1957-08-05 — Page 9

THE CHINA MAIL, MONDAY, AUGUST 5, 1957.

TRADE and COMMERCE SECTION

Page

U.S. ECONOMY LEVELLING-OUT Hongkong Stands

New Price Advances

Add To

Fears Of Inflation

By JOHN MORKA

Now York, Aug. 4. Business trends in the United States continued largely mixed this past week with both the soft and strong segments of the economy undergoing some further lovelling-out.

COTTON Large Investments GOODS Start Industrial MARKET

New York, Aug. 4. The business pause in cotton grey goods trading, dating back to late last

continued un-

spring, broken this past week, although many weavers re-

mained confident that "turn for the better" is not

too far off.

On the minus side-and adding to the inflationary pressure were new prices advances for pig aluminium and aluminium products, auto tyres, fears of possible hikes in oil and requests for new boosts in rail-change banked on the normal road freight charges and airlines travel.

posed by President Elsenhower. The Dow-Jones Industrial aver age on Monday lost 6.31 points on average, closing on the day at 508.25, Gulf Oil, directed by

During the second quarter

Manufacturers counting on a

resumption of fall buying, which may be expedited this year be- cause of the low stucks of The plek-up in the nuto and

finished fabrics held by garment Housing industries so evident in

alone, net income of all report-cutters, picce goods buyers, June now appears to be losing

ing companies was down 5 per wholesalers cad retallera. momentum. And the steel in-

cent from the preceding quarter, dustry is now talking; more in

with the number of companies terms of its biggest improvement the cutback to hold its Imports reporting decreases slightly out- sometime in the fourth quarter, to 111,000 barrels a day can-numbering those showing m-For rather in, as previously anti-siderably under the 133,000provement, For the manufac- cipated, in the hind.

barrels, scheduled for the second turing groups together, the net half of 1957, Was the

most income for the half year was up 7 per cent, but for the second quarter alone It was up only 5 per cent.

Furthermore, the sharp re-heavily hit as rumours of the versal in the Inventory depletion | cutback spread. trend and evidence of consumer sporting caution also cut into business optimism. There was disappointment with the stock market, prices suffering their sharper drep since February.

Record Outlays

for

¦

On the plus side, there were forecasts for record outlays construction. First half construc- tion awards during the first half rose to 17 billion, up 5 per cent from the 1950 perlod. Mean while

enzees retail

continue stable and non-agricultural em- ployment remains steady, hav- ing fluctuated less than cent since last November.

and

per

Investors sold off, the issue closing 2% points lower, Socuny Mobil, leng likely to suffer from the cutback, cased point and other vila had fractional losses.

And now several industries are releasing information on the amount of wage and other being absorbed,

The steel

is

The low inventory situation was pointed in a virsey by the National Association of Friishers

Textile Fabrics, Spot 40- squares, average make, were sold around 17% cents while milis were asking to a cent more i for the fourth period.

SPOT GOODS

Output Upwards

113th In World's

Largest Banks

New York, Aug. 4.

The Hongkong and Shanghai Banking Corporation of Hongkong stood 113th in the free world's 500 largest commercial banks, the Ameri- can Banker réported today.

¿

The Bank of America is the world's biggest bank with total deposits of $8,987,226,893 at June 30. It is almost 5 billion bigger than Europe's top bank-Midland Bank Ltd, of London, No. 4, worldwide.

London, Aug. 4. After 18 months of vitual stagnation, Britain's industrial output has now started upwards, thanks mainly to the very large invest- ments in expanded facilities, which British indus- tries have been making for the past two years. In second place is the Chase Commercial,

Lisbon, 321st Normally investors, both private and institu- followed by the First National Union of South Africa, 320th; Manhattan Bank, New York, Volkskos Limited, Pretoria,

National tional, should be expected to buy the shares of city Borik, also of New York.

Bank of Pakistan, tomorrow's successful concerns but this past week

Barclays Bank Ltd, Londen, | Karochi, 412th; Banque Com- with deposits of $3,912,022,017) | merclai Du Maroc. S. A. has given no sign of it.

ranks No. 5, with Lloyds Bank Casablanca, 448th; National Book Ltd, London, No. 7, with deposits of Greece and Athens, Athens. 448th, Bank of Ceylon, Colombo, of $3,347,826,327.

448th Overseas-Chinese Berkang Corp., Singapore, 485th-United PTOIR

PETROLEUM

INDUSTRY PRODUCTION

Gains In the leading in- have dustrials his past week been rate and moll in most

COMMERCIAL.

in the Western nations,

୯୮:୯%, Imperial Tobacco, which Of the 10 largest commercial had been heavily sold short, banks gained 1/94, on professional five are in the US three croi buying.

HEAVY FALLS

The work

Britain and two in Canada. Of the next 10 ranking banks, seven are American, two are Briush and one is Canadien.

The largest bank in France... has seen heavy falls in U. S. and Canadian Credit Lyonnats of Lyons-renke apilar stocks. This sector had 22nd in the list. Brazil's biggest New York, Aug. 4. started out several weeks agoBanen do Brazil, S. A. of Rio de Janeiro-ly 27th and Japan's highly The petroleum industry to furnish

Popular

| largest — Fuji. Bank Ltd. of route for -British cscape Western raised

nations

**2] Tokyo Ltd.—Is Sith. capital which could

buy Australia's pro- dollar shares

Middle Banca in the and investment East and pay for them

Ability to get spot goods' in amounts needed for the time being may be giving consumers a false sense of security, executives felt. They contended in industry

extent of these spot holding; ore

The next day, the Interne tional Oli lentes, again led by Gulf, also closed lower. Dome- wages six per cent on July

expected to gain an advanced prices to add only stic psible price rise and an from a

four per cent to sales, according to its leaders.

increase of over 200,000 barrels a day lù production, spurted. Gulj lose 19%, Secony, Ya. Jersey Standard Domestic issues showed gains

under ranging two points. Oil industry circles generally believe that the Inter- national Carriers will try to soll of any excess overstas produc- Hon in other markets.

of the

Tyre Wages

1

Tyre wages have risen slx per cent and prices are being raised three per cent on yzes and thred to six per cent on other rubber products,

Aluminum

could

vanishi

some

Wer

in

World

Other

italy and largest banks- Nzionale Del Lavord,

US COMPANY TO BUY AUSTRALIAN COAL FIELD

an

New York, Aug. 4. Negotiations by American company for the construction of a $250,000 glass factory and operation and purchass of extensive

was

being exaggerated red they managed to pet new quickly with duction anything beyond the currant records in 1956, despite sterling, when the government Rome and Bank of New South Wales, Sydney-rank 38th and 01-in demand.

the Suez oil crisis, ac- discovered this and blocked the 36th respectively. In cotton yarns, activity in

exit, the dream

All of these braks have industrial counts thus far falles cording to the Chase Man vanished."

deposits in excess of 1 billion to show the seasonal revival. hattan Bank's annual

OIIS

dream another Trading cautioued to be limited analysis of the industry.

LEADERS to 12-in lols for nearby delivery

world which fared badly this in most instances, Hopeful note

Royal Dutch fell 18 Total consumption of petrol-week.

national leaders and yar sellers [ cum products Jack the ares shillings, Shell Transport about their standing worldwide follows: was injected by following reports of

improved amounted to 15,600,000 barrels

abillings and British „Svenka. Handelsbanken, Stock- sales prospecta from the auto daily last year, an increase of Petroleum sume 5 shillings. holm. 65th; Swis Bank Corcoal fields in New South costs, including industry. Some carded end 7.4 per cent over 1955. Crude of The normal cause of the break poration Basle, 59th; Sueddeut- Wales, Australia, have been But the spotlight this past They were inclined to mini- week uah continued to resolve mise the overall effect

wages, rose eight per cent in the combed vam sellers sald a price production averaged 14,300,000 was the action of the U. Schoe Bank Aktiengesellschaft, delayed pending receipt of year ended June 30. The ecm-crease of two to three cents a barrels daily, a rise of 78 per government fxx slashing oil Frankfurt, 65th; Banque do further details from Austra about the tightness of money President's cuthack reducing al-

Inflation consideret by towance Imports

panies meanwhile have raised pound is in the offing, but be-cent over 1955, the Bank study | imports

Sea- Societe Generale de Belgique, lan authorities, it on its Eastern to 1,031,000 aluminium prices by slighty les cause of the slow pace of sales sald. most experts the No. 1 problem barrels a day from the planned than four per cent, Oll com right now It might require co-

board by some 10 per cent. It Brussels, 70th; Banco Espanol had been an irregular market De Credito, Madrid, 70h; Neder learned today." facing the ration.

import levels of 3,245,000 barrels. panics pushed prices up small other few weeks to effect the

even before this blow to landsche Handel Narsischepp Major interest centred about The culback amounts to 10 per fractions when they raised wages change.-United Press.

profits fell upon it.

N. V., Netherlands, ist; Turkiye Coal & Chemical Co., & sub- A spokesman for Simpson Cumhuriyeti Ziraat average, but competition and big. Inven- future interest cent of the 1854-50

them taries forced them to retruct the rates already at 23-year peaks with importers deciding

Foreign bonds seemed to live Ankara, 112th; Hongkong and sidiary of Standard Ore & Alloys to cut imports risc. In fact, the subsequent re- of the 23.8 bilion refunding selves whether

a cheerful world of their Shanghai Banking Corporation, Corp., disclosed the company from Canada. Venezuela or the auctions were double the origin- offering made last week by the

own, probably because can-Hongkong 113th; Kansallis-Osake has submitted to Howard Middle East principal US 11 rist. US Treasury, The Treasury

Uinentals went after

has been par- some of Parkki, Helsink!, 149th; Bank of Dunston who offered three types of issues: A sources. Middle East oll would

thom. German Young Loan New Zealand, Wellington, 157th; ticipating in the talks here on four-montfi

paying most

gained 1 and the two Potash Banque Misr, S. A. E., Cairo, behalf of the loans 2214. Japanese also 100th; Bank of Ireland, Dublin, New South Wales. showed some modest rises, led 215th; Bank of Taiwen, Taipel,

Dunstan, he said, has since by the ever active 1930s which 239th; Creditonstalt Benkverlen, gained £ both assented and Vienna, 202nd Privatbanken L transmitted the lot of questions bonds Kjobenhaven, Ak, Copenhagen, to his Government. He la now non-assented.

206th Bergcas ivatbanken, in San Francisco on govern down. fractionally

are Bergen, Norway, 301st; Banque ment inission to altract U.S. substantially

the

effect on

certificate

likely be affected,

3% per cent; a one-year certi-cording to reports here.

ficate at 4 per cent and a four- year 4 per cent issue redeemable

afler two years,

Mixed Trend

the The stock

Financial exports feel Treasury rates described by government officials as highly successful, the redemption rate being only 5 per cont comTM pare to 28 per cent on a 4 bon issue In May--will have a wide- spread effect on the entire inter- est rate simiclure in the country. As expected, the 34% per cent rate on the four-month certif- cafes helped boost the yield on the Treasury's weekly 01-day bills last week.

Rose Sharply

40-

in

All these developments have given many businessmert reason make some new to pause and evaluations. The big fear is that while the general level of busi- ress may remain high, some markel generally special segments might be has been disappointing, re- for some really heavy readjust feeling the mixed trend of mid-nents. Profits may suffer, it is top of that. year earnings reports of major reasoned, and on corporations. Prices hit their 1957 many are wondering just how peak about two weeks ago, hav-long currently strong consumer ing recovered the ground Ioel diemand will from last summer's high to the Press. February 1957 low. Trading in- terest appears to have dwindled considerably, with turnover at or near lowest levels in months.

Some observers are not 10 pessimistic as this recent trend might indicate, however, For- tuvo Magazine, for example, in its semi-annual survey of what investors are planning to do in the stock market, Änds that during the second half of 1957,

The Treasury bill rate rose sharply to a point close to the Juno high, the average rate on the discount bills coming to the tow-Jones Industrial over- 3.363 per cent,

compared to age will average above 500-mi 3.158 per cent last week and probably 515. Its poll of over 9.404 per cent on June 17. 400 Individuals, over 120 stitutions and 45 brokers "Investois intend to make corporate Insiders, reveals purchases at an annual rate nearly 3.5 billion of stock in the second half of 1057." This is considerably more than

Some quarters feel that it is now only a matter of "timing" before the prime rate the rate charged by commercial banks their best customers-will be increased, possibly to 41⁄2

4

in- and that

net of

common

the

cont from, the current 4 per cent 1.7 billion rate and abova level. With the Treasury's

2.3 billion rate at which they

tween January and June.

per cent mte for one-year money actually purchased stocks be

continue.United

Raw Cotton Export

į

At year-end, the Chast analysis reported, reserves stod at a record 200 billion barrels sufilcent to mrot demand for many years."

GAIN ABROAD

Amerleen oll company divi- dend payments role to new high last year, but the relative gain abroad over 1955 was greater, the Bank said.

In

1 said the 33 major Arms were

Chinese

Brakasl

Government

D

New York, Aug. 4. Haw coticn exports by destina- tion us reported in bales by the New York Cotton Exchange for the 1056-57 season to July 30 were as follows:

1,000,632 Combined "net income of 3,003,-dog the week but they are Nationale Four le Commerce it investments Britala Continent

3,372.816 000,000 against 2,088,000,000 in when viewed against their 1957 Lindustrie Afrique, Algeria, Wales enterprises, Ite is ex-

a gain of 12.8 per cent. i highs, the 18981, for exarbpie | 305th; Banco Espirito Santo

Orient Canada

covered by the study reported a

2,020,770 1955,

478,00] Total for period"

2002,137 Cashi Same period last year? 3218023

excluding Inter-United Prom.

PRICES SLUMPED AS PROFESSIONALS DUMPED STOCKS

By ELMER WALZER

New York, Aug. 4. Professionals dumped stocks for a time during the past week with the result that stock prices slumped without apparent reason,

They did their heaviest selling on Monday when the industrial average lost 6.34 points and rails fell 8.01, the widest declines in these averages "Since, the volume of new since Feb. 11.

.

nol

relaxed there ap-

WEAK SPOTS

dividends

all down

amounting

10 closed

their

very

at 12 compared with peak of 17 carlier in

$12,260,000,000.

Of the record reserves, 70 per the year. cent lie in the Middle East, 16 per cent in the U.S., seven per cent in Venezuela and eight per cent in all other countries, Chase said.

PERSISTENT

Feature of the week has been the quiet but persistent buying of stocks Government It said The trend toward British

In calm transporting 011

bigger which as gone on Iri quantities produced a trend to- disregard of the weakening of ward larger tankers and sterling. creased the West's tanker feet to more than 42 million tens et the dose of the year. Voited Press

WEEKLY NEW YORK

COTTON MARKET

New York, Aug. 4. Cotton futures staged Emart mid-week rally after a

a

In New

South

pected to return

to New York around August 12, at which time the negotiations are expected to

TIDEWATER be resumed.

WANTS MORE

CRUDE OIL

New York, Aug. 4. Tidewater Oil Co.

War Loans rose 15 shillings to £67 but this should be viewed against its 1057 high of $15. Old Console rose 15 shillings to 250 7/16. It's 1957 today asked the US government to let it in

pealt was. £55.

But sterling drifted down (crease crude oil imports The above the amount per-

from 2.78% to 2.78 6/18. Bank of England-under ik

agrtement with the Interna mitted under the new

Fund will import formula.

tional Monetary Bol permit it to fall below 2.78 and in view of the large sums

Tidewater,

any

Whlch

SUBSIDIARY

Standard Ore Vin its sub- sidiary has been considering possible leasing and purelinse of New South Wales bituminous epal find coal mines. The com pany also interested in buy- ing as much 10,000,000 tons of Cessock Coal for export, mainly to the Far East,

"We are still very much in terested in the proposition, but we want to have more facts before we take the bait," the United Press.

Simpson spokesman fold the

"We have anked Dunstan to

additional sexy.

Information from his government and when imported we got them we will be in

in dollars which the Tresbury 22,200 barrels daily last year better position to make a definite kas arranged to use, it and had scheduled a big increase decision." Becessary nobody bs really to 84,600 barrels. this year, troubled by that approaching charged that the governïnent, Among the question posed to 2.78 gure-United Press.

formula under which it would the New South Wales "Govern- have to hold imports to 34,200 ¡ ment is the attitude of union and barrels dully is highly dis-government officials to into in- criminatory “ngainat, the comtroduction of new labour-saving und cost-cutting mining equiɲ- "En View of the obvious ment to work the coal felds. Inequity of the reduction sug- gested for Tidowater the com- The company is also secking pany has requested Secretary further information of Commerce Mr Weeks to quality of the coal fields,

"If the answers are favour- grant a hearing to make a rea- soruable adjustment.

able," he said. "we could close the deal in rapid order."United Press.

faltering start only to run into The Bank Of France stiffer opposition and close on Lowr ground for the second time in a row.

Statement

equal to the prime rate, bankers ordinarily would want to main- tain differential between the costs of borrowing for the Trea- issues of common stock is sury, and the prico if charges on

likely to increase, present plans This type of selling was more 500 stock index it was calculated Its prime cans. This upward should tend to push prices up." advance In Interest mtes now Fortune noted.

of a market test then anything that nil stocks lust a total "On the other olse. The market held up well, paper of around 3.4 billion. pats the present rediscount rate hand, the survey Indicates that the experts said, but later when of 0 per cent considerably out investors do not expect prices the pressure of line with other rates.

to rise above 515, and strongly parently was no desire to re-

At the close co Friday, the in- go above purchase stocks. Talk about a like in the re-uggests that if they

At Friday's close the 11t discount rate has subsided in that they will meet with roul

the railroad dustrial average was dones 15.67 the whole Treasity bill resistance,"

issues out-performed the other points or three per cent from ruled off 18 to 30 points, or 90

Paris, Aug. 4. The rally had a good the year's high set on July, 13 cima to 1.80 a bado lower than

The Bank of Frice statement market on Wednesday along with and rails were down 7.12 polats the preceding week.

the week ended July 25, At the aw levels, the market reads as follows: utilities while idustriala door five per cent from their top

chowed a 'cumulativo fall of

France With higher honey roles saki nearly 2 points en average Amished the wook spots of the the ecason's highe mudo varlice

clined. And on Felday they rose set on Jan. 10

Metals, olls, and special issues between 5 and 9.30 a bale from Zotal gold bolding 201206,302,420

other .:cut- tem the credit brakes, in view of to be in prospect and inflation traders anticipated

early

resoles ADRES

10,871,280,004 some business spottiness. Most cutting into profits, Wall Street freight rate rise.

week.

Bight balance abroad Mogma Copper showed a loss that the and businessmen were not quite

actori morb

elied for the EPU .... FINISHED LOWER of 0% points on a poor coatings

Advanop to sk face included: 1. Run Fund report. Internatictal Nickel lost mal of

recent weeks

rates declined.

There has been

also some question as to whether

the governinent money control- lets-the Federal Reserve Board

-wire prepared to further tigh-

i

Not So Optimistic

experts now 'think Federal Reserve Board will suri Re optimisite as they have been

hometer.

On

groups.

En

22h

plini has becki zaprly making up

Current scectants

for

VOLUNTARILY Earlier thin pást wook, President Eisenhower told major oll importing companies to slash -14,771.600.000||their cruda oll Imports volun-

On

Ahe

tarlls to speciled levels within The Bank Of England ·

the next

several months or 3,316,229,825,910 | face possible formal federal con

trols. 300 SEK OND ANT tud,093,302,051,910 -United Pres

NAMESAKES.

Under the plan imports to the East and Guld coasts are to be held to 12 per cent of donelle

Statement

Londol, Aug. 4. output instead of the 18 per content for the week coded: July The Bank of England "statė-

· scheduled by importers,

In recent weeks. Profi-pinching of test the market and gauge the

in the All groups finished the week 6 on a statement by its Préal-Conslatently favourable weather Bank notes

dulation the capital market further before Operations were noted

ista at 605.10 of dent the company would have to and crop news, indicating taking a definite move to like first half reports of many cor- lower, Industrials the rediscount rate. No one ex-porations. Net Income has also 8,49 rails 150,50 off 1.78; utilities dig up more buses after losing for time lost during the wit rom tills dimor

been on the downside. The 69.00 off 0.34, end 65 stocks out on increased stockpiling. plats any loosening in the tight Natiount City Bank tabulation of 175.23 off 2.01.

An Chombela had declinos ringing and cold spring season; 2. controls on the credli stream. 741 corporations' reports issued

Dadly aules averaged 1,174,830 to 5% in Eastman Kodak and 20% expected decline durinig ki tho for the half year shows net in- simres, a new low shoe Muren

Unicti Carbide Leading doubt whether the soveromant Juls pazily price, with attendant come after taxes of about 6,220, agminst 1,000,900 shares daily | stocis held in a narrow are loan rate for the 1967 crop will

It also said the formula woubl31, ends as follows. billion, an increase of 0 per cent in the previous week.

Amit Tiowater to processing N while the spacialities registered over the same period of 1056. ΟΙ

recently | Arwenc-1 Mariner, 3 Hook, only 20 per cent foreign crude Totas notên ki circulation the 1,377 issues traded, losses 'running to more than 3 be About three out of · Ave com- only

Pubilo, deponija.. 37% menépső · of 140 sei | points.

An increasing Blood, 4 Warfare, 6 Bar, while competitive rodneric on private indo Expected: panies showed gains. But second new 1037 lown while-27 set new Gulf Oll lost and Con-volume of Hedge molilag ne thel Captain; } Infuri," 8. Atalicum, the East coast will be permitted Gevarnautittescurlies 1.Of: word particularis vulner» 'quarter reports when compared highs.

tachtal Oil 8% ppants while crop movement pieka (up 9 Španish, 10 Deck, 11 Ship. 12

derecelles ablo, stemming mainly, from the with the dayt quarter bad some "On the basis of a loss of 017) Richfield gained 4 points, momentum in re statisworks Navigation, 18 Master.

wate ne dingaleting fenties.

point in the Standard & Poors United From.

·United PreRE.

Robert Zenkiak.

Elsewhere, stocks prices ex- parienced their sharport drop since February, with most groups

- participating ini süd decline.

SPU

فولط

to process approximately 64° por gons foreign crude. Usled Prasu.

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