1960-08-15 — Page 2

London market

THE CHINA MAIL, MONDAY, AUGUST 15, 1960.

Weekly survey of American economy Weekly__survey

improves on NO RECESSION DANGER buying support

London, Aug. 14.

Industrial stocks swept up this past week, the momentum and scope of the thrust increasing sharply on Friday impelled by broad-based

U.S. merchants

Income up

uneasy over but buying

investment buying in a market thinly supplied business trend

with stock.

Markets dropped the remnants ¡merger stocks spurted against a of traditional summertime | backdrop lethargy in mid-wook.

NWS.

company

New York, Aug. 14.

United States basinessmen were in sober and some, what uneasy mood, accord-

Week.

Business

plans curtailed

3

New York, Aug. 14.

this

HONGKONG More inquiries

STOCK

EXCHANGE

Our Own Correspondent

Business done at the Hongkong

amounted to approximately and 5926,000. Noon quotations and

Bales

13 + 1195

58 110

week high level" numerous experts, from President the morning's transactions: Eisenhower down, assured Americans that while they are not enjoying the great year which had been expected, they still are far from a recession or even from moderate trouble.

of good

Then the cut in U.S. discount Recently becalmed gilt-edged rates brought vigorous buying improved on lower bank rale on the view Britain would soon prospects. Interest was mainly,

ing to a survey made by The U.S. economy remained "stalled at Stock Exchange this morning follow cheaper money golicios fimited to short-dated estes despite

"hot the inflow of

the magazine but most government securities money" the six per cent bank ended fractions higher. rate has produced to give

Dollar stocks posted gains to gold and dollar strength

ACгOSE the week, pared by

The magazine said there was TEXTYCS,

Dealers judged this the major. S. steed 611⁄2 points better. no pande anywhere and few although it got help Fordig bande stayed out of signs of deep-seated pestimism. factor, from the improving naustrial the limelight and Greeks shad- But there was no doubt cut the unbridled opliniam so cutlook at home with strel out-led.

South African golds edged widespread earlier in the year put at high love's and big spending programmes thead, upward and looked firmer after was dead. the belied that the April in the recovery. Coppers showed stalment plan buying squeeze plus signe party on a slightly had only dented a segment of beller Congo outlook. the consumer durables trades unded and the view there was still room for good expansion elee-

where.

such encourage Allied with ments were hopes of averting a European trade war after the Angio-German Bonn talks.

Take-over bids gave sharp rises to the counters involved and those of other palettial

፡

1

The effects lingered in the Tins cauliouness and uncertainly now their downdrift and so prevalent. Businessmer: Young favour Friday. Diamonds sexmed to have been shocked

was at by their own optimim, which went ahead.

movements maticed they found so hard to explain. Na Tow of's but the leaders tarked on

Now they were branding as good gains across the week,

talk of a new Shell were four shillings bet-reckless any ter, Royal Dulch up of a boom and were being extremely in setting sales and modest pound at £13%th.

Rubbers were easier but teas profit targets, Business Week

said. China Mall Special. tended harder.-UPI.

FIRST HONGKONG FUND

ONLY TWO DAYS LEFT FOR BLOCK OFFER!

IMPORTANT

The offer opens on 8th August, 1960. and closes not later than 16th August, 1960. Applications must be received at the offices of the Managers, Hong Kong Unit Fanda Limited, P.G. Bor 690 Hong Kong, or 701 Alexandra House or at The Hong Kong & Shanghai Banking Corporation, The Chartered Bank or The Mercantile Bank during that period.

No

FIRST HONG KONG FUND

OFFER OF 1,000,000 UNITS AT $1.00 PER UNIT PAYABLE IN FULL ON APPLICATION

All shares currently included in the Trust Fund are shares

quoted on the Hong Kong Stock Exchange-

-FORM OF APPLICATION

APPLICATIONS MUST BE FOR A MINIMUM OF 500 UNITS AND THEREAFTER, IN MULTIPLES OF LO UNITS

To: HONG KONG UNIT FUNDS LIMITED

We hereby spply for.....

...anite in the First Hong Kong Fund at the advertised price of $1.00 per unit, in accordance with the conditions contained in the offer and rabject to the terms of the Trust Deed dated 12th July, 1960.

We enclose cheque/money order/cash for

being payment in full for the number of unita applied for. We understand that the money will be returned to me/us in full if no Units are allotted."

I/We declare that I/We am/ame over 21 years of age,

#HOOK $2 for fast (60)

SURNAME(S) In English)

Momer se

Mr. Mrs. Mind,

OTHER NAME(S) IN FULL.............

ADDRESS

SIGNATURE (B)

Telephone, No.

Un

plate under the hand of an authorised officer whose designation should be wisted)

NOTE Detailed information Folder is available from Hong Kong Unit Funds Limited, 701. Alexandra House or P. O. Box 690 (Tel. 28106) or from leading Banks or Members of the Hong Kong Stock Exchange

Shares

Ins.

Bark.. 1190 120 K. & Ala

son What do

Buyers Sellers

202

**

90 901

+Lombard Ina

Waterbond Wwket AK Dock Ch. Prov.

HK & 9. Hotel

HK Land

Yaumati

*

230 20.20

for U.S.

textile goods

New York, Aug. 14. Cotton grey goods sellers last week detected the glimmer of a possible change in the extremely, quiet situation existing for the past three and a half months.

While business in the overall 300 7 91 remained sluggish, mill selling 200 i 90

agents, for the first time in weeks received more inquiries for both apparat and heavy- weight industria fabrics,

1.05 2.70 2000 # 785 106 108 1301 30T 19.60 26.19 1000 20.10

1500 20

401 401

0615 37

179 182

The per capita consumer in-industry is quickly reflected come hit on all-time high of mumerous allied idustries. $1,975 in the second quarter of Thae was both good and bad 1963, and consumer income also in the employment picture.

record high, reaching

There was a more-than-se2= $328,000 million for the quarter.

But a survey by the National senal pickup of 119,000 jobs in Industrial Conference Board construction work, but at the showed that Americans, who came time the number of un- were zestfully optimistic as the employed adults increased by HK Tram 314 31 year began, now have curtailed 150,000 between June 15 and a time when adult buying plans for the remainder July 15, of the year. At the start of employment normally drops by 1960, 48 per cent of U.S. house 40,000. The job increase show- hold heads thought local busied that teen-agers who came ness was good: now only 38 per into the labour market in June cent think so.

were able to and employment, some in the construction trades and most in the tower-paying aervice Industries.

Employment

Ch. Light. 31.40 21.70

HK Elec

HK Tele

2000 12 4015 1000 & 401's 200 G 5735 1400 6 57

3457

225T

· 100 à 57

900 57

500

1000

27.80 28.10 ... 381 3841⁄2

53 5315

G. I. Cement Dairy Farm 28.30 281%

BIL

Watson..... Auled Inv. 5.00 President Eisenhower told the

Most of the adult unemploy-Textile

**** 13.80 country that the gross national

Nanyang Sm product is at an all-time high, ment was blamed on cuta

inthe steel Industry and layoff A. Rutber "even higher than we had est-

R. Trust mated," that employment is at in the motor industry es plants Dock an all-time high of 68,889,000 took a few weeks to prepare and that annual personal income for model changeovers.

is over $400,000 million, another Favourable signs

record. He also noted that the motor industry will sell more than six million cars for its sceond bost year in history (only 1955 was better).

There are some favourable signs in steel, which should affect employment there, There "While you do not see a pic has been a slight pickup in or ture of burgeoning economy at ders, raising the order rate, to this time, you certainly don't about 50 per cent of capacity. see any signis that anyone can New orders are mostly for call a recession or depression," quick delivery and eventually said the President,

may reach the point where

Dr Seymour Wolfbein,, the mills cannot fill all rush orders.

6.30 6.40

8.15 835

53 63%

21.60

The busler consumer price- checking did not materialise into worthwhile buying, but sellers thought market psy. chology www undergoing definite change.

Six cited

the

rensong for change in market thinking in-

cluded:

450 32 ⚫ The ven straight day's of 31 rising stock market prices,

Rising steel putput. Rising personal income, 28.10 employment and retail sales.

Peralderst Eisenhower's 110 385 3003815 optimistic appraisal

business outlook. 500 2815

• A lingering belief that 20.60

inventorials, after 2815 cloth

3000 5.8%

of

the

3% month buying pause, will need to be replenished before 13.90 long.

• Evidence of an improved movement of finished goods into the consumer pipeline.

BUYER'S PRICES

NEW YORK COTTON MARKET

New York, Aug. 14. Cotton futures this week lapsed back into a quiet affair following a short- lived upswing touched off by a smaller-than- expected Government crop estimate.

After posting grains of nearly' $1 a bale, the market et Friday's clase ruled up 16 to off 10 points, or 90 cents higher to 50 cents a bale lower than the

While mills were encouraged preceding week.

19) 140 by the inquiries, they said buyer

Most of the attention centred

kdeas on prices are "next to im-in the nearby deliveries. New 600 11.50 possible," but since their orders Crop months drifted aimlessly while traders pondered the backlogs were still "substantial

HK Gay ...

14.00 14.70

14.70

100 14.70

1930 1935

11.40

12

1.90

1.95

1.80

173

*

Int Invest. 9.03 Mecmo Elec.

ID Goman Realty

...... £75 Star Ferry.

169 Ropes * 2435 Lone, Craw

XD

• Ex. Bonus Issue.

US. Labour Department's man- Forward buying is very light German power

when the limits of rush orders are Duched, then: forward booking must increase.

power chief, was equally sure September orders in sorne caseS there is no recession, but he adare less than a month ago. But mitted that the economy is simply holding steady.

"We don't have in the economy now the real lilt and spark to drive it up," he ex- plained.

Heavy construction contracts also remain strong, bulwarking

better than

the

the national economy. Awards While there was softness in this week totalled $435.5 million, consumer spending, two other lifting tetek contracte for factors worked to nullify this year to date to $4,400 million, and hold the whole economy at nine per cent a level. Business capital out-

year ago. lays were running at an annual rate of $37,000 million and Gov- ernment spending was close to $99,000 mtition.

Spending

Private industry set the pace this week with awards totalling $273,2 million and public awards totaled $162.3 million.

Also indicating continued overall economic strength was

Bank of England

plant

for Korea?

Seoul, Aug, 14. The West German Embassy here said today the West German firm Siemens had proposed to the South Korean Government that it build a 100,000. kilowatt thermal power plant at the Samchok in- dustrial centre in eastern Korea.

they could afford to wait the chances for new form legislation situation out. Little was to be at this session of Congrem.

On Friday, house farm feaders gained by price-shading now in order to book business since one cut out any attempt to pass Flegislation to raise generni pripe concession only whets the ap

supporte

pre-election petite for buyers to seek still

session, However, Representative further reductions, the pro- Car Albert (Denocal. Okla ducers reasoned.

homa) said there was stil ́a

tive

While orders backlogs have possibility for legislation boost- contracted lately, mills said they int price supports on one or two still have enough business ahead cpecific commodities, such as to maintain operations for some dairy products; time. Unfilled orders for cotton brood-woven cotton goods at end July were reported as equivalent lo 13.3 weeks production versus 14.5 weeks a month previous and 18.8 weeks a year ago.

SURPLUS

In the cotton trade, there were further efforts being made to change the cotton pecerantie. One of the propostis advanced was to use the cotton surplus to pay the farmer a differenICE between 60 and 80 per cent of

parity.

Two factors casting shadow over the picture, how ever, continued to be fear of low-priced Imports from Hongkong and other 'low The Government's first crop wage-paying countries, plus estimate of the rescon, published the availability of print

on Monday, totalled 14,471,000 cloths fabrics out of second-bres. The gure came about hands at lower prices.

400,000 bales under expectations Some market analysts felt and compared with: 14,551,000 the second-hand situations bales produced last year and a would have to be "cleaned up" 10- average of 13,710,000 before a definite change in the bayes, markt pattern could be ex- Dept the lower estimate The Slemens offer was on- | pected.

statisticians and there is no Producers of soft-filled sheet danger of notion shortage in the nounced after it failed in inter- national bidding for another ings and bag sheetings express-United States A carryover of 100,000-kilowatt thermal plant od the most concern over import about 800,000 baler from last competition. Goods were re-season, added to the latest for this plant ported still being offered here estimate for 14,371,000 bales trom Hongkong, Pakistan, will provide enough cotton to Formosa, India, Spain and med faced and domestic re Portugal. However, some of quirements and leave a izens the imports have not been surplus,

Paw cotton commeria for the tuken up by users because of poor quality, brokers reported season through Augs: 9 totalled 162369 bales compared with fabrics, the industrial sellers noted slightly more in 2003 bodes to the same me eccondit to the quiries for Bat ducks, number-19st season. looted ducks, coating cloths for the New York Colton Exchange

Service. BumenL--UIFI. this motor trade and drills for shoe

trade.

to be built near Husan.

The contract was awarded to the International General Electric of the United States on August 12.--Reuter.

statement

rates

Consumer spending for the announcement by the De- durable goods remained fence Department that the ad- stationary in the first half of ministration's defence reshuffle 1960 at a rate of $44,200 million. will push military outlays this Home construction for 1980 year to about $41,500 million, a so far trails a similar period of peacetime peak and more than President 1959 by 17 per cent. But this $500 million over la due mostly to tightness of Eisenhower's January estimates. mortgage money. This probably-UPI. will be corrected as the market feels the effects of the Federal Reserve Action in lowering dis- count rates to 3% per cent from the previous four per cent. Already mortgage rates are somewhat softer. Six months ago the minimum rate was 61⁄2 i per cent; now it is six per cent and in some cases 5% per cent. Taking even stronger action, the Federal Reserve Board late Thursday reduced the discount rate to three per cent at Federal Reserve Banks at New York, Cleveland, Richmond, Virginia and Kansig City, Missouri.

The rate had been 3% per cent at these banks, Officials said the action was part of its polley to ease credit gradually, the Today's action brought discount rate to the level it was in the spring of 1969.

Another indicator of the

tionary at a high plateau' predictions waĆ the report on July's retail sales as reported by the US. Department of Commerce. Those viés, wore a seasonally. asjusted $18,300 million, unchanged from July of 1959 and less than one për cent under June of 1960,

Dissenters

The only strong dissenters, to the prediction of continued good --but not great business were two major labour leaders, the Auto Union president, Walter Routher, and the Steel Workers President, David McDermid, Both insisted that the economy is in danger, Mr. McDonald said that, tha zdcessión sirendr hing started and, will be dearly discernible by Christan Rather just fears that a re- crasion. is its the offing needed Mr. McDoneld band his deare on the fact that 195,000 steel. wordber are now out of work and, another 200,000 have basi wedding short weeks. He cop tends fast softness in the siset

Exchange London, Aug. 14.

Business was done in the

umoficial exchange

market £1,791,129,909 morning of the following malen:

10,508 415

The Bank of England statemen for the week ended August 10, reads as follows Notes in circulation. Public Depositu Private Deposits Government securities Other pecurities Receipla Radio

280 45) 553 | UB. dollar (per (1) 334484232 Sterling gotes (per £1)

59 067.910 Australian notes (per £1) 80,052,757 | Zodonesian rupiah (por 170) 13.7 Slam tionis (ver 100)

Singapore (Stadt)

www

UP GO EXPORTS TO EMPIRE

1959

first 6 months

To Empire £685m

To USA

To Europe

1960

first 6 months

6.08

15.83

2017

245

28X7 181

In

NO BUSINESS

Carolina cotton sales var spinners reported new business slmost non-existent, although shipping specifications continued to come in at a good rate from the holsery trade. But general-

ly, the weaving trade continued to mark time with buyerx sutls-, fted to plod along awaiting for

a definite turn in the weaving trade.

S. African's fish market badly

hit by boycott

Hard Abres featured continued Coloured

firmness a burlag, although

Cape Town, Aug. 15,

trawlermen and other coloured and

who

prices were mostly unchanged African workers from a week ago, US. con

handle fish have been bad-

sumers continued to operate only hit by the decline in

a hand-to-mouth basis on for

ward burlap purchases desplie -continuing reports of fiqulfles

at Calcutta from Russia, China, Indonesia, Australia

and New Zealand, Jelentes

overseas of South African" fish caused by boycotts and antagoniam lo apart. beid

Worsted Labrie sales for Cape Town's big trawler con ooring, 1961, were about normal cep Tryin and Johnson Ltd., is In the opinion of woot traders, reported to be reeking new with some mills enjoying a markets overseas in in effort to

tile more business while maintain sales. others reported y slow situation, The company has been forced Agenda Loc formigt worded me to place all of its 800 Cape Town raid they were feeling the slow trawlermen under provisional activity, but attributed the notes of damsel because of a mandy to the fact that they fall on sales of fresh-frozen ash

1991 to Australia.

An executive of the company

abe dealing whereas manca

not really reed