1960-08-22 — Page 2

THE CHINA MAIL, MONDAY, AUGUST 22; 1960,

Weekly survey of American economy

STOCKS SHOW RECOVERY AGINDLAG Prices gain but New York traders London ends quiet Five new aircraft

pickup in volume may be delayed

New York, Aug. 21. General hesitancy, with some improvement in the stock market but weakness in bonds and unet- pected softness lil steel and dutbs marked the business week in the United States.

Business reports continued to be of a mixed nature, especially difficult to Interpret because the economy is going through its traditional midyear quiescence.

Last week's moves by, the Federal Reserve Board to make money for luans to busthess d to individuals more easily ob- tainable have not yet had time to make themselves fel. First, the Board announced rule changes which will have the effect of expanding banks' power to make loans by $3.6-billion. Then the Board cut the dis- count rave to three per cent.

pleased at market progress

New York, Aug. 21.

The stock market needed an advance, In the last session to lift it on the plus side for the week:

pn over-

cut the expected production total.

New cat sales in the first days. The Friday advance

age was the tenth in the last 12 per ce sessions, and also marked the of August were better than for the same period twelfth consecutive session that last year, and up 13 per cent more stocks advanced than de- from a month ago, but still were clined. far below expectations.

The market. In geheral was Saica averaged 17,338 per rather hesitant this past wock 1010. Car with trading slowing down sub- day for August

the previous astantially from makers lad predicted

Market technicians note, much greater volume, and week.

why however, that it is only natural had no explanation of

for the list to take its time after the figures were low.

jtwo weeks of almost uninter- the rupted advance.

ان

from Latest #gures

Department United States Commerce indicated that busi-

Most of the trading commun- fly is pleased that the market

Investors and professionalsness softness is not due to lack has been able to make such pro-

of buying power. The nation's

and foreign news background. personal income on a seasonallygress in the face of the economie adjusted annual rete, rose to

It is this unchanged status of record high of $497-billion last month, an increase of $1-billion the news background that makes experts the market rale. For the most of over the June

far. hesitant, to forecast a sharp and seven months of 1980 personti income was at an an-sustained rise at this juncture. nual rate of $401-billion, an in-l crease of $20.5-billion over same period of 1959.

alike apparently have adopted "hands-off" policy until they are able to assess the impact of the "new miracy" expected to flow into the markets starting around August 25, when the first rule changes take effect.

Meanwhile, the banks have resisted the pressure on their prime rate the rate charges their best borrowers-and have tried to hold it at five per cent. They admit, though, that it ear- tally will have to come down,

FLOW OF GOLD

|

50

the

The general consensus on Wall Street is for the stock market to move out of its summer dold

HONGKONG

STOCK

EXCHANGE

0.

but firm,

and variants industrials steady for Farnborough

London, Aug. 21.`

The weight of money awaiting, investment and reluctance to sell good stock held industrials steady this past week, helping the market Feather Tuesday's shock that the country's July overseas tradle gap still hovered close to the $100 million märk, Previously stocks had soared. on high hopes the six per cent barik ste might be. slashed, particularly dis, the U.S. dis- court rate had dipped, while Germany and Switzerlatid, were working to avoid the embar rassment of the continued t flow of "hot money".

Lagging exports, and with only a sliver cut from Imports damped such cathusiasm. Deal- ers Jumped in the mark down prices in a bid to bring in much needed stock, but selling stayed at the Hong-small and prices soon started Busliiess dotte

Stock Exchange this inching upside again, morning buited to approxt- sistels $745,000. Noon quota liens and the mosting's trans- actions:

suya Mahes 100 1195 HK Bank

king

Bhart

What Co.

E. Asia.

Uston In

waterbolt wheek HK Dock

This represents a live per centrums and trend upward, but not rise in real purchasing power, until domestic business activities Provided. the Commerce Department said, pick up.

and after adjustment for rising · STEEL IMPROVES prices, total income was up al- most four per cent.

HE HOLE!

Yauriti There were not many signs of HK Tram an this happening this week. Steel Ch. Light first production improved slightly but HE

Iron Age Magazine sald

Dairy

:..:

One sure result of the lower ed discount rate will be the

Actually, business was at increased flow of gold from the

the HK TEL U.S., as foreigners cash their all-time high during the holdings in America and invest half of 1950, but the disappoint timetable for a significant up

Cement ment sters from the fact turn in output has been setback where the In other countries higher interest rates still held, that it was not scarly as good again because new steel orders Watso This was admittedly a calculated as had been expected. For the at some mills are lower than they Allied

year were just two weeks ago, Never Textile

Nanys Mill risk or the part of the Federal first six months of this

was, or an average, theless, the magazine said, on Amal felt that the business Reserve, which

cent per

better upturn in mill

business is on Rubber + slimukus 10 domestic business about 42

than the first six months the way;

Rubber would outweigh the loss of gold.

Last year, the Glant US. Steel Corp. was hit Most observers felt that the of

for 1980 had by a strike of its union railroad effect of the predictiona most immediate

already has new discount rates will be to painted a rosy picture of an in-subsidiary which

idled about 30,000 steel workers create new activity in construc- crease of 10 per cent or more.

54 product and prospects for an early settleTalkoo Dock 331⁄2 Gross

national sion, since momgage money will

(GNP), the value of all goods ment appear slim be easier.

al and services produred, was

rcovery.

1059.

ان

Trust

Bilen

13.70

5.00 6.80 11DO A 57%

5000 & 5.00

7.70 7.90 2000 67.55

:

120675 1000 1.70 3000 7.80

3000 7.80

6500+ $31

200 83% 800531

. 24.70

500 @@ 25

14.80

168

ope JEFE Inv.

(CLT) Bar Ferry

X.D... Macao-Elec. 140 Lane, Crav

X.D.

Reduction

The Financial Times Indus trials index closed the week it $27.7, after losing only 1.7 points across the five dealing days.

The week ended quiet but firm. The failure of Kraft Foods 22 million bid to buy out Typhoo Ten-one of UK's "Big Four" tea concerns-for U.S. National Dairy Products Corp.'s stock and cash caused a dif, but Typhoo stealled up on the reckoning the Board later would accept a straight cash offer.

NEW YORK

COTTON MARKET

New York, Aug. 21. Cotton Futures went through another week of prices changes, mixed but showed an overtone of steadiness most of the time.

At Friday's close the list ruled unchanged to up 15 points, or unchanged to up 76 cents a bale from the preceding week.

The

best part of a small interest centred in the nearby months. Involving mill and other buying of a routine trade

nature.

EUROPEAN BUYING

at the Dealers felt

wrek's stocks economic front to sce

New speculative interest in booming again, pushed upside the market continued to be held by more European buying

in abeyance as traders wondered top British equities on favour about the chances for Con- able yields compared with theftgressional consideration of new own domestic stocks.

farm legislation, although most to serez that sources seemed possibility for such sellon now was becoming more and more

Glli-edged ended slightly up side

balance. 001

Japanese non-asserted lost a few points Friday. Dollar stocks made A mixed showing

Teas

remote.

DOMESTIC

London, Aug. 21. Five aircraft or variants which have not appeared

before at a Farnborough air show have been listed by the Society of British Aircraft Con- structors among the new equipment and planes to be seen next month.

The SR-N1 Rovercraft frem The Avio 748 44-seat airliner/ | freighter which made its first the Saunders-Roe Division of fight in June this year will be Westand is also on the pro- making its debut. Ordered by gramme. Since last year's dis four UK. civil operitors, it isplay, when, it carried a squad of also being built under licence in troops, it has been fitted with a India as on Indian Air Force Blackjur Marbore jet engine transport. Designed and built for forward propulsion which in 17 months, the 748 is described gives the vehicle

as a "cheap, sturdy, clelent and speed of some 60 m.p.h. (96 economical aircraft which could | km.p.b.).

well become the work-horse of

the air of the 1960s."

May-

Campaign for cleaner rivers

A de Hayilled Comet 4C is also making is, first showing. It is the intermediate-range sion with the larger. Cortet 4 4B long Comet wing and fuselage. So far, 51 Comets have been sold, 23 to operators An important development abroad.

for the campaign cleaner rivers and coastal

Been waters has

an- #bunced.

in

Handley Page will be showing the Rolls-Royce Conway-power- ed Victor 2, which first few in the February last year and it

Two British companies jointly other end of the size-scale is the Lancashire Prospector Series passessing experience in the 2, powered by a Bristol Siddeley complex techniques of effluent Cheetah engine. The plane is purification have pooled their sulable for crop-spring and resotirees in this field to offer an

ambulance dusting

work, expert advisory service to h- freighting and passenger carry-dustrial organisations and publie are authorities at homic and abroad. ing. Prospector Series 1's

They are Simon-Carves Ltd. already in service in Australia, New Zeeland, Africa, Canada

and Monsanto Chemicals Ltd., und Europe.

and the new advisory service de will be known as the Simon- The latest version of the Havilland Dove taking part is Carves Morisanto Effluent Ad- intended primarily for the in-visory Service. dustrial and commercial execu- The engineering and contract- the ing experience and the research tive market. This aircraft, Dove Series 8, first flew in and process developments of February and, as the result of Simon-Carves, and the intensive increased power, has a cruising research and development work of 200 m.ph. carried out by Monsanto in suc- speed in excess (322 km.p.h.).

cessfully solving its own effluent problems, will place research, The most impressive demon engineering and operating ex- stration, is expected from the perience at the disposal of. In- Short SC-1, which in April, be- dustrial and other bodies faced came the first aircraft in the with similar problems.

**

Washing-drying conveyor system

becante of dry weather in some The SB.AC. say that as it

presents a major technological central and south Texas sections, breakthrough it may one day but any losses there were off-take its place alongside the his- A 70-feet long mono-rail set by better-than-average im toric Gloster Whittle E28/39-- provements In conditions elsc-

the first jet aircraft in the where, a private summary indi- Science Museum in London. cated.

Lethargy spread through the mining market overshadowed by

The Census Biltu teborted African politics and uncertain- tles but a trickle of Cape buying domestic consumption of all raw 22.60 Railroad shares advanced in humphreys

50022 helped keep golds from drifting cotton in July totalled 561,874 Stick prices responded welt

The figure care about 124 1.50 20000 ₫ 1.775 too far. Coppers failed

to, at- bales, to the Federal Reserve action, an annual rate of $488.4-billion 11 out of the last sessions. flealty

10000 1.775 in the last quarter 1959, Union pacic, however, blotled HK Ga

1000 14.65 tract attention while tins which 11,000 bales ahead of expecta- 141 14.60 and the market, is undergoing

spurted early ran into selling Lions, but was sharply below the world-fitted with a battery of with the an- atvest 910 9.30 5000 # 9.15

engines-to convert strang

this performance However, moved up to an annual rate of

sharp $501.3 in the Brst quarter of 1960, nouncement that it has reduced

before steadying up on Friday. 649,878 bilis tised in July lastjel-lift

trom vertical to horizontel flight analysts noted that 2

Diamonds were inclined to eng, year: pickup in volume is absent, and and then to $505.0-billion for the its work force by a approximately

and back again. It was seen at 1,200 workers because of lower

De Beers shading 3/6 over the

Crop news continued mostly Farnborough last year but did thus the strengthening of the second quarter.

The second-quarter gain was revenues and earndigk

week to close at 142/6.

favourable. Some private re- not make a flight demonstration. marke: must still be called a

and rubbers staged quiet and ports mentioned Utilities edged up in 10 of the

delarioration "lechnical adjustment" rather only 0.7 per cent, compared with

a 3.1 per cent gain in the first past 11 sessions to their best level

slightly easter-UPI. than a true breakthrough into firm higher ground. Such a quarter, but that first-quarter on average since June, 7, 1930.

was aided by a burst of The announcement by the breakthrough is expected when gain

business activity following the government of record gross na- domestic business picks up.

in the second

Chicago Aug, 21, Such a pick-up may be delay-end of the long steel strike. tional product

Industrial

pro- ed. Steel loitering in its Chief weakness in the GNP was quarter, stendy

decine estimated at 5.4-duction in July and record per- Caterpillar Tractor Co. an- uptura of operations. A mild 3 improvement. wus noted two billion, in the annual rate at sonal income in July failed to bunced that about 3,000 em-

Raw cotton exports for the weeks ago, giving rise to a feel- which businesses were adding to stimulate investor interest. Dis-ployees in the Peoria area would closure of a rise in short interest be laid off August 20; re-

season Through August..18 ing that the turning poim had their inventories,

totalled 196,736 bales Véreus This slowing in inventory on the "big board" to the high- dicing company employment in been reached and that the sea-

New York, Aug. 21, 38,807 bales last season, accord- Boral improvement had begun, buying reflected the slackening est level since mid-May helped the area to bout 20,000,

on Most improve sentiment slightly

Electric Autolite

the New Mr H, S. Eberhard, compony

Company ing to

York Cotton which would in purchaser demand. an improvonent be steady tad strong. But this companies were trying to bring Friday. A large short interest president, said the reduction and Hiller Aircraft Corporation Exchange-UPI. week's orders did not bear out their inventories into better line which must be done eventually sates, though good, had not been merge, the presidents of both

represents additional

was necessary since first-half have signed an agreement to

that optimism, cnd at many

as high as expected. -- China | companies announced. major mills this week's orders

Mall Special.' were smaller than those of two weeks ago. September orders do

not have the expected strength.

BRIGHT POINT One bright point, and an im- portant one. Steel is being con sumed at a higher rate than it is being produced, so new orders must come sometime in future weeks, Steel output this past week was scheduled at 55.8 per cent of capacity, and last week's actual production was 53.5 per cent, one per cent under the schedule. Strikes in Pittsburgh

with eales.--UTY.

SALES

buying

Sales this past week slipped to or 2,939,988 shares per day the week before.

Bank of England 13,702,603 shares.

statement

Was

Exchange ratés

was

done in the local Buttheas unofficial exchange market this morning, at the following ixles: VS, dallar per ) ... Sterling notes (por ₤1) Australian nules, per £1. indonesian rupiali (për 160) .. Slam thals (per 100)

26.3 Singapore Strasti)

Agreement

to merge

Taims of the merger call for Autolite to exchange one share

comunio of its outstanding stock for each 44 shares of Hiller

บ

Stanley Hiller, Junior, Hiller president, and R. H. Davies, 5.58 Autolite president, said.ap 15.38 proval would be sought from stockholders of both companies within the next few months."

Chiria Mall Special.

123

181

American Motors which an- nounced new styling changes and forecast a 20 per cent jump in sales of Rs 1981 models, London, Aug. 21.

state the sales leader with volume of The Bank of England

2.85 Aug. 328,700 shares. It closed up 1% mest for the week ended

ht 2912. 17, reads as follows:

£2,257,762,22

helped by s good earn- Aveo, Notes circulation Publie Depoelta Private Deposita...

16.49gs report, was runner-up with 295.7482 sales of 300,000 shares, and Government securities 379 310 31

58 303.ll finished up 1 %. General Other securities Receiple

43.403.31 Motors, Lockheed and Glen Hatio

Alden rounded but the top five.

I

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CM

94

UTI

The Dow Jones averages at the close Friday showed 30 in- dustrials in 3.09 points on the week to 620.27; 20 ralls up 1.38 to 189.73; 15. utilities up f.48 to 95.53, the best since 08.03 June

7, 1930, and 65 stocks up 1.71 to 208.95.

001

Stock movements were in. fluenced by various company annor meements and bits of news, market letter recommendations

and merger KALIMOUTH,

Of the 1,425 issues traded this past week 812 advanced, 489 de-

COTTON GREY GOODS

LACKING IN BUYERS' INTEREST

New York, Aug. 21.

slined, and 124 held unchanged. The cotton grey goods market this past week con- tiniled to be a dull affair, apart from sporadic

New, 1960 highs were reached by 194 issues and hew tows by 33. -UFI.

China will have tin problem

Synthesis gas

plant for Japan

A

washing and drying con-

veyor

system for a Czechoslovakiah firm (No-, vä Hut Klementa Gott- Walda Factory In Os- trava),

manufacturing

car and commercial yehicle wheel rims, has been completed by a U.K. firm.

contract from Tokai The machine is designed for Ruyan KKK of Japan to continuous washing, rinsing and design and produce pro- drying of rims and dises prior tess plant to treat to assembly and spot welding. The parts are hung ca flings Aumonia sydhesis gas suspended from the mono-rail has been placed with and carried through a prolonged P. G. Engineering Ltd, and powerfully jetted washing delivered by banks & member of the Power treatment

to ensure of jets positioned Gas Group of Stockton mat all surfaces of the parts on-Tees, North East are thoroughly washed. This

England.

use,

followed by a similar rinsing treatment and long London, Aug. 21.

The plant will deal with half duration hot air section from Communist China may soon

a million cubic feet of synthesis which all parts emerge clean. have to decide between gas an hour. It consists of a uid dry. exporting its tin or using high pressure carbon monoxide the metal in domestic convertion unit, using a catalyst industry.

specially developed by the com- According to the monthly pany for high-pressure magazine, Tin, Peking is striving followed by hydrogen sulphide to produce every ounce it can and carbon dioxide removal in to help tackle its balance of pay-a two-stage, plant. The firm ex- ments problems, particularly pect to complete the order with Russia,

early next year. current tipplate im China's ports are not large but canned commiturients under recent trade agreements are heavy..

The big advance in Chinese steel production, and packaged

Floating dock to

food tot sales abroad will even- unload TV gear tually lead to Chinese Unplate the production, especially as

Unbreakable drunis produced

The

and small Bilylilg in a few sports wear fabrics is trying to achieve in- A floating dock had to be These and Industrial specialties.

In fact the prolonged absence The buying pause in pilot

|while stille moved some weavers

dustrial power status, the magazine said.

Then If Rissin's Industrial development achieves its target

toughness and te- bilience of nitrile rubber Has enabled a U.K. irm to reproduce a 50-gallon drum which can literaity be bounced off a lorry without fear of damage: drums are maile of used in Port Adelaide nitrile rubber-coated and im- recently to unload the pregnated rayon. They are first colour television especially useful for metal or Butt Interest on a worth-cluths, dating back to late April, of running level wills the United equipment to be used in purpose applications such as the transport of liquid synthe- Australia. pokriedy dinonstrated by States and she is denied access

tic resins. of print cloths and sheetings to word that the unfilled orders to Chinkee. fin resources,

The equipment was shipped announce plans for a further backlog on print goods, as of acute shortage could develop in

from England to provide a The problem of corrosion cutback in production.

end-July, was down 41 per cent the Soviet bloc Communist series or closed circuit medical and the resultant contamina- from the year's peak at the new The article 'sald BUYING PAUSE YEL Statistica showed the bick-research scientists were prob- telecasts. The first audience to tion of contents often en- Log down 10 696,000,000 from ably working to provide, sub see colour television will be countered in metal, drums, does stitutes for tin wille Russin 200 doctors who will watch a not arise. There is little or no Some inlils weaving class ""-1,185,000,000 yards.

While cheeling, were myeparing to the backlog has been maranthuers were being told medical demonstralia at the elak of bursing since the walls

ere almost 3⁄4 in. Uiler. rout-day three silft bas

The

being it same time have the United States with no thi

telecasts are God the day schile offer the mill vento economise on the metal. But Royal Adelalde Hempital.

The drums, which may be chat Firëtyre krine dilately; willis risen 22 per cent, reaching resources of her but has far atranged by an international

spkran facturing folded when empty can yards versis greater Incentive to find sub-pharmacotical First Honglong Pandahaldinig bagging goods said cure | 130,000,000 Buying Price ** * $0.50 Frent business did not warrant 110030,000 yards in January-tiltiles and is fad tot að gær þompany service to the be made to special order in

riedical profession. UPI Seller Pride

1.00 present schedules.

Agreed merchant

rates

Canadian $, Maximum Sell-

ing. 17 8/32 T/T, 1 1/2 0/D

Unit trust

sticce

larger sizes.

*