1957-11-19 — Page 9

THE CHINA B

·MAIL, TUESDAY, NOVEMBER 19, 1957.

TRADE and COMMERCE SECTION

CRITICISM OF BRITAIN'S POLICY Negotiations For

Anti-Inflationary

Measures

Based On Fallacy?

.

London, Nov. 18.

HONGKONG STOCK EXCHANGE

NEW YORK STOCK MARKET RAILROAD SHARES' POOR SHOWING

New York, Nov, 18.

Most stocks closed lower today but well above

the day's lowest levels. Prices opened irre gular, declined steadily until the last hour and then met support,

Our Own Correspondent Business done on the long- Stock Exchange this morning amounted approxl- mately $357,000.

Noon quoin- dons and the morning's trans-poorest

actions were:

Now that the dust has settled after the bank rate bombshell, two distinct lines of criticism of the Government's anti-kong inflationary policy are beginning to The first holds that the emerge. Government's measures will lead to an even worse situation than the one they are designed to cure; the second, which is not necessarily an extension of the HURANCES first, contends that the measures are based on a fallacy.

recently, would be like trying to cure à tever by holding down the mercury in the thermometer.

Shares BANKS ILK Bank.

SHIPPING

DOCKS, ETC.

Halfrond shares, making the bows lacorp.

Lone Star Cement Co. thowing of the major Lowenstein, & Bone. groups, were at a new average | Mesbi Iron Corp. low stuce June 18, 1933. Hall Minnesota Mining

Millon Development losses ranged Jales

more than Marwante Chemical Co. seven points in Baltimore & Monogry Word Ohio at the town.

Motorola The.

to

Steela come back from their lows. They were down onto to more than two points from the 9.30 previous close, Chrysler re 4.45 covered part of a two-polni -0.70

decline and other motorý rem covered from their worst.

Buyers Reiters

909 275

10 n

070

ло

177

20 @

100

€70

TO

Wheelock. 6.45 0.70 3000 4

300

030

Dock 60% 21700 Provident

0135

11.40 11.70

FII Hotel 141 14.70 4,100

and

200 @

100 &

14.00

13.30

1.335.

1,35

1.83

5,000

UTILITLES

23

Star Ferry

oumett *

120

14

(0) 10:40 10.00

.

Light

(NY

LÂND, ETC.

HUBBER

mal...

A. Tawah

Team ... 99.0

| Ĉ. Light

The first criticism was amplified this week by the wharr

Trade Union Congress economic committee in its first reaction to the new measures, It argued that by focussing attention on wage

was diverting | Realty demands, the Government attention from the fact that it had turned its back on a policy of economic expansion. "Deflation is bound to impede Industrial development," the atatement went on. "Production, which has been rising after two years of slagnation, will be held back again; Investment on of the which the growth economy, the productivity uur industries and the living standards of the British people depend will foll; confidence in economic expansion and, there- fore, the adoption of measures to promote industrial efficiency will be shaken,"

of

Parliament has formal control amount of notes in over the circulation, but it la the demand for money by the public which control it. Banks effectively must have sulclent notes to meet their customers' demands. Just as the Bank of England them to meet the must have banks' demands. Otherwise the banking Aystem would soon break down The confilet here la not one of

So the argument continues, alms, but of methods, The

bank over

advancca control Socialist and Trade Union

(and, therefore, over the argument is that restrictions on

mean- credit should discriminate deposits they create) la

out in between those essential investingless. It is pointed ments which aro considered support of this essential from D Eational thope economic viewpoint and which aren't,

Thriving Exports

argument, that

have whereas bank deposits remained about the same since monetary

polley was IG- introduced In 1951, the note circulation has gone on Increas- ing by about 100 million year. And the turnover on bank accounts has gone up by Pearly 70 per cent.

..

*

Coppers came back part way from losses and co dild ells, Chemicals met support that lift Du Pont to a gain of more than a point. Specials ranged

from a two-point loss in Johns- Manville tó a gain, of more 10 than two points in Hershey.

123

,200 18.45 1000 18.09

Steels Drop

Steels dropped pne to more

02

1000 1980 than two points In Inland and 17.30 17.70

200 a 1740i Lukèhs. Firestone lost two In The 500 1750 [yres. Motala fell a point 27.10 7240 300 à 11:59 more. Allied off more than two, Electric

2,000 97 25 Macao E.. 19.50

set a new low in the chemicals. Telephone 26.10 20.00 2000 20.30 INDUSTRIALS Cement STORES, Dalry

2. 10.10 15:30 1,000 $ Watson 11.30 12.40 500 COTTONS

Textiles AM INVESTMENTS

Yangtze 2 3.25

Allied

2.73

100

130

LONDON STOCK

MARKET

London, Nov. 18.

Amerada and Richfield lost more than two in the oils. Johns Manville lost nearly two in the building tasues. Owens-Corning Fiberglas was off more than two in its section.

Selling developed after an irregular opening. The Street concluded that despite the sp- parent trend toward casler money the economy 'would take a long Uime to come back. It was noted that it took the fight money policy more than two years to bring a decline in Industry to avert inflation.

The stock market closed

irregularly higher today in res was in sharp the biggest trading session in three months.

Today's volume of 2,110,000 contrist

Industrials led most sectors

with Friday's 3,610,000. Prot taking and tax selling erased Home US$1.8 billion of Friday's rise in market value. -

Of a total of 1,100 leaves higher ground, Rolls traded, 007 were lower, 286 Royce guing more than two higher and 228 unchanged.. shillings while other favourites On the American Stock Ex- advanced by as much as a shill-change sales dropped to $90,000

g

into

This would leave say a thriv- Ing expert industry free to raise and money reasonably easily

After a detailed examination cheaply to Anance an expansion

of the

month's poskian, this of its activity while making Midland Bank review concluded credit prohibitively dear for

that "the volume of bank money those who want to use it for

available may have been "frivolou" purposes like in the

favourable to the working-out Socialist

petrol Alling or infationary view,

pressure in the stations.

carly post-war years, and that lafuence that contrary The Government rejects this any

Bonds tone.

volume amounted to have been exerted by argument

mote on grounds that by might

US$5,870,000 against Friday's their method, available finance is checking its growth, has been

inün seven eguilings waue ouvi- substanulaily offset by increases

US$0,010,000. Dow-Jones clog- channelled into the most pro-

closed from one to two shilungsing averages were: Alable investments by the free in the velocity circulation." play

of market forces. By reducing the total amount of money available, you effectively make investments of the petrol Billing station type relatively Jess profitable and, therefore, Jess nitractive to those money to invest.

Fallacy

Olls were the chief exception to me generally Royal Dutch declined

jowdr.

Gold shares also retreatīgi.

Gilt-edged securities improv- ed fractionally.

were mostly

辣 a quiet bonu

This may have been so in the past; but it does not necessarily

that the Government's Foreign Hen with mean

present policy is bared on a unentinged fallacy. The

the market. reply velocity" argument, stated in its crudeat terms, is that there is a Umit to the rate at which money can change hands, but not to the pressure that can be exerted to keep it in short supply.

In any case, they would point out, monetary policy meani to be flexible. Money can be made reareer and dearer when there is too much of it about, but it can just as easily be made plentiful and cheaper when there Is too tile of It about.

Let us leave the

to puraue

more

there

Dollar reccung

stocks

National Cash iter. PA National Dairy Prod. vi.. National Leed

Natką Steel · Derp,

New York Central Norfolk & Wester Hy Olin Mathieson ot Elevators. Owen-Elijoole Claon Oxford Paper Co, .. Paelic Gas & Elec. Pan American Airways Paramount Pictures Parke Davia Col

Penny 3. C. Co. Rent Salt Co.

Philip Morris .....

Freger & Gamble Pittsburgh Plate

Industries

Pure DA........

Radio Corporation Radio Corp, Pref. Repute Steel. Reynolds Matal Shell Ok Ca

Bath Her Paper

| Sinclair Onl

Bocong Mobilol

Southern National O

Southern Railway (Cont.) Bundard Brands

Blandari Qu of Cal Standard Ou et ind.

Standard 011 of NJ. Sterling Drug Co. Stokely-Van Cams. Studebaker-Packard Corp. Sunshies Mining

Bw & Co. Téza Co

Textron iné.

Tide Water Assn. Oli Twenty Century Fox im Union Carbide

131

NEW YORK COTTON MARKET

Now York, Nov. 18. The upward trend in cotton futures underway for a wack or more, gathered speed today as traders took on incrónalngly dim view of the crop plèturo.

P.I. Refinery

Manila, Nov, 18. Negotiations for the establishment of the first Filipino-controlled oil refinery in the country were underway today, according to local busi- ness quarters.

Ramon del Rosario, president of Philippine Investment and Management Consultanta Inc. sald executives of the Krupp enter: priscs in Essen. West Germany. recently about Equipment for the refinery.

ho had talked willi

SINGAPORE STOCKS

Brokers

Singapore, Nov. 19.

today qualed

He said Krupp engineers add Scoring gains of better than technicians were expected to US$2 a bale, Widest for any arrive in the Philippines in following stock prices: session in coorly two months | February next year,- all deliveries through Oct, 1938 4% reached seasonal highs

with

tha

Opening | Datu, Lintang Bubber Co.

Lid. sakusanaatidega... #1:57

Bomee

Petroleum Byndicale

460 Consolidated Tin Stellers

40 por als

Mr del Rosario sald current December penetrating cont of the capital mock of the the 36% ceat line.

proposed refinery would be sub- Profit-taking whittled extreme scribed by American interests gains a trife at the close as the who prefer the partnership general list closed 22 to 38 method in helping the economic points higher. The market was development of the country. up 20 to 34 points, New Or- léans closed up 20 to 20 points. He added that local capital Continued wet and cold was already available for the 09 weather over unhärvested areas, | project:

and heightening fears of sharp cul in production and irreparable damage to grades,

the dominant #continued 30 Auence, Improved business in the long-dormant textile market das aided the úpaving,

30%

01:

41%

in

rest & Neave Lid Ord... 13.30 & Neavs. 71% cum. Gammons (hialaya; Limited 32.2716 Hongkong- & Shanghai Dang=

in COPIA Ltd. ong

Kumpas, Ltd.

$455

$1.50

Lussa Rabber Estates Ltd. $1.03 Malayan Breweries ........

Kuala Kampar Tin

New. Berendam Rubber Co.

id.

The oil refinery project was conceived, ho said, by Phiruma, Petaling Tin Ltd. the new company whicta speur-Bingapore Cold Storage beaded the purchase of the Straits Trading Bacnotan cement from the Giralle Steamship government six months ago...... Crop students believed the United Press. long spell of bad harvest weather will mean a cutback

In production to below 11,000,- 000 bales in the next govern-

crop meht

estimate, Tani would be 4 million' bales less 182 than the last, official figure and 2013 | almost 13⁄41⁄2 million bales under

the September high of 12,713,-

000 bales.

61

Month

15

pos

31

Union Our Cal. Unden Paello Railway United Aircraft us. Foli "B" UB. Gypsum US. Line Co. US: Rubber

U.B. Amelting UB. Steel Warner Bros.” Weringhoum klecidió West Va. Pulp & Paper Woolwort

**United Press.

Volume Open interest

42.300

17.400

10000 $44,000

31,000

291,100 30,000 163,300 11800 114.100

1,109

11.900

3,200 12,600

790

300 109,200 1,011,100 bales

NEW YORK PRICES

Prices

of

cotton

futures

5914 closed today as follows:

Spot: 36.60; Dèej 30.89. Mari 25.55: May: 36.36; July: 30.83; Oct;. 21.59; Dec: 34.55b; Mari·34.32b; May: 3.25.

New York Rubber

Market

New York, Nov. 18. shares from the 880,000 total on The market closed mixed Friday.

-20 Rails

30. Industriala

is Utilitie

40 Bonds..

05 Blocks

Commodity Futures Indez..

Closing Prices

Alden Inc. Aoy:

were higher Ailled Chemicals Allied Mill Inc.

sweet recovery last Friday. - United Press.

final word. The argument will New York Foreign

This, of course, is not the

continue and grow, and wil argument the second probably noi

when stop even main line of criticism of the Redcliffe Commities "on which the working of the monetary front certain and credit staten" publishes lla "academic economists and City views.

Government policy,

comes

chiefly

of London businessmen.

Quarrel

Exchange

New York, Nov. 18. Closing rates were:

Pound sterliner (unotnoial) » 3.83–2.05. The only thing that will

Canada

1.04-1/16 .convince many people that the | Wigland (official)

2.09 policy present - monetary

-day futures 1.724% 90-day tutures 2.75'

RSM-0/10 E17931

20200-1/24

2105

can

hetually induence the level of Australia.... They quarrel with the central economic activity (as opposed New Zelandi argument in the Government's to following or bludgeoning it) South Afrion policy that "there can bo

is proof, no

So far, the record Belgium remedy for infation and the does not show that I can Pakistan steadily rising. prices whith go achieve

steads with it, which does not include expanaloh by light touches on and, indeed, la not founded upon | the-controls.

a control of the money supply."

If this were so, why, they

Fadin

economic Clases uhitianged. United Press

So the defenders and.

ask, is it that prices have risen of Bexible monetary policy will

in recont Fears desplie the both be watching with interest success of official

measures to

jta soo whether the one-half, për

cent reduction in the American keep the total money supply stablo? In the past three years, equivalent of bank rate has this supply (bank deposits plus come in the to

Hote

London Foreign Exchange

Londani, Nov. 18.

Allis Chalmers

Am. Brake Dhob

American Airline

American Cable & Radio Corp. American Eretamid Co. Amer. & Forgh Power Ant. Math. Ardry American Metal American Brivelling Am. Surk, Red, American Tel, à tél American Tob. " Antconds. Creper Armco Sted)... Armour Side All Cobá, Mihika Ha]dwire+kipán-Haam Baltimore à Oko. Bendix Aviallon Corp. Benguet Cana. Bethlehem Steel Bosina Aliphae, Borden (Thay ko. Burrough And Machine Canadian Palde R.

(JA.) Co. Cat. Trasigt Celanese Corp. CIT. Financial Corp. Chrysler Motofu Cilmax Molybductio Chett Paspody Colgate-Palmolive Co, Commercial. Credit: Consolidated Edfor Continental Du al bel, Crown Killar Blen Cubes Amer, Bugur Diamond All! Diamond Match Co. Dupona de Nemours Esteri Altling

avert the Foreign exchange rates closud | Dew, Chemicals "....

circulation) has changed recession now threatening the as follows: hardly at all, but prices have United States-Express Service. riden il per cent

The reason for th

If edi FDA H Lital re- strictions on the total supply of money are pulllied by the con-

Increase h Mequent

the "Velocity of direulation." Reduced

to averyday 147ms, this altiply means that the same amount of

London Metal Prices

London Nov. 18. Prices of thalais élosed today

money is being used more aften. ta staring per long ton as fol-

Ani it defeats the purpose of

controlling the

lowk sveráli võlum

of moneyIE A Pound noth

Babe three transnationa för | Copper, Spół

avery two it did before,.

The Government-mosannat | Leed. Sud

simple. Kasdiens: of printing

Chancellor Peter Thothay

יוון

How Yɑth: 1,86-85718-1.80441 Mont- Eastman Kodak Foal: 8.09-7/10-2011 Amelardan: El Paso National Gas 10.894-10.6EU Brüksels). 149-3716-} Family Fifiance Corp. 110.RO: Franschiet;• 11.1995+1%?5453|| Ford Motor Milan:

General Electris 20.00: Stockbean: 14,56%-1150%; general Yoods. -VIADUKT, TEXTUKT1.5*: Zurichi 11.99- | Centri Kolory dan Pus. Vní, ∙18.11.

Copenhago, "Lugon and Paris - C changed.—United Prine,

Exchange Rates.

vinonicial exchange

Prices

NEW ORLEANS.

of 'cotton futurea closed today as follows;

pot: $5.39; Dee: 30.48; Stat: 26.43b; May: 30.346; July: 25.99-92; Oet: 34.30-40; Dec: 34.19; Mar; 34.30b: May: 54.295.

LIVERPOOL

Cotton futures closing, in after earlier easiness, with pence per ib, were as follows: Old contract: Dec/Jan. 22,194; London buying credited Mar/Apr: 2011-50 (trided); play with steadying the for- DeNev: 26 In.

June:

28.410; 20.360; July/Aug; ward deliveries. Nearby Now contract: Dec/Jan: 20.85; Mar/Apr: 21bin; May/J009; 27.10; positions were relatively fuy/Aug: min; Oct/Nov: 21.02. neglected.

434.90 103.92

5.48

148.90

183.23

SAO PAULO Consumer buying in the dell-

Colton futures, closing vered market remained slow. cruzeiros per

kito Spot No. 1 Ras was quoted 27 follows: cents hominal. Shipment offer-

**Dea: unquated: 'Mar: 38.70; stay: ings were reported inoderate but 38.70; July 19,00, Oct: #25:

in

DS

still too high price attract

# 15% buyer attention here. Afloat rubber was described as "going begging" by one observer.

Were

In the United States the average price of one-inch cotton

at 14 designated spot markets were not available.

Total sales at these 13 mar- Rex rubber futures closed off kota were 125,084 bales, United E39 to up 2 points with sales of Press.

$4 contracts. Closing prices:

Nov: 20.76b; Jan: unquelad; Mar; 11.3b; May: 27.550, July: 7.47 traded: Sept: 27.455; Nov. (1988): 27.45b.

Standard contract closed off 83 to up 2 points with no sales reported. Closing prices, all nominal:

1

Now! 26.75: Jan: 17:18; Mat: 27.55; May: 37.25; July: 27,47; Sept: 27.45;

NUT. (1968): 2.4.

ABISTERDAM

The rubber market was quiet today with quotations un- changed, since November 11.

LONDON

The rubber

market >WHE

New York Sugar

Market

New York, Nov. 18. World No. 4- zugár futurah today closed unchanged to saveh points: higher with sales of 245 con- tracts,

Domestic No. 5. super closed unchanged to one point higher with sales of three contracts.

Dealers reported ‘a routine barely steady with spot qubled kituation with refiners and at 22-9/10...

commitalon houses" on both No. 1 na spot! #2+%

sides of the market pentingg Beltement houm Semuar Jan/Mar; further developments in raws,

Apr/June: 13-99%, 2% 13: JUN/Bapi: 2333* Confexet No. 4 (World),

OnBral markets, gil bakti, boltar

NOTE Buyers; Déc: Aj42296: 2004 July 200a; Sept: 3866; (b

3.0301 MARK

GË

sinchanged)

•Estate stopy: thin Nov. un- quoteà Đức. 14 nominal. Thick as Gwen' the previosta #k2;- Nov, uäquoted Dec. 24 sellers.

SINGAPORE

Marr 8.Bibi

apot price; Lostia Der

Mövz

Cisalije rumber prices weig:..

lower:sheet but factoriaTY quiet,suntlad Preen-

*

*

*

*

*

*

+

*

*

United Engineers Ord. Wear BroM. Lin

À cundiv=China Mall Spéciál

PO B·I EA

COMPANIES

PASSENGER/FREIGHT SERVIČE

PENINSULAR G ORIENTAL SA, CÓ.

Outwards'

“GANTON"

"SUNDA"

"CORPU

"BALMARA"

"SINGAPORE” "CARTHAGI" "CBUSAN"

Bom wede "CANTON" *COBFU "BUNDA" ✶ "CARTHAGE" "CHUSAN" "CANTONTM

+

Leaves London Due Bougkong

Balled 17/10

Bed

Bailed 13/11

Selled 10/31

4th December

11th, December 17th December

10in December 15th December 25th December

19th January · 15th Faciary

Leaves Hongkong Bue Lohdon

22nd November 10th Diombatr

(1707). January 30th Jantiary

234 December 19th JaniscY 12th Feliciacf

17th February

27th February

11th February, 18th Maroti

Via hingapore, Printang, Colombe, Boñdný a aden. * "BUNDA" omibs Cálatába à froinney,

calla at Tavro k nætónde fúnkurs, Rotterdam à Ánèves.

BRITISH INDIA S.N, CO., LTD,

"BANTILA" dae 17et Nov.

salia Pak Nov,

“BANGOL" do it khi.

"OKHLA"

dup. 14th 1200. seite 15th Kies:

from Jagad

for hinguses, Synedd. Rangoon & Caloutta

trem Calcutis, Rangoon A Seresto

from Foun

for Bibi apore,, PRZÉSNĖ, Rangoon & Chlectio

· P. & 0.7B. I. JOINT BERVICE

*ITOLA"

das 22th Nov balle Sist Nov. POZARDA” due and Died, salts 412 Dée.

"TIRIA"

dee ath Dek,

salla Tih bide. “UBLANA”. due 11th Dec. satis 19th Dec.

frem Bingapore, Ductals, Bombay on KATIKA

for Jabl

• für Bibongeza,, Powoday,

E

trim žádrík, Kakitadt, Petrus, A Gingspoes The Japa

from Tapas

for Singapore, Bombay, Kabels & Rackets --

EASTERN & AUSTRALIAN 5.1. CO.,

"EASTERN" landnäskets-Bas, –

All TORGIA KAYO žběrky, le véli,

Por tal medical se

HE HASE

1

"