THE CHINA MAIL, MONDAY, FEBRUARY 10, 1958.
TRADE and COMMERCE SECTION
Page
Week's Survey Of US Economy HONGKONG US Farm Surplus
STOCK
Level Of Loans NEW YORK Japan: Intruder EXCHANGE
From Banks
Goes
Up
New York, Feb. 9. Last woek's level of commercial, industrial and farm loans at New York City banks was $11,161,000,000—some 130 million above the same week in 1957, but almost one billion dollars under the summer 1957 levol.
Since the start of 1958, business loans are down 540 million as against a drop of only 230 million in the same early 1967 period. How do companies get cash if they don't borrow? They cut inventaries, anything between 15 and 40 per cent, depending on the product. They economise on things they would not have thought of before.
This may not be typical, but; industry is stocking up for the one smaller plant thought to en-event of prolonged strikes when
major
slart companies force a rigid rule on switching the off unnecessary Ughts-something negotiations with the United America, Automobile Workers for labour in Lunusual quite
renewals. - United Depreciation reserves are belna contract only partly reinvested, the rest Frest.
up cash goes toward building reserves.
With more dividend culs as the result of poor carnings; with steel production still edging up or down a few ten thousand with week; tona
every automobile output seem setting
4 six year low;
atruction
so for
home con-
about looks
LONDON STOCK
MARKET
London, Feb. 9.
the only "oasis of stability" in The stock markets opened the early 1930 picture.
the week quite strongly Business Wedk Magazine, and got a pleasant boost which coined the phrase, reported on Tuesday with the news new housing slaris this year
of the handsome rise in thould hold tendy at the one
the gold and dollar re- milon level with a five to ten
serves- po. cent climb likely
Remarkable
COTTON
GOODS MARKET
Now York, Feb. 9.
Cotton grey goods sollers another woek
reported
of monotonously slow business.
+
Finished geeds registered "fair improvement." but
converters and other processors
of grey goods continued to operate on a strielly "as nerded" boals for quick delivery.
Despile the worsening famine
mid-November Inst.year, some of buying orders, dating back to quarters felt conditions
arc
In Arabian Oilfields
London, Feb. 9.
Our Own Correspondent
Business done on the Enog-
Stock kong
Bichango this morning amounted to approal- mately $558,000. Noon quota- tions and the morning's fron actions ware:
Бадгер
DANKS
Buyers Sellers
Males
250
Union m
207,50
Japan was an "over-generous" intruder in the HAN
Arabian oilfields where her bids with Saudi INSURANCES Arabia have brought rivalry from British Lombard
SHIPPING and American oil concerns, the Manchester Wheelock XD 4.15 Guardian said today.
In an editorial headed "Oil Intruder"
it was natural like for un industrial nation Japan to be oil-hungry and to
neross the whole textile market
building up for an improvement seek a source of her own. front.
Industry
of
J
NEW YORK COTTON MARKET
DUCKS, ETC. K. Whart Dock
Frocken!
.....
040
8.30
119
30.50
Hump
15.00
It Land ..
RUBBER
Amaig.
TYL UTILITIES Track
....... 24.30 2450
123
300 a 60.50 1,700 50.50
Disposal Abroad
By Harry W. Frantz
Washington, Feb. 9.
The Agriculture Department announced its pur- pose to continue disposal of government-owned surplus farm commodities abroad in the next fiscal year by sales for foreign currency, barter transactions, and donations in emergency situation.
Realition of the over-all programme awaita congressional extention of Public Law 400 for one year from June 30, 1988.
Assistant Becretary of Agriculture Daz Postberg asked the Senate Agriculture that authorisation Committee
"This commodity has been one of our greatest surplus problems, stocks in government hands increased in each of the five years prior to last year. Last year, however, wheat ex- ports reached the record high of $50,000,000 bushelf. In other wordi, last year we ox- ported almost as much wheat as we consume domestically in an entire year.
Com-
of
"About 200,000,000 bushels of this total moved against aules for the currencies under foreign Title I, Law 480, Programme The record shipments resulted He said that there is sufficienti, a reduction of more than money from a current autho 100,000,000 bushels in risation of US$800,000,000 to modify credit corporation
relief surplus." continue Lidergency
United 3,400 2015 oporations for another year, and
States exporta in the last fiscal year that the present authority for coton bartor
not reached 7,000,000 balcz, highest transactions does bave an expiration date, in a quarter century, of which Paarlberg said that the ex- about 20 per cent was sold for tension of Title I of Publle Law foreign currencies.
United
Staics 180 is extromaly important to
exports the orderly programming and government-owned agricultural
which commodities sold commodities
resulted shipments of for foreign currencies.
from barter transactions since Paarlborg said that since seles July 1954 amounted to about of surplus agricultural commo- US$900,000,000 at market value. dillos started in 1984, there have Pasriberg said, "We are now been over 100
LE commodity discussing proposed barter agreements with 35 countries. transaction with India involving The value of agreements thus the exchange of 800,000 tons of than wheat for strategical materials, far amounts 10 more
Wo thope will US$3,600,000,000 in terms of thewalch cost of the commodities to the finalised soon."--United Press. commodity credit corporation.
to sell for foreign currencies be extended through fiscal year 10)
12.30 15,30
ending June 30, 1959, and that 11.30 11.50 (N) LAND, ETC.
an additional US$1,500,000,000 be HIQ Hotel 18,00 10.80 1,500 @ 14.50 | authorised for this purpose.
1,000 10.00
He said that the programima 1600 19 1970 "That is one reason why
1.000 h 18.60 for such sales has presently 1,000 10.0 slowed down pending authorian she invented the Greater Asla
tion of additional funds. Co-Prosperity Sphere. The oil
34 344 200 @@ 34 aouth- spokesman
of indonesia lured her
1.775 130 the Love, Chairman and ward. Now she pursues
128 129 18,000 € 1.50 means President Spencer
Burlingtonsane ambition by other
and gov-
500 re 24.60 Industries, Inc., the giant textile but her businessma Arm, thought current textile ernment are still willing to pay
New York, Feb. 9.
1,000 24.40 to achieve the Cotton futures last wook | Star Terry prices are so near "rock bottom" dearly
Yaura! ... 07.40 that if any changes occur. "they editorial said.
bobbed up and down on. Lith also
17.19 17.40 800 17 17:00 has Saudi Arobla will be in one direction-up."
the price ladder, covering petrias... 28.01 23.80 1.200 28.79 Love
emphasised that while ambillons for more control over
Telephone, 27.20 27.40 00027 20 2,200 27.30 the gene al wholesale price level the oil extracted from their land
a range of $3 a bale, Oil
1,000 27.30 increasingly |DUSTRIALS becoming has been climbing under the spur by the Arabien American of inflation, textile prices have Company which was the reason
zansitive to farm legislacement
14,50 500 20.27 making the Saudi's
14.20 been going down, As a result. for
tivo developments. the Japanese textile apparel consumers today agreement with
Starting lower, prices staged a are getting better quality fabrics Petroleum Trading Company, it
good-sized mid-week recovery, at lower prices than ten years said.
falter agala when the Ego. despite Increased
Under the agreement with the only to manu-
Japanese, Saudi Arabia will get legislative picture became con- facturing costs.
Elsewhere, resident buyers 50 per cent of the profits, not fused. At Friday's close the Also counted
early only from the crude oil but also list ruled off 14 to up 14 points,NVESTMENTS change. Everyone appears from the
refineries ord dis-or off 70 cents to up 70 cents a bale compared with the preced- and tribution. over-cautious, they said. undecided whether "to buy or But, the Monchester Guardian ing week.
Old crop deliveries, in an buy." despite un- or not to
cautioned, the arrangement with
eased Independent action, also requires a certainties about the supply of Saudi Arabia good-grade cotton.
of continuedi dullness in of face
textile market, and the felt, that concession from the Sultan may be, the buyers
Kuwalt because much of the oil the when the demand does develop,
nault come from under the sea in Lause in mill demand for spot will "burs; wide open."
the Persian Gulf, off the neutral cotton. zone between Saudi Arabia and Kuwait.
cn
Ad
The resul
Despite the optimistic under- tone in some directions, the rank and file of traders sill trained attention on the stock recession talk and the rising rate of un- employment before drawing conclusions,
Dullness in apparel
W25
an
CUT-BACK
in
"So far the Kuwait ruler hat hay not fallen for the tampling, The cut-back in 900,000 boles terms. British and American estimated domestic consumption oil concerns have mado him this season to around 8,000,000 rival offers one of the Ameri- bales, and liquidation in the can bid is said to have added nearby fabrics another four per cent
to
delivery.
March
notice the anticipating first
day,
11 matched by limited Japanese 56," The Manchester weighed on nearby prices.
for industrial
After the close on Friday, the fabrica. Guardian said. FOW Some houses said business was
But if the Japanese agreement Agriculture Department
boost the 30 small they have been turning
# will docs
force, come
the nounced into
minimum Re-It away because of the expense
suppor. editorial said, it was naturel to guaranteed
on the 1958 erop to 81 in handling such minor order-
assume that the other Arab all price ing-United Press.
producing states would be en- titled to expect terms at least As good from the countries operating on their soil.
This spolled the work. treats from the market lowered gilis, industrials and gold shares on Friday, although prices were
All sectors were headed up-market, the business ward unt the blow came to- wards the end of the week with Against this background the the warning from the Chairman remark of the Federal Reserve Board stock market showed able confidence. It's true that that America's current recession
demand first three "may be deeper and more pro- the advance of the days of last week was halted, tracted than many people
and rail anticipate." the Industrial yet
above averages remained well their November recovery peaks which they surpassed recently.
And there was little indication yet of a climax to the recovery movement.
Reason for
confidence this could be the fact that it must take some time for easy money
increased and
LOVOTEL! spending to have full effect. There
a lag in is always
the effact
In that changes economy have on the securities market, for example.
the
moderately above inst week's closing levels.
Gold Reserves
British Governments had one
Now York, Feb. 8. star performer, funding four per cents, with 20/- on special
Foreign nations added a total demand from the City's Onan-
their gold "but cial circles. Old Consols closed of $650 million to 7/0 higher and War Loan 1/18 and dollar reserves in 1987,
Times this gain would not have taken higher. The Financial
of
gilts reached on place had they not drawn some index Thursday 81.21 the highest 1 $900 millions from the Inter-
per national Monetary Fund, a last cording to the monthly review has been since the goven
of the Federal Reserve Bank of sent bank rate September.
were New York.
Leading
emerged
"The 50-50 agreement would be in danger" The Manchester Guardian sald-United Press,
were
Hope STORES, ETC. Datry Watson COTTONS Texulo
Vibro
... 16.50 10.00 1,301 4 18,89
IZIO 134
MISCELLANEOUS
4.50 4.00
10.80
5.50
150
Yangtzo | Syngwla
Downward Export market value of these
Movement
In Gold
Paris, Fob. 8.
of
goods was estimated at about THE INTEREST US$2,500,000,000,
Paarlborg said that presently remaining suthorisations far. foreign currency sales are now less than US$400,000,000, "and programmes now being finalised this ere expected to exhaust balance very soon.
"We are hopeful, therefore, that prompt consideration by
RATE
IN CANADA
Ottawa, Feb. 9.
Congress will be given to the The Bank of Canada has extension."
The downward movement in gold prices in the preced- ing week was extended in the period ended February.
He said that the international 7 under heavy selling and agreements already signed since Increased confidence in 1904 covered foreign 'currency arles of 550,000,000 bushels of the franc. There was some liquation wheat, 3,000,000 bales of cot-
:
pounds
again reduced its interest rate to a new 18-month low of 8.24 per cent amid aigns of a mounting - sup- ply of idle money in Canada that may tend to lower per cent of parity, or 30.75 cents by hoarders owing to the tight ton, 25,000,000 bags of rice.
general interest vegetable olls, 133,000,000 speculation.
rates sharply in 1858. a pound for midding inch cash positions as well as bear 1,800,000,000 ection,
Buying to slow down the de- bushels of feed grains, 175,000,-
According to press reports Adding 385 points for the
hero some financial circles say differential between % inch and cline was made by sources be-000 pounds of tobacco, 180,000,-
inch cotton the lleved to be acting for the Bank 000 pounds of meat, 225.000.000 that thoughts of infintion and
rounds of lard, 102,000,000 Ught money are nearly gone. middling ore loan rate for the longer stable of France. -
107,- techried re- pounds of dairy products, There was would figure out to around 34.00
Instead it appeared that both and Canada and the United State cents B pound, statisticians covery, attributed to covering, 000.000 pounds of fruits
and SOETIC late in the week but the move vegett bles,
were scaling their rates down and commodities. stort-lived Was
to return to the "ery money" ment
Supplementary statistical data policies of 1085 as quickly as prices again turned downward
summitted to the Senate Agri- possible, at the elcse of the period.
The Although switching between i culture Committee showed that
interest Central Bank different colas and fine gold from July 1, though February rate its charge on loans to caused some irregular move 6, 1958, agreements for sales of chartered banks and other land- ments-China Mail Special. surplus commodities for foreigning institutions *** is set at ane-
currencies were negoliated with quarter
tho per cent above France, Greece, Israel. Korea, week's average yield on
the Pakistan, Poland Mexico,
Government's 01-day Treasury United bills. China Mait Speciul. Kingdom, and Yugoslavia,
Paarlberg evaluated the
calculated..
The final can rate for the new crop will be determined on the basis of the mid-July parity, However, the rate
reduced from
announced minimum.
Producer
the
cantot be
entrics under the Joan programme, continued at a heavy rate. Impoundings to Jan. 31 totalled 2,025,261 kales. After allowing for
Swiss Gold Market
Zurich, Feb. 8. The Swiss gold market ruled steady in good activity during the work to February 6. A lending stock exchange arm estimates that eventually there
There was increased demand, will be more money available in
Industrial
offerings while
in- the capital markets in 1958 than
wanted nearly all week.
In the five years to 1956, these dequate. would be required to meet the
Rolls-Royce were an excep-nations had been increasing Trading with the Middle and billion demand-shoul balt a
tion; after a volatile week they their gold and dollars reserves For East, however, was limited as compared more,
loss of at an annual
rate of $2,000 to its usual level, while buri- "Light money" lack of capital to finally closed with
2/6.
million. Their failure to do so in ness with South America Was the extent of 2.5 billion in 1957,
International Nickel led the 1957 was attributed to a rever- quiet, The Arm
Cusy expects the
rise of 5/-, sal in transactions with the The gold coin maitet tended continua even week with money trend to
mid-year followed by P. and O., deferred United
China Mall to weaken in limited trading. The two 2/3, and a long and important Special.
-China Mail Special. turnup in burinesa.
and factors just don't move in step, list of going between one
two shillings Courtaulds, Ford it'maki.
British American Sleat production last week Motora, dropped to the lowest level Tobacco and Associated Electric. since Christmas week
SINGAPORE Spain, Turkey with the
ailer the expected
U. S.
a
of
Oils ате increasingly popular today. They are sensi- steel mill operated at 64.1
live to rises and falls in the per cent of capacity and pro-
All economy. 1,489,000 tons 37,000 American duced
receded, except Royal tona less than the preceding thom!
Dutch, which gained £7/10 to week.
There
even lower £15%. ex-righta Both Shell WAS an estimate for this past week's and British Petroleum lost 1/6 output1,454,000 tons and the and Burmah Oil 1/-.
the
Iron Age, the metalworking
Among
the Germans
be assented
and
States.
New York Stock
Market Review
New York, Feb. 9.
withdi awale the not stock of 1857 cotton under bales loan talalled 2,040,505
4,092.200 bales im- gainst pounded to the same time last Benson United Press.
Bank Of England Statement
London, Feb. 9. The Bank of England state- ment 10% tire week ended Feb. 5, reads as followD;
STOCKS
Singapore, Feb. 10. Brokers today quoted the following stock prices!
Opening Batu Lintang Rubber Co.
$1.65 British Borneo Petroleum Syndicate...
30/ Consolidated Tin Smelters
20/-
Ord.
Fraxer Neave Ltd. Ozd Fraser & Neave Ltd. 115%
$4.05 cum pref. CATA
(Malaya) Lid, $3.375
Shanghai
sterling Notes In elreulation ........ 1,659303,620 Gramsens Public deposits
117974 Hongkeng Private deposita
275 130,443 Banking Corp 197301362 Hongkong Ton Ltd.
68,000, 177 | Kumpas Ltd........ 43,430,553 Kuala Kampar Tin.... 16.0
Lunes Stubber Estates Ltd. United Pres. Malayan Breweries
Government aecuritie Other securitien
industry's weekly magazine, said seven per cent Potash both The stock market was a standoff in the past week Receip
Will
probably
non assented February
gained £1, and the 6% per cent steel's poorest month of 1950.
There were signs that pro-assenteds also El. Young Loan duction would be higher in hoa-assented rose and the March. One of them was a new assented £1, Dawes Loan, both firming of reel scrap prices in descriptions were a few chilllage the PHúsburgh ares,
easier.
Automobile
Halio
Bank Of France Statement
$450
6/3d
$1.531
28/
$1,00
New Berandah ftubber Co.
$3.3
$2.40
Peteling Tin
$1.00
Rames Hotel
$2.00
Singapore Cold Storage ..
£0.00
Biraits Trading
$1.70
Biraita Steamship
Bros.
United Engineers Ord, Wear
$11.40 ci
$3.03
Chine Mail Special.
-more gains than losses in the general list but an irregular decline in the averages. Trading picked up a bit on a sales with prices at lower levels. daily average of 2,474,247 shares Several dividend reductions against the dally average of were made to affect individual The only feature in Japanese 150.821 shares in the previous stocks.
Paris, Feb. B. Was the 1907, whose non- week.
The Bank of France state- assanted Jumped 1 sterling Everything scenved to bo Industrials closed the work at
In ond its assented one sterling.
the Dow Jones ment for the week ended Jan. 30, going along smoothly with the 448.78
of only reads as follows: Greek loans roen 1⁄2 sterling,
recent calculations for a loss market penetrating the
Railroads finished Total gold holdings. too 1.20 points. realsiance arco without as did the Hungarian.
108.70 of 0.34. Utilities Total other currencies Chinese
mixed, with much trouble. Then came the t Wore
Low
EPU
I was done in the boal both rises and falls of a
failure on the Vanguard missile stood out with a gain in their Bight balance abroad
DATKOČE While The Advance to Stabliza average of 0.20 to 72.83. Includes the shillings.
now satellita carrying D
to go
*Elon Fund,
morning, at the' following materi stocks Dollar
had ponibility that 1948 will be the
along with the Explorer around average of the 03 stocks in the
Iank notes in odrešilas
Eberling notes (per £1) lowest car production year since } numerous riscs, but the pre- the earth. That was at a goal to three Dow Jones, avocages, was Total bill, discosinfod 1,932,354,488,11225, dolar (per 01)
down 0.25 points at 18329,
303,118,783.430,505 | Australian notes (per 20). 1992 when only 4.8 million carri mium was unchanged at 81⁄2| tako profits,
Current accounia and
Indonesian rupiah. (per, 100). deposita The January i per cent,
480,048,390.831 | Biam float (per 100) were produced.
-United Prem. South African Gold shares - Agure, was 8.5 per cent below
Bingapore (Streita)
in
Automobile assemblies January fall to the lowest level
sised 1954 for the month
480,257 r -- and the year- long outlook now
1039
the December total, 13.7 per the finance house chley- cent below January 1057,
showed riacs of from one lo
And yet, despite lower pro-three shillings-United Res.
NAMESAKES
duction and, because of still lower, sales, new car inventories continued to rins at a rate of nearly 100,000 units a month
Valefact may. Indlanta.... iwa things: Detroit was still con Answer:-"Justice, 2 ForumD, ndent that the usual spring up-13 Capitol. 4 Hizin, 8 Triumph turn its unless would shateriáles & Soothsayer. 7 Conquest, o this year, too; upmespecially if Gaul, & Rome, 10 Senator, 11 Indelibor Las reacts. 100,000 und Italy, 12 March, ・or ørerflikt, da natamobile
India. Caussit.
NEW HIGHS
+
But at the close of the week, the market stood at a level only moderately below the levels of aybar ago period when New highs for 1956 were ret pelées were in a general decline. on Tuesday with the industrials Bules for the year to date at their best since Oct. 4, 1957.
mounted to 62212,504 shares
and Talis at a new top since Oct. against 60,275,969 shares to the 30. Then came a series of de- end of the first week of elines that wiped out the earlie" | Fobruary, 1957.." game hud: loft the market-lower Of the 1,382 fassen: traded 678 on the week
gained while 523 lot and 182 There were declimes in steal, hekt- unchanged. There work auto, and, mude oll output. 01 now highs for the paÉT -23 Retail trade slipped back when incestha, and. 11 new hom stords discontinued promotional | United Pres
frane
$31,204,309,423 ||11218,301,822 :
11.771,000,000
stro
Exchange Rates
SHIP
6.60
19,54
70.00
1.00
BENDLINE
The
other
utility of the foreign curreneles Agreed Merchant Rates sales programmes to wheat as follows:
Swim Selling 76%.
Tranca
P&O
Mazingira
R.M.S. "CANTON"
SAILS:*
NOTICE TO PASSENGERS
BAGGAGE:
Tuesday, 11th February, 1958, at 12.00 Noon for the UNITED KINGDOM, via Singapore, Penang, Colombo, Bombay, Aden and Port Said.
Passengers are requested to send ALL BAGGAGE to the Hongkong & Kowloon Wharf Co.'s Godown No. 2 GATE, CANTON ROAD ENTRANCE, by Noon on Monday, 10th February, 1068.
."
SPECIAL NOTE: With the exception of hand packages. carried by passengers themselves,« ALL BAGGAGE must pass through the Wharf Company's Godown for loading on board by ship's slings only.
| EMBARKATION: Passengers,, should embark between 9.80 and 13,00 am, on 11th February,
1988.
Subject to alteration with or without notice
No comments yet.
Private notes are available after approval.