1958-02-17 — Page 9

THE CHÍNA MAIL, MONDAY, FEBRUARY 17, 1958.

TRADE and COMMERCE SECTION

Week's Survey Of US Economy HONGKONG

STOCK

US Business Looks Rivalry In New York Stock EXCHANGE

To Washington

For Help

By IVAN ZVERINA

New York, Feb. 16.

U.S. business looked more and more

to

British Aircraft Industry

0

London, Feb. 17.

Washington last week to help it out of Koen rivalry between British its present doldrums and the concensus seemed to be that large-scale government action would be needed by the end of March if no signs of improvement appear by then.

President Eisenhower's

statement

aircraft manufacturers for British European Air- ways order is threatening to disrupt government efforts to put the industry a permanently pros- porous basis. The government - controlled that the.E.A. order is for only 25 alr- craft and f the manufacturers are to cover costs they must sel

"beginning of the end" of America's third post-war recession should come next month was not discounted as a possibility. Rather it was viewed as an official deadline for the introduction of measures that might include any of the following-or all of them:

A tax cut of between $2.5 and 5 billion; further easing of credit; more incentives to home building; larger government spending, especially on public works projects, such as highways and the already announced 2 billion post office building improvement plan.

in

on

a farther 86 or 60.

The two rival groups bidding for the B... order are the de |Hovland-Hunting-Fairey com- tine (known as Aires), and the Bristol-Hawker Siddeley com

tine.

Each group has submitted similar designs for the 30

very

Market Review

By ELMER WALZER

New York, Feb. 16.

Our Own Correspondent

Business done on the Hong-

kong

Stock

Exchange this

US BUSINESS

OVERSEAS OPERATIONS

New York, Feb. 16.

morning amounted to approxi- U.S. business is increasingly interested in licensing

mately $684,000, Noon quela. tions and the morning's trans- actions were:

Share Buyers Sellars DANKS

INSURANCES

Stocks turned up after a six-day decline when

President Eisenhower spotted a beginning of Bank the end of the business recession by next month.

น

The market had lost ground steadily the first three days of the week. When the President spoke on Thursday prices turned up but dipped from their highs. On Friday substantial re-

left covery

ihe list only moderately lower on the week.

the indus- A Friday's close tefal average was at 444.44 off 4.32 points from the previous week; railroad 107.70 of 1.00; utility 72.05 off 0.48, and the 05

NEW YORK

COTTON MARKET

Now York, Fob. 16.

stocks in these three averages Cotton futures trading this 151.92 off 1.37.

Lombard

134.50

***** 80.50

SIUPPING Wheelock

6.20 4.30

DOCKS, ETC.

K. Whart.. 116 120 Dock

$1.00

Provident

Provident

(0)

LAND, ETC.

11.30

Balex

1100 62

12.40 0487 12.30

10.50 10.70 2000 @ 16.00

its products abroad as the manufacturers side- stepping the highly competitive export trade and avoiding direct capital investiaent, a sur- vey showed today.

Licensing of foreign manufacturers to produce American-type goods for distribution abroad is rapidly becoming a major component of U.S. business overseas operations, the survey said.

The patent, trademark, and |ing all the capital available and 18.60 copyright foundation of George they fine It Impossible to enter 300 34.23 Washington Univerity, in co the foreign manufacturing field

operation with the US. Coun- on a subsidiary basis,

34 34.25

3800

10 10.40

1.34

XD 1275 1.773

1.30

HK Hotel

HK Land

Humphreys

neily

HUBL

AMER

Trust

UTILITIES

Tram

.... 21.40 24.20

star Ferry

500 a 24.30 590 ir 245

600 2452

123 126

D7

C. Light

17.20

300 17.20

500 6 17.30

500 17.10 43300 60 17

When direct

post wook became more Youme

of a two-sided affair as old and new crop months pulled in opposite direc- tions.

:::

cil cd the International Cham- The contribution of Hcensed ber of Commurce, said Initial rights may return either part results of its study of the ques of the foreign profits as royal- tion showed reasons behind the tice or build up equity porticipa- post-war trend toward foreign |tion of the US. licensor In the licensing were:

Nernore. There are some strik- shift

• The general

ining Instances In which direct focus

many U.S. in-investient abroad has followed 100 12.20 dustries toward the export trade, the licensing of patents and experts run into trade morka. And there. are 5006 11.00 competition, the one obvious several instances in which the 27:30 27.30 20 10 way of side-stopping it is having procedure of licensing ferreted

1500 27 26

531 27.30 he product made abroad;

out the bugs in foreign operat- 2300 4 37.10

ectele

21.60

TO.

Truding for the week totalled or A daily 10,002,665 shares average of only 2,000,513 shares. This compared with a daily average turnover of 2,474,247 shares in the previous week. million sterling order, and inst

Discouraging Accounta from At the low point of the week,

with week the Government decided the market showed a decline of the textile tande joined

would negotiate for the 18.41

points In the industrials general business recession talk Alco D.. 121 ulrliner. they

Alreo and 5.78 points in the rails from und March Hquidation in keep-

ing the old crop months on an INDUSTRIALS are confident that B.E.A. will the year's highs set on Feb. 4.

Coment... 23.30 25.00 A total of 1,378 issues appear- Irregular downgrade. acept their design and are opti-

Now стор

months, moving STORES, ETC. Europeaned on the tape. Of these 400 mistic that other

kept while thead,

narrowing their Dairy operators will eventually order managed to show gains

10.30 10.70 724 declined and 158 held discount under nearby months, HAMPERED

sicady. There were 83 new responding to the higher gov- Watson

COTTONS 13-month highs set and 22 new the 1938 crop and a strengthen-Nanyong

ernment minimum loan rate for Textile

Curtly Wright Corporation too,

BO

has

lows.

The group that managed gain were mostly in the staner or soft groups.

Airlines responded

But the Government hampered the project by deciding not subsidise that they would the new alreraft, as they have done in the past.

They have change

toing conviction no legislation is con-upt to be passed in time now

to

1

12

4.55

1.53

among

⚫ While domestic markets ions, thus saving the company 2000 & 21 20 have been saturated, ind pros-money which would otherwise

have have been invested unwisely."

1000 27.10 2009 27.20 pects

300 25.00

12.30 3000 @ 12,20 1000 4.55

1

for

the

expansion dimmed, the attraction of The survey pointed out that c licensing arrangement fa usually advantageous to both parties, In fact, it Bald, the foreign licensee would not sign unless the arrangement were advantageous to him.”

B00 25.50 further business abroad is

alternative; 500 @ 10.00

The re-mergence of Jupary 1000 10.50

as a world industrial power and the resulting closer ties between Japanese

und American com- panica. Much of U.S. business activity in Japan is taking the form of licensing agreements:

The emergence of the Euro

While it pean common market, is advisable for American firms to get behind the common. markets forming tarli wall physically, not all can do it in the form of erecting a plant there; a licensing agreement is again the alternativo,

to affect the next crop. LONDON STOCK

At Friday's close

the st

As unemployment reached the

highest sold it was laying oft some 650 4.5 million level-the

men at its Wright Aeronautical since February 1950-economists

Wood Ridge, New no longer talked of a mid-year Division in

Du Pont de Nemours Jerscy, eplura that would restore pros-

laid of 100 men in s 15me

nylon Irity by election autumn, Rather, they were now production. Transworld Airlines to co-pilots A fourth furloughed willing to settle fer

"tighten

organisation." up the

5 points lower to 72 in accounting methods ruled quarter improvement.

Ford's Muhah, New Jersey, stipulated that the new airliner which would Increase their points higher or off 25 cents a bsembly plant closed down for must be developed and manu-earnings totals and Eastem rose bale to up $3.00 a bale one week despite reports of in-factured as a private venture,

more than 2 points.

pared with the preceding week. crensed sales of its Edsel Line in

DELIVERIES January, Studebaker-Packard in South Bend, Indiana, again shu: down Is assembly line which so far this year only worked three full weeks.

It was no lunger a secret that the White House and the budget administration were working on a tax-cut plan. But nobody was ready Lo push the "panle button" despite bipartisan eries for "action now" in Congress.

Underlying

The underlying fear was to avold action which might Inter prove to have been unnecessary and might call back the spectre of a full swing back to inflation vgain.

not

his

far An indication of how

the reaching the effects of recession can be is the report of Transit the New York City

Authority, which bald a drop in subway riders In January cost it 815,840 in passenger revenues→→→ the the sharpest drop since authority took office more than two and a half years ago.

But the general impression was that Elsenhower will sit out a prolonged depresion inactive. He pledged in unusual economie statement ast week thut.

become as they Arther mensures necessary. "will bc proposed-and in time."

market, Curiously, the strek which is very sensitive to any White House announerment, Ignored seems to have all but this one.

True, a firmer tone developed on the stock market on Thurs- day, But it was not vigerous and very narrow. And it came after six days of steady decline that wiped out mest of all the gains of 1958.

The rally of the past weeks has exhausted itself for the time being and stockholders

Slips Again

of

Steel production slipped again last week, but not as much as had been predicted. With mills

at 51 per cent operating capacity, output totalled 1,457, 000 tons 2,000 tons Jess than in the preceding week.

lost For the

week, the Iron and Steel American Institule predicted an output of funs, which would 1,448,000 mean an operating rate of 53.7 Despito per cent of capacity.

background, the steel la- this dustry appeared a iltle more confident than a month ago.

Aircrafts sagged but General Dynamics, which also is a big factor in shipbuliding, came to close unchanged on receipt of

two

It was anticipated that rivalry for the Important overseas market would be intense and, before the Government had decided whlelt combine to ne. Kotite with, the Bristol group launched their Bristol 200 on the American market.

But the Government's de-

The firmness in motors came cision to negoliate with Airco after Chrysler issued is report alter Bristol's plans for 1957 showing record sales will not and they have stated that they and the third best carnings re- its history-United will build the Bristol 230 it port in they have sufficient orders "In Press. the bog."

Mr. A. H. Milward, eldof ex- ecutive of B.EA, has summed up the situation by saying that his company was in the "very unenviable position of being able to make or break Britain's aviation industry by a correct or incorrect choice between the two designs.-China Mall Special.

This may be because it has Inoked become accustomed to the low Im-order level, yet the feeling was that this month the steel indus- by would "botten out" of what The has been is most severe bock in recent years.

for test in the weeks mediately ahead, notably in the shares of heavy industries when sales and earnings comparisons will be poorest.

sei-

Industry The metal-working weekly, Iron Age, predicted very mild pickup in April and May with some early straws in the wind in March.

Bombay Bullion Market

Bombay, Feb. 15.

was bullion market buoyant in the wook to February 14 with valuos reaching higher lovels than in the past for years. The recent upward trend in gold was accelerated under shorl Unlike the oil Industry, covering, spurred on by per- which is being swept by price sistent seasonal demand and a cuts in ali categories, the steet shortage of actuals.

Stocks price structure: is holding it's

the

the end of totalicu 1,000 tolas. When viewed together with own. Recent declines in a few period

categories are Arrivals' and offtake balanced working stainless steel

The one-month drop in cm- ployment of more than 1,100.000 was the biggest since 1940 and of it occurred in the moal durable foods Industries

machinery and automobiles, metals

Together

:

the number of those

ni 4,000 tons.

The silver market broke away into from the recent rut in trading of the total labour force. That effect on January 1 and a still and forged ahead under percentage, more than anything further boost scheduled for July 1 influence of speculators

part time, the 4.5 millon un-not considered typical, employment figure would swell

In fact indications are that .10 8.5 million--or eight per cent higher wages which went

the

and

else, was viewed by economists will force a mid-summer sicel frenzied short covering, brought as a signal that this time was price increase of between

not far away for cutting taxes, and seven dollars a

easing credit restraints further, Age cald.

and stepping up spending on schools, highways, some clear-

ance and other pubile works.

And now layoffs and cutbacks

Beginning

Ave on by Increased consumption

com~

or

MARKET

An

es-

Beat It warned that, just in exports, the point may be reached where more licchaing eventually arrangements will create competition, too-Valled

Press,

The Swiss

Gold Market

London, Feb. 16. Nearby deliveries also felt the The stock markets suffered influence of cutbacks

a heavy slump last week, estimated domestic consumption

The survey showed that many with the Financial Times navy order to build

for the current season and mili atom - powered submarines warnings that the tight mupply index of blue chip indus- censing agreements have

the past resulted" "from tho equipped with the Polaris situation on good grade cotton trials down 6 full points need to compete with an missile.

may force fem to curtail cotton

from 164.4 to 158.4. tablished foreign line. operations by mid-year

"Where Import restrictings aro Thursday's low of 158.1

Zurich, Feb. 15. switch to the use of synthetic Abres.-

was the lowest since July, stringent and foreign compell- The Swiss gold market tion is strong, exporting may, be tended to decline slightly Elsewhere

was zoid thet 1954.

impossible ог unprofitable, despite the shortage of com- In New York; the similar Dow Licensing has been a means of

in the week to February merctally desirable grades of everage fell from last week's | jumping these obstacles. It also 13 as offerings inclined to cotton in the current crop, most 448.76 to 444.44, but it is still avoids the expense of tying up increase. mills appear to be well stocked above its December low of production faculties at home in

Buyers were reserved, expect- into April or May.

unstable 425.65, whereas London's Indexatisfying.

foreign ing further declines and demand Some of the larger companies in not The latter has now markets. The very restrictions from the Middle East and the are believed partially covered to fallen 23 per cent from its 1957- which make exporting impossible Far East remained small, while

With mid-year,

consumption 68 peak.

will provide the licensee with sa South America was the lowest level

of added profit in which the licensor nodest buyer. the number running at

Judged by since 1998, recent sales by the bargains recorded, oil shares may share."

the most

coln market Government apparently

Licensing has were were for and away - sufficient le solisty mills' near active throughout the week. At means of expanding export bust quict. Although the

the close, Ultrawar and Shell ness for some U.S. companies. Tunisian tension calised in In- On the fart, legislative front, Transport had both fallen 11/0 "Where restrictions or compet market here was not influenced. cotton trade associations and and both Burmah Oll and tion have shut out exports," congressional farm state leaders British Petroleum were

down the survey said, "the licensing clamoured for some change in 3/0. Anglo-Egyptian was the cotton support programme down 3/- and Canadian Eagles which would allow an increase down 270,

Paris Gold Market

The Tunisian events had a

term needs.

Paris, Fab. 10. hardening effect on the gold market, but despite the bullish Impact of the events, the re- action was only small through out the period to February 14.

The strength of the trane and the absence of buyers for lack of available fuis checked any larger upward movement,

Though prices went up slight- 12, the

undertone remained Agreed Merchant Rates displayed. cautious and dealers appeared to be unwilling to take any bullish commitments at present.

Chino Mall Special.

market.

also

been a

The

only

was very

Franco-

creased demand in Paris,

the

Sovereigns tended to weaken, of a foreign firin places US with the Bank of England con types goods in tha foreign inuing to sell.

Vronells and 20-Mark gold in acreage allotments this year It can only mean that

"This entrance. frequently has pleces also cared through a lack to meet the shortage of good investors who have done well been used as a wedge to expand of demand-China Mall Special. grade colton.-United Press," In oll shares--they are certainly sales

of component parts of numerous tended to stay away patents, trade marks, and know-

NAMESAKES frem the apparent bargains how, has also been a substitute

Answers-1 · Comedy, for and complement irect Variety, 3 Clothes, 4 France, the ordinary Industrials, Investment," the survey said.

Accent, 6 Perlenn, 7 Laughter, Canadian $: maximum selling chain stores had to withhold

It noted that many U.S. com-

a Entertains, 9 London, 10-18/16; minimum buying a lot of selling. Only yesterday, panien and that domestle invest-Stage, 11 Curtains, 12 Dramatle. 17-3/10 T/T, 171⁄4·0/D.

figuratively speaking, they were ment opportunities are demand- Yvonne Arnaud,

the theory that being bought they would make lol of Inflation money so long lasted

But this past week saw great nearly Universal Stores down

US Cotton Goods

Market

New York, Feb. 16.

last week grey goods

0

C3

9/, and Marks and Spencer down 2/-. Woolworths non- ansented

jumped 23 and the *£2. asrented

Young Loan, both linds, gained £2 and the Dawes Loan £1.

500- the

Weavers of cotton

cents Tokyo 5 per commenced the fourth month of waiting for 1999's, both assenteds and non-

assented jumped £3 and buyers to break away from the ultra-cautious assenteds, gained £1, but the policy they have been following since mid-con-essenteds of the 1907s and

November.

ton, Iron and the fear of the supply from

Tibet diminishing.

All along the line, cxecutives from the automobile trade was Stocks at the end of the said, buyers manifest an almost down to a trickle, period accounted to 1,000 bars blanket refusal to carry stocks In the sales yarn trade interest with offlake 25 bars daily of any kind. Result of this has wns Bmited mluor amounts Price been to put the burden on the for' fill-in requirements. China Mail Special.

weaver,

shading was noted on carded yarn counts by sellers

some

aircraft months ago cut down produc-in slashed refinery runs rather last week centred in the basic

Best part of a email interest | anxious to book more orders.

1024s both lost £1-United Press,

SINGAPORE STOCKS

On the other hand petroleum being producers are only now begin. In production were announced dally. They included ning to do what steel has done

Singapore, Feb. 17. trines,

Brokers today quoted the railroads, manufacturing, automobiles in lion and inventories. The move than in price cuts, ho cald,

Hard bres weakened in face following stock prices: Open!ud Detroit alone one out of eight may, be too late to save

newcomer to print cloth yarn fabrics. The of a slackening consumer de- oll A comparative

80-square workers

jobles-metal, prices from crumbling.

the pleture of depressed indus popular

four-yard mand. Burlap prices slipped to Dan Lintang Hübber Co. Was ginas and rubber companies. Already gasoline price wors tries is synthetic fibre produc-number moved at 17% cents out the lowest levels in more than th Bortico are raging in several areas of tion, especially nylon. Nylon of first hands for apot delivery. 1 yeats for

Byndicate spot and afloat

Now, layoffs In the chemical God of industries were an nounced on Thursday.

WEAVERS

of

prof

$1,55

2.273

the US. In New Engiand garo- layoffs, though still measured Other mills were holding for goods, Easing in African sisa Consolated

Ord line selling normally for 30 cents only in the low hundreds, stem cent higher. Sellers reporting prices was expected to affect the Fraser & Have Lid Ord... 43,0754 International Minerals and

Heave 7% cum gallon, can be bought for 19% from a sudden

buying mostly unchanged brices adtrend. shury

other producing Fraser de was not enough countries............ Chemicals Corporation cut the cents as a result of record goso cutback by textile mills which mitted thero

*** $4.08 Garnosa kinaya) Lamited week at Ita work

Poinchine inventories, estimated at stocked up early last autumn to buying interest' in evidence to Rayon grey goods priced held Hongkong de Bhanghai División in Carlend Now 8.6 billion gallons,

beat a rumoured nylon prico really, test prices,

steady in face of a continued "Baking Corp. Mexico, by ten per cent. Cities The Royal Dutch Shell sub-boost.

siugglish demand for most con- Hongkong Tin Lad.

Kumpas Ltd Service Oll Co. is reducing by aldiary fa Venezuela is reported The boost never came. Now

structions, a mat

Hus Ramper Tint eight per cent ils total refinery to have trimmed heavy crude garment makers are holding back

Sebars of woolleri and worsted Lamas, Rubber Flates Ltd. runs of crude.

oll prices as much as 15 cents a jon now nylon orders in the hope

fabrics, werd heartened by hows Alalayan Breweries Baltimore and Ohlo Railroad barrel.

of pushing down fabric - prices. In Industrial fabrics, weavers of a pickup in sales as a result New Serandah Rubber I tying off 1,000 mAT ON Standard Oll (New Jesney) | Nylon yarn for tyres is suffering of salcens, broken twills and of the prolonged spell of frigid Potting Tis Ltd.. Tebruary 24 becasso of declining President N. J. Rathbono, urged from the decline in auto sales, | wide drilla reported about 80 temperatures. Most coas manuales Hotel

Singapore. Cold Btorage traille: Betiimore und Ohio Rail- producers to make further cute And on top of everything,per cent of potential production facturers have either opened, or TENT="_Trading rowch is also furloughing oti sa- În dil processing to correct the foreign,, nylon is being offered for the costing, trade has buen nre, rekdy to open, alatuma lines. Beam stegnehip

mumber of clericul | Imbalance between supply And here below domestic prices, slut down Ught.

[ Prices" appeared to be on a par United Engineers Ded. demand. The remedy should be United Press.

The demand for coating fabrics with a year ago.-United Fram.

disclosed

workers.

Waarne Bros.

SHIP

10

BEN LINE

PHOTOGRAPHS

by our Staff Photographers

Tung Wah Hospital Charity Bail Launching of Star Forry's Solar Star St. Paul's Convent Prize-giving Day Diocesan Boys' School's Sports Day St. Joseph's College Athletic Mesting Distribution of Rice at Southom Playground Tung Wah Hospital Dinner at Golden City Restaurant Y's Men's Club Ladies Night at Wing On Mess Hall Certificate Presentation at Grantham Training Collego Demonstration of Snake Dance at Y.W.CA. Art Exhibition Held at Hong Kong Club Lancastrian's Ball at Peninsula Hotel A1 Local Sporītis Local Presentations Local W od dings

Etc. Etc.

Available at

SOUTH CHINA MORNING POST, LTD.

Adham Street.