1957-08-21 — Page 9

THE CHINA MAIL, WEDNESDAY, AUGUST 21, 1957.

TRADE and COMMERCE SECTION

Parë

INTERNATIONAL FINANCE TOUGHER Cotton Futures

Sterling Ceases To Be Of Any Use As Reserve

By SYDNEY 5. GAMPELL

London, Aug. 20. International finance is getting tougher but less boring. Unless the freight and commodity markets soon shap out of their malaise, this alleged world inflation has had it.

What is really blowing up, is a liquidity crisis in international payments.

As can he seen countries as varied as France, India, Japan and Denmark, this carries a serious threat of a deflationary chain-reaction of import restrictions.

HONGKONG VIGOROUS RALLY

STOCK EXCHANGE

Our Own Correspondent

BY STOCKS ON WALL STREET

By DOROTHEA BROOKS

New York, Aug. 20.

Stocks put over a vigorous rally today when further downside probing uncovered a real de-

Buslucss done on the Hong- this Stock Exchange kong, morning amounted to approxi- mately

$270,000. Noon" quota- | mand. tions and the morning's transac- tions!

Shares Buyers Kellora BANKS

HK Banke

INSURANCES

Union Lontard..

FUIPPING pocks. ETC.

Wheelocks

K. Wher Dork

Bales

A run-down of the day's action showed: The market just about held its own in initial

to or dealings as Wall Street appraised the situation in the light of Monday's break-widest since Oct. 10, 1955-touched off by the Communist-inspired move in Syria.

7,70 7.80

400 @ 1,73

14

4.

P'vident (0) 11.70

The many countries with weak) move in and since last. December | LANDS, ETC. or failing Terves are trying 10 than in all its previous life.

cut or restrain their imports, either by direct restrictions or by

general

policies.

anil-inflationary

with strong Inventory

The few countries

reserves are in

liquidation.

Commodity

This is valuable, but B does not carry matters very far. The IMF

not wis

given resources to provide much more nid, and as the US than first Treasury (which mostly works of ready It is set short money, it cannot easily ge!

more.

1.20

Ki.. 15.000 15

Humphreyn

A 300 1400 # SG14 1620 16 40

Loews_incorp.

A test of the lows came ink-, Lockherd Alvezull morning in յ sharp sell-off, Star Leinent Co. which put prices, down a point | Lowensteja & Sons,

in many issues,

This

was followed by n 1.413 100 22500 1310 vigorous

Dn volume upturn which put reporting tekers be- [hind floor transaction for nearly

half an hour.

Realy

the

RUBIEN Amplg.

UTILITIES Trata

... 1.475 1.50

0 23.500

Star Ferry

хо

Yaumati

120 130 105

107

C. Light jo) 18,40 19.50

(a)

12.00 Electric

200 20.00

COD 1009 69 20.00

12.20

1000 27.00

I did provide the first Telephone 27,09 211 and that's that. Under is new management it, will go on being

INDUSTRIALS helpful. In contrast to the many Cement vents when it did rather more STONES, ETC. harm than good and nothing Day

But the bi Watson much of cltler,

Emporium money has gone.

CUTIONS

Commodities duly reilce! this fluation, AB

any ky ny beneficiaries prera, and Britain's terms wide; they Industrial thrive on dellations; and commodity profits do not.

All Inflationary booms end when they run out of money.

The IMF has done all 15 Textile This one has probably done, it entitled to do for sterling, and Nanyang already, up surely ns did the oil it is prepared to do for the MISCELLANEOUS

Entert Karcan boom. The trouble 15

frane and rupee and several | INVESTMENTS aggravatej

the

currency | other currencies, this side of Yangtze by

Allied distortions walch are causing o

Mallik. & F.E. major reforms.-China the reserves Special. near-famine of

Invest. which are the working enplial of International trade.

The French

franc

is most acute of these distortions, but far from the most Important. If a world crisis is coming. 1 will come from developments in the dollar, the D-Mark and sterling.

The only serviceable reserve currencies are sterling and the dollar; the D-Mark ought to be one, but is not.

Not Willingly

1000 22.00

then

to close

Prlees held steady through the mid-scasion full and moved up steadily around the highs.

Leadership was top grade with Bethlehem and Cenerui 200 27.99 Motors the most active issues.

1000 323

100 101 1900 w 15.00

02-2

15 14.70

12.40 12.60

A

300 13.0

4.00 4 315

040

3. 20.09

1.30

0.00 425

■+

9.00 10.20 cod 030

Expectations

The recovery

was

McDonnell Alerts

Stock Ex Merah bun Com Minnesin Ming

Mission Development Lionsanto Chenilest Co Montgomery Word Motorola ne.

10%

(Au

WORLD

RUBBER MARKETS

New York, Aug. 20. Rex rubber market closed tutay two to ten polts lower with sales of 19 contracts.

September

November

January

March

7.13

3205

37.00

31.00

31.73

1.00

31.40

May Fly September Standard contract elesed two to ten points lower with no sales

reported.

September November January March

May July Beptember

24.10

33.0

$2,000

31.00

31.

31.00

31.40

See-Saw In Quiet Dealings

New York, Aug. 20. Cotton futures today see-sawed narrowly in quiet dealings, holding to the pattern of the past several sessions.

After a mixed start, prices edged up to sinall net gains, then receded gradually to close around the day's lowest levels.

Final range stood 10 to 20 points tower, with new crop inarket months, cabiest, The opened off five, to up three points. New Orleans closed 12 to 21 points lewer.

Mid-session selling colnelderl with the reiterated expressed

AMERICAN

BUSINESS

conviction of Agriculture Secre- CONTINUES

Lary

com❤

TO BOOM

Washington, Aug. 20.

Benson that solution of the farm problem lies in lower price supports sind a liberalisa- tion of planting controls.

The Government weekly crop summary, apart from plaints of rank growth in some purls of the Mississippi Valley, was considered by some leaders ported last week that As about 80 per cent favourable US business continued Volume Open Interest to boom through July,

A continued slow domestic interest and discus- consumer slon: the possibility

on eterling revaluation combined 195] to keep market, interest to a low cbb. Shipment business con- tinued slow sibee prices were too high to interest local buyens, Reported offerings included sheets, from Thailand three Sept/Oct at 314 cents and four sheels Sept-Oct. at 30% 113 cents a pound, cost and freight, 31 Indonesian offerings included | Ocieber

14

My

10

National Chikh Hor. “A”

Nallohat Dalry Pred.

National Lead

National Steel Corp. cw York Cenitai Olin Mathieson

Otis Elevators

Gwan-IlBnals Glass

Puelle Gan & Elec. Pan American Airways

Paramount Petstre

Parke Dayla Ce.

Penny 1. C. 16

Penal Sall Co.

Philp Morri

in lind Procter & Gamble Co.

with Wall Street expectations | Pittsburgh Plate Glass

Pure Oll......

Redio Corporation Republle Steel"

us on overdug move that had Publieker Industries been upset by Monday's news which Included the budget Syrian situation

hit Reynaldo Metal and from Fededal

header, Roebuck & C Reserve William McChesney Marlin, thal deflation, rather than tion,

may concern veenofly.

With the drop from the July around 18 illion as of the Monday close, many in Wall Street held the

market was considerably over-Standard vil at Ind. sold.

soon

13 highs totalling TWA BECOMES Uncompromising

*

HUGHES'

NO. 1 INTEREST

Washington, Aug. 20.

Multi-millionaire

View Held On D-Mark

Bonn, Aug, 20.

The

for the crop as a whole.

Month

Detobig

December

May!

March

7360 170,000..

$400

11,000 274,000

3,500

145,000

4,400

IU,300

13,500

108,000

7217

50

-17

129 Sept. three

ambers at 304 cents and four ambers at 27% cents, cost and freight. Spot No. 1 Res was quoted at 3214 cenis,

28%

Beckmper

#1,000

34,0

Tetal.

36,500 NEW YORK

today as follows:

Spol

October

SINGAPORE

Pespite rather better oversens 7aadvises the market

opened

78

lover on official denial of liiket- ;

of sterling devaluation. ins hord

oud cased further on some 61% state bull selling.

There was less interest that of late in lower sheets and only Small factory enquiry. Futures: Nu. 1 rubber per th. Eept. 02-92 Oct. 10-1

No. 2 rubber per lh, Sept. 912

The Government re

But it said it detected signs in the economy that

consumers

are

203,000 butes generally showing resis-

Prieta of cotton futures closed tance to high prices,

December

Morell May July

October

Decentres

NEW ORLEANS

35.0511

37.77

BRABBRAR

Prices of colton futures closed today as follows:

Spot

Octatier

Dreamber

Man in

The Commerce Department estimated that the gross nation- al product this untion's total output of goods and services--- was running at an annual rate of $434,500,000,000 at the closu of the year's second quarter on June 30.

This was Ave billion dollars higher than in the January- March quarter

und $23,500,000

last

But the Department said

The Vise "seems to have been associated

with

increases in

5

30.15

Shell Oll Cn.

26

30.77

above the second quarter

39.03

sunt ner Paver

3032

india-

Sinclair Ol

Dec unquer-tog

May

3301

year.

the

Sucony Mubiloli

July

33.32

Solar Aircraft

TRSS No. 3

Oelcher PIN-914

32.71

South Puerto en Sugar Southern Co. (The)

No. 4 22 Spot rubber unbaled

16-08- 013-023

December

prices.'

LIVERPOOL

40

Blanket crepe No. 1 pale crepe

113-B1

Colton

future closings, in

ธง

LONDON

Southern National Gos Southern Raliway (Com.) Standard Brands Standard Oil of Cal.

101-102

The rubber market was quiet with spat down 3/16 at 27-3/16

2713-2762

OFF SLIGHTLY

as was.

The Federal Reserve Board pence per lb. were as follows: reported meantime that 10- dustrial production in July tell 253 30,10) of slightly.

expacted. 2062 But when seasonal factors ATO 18-10 considered, it said, the July rate of output, was equal to the near- 2010 record Juno level.

Old contract

Ort/Nov.

Standard Oil of NJ.

Dec/Jan

Mnr./Apr.

on

Steep Ruct (Toronto Storing Drug Co

tokeiy-Van Camp, Studebaker-Packard Corp. swift & Co. Texas Co.

pence per lb.

Prices:

May/June

1514

No. 1 Rs pot...

275-278%

July/Aug.

Settlement house termi

Now contri

September

276-232x

Oct/Nov

Detober/Decumber

Dec/Jan.

3312

January/March

27-6-27-4

Mar/Apr.

Fox Film

001

April/fúne

May/June 235-2724

20

July/September

2726-277

July/Aug.

27

August

271 buyers

Bi

September

27-27

October

2714-2721

334

SAO PAULO Cotton future closings, cruzeiros follows:

kilo

were

ununoted October

March

Tide Water AR. ON Time Inc. Twenty Century Fox Union Carbide

United Aircraft

centred recovery issues hardest hit in the recent selling the steels, oils, metals, moters and special issues.

Industrials a group covered 4.91 points on uverage to 483.00; ralis 1.12 points to The West German Gov-141.47, utilities .00 to 07.77 and Union Pacific Railway Howard Hughes, whose ernment today maintained the 65 stocks 1.35 points to United Car Carp.

107.53.

15. Foil "2" ils uncompromising view

U.S. Gypsum Sterling has ceased to serve, Huges Tool Co. owns

Out of 1,182 Irsues traded, US. Le Co.

U.3. Rubber vversold for people to be able 74 per cent of Trans that it was up to other coun- 497 were higher, 406 lower, 230

tries to halt the flow of gold unchanged with 202 now lows. Smelting

U.S. Sicel to overscit further, and so is World Airlines, P and foreign currency into 5t, only two new highs. Warner Bros. technically strong-people wil

NY Stock Exchange bond | Westinghoum Efecti rot willingly leemulate.parently has decided "to West Germany.

Western Union Tel. Co. West Va. Pulp & Paper

because although its

That puts the dollar on spol, a spot which it is teking.

Germany's hogging of quld reserves slightly aggravated by Canada's

equally involuntary reports hogging of investment capital- was tolerable while the US was massively pumping reserver inlo | Issue the world.

and

American

i volume was $4,200,000,

American

Stock volume was 870,000 shares.

Exchange Woolworth

Dow-Jones closing averages

werc:

30 Industrials

20 rolls

15 tiles

CS stocks

a bonds .....

Comin. Zuture price index..

General markets, cit basis, port;"

Estate crepe in Sept. 30

tick AMSTERDAM

יניימן

201

20.04

21.20

The Board noted that

non- farm employment, income and 27.43 retell sales in July were at re- cord peaks. It said wholesale mi commodity prices remained easteady, while interest, rates con- tinued to rise in line with tizo Government's "light

monoy"

40 20 policy.

40,50

The rubber market was dull. Maye United States, the

4 Prices closed today It guilders

No. 1 rubber

and other household items Production of television

In-

per kilogram, elf Sept, a fol-average price of one-inch colton lows:

nt 14 designated spot markets cretect. Aircraft and auto pro-

duction declined moderately. 2.64 nom. Was 33.54 cents.

The Commerce Department. 263 10m, Toini sales at these murketa said that, on the basis of July 2.60 not.

bates United ngures, 2,03 nom. United Press.

No. 2 robber

No, 3 rubber

-United Pres

No. 1 crepe

LONDON New York Sugar

413.08

141.47

47.77

10741

83.20

13784

Closing Prices

STOCKS

LOWER

$10

8-412

13

174

themake TWA his No. 1

In a statement lasted after a activity and interest,"

cabinet meeting the government Wayne W. Parrish, pre- not call for any adjustment of Bald. that economic facts did sident

publisher, ühe Deutsche marks relationship Rumours of a in the lead to the dollar,

révaluation were groundless. urticle in the August 12

The statement said the cabinet discussion of

was caused Aviation magazine. by the mounting of payment surpluses in West Germany but Parrish said the impact of did not give any indication of Alden Inc. Aey Hughes decision, made

Allled Chenticul the goverament

thought

Allis Chalmers years of sporadic interest in the problem created

by these American Airline TWA, will be sharply felt both surpluses should be met. A Am. Cable & Radio Corp. domestically and International spokesman told a questioner at American Cyanora de Co. 15. Recounting the progress A press conference that the Am. & Foran, Power

|Ain. Gas & Electric meeting diri not discuss mea-Am. Mach, & Fdy. surea iu balance out the pay | American Metal...

American melting menis problem.

Am. Shear Bet, ... American Tel & Tel American Toù. "E"

Since last autumn the US has be sucking thêm in, while Bie German and Canadian auctions sill go on; ans, so the interna- ilonal payments system which has been creaking for some time is now in danger of breaking down. The miracle is that R his shambled on for so long.

So far, nobody is going to the IMF meeting in Washington In the last week of September with

intention any particular discussing this impasse, still ters of doing anything about R.

Major Decisions

On

of

atter how

Linder

new

this

TWA ng madt president Carter

Burgess year, the article states:

SIGNIFICANT

A questioner

"But at some time within the

six

Howard months past Hughes dccldea to move TWA to the absolute top of the list

it And of his personai Interests.

was

Anaconda Copper Armen. Stent

aced whether | Armour

that the Altos Cons. Mining siendicant

indwin-Lima-lam. the show ought to be good for statement spoke only of the Baltimore & Oaks the future, It will be a big marks relationship to the dollar Beneficial Financo show Hughes holds to his as nooding no change, and did Bendix Aviation Carp,

not mention its value against other currencies.

prezent course."

PERSUADE BOAG.

Marking thal

clearly course

Denguet CoTIR. Bethleheth Stoel

Boeing Airplane Horden (The) Co. This was interpreted here us Burroughs Add Machine

Campbell Soup Co,

a reference to the belief, wide- | Canadian Pacifle R.

Is Hughes current $500 million ly-held in West German finan-Capo 3.7.) Co. power play to try and ecquire clal circles, that the pound of

the

themselves discussing the prob-edding Parrish

Celanese Corp.

Chase Manhat. Bank

Chrysler Motora....

There is no nalogy with 1948 when major decisions (except only the actual now exchange, rates, and even they were not qulio last-minute choice) had Been Laken weeks in advance,

30 Bristol Britannias it he can sterling is over-valued against C. 1. T. Financial Corp. for mere scaling at the IMF.

persuade BOAC to release its the mark and the dollar. The With

without Intention, priority

turboprop | spokesman replied that this

Climax Molybdenum the finance ministers will fud

continues, was a matter for other countries. | Colgate-Palmolive Co.

Colombian Carbon Co. lem in and around the IMRparently reliable sources, Hughes adding "According to ap

Commercial Credit West Germany is most reluc-

Commonwealth Elec. meeting, under the fores of angured that now Ls the time tant to make any upward Consolidated Edison mounting world opinion that

the dollar, Continental U of Del, things are too screwy to stay as to equip everybody else. He adjustment against

couldn't do this unless heas this would almost certainly Crown Zellerbach

Cuban Amer, Suzor they are..

her exports. She al- Diamond Alkall concentrate on TWI and this damage Avoidance of Internatelnal he is doing."

ready had un annual deficit of Douglas Aircraft

Dow Chemicals liquidity crises is what the IMF The magazino says Howard about 1,900,000 marks a year in Dupont de Nemours

trade with the United States- Bugles "must see his way clear China Mail Special. financially or he wouldn't bo bold moves making so many and so many tangible commit- but for the multi-

out to lay necessary stake for TWA. mayF

.

was created for.

More important (ince the IMF cannot be or do more than

你现 member

countries and

particularly the US choose to

make it) such a crisis tende tomaro

be bad Intennial politics in the individunt countries.

AB unat,

the

Germany may require some radical juggling

suffer last from a problem of his various.cmpires"

which she has not dono least to

4

Parrish writes: |

London Metal Prices

London, Aug, 20. Prices of metals closed today

Concluding create; her elections will be "Whatever happens, this much in sterling per long ton as fol-

is certain: Howard Hughes and lows: TWA will be in the limelight

ཡ་།;

Eastern Airline Fatimas Kodak

El Paso National Gen Firea uno Tyre & Rubber Ford Motor ....... General Electric General Foods General Motors Gal Pub. BEN, Getty Oli Glidden Co Goodrich (F.) Co. Goodyear Tyr

teyden Nowport Comp. Homesipke Mining. Do, Inger-Band

Bieel Co.. Buyers, Bellers Interchenical Corp..

2016 | Katy Business Machines.

over by them.

IMF Mecting ›

from now on for quite a

The airlines of the world

At one point the problem be well aware of their provence, Copper spot inglages directly on the IMFA power battle using $5tillion month meeting. There will decorarily det units for armimition is in and a half. Aug. be discussion of what the Thy the making, wat the dumbelf-Zing 2nd half Aug Kweli has done to help: much them is oing to get rough."

30-manua

Tin spot-

*

4.

210

745 Int'l Harvester $10

Interisational Nickel

Nov.

Nov.

Trea

123143] International Paper

M[6]|| Joan-Manville Co.

canias C. Power & Light Kannecoli Copper. Liggett Divyera Tob, Co,

1120

London, Aug. 20. The Communist-inspired

Market

New York, Aug, 20. World No. 4 sugar futures closed today 7 to 26 points

coup in Syria and the debate higher with sales of 1,179 Domestic No. 6 contracts. over devaluation combined to send stocks lower on the

sugar futures closed un- two points changed London Exchange today.

The recent weakness in New higher with sales of 19 con-

helped to trets.

704 York markees also

732

urnerve traders here. Industrial stock

to

Strength in world coulengts September covering generally reflected 10 last three to six pence, with following the prompt stoppage tobacco stocks off around # of 450 deliveries noted and the My chilling and Unilever down two Arner raw situation,

shillings

A new enquiry from Pakistan, Olis came

under heavy scheduled on Sept. 10, will be pressure at times, Royal Dutch for 11,000 tons of refined sugar. tumbled 27/- to lead the de- Over the coming weekend cline. Cold shores were weak. Comblance is scheduled to gerk Dolinrs stucks were marked | 10,000 tons of paws, traders down sharply in line with yes- terday's decline In Wall Street. Foreign lens were mix od United Press.

London Foreign Exchange

understood,

Contract No. 4 (world)

Spel-cents per

Sept.

Oct

Jan,

Mar.

May

Jufv

Sept.

oc.

Cuba)

Contract No. 0 (domestlej

Rept.

Nov,

2.05 11/10-1.07.13/10

Mar.

130124-1.30.0735

May

10.34-13.3494

Sem

Nov.

London, Aug. 20.

Closing rates were:

New York Montroal

191 Bruncis

Copenhagen Faktari Milan

04% stockholm

3.7846-2.7816

-114,8715-11.0715-

1794-178714

Zamet. 72312-1451972

Others unchanged,United Presa.

Open interest: 8,534 contracts.

Spot-cents per lb. clf NY

ex-daily

Open Interest: 1,583 contemeia

United Prow. -

New York Foreign New York Metal

Exchange

Now York, Aug. 20.

Closing rates were:

Canada

Xogland official

K

Australia

unomdal

30-clays

New Zealand

Batth Africo

Pakistan

POffers - unchanged

Futures

Now York, Aug. 20.

Prices of metal futures closed 1,00-1,33 130-9/10 today in cents per lb. as follows: 355-3156 | Land" "Aug.

2,78-3/16

2,74,0/18 | Kine

29/19 | Copper Ada.

Tin

13.45 1848)**

9.00

were

Press..

17,030

Exchange Rates

J

the estimated annual rate of income of. Americans was at an all-time --- high $345,500,000,000-United Press,

NAMESAKES

of

Answers: Sword, 2 Cuir- evere, 3 Adventures, 4 Gallant, 605 Knighthood, 6 Tournament,

Gawain, 18.30 Mall,

9 Sicol 10 1922 Armour, 11 Brave, 12 Lancelot, 2750 - 13 Joust, 14 Arthur, 15 Chivalry.

1.01 Sir Thomas Malory.

Distress was done In the local Linofficial exchange market this morning at the following rates: U.S. dollar (per (1) Sterling notes (per Eli Australian notes (ptr 2 Indonesian rupiah Iper 100) Ham Heat (per. 190) Elapore (St-285)

10.20

TYPHOON MAP

With Latest Amendments

$500 MOUNTED

$4

INTED

South China Morning Post Ltd.

HONG KONG & KOWLOON