1957-10-21 — Page 8

SECTION

THE JITTERS Eleven-Year

VITAL ROLE OF MIDDLE EAST WAR SCARE

RESEARCH

IN BUSINESS

New York, Oct. 20. Economic research is playing a vital role in US

corporate planning today.

American firms are spending an estimated half a billion dollars a year to keep abreast of trends in politics, purchasing power, and trade and fiscal policies around the world.

Alf of these factors arc essential parts of the economic Jigsaw that firms must pul together if they hope to sureved in business,

What is the market for hair cream in Africa? Would cons- truction of a tire plant in Europe be proẞtable? How are currency conditions in Latin America?

These are only a few of the question which economie research arm are called upon to Answer every doy. Their findings will help mould a com-

pany's decision.

RAMIFICATIONS

Economist

A woman worker în the mill's spinning department.

When the flow of Egyptian cotton to Lancashire's mills began to dwindle about five years ago, to cease finally in 1956, it marked the end of an era. For almost two centuries the hands

Geoffrey Browne, head of the Intelligence Unit. and eyes of the skilled craftsmen in the North Fald economie studles "provide of England cotton milla had become only knowledge of oppor

tunities to be had, but also accustomed to its special texture.

shouls to be avoided, political activities that could affect business, government buying and all other ramifleatlon' of Interest to the involved in world marketing."

In its place they had

to five attractive young women handle an increasing variety of in dazzlingly white overalls. cotton frem Mexico, Nigeria and as the fine Nicaragua, as well Sudan cottons, each with Ite own peculiarities and manufne turing performance. In addition, increasing

number!

new synthetles Tracie their pearance, sometimes to be used

of

ap-

Ini charge in Miss Laura Clapporton, a dedicated woman a tradition of cotton- with

her. Her spinning behind brother is general manager of the mill.

the instru- alone, often to be combined with ments that are superseding the old craftsman's natural faculties,

cotton.

Problems

She showed

It became obvious that hand and eye, hitherto the sole ar- biters of quality and potential, must give way to muchine and graph form; microscope.

Hesearch and

me

tutt

From Switzerland comes the stapler that plucks the strands of fibre and electronically re- Elsters the effective length in the Micronaire, from America, shows the fine- consistentness by blasting pressurised air

through A 50-grala testing were the only means of (weighed to a maliligrain by the solving the problems presented

Avery Shadoweight), both by the natural yarns and the man-made Abres, and order to

this, do

Combined English Mi (Spinners) Lad, formerly Combined Egyption Mills, Ld, set up a pilot plant at Hayley Mill, in Bolton, in we English county of Lancashire.

Touny the Bayley Mill Com-

research

pany's

department

deals yearly with some 3,000 of problem mostly

These

Thread Test

He said that as sales targets larger both row consistently In the U.S. and abroad, more and more companies are cock- ing a research-sharpened eye at their prospective market arcas, -A PRELUDE

markets,"

冠

U.S.

GATT MEETS

AGAIN

IN GENEVA

SPARKS A SLUMP

IN AMERICAN BUSINESS

Domestle

What's happened

thal

people laid off in manufacturing

are belu: pleked up elsewhere auch дя in wholesale, retail, attesling further to the higher

level of consumer spending.

Low In US Cotton

Market

New York, Oct. 20. Another fractional price dlp

in cotton grey goods last week proved enough to send the market to an 13-year low.

now at record levels, appeur to cents a yard for spot goods, oft

But even here there is a dark The basic-80-nquare four- cloud, Retal sales, although yard print sold down to 17%

be levelling of. This has been) Va to, 1⁄2 cent from a week ago. due to a number of enuses, It was the lowest price sinca

in mainly a reduction

the 1940, work week, inyofis in the sulo, television and other in- dustries, a decline in factory payrolls.

New York, Oct, 20, The Middle East war scare over Syria-Turkey as well as other international and domestic un certainties - "Sputnik," scattered layoffs, lagging production, a slumping stock market combined to give American business alto gether a case of the "jitters" last week.

and international the warning issued by Alfred news was not good last week.Hayes, President of the Federal The exchange at warnings Reserve Book of New York, between Russia and the Urited against ensing of the Stalo over Syria and Turkey tight money policy. He sale helped to get the three-day that any

of credit casing

sen: rise of stock prices carried over restrictions which have

new 24-year from Friday the previous week Interest rales to through the Monday and Tues-highs would be "dangerous"

Reial sales Over Experts took this to mean that day seastone,

the

were not government's polley of month As of mid-session on Thursday, prime restraint will continue, though they were null slightly of the total annual production prices weakened further to new

sofiness in above the levels of last year of 4,000,000,000 yards of all lows dating back to March 21 1056, with all sections of the market joining in the decline,

ments:

Domestic

despite

apparent

current

some segments of the economy. In this drying-out profits, some experts see the rate of in- dustry production slipping DE much as five to 10 per cent from recen! levels over the next few months. Some pickup in uns employment Is likely. Prices higher, according to this cuterie. meanwhile will continue to edge

Output

Retail Sales

Soles down to 17% cents yard awaited confirmation, but brokers were "quite sure quiet deals" had passed at the lower Aure.

Importance of the 80-square bellwether is a market measured by the fact that it accounts for about 20 per cent

tho past booming, ul-

As

However, at this year's lufluted print cloth yarn fabrics. prices, retail sales, in effect up- pear to reflect a drop in physical volume.

SLOW SLIDE

Many retailers are banking

Broadcloth, sheetings, ona- en a good Christmas season burgs and ether fabrics usually this year.

With consumer In- hear the bellwether and follow. come still at high albeit re-

Prices have been on a slow duced levels, consumers

alide for the past six`mantha, sire drawing from the main cut des another way: giving no indication of with Measuring extent of the decline On the buying spite a four per cent rise in boom started with the outbreak prices over last year.

of Korean Aghting, the market The largest element of un-leader soared to 28% auto industry. With 168 models certainties appears to be in the yard. sill

htt showrooms in

Geneva, Oct. 20. The 36 contracting parties of the General Agreement on Tariffs and Trade met again last Saturday to get! On the domestic side, there routine matters were these depressing develop- cleared away before Fersonal income as of Septere tackling the complex ber-latest figures available question of how the declined for the first time this year, off $300,000,000 from · the European common August pacu.

Industrial production dropped market will fit in with during the same month for the the 10-year-old tariff first me since last April. This

volume, industry spokesmen still was the first time this year that of raw and trade liberalisa-

talk conndently of their ability production index (144, lows. Outlays for new plants to sell off their 1857 model. tion accords.

based on 1847-49 average) and equipment are now oft by falled to gain over the cor- by about $400 million, In sharp somewhat over recent

bren reduced Saturday's agenda consisted of responding months of the luss contrast to the upward trend of Dut the bin fear is: weele

pro- the post-war period.

that the 19538 models move at a annual reports on longstanding several years,

coal mining, which allow various duction,

Except for 1949 to 1054, each good clip, what effect will it countries to maintain certain production, metal mining, pr

have on sales of 19587 Bome trade restrictions

prethink the market may become or practices duction of factory machinery-year has been above the

During 1957 C which run counter to basic considered basle barometers ceding your.

somewhat over-saturated advance has been much more GATT's free-trade principles.

all declined.

gradual, and dollar totala have that time. They instal that the An annual Secretariat report

been inßated to a large extent industry's cautious steel buying

the in GATT's "trainee

by rising costs of construction policy reficels in part pro-

and materials.

dustry's fears over next year.

waivers

to

Lumber

stori

Further reduced spending for inventories and plant expansion appears to be depressing output materials to three-year

to

Stocks

have

The drop of 84 cents a yard since then has stumped most market analysts as they kept in mind the higher wages ob- the tained by mill workers" in interim and the Inflationary forces at play elsewhere in the Assuming national economy.

"Sputnik"

VACATION

Morcover, mlits have been by gradually cutting back on pro- auction, hoping to Ughten up on

the supply, Some print weavers now are talking about taking an extra autumn vaca- Lion, for operating looms only four days a week,

market

reasons

to

Steel Profits is a prelude to on "Research entering new markets, or intro-gramme" was also on the list. Although many expect steel ducing new producls in old Under this

programme, young proẞts to be fairly steady this economists and accountants from year, there has been disappoint-

Reflecting the general pinch in manufacturing, the number When

developed countries Arm, for less

artment with the slowness of the

of those working in this ceg- That shadow of "Sputnik" instance, wants to expand over-sent to spend several months auto companies which account ment declined

Tight money and the stock another

decline are firri-cited with three working in trade ministries or for the cut of 23 per cent of lost month

63,000 might also be cast on retail faced

to 10,817,000 or prospects. produel; national banks or studying at steel output to pince orders. 202,000 under last year's total.

Many had

explain looked

buyer peas, it is choices: Export its

wariness over the past months, for a reduction in corporale and hrense a foreign rm to make specialised schools

lean Housing construction stiff

but millmen personal income of administering same 10 per cent short from modern ways

taxes

also coupled next it, or build a factory abroad.

The number of those having year. Now the thinking seems hesitancy with the spotty de- Dociding which of these three trade and financial affairs.

last year, dating back to 1040 jobs, however, has jumped near to be that "Sputnik" has wiped velepment of new business in levels. moves is the best is the job of

ly 250,000 to 53,107,000, a re out any tax reduction.

Ished goods. Another fuctor serving to de cord high for any September in President Richard Nixon the economic researcher.

B..U., with beadquarters In

presa, business sentiment was history.

week gave substance has a list of clients From Switzerland, too, comes

London,

possibility when he told a group which reads like a who's who Uster single-thread tester.

of 800 International business- and American

foreign complex machine

that of

mea in St. Francis that defence Even thread industry,

governments gradually strains

requirements must take prece dence over any tax reducijon. the reasons in mind,

With government's debt mit navigated close to short look already at the allowance

275 mg blllion. It would appear that "Sputnik" will out further pressure on the government's Pari of the confidence stein- med from expectations" that

the

♫

the

to breaking point registering are placing greater reliance on strength and teaslltty as graphs private research reports,

on rolating cylinders and

from double-checking on strength by the groups many overseas cus means of a histograma silver

THE FIRMS

Switzerland

The closed meeting was also Switzer- expected to consider lund's application for provisional membership, which was lent- tively approved last year.

A spokesman said the GATT members would continue clear-

nexi

tomers in Denmark, Holland, ball, like a cake decoration,Major U.S. fimg" engaged-in-Ing the agenda of annual-reports- Sweden, Finland, Germany, drops into the appropriate the business include Chin & and other relatively routine Australia and New Zealand, grosve each time the thread Bradstreet, Standard and Poors, matters throughout the

Prentice Hall, International week, Statistical Bureau, and United Business Service,

although enquiries reach them snaps. from other parts of the world,

It was to find out what thuse are and how the experts answer them that 1 visited Bayley Mill recently.

Objects

The straighter the graph, the mare concentrated the dis- of silver balls, the tribution more uniform the thread and the better it will stand up to processing.

A

Bad Week For

London Markets

London, Oct. 20.

Vice- last

to this

current <conomy medsUTER,

WEATHER

Unseasonable weather bis interfered with apparel

sales to come extent. Cultera and plece reor's buyers, keeping all

have

for a better view of the general business pleture.

Some observers. notably manufacturers of conting mate- Malcolm P. McNair, graduaterials will be back in the market On Monday, October 28, they London markets had a bad week, thanks to the University, thinks that the price automobile requirements.

school at business. Harvard to cover November-December Syrian-Turkey developments in the Middle of defence might be higher.

world-wide pressure East and sterling.

will go into special session for a meeting of trade ministers cr equivalent high officials from all member countries for a general exchange of views on the inter- national trade situation.

Spécial studies are only part of the businesa, These inns also put out weekly, monthly and quarterly reports which enable the harried businessman to keep By ita side is મૈં simple up on major economic trends 1 found that the mill and the knitting machine so that yorn effecting his company, laboratory together have

Ave can be

Most of the remainder of the made up, albelt very E.I.U., unit, of the Inter- roughly, into cloth.

national famous economic six-week meeting will then dis- magazine, for instance, turns out cuss

mula objects:

This

in

of the

• Fibre evaluation. This is conlined to cottons because There is an ultra-violet lamp the man-made fibres are, by which shows up clearly any definition of

cloth. la the controlled "bars" A

barring, which results standard.

is one uneven dyeing, manufacturers' commonest prob lems and the usual reaction is to blame the spinner,

• Evaluation of spinning In short, finding properties, Dul just what you can and cannot do with a fibre.

Promotion of the new EI

•

Abres. The plain job

But the fault may le in one

the many of of

subsequent pro-

selling to the manufacturers cesses as Bayley Mill's young

*

the practical posalbilities,

Service to customers, and this increases yearly,

Quality control. The routine checking of the pro- ducts of the group's 36 milis..

Synthetics

My guide was George Shor- rock, 27-year-old developments officer, to whom this is aл cx- panding industry, with a future, Synthetles have made it so and

It was to these that we turned first.

He showed me the mail-in-

miniature where the synthello

The

the common Diaritet.

54 quarterly reports covering United Press. business conditions in more than

100 countries. Hundreds of U.S. firms are subscribers to This service.

TAILOR-MADE

on a new

Bank Of England

Statement

taxes. He sees some further Sales yarn spinners used the against curtailment of consumer spend. terma "all quiet" and "nothing ing, saying that the government doing ni the moment" to undertakes an expanded missile describe the market situations

There was a little recovery on quiet but the Dawes Loan non- ¦ programme.-United Press. Ualted Press. Friday, due to professional barnsgented

rose £ and that of

covering, but it can be ignored the Young Loan fell £4. in studying the picture.

The premium for dollar stacks The industrial average closed į cased 1⁄4 to 8% per cent.—United on Thursday al. 160.0, the lowest (Press.

since November 30 of last year,

The entire recovery achieved in 1057 from the heavy declines of 1950 has now been wiped out

Sharp Falls

If we take a shorter period thun 1967's ten months and notice the sharp falls dating from the 7 per cent bank rate, on September 18, we get some shocks. We And British Petroleum down 31/-, and Shell Transport down 14/-.

Lancashire

Mills May

Be Closed

London, Oct. 20. Some of Britain's Lancashire

Economic studies tailor-made to meet the speelite requirements sefentista were able to show in of one company are the biggest

London, Oct. 20. profit makers for these firms. The Bank of England state- a recent case.

These studies A German manufacturer com-

can cost many ment for the week

ended plained of bars and questioned thousands of dollar. But they're October 10, reads as lows:

of the yarn. At worth it to companies which the quality

Notes In circluation, sterling Bayley Mil the cloth was are prepared to gamble many

dollars

1,980,720,343; Public reduced to yarn and thoroughly

deposits millions of

But taking the week by itself (spinning mills may have to shut tested.

Private It was flawless.

11,590,508;

deposits product or a new plant,

we And highly promising down unless more workers are cause was finally traced to an Browne sald E.1.U. has been 313,903,403; Government securi-

investments-which were al-hired to weave the yarn which accident in doubling.

the answer to ties 270,516,485 Other securi-rendy cheap-getting asked to find

cheaper. (the spinners produce, a union This was being done by the such things

39,339,403; surplus ties

Recepits wot procces and the barring market for

nirplanes in Latin 23,093,146; Ratios 10.1-United Among the few exceptions were leader sald today.

those favourites which had been The warning was sounded in a was developing in the trough America and the competition Press

heavily sold short in anticipation report by Sir Alfred Roberts, where a suspension was form- for two-wheel bikes in British

of a recession and which had ¡Góneral Secretary of the Card ing and attaching to the yarn. Somealiland United Press,

to be bought; this professional Room Workera Amalgamation, short-covering lifted Unilever one of the country's three big 2/ last week and Rolls Royce cotton unions. 2/6.

Complaint

WAG

as

EGYPT LIFTS

the

BAN ON CARS

Bank Of France

Thie

Statement

Paris, Oct. 20. Bank of France state- tor the week ended

Abres are spun into yarn, or A similar complaint from a blended with cotton or with German umbrella maker each other. Constantly varying | anclysed na loose weaving. permutations in a never-ending A great part of the mill's Rearch for the perfect fabric, service comes in analysing and

Cairo, Oct. 20. We saw Tricel and cotton matching cloth samples sont in

Tho Egyptian Commercement mixed for pleated skirtą, Acrilan by customers,

be only Ministry today lifted a ban on October 10, reads as follows: for jumpers. These were two These samples may

imports of small automobiles on experiments for à Dishish_của- tiny scraps pinned to a cover-

condition they are paid for in Comer. A

in Holland ing letter but the girls in the

for wanted to try Terylene and laboratory will

ground analyse it and Exchange. deals

on to nuts, flowers, and vegetables. cotton for skiria and abiria and | pass the information

The import ban on sil can Australian weavers were trying George Shorrock who will have *out Trical and cotton for shirts the cloth reproduced in the was imposed in

March 1900 due to the country's hard 'eur- The customer con have a few rency shortago,

124300

In general, falls in the week ranged between 1 and 2 shillings.

British Governments, on the week mostly lost £% or £%.

Roberts said that while the latest Agures for the sploning industry showed a slight Jin- crease in the number of mills, weaving manpower is declining

"If this trend continues chall soon have an unbalanced Industry with the weaving section" unable to absorb yüm Bald.inited production," Press.

NAMESAKES

Other Losses Among foreign benda Japanese Total gold holdings, trane:were heavily soldi, especially the 201,204,308,420; Total other cut-well-lmown 1930s whose nea

11,007,873,6173. Sight assented rencies

fell £5 and whose balance abroad. in EPU | amented foll £3 and the 1907M. to whore non-naschted dropped 44 15,771,000,000; y Advance Stabiliation Fund zero: Total] and the asseabed :254, 21.

||Answers:-1," "Trouble, a Eng Other losses ranged from 12 tertains, 3 Ben, 4 Sarien, (18") bills discounted: 1,871,527,507,224; Then wo came to, the hub of spools, fawr pounde. to make The new conditions were not Bänker notes: Find gelrentation, down to - El Chisure stećka Dialogue, 0. América, 7 Croon- with me, a Microphuna, a Thealbej 10 the plant--the laboratory upang length, a largexpected to wake the imports of 3,280,881,360,240; CUTTEDE – ROS lo was a surjtim to find that the quantity to make's market, delal | Vestemi ? sutomobiles. Unledio o un tajra a dare deposits the 1823s downs. £& Venech The Talevaton, 11 Forts. scientists at Bayley Millarol or a full commercial order.

343,870,415,800.-United Press, 100 down £1. Germans were Bebo Daniels,

and Acrilan and Orlon for pilot plant.. hosfery.

Prizn

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