1958-02-20 — Page 11

THE CHINA MAIL, THURSDAY, FEBRUARY 20, 1958.

TRADE and COMMERCE SECTION

NEW YORK US STOCKPILE

The Rochdale Tory Debacle RUBBER

Explanation May NEW YORK The New York

Have Big Effect On Future Policy

By RONALD BOXALL

London, Feb. 18. Those exports who pretend to discern particular reasons why an electorate votes as it does had a hard time explaining the Rochdale Tory debacle. Among the theories I have seen in print is one which says that Rochdale voters are tired of the hardships of the Government's anti-inflation programme and another which says that they are tired of the Government's failure to deal effectively with inflation, They cannot both be right. If blame for the Government's defeat can be attached to a single aspect of their management, it is that they have failed to explain what it is they are trying to do. But I am not saying that this explanation would have altered the result. The Conservative Party's backroom boys are now holding their own inquest on Rochdale, and

an have their verdict must influence on future policy. It may be that they will decide that economic, affairs had little to do with things generally. But I should be surprised if rising prices are not at the foot of this general dissatisfaction,

13 be

COTTON MARKET

New York, Feb. 19. Cotton futuros today softon- od after a small "opening rizo listed now crop delivarios to Ronsonal higha.

Stock Market

New York, Feb. 19.

MARKET

New York, Fob, 19. Rex rubbar futures today closed 25 to 35 points lower with sales of 14 con- tracts.

Mor: 20.30; Bay: 20.73; July: 20.00: Bept: 27.00; Nov: 22.10, Ja: 21.10; Max: 15:

Standard contract closed 23 to 35 points lower with no sales | reported.

Mar: 20.30: May: 20.30; July:

late.00: Sept 27.06: Nov: 77.10: Jan:

27.10: Mar: 27.14.

A burst of selling hit the cigarette shares

today and brought pressure into some other sections of the market.

House Puro Oll

This drive, set off by of Representailves Committee Day trading covering steadied | charge that Alter-tip cigarettes prices again at the close but the falled to offer adequate protec jint still Aniched with net on against nicotine, came at a losses of 4 to is points. Opening time when the whole

had been making Д to points New Orleans closed recovery under the lead of steels

and chemicals.

prices were unchanged to up

5 points compared with Monday's close.

March contract liquidation, anticipating first notice day on Monday, Joined with spot house selling in May in chilling the

initial demand.

new

crop

In Liquidation deliveries was credited to recent buyers in a realising movement

legislation pending clarification of farm Washington

possibilities

ini

Radio Corporation Radio Corp. Repubile Steel Reynolds Melal

market

Sears Roebuck & Co. Shell 011 Co.

good

Selling orders come into the tobacco in such volume that Lorillani was suspended for a

at Reg Peper Sinclair 501 Bocony Mobil

time. Others of the elgarette group fell more than a point to Standard Off of Ind

Lorillard

more than 3 points. was suspended, for a time yes- terday when selling plled up on advance of a statistical agency

Steel shares scaled down their to take profits in the issue. gair with Crucible weak Recent buyers became in- feature.

Chemicals dipped from their confused 05 0 creasingly

1058 the autna.

came into Losse some of the ells, store shares, and building stocks after the

whether or not an increase in highs. Chrysler Icet a point in acreage allotments for

| Solar "Aberaft

Bouth Puerto Rico Sugar Southern Co. (This) Southern National Gas Boulher Hallway (Com.) Standard Brandin Standard Oll of Cal. Standard Oll of NJ. Sterling Drug Co. Stokely-Van Camp, Studebaker-Packard Corp. Bunshine Mining Swift & Co. Texas Co. Texiano Inc

Water, Arti Oti Time Inc. Twentieth Century Fox Fin Union Corbirle

Union Oil of Cal. Union Pacific Railway United Aircraft United Gas Corp. US. Foll "E** 11.3. Сурет Dividend news operated vari-19. Rubber..

U.S. Steel

lust group had shown strength.

may be allowed.

Leading spot interests were accredited sliers of upward of 10,000 bales in the May de- livery, presumably on a hedg-ously on a long Rst of issues. US Smelting important operations liquidation in Lorillard rose at one time on an

was replaced

in later delive.árs, purchases

ab- but other trade interests irop months.

orbing March relling sold new

DIFFERENCE

t:carbys

with increased dividend.-

Of a total 1,001 Issues traded, 426 were lower, 410 higher.

New York Stock Exchange volume 2,079,000 shares.

New York Stock Exchange bond volume-$4,290,000,

American Stock

Dow Jones closing averages volume-170,000 shares.

were:

Exchange

Mar

пусти

50 industriala... 20 pell... Volume Open interest | 15 usustion

5.000 13.000

443.00

100.34

71,23

GS stocks ...

18120

May

13,800 334.200

10 bonds

LTB

July

21,000

214,000

Commodity Futures Index

137.30

Oct.

31,600

171,300

Dec.

20,100

15.100

1,900

$5,400

14,000

118,000

6.000

36.90G

Closing Prices

Alden Inc. Aty.

Allied Chemicals

Allied Mitla Inc.

Liverpool futures closed off 3 to up 5 English points. Liver- pool prices were 356 to 506

Trading in the cotton gray up and the extra £50 million of points under New York futures Which brings us straight

of the ordinary expenditure over which goods market continued slow against the problem

prices and Mr Thorneycroft resigned, to although mill budget. For between now April, the Government must de- the current year's estimates and generally unchanged

going subtracting the likely saving by Month elda whether they aru

which have not tougher departments with the shead economie policy put into effect spent their whole allocation. by Mr Peter Thorneycroft last September. Their dilemma

Mor. that if they do, there will

Add to this the difference May July other Rochdales, and if they

payments and Total between capital back down now they will cer receipts in the

financial next tally lose the next generi

year-which is also expected to election.

As far as the budget is con-rise despite the Government's tight rein on spending by the carned, the choice is between nationalised industries--and we July: 35.30: Det: 334: Dest 35.471 March: 23.64-.65; May: 35.52; leaving taxation

have a sum of £5,600 million, Javi 34,70. possibly even raising it at some which according to the purists

NEW ORLEANS points and giving back tax should be entirely covered by Prices of cotton futures closed

American Motal BODO of their

revenue meaning mainly taxa- today as follows:

American melting Spot. 34.43: March: tion.

Am. Sugar lief. 3 PURISTS

American Tel & Toi 33.40; Mosch: 35.61b; May: 33.81b; Americans Tob. "B" us examine first

On the basis of present taxa- Lot

the

July: 34.08. to fall say Lion, revenue is likely

LIVERPOOL and attitude purists'

ideal by about Cotton future closings, straight away that they do not short of this regard it as much of a problem 200 million. at all in a theoretical sense. number of things that Chancel-ce per lb, were as follows: as lor Heathcoat Amory could do

In this situation. He

payers money.

19

They would leave, taxation

it is or even raise it.

own

The reasoning behind this is leave the

ensure

11

There

Brea

could £200 million un-

Government In

121,400 1,181,000 hairs NEW YORK Prices of cotton futures closed today as follows:

Spot: 24.00: March: 30th: May: †

contract Mar/Apr.

May/June

July/Aug.

Det/Nov.

Dec/Jon

May/June

July/Aug.

Oct/Nov.

Dec/Jan

SAO PAULO

May:

Allis Chalmers ...

Am. Brake Shoe Aterlenn Alrine American Cable & Radio Corp. American yanamid Co. Amer. & Furegn

Ain, Gas & Electric

Am act. & Fry.

Anaconda Copper Armeo Steel Armour ********** Atles Cuas. Mining Bakiwin-Luma-liam, Baltimore & Ohls

Beneficial Finance_... Ben Aviations Corp.

In

29.23

24.24 2555

26 27

2Benguet Cons.

20.10

Bethlehem Steel

Boeing Airplane

Borden (The) Co.

2721

Burroughs Add Machine .......

2724

Campbell Soup Co.

Canadian Pacido R.

Cose (J. I.) Co.

to

Cat. Tractor

Celancee Corp.

I. T. Pinnedal Corp.

not too difficult to follow. In a covered and still budget for an New contract Mar/Apr.

of state

Inflation, orthodox ordinary surplus £400 million- which is a very respectable sum budget policy is to balance between the demand for indeed. and supply of national re- Or he could make economies

Prices were unavailable sources. If sufficient voluntary

expenditure day. savings are not forthcoming to

though after the Thorneycroft In the United States, the bridge the inflationary "map" the affair one cannot expect too average price of one-inch cotton

ex-much from this. Or, of course, budget tries to do it by tracting

at 14 designnied spot markets compulsory savings. he could raise taxation. In the

wns 34.55 cents. And it does this by provkling a present mood of the country- Total sales were 10,733 bales.

surplus of revenue over ex-

and especially after Rochdale-United Press. penditure.

connot see him doing this either.

Last year, for example, Mr Thornmeyeroft budgeted for a

But neither can I see him

surplus of £452 million "above going to the extreme and slash- powerful the lino". This was the amounting taxation as the

by which he expected ordinary Federation of British Industries revenue to exceed ordinary ex-haa urged him to do. penditure.

But that still left provision to

SURPLUS

be made for covering

Dayments below

capital

the line".

"The budget surplus as a These were expected to amoun! means of counter-inflation has

£854 millon,

£267; been tried and found wanting," millon of this was automatical- says the Federation in a memor- Chancellor of andum to the

to

but

The FBI would have

the

A DAY OF

SMALL DEALINGS

London, Feb. 17.

It was a day of small dealings

Chase Manhat. Bank

Chrysler Motors Cluett Peabody Colgate-Palmolive Co. Colombian Carbon Co. Commercial Credit

Consolidated Edison Continental Ou of Del. Crew Zellerbach Cuban Arer. Sugar Diamond Alami Diamond Match Co. Dougies Aircraft Dow Chemicals Dupont de Nemour Ebotern Airline Enatman Kodak no El Paso National Gas Family Finance Corp. Firestone Tyre & Rubber Ford Motor Guneral Electio General Foods General Motor

Gen. Pub. V.

in the foreign exchange market, Getty Oll

tone

ly covered by expected capital the Exchequer this week. Many with movements generally nar- Glidden C receipts. Of the remaining

for Goodrich (B. F.) Co. £357 million, £402 million was experts go further and say that row. The closing

Goodyear Tyra Its present high sterling, however, was favour cult ou covered by the "above the lino" taxation on

lovel aggravates rather than able.

Hayden Newport Corp. surplus, leaving only £125

alleviates the inflationary prob- million

be found from

There was a moderate activity

Co. Ingersoll-Rand lem.

Steel Co. in the sterling-dollar exchange voluntary savings,

CRISIS

and despite an easter tendency interchemical Cora,

Int'l Buter...

Machines Int'l That was considered at the Chancellor reduce income tax, the close was unchanged,

The Canadian dollar closed a international Nickel tima to be ultra-coulious profita tax and the petrol duty fraction dearer after moving international Paper budgeting. But we have. had to produce a reduction in tax erratically throughout the day. John-Manville Co another crisis since then, ma tion of the order of £200 to

cross Tate Waa little Kane C. Power & Light the Government has said that £250 million in 1858-59.

This The

Kennecott Copper........ Liggett Mayers Tob. Co. It intends to deal with inflation would be possible, it says, if the changed.

Among Conunentals, guilders Lookheed Aircraft .... once and for all.

Government made a determined

were on Loews Coment to. and Swedish kronor effort to reduce its In these

circumstances

*x-

offer and depreciated to a small Lone Star fell to a

Lowenstein & Sons. many exports including the penditure unill it Governor of the Bank of Bog-much lower proportion of the extent, while Danish kror McDonnell Aircraft

budget national income than its present also cased. land-bellove that the

Mesabi Irun Corp, D-Marks and French francs nenota Mining should be balanced "overall"one-third.

lost early improvements, while Mission Development

Hlo lont Memento Chemical Co.

now

Own

Monomery Ward

-which means that the rovenuo Specifically, the FBI recom- sterling gained a

surplus "above the lias" should mends that the financing of the ground against the Swiss franc Motorola me be large enough to cover all nationalised industries ahoula the outstanding capital items | bo

left to the free capital the closing stages China National Cath Ree. "A "below the line." (These range market from loans to local authorities longs. This,

Mail Special.

where it properly be-

it says would

for house building and to the allow scope for tax nakon London Foreign

nationalised Industries for the to about £350 million.

expansion of basic resources, to

My own forecast is that Mr

grants for Colonial develop- Heathcoat Amory will steer a cœurso somewhere between those

mont).

On the best information recommended by tho purint

Exchange

London, Feb. 19.

avaliable, ordinary expenditure school of economists and the Closing rates were: in the next budget year will be expansionist lenders of industry. | New Kork,ren*

Mozikrină

in tho. ragion of 25,000 million.

Which, getting down to cars, Amaterum This is calculated after adding | meana" that, he will leave ins" zrnkfurt this year's, supplementaries, the tion» virtually untouched.—ER- MAD

Blockt.elm additional national' debt inferest | pruss Servico,

831-11/18-3.8196 17-13/133975-6/18 70.631-10:031 1749-1707%

National Dairy. Prod. NALI! Lead National D COLD, New York Central Norfolk & Westerd By. Olin Malhieson, ***** Our Lavatr

· Owen-Illinois Glam Oxford Paper Co. Prolic Gas & Elec. ...... Pan American. Alfaraya Paramount Pictures Parke Davis Co. Penny 2. C. Ca. Penn.:Balt po..... Phlip Moryła jesen Procter & Gambla Co. Pittsburgh Plate Cam Publicker Industries .........

17

Warner Bros

401

20%

да

SUGGESTIONS

By SYDNEY GAMPELL

London, Feb. 19.

At this time when international comfnodity weak. ness holds the gravest threat of world slump and when Washington's anti-alump policy is to strengthen business sentiment on inventories, the U.S. stockpile recommendations are dis concerting.

rouse

nostals Brid

Prices cased in a dull market,

They are helpful to American] The committee's recommendia- following the London trend and reflecting the continued slow manufacturers of medical and tien to retain all useful present

Anished

of supplics stockpiles interest, many other 30% domestic

consumer Shipment offerings were teht for human survival and relief minerals is not to prevent him Traders awalled the resumo- in nuclear attack If taken selling any quantities of ther on of trading after the New seriously they could be most in excess of a three-year supply Year's holidays, Spot No. 1 Hss unhelpful to some commodity if he regards such, sales as con-

ducive to national security, was quoted at 26% pence per markets.

Their wording could

Perishable materials in excess pound.

SINGAPORE

fears that one man (the Do of the three-year goals "should Director) be sold or otherwise disposed The market

Mobilisation quiet fence throughout the morning with may eventually be given dia of when this can be done with 33 Boma small business 10 cretion to sell up to 40 per cent out "Crious" 30% squaring up positions.

of some existing stockpiles of foreign economie both

minerals md perish [No. 1 rubber per ib. Mar. 11-23ables (to reduce them from five the definition

A 71-7 years to three youth supply). being qualified as stated above. For the many stockpiles Study of the Pettibone port

which have attained or excood- by the Washington depart- ments will take time, Any ed the previous five-year goals,

would logislation

tako more

the potential implication is time.

obvious, But some important re- disposals

Future closings were:

due

No. 2 rubber per lb. Mor. 24%-15 No. 3 rubber per tb, Mar. 712-7135

34*

49

1242

No. • rubber per 10. Mar, 18-03

78-70%

Spot rubber undated .... Blanket repe

No, pelo crepe

The

M-13

02-06 LONDON

od

domostia

disruption or international politicst profudico

Buriou

of

rubber marke! was commendations

The qualified recommonuation easier with spot quoted at 23 and on negotiated termination to relafn metals and minerals

Prices; pence per lb.

of outstanding contracts might is based on their casinoes

storage, their freedom from rotation

3745x1 | General quaforts, elf baris, elf porta:

serious restraint

problema, and

sideration for United States

50%

This could be ominous duce new uncertalalles

on Overseas perishables, In theory least a future recovery in commodity the perishables

from the recommended

No. 1 spot .... Settlement nctase term:

221-23

not require legislation,

REPORT

April/Jun0

23-3

2304

July/Sept.

23-23,1

Oct/Now.

239-237

The report seems to

20%

J/MAX

intro- mines

or at

2434

b.

bier

073

Mar.

April

23-2134 23-232

marketa.

023% Estate crepe

17

thin Maren

thick Mateli

4

AMSTERDAM

The rubber market was quiet. Prices closed today in guilders per kilogram, cli March as

follows:

No. 2 rubber

221 buyers

No. rubber

2.18

220

2.34

United Press,

It ascerts that while the far-sion to them

of purchases metals and minerals policy | reaching impacts

counting on and sales

domestic and not On foreign markets and on foreign supplies relations must not be overlook- general North American neta, od, the emphasis in stockpile. management should always be on natioral defence and sur- vival needs, not on regulating supply the national economy.

could beneft

exten of tho present at emergency outside

| Weltghote restric

Wortem Union Tel. Co. West Va. Pulp & Paper Woolworth

United Press.

LONDON GOLD

No. 3 rubber

No. 1 crepe

MARKET ||New York Sugar

London, Feb. 19.

In the gold market, thero

was a moderato turnover at the fixing, with a fair demand particularly from the Continent. Although World more gold was available. buyers were not pletely satisflod. Tha market has been rather qukat since the fixing.

were

com-

of

121

50%

10%

40

201

172

42

45% Dellers

13

ал

10%

20

There were buyers of switch sterling on American.cccount at sellers at $2.784 491 52.78 and

against $2,703⁄4%

and $2.77%

at

to

Market

New York, Feb. 19.

the,

from

LITTLE

That area has little or no

of

Important perishables such as rubber. In

come

This disregard for immediate practice it has a big supply of Gub-synthetic rubber (though the economic needs is not ordinated to its finding that in a synthetic plants hardly

diclum limited war and in any inten- within the committee's sification of economic and poli- that anishing facilities are more

bombing tical

targois warfare it is important vulnerable that the industrial economies of than are raw materials produc-

United States and other free ing facilities and inventories).

Morcover it is recommended nations continue to operate at

that ary enlargement from the high levels.

goals to the greater Its main concern is not with minimum such warfare but with nuclear security goals should be reached attackt. It argues that stock-"on a low priority basis" with piles of the present type would preference to United States woul be valuable in the subsequent accessible suppliers. (The f

ference between the minimum

rehabilitation but it wants to

No. 4 sugar futures today closed 1 point higher 4 points lower with sales of 352 contracts.

the emphasis to other and the greater goalu is only in The Domsetle No. 6 contracts shift

come first, the discounting of distant r closed

Ithings that would 2 points higher to

plies). of 163 including burying the dead. point lower with sales

In any case the present strejk- There

buyers

contracts.

DISCRETION

piles of rubber and mos; olbor European gold at $33.1495 on

Evening-up operations in the 76 ounce of

perishables on the old five-year 05.0 fineness and March delivery shared attention

well thebasis may already be Stocleplia disposats are $33.1587 against with liquidation in the later do-

sensitive element for above the "greater" gouls on $33.1446 and $33.1800 previously, liveries, some of it influenced by most Eberto they have the new three-year basis.

Der Several of the other recom- ncoded Congressional the easier tone in the raw situa- markets Lion

Disposals of the mendations such as those on However, several countries mission.

and

barter-have indicated a willingness to buy vastly smaller British stockpiles oft-rades sugar at levels alightly under which lock this legislative safe ominous implications for mar-

have often guard

disrupted kots. Their complexity might the going market, Ceylon, Ire

market effect and Now the Pettibone committee comprehension, unless it ag land and Spain were accredited markets. buyers over the past day or two.

Dealers said production of wants the Defence Mobtilation givates unserratainty.

The most constructive have discretion in sugar in Cuba now is just about Director to

He should be allow commendation may be for the at its peak with rebel activity disposals.

ed to sell any surplus of a publication of stockpile statis. of little significance

and. Traders in the domestic con- stockpile material, without the ties: Ignorance

marked time present executive restraint that often lead markets tracts mostly

stockpile of thai perate any perils, watching development in the raw the whole situation. Tomorrow will be the material must first have been this disclosure recommendation last trading day for the current declared surplus, and also with is made only because "stock

out obtaining the March delivery.

express pile goals for most materials achieved."—China approval of Congress, as

have been Mall Special. required.

50% previously,

23

There were buyers of switch sterling on European Con- tinental account at $2.78 and 00% sellers at $2.78% compared with

$2.70% and $2.77% previously.

In transferable sierling, there were buyers at $2.7940 and 551 Feilers at $2.7950 against $2.7020

and $2.7930 previously. China Meil Special

514% 300

34%

4日号

7

50

Contract No. 4' (world)'

Mar.

3.40

LONDON STOCK

May

3.45

July

*.40%

Sept

3.09

Oct.

3.40a

Mar.

9.370

May

Open interest: 6,390 contracts.

Contemot No, € (domestle)

Spot-(cents per lb. fob Cuba) 3.48

Mar.

May

5.60

The stock market closed mixed

B.72b

in quiet trading today,

Sept

Nov.

B.TOD

*5.00

Eniall gains.

OpenInterest: 1,317 contract United Pream.

MARKET

London, Feb. 19.

Gill-edged securities eked out Spot cents per lb. eie NY

Ex-duty)

Oil started the day strong on

bear covering but was overtaken

by profit falting in jater trading New York Metal

and finished with

fractional

guins, Shell, however, scored a

gain of more than a shilling.

Industrials were mixed with Jones predominating. Elec- trical and department store 67% ( issues were higher and shipping

shares lower,

[Am.

shares Copper Tina were firm.

Futures

New York, Fob. 10. Priece of metal futures closed today in cents per lb. as follows:

Marth Lead)

Apri Zine March

April advanced. Copper Kärch

April Tin March

Apri

Trading in foreign bonds was highlighted by a strong show. ing by German lions,

Dollar stocks were mixed- Walled Pres.

New York Foreign

Exchange

Now York, Feb, 19. Closing rates were:

South Assn.

„Others unch

11.436 11.43

B.TOLI

22.000

United Press.

London Metal Prices

London, Feb. 10.

Dow

blunt their

ICA

secrecy

to exmg. However,

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Prices of metals closed today of quality printing which

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Tin spot

3-month

Copper pot 3-month

-142-3/18 | Land, and hall

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127

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