1958-02-24 — Page 9

THE CHINA MAIL, MONDAY, FEBRUARY 24, 1958.

Page

TRADE and COMMERCE SECTION

US ECONOMY: WEEK'S

SURVEY

Govt Pumps New US COTTON JAPAN'S EXPANDING

Money Into

US Bloodstream

By IVAN ZVERINA

Now York, Feb. 23.

The government moved last week to pump up to $3 billion of new money into the bloodstream of U.S. economy in its strongest anti-recession action to date. Still very much afraid of laying the groundwork

GOODS SURVEY

Now York, Fob. 23.

Now business, in all of the basic textile markots con- tinued on

the slow sido

fast wock.

Buyers of cotton goods, in both the grey and finished state,

along with wool fabrics, rayons,

burlaps

and other hard fibres continued to follow 1 tight- on just sted polley of taking what they needed for quick de-

[livery.

Market

analysts,

looking

drew encouragement

to a possible swing back to inflation, the Ad-ahend,

from the reserve board's action ministration kept its tax-cut scheme on the in cutting reserve bank re- shelf and gave priority to a major credit- quirements one half per cent, easing step instead.

The Federal Reserve Board on Wednesday lowered the reserve requirements on demand deposits at its 6.400 member banks by one half per cent. This will immediately free some, $500 million at the end of the month when the mea- sure becomes effective,

ind the administration's pre- dletion for a pick-up in business

employment in March.

Impact of the first step should

lieved but

be felt son, some quarters be- chants were more

the first step mor

preoccupied with the lower slock market trend and a further slow-down In retail buying in the wake of blizzards and sub-zern weather over a wide area of the nation.

ECONOMY: A CHANCE FOR US

Washington, Feb. 23.

Japan's expanding economy presents a great opportunity for U.S. farmers to share the growing market for agricultural products there if Japan is given a chance to earn dollars in the United States.

LONDON STOCK MARKET

London, Feb. 23.

HONGKONG STOCK EXCHANGE

Our Own Correspondent Business done on the Hog

kong Stock Exchang this morning amounted to approxi- mately $925,000. Noom quota- Lions and the morning's trans- actions were:

Shares Buyers Sellers TANKS

833 450

in Bank

INSURANCES Lombard SHIPPING Waterboat

This is the substance of a re- Asin Now...

for part on prospecis

U.S. Wheelocks

DOCKS, ETC Buricultural products in Japan. Wharf.. Issued by the Department of Dack ....... Agriculture's Foreign Agricul- Provident ture Service.

The report said that in 1950 40 per cent of Japanese imports

33

39.00 1.273

0.25 0.33

(0)

IN

13.20 12.40 11.30 11.50

LAND.

ETC.

HK Hotel

American statistics of ris-rom the United States consisted of farm products. The report ing unemployment and of and this trade "was particularly Land..

beenuse it was daltar sehreys cut-backs in production valuable

business." simplified into "it looks like a recession coming" have rather dominated London's market last wook.

C. Light

The Decline In US Business

New York, Feb. 23.

The current U.S. business decline may be "some- what greator" than that of 1953-54 and re- covery may take longer, a Wall Street survey said last Friday,

But indications are that business may be stabilised

Salen

10 E 135 10 £ 935 10 075

Tri

"at lower level" by the middle of the year, it added.

rapidly rising prices The report, published by the time,

-continerital Corporation, which lead to consumer stock- ono of the largest Investment|ing of goods, as was evident at

in companies

America,

Korean Was the outbreak of the prepared by econòmiste of the war,” Union Service Corporation.

They said the one thing that might speed up recovery woult be of the US. consumer be

apressive buyer camo "on Boods."

CON

The report said there "does not seem to be any historical basis for expecting the sumer to bring this readjust- ment to un early termination breause of aggressive purchases and,

thero until

15 more There is little indication of evidence of buoyant purchasing, purchasing At one la forced to conclude that

of

1 18.20 3.000 18.30 this increanod

500 or 10.40 present", the report added. It is doubtful that Jung' or an 1,000 or 10.30 "However, as yet, there is no earlier month will see the start 2,000 1030 H 4,800

1.50 evidence that this decline will of a recovery movement, al- 33.75 assume the severe character of though the lovel of business the 1937-38 period, and, even may well have been stabilised more certainly, not that of the at a lower level by that time." long depression following 1920."United Press,

33-23 33.75 500

1

2.40 1.35

1.50 1.30 1.320 125

130

24.30 24.60 1,800 24.50

050 $7.50 99.50

24.0

.. 10.00 17.10-4,000

17

27.00 1,500 27.00

27 2720 2.4700 or 27.20

Eectile .... Telephone.

INDUSTRIALS

Healty re RUBBER But the report warned that A. Japan could rat continue imports Trust RS”

VITIES at their present level or Increase TTACI them unless it can sell in the United States. "11 must sell if it Yaumati is going to continue to be a good Nobody suggests that it might

market for American products." The Treary used up $100 Since one reserve dair cut

Turn into a prolonged depres-

The report noted that in 1030 be multiplied to

a million of its free gold supply support

Sales yarn spinners reported sion, like that of the 1930s, for average of six dollars in addi- last week to increase its de-

U.S. tolalled one billon dellars. tional lonus, the netim ingy posts in federal reserve banks, sporadically small buying fur-the Rumption is that the Pre-total Japanese Imports from the Better grade. knitting sidont's Council of Economic Japan was the largest foreign eventually

thy adition The government thus had $100 ries. Mein

mastered buyer of U.S. cotton, wheat, bar- more to spend before counts made the relatively best Advisers has fully of a total of $3 blot to the million

coming showing. Mults were willing to the technique of injecting freshley, soybeans and hides Immediately available busk now tax money starts

imanu stimulation inte in The withdrawal did not talk price to interested credit in the United States,

facturer.

economy. But Lutal to the Treasury's, Since the percentage of re-d

by cash assets. The Treasury's free requirements varies

was thus much coli "eashion"

Concensus was that the measures duetion of reserve requirements ultimately benefit the WIL

Lake effects

nerve

geographical location crttlelsed arrangement which duced in $400 million. many bankers think obsolete.. this is how the new will work out;

reserves

Central Reserve Banks-gonomy but that It wil

before the York time those in downtown New and Chleagowl! lower their show,

by half

per cent

lo

The

deposits and thus

release

ax

esilmated $125 million.

19% per cent of net demand

KC-

re-

of

secand

ard

STORES, ETC.

Dalry Watun 1. Craw...

inflating skins. temporary Japan also buys considerable COTTONS

United Press.

rise of unemployment to 5,000,- quantities of corn and tobacco-Textle

Nanyang

000 jobless is not exactly an advertisement for the "Amerl- can way of life" and Britain's well-to-do classes have shown last considerable nervousness weck.

to sell,

10

two

did nel look Some quarters for any

change in the current situation for several weeks, by which time users should begin thinking about Initial quarter needs.

Sisal, hemp and burlap prices

They have tended reflected absence of buying The Financial Times index of terest, Burlap prices receded

low mark. industrials fell from 158.4 to a new 16 years Spot 10 inch 71⁄2 ounce burlap 157.0 on comparatively moderate

sates. Rolls Royce fell ex-dock at 7,00 cents a yard, basis, was the lowest since mid- shillings three peace, less be- cause there was substantial August 1958. Rope markers continued to postpone new pur-selling thun because there was sti jcsa buying. The big chases of hemp and sisal, not Defence contractors do

chain stores also saw an exodus The The rayon, acctate and man-

of Investors; Marks and any results from

UK versal surge such made Abres grey goods market

Selling con- Spencer and Groat placement of continued spoity. and rural communilles 53.0 billion in contract award-slated primarily of M-in bual-Stores both lost one shilling, redure their

MAJOR CITIES

Other reserve city banks

is

major cities will lower their

Arst

was still true The same

large-scale government They, too, defence enntracts. have not yet filtered down to business the Jovel where would get any of the uppro priated money.

from 18 tu 171⁄2 per cent expert

free some $105 million. Reserve defence spending

banks in the

towns -Wilt

country-smutierns the record

reservered for defence between

Octo-

show before another month or Iwo.

with

Exchange Rates

delivery, ness for pot from the present 12 per cent to her and December 1957-to prices showing a slight coriness, 111⁄2 per cent-releasing an-

United Press. other $180 million in reserves.

The government is convinced this is the right step for the time being. It is being backed by the reported decision the Joint Congressional Econo-

Thu Committee

such mic credit-casing moves along with spending on Dublie works should take priority over

Inmediate cuts as the recession weapons.

of

inx-

But once they do inost busi- nessmen believe they will pro- since duce "The biggest your Korea" for new military bust- ness, Non-military business will benelit, too, of course.

simply Meanwhile, "It's matter of waiting until the new business filters down to us,"

Anu-one contractor sid-United

On the other hand many bankers

reserve re- say the

quirements cut is too little, too lute

The government hopes the reserve requirements drop will have a vital impact on interest rates. If the Injection makes

money

Press,

15.30

white Woolworth fell ning price,

NEW YORK STOCK MARKET

New York, Feb. 23.

piled ир Adverso nows

against tho stock market during the past wook with only a small dent made in prices. Instead of a sharp decling, the lovels trading dried up to of last October. Daily averagt volume was down to 1,840,200 shares, against 2,000,513 in the week, and 1,741,121 previous shares the corresponding week narrow. of last year, another moving market.

When the averages appeared

on Friday, indus trials stood at 430.02 off 4.88 points on the week; ralts 105.31 of 2.30; utilities 71.93 of 0.12; and 65 slocks 190.21 of 1.71.

Compared with a year ago at the time industrials down nearly 6 per cent; ralis

and 65 stocks 20 per cent per cont while utilities chowed рет a gain of more than dollar cent.

new

VIDIO

14.20.

18.50 10.00 12.50 14.00 13.30

MISCELLANEOUS

4.53 2.00 0.00

10.00

INVESTMENTS Yonglaze

1.K. & F.E

1.50

Invent Sungala

TC-

"Business activity the port said, "is now at approxi- mately the level called for by growth trend the long-term line, calculated at 3.70 per After increment, cent annual having execoded this line for several years,

While it

well decline i 300 g 10.30 below the trend line for some

1,527 +0 27.23

500 et 27.10

$,000 5.50

may

timo, unit has often done in the past, continuation of the long-term growth should even- tually bring a higher level of activity without generating a boom,

DIVERGENCE

SINGAPORE divergenes between the com-

STOCKS

"There has continued a wide

mon stocks of cyclical companies and consumer goods companies, current level, Even at the

cyclical stocks have declined than their highs more from during the 1953-54 recession.

Many optimistic forecasts of an early recovery in business

based

on the expectation

A DROP IN VALUE OF US GOODS & SERVICES

Washington, Feb. 23. The total value of all Ameri- can goods and servicos dropped from an annuat rato of US$440,000 mil- lion to US$432,500 million in the final quartor of Commerco 1957, tho

announced Department

today.

of

Singapore, Feb. 24, Brokers today quoted the fol- towing stock prices:

Opening are

The decline compares with a US$12,000 mlBlon $1.57% of increased consumer buying drop

batton study of carller periods from the peak to the indicates that such expectations during the 1083-54 recession are not supported by historical before the gross national pro- precedent

Dalu Lintang Rubber Co.

Ltd British Borneo Petroleum

Syndicato

Smeltera Consolidated

Ord.

Neave Ltd and... Fraser Fraser Neave 73% cum.

prof Gammons (Malaya}_Ldd. Hangkong

A

dicate that the current situation

The drop in the final quarter

of 1957 was US$500 millon

La not ha strong in many ro tilgher on an annual level than exception of President Eisenhower forecast earlier in His January economale report

lo congress,

348

Shanghai

Banking Corp Hongkong Tin Lid, Kumpas 150.

$3.00

*$4.05

$2.2711 $450. Ba 3d

30830

duct started to increase again.

"A comparison with the last rocession in 1953-54 would -

spects, with the

Lunas Rubber Fatalex Ltd. Malayan Breweries ...... New Serandats Rubber Co.

Ltd. Petaling Tin Lid.

#1.05

Increasing period."

a

tho

$3.15

$3.55

11.75

$2.50

$0.00

11.55

$20.70

Oils were the most hopeless sector, fort the cutting of prices and of production were in and out of the news almost every day.

Royal Dutch was down seven Ruiners was done in the local shillings six pence to a

Kuala Kampar Zin thia low of 14 sterling; Shell

Tranporiz

4ut the close old stock lost 3.3 shillings to a new low of 123 1.80 shillings three peace and the

9.02 others were down between 2 20.00

1:50 shillings and three chillings.

Japanese wero quiet nih with the 1930's non- week assented closing with a gain of

sterling,

1890's, while the both assented and non-ascented, were down 1 sterling.

The

market exchange unofficial morning at the following rates:- U.S. dollar, (Der $1) Sterling rates (par E1)... Australian notes (per 211 Indonesian rupiah (or 100; Slam tlen (per 103)

(Stralis). Singapore

Washington's

to plentiful enough force bankers to compete for borrowers, the changes could push interest rates down.

Cheaper money in turu might encourage businessmen to

rew

have been shelved because of the recession and thus provide the stimulant the

Optimism!

Hard To Take

London, Feb. 23.

for premium

British government stocks.

They all loat ground, but war loan lost 7/18 and the other Jong-dateds were ranged in between them. This is a good for short-dateds,

were

•Rome Hotel Singapore Cold Storage Straits Trading Straits Steamihin United Engineers Ord. Wearne Bros.

cumdiv; edeb.

special.

A

This accelerated government Despite tho fourth quarter

spending on defence,

the ro-

port said, plus "unemployment decline, the Commerce Depart benefits, public, and privatement said the gross national Pension payments, and an in-product, in 1957 totalled US$434,- creasing portion of wage earners 300 million, with the nation's records both in output at new 11.25 tin service, industries, should go volume and in value.

鼠 reasonable China Mail

5.10

Bank Of France

Statement

Paris, Feb. 29. The Bank of France statement for the week ended Feb. 10)

bonds fell 14 to 8 per cent. | Sales so for in 1950 total It was a disorderly week for 91,440,500 shares, against 70,182,024 a year ago. In the 1957 period the market was in an upturn after touching its low up to that date on Feb. 12. The rise carried on unili July 12 held unchanged. There were 70 new 1957-68 highs set reads as follows: and 22 new lows. Lorillard Toil gold holdings Jed in turnover with North Total other currencies Sight balance abroad American Aviation spoond.

EPU Jersey Standard third, Safeway Advance to Currency Stores

Stabilization KARMAAN fourth, and General

Total bills discounted 1,835,200,832,673 Motors fifth. Last week's most

Dank notes in circu active Insue-Royal Dutch- Lotion .... 3,148,208,1323,330 made sixth place. United Currant accounts and

459,317,79,030 deposita

-United Press. Frees,

demand col-wanted by the City Of London rather than by the ordinary to it in investor-United Press.

consider expansion plans that The sky still refrains from falling in. Wall Street

had six successive declines but no such lapse as could easily have come February of this sort of year,

is economy

waiting for.

EARLIER ACTIONS

the

Earlier retions--such as

DTC

control Some people find Washing- | evade exchange lowering ot discount rates ton's optimism harder to take finance a run on sterling.

poor business nows, The concession ly paraded as made credit easter but not then the

Street manages to merely a convenience to foreign more abundant. About the only but Wall

stockholders who can already sector where any results could take both.

reclaim British tax under be observed, was private home

double tax agreements. The A report by building. Bureau of Labour statistics shows

rew starts on housing from an nnnun] rate of $70,000

011

increase

December to January,

1,003,000

in

This has bee accompanied by a parallel hercasa inap plications for Federal Housing Authority insurance, on

is to

}

soll-

NEW YORK COTTON MARKET

Now York, Fab. 23. Trading in cotton futures last wook highlighted increas- ing strength in now crop months which wont to pramlum over · old crop

fint deliveries for the timo this season. At Friday's close the

a

ZURICH GOLD

BAR MARKET

London Stock Exchange in dustrial shares fell in the week

Where a non-resident was not lo February 14 to their lowest since 1954, a shado below the fully reclaiming the concession depths of the sterling crisis of it is far more than a conveni- last year and of the Suez war-nceand in any case, the Bri-

Ush Treasury loses all the tax. fare of 1958,

In other respects, Britain The internal purpose of the

She still now loan fores much better.

replenish the has virtually full employment of Government broker's means of

funding by both men and plant nothing to continuous resemble the serious unemploying long-term Treasury bonde Other Asent developments ment that has appeared in the on the market,

In the week to February 14 he sold out the last of the long ruled 14 to 73 points-70 cents stock (maturing in the year to $3.05 a bule higher than the 2004) which he previously had preceding week.

deferred Strength in the top. The 5 per cent coupon of months reflected; 1. Possibilities and of capacity, whilo America's is the new loan is In line with for a big lecrease in the retire-moderate, but business with the down to below 55 per cent.

the market but pension

guges.

this week:

mort-

Two Now York banica eut interest rates they pay On foreign time deposits funds

of foreign governments and banks deposited fur specific periods of time.

Hanover Bank reduced by

per cent its rate on both 9 day and six-month

deposits

to 2 per cent and 3% per cent respectively, J. P. Morgan cut Sia six-month rate

similarly

United Stalas and Germany.

LENGTHS

Britain's steel industry

La

оп

still working at over 90 per cont

surplus dollars payer

to be

most of

mined gold.

list

Zarich, Feb. 22. The gold bar market displayed a firmer tendency during the week to February 20 in quiet dealings on very limited ceiling by the Bank of England and small general offerings,

Dealings with the Middle East America were South

funds ment of acreage to the soll bank Far East was active.

frane 201,201,302,420 11,065,832,219

11.771,000,000

zero

Bank of England Statement

London, Feb. 23.

The Bank of England state- ment for the week ended Febru- iary 18, reads ca follows:

Notes in circulation ...£1.950,124,338 13.039,040 Putdic deposite

218,299,718 Private deposlis Government securities.. Other securities

aceipts Ratio

244,104,0G2

40,345,000 43,500,391 140

Unlied Press.

NAMESAKES

Answers-1 Salute, 3 Manner,

3 Dickens, 4 Wealth, 6 Aititude,

13

(From

On the gold coln markel, the с Expect, 7 Obsequious, 8 The inflow of money to Law and other non-tax payers like programme; 2. Expected contrading volume was unimportant Humble, Bully, 10 Servile, 11 don sui continues and the Bank the high coupon while sur-tax gecsalonal opposition to

prefer the tax-free ministration plans for lower and no significant changes were Greeting, 12 Condescend, of England stili cems

capital guins on existing

low price supporta; 3. Possibilities noted. Selling by the Bank of Hand, 14 Money, 15 Polite, 18

and adv-shaking. salting some

Moll into gold by retaining instead of coupon stocks at big discounts. for a stringent supply situation, England at times

Unclo Pumblechook good grade pressing effect-China Ühe nowly- but left its 00-day rate at the seling

The consensus is that the new particularly

Dickens" "Great Expectations.") old 2 per cent level.

cotton, before the new harvest Special. stock doo not preclude an Simultaneously, the London early cut in the bank rate. Long in the autumn; 4 Lessening muthorities have gone to great yields have already fallen to inst chances for legislation in tino lengths to induce non-resident September's pre-bank rate level to affect the 1958 crop,

may close Now crop

the owners of old and now sterling while the basic rate and short

week at 25,00 cents a pound, balances to tie them up into theylouds are much tighør.

40-point pre- Disinflation on Government's stabil-hing Teggury's new 11⁄2-per cent 25.

the year loans, tax-froo

model may require an absolutely mium-2.30 balo --- over realdents and purchasable with high long Field but funding corresponding old crop deli- A week ago old crop merely requires a relatively high | very, witch sterling at a discount.

They had issued no tax-fred one which comes cheaper to the may hold a premium of 18) stocks since 1944 and were Treasury, by lowering the short palata 65 conta a bale over the a thought to dislike them beonumo yield then by boosting the long deferred dulivery. - Valtod

they can molimas be used to China Wali Special.

Now York City business Roons continued to drop. A $50 znillion reduation Inst week brought the totni decline the first alx weeks of 1950 4607 million.

Bank

to

to pon tightened,

Postlive reserves in federal reserve system's member banks EXCESS TÉBErves loss borrowings bortalled 105 milion Tant weak, against $245 million week before.

Proza

SHIP

BEN LINE

Lar

to sustain

and

in

love of retail sales, which are Personal income was at a

millon now reducing inventories

record US$343,500 eventually should call for in 1957, despite a decline of 1,500 creased production."

million in the annual rate from Russian advances in the the third to the fourth quarter. missile field, the economists "ob- cof-

income Net personal not been served, "have ducive to a fooling of security US$13,500 million from 1956 to which stimulates free spending" 1957, while consumer spending

of in- increased by about the and the over-capacity

precludes, dustry

some amount--Router.

for

J. A. L.

Japan Air Lines

rose

some

have pleasure in announcing the

opening of their new Information and

Booking office in the East Wing of the

Peninsula Hotel

on

Tuesday, 25th February, 1958

Telephone Numbers:-

RESERVATIONS: 67424

INFORMATION: 60650