+
SCIENCE AND ENGINEERING
Geothermal Power
TEW Zealand's
NE
geothermal
Wairakel, will transmit the HIGH-PERFORMANCE
first power this September
from the famous hot-springs
of
A
THE CHINA MAIL,
MONDAY, AUGUST 18, 1958.
Weekly Report On American Economy
Price Increases Expected
Inflation Country's
Major Problem Now
New York, Aug. 17.
new round of price increases on most durable goods appeared certain today as inflation rather than recession remained the major problem of the American economy.
pro-
HONGKONG Tighter Money
Sentiment
STOCK EXCHANGE
Our Own Correspondent Business done on the Hong- kong Exchange. this morning amounted to approximately $137,600, Noon quotations and morning's transactions were;
A Wall Street Journal poil off Every sector of the economy in buy a new lathe, but that same representative businessmen eculributed to the July Jump model then cost $35,000, and the showed that most manufacturers Commudity-producing industries, Co., due to technical progress, intend to ruise prices, Two including Lawening, mining, con acoded a $87.000 lathe to Chicago appliance makers said struction and manufacturing.erty replace the old one. To they have definitely decided to naded 500-million to their pay-rabe the added $54,000, the com. raise prices;
needed a profil before
• Cleveland tool rolls at annup rates, reflecting i pany makter said his prices would go increased employment and longer taxes of $112,000, and that prolit COVT. LOANS
I could be accrued only by sales of } 300%% (1948) | $1,250,000.
Loss Resistance
up within six months; a maker haters. of automotive products said he too would pass along to the con- No sumer the recent steel hike. Army announcement has been
With more money in the hands made un prices of 1959 model of consumers, there probably cars, but all observers expert them to be slightly higher than
the 1950's.
Sald Henry Hazliit, respected nancial writer for Newsweek Magazine:
is more
Shates Buyers Sellers Bales
BANKS
Union...
"Inflation will continue so long.. as Federal spending and fiscal
Sligh East Mela pollues force inflation," said. **Inflation miso will INSURANCES will be less resistance to the lien-
continue
Federal SPPING so long pending higher prices, and thusaw permits unions to
exercise less resistance to inflation.
and holst wages re- monopoly
productivity gulasly beyond gains."
the
Wheelock
DOCKS, ETC. Dock ...... Provident
LAND, ETC.
101 Fute! HUIC Land Humphrey RUBBER Amaig Trust....
A. Tawah.. Sungla UTILITIES
Trom
Star Ferry
XD
ཱ དྷཱུ སྐའ ་ ཚོ
35 15000 »
775
زالة
R 03
12
$4000 34
2177215 3772!*
On Wall Street
New York, Aug. 17. The stock market advanced in three out of five sessions this past week but still ended the week lower as each decline exceeded four points in the industrial average,
of this
The top development shaping market recovered most market sentiment this past week loss en Wednesday and Thurs- was the trend toward tighter day. It fell back again on Pri- money. On Thursday the Federal day.
Reserve reversed its easy money A good sign this past week was policy and approved a discount the fact the volume declined on increase in the San Francisco the contractions and increased on the advances. This indicated that
ara
oga in
The Fed action, coupled with the market in not under heavy last week's rise, in margin re-prezstre, quirements und steady rise in Individual losacs in the list interest rates on short-term ran past four points in Kennecati, ond loans, confirmed that the reces-which cut its dividend,
is over and that inflation American Shipbuilding General which become economic Precision Equipment, Enemy Number One.
omitted its dividend. Lase of three points or more were fairly A Warning
included and numerous Wall Street analysis inter- Amerada, Corning Glass, Dow preted the lightening money Chemical, Pilzer, National Lead, market as a warning to all to New Mont Mining, Sunbeam and curb moves, Injected a suber note United Aircraft, Into the market.
15 150
yire?
has
1325 1.674 3000 a 105
20.30
1.00 6721573 450 2.10 10000 1.95 100+ 3.30
Younell
100 / 90
C. Light
$7.40 11 00
fade-out of
#11 of the
and war,
world re-
0
27.40 27.78
9 0.40 25.70
200 v 17.00 400 i 17.54 3:00 ~ [7.4K) 300
27.TO
Jef
Business Week Magazine in a leat editorial demanded new governoient controls over infla
President Elsenhower'a speech 1:2). Sail the magazine:
Nations before
United "The signs are becoming un- mistakable that the recent rise
"With the bottom of the General Assembly special meet- in the stock market
effect ob American reflection of the belier in further recession scant two months being on the Mid-East had no ap-
hind it. the U.S. suddenly finds préciable inflation (. .
4 Purther itself facing the threat of re business. The easing of tension shrinkage in the dollar) than a
newed inflation. The threat is sil in Lebanon occurred well before reflection of business recovery." the more
because it the speech and had contributed serious
when the to elines at a time
asuregthening of general
With and idle manpower....we can apparent Hazlitt notes that net profs not expect to cure it by applying | pissibility after taxes of 809 corporations in the class'e method of clamping generally favourable De Brst half of this year down on the money supply--to ception of Eisenhower's sugges-
under deal with eent 30 per
this new inflation tions for meeting the Mid-East Cent
New
STORES, wal of 1958, that threat, the country must have crisis, the
despite pour Dairy Armed Bule industry suffered something broader and more market
thin a system of in-earnings reports. 50 pr. vois drop in profits and effective raads
a $1 per cent drop. direct monetary devices. Despite this, the Dow-Jones in recognising this fact, the US. is! stock behind the rest of the world, not custrial average of the marker stood at 500 at yester- day's close, compared to 420 last
30 Per Cent Under country has both die capacity economic conditions.
unique
project at
the istand. It is
In
of chain
on the Island's thermal re-
INDUSTRIAL GLASS
A
www the firs: The
the forerunner
generating stations
North
alon about 150 miles long and 30 miles, wide.
The underground steam and
water--which appears on the surface
#hot-springa",
売圖
will generate 70,000 kilo. watts, coming through bores located in an area less than two
There miles square.
13 ether kimitar are about areas considered worthy investigation In the region.
The power generation poten
tin of geothermal sicam mây be as high as
million watts the entire present yeneration of the Dominion.
one
At Wairakel the pipalincs have been laid up to two miles to
the the power. houza,
been have genecitare installed, and substation gear and a pumping station erectad
of
€,500
to
The first generator
Allowatt would be switched Into the North Island grid in September, and by autumn 1959 the tola! generation will be 70,000 kilowatts. Богоя Itave gone down
3,000 feet, where tempera. tires are recorded as high an 230 degrees Centigra te. Maintenance will be higher than hydro-electric stations, but cost of a unit would be thus 1/3 for hydro- electricity: 2/8th of a penny for geothermal electricity.
A village of 60 homes is boing constructed nearby to house a permanent staff which will maintain the station.
Top photo shows the five 20- Inch Insulated mains carry- Ing the steam to the 75-foot 200-foot powerhouse. High
shows steam Lower photo billowing into the sky from the main Contral Press
Photo.
GYROSCOPES WITH
NO GIMBALS
to
NEW gloss for use in is said Industry which have on exceptionally high resistance to thermal shock and corrosion by in- dustrial chemicals has been developed.
03. 22.
"If there is fear of further de- preciation of the dollar, the
resis blane
squarely Hald Washington,
Hazlitt,
The ass, which has been de- veloped primarily for use in fining steet equipment used in the chemical" cingineering and atomis energy industries, is said. Federal Reserve authorities
by the scientists responsible for developing it to have a 30 per cent grenter resistance tr thermal or heat, shock thau glasses of the same type pre- yiously developed by the con- pany
Experiments
with vesels
over-
shead of it,"
121
Government Blamed up
new
Electric Macao E Telephone INDUSTRIALS
York stock Amay call ETC.
وال
...
10.00
13.80
400
315
4.30
Watron Most heartening of the general L. Craw XD
Nanyasig eccnic signs this week was the COTTONS report by the Journal of Com- INVESTM merce that there is a pick- Vangtare
goods ja-illed capital
expansion vestment plant
machinery. A huge The Guaranty Trust Company and of New York, in its August programme of capital invest- the the bedrock of blames the Government was survey,
agree that there can be no really tonis's full employment policy recent boom, and most experts for eausing some inflation.
Am recovery in business tempo until once again there is steady activity of capital investment on the part of large corporations.
Inflation already has hit big business, says Charles Sligh, Jr, executive Vice-President of the National Association of Manu- is causing facturers. Inflation
proikts
Investment
"Here and there, companies are the shelf projects king off which were put aside a year ago." sald the Journal of Com- ...This revival of
....made an extravagan response to a mild recession....* Contributing to the inftalion ory swell is the continued rise in The incone. U.S. personal Bureau of Labour Stantle an- nounced today that personal in what he calls "host come in July set an all-time proflis which show on the books Ied with the new glass are
record of 354.5 billion, compared and are taxed by the Govern
uses said to have shown that tem
to the previous high of 352.1 in ment, but can't be put to perature differences between the
August of 1957. This did not in-normal for profits.
merce. He cites as an example the re- verrel and the charge contained
clude the lung sum retroactive hit c be of the order of 260
Federal pay mise distributed in placement cost for a lathe for Interest in capital investments when a
not likely to result in large degrees Fahrenheit
July but including payments Thompson Products Company of de- vessel temperature of 250
this Cleveland. The original lathe early gains in construction Most from last January. Had
kave 150 maintained, or Arees F. la degrees F. wher vessel tem-gured in, the July personal cost $12,000 in 1942 and was decompanies
incone amounted to 358.9 billion preciated over 14 years. In 1956 enough brick and
the company then had $13,000 place. But they are giving closer at annual rates.
and more urgent study to spend. ing for new machinery to cut costs. In the second quarter of 1030 new bookings with capital goods producers should be 13 per
perature of 450 degrees F. 1s maintained. These new figures previous figures compare with of 200 degrees Fahrenbelt 115 degrees Fahrenheit.
The glass is also
and
sald to be
casier to work and to have ex- senting
ceptionally * ♠ ♠
properties for this type of glass.
Ceramic-Plastic
Has Several Uses
RECENT experiments have
shown,
it is claimed, that a new plastic covering for steel parts such as bolts withstanding is capable of tomperature of up to 1,600
Fahrenheit degrees
for periods of up to 24 hours,
Good Performance On
London Markets
London, Aug. 17.
поте
than .enortar in
Trading this past week centred
in the lower-priced stocks which
100 23.70 some brokers sald was
# 102
Hardest Hit
Among the fending
groups,
jost more than Ave
o sign after a prolonged rise. ails were one of the hardest hit, They said there has beet an i- Riebfield
was named in a ercise in speculative trading points. It 17.40 1742 1000 417.40 which apparently hod
some the government sult accusing 437417.40
400 oll producers with sinking a 11 200 10.90 Federal Reserve concerned.
California. 1300 10.90 |
A number of вост earnings Navy shipyard in reports and some dividend cuts Kerr-McGee and Gulf Oil each fasi 3. Amerada fell three und omissions also contributed to the market's decline, as did and Royal Dutch more than two,
weekly The
Dow-Jonca some old-fashioned profit-takkg. Buttlah factors included Presi-verages showed industrials off dent Elsenhower's uppeal for 4.00 points to 500.13; rails off 9.30 10 peace in the Middle East, the lo 130.32; utilities off 0.84 successful voyages of two atomic 78,57, and 65 stocks off 2.10 10 sutunarince under the polar ico 173.63. cap, rises in industrial produc- tion and personal income, and the proposed firing of a moon rocket on Sunday,
Exchange Rates
Business was done in the Jural
exctinte Market thi unasteta? morning at the following rates:
5.111 U.S. dollar (per $1) ........
16.00 12.57 sterilns wotch her £....
Australian notes (per £1)... Indonesian rupiah ipet 100).. Stam Ucal (per 100) Singapore Straits)
......
According to the averages, the market closed at its low for the week.
Trading filled to match last the week work's
puce,
Dally average
slipped
to 2,024,200
The market henn by rising to new highs for the volume 20.50 year, Front-taking sent it down shares from 3,704,624 shares the
on Tuesday, but the week before,--UPL 1.00 sharply
COTTON FUTURES
SEE-SAW
IN NY
New York, Aug. 17.
cent higher than in the corres Cotton futures turned alternatively steady and weak this past
Ponding period this year."
д
The Federal Reserve Bank of Chicago, in its August review of business conditions, noted general upswing in the economy, and the business and economic review published by the First that the average American
The stock markets put up a good performance this National Bank of Chicago noted
now carns $83.10 per
past week, helped chiefly by the growing ex-family pectation of a further easing in credit restric- | week.-U.F.I. tions, accompanied by a cut in the bank rate from five to 41⁄2 per cent.
stores 1:ues were The bank rate cut on Thus, eel anul
wanted. The official dollar pre- day was fully anticipated when
week
opened, following mium dropped 2 per cent to last week's fall in the Treasury 21 per ceni. The material, which consists bill rate below 37 per cent, 115
plications apart from the еп- Closure of metal parts.
SERIES of different
Thus in some applications It A
types of
used, its developers gyroscopes can be without gimbals which aro claim, as a substitute for mica currently being developed The compound is said to retain
both its mechanical
of 1,600
for use in guided missiles, and physical strength at tem- are also expected to find a
degrees
properties
perature
Very Marked
As was expected, there
Thare has been a wide range
Stocks
the
last
Singapore Market
Singapore, Aug. 18. Brokers today quoted the fol- 1
week, the changes coming in quick succession as traders
for new legislation before Congress adjourns.
HK EXCHANGE BANK
AGREED MERCHANT RATES
MINIMUM DUYING:
17: 29/33 7.T.
MAXIMUM BELLING:
Sterling
1/2 13/18
1/2 15/10
Co.
Opening
#1.72 Stertag at & South
Africa & Aden)
1/2 13/16
471
Well Indles.
Sterling (West Africa, South
Americs & Fi
1/2 13/10
Rupeer-(inglaj
1 1/4
ceramic and plastle com- lowest level for more than a of good rises in the industrial
and the demand pound, can be used also, it is year. Consequently, the markets marko! élalined, for A number of op- opened on Monday in a vein of week raised the Financial Times lowing stock prices:
a new 1958 Batu Lintang nåbber ordinary Index to buuyant optimism.
above Ltd. peak, soine 18 per cent
Petroleum Borneo its low in February,, Industrial British
Byndicate we also helped by Consolidated Th equities
3meters Ord. was the switch to them in the latter
Fraser & Neave Ltd ard.
$2.05 not a very marked response to purt of the week, following the
Free & Neave 7 cuni.
$1.05 the announcement of the lower setback in sterling
pret carrying
Gammons (Malaya) Ltd. .. $1.50 bank rate for both gilt-edged and Industrial equities, but high interest rate of six
Hongkong & Shanghal Bank-
$413 ́ existing levels were well main-cent have been in brisk
süd Hongkong Tin Lid. mand. Bank and hire-purchase Kunnas Li.
$2.521 Dealings on the first day shares went strong as a result the of the recent activity in sharo the week at 11,818 were highest for over a year and the deals by the banks. gentral love of values is now at a new 1950 peak with War Loan reaching 08 11/16.
the government Amongst
01 Industrials Essties amongst the long-dated securities, Tokyo. have attracted particular atten-wock has been the announce Labenn and the mot In
by Quest, elsewhere YOUNG Manchuriantion, and
interest group there has Netlefolds the great atcel and technician has invented Axed
been a strong demand for high engineering products fi-09
number of norol applications Fahrenheit,
in industry, especially in the
field of automation and con-
trof.
One such systen which
L
Silent Pneumatic
now nearing the stage of prace Riveter Invented
USA
tical application depends on the
three, or
mounted on gyroscope bearings, ench
01 me emits simals to the control sys- tem.
MISSILES
ม
more, ixed which
A
tained.
With Confirmed Without Letter of Credit Letter of Credit
ני/ן
1/3 1/18 1/3 1/8 3/3 3/16
1/2 31/32 Ont
1 1/32 39 day
1/3 3/32 80 days
1/3 3/10 days
1/3 9/32 120 days licct Sterling On Demand Bills Un Europe and higher than Teudun Rate).
131 9. under L/Credit 173 3/32 OD. without L/Credi 932 up every 30 days
1/3 9/32 O.D. it umulor L/Credit 1/3 11/12 0.D. Without L/Credit
3/33 up every 30 days
33 3/10 O.D.
£3 5/4 7 & 20 sayı 24 1/10 00 days” S4 1/2
90 y
DILLA ON ADEN: If under L/C
higher: Whout L/C, igher.
now
per
de-
ing Corp.
af
Kuala Kampar Tis........ Luna Xubber Katoto Lid. 14alayan Browaries..... New Serandah Rubber
**Sect 50.00 $2.70
$2.55 #1.5755
Rapers-(Persian Ost Part)
Rupee(Ceylon)
RI 7/
63 1/10 O.D.
$3.59 $0.00
Major Influences
Petaling Ting Ltd. - Radles Hotel
Singapore Cold Storage
$1.38 One of the major influences
a silent pneumatic riveter, coupon loans and debenturce, direc-for-ten shares issuo ac-
Alralte Trot
Strait Steinslip United Engineers Ord. Wearne Bros. ....
okdiv; xall
Special.
/19 her than the rats for
Bilin on Adot.
7/0
T.T.
33 1/2 1 & 30 days
sa 29/18 60 days
30 days
31710
TT.
B2 1/4 O.D.
83 11/16 30 days
$0.69
Rupees (Pakistan)
02 1/8
10.01
$3.20 1
China
Mati
Kyata={Barma; tiangoon) 82 1/4
13
Quieter Period.
61 1/0 60 daya
TT.
83 3/10 O.D.
83 3/17 & 30 days
04 1/10 00 daya
B4 1/200 days
33 12 TT. 53 9/10, O.D. 53 770 3 days 31/0 00 day 171.2 85. 17 Wid 17 / 30
30 days 17 11/18 00 days 17 3/4 0 10 773 ENCI 10 1/10 OD 1/8 3/16 T.T 1/8 15/10.1.
Malayan Dollars
13
U.S. DollarE
(First colder month free of penalty thre after 1/16 down for each calender mouth).
17/14
10 3/8
1/0 7/10
1/1 25/03
T.T.
1/3 3/10 Q.D.
1/2 23/322
75 1/16
151
the new China News Agency In the foreign bonds market, companied by a forecast of a there has been more interest alight increase in the interim In the ease of missiles, the said. object of this arenngement
"The new tool will and the oc-In Greek loans on hopes of the dividend,
Tho Board would hardly
London, Aug. 17. 10 provide
fixed reference eupationna disesse bad hearing discussions by Prime Minister
the Greck have taken such a step unless
Explanation of a quieter retali measurement which can be used which has long been prevalent Macmillan with
it was very confident about tho
hait at period during the first o correct the orientation of the among riveters," the report government in Athens.
While Greek bonds in Now outlook for the rest of the year, this year appears from official missile without aid of un- added.
O abaros were notably quot duly complex ancillary devices Leng Chuan-Hsin, u technician York gained as much as threo
points, in London they only with interest switched to other statistics lle mainly in sharply canadian Dolars
increased expenditure on such Fixed directional reference in a rolling stock plant in Man-
12. Investors sections of the "house." Shell, things as cats and motorcycles Australian Founde systems of this sort could bo churia,
ranged up to was credited with the
here were cautious, remember- BP and Busmah all cased.
(up by over 100 per cent over New Zealand Pounds of use in a number of Industrial Invention. New China rakt Leng
The Kafr market and min-
Just year) and on housing (up applications outside the aircraft is now working on a portable ing no provision had been mada
have 14 per cent).
South African Pounde Greele budget for doing shares in general in the version of the elicat rivoler,
Bwith TraDOS Industry.
made very little contribution lo
Delgian Franco Such fixed gyroscope system The Communist report sald resumption of, service,
German bonds continued in the Improved, turnover this According Board of Trude would possess the advantage Leng sicreased pneumatle pres-
demand and Japanese past wock and have been dis-statistics. The sharp increase in that it would be much more sure so that a platon rod would steady
finetly quiet.
asles recordes at the end of last gained a fraction. I rugged than one involving con- complete riveling in one stroke
Dollor. stocks were not
YOY
Th and in, rubber shares year has sackered China ventional gimbal-mounted gro-Instead of in several hammered
blows.-UP.I.
active, but some of tho motor, has continued upward.-U.P.I.Mail Special. scope.
West German Deutschs-
- We L
1/8 לע
N.B.Buying Rates for Sterling, Talegraphic Transfers and Hille may
not be quoted, better than tog delivery_vendy up to two front forward and therekter at 1/33 of a penny higher for a further three zouting forward.
The
action see-saw
was elimuxed at Friday's close when the list ruled 11 to 82 points-35 cchis to $4.10 a bale-lower than the preceding week.
Most of the action centred in the new cop months. House ap- proval of a bin, which would in stove off sharp reduction.
allotments in 1959,
acreage brought a wave of selling after earlier attempts toward a rally.
At the
trade weekend, the went home awaiting Senate con- sideration of the House-approved measure. After Friday's close, the Senate Agriculture Com- mitlee declined to accept the bill and voted for a conference with House members to iron out dif ferences.
The House bill provides two plans for supports Group "A" tanm would
accept acreage restrictions and group "B" would Increase their acreage allotments by 40 per cent. In 1959 the “A” group would be eligible for loans at 00 per cent of parity while group "B" would receive a loan of 65 per cent of parity, busin middling 4-inch cotton,
In
RECEIVE LOANS
1960, group "A" would receive loans of 75 per cent and group "B" 70 per cent of parity. would In 1901: all 5°
of parity, 70 per cent receive basis average quality of the crop, or four per cent higher than the 70 per cent of parity, basis, %- Inch, whichever is higher. In 1002, all farmers would receivo 65 per cent of parity, basis Rverage of the crop.
Market technicians who studied the legislation believed the law will give a trading range for colted futures of about.400 points. Their reasoning was that the loan in 1939 will be about 29 cents and the selling Government-owned price for
cotton would be around 33 cents. Within that range the shippers may not tolce risks and would use, the market för hodging pur- poses, they reasoned.
Crop KOVS MBALwälle com- Liinued favourable--U.PL
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