1958-03-24 — Page 9

Page

*

THE CHINA MAIL, MONDAY, MARCH 24, 1958.

TRADE and COMMERCE SECTION

Once-Soaring Rocket Is Grounded

US Economy: A Gloomy Report

Confidence And US COTTON New York Stock NEW YORK

Consumer

Demand Run Out

New York, Mar. 23.

The US finally got its Vanguard satellite

GOODS MARKET

New York, Mar. 23. Cotton textile manufacturers this post wook paid in- creasing attention to the trond of consumer buying for the Easter season, A continuing gain in the rate

spark needed to "get the market going'again!' after a year-long depression, some executives thought.

into space last week, but a once-soaring of retail sales could furnish the

called American

Business

rocket remained firmly mired to earth. The plain truth of the matter seemed to be that the twin propellents of confidence and consumer demand for durable goods had at last run out after pushing business ever higher for some 18 years of war and peace.

"Business should be taking the lead to inspire confidence, in economy, without walling for the government to

slarl priming the grump," Charles 11. Percy, President of pany, said last week.

Facets included:

•

<if the problem

Productive capacity p- prozed to have caught up with, or even presed, current demand in the US and, perhaps, in the world as a whole.

and large.

the com-

The is gambling that price cuts American consumers, be į and new products will stimulate

buying consumer have been

buying, gamble hard goods for years at a rate in which he admits might involve excess of their actual Incomes, considerable Tisk. birt "risk and now are in debt and paying taking is a principal function of by Instalments for card, televi- management,

the and Joday sion sets, refrigerators, air con-

Makes are high." ditioning and house.

•

has Business

plenty of money, but

retrenching in rapidly on capital expenditures for plants and equipment in the Lace of stumping consumer demand.

Confronted

Sears, Roebuck and Company,

COTTON

Market Review MARKET

By ELMER WALZER

New York, Mar, 23.

The stock market gave an appearance of strength

during the past week but it closed the week lower in the major Dow-Jones averages.

Utilities Anished with a gain

of 0.32 point on the week at 73.02 in their average, a new high since June 14, 1057. The The really rising cost of industrials lost 0.55 to 452.49 raw cotton, plus inflationary and the rufis lost 058 point to Implications drawn from pro- 105.80. pols to end the recession, help- to generate a better under-

But there was a gain of nine lying feeling,

cents a share in the Standard The general observation Poors average of 500 stocks. summed up to "the worst is be him us and overdue,"

The reason for this seeming

pickup is longerepmey in the leading mea

surements of the market les in the fact that the best showing in

Willias A.L. Sibley, head of the Carolina group of Monarch Mills, presleted an end of the present recession in exiles within six months.

ment.

The

DIFFERENCE

the huge mail order house, has a similar outlook. Its Clairman, Theodore V. Houser, unnounced the company. would cut prices una long line of products, promote a new credit buying problem plan and continue heavy spend-ket improves very soon." with a similar to "which came Arst, then on capital improvements.

chiciten or the ezg" ecogumiska

and government officials debated the most effective methods of priming capital outlays and/or Consumer spending.

OUTLAYS

While President Eisenhower and Congressional leaders went on with plans for huge govern- ment pubile works outlays to Case mounting unemployment and needle business, the Federal Heserve Board made its second anti-recession move of the month.

The

reduced

the

. But many other

mores

the market was in the lesser- known Issues.

Late in the week-end simul- taneously with the release of the cast of living index show- ing another rise, the market community turned to the so- called inflation hedge stock stocks whose

have companies Inventories of raw materials or raw material production fact- mer. These Included the copper, aluminium, and oil issues.

BEST SHOWING

The London Stock Market

The

REVIEW

New

Zealand Labour Turnover

Costly

Wellington, Mar. 23.

The turnover of labour in New Zealand industry is a costly characteristic of inefficiency which can be reduced according to a study made by the personnel group of the New Zealand · Institute of Management.

The study of labour turnover by the Institute covered 6,116 male employees, and 338 terminations of employment.

The causes for workers leave employers perpetunte A COR- ing

their employment were | siderablo portion of the nation's analysed at:

low and expensive productivity. (retire- "Maintaing stability of staff

"Unavokable"

is therefore a financial bencht

10 un orgunluation, as well as to

a nation's economy."

The

labour force i New Zealand has increased by 130,-

Now York, Mar. 23. upward movement in cotton futures, under wayments, -health and other rea- Linco lato January, song of this nature), 22.2 per gathered o littla moro cent;

⚫ Workers found to be un- this mamentum

past

satisfactory, 19.8 per cent; wook. With all new crop months at seasonal highs, the list at Friday's clora ruled 26 to 48 points visor, 3.8 per cent; $1.30 and $1.90 à balons • Workers attracted away, been registered in the past five

28.7 per cent; and higher than the preced- ing week. It marked the pighth straight week of higher prices.

⚫ Workers dissatisfled, 14.3087 in the last ten years, rising per cent;

to $83,001 in the six-month

to

• DiMculties with super-period which ended in October

⚫ Miscellaneous or unknown

cause, 10.9 per cent.

DISMISSALS

re-

1957. Most of the Increase has

years. Reuter.

HONGKONG STOCK EXCHANGE

London Mar. 23.

The report, suggested that Main price-lifting fluences Lowering the bank rate this

continued be found in: 1. beller selection would minimise past week by one par cont Prospects for a higher

the dismissals caused by un- gover- caused much excited ment Ioan rate on the new crop; satisfactory work, which ac-

of the dis speech in the City of 2 Rackwardness of

for most new crap countert

the London and somo

heading and seeding over missala under swift preparations

wide sections of the south. 3. "unsatisfactory," raising of stock prices by Possibilities that the soll bank

Unsatisfactory work, the re- tho jobbers, but the will cut the acreage to around port said, wes strongly prevailing mood was one 15,000,000 acres the smallest in prosented in the over-30 group. of caution.

many years; 4. Vanishing The persons echcerned chances for any major legisla- mainly in unskilled or sum!- The guvernment

itself has tion which could affect the 1968 skilled teenpallores, emphasised that inflation st} crop; 5. Inftatlonury implications About one-third of the un- persiale and that the squeeze drawn from the government's satisfactory performance cases • Business done on the Hong- still ort.

"easy" money policy.

were discovered within the first kong Stock Exchange this FOCUS

three months of employment, morning amounted to approxi- picture but more than that were not | mately $550,000. Noon quota- focus. discovered until after they had tons and the morning's tunaac-

The index of industrial prices, which was 100.2 on Wednesday, before the bank rate hind been lowered, jumped to 164.5 on Thursday, but closed unchanged on Friday.

קט

14

The world statistical also came

the

la

The

were

Our Own Correspondent

INSURANCES

ions were:

In

Shared Huyers Sellers BANKS

Sales

JK Bank

100 TO%

$1

33.25

6.30

120

Union Lombard

SHIPPING

Wheelocka

DOCKS, ETC.

K. Wharf..

Dock 12.50 53.50 2,000 17 53 Provident. LAND. ETC.

12 12.20

k Hotel 13.70 18

الله ال دیا المال الله

500 v 15.70

1,500 15.70

300 15.00

While a wide difference of opinion existed as to just when the turn will take place, con census was at the second half will witness a marked improve

viewpoint outimistic was extased-in face of 10 nimittedly poor current volume of business. This was pointed up

into sharper in mid-work by news that some

The International Cotton Ail-worked for a year. This, the southern print cloth plants in- tend to cut proction back to a The coppers made the best

Visory Committee reported world report said, showed defects consumption is exceeding pro- supervision. four-day we "unless the mar showing for the week and those

duction by about 2,500,000.Leles, The outside the group used to cal-

UNSATISFACTORY indicating that stocks In At 104.5 it is still sone plants are to close for four days culate the Dow-Jones Industrial

the best gainers. Per cent below where it slood 1957-58 season would decline to

Unsatisfactory conduct figures showed that the main offenders over Easter, to be followed by a average were

The day before the 7 per cent their lowest level in five years. business four-day

Nickel, in the

World consumption may be week of three shifts. International preparing for trouble that may

were in the 30 to 40 years' lower five average. Inst 2 polots. Magmate emerged on September 19.

than Jast Other plaats are working ile shead. are

Taking the entire week, the somewhat reducing in-

gained 5% and American Ma-

Reason's record of 42,000,000 group, although only a quarter und six durs with three shifts

of male employees were in this ventories, production and costs.

chine & Metal rose 44. A long two giant tobacco shares led in

the bales,

Committee mici. the general advance with Im- Sources insisting that "a plek- calling the ones They are

list of others roze 2 or more.

group, Most pr

person consumption now loudest for

concurnerb immediate govern- tip.ls long overdue," pointed to:

were doing Lorillard ran up 4% points in perial Tobacco up 3/- and Bri-World

Bight the. The fairly steady furnover of

2/0. Wallimated at 39,400,000 million ment

against

work. retail sales of soft goods; 2. Low the labaccos. It led the market, ish American recession.-United Press.

was Paper deferred shares, in a bales, down 1,700,000 bales from

Dissatisfaction with working inventories at all levels of dis-in turnover. US Tobacco

Biggest drop was of their own, rose 4/9 last season. tribution; 3.

In the conditions caused twice as many M contention second with lis price unchanged world

without attracting as much at- about 2,000,000

terminations of employment 1 Philip Mortis lost a point on the are "rock bottom' that prices

tention as Rolls Royce, up 2/3, United States.

others, and their stiffening attitude to-week.

At home, statisticians looking dissatisfaction with pay. Line Associated Among the drugs. a long list and ward granting concession; 4.

Imperial Chemicals over the potential supply ploture the Electrie, Quick sellanent the dress set new highs. Gudna in

of

Unilever,

1 and 2 believed the situation on stocks all employees were unmarried, பந strike and the exported early group ranged to 4 points in and

might mean a boost in the sup- more than 35 per cent of those

who let beemise of dissatisfec- } Youmati port rate to around 85 per cent resumption of buying by cut-Plough, 4% in Vick Chemical, shillings.

and 4% in Allied Laboratories.

of parity. They figured, on that tion were unmarried in the wind American Cyanamid and Abbott

bails, the loun for milling one- Discussing married Another straw

inch would be in

20 20,20 the neighbour- against single women, the report Electric .... was the widening number of in- rose more than 3 each. Merck

pound. says that in a survey involving hood of 80.15 cents quiries for print cloths, late in ran up 216.

This would be appreciably above 2.700

employees, 2,198 the week, wanted for third and

umarried. 15741 570 the already guaranteed minimum WATC fourth quarter delivery,

of 34.55 cents the demand was

a pound. The married. March (1050) futures contracl In the four months of the on Thursday touched a new high survey, 17.4 per cent of the married women left their jobs, In the of 38.84 cents a pound. Japanese list the 1910s, the Raw cotton exports for the compared with only 9.32 per cent Married of the single women. women. therefore, emerge AS the less stable group," the re- Claw.* port sald.

Bank of England Statement

Bound

London, Mar. 23. The Bank of England state- reserve requirements of com- mercial banks by percentage ment for the week ended March point, thus freeing about 490 19, reads as follows: million of the reserves: member

banks mus1. Keep on hand

gainst demand deposits.

Since a single reserve dollar

on the average is able

port six

sup-

dollars it additional cory

loans, the action in meant an immediate $3 billon increase in bank credit through- out the US.

תון

Bankers disagreed widely on whether the move would have any appreciable cfeel business. Soine thought bigger reduction was needed, wille others sald they already had more toan capital on hand

Pubile deposlis

Sterling

tore.

Notes in circulation....1932.552,050 most milis turned

18-214,063 business at the prices offered.-3. 297,224,327 United Press. Private deputa Government securities 203.629,862 Other accurities

47,550,187 Recripta

20.150,701 6.4 But

-United Press.

Bank Of France

1

Statement

Paris, Mar. 23.

tate

than the present credit market demanded.

The Bank of France

The cut leaves the requirement for the week ended March ment on lime deposits at 6 per 13, reads as follows: cent. An earlier half-point reduction

Franc

201,204,202.420 12,117,628,335

been effective | Tota: Fold had

hulding on March 1.

Total ofhereurrencies Meanwhile, the President's Sight balance abroad

To EPU

12.000.609 000 economic advisers sald he will Advance to Stabilisation Fund wait until at least inte April before deciding whethor 10

Total bile discounted 1,535 376,686.011 Bank nules in cirou- advocate tax cuts to bolster Lalian business. This is to enable him Current to assess both the April business reports and the political temper

of the country.

FORMULAS

The Treasury has been con- oldering dozens

of tax

formillas with no prosent

cul in-

dication that any one is the most likely to be adopted it and when..

One plan would forgive all withholding taxes on

personal

BAL

accounts

deposits

OILS

Olls failed to recover all of their decline in the week. With the exception of Burmah, closing 1 shilling higher, they were all down at least a shilling, while Royal Dutch was down b/-.

Foreign bonds had a week of remarkable

1930s

demand.

bales

Shore shares got a lift with While Kroger up more than 3. Johnson at a price" de Johnson (Bandages) rose 34, down the Jefferson Jake Sulphur gained

Corn Products was up 3% in the foods. Dow Cigar ran up more than 2. Belt and Howell

and the Tokyo 5% per-season through March 18, as re- rose 45% in the cameras where cents were up £2 and the 10078 ported by the New York Cotton US RECESSION Pla

rose 12. American up £1. This applies 10 the Exchange, totalled 3,788,770 Distilling and Schenley Were con-ussenteds, but the assenteds, bales compared with 5,050.001 well up in the liquors.

in almost all 'cuses, were up the bales shipped in the same period NOT ENDED

Oils scored snail gains on the same amount or nearly so. last season-United Press. week. Steels lost a bit.

German Dawes Loan rose £2, Motors held steady to firm. both asyented and non-assented,

equipment had gains and

the Young Loan it would be premature to Omee

Inter-scenteds were unchanged. The ink the end of the American running to 7 points

Machines Chinese 18989 gained sterlin Business recession is approaching, actional cording to Mr Arthur Burn:, Chemicals derlined as much as

Dollar stock lost ground last Union Carbide. week by 1 or 2 points and their former chaltman of President 32 points in Eisenhower's Council of Eco-Zenith ran up 124 in the Tele premium cased to 6 per visions, St Paul gained nearly 2

cent. nomic Advisers.

points In the rails when Its

dividends in advance on the same basis as last year.

Chicago, Mar. 23.

The current recession, mild up

to now "need not remain that" and was already being felt to every some decree in nearly

in a major industry, he sold, speech at Chicago University last night.

Mr Burus recommended

3.183,604.483.095 SUS5,000,000,000 incune tax cut 48.35€ 200.043 for businesses arul Individuals, talled PRE -Chlum Mail Special.

JAPAN'S ACTION ON

on

directors declared four quarterly

SALES AVERAGE

non-

THE BANK

RATE IN JAPAN

Goverments

Over the whole work British gained ground, Old Consols and War Loan

Tokyo, Mar. 23. Kained 12/6, as did also the rail- The Mainichi newspapers said way nationalisation stock, while editorially today that Japan was several others were up by 10/-. not ready to follow Britaln und The Index of government stocks America's lead in reducing bank The market had two days of closed the week at $1.40, which|rales. a

im- "In Japan, despite the gain and two of decline, Sales Its not bad when compared with averaged 2,283,176 shares dally, its 81.51 on the day before the provement of the international down from last week's 2.401,808. | bank rule was raised to 7 per | balance of neemunts, the re- So for In 1958 sales have cent. On. the day, that hip-covery in foreign exclung totalled 123.843,450 shares pened the index tumbled almost holdings is only about 100 mil- against 111,227,400 shares in the exactly 4 whole points to 77.52.tion from the bottom reached in corresponding period of lastUnika Press.

year.

A possible spur to the better tone Tate this past week was another cut in reserve require ments of Federal Reserve mem- ber banks. This out, like the cut made less Bran a month ago, numped 5 billion of credit into the money market. The total of New York, Mar. 23.6 billion additional crodit in a

WOOLLEN GLOVES

month or two.

Singapore Stocks

Singapore, Mar. 24. Brokers today quoted the fol- However, Wall Street isn't lowing stock prices;

Opening convinced the market is going

Batu Lintang Rubber Co. to hold at current levels

Ltd, decline Belah Borneo Petroleuni many are predloting

Syndicate early in April. There is a big

since Consolidated Tin Emeliere short interest-highest

Ord.

270 Cd Fraser & Neave Lfil Ord. $2.70 total of Fraser & Neava 75% cum

34.05 Cammons (Malaya) Ltd. 42.35 going kang

Shanghai Banking Corp. Hongkong Tin Ltd. Kumpas Ltd. Kuala Kampar Tin

June last year," the editorial said. "The will to invest stands ready to act at once when sup- ported by

polley,

positive financiat

Although only 35 per cent of

In

wonien

HK Land

XD Humphreys Renkty RUDDER

Ama...

UTILITIES T:......

31.25 31.50 14.00 1375 1.421

1.5 1.27930,060 #1

1300

"2.80 23 1,500 a 22.00 1,000 22.0

90 17.50

C. Light...

17.50 1150

women

HUMAN ELEMENTS

conclusion, the report sums up: "The economical use of the human elements of pro- duction or commerce must be essential consideration En

effelent management.

100 of 94.30

30 & V7

3407.10

4,300 17.20

100 20.20

400 uF 20.20

1,100 26.10

100 26 20

333 20.10

Telephons 20.30 23.40 2,600 g 29.10

1800 24.20

INDUSTRIALS

Cramont

21

3D

15.30

4.00

Amor Com. STORT, ETC. Dairy!!

17 17.20 1,100 a 17.10.

300 17 10 Watson XD 1070 11 COTTONS Texille

Exchange Rates

Business of

was done In the local unoMetod exchange market tilis morning at the following rates> U.9. dollar (per 31)***** D.H) Sterling notes (per Elt. ...... 16.08 Australian notes ther 11 of inceleney Indonesian rupiah (per 100) ..

"This survey hits shown that the labour turnover Is a custly characteristic

Sintical (per 100)

which coa be reduced... the 'fringe' who constantly change) Singapore (Straits)

SHIP

11.29

28.00

3.00

BENOLINE

POPULAR PUBLICATIONS

"But it is not the time to Chinese Creeds & Customs Vol. I emulate the American-British Chinese Creeds & Customs Vol. If is | Chinesò Croods & Customs Vol. II' for some time yel.- Baby Book

example. needed United PreER.

Pallent walling

Hongkong Birds (Herklots) Coronation Glory

TUNGSTEN King George VI

PROBE

18.00

18.00

-18.00

25.00

35.00

7.50

7.50

It's Fun Finding Out ---- 2nd sorica

(Bernard Wicksteed)

5.00

Express Annual (1957)

10.00

Ruport Annual 1957-8 Rupart Magazines

4.50

1.00

1.50

8430 And 01.00

1.50

.30

ot

Lunar Rubber

Entates Malayan Breweries New Serandah Rubber Co.

Lid. Petaling The Ldd.....

Jis u

31.00

2

Aula

.ao

dalo to be announced, It mid

S.E. Ašla

130

$3.6315

$2.50

12.0235 19.01 $1.7236

5.00

Senato Finance, Commlite. - United Press.

Hong Kong Businošs Symposium

$5.00

On Sale At

A

pret

income for the last quarter of 1053, a method which would

American wool importers said today Japan's cost the government from eight to nine billion dollars. Under voluntary quota on woollen glove exports will this plan, the corporate tax rate

firm prices in a widely fluctuating market. would remain at is present 52 per cent.

There are also plans for sold a similar

However, sweater importers in the US in Japanese wool

voluntary quota sweaters. cutting business taxes, but some

Japanese woollen sweater However, in a sober evalua-1931. government economists

oppose exports will have fittle actual tion of the Japanese move, maty The short interest such a move, since they say

effect on the US market.

sweater and gluve Importers 4,460,000 shares represents business ins plenty of money.

agreed the Japanese decision big bet the market Condence, they may, is more Some Importers thought the was a wise stop that will take down. It also is a potential important there lax cuts

280,000 dozen limit set by Japan the wind out of the sails At least one major corpora yesterday

of buying total to the full amount was "grandstand American

1

sweater and glove of the shares because if con- Bell and Howell, of tion. Chicago, ademed to agree with play to appease American pro-manufacturers who have been vinced there is a recovery

teciionist interests.

calling this government view. The

for import tariffs and hand the shorts will cover. But One importer said the Tokyo quotas and quofing "astronomi- they haven't shown too much company, which manufactures

decision Was "promotional eat agures" on Japanese imports nervousness of inte. cameras and tape recorders, is

by the Japanese urging other Arms to follow it device"

to to push their demands.

A factor in favour of the example in stepping up output make it appear that there will These importers polated out market Just now is the decline Ramos Hotel to cut unit costs, offering now be a scarcity of sweaters and to that the 200,000 dozen quota wili in volume on declines and a rise napore Cold Storage products at lower prices, in- make American getallers "rush actually represent only one or on advances. This reffects lacke | straits Steamship creasing advertising and alosin and place their orders."

two per cent of American wool of overhanging

31.07 Equidation, United Engineers Orál": Activities and freezing manngo- Most sweater importers clalım | sweater production, United | market- men assert-United Warner

Chias Mall mént sokiries.

thero li at presont little interest' Press.

Press.

Strata Trading

elimdiyi t

Bpecial.

Washington, Mar, 23, The Tart Commission an- nounced today us inquiry into competition in the US between Ten Points About Pearls domestic and imported tungalen Points on Judging Jado

ore and concentrates.

The Commission said it will Outline Relief Map of China conduct public hearing on

11

is making the investigation pursuant to a regulation by the Gilos Annual (1957)

Agreed Merchant Rates SOUTH CHINA MORNING POST, LTD.

West German Deutschemarks: Maximum Seiling 72-3/10.

HONGKONG

KOWLOON