1958-04-14 — Page 9

Page

A

THE CHINA MAIL, MONDAY, APRIL 14, 1958.

TRADE and COMMERCE SECTION

US In The Grip Of A Major Paradox

"

American Economy: A Survey

Ike's Solution For

Business Slump: "Buy, Buy Anything

-

HONGKONG

97

STOCK EXCHANGE

а

New York, Apr. 13. The United States plagued by

continuing business slump and growing unemployment-found itself in the grip of a major paradox this past week. Members of Congress-with their eyes on the congressional elections next autumn ---- elamoured loudly for deficit spending, tax cuts and other emergency "pump-priming"

measures.

Our Own Correspondant

Business done on the Hong-

konk Stock Exchange

mately $262,000. Noon quota- Hons and the morning's frons-

New York Stock Market Review

By ROBERT G. SHORTAL

New York, Apr. 13.

Stocks gained more than $1,200,000,000 in value this past week, restoring almost half the loss of the previous week.

morning amounted to approxi: The rise was paced by the rails, which improved in four out of the five sessions, and by utilities, which rose in every session. Industrials rose in only two 43sions.

tons were:

Marus

Buyers Helfers

Salon

DC Bank

100707 50

JANKS

FAN..

INSURANCES Untion...

SHIPPING

13.

71

4.13 u.23

pucks, TC. R. Wanel

But business leaders who, on the surface, would

benefit most directly and immediately from Whick such action, warned sternly against the long range inflationary peril of such moves,

President Eisenhower, though confronted at his weekly news conference with a Labour Department report that un employment had increased by 25,690 to 5,108,000 In Murch, sooned to go along with Initer view.

105 109* 20 60303 dent roi 11:20 11 40 2.500 # 11 to LAND, EIC. Ty kuch

la things expose oneself to the charge of tei, 1730 1730 being cold and indifferent 19 the plight of the employed."

al-

П

The rally, which came ngalust

backdrop

conflicting of economic news, inck vigour. Dully

volume average

of leust 2,075,120 shares was the

for any week since late Febru- nry.

Analysts attributed the

Flgre

to "purely technical factors" following the market's recent

LONDON STOCK

MARKET

weakness. The advance scored Weekly roundup:

onded U ninc-

CAUTIOUS

43

100 44.50

300 17.00

3.000 174.

on Tuesday cassion declina,

2,000 GA

by

ID LAR

Humphreys RUBBER Amale.

333 34 35 14:50 14.50

2009 23.30

1.325 146

cer-

Trust XD..

1.10

A. Tawal UTILITIES Iran

1.83

23.00 23.30

on

Star Ferry.

to

$2.50

117 મ

17,40 17.00 400

He said he saw nothing in the cecnomie picture to require

a decision now on whether

cut taxes, and advanced on the quickest solution for the busi- nces slump a voncerted effort by to "buy buy any- consumers

thing."

The unemployment igures

ammuni themselves furnished

an

to the camps af both optimism and pessimism. Al- though the jobless did Increase during March, the increase was the smallest month-to-month riso since the figures begun growing Just Nuvumber,

JUMP

la addition, actual employment jumped to 82.3 million, 2.5 per cent below the year-earlier timal | --which was the highest Musch employment corded.

#gure ever E-

The ecuflict in these two sets of figures, according to Labour Department officials, is explain. ed by the recent increase in the number of pornons luoking for work. The armed forces have been trimmed by 300,000 during the past year, move women and girls are seeking work than in the past.

Sametimes the loss of one job adds three su the list of Johless, .e. the led man's wife and teenage child also suddenly reck work to tide him over.

situation, It is a confusing and indicative of the vast com- plexities involved in any busi- hess or government effort to analyse and rentedy ப majur business downturn.

It this view is correct-it

held the one generally economists-the recession' Lainly has not yet produced the effect they soek. Prices-excel

sune highly overstocked Yurati durables have pot dropped, ¦ ¿." "tight and labour demands have been reduced.

If business were, to pick up even momentury, there is every Indication that the whole In- fintionary cycle of price and wage rises would begin all over again.-United Press.

BOMBAY BULLION MARKET

Bombay, Apr. 12.

The bullion market witnessed buoyant conditions in the wook to April 11 with values recording notable advances.

Undeterred by margin con- siderations, bulls continued to jorCe

silver up

prices, with Ja:- sentiment, enlivened by creased absorption from up- country and a dearth of sup-

lies.

Stock at the end of the period amounted to 360 bars with off- icke 20 bars daily,

The old market reversed its recent does trend and values a revival of buil soared under support and buying by, spol houses.

This

by A spurred broadening demand and, des; pluted supply.

was

Telephone INDUSTRIALS Gement

Traders are caullous pending on the further developments economic front. With Aprit said 2000 to be the crucial month in de- termining where the economy

36

STORES, ETC. Day 17.34 $7.54 1,400 17.40 1,000 17.40 $2.80 41.30 100 11.30

Watson

1. Craw INVESTMENTS H.K. & FE.

Invert...

Sungka

London, Apr. 13,

Markets had a very good week until nows of on approaching railway strike on Friday caused all prices

to tumbla.

The flight out of the market vas kovare, covering both Bri- leading tish Governments and

industrials.

However,

JAPANESE The US Inflation

TEXTILE

FIRMS

GO BROKE

Washington, Apr. 13. American officials said to- day that about 700

Problem

By ROBERT, G. SHORTAL

New York, Apr. 13.

Recession la making the headlines but inflation is

causing the ulcers. Many economists and. businessmen are firmly convinced that Inflation-not deflation-is still

problem facing the United States.

the blġ

Јаромохо textito firms went bankrupt in 1957 and the rate of failures in continuing high in 1958,

nearly all signs point to even-. Roger Blough, Chairman of The textile arms which went tual resumption of the infla- US Steel Corp., in cramenting inftalion on bankrupt were principally small tionary spiral that has marices on the offools of ones, officials said. They added the postwar period. that bankruptcies were not con-

Economists, studying the increased output, economists economic weather vanes, say nole,

Aned to this field as a consider-

Rockefeller, David

able number of other Japprice Chairman of the

businesses

trade Blao falled.

Industry, noted that onenet hearth furnaco that cost ussid Vice million 20 years ago now certa Chase Man- | US$84 million. engaged principally utian Bank.

**] sayo.

may The company was allowed to export neem paradoxical in 21 recover the original cost of th in manufacture for the

atomsphere dominated by mwa furnace through depreciation. The Japanese have elled these of production' culbeeks and The remaining US$54 million bankruptcies 119

but....in evidence of employment. their need to continue to sell in the American market without the Impostun of additional restricijums.

UNREST

Considerable unemployment

and social unrest hom resulted from the bankruptcies in Japan, omelala said, and they fear the resulta f the trend continues,

Moanwhile, Japanese And American officials still have not resumed discussions concerning

the self-imposed quota for Jap- unese textile shipments to US during 1930.

the

longer pull the more poralstent piebloms may centre around how to avoid inflation."

Financier Bernard Baruch told Congress Inst week that "na- flan in the most important fact of cur time, tho greatest per to economic health."

Baruch, Advicor 10 the President, said the recession was a hangovor fem the inflatlorary hinge the country had been en since the end of World War 11.

Mounting fears about loftation

at this time stem basically from the

two underlying factors:

exien-

of

Thero is little prospect

and lasting cut in any real costs at producing goods or furnishing services.

Omelals said they are waiting la tee what action the US Con- gress takes on the general sub- jeet of foreign trade when it Lets upon the administration's

Government anti-recession the request for a five-year The rise in

moves, while having a stimulat- earlier part of the week had slon or the reciprocal trade act.

The Japanese in 1937 Imposed ing effect on the economy, loy been so substantial that Friday's

groundwork for future folls still left net gains for an overall quota of 235 million the

most all sectors. The Finan- square yards on their textile lulation. cial Times index of industrials shipments to the US and want closed

with a net gain of 2.0 to place the same points and the index of British them this year. Governments with cute of 059 polnts.

is headed, the rourket experts 11.50 have adopted a "walt and see" 00 17.03 20.00 20 10 1,500 26.70 Attitude. 1,100 20.1 20.30 20.40 100 20.40 They are waiting to see how the market reacts to Arst quare 20.30 20 70

590 20.50 Fer earnings,

They feel this 100 e 20. will give them d clue to under-

lying strength or weakness,

Many issues were influenced by individual corporate deve-

Governments showed substan- lopments. American Motors, til aina led by a 4 per cent which is having a gond year,

Consuls and Old Coupois 10/-. issue for edustrial was the most active.

Also rdtained the week, it firmed New.con- Iracts, the outlook for stopped modorale gains compared with up defence spending and presa week ago. dietings of another good year helped the aircrafts. Boeing and Chance Vought rese more than 2 cents each.

1550

10 20

1

1.70

The Zurich

Gold Bar

Market

Gains of better than a point appeared in Baltimore & Ohio, Atlantic Coast Line. and

Western Maryland rose morC than o polni cach In the rails, and Missouri-Texas-Kansas pre- ferred jumped 4.

- MERGER Zurich, Apr. 13. During the wook to April 10

bar the gold

rose market Merchant Calculators

al-2% on approval of a merger generally steadiod. though during the last two with Smith Coronn. The good days sales by the Bank of Outlook for the drugs brought gains of more than 2 points in England caused

Artloom some! Pazer and Merck. slight casing.

Demand from the Middle ond Far East was only moderate, but buying Interest from South America was fairly active,

Prices on the gold coin market in quiet were mostly leady dealings.

American Double Eagles rose on increasing demand and to wards the end of the period Vrenells also advanced slightly.

The margin between old and of inflationary "eures" for busi-

new severeigns declined latterly ness recessions, the Guaranty Arrivals were 3,000 and offtake from 1.25 Swiss francs to 0.70 Trust Company of New York, 4,000 lolos-China Mall Special. francs.--China Mail Special,

Commenting on the

dongets

Stocks at the end of the period

to

tolus, amounted

30,000

in its monthly bulletin to

in-

vestors, suid Buch methods" re-

sult in a permanent debasement

of money and "tend to prevent the readjustments that pre needed after booms."

It was only a year ago, with the US and the world worrying about Inflation, that economists wore anying privately that the United States needed a reces slon. Now it has arrived.

READY

much

Politicians have been more ready the business mon And economists to oler Trust ponaceas, and Guaranty

had on explanation for the healtancy of business. lenders.

Weekly US Cotton Goods Market

New York, Apr. 13.

A

leading Wall Street celling on remumist notes that the 1955-30 LX10171 and inflationary spiral shift

tiemmed from the anti-recaton

However, they want to the specifte quotes on separate categories within that the over- all quota and the US have in

broke Jeetest. The discussions down early this year with agreemeal. United Press.

110

English Electric held JAPAN'S WOOL

of 2/6, Rolls Royce one of 176 and quite a few Ausociated Electric and Vickera UCLE them-hold i shilling rises.

ALLOCATION

Washington, Apr. 13.

moves

321

needed to repinco it today musi come out of earnings. But to earn US$5 million, & company must make US$112,500.009 bel fore taxes. Blough says thle is a high cost for just "standing BU."

With the dollar today worth only half as much as in 1930, the average worker. Uita-the average company, must make twice as much as money just to be as well of-United Press.

Japan To Boost

1cken uney, inerpated government spending, and liboral mortgage and consumer credit teimg

"The sparka caught hold and

1034-ecry The

by 1965 a boom was blaasing." nás. Aula production, cos- struction Letivity and epilat

Industry expenditures by

Auto Exports

R

Tokyo, Apr. 13. Japan automobila ́ in- dustry hopes to set milestone by launching a full-scale export of Japan- made vehicles this year.

Moler, car exports to South

Il cost Asia and South American

revched record picpofticus counirles already were in full swing, and the industry was Curing the boomi.

Economists calition that strong going all out to develop other government neliva to reverse overseas markets. tha recession contains inflation O shares benefited from lots

A recent Industry Aurvey dangers. They warn the 'budget

that of professtone? buying this week

auto Japan'a frem

ant showed proposed -buying by those who had sold

The US Agriculture Depart defeit

exports Inst year reported today that recession moves could run any-moblie short. Royal Dutch was an ex-ment

to 15 bolalled 0,502 units, compared ception "B" roze

nearly Japan's semi-annual woot im-where from two billion

with 2,455 in 1950. British Petroleum and Shell 2/- port allocation for the April-billion dollars.

They deine inflation as "log September 1958 period has been and Camdian Eagle 9d.

vet at 95,000 bales.

many dollars chasing too few goods," Or too many people bidding against each other for a limited supply of goods and services.

Oer- in the foreign 1st the mans were completely idle. So were the Japanse non-assenteds:

1910 but the aesented of the rose £1 and that of the 19249 4. The Chinese 1008's lost

but the others were

tin-

changed.

Dollar stocks enjoyed some A Carpet rose 24% on reports

fractional rises but demand for them is falling off: their pre- group was buying into the com-

mium fell from last week's pany,

the On The steels featured

per cent to 4 per cent.

Banks attracted attention last downside, reflepting another cut

forecasts thal week. Midlqed Bunk reachred in output and

its 18-month high this past group. Eastern Corp spurted 7% Directors of that company week though closed on Friday a a merger agreement few shillings lower. Shares of reached with Standard Puckngag, Good-the Hongkong and Shanghal rich was a weak spot in the Bank which opened the week at tyres, losing 24. Addressgrupts their 12-month's low, recovered Du several shillings-United Press, Multigraph dropped 6%.

last 2 points in Pont chemicals,

Ritter rose 3% in the denial supplies. Sunbeam toppled 49%. Lilly-Tulip rose 34 ond IBM added 3. Cleveland Electrie featured utilities with a gain of 2 and Chate-Palmolive tacked on 34, reflecting a good out- look.

the

Of the 1,407 issues traded this i

Singapore Stocks

Singapore, Apr, 14. Brokers today quoted the

past week-the most since the f weak ended Jan. 31-800 ad- following stock prices:

Opening vanced, only 420 declined and Batu Lintang Rubber Co. 178 held unchanged. New highs

Petroleum British Borneo

Byndicate' Consolidated Tin Smeltene

Ord Traser & Neavo Lil Ord...

lows by 113.

The Dow-Jones averages for

were hit by 170 stocks and new

0.74

the week showed Industrials up Frater & Neave The cym in four weeks-rails up 8.52 to

Tafies stel.

L

$1.75 37/-

$3/04

1.05

BLOG 4/00 $1.87% 20/01

$3.40

עם

The 'department, in its weekly review of world crop and mar-

ket conditions, noted that this was 27 per cent less than for the same period last year, -

United Press.

When the money exceeds the

Burma topped the list of car exporia with 989. Venezuela, 298, Okinawa, 508, Formosa, 480 and Thailand, 44.

The Automobile Industrial supply Association said that of the amount of goedstolal exports, ordinary trucke and services available--cars, accounted for 3,955 units last washing machines or domestic year, cempared with 1,472 for help-prices

forced up. 1850.

even It said 18 bures were exe

are

Exchange Rates Higher prices mean higher costs

which To turn

lead to

Business was dane in the local higher prices. Ia this wayported last year, along with 743

unofficial

exchange market morning at the fallowing rates:-

S. dollar per-$11

Australian nates ipar E)) Sterling Bates (per 1)

1s

8.43

ination feeds upon itself.

special type vehicles, 635 small-

trucks, four-whel

14 The gross rations product sized 10. the value of goods and small-sized buses, 25 small-sized

services

from four-wheel special vehicles, 410 produced-TURE Indonesian rupiah (per 100) 10.70 US$233 illon of the Inerezze small-sized passenger cars, 10. Slam leal (per 100)

20.00 (Štralis)

10 stemmed from higher custs, not tractors and 30 trailers, Singapore

NEW YORK COTTON

MARKET REVIEW

By WILLIAM T. PLUNKETT

New York, Apr. 13. Cotton futures drifted irregularly lower in a quiet market this past week while traders awaited some new incentives.

At Friday's close the list | 33,000,000 peres were planted ruled of B to 18 points, or 26 wing horses, mules and much to 80 cents a bale" under the manual labour. Planting this precoding wock.

scar la expected to be between 12,500,000 and 14,000,000 arrez, A number of over-henging depending OT

bank uncertainties injected a note of participation.

caution all around.

Traders awalled the return, et Trade reports from Washing- that somellme Congress next week, when some ton

aucw

In the now

The Astociallon claimed that Japan would be able to boost automobile exports this year to more than 10,000 units,

Japan car manufacturers will establish overaras sales organių sations to help boost exports, t ndod.-United Press.

The Paris Gold Market

Paris, Apr. 12. The gold market reacted midly to the bullish ins fluences of the wack to April 11 and despite the weakness of the stock exchange," tha worsening foreign payments position and the uncertain political outlook in North Africa, it ended the wook wouket on balance.

farm bill The lack of may be proposed, treating etch Improvement in the long-commodity separately, and pro- 60 per cent of depressed textile market, graviding for

The .business - recession die parkly lean on cotton. 0.13% cussions, curbed marke: interest, covernment would guarantee the crop situation. difference between 40 per cont traders said the picture had not of parity and 15 per cent. taken enough shape, particularly This would be a ecmpensatory previously this early in the season, to draw programmo which any conclusions.

had beon turned down by Concern was expressed over Congress and opposed by the in sales of sold by stock ex

Jengthening delay In the Administration, fraders, suid,

crop start,

suggested

new form legislation is expected before June, to be introduced.

$1.82

any

$1.03

Bank Of France

Singapore Cold Slotsze ........ Strata Trading, ............ Strails Steamalip (exalt United Engineers Ord. ........ $1.00" Weetne UfDa,

China Ya

2.50

€1,30

the

Statement

Bank Of England

the new

Statement

Speels.

All basic textile markets experienced another week of inactivity. Users of cotton goods, rayon,

pref 441.24 the first advance silk, wool burlap and other hard fibres

Oanumona (halayo) Limhod a Hongkong

Shanghal operated on a hand-to-mouth basis, taking on

104.05-the sharpest gain in this ***Banking Corp. just what they needed for quick delivery.

average-since the week of Jan, Hongkong ind

Kumpas, Lld 17: and 65 stocks up 1.50 10 Rusia Kampar fin... Cautiousness apparent for! In fact, some weavers said 151.78the sharpest advance in Luna Stubber Estates Ltd. 31.03.

Maloyan Breweries (exily) weeks ineroased in toca of the unless the demand picks up

four weeks.

New Scandals Rubber Co. The utility average now is at |**ila. prolonged stock markel declino, and soon-and buyer became

того realistic Rout prices a new high since Oct. 4, 1930.. Petting Tin Lid, "It may be," the Bank's state-along with the increase in any ment said, "because they sepse employment statistics, and un- they will have no other altema-United Press, that the very ides of qurlar a certainty about taxes and other tive than to cut production

schodules back evon mare, recession reflects a miscanoeprocession-halting proposals ex- tion of the nature

when of recess | pected.

Congrças 10- Greater curtailment this sun- to understand convènes-next week, Jons, failure

and that the reccssion itself is in

manufacturers mor in both print cloth Collon goods reality a

for something", reported constant probing by heavy goods was reported under perious consideration. Mills elso.

big buyers for third and fourth

"at making heavy industrial fabrics quartor deliveries, but

cutback contemplated "Business men recognise, of price too low to merit constic three days a week, while print course, that this is an unpopular ion, Bald. Row cotton cloth makers canaldered a four-

they When sulys folter, when weavers thought. Thus, the day view. Industrial guipul la reduced, airo of users to cover now, and day schedule.

Some industrisi weavers were when workers are inld off, and the equal reluctance of wenvere

one week reported operating when the demand is made that to accept the business.

and shuting down the next. something be done immediately

But behind a bleak current market picture, Industry leaders on the converters and some continuod optimistic readjustment, a necessary cor- top mail-orders. houses, were future. rective processin fact, a cure reported slirring around on. They felt users are gradually Total bills #qquz.

ted NORTHERN 39156,665.950.063 | Private depoels distortions and fourth quarter print cloth needs, awakening to the argument that | Kanx potja in ejr- for Excesses,

aulation PREZES, ALO1.875,328.810 | Fa54d" musicale maladjustments that resulted but me! with rebuffs from pro prices currently are cheap, and

Receipts 638,303,416.371 from the boom and that caused ducers because of the low paipar that" slowances "are expected Cupstal struEE BUİL

offered. the recession.

moomver" uz laler-United Press,

kura

to sure these evils It is a thánk.

less fork to point out that what

is actually going on is a needed

STIRRING

Larger

to

Paris. Apr. 13. The Bank of France lato- ment for the week ended April 10, reads as follows: Total cold haldage

uthor cur tencies Sight balance spreja Advance to Stabillik-

tion Fund

Tranc 201304.202.420

weather, The SEASON

Dealers attributed this partly

change speculators to meet theif Raw colton exports through lossco at this month's settlement because of persistent cool and

totalled 4,128.101 blos calmy April 0

The Government was compared with 3,530,905 balen day on April 22, estimated to be about two weeks shipped in the same period 13st holleved to be glanning to launch. late on average.

year occording to the Now Yaris London, Apr. 13.

now State lach with maturity; However, Thig Bank of England state-

other observers Cottiin Exchange. 11,374,390.759 | 217it for the week ended April pointed out that under present Evening-up operatione in the yields pegged to the price of the 11.771,000,000 9, 'renda as `Kollyw

conditions of highly merepandit Mas delivery will be a migrene kile gold ingot,

Dealers belleved such a loan ed farm, operations, this year's promlñcal trading induce

prices sero | Holes in sirculations .... #000029474 | sanaliseresge can be prepared | the nearby torm,"

Firat notice might depress gold Rubio. Deposit

quickly day wijl - he, April 24, for the through arblirago operations, HERCI planted very

The adf anded this week at Liber ablo weather,

given-short period of favour Mizy delivery. The open position.

--Un)ted Prods.

Sterling.

United Press

ove:

1.

in the pot month at the week 410,000 france after reaching --It is nothing like the old days end was estimated around 149,- | mid-week - peak of 123,000

francs, China. Mail Special growers said, when 40,000,000 to 400 bales.-United Press.