1958-06-05 — Page 9

Page

1

TRANSPORTATION

BUILDING

OF NEW CUNARD

LINER POSTPONED

OWING to its setback in profits last year, the

THE CHINA MAIL, THURSDAY, JUNE 5, 1958.

Dangers Of The Dollar & Franc

Getting

Too Weak

By SYDNEY GAMPELL

Loodon, June 4.

Proximate dangers are that the American and French eco- nomies may become too weak and D-mark too strong. Sterling, the yen and most other currencies sit comfort- ably in the middle.

high again in the autumn

COMMODITY PRICES

FOREIGN EXCHANGE

LONDON-

Closing rates were:

New York

Montreal

Amsterdam

Brustela

Copenhagen Frankfurt Miian

Parks

Blockholm

Others unchanged.

2.01-9/30-2.0L 2.70-2.714

139.4244-130.47% FILSANDMED SA 31.709-23 101i 1745 1740 1170-11791 14.8014-14347

NEW YORK

England 30-y

Closing rates were: Canada

10-days

Drazil

1.03T 2.01-1/16 *.70% ,0000

It is

Others unchanged.—-U,P,1,

far from taken for granted that sterling is going to be so weak

The French franc does not rational outlets somewhere, and Auctuate very much, but only by the general weakness and

In the autum: 05 10 require a Cunard Steam Ship Company has postponed because it is jammed on its door distrust of the dollar. At this

and stage it hardly needs to pre

dieate a higher gold price which higher Bank Rate (there have the building of a new passenger liner for the North

devalua-been autumns, would mean outright Atlantic trade, which would cost about £8 million,

fun of the dollar,

The nor was intended to re- v!co the 27,700

10.15 Britannic, which is now 28 years otil. A berth was reserved a Your ago at

Brown's John Clydebank yard.

In

ANAOUBLEIBEnt, the

year

Chairman said: The Board had plamard to by the new keel The auton of 1858, but wing to the setback in our fincial foultanes Just

which dors not emble us to obtain the roller Investment allowance, the Board has considered it prudent w postpone the reservation at the berth for this new ship." STRONG ATTACK

full

cash

archer

1

spalast the D-mark doubtless calmaging the new strea Dl money to Germany which has now well and truly fel it,

of the dollar re-

Weakness

Shipping Nations Tonlus an adequate buttress

Discuss Recession

measure

to

Overdue Cut

London's tehnically

notably

1053 held nd 1954, m which it quite strong) or that weakness of the trane must mean weak- news of sterling.

New Blitz

European currencies other than

Buk ale got Us overdue cut, which the frane, It may well obviale

was plainly waiting only for the any concerted strengthen sterling's reserves rull wage settlement. Further solve the an International cuts COR reasonably be

pretvd.

and to vert

Gold Price

Such measures mainly

by

proling of reserves but also la cluding a higher gold price--are still the British Governcent's

CHIPPING representatives | liquidity crisis, 19 maritime D. from

Interna- countries at the tional Chamber of Shipping's annual meeting agreed to form a committiee to discuss the general depression in the world shipping industry.

The members

the 01- to be inter, who are

will investigate the appointed, The chairman made a strong

of framing ፍኖ ከነ “ pasibility aflark on the British tax system.setume which crudd be brought Having been denied the means into general use if the present

<

ti make, adequnti: provision for shipping depression worsens. replacement during the years of

The committee undoubtedly stressed, "str

examine nte now frustrated | will

pinty," Je endeavours

'Thr

British

by a lean oeriod, which does not Tannage Stabilisation Scheme even permit us to make full use and also the proposals by New at the increased investment York and London-based Greeks allowance granted in 1957." fur a controlled lay-up of trump shipping. In order to force up

Cunard's decision dramatliestreight Tales te more economie the difficulties through which levels. almost all sections of the ship-

ging industry are passing. The Both these schemes, and any fall of sne 25 per cent in

Cumar's profits Inst year reflect-

others which may be put for

ward in the future, would need

e four masts difficulties. Strikes wide International support in

on the United States Atlantic order to be effective,

seaboard and in British skip re-

Er

of yards, cancellation passenger brukings at the begin- ing of the year due to the fear of war generated by Suez and Hungary, the rise in the cost of of bunkers while the Suez Canal was closed, nod finally the growing United States recursion all thee player their part,

SUGGES ION

of

objective,

ex

wnys

Bank Rate is at The tower anti-recession measure only, to the extent that the world rend han shifted from onli-india- timary

dear money: to anti- recession cheap money.

COTTON

NEW YORK Prices of cotton futures closed today as follows:

Spot: 30,30 July: 36.00 Oct 30.2 De: 3850: Mar: 350: May: 30.70 July: 35.15-36; Oel: 34.07-05

NEW ORLEANS

July Doi.

De÷

May

in the

41.39

43.50

unquoted

43.50

United States.

the

average mice of one-inch cotton at 14 designated spot markets

wag hot available,

Total saks were 7,000 bale-2, ----- U.P.I.

RUBBER

NEW YORK

Res rubber futures today closed five to 28 points lower with sales of 32 contracts. Closing prices:

2015

Nav.

Jan.

Мат

MAY

July

23.07

25.00

24.00

25.50

25,50

28.50

23.5U

SINGAPORE The market opened around the previous levels and Bue- tuated within a very narrow Bimit on quiet market. Futures: No. 1 rubber per b. June 1331-74,

July 13-383%

No. 2 rubber per ib. June 71-73 Na. 3 rubber per B. June 04-632 Prices of cotton fulures closed | No. 4 eutker per in. Jime 61

Rpat rubber Urbaled today as follows:

Spot: 0.10 July: 35.37; Oel: 36.38; De: 34,60: Mar: 30.07: May: 34 01: July: 33.85; Oct: 34.00.

Cattun

LIVERPOOL

future closings, pence per 1b. were as follows: American Contract

As nothing has been done 10 D-mark problem a new blitz is always possible, but Its not at present hended to- The official comment on the

(be chance fbal the last cut is as good as saying Wards Landon and there is al thin! faster and larger bites at French will pull themselves, to-

would have averygether. the cherry technical Justication.

A 5 per cent Bank Itate

as high, part!- eularly when New York's is 1% still regarded Meanwhile, the problem has per vent and when the market

TAIL for New York Treasury. been solving 1 by the con- hnuous 116. gold losses which bills is below 0.75 per cent.

Only a

your go, and when

As that is quite an important now total more than a billion

extent, the suffelent investment dollare (artually $1,042 millon) the main overseas rates were

basis is that capital and credit In the past three months, Includ-much higher than

was describing this

are changing from lenders to ing a new high of $130 million Governor

a crisis borrowers' marketa-always with per cent as in the week to May 21.

the proviso that London's bond

Caiton Buying of gold shares is sum- clently explained by the mass Tank itate is being towered yields-cannot fall much mate

its New because it was too high, and not until Germany's fall a lot more. cruzeiros money of unusable

follows: York that has to try to find just to make room to put it too-China Mati Special,

The

discussed meeting also the United Nations' suggestion that a surcharge should be Im- posed on tonsuge using the Suva Canál to pay for the cost clearing the waterway. The moeting

strenuously opped The outlook for 1958 is much a proposal but agree 11

Is resotulin The

that recession certain.

suggesting exercising an increasing effect, surcharge be puid by expecially on the enrgh section owners using the Canal who of Cunard's activities. In addi-wouki. later be reimbursed by

cannot be guaranteed their respective Governments, Hon 11 that

from 1958 will be free Industrist disputes in docks and shipyards on both sides of the Atiantle, or that

a

ship-

Sir Colin Anderson, chairman International Chamber, of the It will not said: "We think it is mansitous. a matter of convenience produce a "war scare" to rack beat as

with that generated by. Sater We are prepared

l act as

und flungary, sufficient to deter | Clovernment agents, and pay the large numbers of American surcharge provided our Govern-

ments reimburse us." tourists from visiting Europe,

SERIOUS PROBLEM

The meeting was unable to reconelle opposing plats" of Nevertheless, in the fong run view on the question of tax-free Cumar faces a serious problesnags of convenience." On one in replacing and fereasing the side were American shipowning Atlantic interests who defended the enpacity of its Noell passenger Aret. Il counot be at registration of tonnage vader

Panama flags as all happy about living to post-such pone the building of even 942 | Liberia, and on the other were shipowneg Traditiona line in this Beet. The numbers such

threat to their

uf industries "tax- and at the height of maritime

demand tends to free" competition.

Some of the

of Americans anxious to spend nations, as Norway and Britain. their holidays in Europe are stressing the growing.

ilik

Season

exceed capneity.

ground lost at the beginning of last year might well have been

later on had recovered

iner tonnage

more

been available GIANT AIR WAYS

Sogher or later the "Queen"

twu OVER AMERICA

will have to be replaced, Behind 3ds, there are main problems. First, there is the deulty which all shipping concerts ind in accumulating the capital needed to Bnanee ex- pansien so long as deprecation

TUE

Washington. Civil Aeronautics Board has created three

same ly rate,

now.

the

HONGKONG ANTI-RECESSION SCHEMES

STOCK EXCHANGE

Our Own Correspondent Dushness

done on the long- kung Stock Exchange

thin morning amounted to appro- ximately $21,000. Noon quota- laus and the morning's trans- actions were:

BANKS

Myers Kelters

HK Bank 70211⁄2 70712 INSURANCESC

Unto

71

Lumbard XD

*

SHIPPING

Waterbent 18.00 Asa Nay.. Wheelocks

DOCKS, ETC.

K. Whate Dork

Provident..

LAND, ETC.

sales.

000276 0.13 0.20 3.5425 0.15

105

11.09 12

SEND TRICKLE OF MONEY INTO US ECONOMY

By MERRIMAN SMITH

Washington, June 4.

A flood of multi-billion dollar anti-recession spend- ing schemes is now beginning to send a trickle of extra Federal spending into America's economy.

the

Budget Bureau officials es-rated and reducing reserve re- timate that total Federal out- quirements of member banks. lays during the fiscal year end- Tels opens up financing of in- Log: June 30 will be about one creased activity.

77

and Russia's recession 572,- hillion dollars over the

forced bave 800,000,000 originally budgetcu. Sputniks 4,050 0.15

Most of this increase is coming Defence Department, America's biggest spender, to reverse the in the current half-year,

instituted by How much effect it has had economy drive or checking the recession and former making jobs is anybody's guess. Wilson. Defence will spend $30 billion In the current fiscal year

200 1 $1.00 1,000 11.90

33,000 32.75

HK lute! 0 60 20.70 IR Lnd 24 Humphreya iteatly...

RUBPER

Ami.

Trun

Sungala

A Tawah... 1.826

UTILITIES

15.30 1.00

1,000 UP 15.40

Small Scale

+

.

1.65 18,000 1.05

1,000 1,03

1.10

3,000 or 1.40

1.50 1.325

1.73

Triti...

tertal Measured nguinst A

of rate national production about $420 billion, it is small-

than scale priming rather massive injection of 500 250 ment dollars, 26.50 25.50

Peak Trom

100 D 9015 001 Yumatt

egat.. 17 17.00

123 DU

With a view 500 of 17.00 200 17.00 mitments, the

Electric... 2700 27 7D

Telephone

is calculated on historical rather greal highways in the sky INDUSTRIALS than replacement cost. Second, there is the question of campet across the United States in tion from air transport. Here an effort to lessen the dan-

the decisive factor is likely toger of aircraft collisions. be one of costs. Canard inces

Secretary

Charles

E

-a billion more than Wilson planned

Depressed

Areas

Obligations for major procure. ment are being made at a faster Govern- pace than during the last half of last year. This was planned recession, Defence fatter before the 500 $5.00 Bigger spending,

economists now estimate these 2x320 Federal budgets and more de-

40 23.50

ficits are guaranteed for next obligations will total about $700

million more. year,

Some of this spending is being to those com- Eisenhower ad- almed at "Depressed areas," but 1,000 1700 ministration Is trying to apply the $15,300,000,000 originally planned will not actually be

100 of 17.00 the brakes to congressional and 1.150 17.20 1,000 or 1750 publie pressure for big job-spent for months or years.

2002700 making public works projects. 100 7.00

What's Done 2001.6G

100 21.00

projects. 20.90

Cement 23.00

Ainoy Can 37% STORES, ETC. Dairy......

the cholee of trying to concen- From June 15, all fights be- frate on the "mass market" in tween 17,000 and 22,000 feet in which the airlines me showing three clearly defined corridors Wale increasing interest, or of slick-will be entirely controlled from ing to the micre exclusive rec-the ground

the whatever

tion of the traffic. It is put on weather. (Some of the major collisions in the past year have easy decision to make.

been in erfect visibility).

Djakarta To Get

10 Ships From Japan

GROUND CONTROL ..

Both civil and milltary planes

new cor

will be guided by the ground control over the

and

1. Craw COTTONS Tele

ani INVESTMENTS Yangtze

Allied

1,000 $17

400 27.60 President Elsenhower said two B004 2030 weeks ago, "I am determined 1,000 37 not to get bogged down in a G00 27.10 slow-starting, emergency public 1,400 27.10 works programme which would 1002720 provide a miniraum of jabs and The 1,000 27.10

a maximum of budgetary. 2,230 27 Federal Government has alrendy 500 6 22.00 dung much to stimulate recovery 500 22.30 of the national economy through 02230 direct action and as a result of Its current operations,"

17 17.10 3.000 / 17

10.00 10.79 1720

111

4,83 8:40

516 4.00 4.70

Here's what has been done Ab

19-BU

cll

June

2.1 nạn.

kilogram

per follows:

No. 1 rubber No. rubber Nu. 3 rubber No. 1 crepe

1.00 nom.

3,31 nom.

-U. P. 1.

LỜI nom.

SUGAR

New York, June 4. World No. 4 sugor futurea eleed today four to five points lower on sales of $10 contracts. Domestic No. 8 sugar futures closed today unchanged to of sales totalling three points on 19 late.

July 139; Sept: 3.41: Del: 3.41; Mar: 3.37: May: 3.37: July: 3.37: trente per to. Lou Cuba): 343, Ben interest. 1.000 contracts.

July: 5.10 Sept: 5.77; Nov: 9.79; Mar: 8.50; Spot feente per ib. cit

NY ex-duty): 1.70.

Open Interest: 2,383 contracts.d U.FI.

METALS

NEW YORK

M.136

24.39

03421b $3,300

Blanket crepe ...

No.

pale creve

DO-215

LONDON

Prices of metal futures closed today in cents per lb. as follows: Lead July

10,305 1/ 24 Sept Zinc July

5.37b

Sept

1.45b

in

July/Aug.

95.13

Oct/Nav

1.93

The rubber market was steady Copper July with spot quoted at 22 3/18 pence per 16. Prices No. :

સનમ.

Tin

July

Srpi

22-224

LONDON

Dec/Jan.

Mar/Apr.

20.00

May/June

20.30

Ocl/Dec. ...

2212

Mixed Contract

General marketa, cif basik, pori:

July/Aug.

MAN

Juno

214-12

follows:

Del/Nov.

23.07

July

2134-2136

AURI

21-221

Tin spot

Dec/Jari.

3-month

Estate crepe

Mar/Apr.

27.16

the July

2014

Copper spot

May/Juze

3-mont!

thick July

SAO PAULO

future

por

closings,

In

Kilo

were

BRIGHTER

TONE IN

LONDON

London, June 4.

60

The tone was brighter on

the London Stock Ex- change today but business:

Bellement haver

July to April, June all 2236-22 July/Sept.

Prices of metal futures closed-

loday in sterling per long ton as

AMSTERDAM

The rubbor market was very

quiet,

Prices closed in guilders

Lead in ball Jun

3cpl

Zine it helf June

Buyez Bellers

73045

733

131

153 154

1859 10315

71 719

WALL STREET

WELL SUSTAINED

New York, June 4.

Strength in oils and individual issues in the rail- road chemicals, tobacco, and aircraft indus- trials helped sustain the stock market today. Profi-taking developed here | Ingersoll-Rend

Interchemical Corp. ... remained small und selee-and there throughout the list but nand Steel Co.

it was

fairly well absorbed int'l Bules Machines tive,

with only a moderute list show-Int'l Harverler.... Zatemational Nickel International Poder ing declines.

Isti Tel & Del On the the atmosphere was brighter

whole the market John-Maryville Co. Despite the dock and bus strikes

Kennecott Cupper because of a good sesalon in held around its best levels of Kana C. Power & Light Wall Street overnight and the year with gains in specia! Let Meyers Tob. Co yesterday's publication of the issues ranging to more higher gold and dollar re- serves.

two points.

Specials

than

Locktes Airceatt

Loews 10 PU.

Lane Star Cemera Ca

Lowenstein & Serm.

McDonell Aircraft (An.

Stock Exge.} Although the gilt-edged market

Spezial strength was noted Membi Iron Corp. was quieter the recent gains

Minnesota Ming and undated performers in diese included Marloes Development in long dated Blocks were fully maintained, Rastman Kodak, Piper Airerattonanto Chemical Co.

Motorola Ing. while occasional gains were and Wheeling Steel. Aleng list Montgomery Word

two to more National Brull Co. scored in medium and chott ut special roso

than three points. Hail Printing National Cash Reg. dated stocks.

developed strength and activity National Dairy Prod. nearing closing time.

FEATURELESS

Of a total 1,188 issues traded, 401 were higher, with 113 at new high for the year: 470

Foreign bonds were featureless. Dollar stocks were marked up lower with 4 touching new lows. New York Stock Exchange fractionally. There were good band volume was $0,130,000. spols in oils. Shell Transport

at 149/- was 2 shillings up

Nuw York Stock Exchange and British Petroleum gained volume was 2,090.000 shares.

3/ on the day at 103/7 34- Once again there was no decided The Interior,

Army

trend in the industrial market which was characterised by Agriculture Departments have

the asked for

Individual features but an additional $186

general undertone was firm million to speed wafer resources

and gains predominated at the close.-U.P.I. Congress passed a $1,800,000,- 000 bill to encourage housing construction by increasing avail-

of luart funtis

and ability reducing down payments re- The housing in quirements. dustry is bustling just short of aboom.U.P.I.

30017 tar, by the athministration, by Exchange Rates

Hearings

National Lend National Steel Corp. New York Central

Maliki

Otis Eevators

Owen-inipots Glam Oxford Paper Ci Part American Airways Pacific Gas Fire. Puremount Pictures Parke Davis Co. Tenny J. C. Co. Penn. Salt Ca

|Piulio Morria man Procter & Gamble Co.

Amerlean Stock Exchange pisburgh Plate Gla

valuine way $20,000 shares.

Dow-Jones closing

were:

30 industrials

20 TAIS

uitles

6 xlocks

10 boniz

Cutam.

Publicker Industries Puro Out******

averages Radio Corporation

Republic 196 Reynolda Metal Svar, Roebuck & Co 400.88 Snel oti Co. 119.98 Saint Beg. Paper

78.41 | Binotale Ott

161.81 Socony, Mobil Oil

00.BB Solar "Aircraft.......

future price index 137.00) South Puerto Rico Bugar

Closing Prices

Allen Inc. Acy. Allled Millim 200. Am. Brake, Anat Washington, June 4

American Airlie Cable Yesterday's meeting of the American

Corp. United States Tatin Commission

American Cyanunki opening public hearings ol

Amer. Forga. Power Abres and As, selectile Business was done la the local impurls of textile

Am Mach, & Tary 000 17.10.the Democrat-controlled Con-

exing rath

this textile products deult entirely

Ziel. gress and by the Federal Reunomical

ingal i

with textiles and the language Artstrei B.TA serve Board:

US dollar iper (1) est

10r detailing such imports in sche-Aliss Cons. Mining The Federal Reserve System Bletting notes (per

124 cule three of the Commission's Baldwin-Lima-Han more Austrailan notes (per £1) has sought to releusC

rupiah (per 100h 4.01

Denguet Comm. 2005 proposed import classifications. Bendix Aviation Corp money Into America's economle Inconuments

1.00 China Moli Special. Singapore (Birutta) veins by lowering its discount on teal (per 100)

1

market

France Is Quickly Going Broke

Hoeling Airplane Borden (e) Co..... Burroughs Add Machine Campbell Soup Co.... CAL J. I.) Ca.

Gal Tractor

Celanese Corp. (xd)

C. 1. T. Financial Corp. Chase Manhat. Dank Glett Peabody Colgate-Palmolive Co. Colombian Carbon Co. stries Commercial Crea

Cammenweath led Industrial Continental Oil of Del

Compounding the trouble is A wave of serious

cripple the reluctance to pay could

boom which i turn might face Crown Zellerech

Diamond Alkali Diamond Match Co, One of its political parties, the France, with is first prospect of

Dougth Ajet rett Puujalists, was founded on the unemployment in 13 years.

Dow Chemicals. ing taxes loried or small bust- nesmen and artisans.

Djakarta, June 4,

ridors which will each be 40

to adulton, France is $400 Pario, June 4. INDONESIA has agreed tulles wide. Ito buy ten shipa, from

clearing | taxes, Aircraft will be separated by EVERYBODY is worlding in milion in debt to the European the French was announced [at] least 1,000

France but the country is Payments Union, -foot vertically

house for exchanges among Japan, it

Western European nations, here tonight.

10 minutes flying time quickly going broke. Contracts for two of the vea horizontally. sels have already been signed and they are expected to arrive in Indonesia soon, the Shipping Ministry salt.

Conditions for the purchase of the other clght have been agreed upon and their delivery is expected duringust.

The expensive Algerian war, costing France nearly ve mil

loo dollars a day, is one cause (of the Arvincial crisis,

of Another

Radio

De Gaulle'd Finance Minister. Easier Airline Like French polities, French

E PA National tias Premier Antoine.Finey Famby Finance Comp. The measure follows two air inances do not quite teen to

France has had full employ- former collisions in the last five weeks make sense to outsiders.

ment since the beginning of this at the Conservative (indepen Firestone Tyre & Rubber between muiltary jets and com-

year but wages inve.ñol kept dent) Party, ta an old hund at Ford Motor

up the Country's General Motors

Glen, Pub. V But General Charles de Gaulle

ip with prices. Because of the doutoring sherekat sirllneta whit took 49 jives, and reports of several must act quickly, if he is to

In the lack of raw Algerian war and the export-financed. Although neither he am. Tyre & Rubber the koop.

sation recent near misses,

out

Do Chulle hus dutlined diety Of__...... bankruptcy.

materials in France. The coun- umpert istibalastes, too inuch nor The country's Treasury istry has to import so many raw money is leaving the country. Inancial measures yet, it seems un

The cost of living jumped 15 Ilkely they will inelide many of podyear Tate

mene belt-ghiêning mosi direnen Alicten almost empty gulas less than six materials for its booming in

forge previously Herdon Newport Corp. months after receding a whop dustrial production that its me per cent last your and now the

Homesteks Mining Co. $055 million from › ità porta do not make up the loss labour unions are Déginting to mures in

thump for matching wage hiker, U. P. I. Western allies.

of foreign exclɩango.

The controlled routes will. Shipping Minister, Commodore roughly connect L Angeles Mohammed Natir, is leaving for San Francisco in the west and Tokyo today to complete the New York-Washington in the arrangement-Trance-Frede

cast-China Mail" "Special.

Southern Co. (The) ...... Bouthern National Gas Southern Raliway (Com.) Standard Brandis pygar

10) Standard Oil of Ca 3 Standard Of of N.J.

Bleep Rock (Turonto Exge.) 100% Burling Drug Co.

Blockely-Van Campi 4 Bludebaker Packard Corp.

Bunshine Mining 139%) Bwin sa Co.

50,1

Texas Co.

Texires Inc.

Tille Wafer Assh, ON 50% Time Inc.

Twentieth Century Fox Film

19 Union Carbide

Union Oil of Cal

Union Facile Hallway

421 United Atrerat

65

331

101

United das Corp.

U.K. Toll "3"

B. Line Co.

{.8. Rabber 17.8. Benelling 14kuš, Bel

51 Warner Bros. 41) Weringhouse Electric

Weilern Union Tet, Co. Stik West Va, Pulp & Paper

Woolworth

Concessions

Detroit, Juno 4.

The United Auto Workers" Union is letting it be known

I that it is a far more willing to

make conccasiona

its contract tega demahud now thais it will “bo if

negotiations go on until late Midsummer or early autumn, ac- bling to trade sources and 131 | published reporte-Chinn - Biall

Special