1960-02-01 — Page 2

Page

U.S.

THE CHINA MAIL: MONDAY, FEBRUARY 1, 1960.

INDUSTRIAL OUTPUT SCIENCE

Production now

Biggest monthly far above

decline on Wall consumption rate

Street since 1929

New York, Jan. 31.

New York, Jan. 31.

U.S. industrial production-paced by steel and cars-wound up the month of January at new récord levels far above consumption.

Higher dividends

help steady London Market

London, Jan. 31.

ENGINEETHING

Automatic welding is latest in making baby cars

Industrial stocks suffered their widest January the minds of economists and would carry prosperity along Buying by the institutions and unit trusts in a │***CATHOL

decline in history in the first month of the "Golden Sixties."

A steady erosion of values for this average brought it down in 15 of the month's 20 sessions. The loss for January amounted to 56.74 pointy or 8.35 per cent.

The only monthly decline in that exceeded this all intory

1920 wide k was October, when the average feil BB.94 from a much lower level. That month stock ex- was the biggest In change history with sales of 141,008,410 shares, a total never 1110 approached since. It was

of the month the bull market 1920's collapsed.

fell

The past week's volume off to a more 14,005,490 shares, u daily average of 2,001,098 shares, lowest for a full week since October 23. The volume for the was 14,210,000 previous week shares or a daily average of 2,843,818.shares.

INDUSTRIALS DOWN For January the volume was 63,032,302 shares, well below Insi year's 83,253,414 shares.

down 23.23 Industrials wero points on the week to 622.23, # loss of 3.6 per cent. Rails lost 4.83 points to 181.00; utilities lost 0.82 to 85.50, and 95 stocks 6.13 noints to 2002.

·

All the landing averages ex- cept rails wet new lows since September 22. Ralis were at their lowest since December 2.

For the month of January the points, Tails lost

only 2.45

FOREIGN CARS!

TAKE OVER

U.S. MARKET

Miami, Jan. 29. Foreign cars showed a 66 cent sales gain dur- per ing 1959 compared with

19 per cont for U.S. official makes, showed this week.

figures

American economists quently cite Miami figures

an indication of how the

fre-

rest

of this country is reacting to

sales campaigns and brand preferences.

var

A tabulation of 1959 new registrations showed

а

total of 50,010 were sold here during the year, which was 27 per cent more than the 39,986 sold in 1958.

Chevrolet retained its post- tion ns Miami's most popular a total of 12,838 make with

utilities 2.27 points and 65 stocks 13.10 points.

hard

Mutor Issues featured ir! volume but suffered wide losses on fears the current rate of sales would not sustain the anticipated Other blue volume for 1060 chips were

ht largely through neglect of buyers than any mies pressure.

The market worried about the was par- steel situation and

when the Heularly perturbel head of US. Steel didn't want to make predictions beyond the first half. The head of Bethle hem, however, predicted a re- cord year in steel production but this failed to turn the tide of the decline. The French Algerian said to have problems were

FURTHER LOSSES

The question, uppermost -in jumong economic factors that businessmen, was how long this into next year. "surplus" pace will be maltala- ed and what purpose it will servo,

Koeping wage increases with- in non-inflationary limits will be one of the tasks within this Steel mills have been running problem. Wage Increases al- crendy are running at en annual Bt just above 95 per cent

is being con- capacity some 20 to 25 per cent rate of four per cent, just on the above estimated consumption for brink of what

sidered an inflationary tendency.

Some economists believe that the year.

what muy upset the expected 10- ventory build-up-and the whole 1960 business picture as out- lined abovels the present tight

They

claim money market. tight money is putting heavy pressure on inventory control at when companies are a time having trouble keeping up with

In add production upewings, tlan to slowing down inventory build-ups, Ught money could also put a damper on the capits! equipment purchases expected later in the year.

Motor companles have scheduled 24 milion cors

for the first quarter and at the end of January were keeping to This is a rate of #chedule. some 30 to 40 per cent above the expected rate of sales of 1900

models.

Steel shipments

and

market short of stock kept prices on the up- ward trend this past week. Business ended on a steady note with the undertone very firm.

Both the Algerian situation

Wall

Street's persistent

after Monday's spurt when decline checked any rush to buy

brokers cleared weekend orders and commissions delayed unt!! the bank rate rise was out of the way.

A flow of excellent results, higher dividends and optimism from company Chairman caused good selective buying, Over the week the index climbed 0.3 points to 329.0 which was higher than just before the bank hike.

HONGKONG

STOCK EXCHANGE

by

rate

nong

who

con-

Our Own Correspandont

Business dono at the Hong-

Exchange Stock morning amounted to approxd- mately

Noon $1,860,000.

and the morning's quotations transactions;

Stren nuyers Bellez

BANKS HKC Bank

this

1100 1200

cn-

SELLING ABSENT Finished steel shipments are

Selling was notably absent running up to 25 per cent ahead

some mid-week of consumption as users rebuild

Two recent survoss bear out apart from their strike-depleted Inventories | played a part in the selloff.

this apprehension, une by Pur-

cashing-in by speculators at a rapid rate. Consumers are

the had bought on bank rate Studebaker Packard when Issued stock led the market in expected to add more than 4 chasing Week, magazine, turnover and closed the week al-million tons to their steel stockes other by the national industrial siderations Small investors are Jammy conference board. The majority apparently hanging on to their 14% of 1% the week's moles in the Drst quarter.

shipments are expected to reach of company purchasing agents shates convinced of the strength totalled 235,300 shares. ·

8.6 million tons compared with responding to the surveys Indi-of Britain's economy and consumption of 4.8 million tors.cated that they are being held in couraged by the government's alertness to curb Arsi signs of In March, steel consumption may a vise of keeping inventories low

inflation. in relation to output jump to 7.4 million tons as car

Industrials were the chief makers strive to reach their Arst hand, and of buying to meet the

buttress of the market partlyEast Asia.. quarter production goals and set-predicted boom on the other.

been hit because they had

INSURANCES fer weather stunulates building

hardest in the previous week's Union two shocks, Mergers and activity.

taloc over bids helped firmness

Tabaccos, elsewhere.

breweries mostly gineerings, went ahead.

and Cour | DOCHA, ETC.

K. Whart

!

Blue chips included in the group of stocks used to calculate

were hard

hit the averages

Union Carbide fell 10 points and Du Pont 9 among the wider breaks. Westinghouse Electric fell 5% and Eastman Kodak 64, Alcon was worth 3%.

Steel servico centres expect to rebuild depleted inven- tories by Aprli, They are now one million oft four and Wool-reported to hold

tons in stocks

On one

Tight money

some

Everybody still expected the compared with tight money to get even tighter Losses in electronics ranged to the dangerously low December despite the fact which 10% in Motorola: Texas Instru-lovel of 925,000 tons. ments fell nine points. Time 6% and Zenith 8.

Leading steels lost 2% in Bethlehem and 3 in U. S. Steel ench of which reported lower 1959 carnings.

John & Laughlin which had a rise in its 1950 income fell more Ihan six points.

Ford, Unitover

8::

Roles

31213 nazu 3:06 1200 But 1206

06 1200 20 ut 110

100

Lombard

ст

SHIPPING Wheelock

4.10

6.18 1000 9.15

3000 / 4.18 2000 0.10

140

181

40

17.70 17.90

17.00 17.80

Dock

43

423

3514

500 or 2315

1000 * 45%

300 ( 453

But steel bunkers termed surprising-that It will be past the Federal Reserve System still aulds scored useful rises, General experts, expect

Doiler stocks sagged under Dock service centre had not scted in raising the midyear before

Provident rate. In fact, Wall Street's lead and over the warehouses reach the 3.4 million federal discount

is considered there was come

slackening in week US. Steel lost 6% points Talko on level which

to 168, Bethlehem Steel went interest rates. normal,

Gen-LAND, ETC. These redictions, ranging 24 points: lower to 94. Foreseeing a glut on the U.S.

between and oral Motors were 3% points off UK Hotel 3014

Inter steel market, West European from

and Chrysler 1% lower steel makers are reported to be percentage point, were ascribed

however, TOSO HK Land 4042 454 15 points. cutting their prices in an effort to recent declining tendencies national Nickel, to keep the American accounts to short term borrowing costs. paper dealers, for they built up during the 118-day Commercial jelcel strike here last year.

example, páred interest rates by % of a point for the second time within the past week on pro- missory notes they sell for business firmas. Yields on short term treasury bills, too, have de- Cars, of course next to stock-clined to their lowest levels in rebuilding, are the dominant nearly three months. factor in the steel market right

Of the 1,410 issues traded 1,022 declined, the most since last September 18. There were only 270 gains and 127 held unchang- ed. A total of 98 issues set new 1959-40 lowa while new highs-UFI.

one made

Britain's record oil

imports

London, Jan. 31.

record Britain imported a

now.

Car production

1

I

Temporary

Detroit is running just below the all-time record pro- For of 1955. rates duetion example the weekly production

Monetary authorities expressed quota of American-made cars is

that these declining around 178,000. The all-time belief weekly high of 184,000 was set tendencies will only be tem

explain, As a result, vir- porary. in April 10355.

the postponement tually all steel products that however, have an automobile market will of the generally expected hike in the federal discount to continue in tight supply for ot least the first quarter of this end the bank prime rate.

year.

and

the

They

may

inventory

This takes money

GILT-EDGED BUYING

Government bonds firmed at the end of the week but heavy buying was absent. Neither the public nor the institutions ap- pear to be going in yet despite relatively high yields. The Treasury issue for cash of 200 million pounds conversion 4 par cent stock which closed on Friday did not help the gift- edged section.

Humphroye Realty

RUDDER Amalg Sungals UTILITIES TESTA

300 451

THE new 70 miles per hour (plus) Baby Austin and Morris Mini-Minor cars have an all-up weight of only 1,288 pounds. To achieve this low weight with maximum body strength and minimum cost, the designers specified an all-steel welded construction with the chassis an integral part of the body.

figure" could,

in

·

any

1

At the works of Fisher and machines to ensure that no more! Ludlow Ltd, near Birmingham, thon two groups

(or eight these bodies can be seen coming separate wells) ivould ever be of the production line at the made simultaneously la rate ut one every 1.2 minutes, section of the line, which means that, by normal working. 8,000 bodies per week One

110- of the largest can be produced, while by work-chines was made by Electro ing, three 7-hour shifts this Mechan-ficat Lid, of Kings-

theory, beton,

Surrey, for attaching stepped up to more than 5,000 seat cross members ant stiffeners. to the body flours. This machine i neted with pneumatic and eloc- tronic control units. The body! floors are carried on air-driven trolleys to the various welding sides,positions, where groups of six or eight electrodes descend in suc- cession, to make 82 spot welds in less than a minute.

per week.

How is it done? The answer is by automatic resistance welding, The different parts doors, acats, mudguardā, nool, and so on are drst slamped into the required shape in giant presses. They then travel round the workshops from one auto- matic welding machine to the next, siung from overhead con- Roasting Procedure veyors or running on rails. Each machine makes a number welds at predetermined points.

arc

of

п

Another mulil - spot. welder, supplied by the British Federal The bonnet, sides, back, root Welder and Machine Company and door

scam-welded Ltd, of Dudley, Worcestershire, together, by passing the edges of joins up the various parts of the the sections to be joined through windscreen, using specially de- pairs of copper rollers undersigned rocker-type welding guns which supply 27 spot welds pressure, which also pass strong electric current through simultaneously at various points thom. The action is rather like round the frame. This machine that of a roller-type in opener, automatically positions the parts except that, instead of cutting to be joined and ejects the finish- the steel sheets, the electric cur- ed assembly, leaving. barely. rent melts

fuses them visible marks where the "welds( together

path of the have been made. rellera, 10 make completely watertight scams.

D

in the

2115 21.90 2000 or 2119 Many machines usod

1.00 45000 in 1,375

4000 LAYO

20000 # 1.575

5000 1.00

24000 $ 1.575

.....

4.30 4x0. 3.45

3312 3316

800 + 345 1000 6 33.25

• 33,50

140 130 134

2000

325

200 134

100+133 C. Light 10.10.18.30 3020 18.10

1000 13.70 1200 @ 18.09 2:55 40 15.70

Electric 24.30 24.90

Now Telephone. 2015 294

$33 of 18.70

200 24.00 160 23.33 2403 or 3334

500 G 53%

4500 4 333

2001

Stor FETTY It was

how Youmau... not disclosed much the public took of this issue but the feeling was the authorities were major buyers, Golds were mixed and ended dull although they enjoyed brief rise on Tuesday, said to be based on both British and over- BV16 buying. Finance Issuing tured wealt Da BD uncertain Anglo-American Car- poration ended 5s up on the week at 221s 3.

Consolidated Goldfields were one shilling 9 penes better over the week, "Wrils" dropped 3 shillings on Friday and Westem STORES, ETC. Holdings fell back a

similar Dairy amount after their good cariler

Platinums were firm on the improved outlook, tins were very firm Oils see-sawed na Watson ... 23.70 24,40 1000 24

Foreign bonds were quet and COTTONS

Despite these developmenta Icading bankers and economists

market. But other than the car market, list four factors that will con- canning tinue to stimulate higher interest 13 billion gallons of oil

possibly

through the first in 1959, more than three industry, the steel market al- rates at least quarters of its crudes for ready begins to look less trantic half of this year:

than at the beginning of January, home

general processing In

reorder has been restored and there The Aneries. The 1958 total have even been some cancella- buildup following the steel strike

tions and deferments of delivery, settlement. was 11 billion gallons.

able short-term funds. The question at hand is just and constitutes a drain on avail- The remaining quarter 1 registrations, a gain of two cluded fuel oil, motor spirit and how much of the steel and ear

treasury paper of short-term percent. But it was challenged gas off but this was almost en production surplus is going into The increase in the volume advance.

inventories. Some estimates which also completes for the 55 Urely offset by exports from 11,000 Britain of refined products totail place this at only three per vent existing money supply.

production. Ing 2 billion gallons. Large lever, experts point out, a dollar Instalment buying, expected owly. The market ended dull.

to reach seven million cars this quanties were supplied for spent to build inventories has a The English Ford displaced bunkering chips engaged in

multiplying effect: It adds to in-year, and a sharp rise in retall

buying. the American Plymouth as the foreign trade.

comes which are largely spent. The expected boost in the third incst popular make, The Middle East remained the on other goods and servicca, industry's capital equipment. boosting its males 204 per cent

the creating more income; a supply source, A new high of, 4,430. major Plymouth lipped to seventh petroleum information said. The measurement is that every dollar place with 1,701 registrations.

region suppiled nearly 80 per ef inventory buying gonerates an cent of oil British crude imports increase in total national pro-

by Ford which showed per .cent gain with registrations.

to

of current

How-

rough

duction. Including the dollar

Besides English Ford and last year, Venezuela provided 14 Volkswagen (1,107) top sellera per cent. Refined oils came from that went into Inventories.

in the foreign category were many countries, including Renault, 947, Flat 550; Hillman, Trinidad (18.6 per cent), and the 428; Triumph, 300; Opel 310; Netherlands (16.3 per cent). and Austin, 270.

Inventory building

Venezuela and the Nether- Present estimates of inventory Rolls-Royce sold three care lands Antilles, where Vehezulan building chow is annual rate here in 1859, down from five the crude is largely refined, together should rise by $10 billion bo- previous year. China Mail supplied 20.4 per cent of refined tween the fourth quarter of 1959 Special

Imports-UPI.

CHANGE OF TELEPHONE NUMBER

As From February 1st, 1960

the Telephone Number of our

•HONG KONG OFFICE

will be

30261 (4 lines)

and the socand quarter of 1900. This, alone, would provide a size- able Impetus to production, om- ployment and Income.

The upsurge in production, avistained by Inventory building

a well no normal consumer buy

UFI.

Gold bar market

firm

Zurich, Jan. 30. The gold bar market conijnged fe daring the work to January 20.

demand with wolf maintained. The Bank of England tended

lg would Hft operating rates into be more reserved init

Dedlogi with South en tlofactory;

were

irregular.

Teas and rubbers were mostly firm and better where changed,

UPI.

!,་』

In most of the assembly opera- tions, only a machine could COMTI" position and weld the ponents with the precision re- quired to ensure that all sections fitted accurately together in anal there Whore watertight scams are assembly. Nevertheless, not needed, spot welds are made are one of two corners which every 1 to 2 inches by means the machines carmot roach, of pointed electrodes and copper These are dealt with by skilled blocks, which grip the com-operators with hand welding ponents together. a few guns, like giant forceps, who seconds at each point, while the stand at intermediate points in current is flashed through them. the profuckin line. These and similar electro-weld-

for

ing processes are called resis- After final assombly, the tance welding, because it is the bodies are threaded on steel, resistance of the steel com- spits, exactly like chicken car- ponents to the passage of the casses for roasting. They then, dlectric current which generales pass through a long tunnel-llko the heat needed to fuse them structure, revolving slowly all together.

the time, under powerful steam jels and a special phosphating In all 23 automatic multi-spot treatment, before being dipped, ond 10 roller-seam weiding still turning over and over, into machines, as well as 155 air-large- troughs of quick-drying | operated bund welding guns are point.

used in the Fisher and Ludlow

INDUSTRIALS Cement ...A 43%

44 2200 € A

1300 gr 43%

500 60 4336

100 G 60%

1000 4316

grid, to

1000 43%

I. Craw....

Textile

3700 24,90

hasi

shops. The 400 volt current More than £10,000,000 supply is fed into an overhead been spent by the Brkish Motor which the weiding Corporation on tools and equip- machines are connected at dif- ment for manufacturing: the new

24.00 24.80 375 2400 ferent points. As a safety mea- boby, cars. Yet the surprising sure, this grid is flitted with con- | truth is that over a production 100 P 2100tact breakers which automatical- | period of even a few months, it 500 a 26,90

ly break the circuit, if a demand is generally cheaper to use auto- 500 24.10 20074.80 1 of more than 1,000 amperes is | matic welders thars" manually- 1100 24.70 made upon it. Most of the spot | controlled guns. Indeed, this welds are applied in groups of enormous initial outlay on plant, coupled with a probable ·200,000 four at a time; and since each

* 13 9.70 1000 25.03 1550 1.70 1000 or 0.00

5000 + 0,03 4000 of $3

3200 13.10

6000 15.20

| Nanyang ......... 13.18 16:20 3000 20 13.

MISCELLANEOUS

Vibro

...... 16.70 INVESTMENTS

3nt,

*** 0.70

Cotton grey goods tradere

restricted

$3.00

*

4000 6.70

14 13.00

Bank of England

statement

London, Jan. 31.

The Bank of England state-

ecopte

£2,004 2003 20

1.800.201 237409.100

47.274,000

33000543

UPL

New York, Jan, 31. Trading in cotton gray, goodu continued to be restricted by lack of mopiles for spot aɛid nearby deliveries" this, pust week. Some second hand ment for the sweek ended offerings sppeared hut buyers January 28, roads as follows found prices too high and re- Notes to drculation many Industried to the point sales.

footed them

Public dopatie... where now capital expenditure America

Privete deposits programmes would be favorably while the Middle and Far East fabrico were in active demand other securities

Drills were active. Industrial Government, scutitive considered these might take the were quiet. form of increased investment in Gold coins rose in gympathy for apot and nearby deliveries, new plant and equipment.

with the Paris market where but forward buying failed to Thus, to those who doubt that the crials in "Algerih had reguit. develop. the present production boom cand in inerposed, buying interest. Finished fabrics continued to iba sustained beyond the first In Paris the gold foot link of this year, a measure of radially rallied in the week move in good volume at steady canadence can be restored from ended January 20 with operators prices. Quotation of auserin The plausible expectation that cling on behalf of the Bank of by a number of mills, shortages Bugmens was done in the forei

imG "pillowcases were advanced business Investment will Lagu Zracks only mildly checking this

of low grade cotion toread up uneficial exchange, market 161 as the prime mover in thayemont, CALDBECK, MACGREGOR & CO., LTD. nomla expatision in the second cats though in the lant soiton spot supplies of most po of a diary (1971)

Williamson by no means vrice of yama, Buyers found at the ukwing raten:--- half of the year.

tracting in gold ingots reached a yarn scurte with many ipin-upremalan kote, ; (pir The problem then would be to relatively=high

China new sold up for months ahead. Indonesian rupich“ (per 100) | maintain the sort of uslanco •MMI® Sp#ola£}

----UPI.

while the following numbers remain unchanged

20075

42541. 33206

ORDER DESK

GODOWN

HEAD OFFICE

2, Chater Road, Hong Kong,

over.

Exchange rates

group takes about 400 amperes cars per your production pro- from the mains, some, com- |gramme is directly responsible plicated planning was required for the exceptionally, low price. in the design of welding of the new "babies","

The special welding machine devleed for the construction of the buck of the body of the new Austin, Seven und Mind-Mlear.