1960-11-28 — Page 2

THE CHINA MAIL, MONDAY, NOVEMBER 28, 1960.

Weekly survey of American economy

STRICTER MEASURES?

to

U.S. citizens may need tighten belts

New York, Nov. 27.

The United States may tell its citizens in

HONGKONG End of week rally LONDON

STOCK

EXCHANGE puts Wall Street

by

Our Own Correspondent

Business done at the kong Stock Exchange

Hong-

this i

mately $3,400,000. Noon quota- tions and the morning's transac- tions:

the months ahead to tighten their belts morning amounted to approxi- if current government-level efforts to right America's "adverse international payments position lead only to half Bunk measures.

The failure of the Eisenhower administration's mission to achieve all its objectives during its talks in West Germany this past week, the indicated simi- lar failure of the talks in Paris and London, and the domestie furore over the ban of armed forces the possibility of dependents Overseas indicated much more severe measures ahead.

Johnson currently visiting West- ern Europe,

Sharm

Buyers Sellers

Sgica

..

BBC E Acha Lombard

1590 135 40 1935

210 100 200

#24

Untera 1834

120 400 124

238 27.CO 1.53 $1,00

·

Wharf Co Watchout Wheelnek

123

112

114

Ch. Prov.

22.80 22.70

With the payments deficit eur. rently at on annual rate of about

This may have been a clear HK & S. $4.000 million; the level of U.S.

IK Land gold reserves below the 18,000 political move, precisely because Hotel million mark for the first time of the failure of the Bonn talks.

the U.S.Yamali 21 years; and the fact that Political cbservers

Giderare inclined to belleve that the Proeldent Eisenhower's restricting

permmud Kennedy administration would Elsenhower's embraced was designed to save only abriu have

metres, bad they succeeded. BK Tram.. $1,090 miliampally eranemists believed that clearly. As it is now, Kinnedy and his ent

some

far more than the present emer-

いいじ measures

necessary,

may

erinomists will have to think of

Younali Bonuk

"became, semething rise. Exactly what. Elre.

this will be. nobody knows the Tein But it may well be a prestal, combination of a softer scal Tete.

allies approach to America's overseas plus one type or another of belt-tightening at home.

Su far the freedom of private taividuals and enterprises to buy foreign products, travel #brunch or invest foreign countries' was left untouched. If efforts to increase U.S. receipts of foreign exchange by export- ing more, by attracting more tourists to come to America and by reversing the present outward Bow

short-term private expital fail to do the job, these economists believe at least some sort of a voluntary belt-tighten- ing may be called for.

of

RESPONSIBILITY

19

4.80

2000 0,55 450014 0.00

5000 kr 955 09 114 $IME 174 1K 120 100 m 184 2600 or 113 507022 1030 22.00 1300 12,50

3% 13%

69 69%

2000 $31%

1405

169 107

09

GO

2520 25.40

Right

20.10 20.30

Compost

Watson

Altbed

A joint congressional com- h:s already ordered mille peble hearings next month to Dalry review the demestie und Inter- national cennemie trends which will, confront the new president.

and government i Nine private

were sum- economie experts

testify before the moned to

economic com House-Senate mitico in hearings starting December 7.

64 135

450 10 001% 109

GOT 12

on higher ground

New York, Nov. 27.

The stock market celebrated the U.S. Thanksgiving this past work after all, just when it appeared that busi- ness would be slim indeed.

A fairly substantial rally Fri- day afternoon carried the 1st into higher ground after three consecutive sessions of desultory

time, dealings "marking brokers called it. Thursday, of course, holiday conditions pre-

valled.

Kained

The overall situation seemel to confirm the observation that the stock markel isn't a stock 600 22.00 market at all but a "market of

slocks."

The big blue industrial chips a little round, it is frue, but the recent blandness of their performance indicated that traders were awaiting a firmer stage to be set for a hoped-for year-end rally.

Instead, board-room jockeys 3500 25.40

to become 10253) were forced

selectively-oriented than before focusing their atten- tion on the "specials" those romantle high-flyers sprinkled among the electronics, bowling issues,

vending machines others that are priced high in- relation to earnings.

23883215

5025.39

507 v 23.59

230 29.30

390 3714

$60 ( 23.59 4300 33

2009 500 00

100003

20031 30503% 100763!

+

Farm 234

2600 in 337

3400 231)

343%

7.03

30

700 39

500 7.40 900 7.40

Texte

2.30

While the U.S. payments deficit is bound to be a sub-

jeel of these hearings, their

be

emphasis is expected to be on Nonymu! ... domestic isques. In par- A. fubber ticular, Kennedy is reported!

10.40

worried over

the

possibility.

These analysts point out that the savings that need to be made i are not so great on a national ectie that they would not made voluntarily if every busi- nessman understands his resS}{M=" sibility. As a start, this may take some educational campaign on the part of this or the next administration rather than it set of orders the violation of which would be punishable,

One method of this belt- tightening, these Sources say. would be for an American buyer

of Increased unemployment as R. TrusÍ

all avallable Koverament sludies

7.20 1000 M 7.30

4CHUD for 7

3000 or 1,00 1000 / 2,05 1000 7,00 2000 7,05 02 1030 0.70

500 & 9.30

500 or 9,8! 250 1.80 1000912 10% 7000 10 5.30 5.01 1000

1003359 15000 5.32 7000 or $.83

3000 2.05 1850 in 7.35

760.54 0

7.53 7.00 2000 6

indicate the jobless Taikoo Dock 0012 total may climb above five fumphreys million by the time the new president takes his office on January 20. Kennedy's

or investor to consider more row said to than immediate economic advan- 14ge and prent: 10 choose between decisions that will in- Crease the outflow of dollers and decisions that will minimise the outflow.

If such self-dicipline does not work, these economists say, the fernative may well be some unpleasant further measures that would affect the private as well ON the government sector of America's economic life.

43

1300 26.30

507 pr 25.40

2516

7500

Really

1.925

1.93 25000

20.00

1.923

5000

1.03

Star Ferry.

161

Ik Gas 15.90 and

5000 1.025 164 330 183 16 22:00 / 16 200 10

Agreed merchant

counter-measures, be under study. would centre on greater

11000 15.00 cheaper louts to small business,

4100 & 10 not be lax reductions would

1. Craw... 1

300 $2 800 642 considered, unless the new ad-

inds itself faced Inti Inv. 10.40 0.60 3000 10.40 ministration

2.025 2.55 200002.025 recession of Gilman with economic

Vibro. 214

300 @ 21 serious proportions.

Underwriters 11.35 01.80 The worry over a Turther Maczo Bec. 12.20 jump in unemployment stems from the fact that so far in this Jast quarter of 1000 there has been nu sign of the long talked- of

Steel economie rebound. companies said their operatious In any case, these measures, were likely.to move even lower whatever form they take,

in December as the big car will have unpleasant re-makers are definitely set to cut percussions

among Amerien's back on their new orders to overseas aliles and friends steel mills. The steel operating

they

all will

be de-rate 13 39

week, for example, cut signed to

doliar down

dropped to 47.5 per cent because spending abroad and forelgu im- of The Thanksgiving holiday, ports into the United States that bringing the total November these allies will take hard steel output to the lowest level could be seen this past week for a non-strike

from relatively inflexible position | April 1958, of West Germany

when con-

Fronted with ♪ set of fiscal

demands from Washington,

month since

There were further layoffs in us Phoenix the steel industry Stoc announced it was closing Pennsylvania, ita Harrisbury,

Following the failure of the Donn talks, at least one spokes- plate mill next month, throwing man for the incoming Kennedy 1,500 employees out of work, In the car indusky, Chrysler administration hastily tried to divorce the future American corporation announced Layoffs government from what he called and production cutbacks which steel the recent menetres of Eisen- pushed the corporation's hower administration, This was orders from December well intol Vice-President-elect Lyndon B. January-UPI.

rates Belgian Frones: selling, 804.

on

more ever

and

The defence shares, highly rc- gorded by analysis who expect hncreased government spending ware all up with in this areu,

rising 3. Martin

Getters Dynamics 3% and Thiokol 3, All were helped by the succes- slon of space shots this pus: werk.

STOCKS

DROP

But announcements

NEM

NEW BRITISH RADAR FOR USE AT SEA

U.K. radar firm has introduced an entirely new technique for obtaining range and bearing measurements at sea.

Known

SU

building

the for American Line: In of British Rall- Ferry Ser- new ships

London, Nov, 27. Mounting evidence of the

cumulative grip of Bri- A tain's tight credit squeezo on industry changed early market uneasiness into

the Interscan, N/B310 depression, driving down

technique, it is a continuously Holland industrial stocks across the visible line which appears on the live vessels board at the week's close. dispiny: originating from own way Passenger Entier in the week the market ship's position. By the variation vices; and in was buoyed by hopes of heavy in length and the direction of for the Hamburg-South Ameri- re-investment of funds from the this line, range and bearing in-can Line. Us. Ford $363 million bid to formation can be obtained in the

The set is one of a new series buy out its British offshoot and

shortest possible time and with government's new bill

great accuracy on any number of marine indar which increases the widening the field for trustee of targets and on any type of the firm's enge to a total of

opening up

presentation, relative or true, twelve sets. funds investments better eloss equities to such stabilised or unstabilised.

Four new 3 om, radars, com-" Revlon racked up a fat. 84-money.

their lo Lhis

existing of Ford Oblaining

Information plementary

of seven sela, are now point gain on rumours the com-

going on a four-day week and easily and reliably is a vital series pany would market.zoon a new "wrinkle-remover." Fibreboard General Electric's price slash, fector in achieving safely at sen available and bring the full 3 cm, to be combined with fears that some particularly in congested areas range to eleven_vadars,

known as the D.11 series. At Paper Products dropped 3% In

Anance houses were where plots or records of bear- a sliced dividend, of the

the same tline a new Truc reaction to Ail the vending shares respond-running into difficulties, broughting change must be maintained

for many targets simultaneously. Mollon 10 cm. radar is out the sellers, ed upward to optimistic state-

ncunced, Equipment operating Soveral recent collisions at sca by industry omcials.

where vissels have first detected this wavelength has hitherto mente

and Universul

only by each other at ranges as great as been manufactured Vendo rose 0% Match 5%-UPI.

12 to 16 miles, have been altri American companies and the the TM-S buted to confusion in maintain Decca equipment, hig clear record of bearing 2400, is the arst British reder of ils type. It provides a number change.

technical and of important The interscan technique makes cperational features, which are the now Decep True Motion 969 entirely new to 10 cm, marine sixteen-Inch display model the radar. For the first time the most advenced high quality standard of the radar pietine marine radar available anywhere and of the display facilities is in the world today, it has been comparable with the best of developed from the technical 3 cm, radars. and

operational experience The company claim that this which Decca have gained in ft-series of twelve sets represents ling over 10,000 ships radar. the most comprehensive and

Bank of England

statement

London, Nov. 27. The Bank of England slate ment for week ended Nov. 23. reads as follows

Notes in circulation. Pubile deposit

Private deports

£2,237,541,973 14.613229 327.007,404

Government securities

INDEX DECLINES The Financial Times index dipped sharply. Over the last two days it fell 10 points and ended at 303,8, suffering the biggest decline since the spring. 1.8 points only It was now from the year's low at 295.8.

decline The week's

was 11.3 points.

Imperial Chemical Industries lost nearly four shillings as did Courtaulds.

Stores were worst hit with Great Marks and Spencers and Universal off about & shillings each and Woolworth off six.

Stoel, engineering, bank and properties Issues all joined the retreat.-UPL

384,534,249 with

52371,200 £3.007.132 12.3 -UPI.

GLOOMY SIDE Business of course, continued

the gloomy side economists finished debating whether the nation was In a recession and arguing Instead on the specific quarter of 1961 in which an upturn could be ex- pected. The general result was a stock list which showed little inclination to move very far in either direction,

Balancing out somewhat the lack of stimulus from the busi- ness front were a couple of bullish technical factors. Most important was an announcement that the short interest position un the New York Stock Ex- change on November 15 stood at its highest level since January 15, 1950.

A large short interest position is considered bullish since the short sellers those that sell borrowed stock in the hope the price will go down must a! some time in the future huy back the stock in order to re- turn it. This future buying re- presents a cushion to soften any decline от accelerate advance.

In addition, technicians were encouraged by the "respect" shown the 600 level in the Dow Jones Industrial average -- still considered to be a heavy band of resistance to decline.

A group of prime beneficiarles

to the large short interest boost were the nation's gold mining Meximura shares which also responded to news that the nation's gold hoard had dipped below $18 billon for the Arst time in 20 years. Homeslake rose 3%.

·

Exchange rates

Business

was done in the local unalticial exchange Inarket this

oming at the following rutes:

5,00 US. dollar (per $1) .............. Sterling noles (per 1) ...... 15.03 12.70 Australian notes (per 1 Indonesian rupiah (per 1001

3.20 Sun Meals (per 100) Singapore (Siralts)

Unit trust

FOOD SHARES RISE An indication that investors are still deeply concerned with decline extended business

an

came from a general rise in the food shares-considered to bu 2015 "recession-resistant," California 1.co Packing rose 4. Continental Packing 3%, Corn Products 431⁄2 and Hershey 4%.

Retall Trade, which is ox- pected to continue ins n strong bulwark amany the sagging business Indicators, ahowed American Stores up 5% (on seiler price: higher earnings) and Associated

Dry Goods up 4.

First Hongkong Fund: Buyer price: $1.04. Seller price: $1.11. Special offer $1.07.

BOEING JET

★ AN EXCITING INNOVATION - THE PROMINADE BAR

★ SPECIALLY DESIGNED KING-SIZE CLUB CHAIR,

★ THE GASTRONOMIC TREASURES OF THE FRENCH PROVINCES

THE LATEST TECHNICAL PERFECTIONS IN ENDINEERING OF THE NEW BORINO,

PERFECTION IN "JIT" TRAVEL ON THE Worlds LARGEST AIR NETWORK'

Other securities Receipts Ratio

ал-

I has already been ordered complete range provided by any tte for installation in the S.S. France manufacturer throughout for the French Line; in the world.

Great NEW Cigarette

Discovery!

the

ALL-TOBACCO

TIP

*

for that ALL-TOBACCO · TASTE

Gold Crest

GOLD CREST is a dramatic new concept in cigarette making-the first and only cigarette with the exclusive all- tobacco tip that gives you the all-tobacco taste you like. Developed through the most advanced research in the tobacco industry, the all-tobacco tip on Gold Crest is made of myriads of finely cut strands of golden tobacco. The unique action of this all-tobacco tip refines the smoke and adds i to the flavour and aroma of the superb combined tobaccos And this all-tobacco tip does not dry out the smoke-you- enjoy the true taste of a fresh cigarette.. Discover the- gloriously rich mellow and satisfying all-tobacco taste of Gold Crest.

*PATENT PENDING

$150

for 20