1957-07-09 — Page 9

Page

THE CHINA MAIL, TUESDAY, JULY 9, 1957.

Page

.

TRADE and COMMERCE SECTION

INFLATION GETTING ON TOP

Farewell To Macmillan's Price Plateau

From RONALD BOXALL

London, July 8.

WORLD AIRCRAFTS LIFT HONGKONG

RUBBER

MARKETS

K today 20

New York, July Tubber contract closed

to 49 points higner with sales of 80 contruels.

July

September

November

January

Mar

May

July

The lantas

Trying to suppress inflation without doing

ernet closed serious damage to a nation's standard of living is 20 to 40 pouts higher with no like trying to sink a balloon without bursting it. You can hold it under with the gentle pressure of one hand but the moment you let go it bobs to the surface.

The Government found this out when it decided to restrict demand for motor cars. It raised minimum deposit on hire-purchase transac tions from one-third to a half. Sales fell and so did car production.

-r

Thon so as not to do possible | of the Government. It was tie Permanent hun to the whistry Con crvative Daily Mail in a

at the time of the Suez affair nwog of high indignation. the Govermat reduced hire- panchere deposits to one-Bfth.

What happened next is des sribed the Treasury's mid-

review of

Ct.taati

year

"Passenger car output with hire purchase deposit at 20 per cent started to rise in February rod by May reached the highest level yet at four per cent above the relatively good figures May 1955."

Final Chapter

آدا

this

The final chapter of cautionary tale: bire-purchase depe ils are Lave oguli fixed at one-third.

Now the balloon of inflation it resisting the gentle restraining hand at other points.

What To Do?

"truth" it went on, " that the Western world frrespec five of governments and partica

caught up in inflation fus; as if was caught up in unemploy body knows who to do about mert between the wars and ne-

J"

The real truth is even more painful. Everybody the Gay- ernment, the Daily Mail and the leaders of Soviet Russia knows jn[ hre to stop in- flation. You simply stick a pla in the balloons,

But that of course is out of the question. So the British Government will take the Daily lil's advice and do everything

July

32.60

32.43 32.23 32.10

31.80 31.54

PRICES ON

WALL STREET

New York, July 8.

Stocks made further progress towards new ground today under leadership of aircraft, chemi- cal drug and selected special issues.

STOCK EXCHANGE

Our Own Correspondent Business done on the Hong- kong Stock Exchange this

morning amounted to approxi-

COTTON FUTURES

FLUCTUATE

ON DOWNSIDE

New York, July 8.

Cotton futures fluctuated widely on the down- side today following issuance of a higher than expected government report on cotton acreage, Trading was moderately active.

At the clore the list ruled October

December

Marcla May

to 18 points lower. The mar ket opened 2 to 14 points lower, New Orleans closed five points July lower.

34.13

74.91

24.63

34.00

October December

NEW ORLEANS

Prices of cotton futures closed

Prices lost as much as 46 points-$2.30 balo-in the distant July contract immediate- ly after The report attracting today as follows: shor!

jor covering and commission Spot Juty house buylag which recovered Faler

more than half the losses,

mately $138,000. Noon quota- tions and the morning's transse-

one:

Shatos

Buyers Seller

**

roles reported,

July

Profit-taking reduced prices from their best September November.

levels in issues which had been strong all day. March

However a last minute rush in aircrafts lifted 1770 May

prices in that group and increased trading to a A holiday in Singapore and Indoncala kept efterhes pace which put reporting tickers alightly behind small and brought firmness into at the close. up slightly, Spor No. 1 Rss was futurks. Factory interest picked quoted at 33 cents pound.

LONDON

The rubber merke: way steady with spot quoted at 27% perce per 16. Prices:

Net. Tas LL!

Settlement House tenn

Aug

Beptember

Dctober/December January/March

April/June

27-27)

27-27 27-2755 27-271 27-2712 17-27

203-27 20-27 2014-27

307%

Cencant markets, elf busts, porte

Juty

August September Engie rege thin July thick Att

AMSTERDAM

The rubber market was qulet. Prices elesed in guilders per kilogram, cif July as follows:

No rubber No. 2 rubber Nu. Tubber Note:>

..:

2.02 HotA. 2.60 pom. 2M buyer's 2.77 buyers -Usited Prest.

in their power to keep inflation New York Sugar

under control.

The trouble with this is that every once in a while you must

Following the 5.2 per conf in- in miners wages last March the nationalised coal in- austry is ruiting coal prices cight per

rent from this mouth und the noticealised railways the balloon rise to the sure, are putting up their Treight face while you take a new grip on --Landon Express Ser- charge by ten per cent from next month,

vice,

Industries which use coal st the railways (which is nearly all of them) ure making ominous

golea about higher production

casts and their inevitable effect

in retail prices.

US COTTON

They are also remembering PRODUCTION

that the last time evul went up

the price of steel was increase.

But even before the cycle is

completed a tw

ene seems to

be wlading up. Fer this week)

the Miners' Union decided to

ESTIMATE

Washington, July 8.

Market

New York, July 8. World No. 4 sugar futures closed today unchanged to four points higher with rales of 482 contracts.

i

Eastern Airline Eastman Kodak

Aircrafty moved up as Rursin rejected the new Western pro E Pass National Ga posal for a 10-manth, suspensiora, Family Finance Corp. of nuclear tests.

Volume TOSC to 2,401,000 shares, 600,000 ahead of Friday And heaviest since June ii. Bear covering added to volume in some issues.

Industrials closed with a net gain of 1.52 points to 518.4%, their best average ince last Aug. 0, and within 3 points of the 71.71 and the numerous

General Electric

General Foods

General Motora

Gen. Pub, Util. Getty Oil

Glidden Co.

Goodrich (B. F. Co. Goodyear Tyre

Cult CH

Hesden Newport Corp. Koiranke Mining Co. Jagersoll-ared

and Steel Co. Interchentesi Corp.

Int'l Biminers Machines Int invester Dus International Nickel

International Paper

424 10

Int'l Tel & Tel

Kanne C. Power & Light

wide gains in special lesu Addrescograph-Muligraph un Jean-Manville Co. 11% to 100%: Mërganikoler Linotype, up Th to 02%; Kennecsti Copper Freeport Sulphur, up

Liggett Meyers Tali, Cu, 115: Minnesota Mining, up Loews Incorp.

Lockheed Aerat

to 90%: Minneapolla" Honey-Lone Star Cement Co.

Lowenstein & Sons. weight, up 11% to $130%.

Merabi Ion Corp. Mermanto Chemical Montgomery Ward Motorola Inc, Notional Carti Neg. National Dairy Prod. National Lead

Highlight

Olin Mathieson was a high- light with K gain of 4 $50% on turnover topped only Ly Sperry Rund which climbed a point on the day. Allied Chemical rose nearly 2 and US Borax gained 4 points.

Aircraft leaders included United, Geral Dynamies and Douglas, all up close to 2 points.

In drugs, Merek wus setter with a Fire of more than 2 In Its common nearly 5 in the convertible preferred.

pice-

Gning of around a polut ap-

Quneslic No. 6 sugar futures closed unchanged to five points lower with sales of $4 contracts. peared in Shell, Getty and

Would futures moved up Soocny Mobil la the oils. slightly

on some small routine

All the trading in do- Lukens, interest. mestic futures was confined to up almost

10 the September

stecis. delivery which

flected uncertainty in the do- mestic raw market as to the effect of the latest sugar quota increase on prices.

submit an immediate claim for The Agriculture Depart-fell 5 points. The cusiness re

action to their

shorter working hours and toment today reported farm. take "any Eecessary

ers had 14,224,000 acres of proteol and improve"

coiton standard of living.

in cultivation in July 1, down 15 per from last year.

Imports Rising

cent

The Department is forbidden

These are net the only rigsby law to make a cotton produc- that infiction is once again getting tien estimate until August, Bul on top. Industrial produelles is yields average 400 10 of Un at last on the upgrade after two to the arte, farmers would har- years of virtual standstill. But

vest 11,379,200 bales crop this imperts are rising as industry's year on that acreage, demand for raw material grows with the result that the trade "cp" is opening again.

At home the demand

Last your farmers produced 13,310,000 boles from 16,833,000 Iseres in cultivation July 1, 1950.

expanding and Investment re- mális on a high level,

Higher production is the classical remedy for Inflation bul

Yields lost year averaged 409 pounds 2 acre. Ten-year aver- age yields were 233 pounds an

On an average July 1:

acre

in the present case it seems more rage of 22.743,000 acres." likely at any rate at first-to

The acreage Allotment for give a further upward push to cotton this year is prices,

One

17,585,403

Octolzer January March blay July

Contract No. 4 (world) September

5.05

1.04

4.03

4.50

4,47

September October

4.47

4.50

Spot-cents per 30. Cou

Cuba)

6.00

Contract No. 6 (domestic)

September

0.08

November

B.05

5.28

September

G.20

Spot-Jegnts per lb. cf NY

ex-duty)

0.00

Open ____ inferent: 2,300

contracts.

March

United Press,

urres, in increase of 104,159 London Foreign

reason we have stayed werds over the 1956 verlage. The

on Mr Macmillan's famous price ollement system is a govern- plateau for so long (retail prices men!

attempt to

have risen only two per cent in curpluses.

curb fibre

the past year) is that many in- The following table shows dustries which have experienced estimated July 1 acreage higher production costs-muinly, leading cotton

of course, because of wage. In July 1, 1966 aereage: crcases have refrained

from Stafe

Exchange

London, July 8, Closing rates were:

states, and the New York

Montreal Amsterdam July 1, 1037 July.1, 1050 Brussels.... истенкс acreage Copenhagen

437,020 Frankfurt

passing them on to the consumer. North Carolina JGU.000 This was partly because some Industries made a genuine at- tempt to hold down prices in the Government restionse to appeal for restraint and partly because sales were feeling the Arkansas pinch of the restrictions.

$13,000

Juria

Stockholm

Vleara Zurich

Othars changed.

suith. Carolina

Cecia

Tennessee

B10.000 300,000 450,000

$95,000 .854.000 558,000

Asian Qzlo

Alabama

$30,000

1,001.000

ississippi

1,400,000

1,841,000

Blansouri

415.000 1,103,000

hire-purchase Oldaboru

TORS New Mexi Artxana California VIKITE

Zinia

470,000

8,150,000

1,405,000 650,000 B02,000 7,005,000

187,000

301,000

371,000

730,000

772,000

13,000

21,900

34,400

Хля

3,000

0,400

7,400

3,500

2,300

Included in today's aggregate

were

€2,100 acres

Underneath

109.000

15,000

2.796-3.79-3/16 2.45-13/10-2.03 101-10.043

140.0215-240.07

193479-1934T 1167-1247 1134-17301

19.901-19.50 $20-00 1442-14-474 72-7-7130 19,1935 - 12.193;

Valted Prom.

New York Foreign Exchange

But demand was being held Flori bilirol just underneath the surface; it Kentucky hadn't toot any of its buoyancy. Nevada...... Now that it is exerting Itself again the industries which have | estimates been absorbing higher production planted to extra-long staple Caud coste by reducing profit margins American Egyptian cotton.

are not likely to tolerate this Growers had 43,500 acres of state of affairs much longer.

Once restraint is abandoned long staple cotton in cul-

the arlee platceu will be just a fond memory in the minds of political cartoonists.

the

Mion on July 1ị last year,

-

Texas and 20,000 acres American Egyptian

In cotton cultivation an July 1; New

600, United

A national newspaper tooked Mexico 14,300; Arizona 30,000 around this week and what it say prompted the following out- burst:

A fond

"Goodbye plateau! farewell to our jog-trot across that quiet tableland. We are again" on the jet - propellet funicular. Let her go boys! In- flation of bust”

and California Press.

NAMESAKES

Answere:-1 Germany, Battle, 3 Fighting, 4 Invasions, This was not a Socialist news5 Oralaught. 0 Barbarians Paper having fun at the expenso Attila (Leader, of the Huna.)

New York, July 8.

Closing rates;

up 24, and Haron,

National Steel Corp. New York Centrai ots Etevators Olin Mathiot

Oven-orth $71018

Paelle Gas & Elec.

Pan Amerter Altwayd Paramount Pictures Parke Davis Co.

Penny J.C. Co. Perm. Salt Ca.

Philip Morris

Procter & Gamble Co Pubileker Industries Pure Og

Radio Corporation Republic Steei

Shell of Cɔ, ........ Saat Rag. Paper Sinclair Oi Sear Roebuck

Rocony Mobiloll .. South Puerto Rico Sugar Suthern National Gas Southern Rathway Cam.} Standard Brands

a point, featured standard Oil of Cal. Standard Oll of Ind. Standard Oil of N. Ralls gains ran to a point in Sleep Rock (Toronto Exge.) Chesapeake & Ohio und Balli-Swift & Co.

Studebaker-Packard Corp. more and Ohio.

Panhandle Eastern up over

Техда Со. ........ Tide Water A. O Pipeline, Tune Inc.

2, atid Houston Twenty Century Fox Film Lighting, a point higher, helped Union Carbide utilities.

One of the few losses of any size wax n 1%

Chrysler.

point drop in

Of a total 1,020 issues traded, 560 were higher, 410 tower, 235 unchanged with 77 at new highs,

21 ut new lows.

American

volume was

Stock Exchange 1,010,000 shares,

compared with 720,000 shares

en Friday,

New York Stock Exchange bord volume was $5,212,000.

Closing Prices

Radio

Allied Chemicals Ailled Mills Inc. Allis Chalmers Amer.com Cabic

Corp. American Cyanamide Co. Amer. & Forgn. Power Ain. Maca, & F'dry. American Metai American Smelling An Sugar Ref.... American Tel # T?! American Toh, "p Anscondu Copper Armen Steel Armettr Baldwin-Lima Ham Baltimore & Ohlú Bendix

Aviation Corp: Benguet Cons Bethichwig Steel Boolag Airplane Borden (be)

Burrough Add Machine

Canadian Pacific R....... CASO (J.) Co.

Cat. Tractor

CIT. Financial Corp.

249%

19

85

521

健腦

Tinion I'utile Railway

United Aircraft

9.9. Gypsum

U.B. Smeking

U.S. Rubber

U.S. Sleef .... Warner Bros.

Westinghouse Electric West Vs. Pulp & Paper.. Woolworth

40

SHIPPING

K. Whist

The list had opened 70 cents hale lower in evening-up

October December March

May

JUCES

A

mar***** lock

PO

July

7.70

1.83 2000 or

1000 7.80

DOCKS, ETC.

108

100

on short covering andl trade buying.

operations prior to the report but recovered partially a Bile later

October

December

LIVERPOOL

Collen future closings, in pence

Dock....

454

500 # 6512

អ

sele

Provident

12.80

2014

2111

LAND, ETC.

The market closed from 19.55 per lb., were on follows: a.m. to 11.15 a.m. EDT to allow Old contract July/Aug. for the nereage report.

Oct/Nov.

20,4A

The

Department of Agricul-

Dec/Jan.

7011

Mar/Apr.

20,74

475%

NX Land

ture reported

that 14,224,000

May/June

20,02

37

Oct/Nov

27.03

Dec/Jan

Mar/Apr.

May/June

10

341%

70

100%

Amaly.

IX Hotel..

cumpar

Realty

RUBBER

Trust

UTILITIES

16.00

391 25.79 18.30 14.80

1.4725

1.55

1.23 1.40

Trim ...... 23.10 23.20 Yaumatt....

C. Light (0) 13.00 18.00

75023.10

O COL

40 30.00

zeres were planted to cotton as New contract July/Aug. of July 1, compared with 10,833,000 acres under cultiva- tion at this time a year ago, and with the 1940-55 average of $2,743,000 acres. The trade x- pected around 13,750,000 neres, Certificated cotton stocks held unchanged et 9,734 acres.

NEW YORK Prices of colton futures cloud today as follows: Spot July

SAQ PAULO

July, October, Desember and March. May unquoted.

In the US. the average price of one-inch ection at 14 design- ated spot markets was not avail-

able.

Tolal sales at these markets: 0.171 bales.United Press,

100 100

530 G# 10.70

13.70 12.00

090 12,00

123 12.00

1033

113.

37% slope

Electdte

... 2000 20.39

Telephong 27.60 23 332 INDUSTRIALS 3012

Cement

300 20,00

200 6 29.201

200 4.27,80

300 27.80

32!!

6412

Amoy Can

3414

STORES, ETC

14.00 14.73 200 14.70

Wateen

Lano. C.

42

Emperor

1134

8.35

31

30%

COTTONS

Textiles

49

Nanyang

4.76 4.820 500 8.35

4.73

GOP 34

Enter.

19.00

41 Dalry

ла

201

MISCELLANEOUS

13711⁄2 | ADK DAN

780

(0)

08.00

INVESTMENTS

Allied

.... 45732

400 14.70

CHATTER

ON WALL

STREET

New York, July 8. Technical action of

PO B•I E&A

COMPANIES

PASSENGER/FREIGHT SERVICE

PENINSULAR & ORIENTAL S.N. CO.

Outwards

"UARTHAGE"

Leaves Londen.

Kina Hongkong 20th Judy

2511 August

22nd September

"GANTON"

“CORFU"

the

"CARTHAGE“

+

appears

further

stock market

with favourable strength indicated, accord- ing to Orvis Brothers & 2014 Co.

74 3911

E. F. Hutton & Co. says the probabilities of continued favour. uble short-term trend action re- mains high and movement of the 12215 | trend of the recent truding rerge

231

should develop.

4314

United Press.

DOLLAR

STOCKS IN DEMAND

London, July 8,

in Dollar stocks were strong demand in a firm London Stock Exchange to [day.

Bach & Co. says the recent advance suggests that an attack on the all-time high is a strong possibility Lone Star Cement chart position seen as favourable. Run Ahead

Waltson & Cu. estimates Robertshaw-Fulton 1057 proft should run ahead of last year's $2.82 a share...Abbott Laborn- tories should rise from the $2.80 of 1950, and the 6160 dividend might possibly be sweetened at some future date.

Harris, Upham & Co. esti- Imates Carolina Power & Light set at $1.84. for 1057 rainst $1.64 in 1950,

the rall Value Line, says equipment companies currently appear to hit the peak of ม boom.

Clarke, Dodge, & Co, Ands | the municipal bond market im- Market men raid the buying, proving and says It has dis- which sen rod in such isales as counted a possible rise in the International Nickel, Bethlehem prime interest rate shortly and Steel, Chrysler d General à possible rise in the discount

Motors, was a recull or both rate. strength in Wall Stree; and tech-

nical factors.

Elsewhere, olis were wanted

Standard & Poors

Bays the worst apparently has been seen for the housing industry and a

616 with Ricyal Dutch tealusing on a moderate Improvement

4032

392 spur, of £14. Other oils were

to 131 up mostly from

9031

2 shillings.

1015 Leuding industrials were quiet WE with moderate guins.

Cefano Corp.

Chinav Stanhantan Sink Charter Motor

483.

Y

70%

Climax Molybdenum Colgate-Palmolive Co. Consolidated Adison Continental Oll of Dol. Crown Zellerbach Cubed Amer. Bugar

Olliers ait unchanged.*** -1/10 Dimond Aft...

alted Pres.

Dow Chantenis

Dupont de Nemou

BOCITLA

likely late this year or in 1958,

-United Press,

Governmtut bonds were sold Exchange Rates

again, War Loan fell 3 shillings 459 pence to a new all-time low. 43% while Old Consola tumbled COT,

shillings to a new 1957 low. 10% Young Loan was the only up- side feature In the foreign 1972 section.-United Press.

Fast Clock Beats

----------UJI

Washington, July 8.

A fasi clock asmand the okup reparing board to release the

BORDEO report Rye miamašću curty Soday. Under law, the trup reporŇ KURIE

one sccund before or after.

›› Nowa" | reportera... and--motton)" markets arm geared to the

red lime. ・ Clocks are supposed;

Today they

še bo-mytrADE, uidn't,

Susumoss war dona In the local unofficial exchange market morning at the following rates: V.B.. dollar (per (1) ou...... Biring rates (per #1)....... Australian notes (per £1) Investan rupiah (per 100) Biem dicsi (per 100) Singapore (straila)

The Law

4.00

10.40

BAS

32.60

28.00

3,000

clock in the work room, show-{; the report when the faxt click ed (be margt time.

Vilo raporters

BUS KYA

The clock in the locked rooms) Actually, the time was 1054.

where the then report was prepared (abowed 10,80 an KET.

showed 11,00-an.- Thály die sturen the oetien ave DOST TUMAČAnd Echipapork and pošten marktbe a lite ́ early

When Board chairman | ・ #prolai wires to cuttes munchen | On Ococraber 8, 1835, A SZEREY Sterling R. Nowell rushwa - worth's operating.

"from" the lock-up, rošty clock;| Newell;^-rollinwing/^^the 'clock, booked in sering with, the had no obaloo," „žio rytusMEGA

lucident occurred, The kletk -then-was-four asă-11⁄2 minutes `fisk-United Prem,

*

*

Sated 25/0

23rd July

21st Aux

18th September

Via Southampton, Colombo, Penang

VENTARIOSE

"CARTHAGE"

"CANTON" "CORFU

"CARTHAGE"

Leaves Hongkong

int August

2014 August

2011 October

& Blogspers.

Tree Lenders

let September

22th September

18th September 27th October 24th October 24th November

Via Singapore, Penang, Calouste à Aden,

FREIGHT SERVICE

"SUNDA" due 12th July "SHILLONG” tenda 17lia July

From UK.

fer Singapore, PL. Bwet- tenham, Pening, Rden, London, Ham- burn, Rotterdera, Ant- wees & Grangemouth from UK. MÔI TA" đầu sách July "SALSETIE” dos 30th July

from UK.

dee 15th Aug from UK. "SOMALI"

BRITISH INDIA 5.N. CO., LTD.

1858 - A HUNDRED YEARS OF SERVICE -- 1858

"SANGOLA” dat 17th July. fream Calcutta, Bangooo

sak 18th July "ITINDA" Bus 20 July salin Zig July “SANGOLA" đạo 12 Anh wills 7th Aug. “ORMANA” duo 19th Aug.

Kail 29th Aug.

for Japan

from Catrulla & Steaćin for Stanghal Di Japan. from Japan

ter Bingapore, Penang, Rangoon & Chiquita from Japan

&

for "Skipspore, Penang.

Rangoon, Calcutta Chutiagona

· P. & 0./B. I. JOINT SERVICE

"ISMAILA” due 12th July #alls 14th July due 27th July “UBLANA"

rails 29th July

"TAURA"

"OZARDA" due

due t0th July

maika Jóti: July Ith Aug, KÜS BÜL AUT.

from Korechi, Bombay, Cochin & Singapore tor Japan from Japan

for Smarpore, Codda, Bomber, Karachi, Bas- rah. Khurramshahe di Kuwait, from Bombay, Cochin, Je Bucspore for Jupes

From Japan

tor sipore, Borzbay, Karadu, Barat Khor- Kakima D Kuwait

EASTERN & AUSTRALIAN 5.5. CO, LTD. *NELLORE" saße 11th Jubr

"EASTERN” duo 0th Aug

for Labuhn, Bandakan, Rabati, riebana, uyd-

Melbourne Adelaide,

All venonly have thorty to call at any porta e er of the route & the route à salllogu arů zabjøet

to change or amendesent with or without mollow.

For full particulars apply to a MACKINNON MACKENZIE & CO. OF HONG KONG LIB. Telephonic Hos: 27721-4.