1960-06-28 — Page 2

Pare Z

THE CHINA MAIL TUESDAY, JUNE 28, 1960.

ARE GILTS GILT-EDGED?

HONGKONG UK investors

STOCK EXCHANGE

Our Own Curvypomdical

Business on the Stock Ex- change during the morning session was $1,409,000, Noon quo- *Lalions and the morning's

transactions:

Shares Bayers. Sellers IK Bank.. 11P 1206

Union

Wharf Co. Wheelock..

5411 24

Salen

are facing a big loss

By BERNARD HARRIS

TO many people in Britain it has now

become almost frightening to turn 316 at breakfast time to a column in smail

type in their daily newspapers.

1206

7.10 7.15 1000 @ 1.30 1000 7.10

1000 7.10

100 113

113 111 Dock Provident 21.40 211 800 211

London Slight decline

closes firm

London June 27. The stock markes closed alghtly higher **today. but trading was small and prices That columa is headed, ac-gilt-edged market is steadily shed often below their best

Jevels. cording to which newspaper they falling? When prices are only read, "British Funds" or "GIII-prevented from alumping furifler

Gains sprved through the in- 1200 er 112 Edged." It shows the prices at by the Government repurchas-dustrial list pace by the blue 50021.40 which the many loans issued by ing substantial quantities of ile chips. Steels, textiles and

British Government are own stocks?' the

speciality Lenes were in de quoted on the Stock Exchange.

mand. However, international Day after day the worried folk

lues 1fice Unilever and Phillipe 250 5815 who have put money into these securities see that a Hitle bit

lamps were out of favour. more has been chipped off the

Gold mining stocks were market be restored to health and higher. Copper finned.

HK Hotel (19 $2 700

HK Land 579 58

1500

200

500 7 21.40

42 4194 58%

Questions

WHAT then can be done? W How can the gilt-edged

20 180 The "gilt-edged depression," regain the confidence of those

as the City calls it. spares no who are now suffering appalling

250 6 58

400 58

Yaumat!

170

381

100181

2300 181

value of their savings.

Tram

..... 31%

32

250 32

*500 312

800

31%%%

C. Lipst

22.40 22.00

4000 80

221

2900

HK Elec

29.70 28.80

HK Tel.

38% 38%

Qils were narrowly irregular

one who holds any quoted Gov- losses from having ventured into - and rubber issues fused. ernment security. But the worst it.

in

22.40 sufferers of all-and they include 222 millions of small investors-are 500 20.70 those who have their money 216 28.70 the securities which the Govern- 121128.70 ment is under no obligation ever

100 28.60

800 1 39 135 39

500 for 38% 500 - 30% 200 (# 39

to repay.

The plight

Gilt-edged securities

were

Questions like these bring norm. Japanese bands were satisfactory answers from the money experts in the City. They have no real solution to offer.

market. Dollar stocks were aber in the foreign bond mixed with steels strong.-UPI.

Closing Prices

The only faint hope they can put forward is that by checklag inflation, by keeping the pound strong, and by curbing its own

Government wh 2000 38F these stocks the biggest and spending the

54 Cement

531 541%

best known of all is 32 per one day persuade Investors that

gill-edged stocks are a good bar-260-3716. Dairy Farm 28.80 28.60 1500 28.00

200 e 28.90 cent War Loan.

Consider the plight of a man gain. 20 20,70 6.06

who put £1,000 into War Loan 10.00 10.99 1000 10.00 in 1949 to provide some security

for his old age.

Watson

Invest.

Texule

But who can and encourage- ment in such a nebulous pros- pect?

If he were to sell his invest I suggest that something far

Gilledred Honda

British Tranegory 3%, 1878/68- Console 215% £44%. Conso RETRO Conversion. Lood

232-15/16

registered on Wall Street

New York, June 27.

North Amer. Aviation

381%

20%

The stock market declined today against back-

drop of one and two point losses in leading| steel motor, camera and rail issues. Electronics, vending machines Noranda Mines Ltd. and воде special stocks Norfolk & Western Ry.

the tide. Northwest Airlines (Com.) managed to bunk scoring widely.

Okishama Nat. Gas Olin Mathieson Odia Elevators Steels lost heavily following a report that steel production this week, would drop to the lowest level of any non-strfice period since July, 1958. Lukens and Republic toppled more than two and U.S. Steel, Bethlehem and Youngstown a point or

Inking.

Paramount pictures valuted

With

more than four on news Ampex Telemeter Magneties that will is considering a merger enable Ampey to enter the data processing field for the rs: time. Paramouit holds 75 per cent of Telgmeter's outsand- ing stock. Ampex held steady,

Most brokers agree the cur- rent retreat appears to be holding within the bounds of a 1901-normal technical correction and that the greater portion of the 1060/00-reaction has run its course, The 331%, 1998/2004 only thing lacking at the moment is strong leadership, 4%. Funding Loan

some analysts note, Today's 4874.

volume was 2,900,000 shares. Of Savings 3%, 1955/65-20911.

a total 1,216 shares traded 431 Bavings 3%. 1980/70-784 Savings 3%, 1969/75-471-39/10

were higher and 578 lower.

Bonds volume

300

11

Nanyang

17 17.10 3500 17

2000 to 17.

Loan Funding £81/18.

3000 T

A. Rubber

Rubber T. Keally

7.20 1000 7:25 2000.7.15

ment tomorrow he would get no more than £800 for it.

more positive needs to be done,

Funding Stock

e

For the Government must keep

790

1.45 1.875 10000 BTS

RK Gas 14.50 14.8)

Giliran Underwriters 12.50

10000

1.875

5000 1.85

230 14.00

And his £400 loss does not faith with the small investors of ell the full story. Inflation has this country who bave put their been at work all the time, nibbi-money into its securities in the ing away at the value of the unwavering belief that their capital that is left. In terms of capital would be secure. what it will buy the £1,000 of

No warning

Multiply that example many IT is no use for Mr Heathcont Amory to express sympathy thousands of times and you get

1700 14.70

310 14.70

2740 14.70

Lane,

Craw.

43 43 15.00

500 431

11 years ago is reduced to little

2000 e 8.85

2000 or 2.975

more than £350 today.

14.00 3,00

50 5615

24.80

192

H.K. & FE

Inv. Highty

Macão Eléc.

Taikoo Dock Kumphreys Star Ferry, 109 Robes

19.00

NY sugar market

New York. June 27.

World No. 4 suzar futures to

day closed 19 points lower to one point higher with sales of 642 contracts.

Domestic No. 6 sugar closed one to four points lower with sales of 411 contracts.

The liquidating movement in world contracts, under way last week, picked up a little momen tum today, os traders became more uncertain about the avail- ability of future Cuban supplies of raw sugar.

some idea of the immense hard- with those who have lost nearly ship and suffering which the half their savings in War Loan Government and tell them they went into 'it persistent fall in securities is causing in homes with their eyes open. throughout the country.

Disastrous

Or to tag them with technical jangon that they were not, as they thought, buying a safe in- vestment but merely "and

PERHAPS you are one of those annully guaranteeing them

1

who do not hold War Lean fixed income for an indefinite or, indeed, any Government period."

be security. And so you may They bought-or at least most inclined to say: "Why should 1 of them did-on the advice of worry? It doesn't affect me." their bank manager of stock. But, of course, it does affect broker. They were assured that you vitally. For if the gilt-edge their savings had the finest slump went much further it backing in the world the word

could halt Britain's march prosperity.

Baps

1000/90——

Barclay's Bank "A" Ltd. ord–544 | $4,960,000.

Chartered Bank-50s 6d. Horrkong c

Lloyd's Bank "A"-38 34.

XXX.CO

Union Insurance Canton-es!%.

Aircraft and Motors

Britlab Melor Corp. Ord-11e

.

d

Ford Motor Co-10% ed.

Hawker Siddeley Group Ord-24-

Rolls Royce Lid Ord-431 6c. Bootes Lid "A"-10# 10150. Standard Triumph International- Is Ed.

Breweries

Distillers Co-345_10154. Bouth African Breweries-44.

Buliding and Materials Associated Portland Cement-45s to of the British

Government. 1054 Whatever happened elsewhere. Woodlaw Wall & Lead Ord-30 their money at least would be 34. secure.

Think how rocketing interest rates would raise the cost of borrowing money for roads and bridges and other public works. Or how they would increase the cost of loans for housing and so force up council rents.

Nobody warned them that in a few years nearly half their capital could melt away. In paying the interest regular- ly on the due dates the Governi- The results would he dia- ment has, of course, complied

And they would not with its part of the bargain. The 50. astrous, be confined to this country. Income has been secure enough. The Empire countries tradi- But what about the capital?; tionally raise in London much of Can it honestly shrug off all re- Domestic contracts eased in the capital they need for deve-spersibility for that? sympathy,

Iquidation Japment. Already there is aj plus

for queue prompted by expectations

Though it may have no legal

of frustrated would-be obligation towards the small in- vestors who have suffered 80 severely, I firmly believe that it has a moral obligation.

the arrival of a substantial borrowers. of unsold raw sugar volume here during July-UPI.

For how can they obtain all the millions they seek when the

P&O

R.M.S. "CORFU"

EMBARKATION NOTICE

For United Kingdom via Singapore, Penang, Colombo, Bombay, Aden & Suez-Port Said,

EMBARKATION: Passengers should embark between 2.30 and 4.00 p.m. on Friday, 1st July, 1960.

BAILS:

BAGGAGE:

Quick

5.00

The ship is expected to sail at p.m. on Friday, 1st July, 1960.

Should be sent to the Hongkong & Kowloon Wharf Co,'s Godown (No. 2 Gate) by 5.00 p.m. on 30th June, 1900,

SUBJECT TO ALTERATION

GLENTENERS Deliveries

G.R.P. Box 821

-MARINE-DIESELS

RENEGO

Tel: 24491

And it can discharge that obii- gation in a perfectly straightfor ward way-by fixing a date, perhaps 15 or even 25 year ahead, when its irredeemable loans, like War Loan and 2 per cent Treasury Stock, will be repaid at par.

That would bring about a Immediate improvement in the price of these securities in the markets.

help

Coal, Steel and Engineering

Babcock & Wilcox Ltd-368 d. United Steel-159 9 Vickers Ltd-1.

Food and Tobacco

British American Tob. Cu., Ltd Imperial Tobaco Co.. Lid-056. Miscellaneous

were:

amounted to

owen-Illinois Glass Pacific Gas & Elec. Pan American Airways Paramount Pictures Penny 3. C. Co. Penn, Salt Co. Philip Morris Pitney Bowes Procter & Gamble Co. Pullman

Parke Davis Co.

Publicker Industries

Pure Oll Radio Corporation Radio Corp. Pref. Raytheon Repubile Steel Reynolds Tobacco Royal Bank of Canada Royal Dutch Bheem M. Beatz, Rocbuck & Co. Saint Reg. Paper Schenley Inc.

Scott Paper Sinclair Oil Smith, Kline & French Socony Mobil Oil Soler Airera 13.

Southern Natural Gas South Puerto Rico Sugar Standard Brands Standard Oil of Cal Standard Oil of Ind Standard of of NJ. Steel Co. of Catada Steep Rock

Stone & Webster Studebaker-Packard Corp. Sunshine Mining

swati Co. Texas Co Textron Inc. Thiokol Chem. Tide Water Oil

Time Inc.

Dow Jones closing

averages

Tri-Coat, Warracia

30 Industrial

30 Rails

13 Utilities

63 Stocks

40 Bonda

Oomen. future price index

Closing Prices

| Abitibi Pwr. Paper

Algoma Steel Corp." Allied Chemicals

Allied Mills Inc:

Allis Chalmers

Am. Brake Shoe

Am. Cable & Radio Corp.

American Cyanamid Co.

Amer. & Forgn, Power

Am. Gas & Electric Am. Home Prod.

Ara Bach, & dry. American Metal Am. Natural Gas American Belling Am. Sugar Ref. American Tei & Tel American Toḥ, Ampex

Anaconda Copper Armico Steel

Armour

Alberto Corp.

Baltimore & Oblo Bank of Montreal Bank of Nova Scotia

Beech Life Savers

B. C. Tel. Co.

Bell Telephone

Twentieth Century Fox Film Union Carbide ..... Union Pacile Ralway 642.49 | United Aircraft 14328) United Gas Corp

83.30 U.S. Gypsum 211.50 U.S. Rubber

82.91 U.S. Smelting 143.66 17. steel

U.S. Steel 7 P.C. PF Warner Bros. Waukesha Motors Westinghouse Alt Brake Westinghouse Electric Weston Union Tel Co. West Va. Pulp & Paper Winn-Dixie Stores

3132

35%

3514

Woolworth (K. W.)

29% Zenith Ridlo

42

9

50%

112

103

4512

117

Non-state-owned

airline merger to operate soon

London, June 27.

A merger of non-state-owned airlines which is to operate from next Friday will give Britain what is claimed to be the largest independent airline organisation in Europe and the Com- monwealth.

Details of the new combine, Viscount Service between the which merges the Airwork and Middle East and Europe Hunting-Clan organisations - Subsidiary and associated der the name of British United companies include Straights Air 10% Airways, were given to a press Freight Express in New conference today by Mr M. D. N. | Zealand: Alt Carriers Limited 2014 Wyatt, the chairman

in the Rhodesia - Nyasaland He said final agreement had Federation:

072%

ינו

Commercial Air

709 now been reached on the details Services (Pty) Limited, in the merger and the re South Africa and Airspray

of the new joint (RA) Limited in East Africa. organisation company was virtually com China Mail Special. plete.

123

of

70

67

29

20

574%

It would include, as well #6

these two companies, several of the former Airwork subsidiaries whose old names would now

59 cease to exist.

Companies retaining

their

Russia's new

names include the jet airliner

Channel Air Bridge, Limited.

173 Present

34

41

48% which operates passenger and

vehicle-ferry services

from

Southend, England, to the

70% European continent.

51%

The Dew British

Moscow, June 27.

NOVIET Premier Nikitar Khrushchev spent some

United time looking over a new Airways is backed by the Blue jet airliner the "TU-124" 3Star, British and Commander

wealth,

and

Furness Withy at the international Vnukovo 20 Shipping groups, Mr T. L. E. Bairport shortly after landing Guinness, the Hunting group at the aerodrome from of companies, and Whitehall Bucharest today, Tass said.

264 securities,

Mr Wyatt said the

COM-

The 44-nt plane is under-

pany's fixed-wing fleet totalled going final test flights before four being used by the Soviet Air- including aircraft,

36

30

52

24

Viscounts,

The Soviet Premier also dis-

turbo-propeller Britannias and lines, Tass stated. 11 turbo-propeller 29 and a fleet of 64 hellcopters -belleved the largest in the 1415 | world.

Scheduled services included 30% the safari routes to East, Cep-

50tral and West Africa, two of which would be shared with Overseas British Corporation, and their African

400% 7241

12514

-UPL

partners, East

Central African

played interest in the progress the "Moskvich 1" a three seater helicopter which he sal

to be used in remote, was inaccessible areas--AFF.

Airways Air France

African and

Airways Cor affected by strike

porations, under new arrange- ments coming into force in

Agreed merchant October.

rates

Canadian Maximum Belling, 17-1/18; Minimum Buying, 4117-5/16 T/T, 17% 0/D.

043

Among other services, the company also operated an all- Germany, freight service to Malta, and points in Africa.

New York, Juna 27.

A France onnounced to-

day that for the second consecutive day it has can- The company has contracts celled" its four daily jor to operate aircraft overseas for flights between Paris and Pakistan Petroleum and the New York because of a

Swiss Francs, Maximum Sierra Leone Diamond Cor.

23 Selling, 75.

5BX

poration and Selection Trust strike of pilots in Paris. Belgian Francs. Maximum and other organisations, Selling, 865.

It assists in the running of the West German Deutschemarks, Sudan Airways, and in Maximum Selling, 72.

operation of the Blue-Nile

Beneficial Transe

Benguet Cons.

36.

Bethlehem Steel

454

xd.

Borden (The) Co.

50

Burloughs Add Machine

British Amer. O

Yesterday's Closing

Boardman Marden Lid-4s xd, British Choygen Ltd. Ord-94 Canadian Pacific Rly-444 De La Rue Co. Ltd. Ord-75%*9d. Dunlop Rubber Co s 10d. Gilmer Holding 4-4d Hongkong & China Gas-it od p.

inperial Chemical-5 3d 1.vons & Co-7 11⁄2d. Uclyver Lid-1088 34.

Paper

Calif. Packing Corp.

Campbell Soup Co. Canadian Pacino R. Cal Tractor

Celanese Comp.

C.I.T. Financial Corp. Chose Manhat Bank

Bowaler Paper Carp Ord-80s 3d. Shader Motam

Radio and Electrical Associated RibctricalMike Ack Electrical & Musicaia 3d, English Electric Co-s General Electric-356 31.

Shipping

Indo-China Steam Nav. Co det ord-228 39.

P&O Stepm Navigation def ord

I would allow the patient holders in due time to re-c cover their savings in full I would

to end the "buyers' strike" which is mak- | rad." ing it so difficult for Empira and other loans to be Bosted in the market.

But be sure of this. Such a move would bring an outery in

the City.

For it would mean tampering with the terms on which a loan

Stores

Great Universal Stores "A"-47s

Marks & Spencer Ltd-759 115d. Woolworth F. W. & Co 83s xḍ.

Textile

Coats J&P Lid–489. Courtauld hackmBBN 4162 xd

Mines

Chuett Pestory Colgate-Palve Co. Colombian Carbon Co. Carolidoled fidion Continental Car Continental OH of Def Crown Zellerbach Cuban Amer. Bugar Delaware & Kudion Co. Piernand Alkal

and Gard Doug Abunait Dow Chemical Dupont de Nemours Easters Air Lion's Eastman Boga.... El Paso Nabird Gas Famby Finance Carp, Fir Nat. City Bank Georgia Pacific General Dynardier General Electria General Roods

General Metare

Gen. Pub, Ut

Gen. Tyre & Rubber Getty Of

Com Goldfelds of South Africa-laden Co.

was issued a thing the British | 604 || Government never does.

It would mean an undeserved

profit for those investore who had only recently bought War Loan or some similar stock. those who had recently sold their holdings..

And it would be unfair to

Justice

To the financially orthodox, to those who are guided by the last word and comma ofa contract, these objections may be weighty.

•

Cona Zine Corp. Ord-15s 06. Crown Lid-215 60 xd,

De Beers 'def-142′′ od. Hongkong Tilla 1035d. Petaling To

Southern Kinta Com LAB-20% 3, Stilfontein Goldmining-39 9d xd, Unia_Corp-49% 19120.

Goodyear Туте

Great Northern Railway Grum Alecraft Chair Cat...

Hammond Organ Heydery Newport Corp. Fran Worker Husenians” Hedvig. Idaho Power

Imperial OBL

West Driefontein Goldmining-14 | Ingersoll-Rand

caug

01

British Bames Petroleum Synd cate-sle 101ja.

British Burrah Patroleun-is 94. Briffin Petroleum Co., Ltd-500 Burmah-41 Bc. *** Royal Dutch Patroleum-14-1/186. Shell Transport & Trading-143

**Reuter,

But I, say they are at little! account when it is a question of} td. the Government doing an act of simple Justice to millions ut people who Baye put their trust 15 R.

What matter that a few should make a proft if happiness and contentment of mind are restored

Exchange rates

Inland Sten) Co. Endrohenion

Corp Int'l Burinem Machiner International Nickel Int'l Harvester guy

Int'l Tel & TONAI Kaiser Industries Kan C. Power & Light Kennecott Copper Eggett & Myers Tob. Co. Kimberly Clark My Tulp ...... Lockheed Aiseruti· · Loews Incomp...... Lone Star-Cement Co. Lowenstein & Bans. McDermott J. - Ray McDonnell Aircraft Merck

Mesabi. Iron Corp.

Monnio Chemical Co Business was done in the local-up--- Montecatini

to widows and pensioners and official Tikehaute market this more Montbroery Ward modestly retired folk who prefing at the following "zates:

US, dollar (per gi)

now struggling against adverty. Berun hotel (per 21) merely because they backed the Almirallan notte (pT EV Brideh Government with their familian tuber 190) |hardvényned sayinmaz

Bldgapore, (B£ruita)"

Snada Kiprian' gérolős).

1.79 National Bisquit

13.00 Nation

Ch Rez

Flights Between Mexico City and New York have not been affected it was reported.*** AP.

COMMODITY PRICES

METALS

all in cents

NEW YORK Cloging prices, per Th Lead July

Sept.

Zine Jelly

Begt.

Copper Jul

Hoot

LONDON

COTTON

No. 4

Epot rubber upbaled Blanket crepa Noi pale' crepa

LONDON

Closing price all in

per lb.t

No. 1 Rapat

Bettlement nouse terr

April/June July/Sept

NEW YORK Closing prices all in cents per lb.:

Spot: $1.29 nam; July: $2.81: Get: | Cel./Dec. 11.10 31.07; Dec: 31.15; Mar:, 31.49; May: || Jen/Mar. 412831.71 July: '3173; Oct: S1M: Dee: Apr/May 11:25 31.58; Mar: 33.05%

July Aug.

00.09

30,43

-NEW ORLEANS Closing prices all in cents per

1b.:

Closing prices, all in sterling Dec: 31.13: Mar; 31.17: May: 31.00

per long top,

Tin pot

3-mont

Copper spot

1-www.th

Land zod half June

Zine and half June

Sept

Spot: 31.90: July: 22.72; Oct: 31.06:

July: 31.69 Det: 31.50; Dec: 31.51; Buyers Sellers Mar: 22.

78L

791

242 lb.:

SUGAR

NEW YORK

“General markești, QA,E. DARD

state crepe thin July

AMSTERDAM

Closing prices Call to puilders per kilogram, ci,1 July

Na, 1 rubber

LIVERPOOL Closing prices all in pence per No. z rubber

No. 1 cree

American Contract [July/Aug:- 22.38: Oct/Nov: 22.35: 2014 Dec/Jan: $2.50; Mar/April; 23.50;

May/June: 23.36.

Closing prices all in cents per tb.:

Contract No. 4. (world)

OF.AS Cube)

Tula Bales: 642

Contrast No. 6 (domestic)

C£}, N.Y. «*»duky}

#kaler: 413 copératis

Mixed Contract

July/Aug: 22.80;: Oct/Nov: 2275: Dec/Jan: $1.65; Mer/April: -27.15; May/June: 22.00 UPI.

RUBBER

No, & rubber

3.43 buyers

FOREIGN EXCHANGE

NEW YORK Closing Talds: WA Canada)

4.03 1/38

NEW YORK rubber futures closing New Zawad

prices, all in cents per lb.

О прове

July.

Sept

41.60

NDON

Nov.

43

Closing'

49.75

New-Yoric

·Mar

May

July

街

SINGAPORE

Coring prices all In Strálte

cents per lb. fob,

6.01

parte:

| Nasty

No. 3

Malayan