1960-12-05 — Page 2

THE CHINA MAIL, MONDAY, DECEMBER 5, 1960.

Weekly survey of American economy

'BELT-TIGHTENING

SIGNS SEEING

New U.S. fiscal Wall Street shows

policy abroad

New York, Dec. 4.

"bell- The first unofficial signs of a

tightening" U.S. fiscal policy abroad appeared this past week.

The bell-tightening, in its faint outlines so far, would only affect large-scale private enterprise spending abroad, in particular the type of transaction recent- ly announced by Ford Motor Company, in its buy- up of English Ford stock.

,

LONDON

CLOSES DULL

London, Dec. 4. Stocks ended a hectic and depressing week on a dull nato despite a fair re- Covory from "Black Mon- day" when the industrial index set a new 1960 low.

of Dealers blamed the rash small losses Friday partly on the on whether uncertainties

for complete U.S. Ford bid

sub- uwnership of its British siltary Would go through.

Lruding equities and variter the, beller been buuyed up on

million in much of the $363 volved would be available for free-investiment

A

While no official step has been announced, Ford was seen in be under government pressure fer having made the move at a time critical outficw al When the doils and gold is the No. 1 pennmnie problem in the United Stales,

Washington is making it clear frow on any that it would similar move in the future.

declines

New York, Dec. 4.

The stock market ended November and

began December with declines.

than a month, but recovered sightly on Friday.

The late improvement faited vl Jori attract any

and there- aggressive buying fore must be considered simply a technical movement, brokers sald.

While the #st closed lower on November 30. it was high for the month as a whole. It

the

consecutive to second

rarlly A advance. monthly was, for 1980.

Prices moved lower in the first four sessions this past zweek, with the Wednesday decline the largest in

more

HONGKONG

STOCK

EXCHANGE

by

Our Own Correspondent

Private Airerican investment abad is currently around $30,000 million. Not long ago. I was ill hailed as the soundest way

enecuraging industrial. do velopment abroad, and, conse

increasing inter- of quently,

Business dono at the Hong- Now it is the national trade.

here as spotlight

one of the kong Stack Exchange this morn. major Icetors--next to militarying amounted to approximately and economic aid-of America's $4 million. Noon quotations and current internat/artal payments the morning's transactions:

* Shares difficulties.

Buyers Sellers IK Bank. 1435 1440

Most of the market's early weakness reflected the lack of

general. Improvement in the business background and sell. im for tax purposes.

ди

Sales this past week amounted to 16,808.050 shares, or average of 3,361,790 shares per day, compared with 12,709,925 shares or a dolly average of 3,177,401 shares in the preceding holiday week.

MOST ACTIVE

American Motors, which re- shuffled its top brass apparently in preparation for more active participation in the International car market, and also raised its dividend, was the most active issue on sales of 402,280 shares. It closed at 19 off %.

Drastic measures may

be needed to fortify U.S. dollar

New York, Dec. 4.

NGINEETING

RAPID

FILM PROCESSOR

DEVELOPED

London, Dec. 4.

A United Kingdom firm is now marketing a unique rapid film processing equip ment which has now been developed for commercial purposes.

Basically the equipment cwes much in the original military equipment which was designed to UK. Air Ministry specification to provide a large bright screen

graphed from a cathedr ray develop- day.

display of radar Images photo-

The administration's recent moves to plug the U.S.

Present "too little and tools. gold leakage may prove late," forcing more drastic economic surgery to cure the ills of the dollar.

Cotton

goods review

New York, Dec. 4.

past

Standard Oil (New Jersey) which slipped steadily into new Cotton gray goods markets

this were listless week,

with wns runner-up

week. 1980 low ground most of the and volume of 310,200 shares Anished off 1% at 30% on the week. NAFI Corp., involved a merger rumours (denied by the A) rose 7% to $33.

Transitron and 237,200 shares. 29 at 1435 Ampex round out the top five

most active.

Brics 5919 70 1435 23 1440 320 1435 1410

120 1425

101435

OUTMODED TAX LAWS

private Current critics

Say out- American investment

tux laws make it

for America moded U.S.

Lombard Ins

4312

AS

ins. Lion

124

100121

What Co. 270

£.55

0.0 11000

103 or 276

1.00

20029.54

200 110

1200

117

Ch. Prov...

23.82

24 500

400

23,00 23.11

mure attractive

go to already de. Sapllat to

str:h countries, veloped

Europe, 10 Western cheaper goods in direct rompeti- tion with higher-priced Amert-HK Deck ... can exports.

produce wheelock

The British Ford chairman's assurance that the U.S. parent compatty was Bill going ahend with the project came well

They urge a revision of car- after business hours on Friday.

poration tax laws to curb the cheerful surves of the

into developed flow of capital business: outlook by the national

countries and channel it into

or HK & 5. Institute

countries of econonle and underdeveloped

Hotel the underdeveloped areas gradually. K and effects of resourch social credit squeeze and fents that

These critics say, take ho Hiustry United States moves to help the

make use of the typewriter dollar might eventually

where American November's production has been shifted to higher gold and dollar reserves cheaper plants abroad with the Younat figures did lie to niter rent-production of foreign-made type-Yauat meat.

an impact here were other de- for instance. presalig

factors.

STRENGTH

ིིཎྜ

1:4 117 700 126

1.15 110

writers now taking almost one- third of the American market as against only two per cent some tea years ago.

Benus

100

H15.

IT Tram

34 342

Ch. Light

X

27.20 27.40

The big fat Monday, which eet 4 points from the index in previous tw of penetrate the

at May at the new ne 295.2.

cume

Brough indre

tactics

dealers' manklag down than actual selilag volume class

stock ut. bargain prices,

Over the week, the Financial Times Industrial Index lost

only 3.1 to end at 308.5-an underlying in dleation of

strength in the face of adverse factors.

While most

lower tobaccos

ย

leaders firmed,

The car industry is another rak. Just before the present crisis

the bulling Ford and General announced plans for billion

came

point,

Motors

investing some hair'a

dollars

abroad next year to

Jaunteli massive

counter-

United

attack to the foreion car im- port market in the States

Part of this plan would be to ended produce a U.S. designed small This may get a stures car abroad.

tonk battering early the sound move from the U.S. point

staged a recovery.

3900 24

200 23.90 1700 of 23.90

207 2 23 ,19

2000 431

4138 73

200 721

850 13

400

2400

12

400 72

500 or 116 118

100 100

21340P

500 343 400344

On

on

some This is the opinion of

United economists queried by Press International on the pru- spects of success la reversing the adverse U. S. balance payments.

Di

The decision to recall free spending military dependents back home and a "Buy America' policy for government purchases may fall to turn the tide of the gold

Doubts

on

ments of that equipment cover ful mercury or xenon are lamp

all sizes of film in general use and and application in scienii- Ac, Industrial, commercint and entertainment fields.

The first public demonstra- Colour Raple of tion Processing was given by the makers (Kalvin Hughes) at the last Farnborough Air Show and Exhibition. On that occasion colour processing of characters on a cathode

ray tube achieved in 25 seconds and pro- fected on to a large screen for daylight viewing,

WIS

outflow significantly. i The equipment is being used

this score were on a world wide scale for thei heightened last week by West large bright screen presentation Germany's refusal to help foot

the bill for U. S. troops stationed

in the country.

a lang The government has list of stronger remedies to fortify the dollar, but the ques- tion is whether the pallent is sick enough to justify their pre- scription.

Prices on both print cloth and sheetings were casier, With demand slow and prices

The government could restrict many constructions below cost.

American travel abroad or place a number of mills were reported

limits on the amount of money to be curtailing production.

tourists could spend in foreign combed and countries. American. tourists Buyers of both The Dow Jones averages on

30 Industrials carded. knitting and weaving sperid about $2,000 million Friday showed 596.00 of 10.47 from the pre- yarns became cautious ceding week; 20. rolla 128.12 result of persistent price shading off 2.01: 15 utiltjes 95.38 offing. 0.07 and 05 stocks 190.01 of 2.65.

15 G year abroad at present. Such a

course it is thought, would be taken only if the threat to the dollar becomes acute.

quiet Wool' prices

Rayon grey goods were but prices were steady. Borden paced the food stocks markets were slow and with a -point gain. Quaker irregular.

Buying of sisal slowed down Oats jumped 5%, Gerber 5%. National Dairy 3 and General following a brief burst of ac-

Demand Foods 2 Mays jumped 3tivity.

was confined and Korvette 3 in the stores. nestly to Brazilian grades and The Industrial average was came from overseas twine pro- pulled down by losses of 7 points ducers.

SECURITIES

Central control

system

system

to

a

fa: discrete displays normally appearing on a end. The image the flim is photographed and transported to a jet spray pro- eliher à cessing stage where pósitive or negative innge is produced in as little as five seconds. By means of a power-

The film is then projected as a large bright screen theatre type display. The flim rebord is of archival quality and thus pros vides a permanent micro copy recording. The process lately autematic and can pro← cred

for continuously

dnya. Under normal etadions the only interruptions in a lengthy un are at 10-hour intervala. Iow and then only for the minutes needed to renew Atm.

been The equipment has used for tactleal military, and civil air traile displays where a large screen presentation is used to show älteraft operaj tlong,

is en-

Univac scores a victory

In this instance the processor works

with In conjunction normal redar antenna syalcine, In the ecleatific, industrial and commercial spheres, the equip- ment has found application as an off-line etaputor processor Tha first British central monitor, as a means of provid

ing information, page by page transmission, control

be for

subsequent British for providing bright screen installed built vessel was fitted in display infonnalion for benks the Aberdeen trawler and stock exchanges, and for many other applications where Hazelhead in 1959 and rapid access viewing, are the proved itself controlling requirements. A new has since after a full year's fishing medel designed for operation in all weather round the using 16 mm. flim fer positive, negative or colour 'processing is north coast of Scotland.

avallable.-LPS. The wheelhouse console, pro- duced by Bloctube Controls Another overuse open to the Limited in association with S. Lid. Incorporates government is curbing the sale G. Brown of securities in the United States duplicated hand electric stear- an electric which ing controls for by foreign corporations currently total about $800 m hydraulic steering engine, main lion. But such a policy would engine controls and techometer. дис undercut U. S. postwar offorts to an engine room telegraph

pro- variable pitch encourage a Ireer international repeater,

peller flow of investment capital.

controls and pitch in- dicator, helm and rudder angle Business and industry could indicators and a lever for be restricted from transferring clutching the main engine. dollars overseas through invest- A servo steering metor is plant and provided, as well as push but- ments in foreign

ton steering controls; in equipment which now total an

This there

According to a story in the estimated $30,000 million.

art four independent

Univac, York Times, be achieved by could

of steering from the New methods

with with two. ernment licensing requirements wheelhouse,

alter-working in co-operation

Amerlean Broadcasting Most native and exchange controls.

power units geared to the

network Television observers rule out this possibl- the Donkin steering engine aft. Company

An Arme-Brown gyro compass first announced the election of lity.

automatic helmsman John F. Kennedy at 0.00 pin on There have been demands from and an

There are also election night. 5.07 some quarters that the tax ws can be fitted.

Computers used by the other U.S. warning signals to indicate an 11.02 be overhauled to make

two major United States televi- 12.10

investments in foreign "develop- overload on the main engines,

One or more of these con- sion networks did not predict 28.15 cd" countries less attractive. I

exhibited at the the result until 8.12 pm and 8.30 1.81 is argued that the "outmoded" soles will be

Marine

Welding pm respectively. system

encourages Engineering,

Univac's preciseness is oven tio American industry to compete and Nuclear Energy Exhibition

impressive when at Olympia, London, from April more with the U. S. export market by 20-May 4, 1961. by Bloctube dramatic closeness of the election

manufactured goods

are now is considered. Though Kennedy Controls Ltd., who abroad at cheaper prices than developing them with Marconi waz ahead in the earlier stages Nixon counting, domestically produced products.

and other instrument makers to of the vote

In the late Other recent suggestions to include navigational as well as gathered strength preserve the "integrity" of the control and communication fael-voting so that the final result One of their latest as of the election was not known dollar include the removal of Illes.

in Du Pont, 4 in Union Car- Trading in Manila hemp was bide, 2% in Eastman Kodalt, slow. Top grades were scarce and 3% in Prester & Gamble and prices continued to edge up- American Telephone managed ward. to tack on a small fraction. Limited buying brought about Minneapolis & St. Louls gain an easier urice tone in burlap.

3% while Delaware & Hud-Spot and afloat lightweights were son fell 3% in the rolls. Me- of 20 points and heavy weights

climbed 4 points declined 45 to 50 points.-UPI graw-Hill B00 ft 27,60 Following reports of merger

discussions with F. W. Dodge.

Electronics featured a loss of points in IBM and 3% in Lit- ton, Ford fost 214 General Motors 1 and Chrysler.. 2004 2 Of the total 1,429 issues trad- week, 477 ad- 350 27.29 cd this past

2300 3000 1 27.50

120121 1000 27 11002720

JC0027.19

500 27.30

1200

143

27.30 vanced, 809 dzelined, and 2030 27.20 stocks unchanged and new lows 5500 er 27.30

Ink Elec.

30

31

2009

39

200 μ 30).

DOG 30

but ended of view but it is considered now in Tele...

While Jower over the Rive dealing a two-edged weapon. sessions.

selling up cempetillen to the

Gilt-edgeds jogged downward European small car, the move with industriais in the lack will also undoubtedly blunt all! lustre market. Minus marks do- further current slow exports of minated dollar stocks. Germans American-made cars and trucks.

foreign bands ensed in

but Greeks lacked on fractions. Gold stocks eased. Coppers put up a better performance but trailed

STRESS ON EXPORTS

1K Tele.

RtR

302 303

.... 21.00

01 Cerment 84 04%

Already in the Dairy Earn કૂ ખ

of this year,

And current stress in America

off at the end of the week. Tine on export. generally improved. Oils put up drat ten months

mixed showing and moved U.S. exports have soared soene narrowly.-UPI.

Argentine wool

scandal

A $200,000 woul

hat rockod

20 DET cant over 1959. All dications are this course will

be pursued further.

Watson

Allied inv.

One aspect of this will be a Textile "ship America" policy now being drawn up by the Eisenhower Nanyang edministration. Its purpose would be to channel more ex- ports and imports Into Ameri- can-flag ships.

A. Rubber

TR. Trust

30

100 301

1070

1000 or 30 1976 et 30% 200 30

500 1 381

100 & 30

200 38%

500 0 3

0000 1.20

2000 + 8.20

1000

10000

8.40

9.50 0.00 2000 49.05 3000 F 9.60 .. 10.30 181

2000 1 10.10 0% 6.85 2000 N 383

2000 8.80 (1000 de 5.55

Taikou Bock 27.45 5000 #745

were registered by 122 issues.- UPI.

Exchange rates

Besines wan done in the local uno@elat exchange market at the following rates

U.S. dollar per $1) ** Sterling notes (per £11. Aukrullan holes iper £11 Indonesian rupiah Iper 100) Slam teals per 100) Singapore (Straits)

320

U.S. can sustain

further deficits,

bank declares

Chicago, Dec. 4. Deficits in the U.S. international balance of pay- ments of more than $3,000 million during each of the last three years have not created a crisis in the financial standing of this country, a Chicago bank sald today.

13 800 e 7214

400 i 73

400 m 125

1.01

2 22000 1 2 100002

1000

the dollar on 10000 1075 | mailcets, Harris Trust

Savings Bank sald 2000 2 550000 1,915 149 100 180

1900 de 1816

2006 14.30

U. S. tax

selling

KOY-

de-

aft

Remington Rond's Univac i computer scored another Impressive data-processing victory by being the first to correctly predict the winner of the recent Unit- ed States Presidential Eloction.

correctness

the requirement that $11,000 semblies, belag Kited in a vessel umill 12:30 pm the day after the million in gold by held in re- now under construction, incor-contest.

The speed: end serve as backing for U. S. cur-porates trawling winch controls, rency, This would strengthen two radar displays, a fishgraph, with which had a complex etcc- and display, talk tion was forecast five bod the position of the dollar by recorder

large horde of gold, back system, a genlometer and bid/caiton as to why meds and freeing a

an électric log recorder in eddie moro" trend-conscioussiness advocates of the plan contend.

tion to duplicated hand-elsetric and research expcutives ETF ex- pected to usa data-processing steering controls-LPS.

equipment in the future.

FORD DECISION

Sharp criticism has been

voiced over the decision by the Ford Motor Co. to export more land to buy out minority stock- holders of its British subsidiary.

These critics say I makes no

than 300 million dollars to Eng-

gap while worsen

the

Morcover, the United States; world supply of gold, this coun- sense for the government to Ita spending overseas to can ustain further moderate try is definitely able to endure irim defcits during the next few further gold losses," the bank narrow the dollar

private Intereste years without seriously

cbd-said, angering

11 ord "Moreover, the willingness of "Fort Knox hemorrhage."

Other economic palley.""kibii- and the Federal Reserve to follow a

monetary policy which takes zera" are urging that U. S prohibited from persists only secondary account of geid residents be If the problem du

United movements Hes been shown by owning gold anywhere in the Blar Forry

by 1985, however, the

ita dctions" of pursuing an easy world. This proposal stems from IIK Cas... 18.30 16.40 1000 10.0 States "will be forced to con- imoney polley to fight the reces reports that American owners of

2000 * 10.10 clude that the dollar is over-

sion threat, it said.

gult in Europe touched off the "Strict adherence to the gold recent wlid gyrations in 6000 at 10.30 valued in terms of foreign cur

the bank dald in a standard rules of the game price of the metal,

Among other dollar and gold saving measures under con- sidertien are understood to be: Realty Buenos Aires, Dec. 4.

A curb on foreign corpora- tion securities trading in the scandal

At present this Argentina's Called States.

step la considered unlikely export A han on U.S. private vold purchase abroad. TialsTM is and the government is thought a ilkely step, if the not improve in considering control of situation does

the next few months.

second largest

trade to IN foundations

1500 or 19.30 rencles,"

BD0 of 1550 long summary of the balance of

2000 & 10.34 3000 * 1.40

Metal Ind..

L... Craw.

家

Int'l Inv.

11 14.20

1000 11 2600

11.10

such exports. Belgian The car industry claimed this and U.S. firms were tho

past week the role of its rik victims.

millionth car of calendar 1000, Détectives from the fraud making this year join the dis- aquad of the federal police tulshed company of only three

Inv. 19.00 13,00 476 15.00 arrested Alberto Verschuuren, a other years when this was done F

500. Ke 18,03 Belglaby

Faro Oliva, 1950, 1955 and 1909.

2.65 2.873 7030 (* 100 Detroit's assembly lines poured Gilman... Argentine partners of the wool

2000 @ 2.615 exporting firm known as top-out 141,000 units this past weddy Underwriters 11.30 1.80 24.10 20.00 malcers, cutertay after charges a 27 per cent rebound from this pistaya

Marso Elec. 12.40 had been made personally to the Thanksgiving-holiday-weck low.

Entertain . 27.00 polley by Marcel Dauvister, of Having written off 1960, most Chaithold Thoux, Delgium. analysis how concentrate

and

un

The finns werg Lavelor de predicting just when in 1001 the Neatonvaux and Litt-Mocte et economy will start moving for- Most optimizila File of Verviers The Aruk ward ngain.

these

Fortune wor name claimed a loss of 4,200,- 000 pads, and the second of Magazine which 'said "the engin 2,000,000 pesos, The total question about business now i Fraud is estimated between ten how rapidly it will wide in 1901," mend (350odes -milliers peson,UPE, HUPET

Unit trust

!

First Hong Kong Fund Buyer Price: $1.00. galar prisms >$1,186)

Payments stown

An expansion of U.S. ex- ports of goadă and services should eliminate the de Anit without maklig, devaluation ecessary. it of the dollár said.

the

The most draaiko answer to the dollar problem, and one opposed by Treasury ofleafy, is devaluation of the dollar. This, in theory, would in Bresse the value of the UN Y. chable gold backend

thode chelehed Ameklekn

förbigo 16 compete beller in rüarketa.

would call for a restrictive policy because of the recent outflow of gold," the Bank sald. Harris Trust said higher in- terest, rates overseas are the imediato cause of the gold out- now. It is quite possible that Interest differences between the United States and other coun- tries will narrow in the nette fiture, it seld. The bark not

However, economists say that that some countries have already moved to cut their discount rate, the effect, would be short-lived Bince foreign aid and brivate sinoe moet other countries would vesiments oversens are not have in devalud, too. Further, the strengthen likely to be substantially curbed some observera, say devgidaliai in the near future, the banks woul!enly sak theressed, exports are the econonse right of Rasila wiilch

·With $12,000 million of gold, only, major Autim, to lië gola 39 Beltuvud" "to", flave large, sula

reterves-UPI, and over 40 për vent "z the trevi gromisin UPI:

IMMEDIATE CAUSE The bank said several fuctors are at work to correct: the probe Tem. One fack is the large supply of US gold of nearly $18,000 million, and another is foreign confluence in the value of the dollar, it end.

་

ind sommunication

Foursimy (oregråtind. ii si supers which controls, operatian of