1959-03-30 — Page 9

SCIENCE AND

THE CHINA MAIL, MONDAY, MARCH 30, 1950.

Page

Weekly Survey Of The American Economy ENGINEERING THE 1959 CREDIT PROBLEM

TV At King's Cross Station Needs Of U.S. Business | Weekly

has

Eastern

installed

British allways

Region

ara internal closed-circuit (clevi sion system at King's

TOKN

station for an experimental period of two months to in-

prove and speed up the supply of Information to the pubile.

hiensages will be

transmitted

from the signal-box to staff Al various points in the station.

This pleture xhaus

station

announcer Annie Blocks of Walthamstow, who has

Recovery May

CreateSome Difficulties

New York, March 29. Meeting the, credit needs of the business recovery

well become one of the major problems of 1959.

may

Corporations, which have been recovery following the 1854 | appreciably add to the pressuri nulc to reduce substantially recession.

för higher interest rates.

to

הפסנת

Sco

their drafts

the on

captial The real test of the ability of markel, will Beed to re-enter the economy to finance and the market on a larger scale it plant without harmful expan- follows alon of the money supply wil the expansion which the

lives, up recession

come in the months ahead. expectation.

Besides demand for capital Analysts, foreseeing a Federal for Inventory accumulation and Budgetary deficit in the fiscal plant

and equipment Invest starting in July, say a meal, year

economists squeeze is bound to develop.

further heavy demands on the How bud Is this capital mortgage market.

"Expansion shortage likely to be? Prelimin- of mortgage debt is likely to be been live years as an announcer ary estimates indicate that the eccond only to the peak year of consulting

supply TV screen which

of money is now 45:55," according to sinoll

relation information on the gives

total economist, economie stallón which a train departed

capital at any time since the early 1930's. The in-

Housing from, tralu number, time due,

since last July, at crease platform number. and threa passing points en route in London and estimated time of arrival at King's Cross, Up to 12 trains can be seen at one time. Central Press Photo,

Monophonic Sound

Reproduction Has Reached

Reached Limit

A TWO-DAY convention on stereophonic sound

was held in London recently by the U.K. In- stitution of Electrical Engineers.

The

festitution

I

that

the Current

the

is muether technical

บ

to

an

mal rate, has been one per cent comparing to the six peri etni which prevailed during the first seven months of 1958 when the Federal Reserve System was netively promoting expor-

slon.

Short-Term

The attractiveness of short- term government securities to non-bunk buyers was enhanced by the higher level of interest rates reached last autumn, Tha nunting k! added Trsery dobi mulside the banking system, particularly by foreign- outs and corporations, <as thus encouraged.

This process was facilitated by the increased amount of internal funds available to business, and parily dur to a high level of rained earnings in the last half of 1058 and contiurd ex- pansion of depreciation allow- ances. One bank <conomisi secs corporate huncing Calling from last year's $3.3 billion to

Business demands for bank loans have alto lugged during recent months, helping to Inli The rise in total bank credit, according to one analysis, „cor poration now of

have liquid assels, amounting to 45 per cent of current liabilities, compared with 33 per cent during the bcom period of 1957, Corporate holdings of liquid assets

*This mautuneed | or to

$7.2 billion this year. use problem to which considerable term, nan effort has been devoted, though Jeltic" saud reproduction, it 19 noteworthy that the

<if slugie chanel, technical problems involved in btwren studio and listener, producing two-channel gram- hus undoubtedly reached the phone records, were recognised limit of its possible develop- and relved by the genlus

juder signifidat | A. D. Blorein as far back as ment. Any Smprovement in sound quality 1930. can only be achieved by the use ! of multi-channel techniques cheive le convey to the listener an indication of the physient size of the orchestru atid #11 impression "The

ul 'accusdle surroundings.

The apparently obvious step of Ingrassing this number of microphones and leudspeakers, whilst still relaining a single cmmunication chatmel between studio and listuier proves to be au rolution to the problem.

Engineers

chema, in the tape recording and gramophone rupa. Beids have soived the probitus of having two separate signals between the suctio

the listener, but the solution to the "staco by radio” problems still remain to be commercially realised.

their

by $6 billion during the second"} half of 1958, a figure matched only once before since World War II.

Liquidity

. one

Housing starfs durned up lusi month: Pubile ewned dwelling unit starts dropped 1,000 from January, but starts en private dwelling units rose to 37,900 from January's U3,000.

New state and local govern- ment financing is also expected to rise. But outstanding Issues may be retired amounts, with net capital needs working out to about the same as in 1850-$5.6 billion

The net rest is expected to

a demand for capital

be

CITY LIGHTS

|

Despite the highly successful Issue this week of $500 million in 10-year, four per eght bonda, which the Treasury reported was over-ubscribed almost 3 to

Cotton

Goods

Market

New York, March 29. New business in cotton grey goods continued on the slow side this past week.

Converters and piece goods buyers concentrated on the task of digesting heavy purchases made in late 1958, or waiting to see the outcome of some rather Extensive

retail Easter oppatel males. ventures will have to be made

•MUS maintaining hold into the thort-term market.

In a period of dwindling bank front on prices warned cloth

supplies, the money

Treasury buyers against possibility that might Jower calton prices would be forced to put a high rough

on its mean an equivalent cut in the critics to attract a substantial price for cloth later in the amount of cats from investors. year.

interest rate

Some Concern

the

Buyers

lower Buyers looking for cotton prices have been in fluenced by the prospects for a much larger crop this year

following a relaxation of some

|

Wall Street Trading Falls

To New Low

New York, March 29.

Trading on the stock exchange" in the past week fell to a new low on a daily average basis since the week ended February 13, while American Exchange volume ran at a three-million-share rate.

The attention was centred on the American Stock Exchange. One firm'said 'rpéculatión Vás. growing to such on xtent in the American Exchange that it was tightening is mergin re

many issues, Somic of them up 300 per bent quirements on

and more.

American Stock Exchange business was so heavy that the Exchange's clearing machinery chagged. The Exchange called upon the big board for help in handling its clearing and re- celved It,

Big Board

The big board say many wide moves but 'on' the 'whole the

for

In these circumstances, some economists believe, the shorl. term interest rate could well 1cp

long-term rales, prospect which la causing some concern on Wall Street,

While capital market analyst:ruction controls last year market lacked snap either on and lower price supports for Ule buying or on the Bojling were foresceing a shortage of the 1939-60 crop.

side. On Monday' prices fell funds in the months ahead, the Treasury and the Federal Apart from Interest in print rather widely. Tuesday they Wednesday ond brokers an in- cloths, greater Reserve System began

reported recovered. quiry into the wild fluctuations moderate sales in lawns at Thursday saw shall declines in

prices,

along with the leading issues:quine of the market for government steady

The market securities tust swamer. In an broadcloths, bag sheeting and.'

Wow closed traditional Good Friday effort to track down speculative drapery fabrics. In the heavy the deals and correct then.

industrial in weight

fabrics, holiday and many traders ex- future, the two bodies asked moderate spot sales wore re- latided their weekend vacation commérelal banks to report on

ported on "B" and "C" duck by remaining away from the cach loan and repurchase agree- cloth, plus a limited amount of Street on Thursday. ment to finance government anmy duck,

The Monday the latter going

decline which securities operallons that was toally to lawning manufac amounted to a mere 32 cents a made after December 31, 1057, turers.

share for the general list was and all was cutstanding after

Bet off by a tiny dip in steel May 21, 1950, or that originated

operations in the weekly sche. between May 21

dule. -and. July 30;

This, coming after two 1058. The government "bond

months of rise, was seen as i market broke sharply in mild-

seiling force. At the same time June.

copper prices softened. Traders sid the steels and coppers and the rest of the market at the

**---meanwhile your most Finteresting and helpful Peproposals are receiving. Abe attention they merit."

London Raped Gervice..

at

Questionnaire

A questionnaire circuitated by 'the government ask whether

Quiet Side

Colton sales

yarn activity also was on the quiet side while buyers and sellers watched the courge of raw cotton prices and Easter the

of movement

orders Unniled business.

yards totalled earded cotton

on

the credit was arranged directly 12.1 weeks production at the with the borrower or was start, of March operations vs. supplied through a third party. 10.83 weeks at the same time I asks the bank to supply the a year

sold-ahead ago. The date cach credit was terminated position was 8.12 times stocks. In the previous month and 4.05 interest rate,

and the.. original cifictive on hand compared with 7.08

the

*vy

dectine.

Aircrafts met domand un

Testay and the coppers had o

small recovery. The market as

a whole regained its, composure with the overall average show- ing a rise of nine cents a share. On Wednesday the ilst dipped eight cents a share. On Thurs- day

I receded on week-end The Agencias do not request In March, 1958,

Rayon

and Anished realigning of gecounts but de- Idently of the borrower.

veloped a somewhat armer tone Instead, they ask the bank to goods moved at a quickening near closing, time.

Retail Trade

Con-

Oil prices

The Street got a chill when President Eisenhower entered the steel wage pleture by mak- ing a statement regarding the steel prices. He did not my labour shoula ferget the wage increase, •however,

The oil Issues sagged and late In the week the ralis appented to have trouble in holding their prices. The rails average in- stead of confirming the recent rise in Industrials fell to a new low on the movement.

There were many highly favourable developments but none seem to move the market out of its doldrums.-U.P.I.

London Restores Forward Gold Market

London, March 29.

of Without any flourish

trumpets and, in fact, using a very soft pedal the Bank of England this past week restored the forward gold market to London.

en-

But lest this should be inter preted as an unfriendly gesture the United States in to couraging speculation against the dollar, the Bank made the announcement most difdently and they went only halfway in

the restoring

old pro-war futures market in gold."

CONSENT Hitherto, dealings on the London gold market were only for settlement within two days. Authorised bullion dealers were

the credit was pace with prices tending" to east equal to last year's $32,6 say whether

exlonded billion.

10 3 government him up all along the line. security dealer, a The traditional Jendera last

New York Items in Ughtest supply, and in Business News on the whole

an- demand among retailers, in- | included several

favourable year--savings and loan associa Stock Exchange member.

other dealer or broker, or

sheers, tons, mutual savings banks, in-

an cluded: Nylon

arel items, Retail trade ruled strong cotton blenda and dacron as Easter approached. Car load- Active corporate buying ofurance. companies, corporate Individual

The inquiry can do ittle to polyester fibre cotton, wanted ing set a new high since last and state governmeal securities remained pension funds

and At the convention engineers In evidence during the early Local government retirement dismantle the tax and trudge for delivery as far ahead of November. Steel was only one- ordneni, in

a point lower respective

about weeks of this year, suggesting funds-provided

$28.7 policy barriers that now keep late summer. A leading pre-tenth of felds* discussed the

public from ducer of acetate yarns, used instruction held high. basde

that the trend toward greater on. It appears likely that the investment problem of aiding "size" to the liquidity was continuing. Cor-

the flow of funds to savings buying governinent sceurities, knitted tricot lingerie boosted appeared to be holding and it allowed to operate for lunger other actors

but it will undoubtedly be of prices four to five cent was hoped auto antes would go sent of the Bank of England for that create a porations appear to have been institutions, al kast, will high quality soumi image. able to return as great a volume slightly less this year.

éeznemte interest.-U.P.I.

pound this past week.-U.P.I.'" higher," Sepang sesalens will be held of funds to the credit market As a copilul shortage of $3.9 Techniques that achieve the dealing respectively with:

over the past eight months, billien developed last year, in impruralová of size are Juan Psychoacousti vendiderations;

through purchases of and were : 1.rt demonstrated stereophonte scunz on tape und

govern-terest rates moved up sharply. ment securities.

Analysts of cegital' flow ageze ap it back as 1881, but until

Alin stereophonie broadcasting Nevertheless, corporations are generally that higher interest recently ether technical de-

techniques, stereophons disc still considerably less liquid rates will come about during fciences made the improvement

roading: gereophonte sound inan during the bushiess the second half of this year, of the existi nenophunle

Will Du kan Huhtan. Kedural- yaran Tewarding phone recordaca-mm szoms

Reserve policy.

TECHNIQUES

rely adding to the number of chosnels. Loudspeakers, micro-

the age where little her

improvement

I their

DET-

formence is possible and yet

reques little discrimination to detect the difference betwee

and the origiani performance the best possible monophonic reproduction, particularly when the original source is a large or.hertra or a cheras, cr move- ment of the performers, about the stages involved.

Heated Furniture Does Away With Fires

HEATING dovice for furniture which, it is the

claimed, will obviate need for fires in the averago homa for eight months, in Multi-channel techniques the year, has been invented British inventor and of stage by o

giving on indication

In

The device is an electric ele- ment similar to that used electrle blankets which can be Incorporated in covers for chairs and settees.

size were fra comune: clally consultant, Mr William used in the cinema to produce Pickles. the acoustic counterpart of the "bla SCTCON" picture, Three sepirate chrnnels "were cm- ployed for this purpose, but accent practice involves the use of five separate channels on 70 magnetically recorded millimetre wide Alm, twice the standard size. Such Instellations mo ergible of a high standard of performance. INSTALLATION

IMPROVEMENTS AT FORD'S DETROIT PLANT

Detroli, March 29.

will hold

Tėvenues

COTTON FUTURES CLOSE STABLE

periods but enly with the con-

cach operation which was always carefully scrutinised to Dee that it was not for a specu lator,

Last week the Bank has Der- mitled only forward purchases of gold and no sales. The for- ward purchase from a London „deniers, which handmadega premag

• dollars or etheravada igri cur- rensics – Squid, normally be covered by the dealer buying

livered to the buyer.

Cotton futures this past week developed the best activity and the most und the metal had been de-

consistent stability in months.

The New

York and New cent trading pattern, interest Orleans cotton exchanges, ad- this week centred mostly in the journed trading at the close on new crop months, when it be Thursday until Monday morning came apparent that fewer far

mers than expected intend to for the Easter holiday season.

Breaking away from the re-over-plant their acreage allot-

ments this year.

Economic Recession For Ethiopians

RC-

But since the Bank of Eng- land.is, Under the circum- stances, the seller In the last - result, the Bank, operating for the exchange equalisation count, would thus be exchang- gold for dollars and would thus be financing what might be A speculative operation against the dollar,

A FLURRY There has been

a furry of

Trade statisticiona gured the grep this year will run be- tween 12,500,000 and 13,500,000 bales versus $1,420,444 balck old purchases of late by specu ginned from the 1958 crop. But dollar and London dealers have lators who distrust the U.S. government exports indicated a crop of around 10,000,000 bales, been complaining to the Bank based on normal growing of Englaid about the dis weather conditions, plus about advantages in having no for

werd 1,500,000 to 2,000,000 bolca amount of business which was gold market and the Old crop. deliveries continued going to other centres.

Dr William C. Freund, economist for Jig Peliten tint. Masinanted, omegagne ORA. sala Terently, “The Market-bas" already discounted some rise in business activity,” causing a temporary pause in the upward push of interest rates. They are likely to guther forward In a holiday-hortened period momentum about the middle of of four sessions, the market as the year."

Thursday's close ruled 8 to 39 An Important factor in the points 40 cents to $1.85 Ford Motor Company has capital market is, of course, the bale-higher than the preced

This ing week. announced in $35 million gods of the Treasury.

truc even if the quality improvement and Federal budget for fiscal 1900 modernisation programme can be balanced, which now at its steel-making faci- appears extremely doubtful. Thi

stał of the Senate House litles at the Rouge Plant, committee on internal revenue In Dearborn (Michigan), taxation" forecast last week that The project is to get under the 1980 budget would be in way at zoon ng engineering the red by anywhere from $1.2 plans are completed and be billion to $4.2 billion Tho finished by mid-1962.

Comunitico has had an excellent Ford's 1950 Ingot capacity is record in the post on its 1.898,000 toris. It has recently predictions. If sald

ment programmes planned or the carryover Adila Abats, March 29.

started. Ethiopia fates an economic bo only $75.8 bliiton One important difference be-produced about '50 per cent of would

to drive most of their resistance The Bank therefore arranged tween Mr Pickles' heaters and its steel requirements.

instead of the $77 ballon' plus secession 8 a result of the 70

The development programme frem on underlying demand that. forward dealings in gold the electric blanket is that the

provided For in President slump in world coffee prices. Most Modern

Includes: large-scale éxtensions from mills and other trade in would not be in, a formal mar.. chair heater includes, o special

Elsenhower'S budge!; 'and (transformer which

A boom'in coffee sales during to the Red Sea port of Atsab, teresis, predicted on the ballet ket, No forward prices will be steps down

"When this programme is spending it said, might go as

at thodalty fixing, household 'mains electricity to a

completed. our stoel division high at 380 billion, rather than the carly 1950's sent prices widespread thway devicp- that because of the huge amount given

hew International air of ectton tied up in the govern-Dealers will simply quoto prices For domestic installations it is claimed, renders 11 harmless so

very low voltage. This, it is facilities and processes will be the budget estimate of exactly soaring, and set this nation on men,

the road to prospetily. But sort and water supply for the ment loan, a shortage of sup in response to demand.---U.P.I. among the most modern for $77 billion. dmfult to justify the expend that children who stick pins in

the boom is over and prices capital, the purchase of jet pars pites in commercial channels raclting, rolling and Oriolilng .

hove Been dropping steadily turbo-jet airliners (or Ethiopian will develop before the next Kurd necessary to provide five the covers or otherwise misuse highest Quality automotive * or even three channels, · and a

airliner, and industrial expaa harveyi ir avaliable. them cannot get a shork or cause

Much of the new cash relped over the past dve years. steels," Mr Irving A. Duffy, considerable

alon: amount

of a fire.

Ford vice-president said,

by 'the Treasury over the rest

Now, Ethiopian coffée mor- |*** technical effort has been

The programme will increase of this year will reflect seasonal chants can also less than 60 Also, the boom, made it eary. devoted to improving the per The

heating element runs blast furnace capacity by im- needs, but in addition the

per cent of the 1854 price on for government and "commer- dormance

Haw cotton exports for the must refinando K21 of a two-channel through non-inflammable plastic proving furnace, stoves to lay

cial organisations to expand ease through March 29, total- Bystem over and above that foam, and takes only a

fow CREATE temperatures and re- billon of publicly-held debt. the New York market; the straight minutes to get fully

Since coffee in this country's their staffs and increase the led 1,999,009 Gates vs 5,070,714 attained

London, March 29, wärm. Itnovate open hearths to employ The Trepky with an gir to

bales shipped in the same period forward use of two microphones, can be adjusted to provide the more oxygen in steel-making.

The Bank of England state- the grind for indstionary major foreign exchange carner, gendral Wye) de palatics."

Highby Mentaries meant city last seen according to the ment for the weak ended March and

Icudspeakers. amount of heat required.

A bank of four soaking pile warning is soeking to lengthen Ethiopia faces sóma #ický prob

Jalories New York: Cotton Exchange 20, rests as follows: There are major technical

will be added to the present 20 the average life of the deb Tema 15 the hopes to maintain and

thấy so: 1. The government – lain delock usagree danculikost, in providing two Mr Pickles, believes that in in the railing mill, fourth, and not to place as much the progromnule during NZ ILA MON

watches was reduced by 11,000 palen Notes in circulation operate channels bolween the vallda, elderly people and eut slop relenting furnace the Ananggombing will put tow your

fog audio and the listener's room, iterers from allments such as hot strips/mil, sąd a new four

stituical Revenue from poftem, da porta LAN

sumer for the well inded likrch 210 Publg dep koblin. 76, now :.: Lotal, 6,500.583: baleni devrez particularly when t gramo- rheumatism would benet por stand-tandem cold rolling milli tavsifies phone record of broadcast radio | ticularly from this device. (W, will be installed and adilificial | #11100 Cin the modlitro conveying “the Pickles, Southmere "Delve, | onusollng, facilitler key parked wit

Bradford, "Yorkshire.]

mpera

trom

market

Refinance

complete the ambitious,

Raw Cotton

Bank Of England Statement