1957-08-20 — Page 9

Page

THE CHINA MAIL, TUESDAY, AUGUST 20, 1957.

TRADE

and

COMMERCE SECTION

FRENCH MOVE SOLVES LITTLE THE £ STERLING

Mark Holds

Holds Key To Unbalance Of Payments

From RONALD BOXALL

London, Aug. 19.. French currency devaluation-for that is what it amounts to-is regarded in London not as an isolated action but as the initial move in a general readjustment of European exchange rates that is fast becoming inevitable.

HONGKONG

STOCK EXCHANGE

Our Own Correspondent

Business done on the Hong- kong Stock Exchange this morning amounted to approx!- mately $200,000. Noon quota tions and the morning's trans

actions:

Hhares Buyers Bellean

GOVT. LOANS

(148) BANKS

French devaluation is part of the tough new

It followed the paring of bank policy of disinflation. current budget accounts by £600 million and the was in turn tightening of credit control, and

INSURANCES

Union

followed by raising of French bank rate to its Lombard highest level since 1937.

The French Government does

not admit

that il currency | manipulation is a formal dc- valuation. But whatever h called, devaluation is what comes down to. And that Is the

most contral banks in way +cluding the Bank of

have interpreted at.

The Effect

England

!

SHIPPING Wheelock DOCKS, ETC.

pursur "good creditor" pall. What cles.

men's

10

Sales

3000 DO

000 100

30

115

10

கண்

02

200

5004014 500 40 11.00

600 44 18:40

7.30

7.10

Dock Pvident (0) LAND, ETC. HK Hotel.. HK Land Humphreys 10.50

4.47 1.00

23.00-23.00

60 a 20.00 1000 10 ZATU 1000 @ 20.70

103

· ·

HEAVY SELLING IN

NY ON NEWS OF SYRIAN COUP

New York, Aug. 19.

Stock values were slashed over four billion in the worst market break since Oct. 10, 1955, as ROWs of the Soviet-inspired Syrian coup touched off heavy selling.

Losses in all groups ranged to two and three points and there were some drops of seven points or more among issues such as Gulf which moved off with the International oils, hard hit by the Syrian news.

Reaction to the Red move in Syria was heightened when William McChesney Martin, head of the Federal Reserve said "we are reaching System

where out place" Javelling moncy

rates may stabilise and even declina This led Wall

41) 1.10

10.40 1035 3414 30% 2000 2016 Street to conclude inflation is loring push hd giving way to defationary forces, more feared in financial circles than inña- tion,

Industrial points on overage 800 @ 10,70 | their lowest level since April 12.00 5. It was the widest break since 657 64 29.70

followed which selling 2150 $ 20.70 the

Eisenhower's Heart President

Despite the hardness" of the still regulates mark, Germany R

Its internal economy along lines

RUBBER more suited to disinflation.

Analy Besides it had until recently | UTILITIES practically no defence commit- Tram...

this helped it and develop is forelim trade at the Yaumati txpense

other European Light 10 10.00 10.00 (ts) 120 12.00 And while Britain countries,

Eleetde 201 2000 moves and others of Germany's neigh- exporte will rebours are facing labour hort- Moeno E. celve a subsidy of 20 per cent, ages resulting in rising wages Telephone while Imports (excep! of es- and higher sential raw materials) will bear] Germany cent. Tourists "pont of tax of 20 per Koing to France will get franes fugee population acting against Win 20 per cent cheaper in the any tendency for wages to rise, official exchunge rate. And

The effect of the that French

Frenchmen travelling abroad

will pay 20 per cent more for

foreign currency,

In other words the

· has been devalued by 20

cent.

production costs INDUSTRIALS

33 ready-Rude Canent 3254 A uncmployed" In re- STORES, ETC

has

Plain Speaking

Next

Do

per hational Monetary Fund consl-

ders implentions of the French

Deity

27.80

COTTONS

600 v 27.00 attack, DOG, EN DZIA

15.40 15.00 2000 g 18.00 32.40 12001

4.30 4.300

500 27.00

INVESTMEN

Yangisze

Alllad

0.00

Toxules

Nanyang

4.16

I.K. & F.E. Important date is Suplember 15 when the Inter-

Invest. XD.

stocks to: 9.23 Lo, 478.95,

The Decline

For raile the decline amount-

cd to 2.30 points pushing the average back to 140.35, lowest the point since Feb. 12 when KBS 3000 € 420 lows of the year were Bel. Ulides lost 70 to 67.71, their 10.20

lowest point since Dec. 25-

Activity was stopped up to 2,040,000 shares from 1,470,000

בוד

Lowenstekt & Sona McDonnell Alrezati Am

Stock ) Mesabi Iran Corp. Minnesota Mining Monsanto Chemical Co. Julssion Development

Montgomery Ward

10!

3015

34

36

National Canlı Reg. “A

50%

331

National Lead

20

Motorola Ine.

National Dairy Prod.

National Steel

New York Cente on Mathieson Ous Elevators Owen-fillets Glas Facile Gas & Elec.

Fan American Airways Paramount Pictures

Tarko Davis Co.

Penny C. Co Penn, Salt Co. Phillp Morris Procter & Gamble Co Filtburgh Plate Gloss Poblcker Industries

链

14

RECOVERS ON

WORLD THE CONTINENT

RUBBER

MARKETS

Itex

New York, Aug. 18,

today rubber futures

closed 12 to 20 points higher with sales of 64 contratis,

September

November

Josuary March

May

Juke September

22.10 32,02

31.25

31.00

31.70

31.00

12

n0

Standard contracta closed

to 20 points higher with sales reported.

September

November

January

March

May

July

September

10

3102

31.

31.30

3.13

London, Aug. 19.

The pound sterling recovered on the boursËS of Europe today after last week's fall.

Norway was the sole exception; there the rate was unchanged.

Ostend: A short-livedi panic; the rumours euzten throughoum the possibility of igneo this morning here among Europe of Brial tourists mad brokers, asĮ devaluation.

a result of weekend press re- A feading Austriam porty of sterling "instability.” said today “chicfilly we do not

Panghani Most of the brokers and bank | bellevs

คม branches refused to buy pounds, devalue He currency umbeste ting Almost alone among the bantes, situation greatly and soakley the Societe Generale de Bei deteriorates-and gique accepted pound notes, but sign of this at present.-

Customs only from

British tourists, on

oddestrame the basis of £10 from each of quantities of pounds at Vilnia banks Loday were advised De Hotellers id some Britons same days or even as long as two weretet, as banke optical got alarmed and checked out to return home by the Dover le perod the pound would reSTEDET

believerd Cheat wwwfre boat. Some money changers

them.

weck.

of

bought pound banknotes for as De of the Horses of the Bat Q routine little s Dealers reported

120 Belan francs- situation on the terminal and compared to

Movements last Saturday's

Kokand actuals market. Slightly high lowest rate of 125 Belgian francs normal; and there was no radit

sterling Were sted s London cables and Drug of for a pound shipment offerings kept a curb

buy gold or German medis. on selling, while small dealer

or to sell sterling buying orders predominated,

Switching operatione also fea- tured the small trade. Exchanges Brussels Bourse from its down-sidfembly. In the Ext few days. had regained resulting in Anwer quotations for Included July 40 points und ward trend and

forečza currency at the Auster- Sept, and Noy 10 points unde, some points. Sep!.

dam Stock Exchange.

Reports about the possible 6 revaluation of the pound sterling 40% had a restricting influence over

general market Interest.

Domestic factory laterent con- finuce slow 101 the delivered market. Spot No. 1 Hy was 20% quoiod at 32% cenITE

40

307

But just before noon Ostend's bankers and brokers got word from Brussels that the sterling bad recovered on

pour.d

The Bic

Dutch has

strengthened conte

Both the Guilder spond tie British pound sterling wanne in stronger positions today than I Saturday.

This had an immediate effect. reported Banks and brokers "position back to normal" and tourists had no more difficulty in exchanging their pound note,

The GesHIJR Mark and ther Vienna: The rate of sterling security dollar vermeinet BREZER hos remained normal despite Keuter.

SINGAPORE

40+%

Radio Corporation

Republic Steel

Reyunda Melal

Bents, Roebuck & Co.

|

Shell Oil Co.

Saint Reg. Paper

201

Scheldir Of

37

The market opened higher on rumours of currency devalua- Hon but eased slightly 00 profit-taking in a quiet and cautious markol

*

*

Borony Mobiloli

Solar Alternfl

South Puerto Rico Sugar Southern Co. (The

There was a fair enquiry for 15% lower shreis,. (actories тесто

23

Sevthern National Cas Southern Railway (Corn). Standard Brands

10

quiet with only small Interest shown in remilled grade,

.40

Futures;

Standard Oil of Cat

move. This will be an occasion New York Foreign thres traded on Friday. The Standard Oll of Ind

The difference between the for some plain speaking. method chosen und, the bald Junnouncement of devaluation is

One possible solution that is being canvassed in London is modification of IMF rule that forbids exchange rates to de old (oMcial) rute-and this it viate more than one hoped will

that France wil sult unport essentiri raw materials at the

French either

parities,

prevent

internal costs from rising and

thus negaling action.

from WAY

per cent declared

If wider fluctuations were permitted perhaps as

opinion In foreign exchange levels,

at more

Exchange

183

Standard of NJ. steep Rock Torento Exge.) Stering Drug Co. Stokely-Van Cump studebaker-Packard Corp. Swift & Co.

market waa a broad one with 1,140 issues traded, 832 of them lower, 134 higher,

un changed. There were 160 now luws set, only four new highs.

The unfavourable news Items 210-12 hit the market just as the ex-Twenty Century Fox. Film

New York, Aug. 19. Closing rates were:

1.05-15/10 Canada England ometal

unofficial 30-day 90-day's

2.46-2.67 ZIY

2.2274 1.77-7/10 2.78-13/10

A

Other unchanged,

-United Pres.

Australia South Africa

It remains to be seen how far much as ten per cent either New Zealandi

way exchange rates might devaluation will help France

realistic settle down out of Its present troubles. But

Ger. One thing la cerinin! tlant markets is

the French nction does not end the matter. many is determined not to net alone. Dr Erburd, Federal Economics Minister, admitted Fast

week that the mark under-valued, but said Germany

General Reshuffling

Exchange Rates

nstributed to

Texas Co..... Tide Water Assn. 01 The Inc.

Union Carbide ...........

મ

Union Pactite Railway United Alrezast

United Gas Corp.

U.S. Foll "D" US Gymam

U.S. Line Co.

had been perts

predicting 113-23/03 recovery from last week's break,

doclino

such factors

too as light money, a small freight

rato rise, less optimistic fourth quarter fore- the absence tasty In

of any upside incentive.

14: Bethlehem Steel, off Anaconda, down 34: El Paso Natural Gas, a 134 point lower: down 13. and Clurysler, off 2 points were the most actively traded issues,

Now York Stock Exchange bond volume was $3,710,000,

American Stock Exchange

in the local Daming was done unoilleial exchange market UUS Steel,

For months pust a situation has had no intention of revalu-morning at the following rate: has been developing that coulding the mark excent as part of only have ended in the devalua- i general internationsi currency tion of the frane or revaluation | revaluation. — London

of the West German mark or a Service.

combination

of

both. The

underlying problem is still with

us despite French devaluation,

And before it is

may have to be

solved there

14

general

peshuffling of European change rates.

Ex-

01

The present unbalance European payments mainly concerns the franc and mark

but over-valuation of the former and under-valuation of the latter has strong Im- plications for other European eurrenales.

The series of anonthly French deficits in the European Pay- menis-Union reached a climax

in July when settlement called for gold payment of about $100 million. This and previous de-

Express

U.S. dollar (per 31) Sterling notes (per £1) Australian news (per 21) Indonesian

0.05

18.20

rupiah (per 100)

Stam tical (per 1001 Singapore (traits)

12.30 10.20 27.20

1.80

Cotton Futures

Have Quiet Session

New York, Aug, 19. Narrowly mixed price changes accompanied

another quiet session in cotton futures today.

Nearby deliveries showed net losses most of

Bells have practically exhausted the time while new crop months managed to show

French reserves und brought small gains. Franco's cumulative deficit with

EPU to over $2,000 million.

even

as much as they wore two years

ago.

volume was 780,000 shares.

Closing Prices

Alden Inc. Aey.

Allied Chemienie

Alled Mille Inc.

Allis Chalmers

American Airline American Cyanamide Co. Amer. & Forgn. Power Am Gas & Electric Am. Mach. & Fdry Amerka Motai ... American SavelUpg Am. Sugar Re.... American Tel. & Tel. American Toh. " Anaconda Copper Armos Steel

Ating Cons. Mining

Baldwin-Liina-Rain. Baltimore de Ohio

Beneficial Founce Benguet Con

Bendix Aviation Corp.

Bethlehem Steel foeing Airplane Bordon (1) Cu

[ [103]

70%

415 No. 1 rubber per Ih. Sept. 931-037;

P.OBI EA

COMPANIES

PASSENGER/FREICHT SERVICE.

PENINSULAR & ORIENTAL S.N. CO.

Genres Lam Sathed XX Tist Anginst

Zth Acipat Zlod Sebast

18th September

1st October,

2012 Opfaber

Vie #onthemostat,· Culmacho, Inchong à Sincopum.

Memewards

Leaver Bangkang. Die Landhan 200

53%

OCL 94%-0513

501

Nov, unquoted

17

No. 2 rubber per lb. Sept. 92-922 No.

13 No. 4

15

Spot rubber undated

*

5

Blanket crepe

03-65

331⁄2

No. 1 pale cupe

101-103

LONDON

Optwarda "CANTONTM"

2012

100%

The rubber market

closed

>

20

steady with spot quoted at 27%.

"CARTHAGE"

59% xd pence per lb. Prices,

*

3154

No. 1 Kas apoi .......

274-271

"CHUSAN”

Settlement house term

CO

Aug.

27%-2715

2014

Sept.

433.

Dot./Dec.

STIL-20

4201

Jam/Mar

Aprune

July/Sept.

007

General markets, cif basin, poria:

13

Aug

за

Sept

Zis buyers £76-275

40

Uited Press.

Estate crepe thin Sept.

thick unquoted,

AMSTERDAM

Tho rubber

market "wDS Priece closed in

*

1.84 buyers

201

US. Rubber .....

U.S. Smelling U.S. Steel Warner Brust Westinghouse Electric Westem Union Tel. Co. West Va. Pulp & Paper Woolworth

MILD SETBACK SUFFERED

IN LONDON

London, Aug. 19.

اين

scady-qulet,

guilders per kilogram, cif Sept

as follows:

No. rubber

No. 2 rubber No. rubber

No. 1 crepe

2.04 nom.

Ualted Press.

The stock market suffer. New York Sugar

ed a mild setback at the close today "with

losses

ranging to a dollar in the unsettling atmosphere of a pro-Soviet coup in Syria and

5 uncertainties in foreign ex-

1031

change markets.

Market

New York, Aug. 19.

World No. 4 sugar futures today closed eight to 37

An exception, to the general points higher with sales of downward drift was South 909 contracts.

61 African gold shares which do

British Government bonila: closed unchanged to four points rallied from their lows in late higher with sales dealings reflecting the better

"CANTONTM*

Ang: 200 Smplexavet

25ch Svpfenber

zzin. Chybabang,

MI: October

"CORFUTM

"CARTHAGE" “CHUSAN”

3rd November

Son Havená

20th. MenezČNE

Via Singapore, Penang, Cilento a Minn.

FREIGHT SERVICE,

4 2012 Aug

GROW AR KOTĒZIS

*80MAI**

"SALSETTES. Kokāts zend Ang. sails Zhed Aug.

"SINGAPORE”šne Zitų AUE.

Loads 3rd Sept. valls da Baph

for Lension. Manhang.

faktordans, ASTMED THE

From TX.

tes Loodan, Barsborg, Rectendan via Strains à Ades

"SOMALI"

BRITISH INDIA S.NL, CO, LTD.

1990 — A HUNDRED YEARS OF JORREN

“BANTIILA" in Port

mangoers, de Calzina

sets 1st Ä»

“BANTILIA" dan 942 Eeps, kassa 10th Sept.

Truma Zapmie

*TTINDIA" de Sth Sept.

JOR

*

*

*

veloped good support,

Domestic No. 6 sugar fatures

of 127 con-

truets.

World contracts executed a

P. & Q./B. I. JOINT SERVICE

“ISMAILA" the 2015 Aug.

Kaila 27od AVL

Hundry.

#

"TIOLA"

due 23th Aug. malis 3ink Ang.

tone in sterling.

Oll shares weakened on Mid-sharp turn-about after the price collapse Inte Friday. Most of

Tosses of up to a dollar were

At the close the general list

Burroughs Add Machine

Spot

33.10

Campbell Soup Co.

Det.

33.77

Canadian Pacille

31

Dec.

33.00

CG (J.I.) Co.

17

Mar.

34.00

Cal. Tradios

#24

MAY

34.00

Celanese Corp.

14

die East developments und

July

Oct

22.00-07

CLT Financial Corp.

42%

Cham Manhat. Bank

303%

recorded on a broad front.

the loss suffered then was re- covered under technical cover-

Dec.

32.91

NEW ORLEANS

Chrysler heater

Cumax Molybdenum

Commerciad Credit

Commonwealth Elec.

33.24

Consolidated Edison

33.00

Continental Oll of Del.

33.49

Crown Zellerbach

BLC3

Cuban Amer. Suger

50

饰品

36.00

Diamond Alkall

33.00 32.00

Dow Chemicals

on

Pricca of cotton futures closed Colgate-Palmolive Co

con- culton

Dec

Mar

May

July

Oct.

West Germany on the other ruled oft five to 12 points hand has been raking in gold higher. Opening prices were off up ix points, New faster than France has five to boen losing it. In July is EPU Orleans closed up 11 to 13 surplus reached a record $180 points. million.

Accumulated week-end hedge Its cold and doller

selling and liquidation kept u nearly $4000 routing reserves are now million (compared with sterling plies in old crop anunths.

rate demand-over-sup- today as follows:

Spot aron's $2,307 million) bringing

Now them to half as much again as diminishing chances for

crop months reflected Oct they were a year ago and twice

gressional action legislation at this session.

The Senate Agricultural Com- mittee approved u bill to sell surplus cotton to domestic texile, mills at cut-rate prices. measure authorised the Agriculture Secretary to sell of 50,000 bales to domestic con- sumers annually for a five-year period. However, traders thought chancer for congressional action In one sense the onus

is on how are nil, to make

The certificated stock showed other countries

their currencies

the another sharp decrease, dipping strong mark. They (Britain included) 1,835 to 3,011 bales.

Out Of Balance

not

French devaluation will

situation for der .correct thin

many's payments are Ou! balance not only with Francs but with other European coun irlts.

03

The

Month

have pursued policies conducive t to inflation and if na a result, Dec. external value of their curren- Man eles has fallen, they have no May one but themselves to blame.

Juty

Oct

Dec

But this is too ́namow an Ton

Interpretation of přešoni, uh-

halanon, Germany it is argund

by that country's critime · bas

LIVERPOOL

Cotton future closings, pence per lb. were as follows: Old contract

Doutes Aircraft

Dupont do Nemours

Farter ARTI

In Eastman Kodak ...

El Pap National Gas

Family Finance Corp.

Firstone Tyre & Rubber

Ford Motor

General Elecizie

General Woods

General Motors

Gen. Pub. VUL

detty Olt

Gloden Co.

GOC (B. F.) Co.

Heydan Newport Corp.

take Muring Co.

419%

British Petroleum and Eur. ing and a trade demand at the

lower prices, mah Oll were hurdest hit,

The raw market ruled steady Industrials closed with mostly and unchanged with the prin- fructional losses.

cipal demand involving Brazi- Deilar stocks were mixed at Lana Dealers understood the

trading United Kingdom

the close of quiet United Press.

London Foreign

Exchange

Landon, Aug. 19, Closing rate were;

Now York

Montreal

BU

Amsterdam

33744

Brumels

320

Copenhagen

TX Frakturi 35 Millagi

Oct/Nov.

20.00

Dec/Jan.

20.TA

*Mar/Apr Kay/Jun July/Aug. New continet

20.43

20.70

29.90

Oct/Nov.

20.84

Dec/Jan. Mar/Apr.

21.00

77.34

May/June

27.35

July/Aug

3.4

Cur ou

ĐẠO PAULO

Volume Open Interest

1,000 172.100

8,400 271,000

3,000 159,700

2,100

140,00

Cotton cruzeiros follows:

future closings,

ja | Lgwol-and

stockholni

per kilo were

ов

Steel Co.

Zurich

Interchanical Corp.

401

Inti Business Machines

300

2,700

107,800

0,400

100,000

4.600

35.300

May. Juły In

Dni Horsenter

40.00

International · Nickel

the United

States,

the

International. Paper

NEW YORK

40.40

000,000 bales average price of one-inch cotton

Prices of cotton futures clowedi

duty by elker oguntries to today as follows:

(at 14 daighinted spot markola

was not available,

Tatal sales were 13,091. balas, United Press.

Intell

John-Manville Do.

Hannecart Copper

Liz Adwyer” Tob. "Co.

Lockheed Altonate:

Loews Inenep.

Les Star Comedi

ale last weck bought 40,000 tons of Brazilian raws whlic Italy was the be- credited buyer of 20,000 tons.

Other reports said" Jupan - kna between been negotiating for 59,000

tona and 100,000

орств Brazilian, while Cuban tota reportedly bought 120,000 tons.

Contract No. 4 (world) 276-5/10-3.787) 2.63-11/18-2.67-1/16 October

September

139.10-10.15

10.00-10.04%

10.3438-10:34%

11.07-11.07Y

January March ALAY Owy September October

12.182-12.18

Other unchangedUnited Fremspot feels per ib, fob Cubej

NAMESAKES

Anewery-{ Migration. Communion, 9 Largelites,

| Egyptians, & Pursecuted.

Mesos

Open Interest: 1,339 contracts.

Contract No. G (domestic)

Beptember

November

My

4. Spot

fonte per Ib. cit NY

Open Interact:

*

*ITRIATM

TRIMIZZBEN A DONORAR

Beggies. Pake

Bombay Kane

from Kanchi. Bebe

EASTERN & AUSTRALIAN SS, CO, LTD.

"ABAFURA"Est 4th Sept. Brad AnstraDA

*EASTERN* Joods 6/3th Sept.

KAIN 2010. Dipl. pre Labionen,

All vencia BATH Shorty-to call at ang bata

at all the Tunde at the soute à matte