1958-01-20 — Page 9

THE CHINA MAIL, MONDAY, JANUARY 20, 1958.

TRADE and COMMERCE SECTION

Boost For Businessmen's Confidence

New York Stock

Week's Review Of The US Economy Market Review

"INDIRECT" ACTION BY

GOVERNMENT

TO HELP SITUATION

By IVAN ZERINA

New York, Jan. 19. An unexpected "easier money" measure raising credit for the purchase of stocks, and President Eisenhower's statement that he would prefer deficit spending to boosted U.S. an increase in taxos, businessman's confidence last week. Although the President, at his press conference on Wednesday, stressed this was not the time for any direct government action to help the economy, he left the door open to any of the "indirect" measures on the part

came of them Administration. And one within hours.

HONGKONG

STOCK EXCHANGE

NEW YORK COTTON US Cotton

MARKET REVIEW

New York, Jan. 19. Cotton futures operated from a defensive position attention last week as traders divided between the slow textile trade and confusion over new farm legislation possibilities. Our Own Correspondent

At Friday's close the list ruled Business done on the Hong-off 30 to 54 points $1.85 10

Stock Exchange

this $2.70 a bale-lower than kong

$314,000. Noon quola- matamounted to approxi- proceding week.

Spot March contracts at 35% tions and the morning's trans-cents a pound showed a cumula- tive selback of 150 polats-$7.50 a bale-fruin the season's high established on Dec. 30.

uctions were;

Share Buyer Selters

BANKS

Fast Ala..

lon

bombard

0471

INSURANCES

15

*

6.45 6.50

121

SHIPPING Wireticks.

DOCKS, ETC

K. Wharf..

It was the reduction by the Federal Reserve Board Provident

of margin requirements on the purchase

(N)

ATK Hotel..

or short sale of stocks from 70 to 50 per cent. LAND, EŢU, The move, in effect, makes it possible to borrow half the market value of

12.10 2.30 11.20, 11.50

GALER

+850

5 @ 047.50

10.30 14.30 1,000 18

listed

HK Land

1.500 u 18,10 2.500 18.2 1,000 16.30 3242 17 1500 3224

15.80 50015 09 135

1.325

securities instead of only the 30 per centumphreys permitted up to now.

The financial district hailed

Healty

ACEBER

Trust

re-

24 24.40 noty

100 03

be the Amalg One of these would

in the the move

Federal long expected cut as further action to counteract the current discount rate the fee charged UTILITIES

Tram business recession and the de-member banks on borrowing Yaurati

10. 16.99 which at present is pegged al 3. Light

400 17 the stock market,

500 10.00 Some Congressmen

20 44 30.70 The New York Stock Exchange per cent.

on have called for a eut down to 2 Electric 20.70 26,90

1,000 25.00 opened strong and active Thursday with some gains per cent to help stimulate

20 28.20 2200 20.0 1,600 sf 20.10 high as $3. Initial trading was

ellae in

from

UNCERTAIN

the

But other observers were less certain on that score. That coterle thought some loopholes uncovered In the might be Agricultural Act which would termit the administration to go ahead with Its lower support and higher production plans.

The

Goods Market

| LONDON STOCK the business

MARKET

this way.

They took

expectations

were based

cotton.

BY ELMER WALZER

New York, Jan. 19. Railroad shares starred in a higher stock market in the past week. They registered their widest gain since the week ending Nov. 25, 1955, and reached a new high since Nov. 11. Railroads were in the news | City Southern, Northern Pacific, all week as Senate hearings Katy preferred and Western brought out their ills and set off Maryland. Indications something would be done to help them. In addition, | Wall Street bolleved the group had been oversold.

Motors ruled Arro Du Font gakkod 43% in" tho' chemicals.

traded Of the 1898 ICS 1,047, 214 deciked and 137

It was

the hald unchanged. smallest decline total since May There were 52 new

21, 1950.

highs and 20 new lows for more than a year—United Press.

BOMBAY BULLION MARKET

was

Now York, Jan. 19.

Next in importance to the rail Sallora of cotton gray goods news was a cut in marging from

reported another wook of 10 per cent to 30 per cent made Federal Reserve on slow trading, oxtanding bythe

Wednesday after the close. Next stalomato

day the market ron up a volume existing sinco before at nearly 4,000,000 shares with Thanksgiving, into the i tickers late as much as eight third straight month.

minutes but prices slipped back Buyers operating with incress after a sharp first hour rise.

RAILS GAIN ing caution since tald-November London, Jan, 19.

became increasingly wary last Uppermost interest centred on The markets have had

Rails gained in every session week when they found an in- the farm legislation picture.

quiet week, with activity creasing amount of basic print of the week and their average Administration recommendations

cloth and broadcloth fabrics closed at 107.10, up 0.94 points shrinking each day from

the week, In tho week for lowered supporte and in-

coming out of second hands at on brought creased production

Monday's 8.800 bargains lower prices.

ending Nov. 25, 1955, rails

Bombay, Jan. 19. closed at 167.83 up 7.78 points recurring furries of selling.

to Friday's 6,400.

development proved for That

the week,

bullion market helped by The What chiefly impressed the keenly disappointing to weavers anticipation of several rall stock However, reactions met

dominated by the marked underlying demand from trade City of London though not who had counted on a business splits.

strength of gold, where and commission houses on the headlined in the press were pickup getting underway right

Utilities closed the week at belief that expressed opposition the trade retums for November ufter the New Year. Optimistic 71.38 up 144 and a new high

values touched new highe leading

for sororal months in the. agricultural and December, spokesmen to the drainistration What the City did was a little three factors: 1. Reductions in since July 15, 1997.

The average for 60 stocks

week to January 17. the surplus mill stocks accomplish ariahed the week at 15441 up proposals lessened the chances arithmetic.

The buoyancy was attributed for any legislation now which@gures for Imporis and reduced ed after weeks of curtailed 3.63 points and industrials were to the seizure of some contra- could be applicable before the them by one-ninth in order to operations. 2. A heavier

band at 444.12 up 0.44.

supply, and striçler 1959 Crop.

get the actual value of the goods Lucklog of unfilled orders.

On the basis of the Standard vigliance in anti-muggling $c- landed; repeated Investigations The high cost of raw

500-stock Index, the tivities by both India and East have shown that the one-ninth | BrokerS felt the mills have & Poors

rose by 13 cents a Pakistan. represents the cost of carriage, achieved a position where they whole list

Stocks at the and walt for share which means the valuation

end of the could "sit tight" Insurance and freight.

of all listed issues was enhanced period were 20,000 tolas" with But these three items really the buyers to come Into the

by $3,400,000,000.

arrivals and office balanced at of in-market.

Wont Street construed the 3,000 tolos." belong in the category visible inde; they are deducted

SALES

also margin cuts a favourable "invisible"

The sliver market was from the country's

market cheerful though some profit- Instead, Inst week second development but many income from shipping, to show

in hands cales

developed on the experts believed it would mean faking at the bulge ensued. the true net income earned

10 the market until markets bellwether 60-square 1ttle

Traders attributed the better Handled $11 this way, the print down to 17 % cents a yard, business turned for the better. tendency to smaller then anti- erep arithmetic showed that if Bri- this came within 1 cent of the Most of the trading in the cipated arrivals as well as talk in old action

of higher costs for Tibetan deliveries, besides reflecting the tain had 10 more months follow-12-year-low registered in mid-market is fcr can just now.

Most mills demand and the Ing the pattern of November October last year.

DEBIT BALANCES

colns. pause in mili

at the end of the Stocks dullness

their in textiles, also was and December,

exports have held for 174 cents a yard.

The stock exchange reported period were 1,500 bars and off- Indications that and re-exports would, at the belind the STORES, ETC.

coupled with The motivation

Wholesale dry goods

that net debit balances take 15 bars daily-China Mail in end of the year, 130 18.30

exceed their Weck showed a definitely cauti- lowering of the margin require Diy

11,00 12 156 21.00 the tight supply eltuation

white cotton, which was an im-imports by somo 200 mulien cus attitude, Many users were customers in December declined ments on purchases and short-Watson

portant factor in the recent sterling-a favourable balance decidedly reluctant to go too far to a new low since Dec. 1954, selling of stocks was the CUT COTTONS

sharp rise has been relieved to of trade. Reserve Board rent

forward for the time being. and were down 306 milion for The Federal

of "speculative Textile ..... absence

The debit balances for Nanyang...

a considerable extent by pales

It gave much pleasure to the They wonted to see how the all 1957. Indication that pressures," customer credil action was an

out of the government clock.

hord-pressed community, though stock market bchases ever the represent the amount borrowed by customers to buy stock on business concern has gone full buying or "currying" stocks was INVESTMENTS

anti-inflation

December 1955 Yangtze "...

nearby term and possibly detect down from

margin. circle

Moreover, it was reported, there are no illusions that

in- It was noted that the anti-deflation measures in the peak of more than 4 billion to

many milis have lowered grade more such months can be easily therefrom some clue on future

averall business prospects. reports of 3.6 billion at the start of De-

slin requirements

that the managed. wake of continued

and

mills who have dustrial department met further cember 1957. Broker and dealer

Conversely, dermond in principal

spot higher unemployment, layoffs, and drops in both indus-credit was down from 2.2 billion

been holding the price line for stance when the average got markets currently is said to be

burdir at billion at Trial production and personal in Dec. 1955 to 1.8

for medium grades.

But things were steadier than week said they would consider Up to 450, considered

a further curtaiment of operamen said, however, it easily income for the end period of the end of 1957.

they have been, Domestic Taw

There was a steady demand tion along the lines of the recent could be surmounted if the rail- suraption during December

continued to lead The for British Government stocks, Christmas vacations if the price road issues proved disappointment.

and situation storts to deteriorate the market higher. last month of which lifted old Consols

Trading was active, thanks to Any further. The Directors of The "Star" disappearance

For With the price of raw cotton the big day on Thursday, Ferry Company Limited, un-671,287 bales came about 30,000 War Loon by 5 shillings.

under expectations and But more interesting perhaps

the total reached nounce that at the forthcoming bales

with 656,205 bales was the steadiness of the lead-where It is, millmen said they the week

shares. A dally Ordinary Yearly Meeling of the compared

any even more" if the market con-average of 2,419,521 shares, of the 1947-48 average three hand and increased spending on Members of the Company they used in November and G30,030 ing industriais: they had just would be forced to cut output 19,097,003

consumed in December, enough buying to absorb

Higher than last week's 2,230.080 points off the November level sales promotion and advertising will recommend

the payment bales

The dally rate use in pessimistic selling and to lift tinues to slip."-United Press.

overage but well below the and eleven points out the record on the other.

of Final Dividend of $5.00 1950.

3,208,795 share average for the the real strength December 1058 level.

was best A Dallas, Texas, department per share in respect of the year December this year was 28,564 prices by 6d of a shliling. But

| bales.-United Press.

week ending Jan. 3, à four day Personal Income, us recarded

shown in the absorbing of the

week. Department, store, for exemple, ordered its ended December 31, 1957.

selling. by the Commerce

With the Interim Dividend of to discover possible fell to an annual rate of 343 executives billon in December-down 2,3 economies by personally under- $3.50 pald on August 31, 1967, taking all jobs own to the this will make the total dividend billion from the November rate.

Unemployment, as measured west level. As a result costs payment for the year $9.00 per by the Labour and Commerce; have been trimmed eight to ten share, departments, rose to 3,374,000 in per cent, including a cat in the mid-December-an increase

as

In huge-blocks-for example up

to 10,000 shares in Royal Dutch -as bunched orders accumula- ted during the night.

1957.

Industry

to

Industrial production dropped

In December for

fourth

straight month. The Federal

the Telephone lo everyone, reduction is cx-

INDUSTRIALS Cement

llow of credit Generally a

pected soon.

from

Mixed Picture

the

Reserve Bourd

output of the nation's

the index of

The plcture of U.S. business mines last week was a mixture of con-

retrenchment on and factories was 130 per cent tinued

one

of

number of porters.

nearly 200,000 over the Novem- trend ber lovel and the continued in the form of exten- sive layolls since then.

Psychological

23

4.30 4.05 1.40

5.30 5.45

Star Ferry Dividend

SINGAPORE

STOCKS

As another example, Trans- World Airlines

is revising lis list of company-paid gold club memberships of its employees in see how many can be eliminated. One the other hand Borg Warners Norgo Division gave a show

Singapore, Jan. 20, 5,000 parly in Chicago

Brokers today quoted the of refrigerators; its new line President Lines announced plans following stock prices: to increase advertising by ten

and Ford's Batu Lintang Rubber Co. per cent this year.

244. British Borneo

Workers idle as of Dec. 15 represented 6.3 per cent of the nation's labour force. This was the highest level in three years und the highest December figure since before the Korean war. The latest tally placed the num- Edsel has offered higher bonuses

ber of jobholders at 61,390,000 to its dealers.

down 477,000 from mid-

Ord, This last move came in the

cotton

con-

Production of US Cars

Detroit, Jan. 19.

STEADIER

4

10

Oils were rather disorganised, though by the end of the week they had digested a good deal hned of selling. loyal Dutch,

sterling, but Shell Transport closed unchanged, and British Petroleum actually gained shillings.

2

IN

not

39 be,

inst

Swiss Gold

Bar Market

this time.

major Market

So far this year trading has run neck and neck with a year ago-27,493,801 shares against 27,856,346 shares in the 1957

period. At the close this past

week, utilities show

gain of 2.10 points over a year £80, while industriala are down 3334 points and ralls are down 44.03

Individual gains in the ralls

Special.

Paris Gold Market

RalliesTM

Paris, Jan. 19. After continuing its down- ward trend early in the weck to January 17 the gold market rallied sharp- ly at the mid-waok.' This reflected the Govern= ment declilon to ask the Ne tional Assembly for a vúto of confidence, which was iskan to indicate increased domestic dif- culties for the Government.

Franco-Tunisian tensión also caused concern in gold quarters. The rally was abort-lived, however, and bola Ingels and coins returned to the earlier. ¡ow levels.

Towards the end of the week the market was besttant and idio with dealers reluctant to undertake new commitmedia.

The favourable, vote for the the Assembly Government in had little Coia!

effect--China” Mall Kansas Special.

Western

Zurich, Jan. 19. Gold shares

The Swiss gold bar market points, to popular as they used

because

displayed a steady ton, partly

the City 13 troubled by the

dency in the week to ranged to 4 points in political

Paclie. Advances of more than reported from January 16. While demand a appeared in Atlantle

Dia-

was moderate, sellers were| Line, Great Northern, reserved.

Ward's Automotive Reports acrimony daily

South Africa. De Beer

G

The Bank of England has con-

Bald today that despite monds enjoyed some good buy- scattered shutdowns autoing, which lifted prices by production this month shillings, but the old gold finan will be the fourth best clul shores were all down by 1siderably restricted its volume January **** $1.07

Opening

Petroleum

Byrdient:

Tin Smelters Consolidated Tin

401

ZBH od

tory.

Neava 715% cum.

$4.00

pret

unemployment statistics is ex- of the Edsel Division with the Gammons (alaya) Ltd., $2.00

Division to Hongkong plained by the fact that not all Lincoln-Mercury perzone without jobs immediate "effect operation ly register as unemployed.

*

静

economies." Banking Corp.

Shanghai

$450 Es d $1.00

Dr 2

total in

hin

rc-

of transactions and sold virtually shillings. Japanese bonds dominated the no gold in the week.

Demand from the Middle East | The foreign market.

was com- Wards predicted about a half.senteds of the 1907s jumped was limited, but it November. The discrepancy be-

£3, those of the 1024s Jumped paratively good from the Far TropiceJob-face of news of further Ford-Fraser & Have Lid Ord. 14.075 million cars will be built this and of the 1930s, E142. East and South America, No tween the

month, fewer then JanuaryThe assenteds

had scattered orbitration dealings word holders' figure and the rise in Edsel layoffs and of the merger

production in 1935-50-37 but rises ranging from £1⁄2 to £1. parted. better than all prior years.

The gold coin market was German 01⁄2 per cent Potash Wards said production for the non-assenteds lost £1, but the weaker in the week and price final ten days of the month is assenteds of the 7 per cent movements in Paris failed to in- fluence it. Sovereigns fluctuated being "geared closely to sales Potosh rose £1.

Premium for dollar stocks widely, but on balance nd will be trimmed or hiked accordingly.

closed the week unchanged 31 steady, with repeated demand from Greece a supporting factor. plants 8 per cent-United Prosa.

Vrenells were also generally steady, while Napoleons tended Prices for 20-mark to wesker gold coins were virtually un- changed, but there were in- prased offers of United States Bags China Mail Special

Bongkong Tin Ltd. The layoffs of 1,500 men will be Kumpar Ltd...... Both Wall Street and Wash- at Ford-Edsels Loulaville plant Kuala Kampar Tin tington looked upon the lower- starting on Feb. 1, Ford of Linas Rubber Estates Lid. $2.00 ing of stock margaln require- Carda is suspending production Malayan Breweries......... monis primarily us a psychologi- for seven days to adjust field flecting SOEK the inventories," cal step. Spokesmen Bnancial district were pleased, 0,200 workers at Oakville and of course, but they pointed out Windsor, Ontario.

for

that people who really wanted

to buy stock would have bought

it at the old 70 per cent rate,

too. They also pointed out that

people who really know about

Better Things

Predictions of better things to

business seldom regard stock come were golore. Standard &

boom

and

Production in P.S.

this part woek was estimated at 129,022 cars and trucks,

$3.40

New Serandal Rubber Co.

Ltd.

$2.50

Petuling Tin Ltd.

$2.30

Taffles Hotet

$2.00

Singapore Cold Storage

$0.01

Straits Tuding

$1.00

Straits Blenmip

$10.00

United Engineers Ord.

$1.30

Wearne Dr.

$3.12 -China Mall Special

down 0.1 per cent from the 199,088 week assembled the previous

and 22.8 per cent below the same week last year.

markel rises as necessarily re-Foors sald in its annual forecast Agreed Merchant Rates weeks before, flecting a business

for 1959 "the business recension should end within vice versa.

However, they said, to the months. nation

Allowing

A

few sub-

Canadian 3 Maximum Selling,

Minimun 17-1/10;

Buying, a whole activity on sequent improvement, we look | 17-6/16 T/T, 17% 0/D. the stock market is a symbol of for small full-year dips in in-

Belgian Francs: the country's economie health dustrial activity and total cor- and in that sense the Federal porate profits

Reserve Board measure is more

approximating level."

with dividends Selling 837.

the record 1957

Bank of England Statement

►

-10,446,015 204,150,000 200.74003

84418303

Car production was 110,540, down nearly 10,000 from the

London, Jan. 19. truck production

The Bank of England state- was 10.070, up more than 1,000.

Wards sold Chrysler Corp. mont for the week ended Jan.

15, reeds as follows: eut production by 30 per cent Notes in circulation

$1,094,772,012 but in the first ten days, *Pablla deposita' Maximum January created "bright spot" Private deposits...... in sales as its penetration of dovernment pecurities.

the other securities the market Jumped to

Receipts highest monthly level since last Batlo October."

Studebaker- do the most good where it is electronica industry, predicted a

Corp. at South Bend. Dodge and De Boto here were most needed-casa recent "tight general production increase money" policies to the point Avu per cent with "some aeg- Bosses was done in the tool Idied last week for Inventory

Answers-1}·- this adjustments Plymouth cut back where busincay will again think ments in the industry looking unomista unchange

much more at the following this production, Buick cancelled last of Investment and plant expan forward to a boost of

1.3. dolar (per $1} sion instead of tight inventories as ten to twenty per cent. The uteria noted (per 211 pun ind

roonomies sales and servito gross in 1938 Australians noted) (per £15 personnel further measures will be neces-may mount: 10 about 14 Indonesian rupiah (per 100)

Siam Utsi (per: 100) hitları,"isUnited Press.

Eingapore Ustratio)

than justined. It should raise

retail sales, for example, bat to

sary.

Wards sold Electronica, a magazine of Exchange Rates Packard

of

markets

NAMESAKES

Languages,

Conjugales,'

Bank Of France

Statement

were

Paris, Jan. 10..

The Bank of Francó statement for the week 'onded Jan. 9, reads [as follows:

Total gold holdings i

Tolal other surreccion Bight bejerice · abroad

Consonantu, 2 BATATA DENK ALCOUTIN 18 Saturde Assembly Fit Hounde, Brother, O Grammar, pancing in clerus

atu Ford (shut down five plante 7 Foley, 8, Philology, German, for leak Saturday. - United 10. Wilholm.

·Jacob Grimm.

201301301420

11,771,000.J800

750.655

Current MCOLDSĄ

SHIP

BEN LINE

PHOTOGRAPHS

by our Staff Photographers

Police Sports Boundary. Sträet Annual Bisley, Kai Tak Range Children Visit U.SS Chandiler. Children's Party Aboard U.5.5. Wiltsle Photo of Mackerels Taken Off Lamtong Island Inauguration 25th Kowloon Boy Scout Group, Morse House Dedication. Tung Cọ Wan Lutheran Church, Shakir Far East Fleet Rifle Intg. at Stone Cutters A1 Local Sportis.

Local Presentatiahs Local Weddings

Exc. Etc.

Available at

SOUTH CHINA MORNING POST, LTD.

Wyndham Street,