1958-03-10 — Page 9

THE CHINA MAIL, MONDAY, MARCH 10, 1953.

TRADE and COMMERCE SECTION

The Recession Poses A Basic Question:

WHO'LL PULL. U.S. OUT OF SLUMP?

The Government

Or The

Consumer?

By IVAN ZVERINA

New York, Mar. 9.

HONGKONG

STOCK EXCHANGE

Our Own Correspondent

Business dune on the Hong-

kung Stock Exchange this morn- $10,000, Noon quotations and

ing amounted to approximately

The continuing recession posed a basic question this week: Who will bring US economy out of its slump, the govern-the morning's transactions were: ment or the consumer?

The government started combatting the impression that only pump-priming measures from Wash- ington can do the trick. President Eisen- hower put the issue bluntly up to the consumer in his press conference on Wednesday. Just spending Federal money is not entirely the answer to the recession, he said.

Share DANKS BK Bank XO

Buyers Bollers

312.50

......50

INSURANCES Wheelocks DOCKS, ETC. wharr vident IN

SHIPPING

Dock..

LAND, ETC.

Hotel

ΧΟ

Бет

400 > 8.20

0.15 #.20

100 41 6.20 2,000 * 8.20

122

53

157 11.30

13.00

40 11,003 15.00

3,000 10 2,000 10 3.000

101

100

2

MK Land XD 33.25 33.50

At best Federal action can only provide partial relief, for example by accelerating public con- struction. An economic upturn will primarily depend on "millions of citizens making their ey purchases" and "having greater confidence."

The

XU...

World's Economic Boom Is Over

By LAURENCE-MEREDITH

London, Mar. 9.

THE CURRENT

BUSINESS RECESSION

Waco, Mar. 9.

Sir George Bolton, one of Britain's leading bankers

and an authority on international finance, said | A member of the British today that times everywhere have changed permanently and that the world economic boom is over.

He forecast that the world was entering a new orn in the international economic Aeld which would

be characterised The London

to

by the growing capacity Saviet Russia and China to export now

material and 4:ance

export capita! goods on a substantial reale.

"I believe that times have ebanged permanently." be Bald. “I think the boom is over and money and profits will be more difficult than in past. Coramodilles are not going to

Gold greater quantities or higher prices for a very long time to come."

من

in al

Sir George was discussing his first annual roport as the new Chairman of the Bank of America. London and South Until he took over the post last Lulj time year he was

14495

Renity RUOBER

Amalg.

1.25 1.275

Trust

1.20

UTILITIES

Star Ferry Yournali

115

12

2001 De

100

la

200

Light

11.30 17:40

20.50

300

17.30 director of the Bank of England 20-30 and in charge of the Britain's 475 426.31

23.00

21.50

$4.00

Business analysts, sharing this The net result of the move was belief, have been watching the still in doubt, consumer for weeks now.

The overall economie picture of Guaranty Trust Company

even more New York said until the trend was clouded

bustnessweek when some experts posedlectric XD of

րով Consumer

interesting question: spending is clarified, it is im- nather possible to say how long the Since the cost of living keeps

Telephone XD recession will fast or how deep climbing despite an oversupply INDIALS

of goods and E do wages Cement XD despite unemployment, does not Rope....

STORES. ETC. Confirmed

this mean that inflation is go- ing right along with deftation? Consumer buying recovered in

These experts clnim weeks of last year, what caused it: Washington, in the final but recent reports indicated a an effort to check inflation a

it will be.

new back-sliding.

which

not have been caused entirely by bad weather.

Dairy ** 16.80 17 Watson .... 11.50 11.00

3.40 this is

i Craw Sinceres... COTTONS

9.00

DISS

5.50

Textile *** 4.60 4,70 may1 year ago, made money harder NVMENTS to get. Then came the recession Yangtze and before the inflationary trend in cost of Eving could be stopped, the policy of

Other surveys confirmed this.

tight

Long Time

The consumer seems to be buy-credits changed to easier monty, ing with caution, saving more and trying to pay off old by before taking on new debts.

on

store

In

100 @ 17

250

In his report, issued today. described the new 19.50 Sir George 475 3.30 tonomic era into which he believed the world was moving, when he said:

Stock Market

London, Mar. 9. This Friday-like several preceding Fridays-ended the wook with a lot of hurried buying by those professionals who had sold short and were a little nervous about remaining exposed over the week- and to the impact of un- predictable nows; bottor a small profit on Friday than a big loss on Monday. However, this still seems a

Page D

New York Stock Market Review

By ELMER WALZER

London, Mar. 9,

Industrial stocks all but scored their best gain

since the week ended July 5, 1957, in more active trading during the first week of March.

The Dow-Jones Industrial averuge closed et 451.49, up 11.57 points on the week and within 7.10 points of the 1953 high set on Feb. 4. It was the. best plee since the week ending Jan. 3 when the average rosp 11.00 polnis, best weekly since July 5, 1957.

US COTTON

GOODS

MARKET

Liberal Party said inst

Oil shares featured in nearly night the current business | every session. Their gains on the recession is one of the week ronged to nearly 7 points Richfeld, Gulf and "most serious problems" In Skelly.

Now York, Mar. 9. facing the United States Cities Services roce 6 painis or

beiter. Amerada and Barber Tho dressmakers strike not- and British Governments.

were up 4 ar better. A long list "Nothing could be more of others gained 3 points or damaging to both countries and more, Demand for the olla the rest of the world than to reflected an oversold position let the business slump splil over and was helped also by inroads from a recession to a full-scale into fuel oil Inventories made by depression," Joseph Grimond, the recent cold spell. the MP, said,

Ho spoke before the organisa- tional meeting of the Waco Branch

English-speaking Union of the United States.

THE FUTURE Grimond also sald that the future of the world depends upon the success of joint actions by the United States and Great Britain.

All Sections

withstanding, listening ppate in the cotton textile frado this past wook saw multiple signs pointing to on early break-up in the business stalemate exist- Ing for the part four months.

All sections of the maritel The dress trade tie-up, in- participated in the rise and

volving over 100,000 workers in when the final count of the 1,372

seven-state area, and another insures appearing was made 25,000 employees in allled in- showed 014 galners, 290 losers and 102 issues unchanged. total of 78 stocks made 1957-58 highs and 21 made new Iowa.

Industrials rose in

A

TCW

Every

scision and at the close on Friday bad moved up in six successive starting a week ago dona

gain of 13.00 points.

"You can't buy the world out of Communism," he told the group.

"If we try, the world will ask the Communists how much they'll pay."

Grimond

bo Lavoura Bald frade with China because "we re

estimates.

for 2 Radis

dustries-dyeing, taishing, but tons, and trucking-definitely clouded the Imunediate picture.

If prolonged, it would have Lerlous repercussions on lale

spring and autumn business, but

most quarters felt confideat

officials government

would malce strenuous efforts to effect perform a quick settlement,

Lesa camings with rails

even than the low

WETC

However,

200 28.30 International monetary policy."bea market. The Financial don't want to foreo China to be favourable

He still remains a part time Tines index of industria closed completely dependent Gn director of the Bank of the week

the rate managed at 162.8, compared Russia." England

with 155.9 the previous week. He also said that although to rise 1.74 points on the week,

does not accept their best but it is a long way below United States

rise since Jan. 10. the 187.7 ut which is stood a this view, he believes it even The utilities rose only 0.50

countries lift them year ago, not to mention fts 1057 tually will and that negotiations point on average but enough to the two between

to a new high since But the week's professional probably will start within two last June 27. peric of 207.4 in May. buying certainly lifted prices or three years."-United Prosz. smartly. Rolls Royce rosa 5/8 and Ford Motors chain and great Universal Stores rosé 2/6, and Unilever and Imperial | be Chemicals 2/-. perhaps ''TL would prudent for the business world to accept as fact

a

The Malayan

Latest reports

Since it takes a long time failures reflect this trend. The before any economic measures number of fallures among reare felt, these experts admit Lailors of apparel and

cost of acthe upward spiral in cessories, dry goods and general living and wages may still be merchandise

143 Was

brought in step with the rest February, 20 per cent more of the economic pleture. But reversal than a year ago. Creditor losses they doubt that any have Kone up even more will be achieved. Stability is The US$6,153,000 In February 1958, the best to hope for, they say,

165 per cent from the and the likelihood is that this trend US$3,323,000 creditors lost in

Inflationary particular February 1937.

at a will continue, although

whal slower pace, no matter els happens,

up

Business insolvencica in the first two months of this year totalled 302, with Babilities of US$11,200,000 na

against

from and-price spiral down

going

of

Rubber Industry Is Optimistic

"It appears possible that the world is moving into a position of abundance, smaller profit margins and ferco trude competition

3/-, Several

Trading picked up to the best level in a month with dally avenge sales at 2,000,327 shares,

the previous 'wock.

sloses to Woolworths NEW YORKgainst 1,124,510 shares daily in

But the biggest rush was in that of shares. Royal Dutch, largely commodity prices have fallen on Dutch buying, TODO £14,

for deep-sented

He cited these

factors

35

a change economic

must

COTTON MARKET

Mining thares also pequired Cotton a following, though not on their old-time scale. Chartereds rose 7/4, and De Beers 3/9; this looked professional

now

New York, Mar. 9.

past futures this

Steel lasues moved ahead and enjoyed several days of leader-

OPTIMISTS

Optimists looking beyond the strike, saw three signs acting to change underlying markot retail

distribution; tho proaching Easter season; the

the further cut in

Federal rate, a stop Reserve discount

"to maku taken, omelais salt, ered conditions more favour- able to recovery."

schology. Better weather for

A quick labour peace in the dress trade, and a sustained

ship. Chemicals to improved stock market recovery, could with Union Carbide up 4% speed the anticipated Improve- points on the week and Du Pontent, observers felt. and Eastman Kodak up mare Low consumer Inventories, tan & cach

and the rising cost of raw

chances cotton, with

the raw material may cost even more botere the next harvest, - "aro other slen posts on the road to recovery," another observer commented,

Better sales reported for autos in the latter part of February wesk settled back after fent some strength to the motors crop deliveries hit where Chrysler gained 2 points, seasonal highs, but still General Motors 14 points and Ford. 'nearly a point United finished the period on

Press. tho higher ground for

GOOD WEEK

sixth time in a row,

At Friday's close the list ruled

British Governments had

t

US Raw Cotton Exports

Te-

In cotton yarns, activity con- tinued extremely quiet in most maricot segments, with buyers holding to a hand-to- mouth. coverage. However, prices held generally unchanged despite the inactivity,

were as kicadying

495.400

of

to

effect, although Americon buyees still practise

1509,201 caution

covering

economic and Shell Transport and British Petroleum between 11 and 12 political reasons; thut there is

arshillings, Canadian Eogles nearly future ttle in the Immediate

the 10/- and Burmah 672, to to suggest a return conditions of the last 10 years revival in certain despite the countries of policies of cheaper Singapore, Mar, 9

money." Malayan rubber in- dustry should prosper and contributing toward progress despito the throat in the International

climate: from synthetics, the new president of the Rubber ⚫ Presistent and large agri- good week, edging slowly bights: 2 to 10 points 19 to 95 cents a in North they were helped by sterling's balo-higher than the preceding Producor Council, Mr cultural surpluses

recovery. This connection bo week. which, * appears,

Price-lifting power continued tween gt-edged stocks and Loong Hee-yong, said to Amerion, Politics, they think, rather

cannot be disposed of by any sterling is a little bit far-fetched to be generated by: 1.

New York, Mar. 9. 274 than economics will be the

day in Kuala Lumpur.

methods. If normal

fis Raw cotton exports these but it has grown in popularity Strengthening congressional op-

Hord libres were steadier, given arc and US$7,084,000 in the same forca that will keep the wage-

away over

since

dull. the pound

Decisin was position to administration plans ported in bales by destination although Mr Leong said three quarters surpluses period of 1957.

are damaged

An by the New York Cotton Ex- Calculta burlap producers devalued on Seplanter 10, 1949, for lower price supports; 2. Malaya was ill virgin other producers

War Loan gained 7/8 during expected big cut in the cotton change for the 1957-50 season get minimum prices had was suitable by sale or barter, prices And yet retailers throughout

Jungle, and most

remain depressed.

March 4, the week, but the others were nereage this year through opera- through Politics would also demand a for planting rubber, the US have not given up

of the soll bank pro- follows: The growing capaelty of irregularly higher by amounts tion earlier hopes for un upturn in tax cut as a eccession fighting

the The workers could help to

gramme; 3. Dimming chances Britain to lesser ranging from 1715 to 44th.

A unles in March and April, pro-meassure but economies.

the to strengthen

There was a good dicanand for for any acreage increase legisla- competiva the USSR and

extent China to expert raw vided the weather co-operates moment,

materials, especially base and forekom bonds. Gorman 7 per tion in time to affect the 1959. Thuy say the big mow which dictate otherwise. Several tax position of natural rubber,

have bren hampered February sales should cutting measures

"The realistic and co-operativo precious metals, and to finance cent Potash, nou-assentet Potash crop.

£2 the Dawes Loan Old crop deliveries, plying an workers and export capital goods on a gained

£1 and the independent non-assented spirit of plantation under the guidance of competent substantial scale.

to be. seen Young Loan £1. In die Japan-holstered by covering In union oficials continues to con- "It remains

in

whether the USSR will continue ese list the Tokyo 5 per cent expiring March delivery and in tribute to the improvement

production of to use capitalist techniques and non-asscated Jumped £2. The creasing concern over a possible the 18993, the shortage of good-grade cotton harvest is quality and

markets as they develop their non-assentede

the 1030 all rozd before the next rubber," Mr Leong mid,

£ while the non-asserted of available. foreign trade," the report said. 1907s and

Raw "If new land can be obtained

cotton exports for the Military developments the Tokyo 5 per cents fell from the government, thero in

£. Chinese bonds wedge a season to date, as reported by capital and enterprise to open where

the New York Cotton Exchange, up 1,000,000 acres in the next possibility of orthodox weapons lew shillings highor,

Dollar stocks w cre very totalled 3,030,664 bales against tactles being and 10 years."-Reuter..

abandoned in favour of strange strong, especially the American 4,092,090 bales shipped in the On of New, same period last year-United new oils, Stenderd and very expensive weapons which will not involve Jersey Jumped 9 points and Press.

01 11 points. The the use of manpower or raw Shell materials on anything like the premium for the dollar slacks, rather idle at ho tant of the some scale.

George warned: "In Sir best circumstances private government

а

anyhow, scem

have created reserve of de prepared just in case but sothe mand which will help boost experts now think they would March sales. Easter should help do more harm than good,

One apparti nlong in April. firm reported orders for men's

and boys wear

last year.

The Strike

to

They think a tax cut would 1 per cent glyo wage earners more money above comparative dures for to spend and automatically give

push A further upward prices. This might only bring back full-scale inftation,

Administration Instead, the and CongrCAS are trying create more jobs for the large army of unemployed through such measures as these:

Thueso estimates, however, did not take into account the garment industry strike which started on Wednesday in aeve Eastern States and paralysed

Son, William F. Knowland, three-quarters of the total US output of apparel, a business Republic Minority Leader, sald US$1,000,000,000 on the Administration is "certain- worth mually. Unless brought to any considering a bigger public end soon, the strike would works programme than original shortage in Springly proposed in the new biniget, create a

But he said he doubte the Ad fashions and curtail sales.

The general abandonment by ministration would create a new manufacturers last week of their public work agency on the lines long-standing "Fair Trudo" of the old Works Projects Ad- pricing policy on

move appliances was another

in that might result in a boost retail sales. "Fair Trade! has been a myth in most discount houses in the past year or so: They were selling toasters, irons

the

(WPA) or Works Administration

hourshold Pubile

ministration

(PWA).

Emergency

Banking The Sconta

Exchange Rates

Dusiness was done in the local TLCİCİNİ Axchange market

rates;

this

morning at the following 8.51

8. deller (per $1) Sterling notes (per 1)**** Australian notes iper £1) ... Indonesian rupiah (per 100).. Stam ileal (per 100) Bingapore (Straits)

Emergency of it appropriated.

to pood

•

10,10

12.47

9.00

24.00 $.00

Lo

thene

every poenit

gradually

current

business

reconsider should trade policics and financial techniques in order to mot the challenge of what may provo bo' How era la International economie fold,"

United Press.

the

course,

were

the

wreck, finally improved 4 Bank Of England

per cent. United Prod

SINGAPORE STOCKS

Statement

London, Mar. 9.

The Bank of England state- ment for the week ended March

5, reads as follows:

Notes in dreilation.... Pubile deposit... Private depoate...... the avertiment securities Olhor, securities Opening Receipte

Skigapore, Mar. 10. Brokers today quolod following stock prices:

SPORE RISE IN BLintang Rubber Co.

Consolidated RICE PRICE

Sterling 1973,761,614

11,907,106

320,000,920

273,790,843

$4,096,233 28,50/603 9.0 **United Press.

Of France Statement

Forme

1.4215

Üni.

Patroleum British peo

Byndicali

Tin Emeltors

Framer & Neave Lid Ord. Traper & Neave 7% cum).

prof

Bank

$7.65

Gammons. (Melayu)_Lid.

A

linngkong

Shanghai

Banking Corp.

Hongkong Tin Lu

Kumpas 124,

Army Engineers have a US$14,- 500,000,000 authorised project In river and harbour develop- ment --- most US Bion of it already appropriated, The: Interior Department has Com-authorised fand reclamation pro- and other sunalt House adgats mitto approved a compromiso Jact of US$2,700,000,000, half

manufacturera US$1,350,000,000 at below minimum list prices which the Housing Programme.

Those projects with financial

Singapore, Mar. a Far Trade formula prescribed. home bruktbig and provide more

jobs for unemployed. It is ex-backing already approved mould

Nice trom

the Singapore General Electric started the

pected to spur the building of ges priority and provide bes ball rolling by wyping the between 200,000 and 400,000 new jobs, the Administration hopes, stockplie would cost aver

dollar a pin more from Tuos- formula fost week and of homes in the next year by **-

With most of the government day, because of a price rise ip

the Minister major producere followed quit couraging lenders to make mTO

for

Kusla Hamper Tin jamas Rubber mates Ltd. $1.00 Retailers immediately cut their mortgage money available. The anti-recension projects still in Thailand,

Mulayad Breyerlen karen $3.60 Total gold boldings 201306 20KANO prices and many elties reported would require lower down the paperwork stage, steel out- Commerce and Industry, Me

New Burundan Rubber Co.

Tolst other ourgenclin 11,906,720352 ruth of buying A Broody payments ber higher interest put only perceptibly higher 3. M. Jumabhoy sald today.

Ltd. The new prices will 'bo #M471 last week, stocks of petroleum

Bight balance · Abrosi ator sont depsatament

products at new record high a long ton e-godown for 10 Paling Tus L54. US$100,000-worth in new orders

ond with the consumer cau- par cent grada Thai white rice, Radios Hotel

Bingapore Cold Storag to replace doplated ventories.

that and

#M402 for 10 por contareita Trading, Other stores only reported a queried the Department of In- tious, budnessmen ögren

Straits Stueralto minor life in sales while small terior and the Army Enginear" businam may continue on a grade That while rice

are United Engineer Ort prices The to

présent submit to it lower plate for many months worried in Corps independent retailers

div; edɗb, -- China about furiber towering of their planned profania which can be after the current decline is 1400 and $M414 respectively. Werner

Special Mirendy · Mail profi" megios, ADORETERAN "Memadately." The minuten-United Press..

The Administration has

Reuter.

$3.00

89.97 $1,74

Paris, Mar, 0. The Bank of Franco statement

for the week ended Feb. 27. reada as follows:

PU

Advetips. to Babibm-

Ho Jund

ano

11,771,000,000

Total bills discotused 1,8785339,030,100 Bank notes 30 pieceska.

Son 3,117,853,134,000

Current ODEMIÈR

deposits

---Unked Prem.

Continent Orient Canada

Tõlki for myART® KA

Enne period last years

(excluding inters

beyond 1200,490 mediate needs.

-

257,302 3,535,644 Hemp and sisal prices wore 4.001,000

United Fren.

mosily unchanged in a dull market.-United Press.

SHIP

BEN LINE

PHOTOGRAPHS

by our Staff Photographers

Hong Kong Singers at Loke Yew Hall Passing-Out Police Parade at Aberdeen Parent's Night Function at Queen's College Economic Society of the H.K.U, Dinner Dance Farowell Parade of 82 Independent (H.K.) Squadron Parade of St. John Ambulance Brigade at Caroline Hill Boys' and Girls' Club Assn. Concert at Wah Yan College St. Davids Society Annual Dinner at Hong Kong Club China Philatetic Society Farewell Party to P.M.G.. ATT Lo cal Sports Local Presentations

Wadding s Locat

Etc. Etc.

Available at

SOUTH CHINA MORNING POST, LTD. Wyndham Streat.