1958-02-03 — Page 9

THE CHINA MAIL, MONDAY, FEBRUARY 3, 1958.

TRADE and COMMERCE SECTION

Week's Survey Of US Economy US Manufacturers

Easier Credit: A Major Weapon Against Recession

By IVAN ZVERINA

New York, Feb. 2.

Easier crodit emerged last week as the major weapon to fight_rocession but there were warnings not to expect over night improvement. True money became more plentiful over the The so called "free" reserves of week. Federal Reserve System banks got up to the first substantial volume in almost a year Bome 170 million. These are the reserves that are used as a base for more loans. More banks all over the country followed the pattern of cutting the discount rate from three per cent to 2 per cent and the prime rate of borrowing from 41⁄2 to 4 per cent.

Recovery In Wool Didn't Last Long Enough

London, Feb. 3. The Financial Times said

today that recovery in wool prices had not lasted long enough nor raised prices.

London businessmen's This dally interpreted a decline in Australian wool mapplies as an important factor in increasing prices.

Australian prices were also Arm because Japanese buying had remained at a high level, It added.

"But so far there is little to suggest that there has been much of an increase in buying of semi-manufactured goods.

"The retall trade is not weakening, but It is also not increasing much, and it is only when the outlook is mor en- couraging that a sustained rise can be expected.

"But until that happens there will probably be little change in price level."—Reuter.

i

HONGKONG

STOCK EXCHANGE

Our Own Correspondent

Business done on the Hong- kong Block Exchange this morning amounted to approxi- mately $513,000. Noon quotations and the moming's transactions

усто

shares.

DANKS

ink Bank. INSURANCES Lombard BIPPING

Union

Waterbost Wheelock..

pOCKS, ETC. Dock

K. Whart Provideat

(0) Provident

ENY LAND, ETC.

Buyers Beers

かわ

040

70 12.50

32.50.

10.00

6.30 640

121

30

52

11.10 11.00

HK Hotal 18.30 18.00

This made the money markot K Land.. 3328 33.50 conditions favourable to long- 1erm bond refunding and Humphreys stretching out the opportunity | RunDEL and moved in with a package | Amalg refunding offer to renatico five securities due to mature between new and April 15.

Trust ITILITIES Tram

JAYA

The Treasury proposed, start Ing Monday today, to make an exchange offering of three new

Blac Terry securities: A 24 per cent one-

Yaurați certficate; year

a 3 per cent ] C.. Light six-year bond; and a 3% per cent 32-year bond.

The total amount involved in the exchange offering is 10.0 billon of which 5 billion is in the hands of the Federal Reserve system, But no cash will be accepted.

Bajes

New York Stock GOLD BARS Market Review

By ELMER WALZER

New York, Feb. 2.

Stocks gained irregularly during the past week, netted good gains for the month of January, and were well below the levels of a year ago in all but the utility section, Industrial shares alone of the major groups fort ground on the week with strong opposition to the advance developing in the area of a bit above the 460 tevel. The

closed at group 450.02 in the average, off 0.64 on the week and up 14:33 points fur January,

best closed

Ruilroads made the 500 4.33 showing although they 1000833 he werk below their best. Their average at 109.04 was up*1.41 on the week and up 1208 on the month.

90133.33

460 23.25

Utilities were up 0.34 on the week, up 1.34 on the month of January and up 3.69 polní, from the level of a year ego.

15.60 35.00 1.325

en Monday after the weekend 1.875 1.325 5000 g 1,30 suicide and Alleghany Corp. 30018 neither of these issues was in

1.20

and New 2000 1.30 difficulty, however,

York Central lost only 25 cents on the week.

The market ran into a snarl

1.20 1.25

24.20 24.30 2500 + 24.30 B00 0 24 40 500 24.40

123

·

17.20 37.00 2900 @ 17.16

Shipbuilding issues got a life ato in

| NEW YORK

COTTON GOODS

How York, Feb. 2. Now business in basic textile markets-cotton, wool, rayon, hard fibros and yarns--continued at low ebb last week.

Buyer cautiousness, apparent since late last autumn, appeared to increase in face of the b^cloud-

ca business picture, highlighting recession talk and a rising rate of unemployment.

In cotton goods, availability of second-hand goods at below mill prices put the quietus on

DISPLAY FIRMER TENDENCY

Zurich, Feb. 1.

The gold bar market dis- played a firmor tendency on ́a limited turnover in the wook to January 30. Rumours from Canada that

To Invest More Abroad

by Alfred T. Zoddo

New York, Feb. 2. American manufacturers will invest abroad at an unprecedented rate in 1958. Their invest- ments, together with those of other manu- facturers, will tend to shift the emphasis of world trade market-site production.

These are the reasons behind | Ameries at the rate of 1.2 this trendi:

billion yearly, to the Middle Bost, Asia and Africa at a 625 There will be intensification million rate.

the United States would soon of efforts by foreign countries ta Increase the parity price of gold | preserve precious dollars,

Because of the heavy in- supported the market and the

Duence

of petroleum Invest- The growth of nationalism willment in Lith America and the subsequent denial has falled so far to modify the trend sub-ead to greater efforts to reduce Middle East, the percentage

dependence on imports of foreign actual manufacturing investment stantially.

is still low.

As a seller of gold the Bank manufacturers. of England was very reserved.

Many nations will step up There was a constant demand efforts to attract foreign capital in years will be the key from the Middle and Far East, but there was litio from South America.

of

by offering special incentives.

Its increase in this and com-

economic diversification

to

The recession in American these areas, enabling herlihy No arbitrage dealings took business will cause management development of fest-growing place because there WDS noto look overseas for sources of countries.

Income. nargin.

The tumover in gold coins

Without diversification, their

was very limited. Tha Sover It is expected that sich cegini economies are subject to rapid the Export-Import rings up or down, to critical alga tended to decline on sales sations as

or

equally shaip

of old and newly-minted coins Bank, World Bank, and Inter-Inflation by the Bank of England. The national Co-operation Adminis= |defation. 20-Mark gold pleos was steady tration will play an important on an active demand.

rolo In siimulating foreign The role US. manufacturers their investment.

are already playing in this field Manufacturing Investment is is reflected in late figures on

United

sales by their overseas branches now flowing from the States into other countries at and subsidiaries. Some 2,500 the fate of more than 700 U.S. firms have such oversezz million a year. Present trends operations. Last year, goods would indicate that by the end made abroad were worth 33 of this year the flow may raise billion. Some

were even ex-

Napoleons maintained prices in limited dealings while Vrenella were barely changed. -China Moil Special.

other buying. Mills generally LONDON STOCK

held the price line and indicated

the week when some intention to make further pro- Companies received big govern-duction cutbacks rather than

contracts. Autos picked out prices 50 17.10 ment

or Accumulate 500 6 17.20 up a little either way. Oils inventories.

500 17:30 wero irregular with Jersey Elsewhero, broicers esid the

Standard down a fraction

Electric

27.10

370 ir 27

100 6 17 30

1000 68 27.10

129 27.10

100 a 21:10

10.00

20.70 A Lift

INDUSTRIALS Cement

.... 25.00 However, the

34.90 government Rope and markel was bound to get STORES, ETC.

Dadry. 15.30 10.80 Duft from this measure ami

and market

COTTONS

saw na Nanyang

..... 12.30

14

4.30

8.40

pave the way later for a new Watson offering of long terms for casn

The stock market, meanwhile, reached its highest levels this aw Pest week since early October, Textile

analysts indiention yet that upward trend MISCELLANEOUS culminating. They saw fur- INVESTMENTS her gains likely and noted with Yangtze

Sungaia satisfaction that the usual pre- spring tise has materialised des- pite predictions to the contrary as a result of current gloomy

usiness outlooks,

Easier Credit · Regarding the caster credit, this is where the easter credit polley is expected to help stem the trend before too long, but not immediately:

Through public works pro- Jects by state and loent gover ments which had been suspended

1.43

1.40

500

voluma of rezales was not

That company with record particularly pressing, but they sales of nearly 8 billen showed were more than enough to

500 si 21.30 dip in fourth quarter net matiafy the small day-to-day which loft earnings for 1957 at demand. "Any reasonable pick- 600 20.90 1950.

$3.05 a chate against $4.11 în up in buying this coterie felt.

quickly

the change second-hand picture."

Moreover, infila became In- creasingly concerned over the rising cost of desirable grades of raw cotton. Complaints became more audible about the "squeeze between cloths prices and cotton costs,"

Royal Dutch featured the markol in tournover and gained, 200 16.40 more than a point. Bethlehem, 304 1040 next in

volume, held steady 1500 a 18

0004 12.30. 8. Steel was third with a 388 12 30 gain of nearly a point. Jersey 100 @ 12.

Standard fourth and Alleghany Corp. fifth.

2000 59

NEW YORK COTTON MARKET

New York, Feb. 2.

THE BOMBAY because of tight credit; in home Cotton futures last wook

BULLION MARKET

Bombay, Feb. 1.

executed a complate turn- about

sharply moving higher to abruptly host a declino which had boon

under way sinco mid-

Dacomber.

buying with easier mortgage eridit; new investment in plant and equipment; but above all building up of now inventories through lower interest rates

icad- Two economy surveys ing business, magazines actually forecast an inventory levelling

Finishing on higher ground for In the butilon market during before casier money can really

Age four out of the five sessions, the get hold of things. the period to January 31 magazine says some steel users list at Friday's clase showed net the outstanding featuro are trying to hold inventories on adins of 38 to 04 points, or $1.80 was the sharp rito in the an even keel during the first 10 $1.70 a hate higher than the

Fortune Magazine preceding week. spot gold premium at the quarter; close of the period. This predicts a turn-up in production

in late February or March,

Iron Age

reflected the growing sca- sonal demand, inadequate supplies and bull pressure on the old contract.

Iron

Four faciers acting to reversa the trand: 1. Vanishing chances for cnactment of legisir tion in time to apply to the 1058, crop; The Iron Age survey sald 542. Agriculture Secretary Ezra per cent of steel users have in- T. Benson's announcement that dicated they will order as much he lacked power to increase the acreage this year: 3. Continued

ioan

programme; 4.

year ago.

The rise in January restored 14.33 per cent of the 1957 lose in Industrials, 12.08 per cent in ralls and 20 per cent in the 05

stocks.

out

опу

MARKET

London, Feb. 2. Dollars poured into London last week to enjoy the sensation of earning 6 per cent plus from investment in cozy British Tres sury This demand for sterling lifted the latter to 2.81% at the end of the week. the highest it has reached since August, 1954.

to an annual level of nearly a ported to the United States. billion dollars,

Manufacturing Investment i

The Importance of this shift

still, however, only about 1/6 toward market-site production of the total of annual U.S: over-outalde the United States 18 seas investments, now estimated evident from contrasting figures billon dollars a year, on the value of goods exported 4.2

for in by the

parent firms in the There is ample room

United States during the rame investments period.

at

cresses.

The rato

should rise becauso markal

They totalled 20 billion-0 an site manufacture Has bees billion lest

than the value of proved to impart specific ecotic goods produced by them abroad.

the bills, mic advantages. It chabita

The significance of this trend manufacturer, regardless of the nationality of the company, to is not altogether economic. It operate often at the source of leads directly to higher pur- raw of litermediate materials chasing power, betier llving and at the point of principal standards, Improved health, de- distribution.

clining mortality, particularly in The long haul --- raw ma- those world areas where a fast- terials exported to plants in the growing population might other- United States, processeă goods wise outpace food supplies. shipped back to the overseas

and

Balos for the week averaged However, warnings sounded 2,180,831 shares dally against an alsewhere suggested that

But some of the "hot" money average of 2,324,274 in the tendency to boost cloth prices is believed to have gone into previous week and 1,809,878 4 to compensate for cotton costs British government locks, at

market is being eliminated. American and other business, For January sales might well reset to the boneat any rate, quite a lot of money Local labour is being trained, by virtue of the economic drive were 49,871,350, against" 48,100,- di rayon goods,

Idid, Kiting War Loan 18/8 and

local facilities developed And to produce profitably, is thus 955 in 1957, and the best since

Already there had been un Old Consals 7/6. The Financial

American business finds it can helping to build a more balanced 1955 when January

increasing ure of rayon for in Times Index sales

of government touched 74,040,058, most for the dustrial purposes, reported: stocks closed the week at 80.80, produce just as economically world, breaking down the peri-

with production methods have" and the

distinction between the Robert T. month since 1929.

Stevens, President, the highest yet reached in the

"have Dot" face J. P. Stevens & Company.

of the 7 per cent bank similar to the United States Btevens said the 1957 quotas rate.

The increasing trend toward nations.

The effect is already evident production This brings us to the week's market site on Japanese cotton cloth exports

much of Latin America, to the United States had worked big headache should or should overseas manufacturing invest-

industrial arena reasonably of imports of tot the government lower bank ment will have far reaching where new

have trippled the purchasing economies affects сть Japanese woollens and worsteds. rate to, say, 0% or even 0 per

60- power of the population in A Ho said his organisation has cent in order

called the

"underdeveloped area." to protect been working on this problem economy trom "hot money"? which in reality

aro-econo- decade. Areas of concentratedi United Press.

To many it seems an obvious mically speaking the fastest American Investment, such as common-sense solution,

but growing countries in the world, the state of Sao Paulo in Brazil, others-in high places-seem to It will mable viled foreign are models of what the future can bring when Anserican arch believe that such a move would exchango savings by young local enterprise co-operates in be translated abroad as proof of tons now faced with recurring en mutual benefit,

the deficits, bronden British softness," af British trade reluctance to continue the battle

economie base of "one cropi cgainst inflation

countries-those relying largely Into this agitated world of top-hatted men came the shock of General Electrics Interim carnings report, with the interim dividend slashed 1 per cent of

was set

A total of 87 new 1957-58 and 12 issues highs made now lows for that period.

-United Press.

Thai

A

Govt Rice Restriction

Bangkok, Feb. 2.

whom

Thailand

down,

The

the

no-

the

During this now you, effect will become incrocaingly on exports such as coffee, rub evident in wide areas of Asi", her or sugar, and spur Indus. the Middle East and Abrica as

rial development In Latin wall American Manufacturing.

captial, in its own Americs, Asia and Africa,

SHIP

BENDLINE

U.S. investors already have seeking world arthotel

receiving

Lavortment 3 per cent, and the candid an- nearly 17 billion in the fast areas rouncement that profits are fail- growing areas of Latin America, capital make judicious use of 1 Thai Economic Affairs Ministry spokesman saiding heavily and that the final the Middle, East Asia and and have a ready-made road come Africa. New capital 15 flowing to their goal of hallsdal well- today the Government would allocate just dividend may have to

from the United States to Latin being---Unlied: Frets, under 100,000 tons of rice for export each

well-known industrial ones had strong buying and, month throughout the rest of the year,

some of hem, strong Gelling. Bowaters had Unllover rose 3/- Actual division of this.export | with

Villand*1/6 end many others, quota among the traders would government-to-government con- Paper Rolls Royce and De be left to the rice irade itsell tracts.

Headed by Ford Motors and On the other hand, futures steel in the second quarter 25 heavy producer entries under io handle, he said.

Chemicals, gained were quiet for the most part, in the first; 30 per cent said they, the

The spokesman said the now Imperial but latterly hardened on short would boost their stoel buying Anticipation of a higher gavern- The Ministry would tell the system, which had been intro 11/-. But Electricals had some covering.

In the second quarter; only tonment loan rate in the wake of traders certain amounts had to duced because the gove meat sovere pressure, with the un- allocation of quotas last year fortunate General Electric down the electronic stars, Stocks at the end of the per cent said they might con-

of a sharp mid-January parity rise. be shipped to Thailand's re- cutting inventories

Tradera ako astributed part gular customers and countries had come under criticism, would 1-, and Pareans and Reyrolle, period were 15,000 tolas with touc arrivala at 4,000 and offtake steci into the second quarter.

of the rise to a technical market

continue as long as traders A.

down 1/6, Actual steel production the tuation. They reminded that

"do not cheat farms over Olla were haphazard in their 5,000 tolar.

week before slipped more than

the

decline from the

paddy Mills operated at

ricky devices to exceed the movements, Royal Dutch en- Decembar soasonal. highs the predicted.

cumulative 85.4 per cent capacity and pro-market showed

monthly quals and on condition loyed arise of 5/- and Shall Transport 1/6, while British that they duced 1,190,000 tons. The pre-loss of $10 to sit a bals to the

unchanged and deted amount was 1.8 million lows of the previous week.

Burmah down a shilling, tons.

Japanese were alrong in spots. Ho sald a monthly allocations The non-assenteds of the 1930s of about 100,000 tons had been and the 1910 com £15 and Exed Because Thalland's export those of the 1800s and the surplus had been estimated at Tokyo 5% per cent were up £1. one million tons with 200,000| Assentede wero up £1 or 21%. tims carryover.Hauler,

Silver fell rather sharply an January 27 under bull liquida tion, but later recovered most of the losses, alded by a better offtake and a healthier technical position.

Stocks at the end of the ported were 1,100 bars and off take 30 to 30 bars daily Clins Mail Special.

Bank Of France

Statement

Paris, Feb. 2. The Bank

alate- of Trance ment for the week ended Jah. 28, rods as follows:

St Franc Total goid baking, 1. Tous other curreliotës

Advance to ptabilas-

#soovite, and

Raw cotton exports for the But in Detroit, monė cars season through January 29

the New York were still being made than sold. reported by

Exchange. tolilled Despite cutbacks in production Colton Ric Docember, dealers' new 2,873,092 bales compared with car stocks reached almost 800,000 3,088,205 boles shipped for the units by the end of January same period last SR501 50,000 ore than at the start United Pro of the month.

Studebaker Packard and Dodge-Do. Soto assembly plants were back in operation

after

Gold Dull

Britain Has

A Chance

...London, Feb.3. Britain has a good chance this year to cut prices and beat inflation, an articlo in the Erf tish Trommury's "Bulletin For Industry!! mikt, texlogy."

It said: "In the past thre yours manufacturing industry has required a great deal of brief shutdowns and production

A Paris, Feb. 1. for the Week ending January 25 Duli- conditions ruled on the now plant, machinery and fac was at 111,800 some, 2,000 more gold, market in the wook to My pace. Not much of thir than the previous week. January 31. The Improvement has yet own reflected in highar United Press.

NAMESAKES

Ahawerm-1 Vachaly & Bir, * Belgadooni- 4′′ Projection, B

Holly's

that lati, 8 Seraen, 9 Rhode,

Yan Kolononać

4

in France's fertignamente output a man employed 20E position and the autocess, up t

-and

of shipmenntain the qualis Petroleum was

Bank Of England

Statement

Landon, Feb. 3 The Bank of England state-

German Dawes Loan demented lost 21% and the non-resonted

The Young Loan, not- Essorted' ofsed £1,

Dollar stocks had an irregular week, with gaite and losers well spread, but the premium-rem: mained unchanged at 8% per epht-United Prok..

1. Bonnet milion to Lescure plot to sterideed pathedit ment for the week ended Jan. Exchange Rates

submentiël dollar-loans were fogelber with the recent fin mainly-responsible for downtrend,

where: pressure, was noted the ingot an articht

carod i għidually-Cala Bobda

.00

29, reads as follows

ProRaM:{irs, Diréulation rubile

Receipia

this

PHOTOGRAPHS

by our Staff Photographers

Golf Match Against Taiwan Australia Day Reception at H. K. Glub Hongkong Delegates to ECAFE ar Kai Tak Opening of New Fishertien's Children School Australian Students Leave by Qarites After Holidays Opening of Sino-German Cultured Associations Premises Land Forces Boxing, Queen Elizabeth Youth Centre

AIMPELO ca 15. pp

Local "Prosentations Local-Wedding-i

Available at

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