measures can work only if they to the Soviet Union, whose ex-Lockheed Aircraft 682 contracts...
ports, increased by 28, per cent Low Incorp are continuously extended.
Lone Star Cement Co.
Market
Į
No Solution
Kanser C. Power & Light ***
Estionát Cadi
A
Lowenstein & Bonanglist This probably means that they and imporis $1 per cent, and to Domestic contracts
McDonnell of No. cannot work at all, since, the Communist China, with corres
„Alterati === (Am. Stock GA | sigur closed changed to prospect of continuously rising ponding, increase of 28 and 35
Poland and Hungary Membi Iron Corp... with sales of 01 trade barriers or of continuously per cent. point lowe
Minciota Mining ... contracte.
decrease in trade on development divergent exchange rates is in-showed n World: contracts weakened
volerable.
activity.
Monsanto Chemical Co. primarily under liquidation, at-
The report noted that trade Montgomery Ward tributed to the lower raw mar-
between the Soviet Union and ket
technical
Britain did not develop as much following the recent sharp rise the Demark problem is of us had been planned in the Morocco purchased 21,000 that character, there is no soču-spring of 1030: when Soviet teins of Cubone, raws but post- lion by adjusting the Dhark leaders vialted Britain. poned the expected purchase, of from one undervaluation to an The Galt report noted a 20.000 tong Meanwhile, dealer other, any more than by adjust
, ng, depulte word regarding ing the French drone from one ainable purchase of mws by overvaluation to another. Child,
Contract No.
FOLIONI
#.11-12
Motorola te Nations Entry Prod. National Lead National, Steel Corp. New York Centra}" Oly Mathiesod
"gulacant expansion of trade wen-fals Glam
Pacifle Gas de Mec, between North America and an American Almways the Communist countries..
Coin-Paramount Pictures .... munist exports incressed from Pas De Co.
Penny JC, Co. 64 to 82: million dollars, and Penn, Bule Co. Imports from 18 to 18 million. Philip Morr ly be worse than leaving things Most of the incrcial was due to Trocar & Gamble Co.
A devaluation or revaluation fmm one distruzsind rate, to an- other distrusted rate may actunt 1-1 alone.
The...problem merely trade ·with Canada-FRACO- afiria qu over again, and prese yardened............ by the shock, to the Ženig. 4 xChanges and 30g.publie advertisment of the fundamental trablo.
0.00
p treo do nat mow ie the day, hery, rogant premumably be
NAMESAKES Annan-1 padem, 2 Clallog
Rime anaven to this problemi, ing, a Horse, & Cuban pesflops an tio poirical, iphire. 8.Buyer, 73 migh Menne, two restes et aneked 9.Newmakety 2:13. Cóure “monocytha) to ghuttens. to Ores Filly, 12. Vickarlour 13
dacataloru, and" elsewhere-asema | hampi morgly to have · atvažersted: ital Deby. worsening ----China Mail Special,
8:Calt
Hadio Carpo
Value line investiment survey 347
Ands that the offèo equigurient C301) | Industry no longer
1101 | entirely on the mère growth of
37%
LONDON METAL
*PRICES
“ London, June, 25. Prices of metals, closed today:
in sterilog per long ton as dolows:
not
3-monst
Соррет прод
SmoothTM
Lodd and hall Jurié
Zina, înd half Judo.
Buyers Selldes 70134 707 708
203
Prem
750
NEW YORK METAL
FUTURES
•New York
Spot
Now York flour
200 1, sack
130-140
#13.300 United Press.
New York Foreign
Exchange
New York, June 25, Closing rates werd:
CATARA England ofisial
30-days
#
10-days
Australia
New Zealand South Africa
Brak:1
Others
20.13 Singapore Bibber Broiters' As- 2010 octalion last week, had brought 20.06 "a bewildered atmosphere" to
the Singapore rubber market,
The dissension had meant a difference of 49 much as one- in quarter of a Stalls cent
the price of rubber pound in with a braker, who sells at less than a competiler because reduced fees or no brokerage
SAO PAULO Cottonfiture closings, cruzeiros per kilo were as fol- lows:
41.00:
41.50
43,70
41:30
at all.
a
of
The Straits Times said the
In the US, the average spot "war" began when some of the price of one-inch cotton at 14 13 members of the Low-defunct designated - spót, markets was Singapore Rubber Brokers' Ab- 34.00 cents,
sociation “brőke á "gentleman's Total sales at these marketa agreement" in the Association were 0,240 bales,-United Press, rules,
Singapore
It was claimed that members adhering
to the rules fourki
they were penalised by
Stock Marketed à resolution
"
Singapory, Jung 26. Brokers today quoted the fol- towing stock pribės; !--
Batu." Lintang Rubber Co.
Britt Borneo
Opening
/ $2.10
1.10-13/18 Consolidated. Tin Smelters
2.70-3/33
29-7/18)
Unilia” Plank,
Exchange Rates
Syndicatest
Framer &
· Ord.
· €39 }
12.70 Fraser Neave 71% cumvong AM
pref
Gammons (Malays Lanlies, 12:10 -
HongkongĀ
Banking Corp.
Hongkong Jan 180.
Ruper
Kun
Lunar Rubber, Estates, Malayan irureri
Now Branden. Nubber Co.
the local helaling In-Eid
Daited
other brakers who were undercutting Axed brokerage charges.
Protesting members, called "D meeting of the association which
pt. dissodu tion by o namow margin.
The Straits Times sold in somo sections of the rubber market; it was, hoped that a new associa tion might be formed under the auspices of the Singapore Cham- ber of *CannafreeRubber -Association,--REUVER, E-
London Foreign
Exchange
Clos
rates we
Párk
Jung 25.
No comments yet.
Private notes are available after approval.