1961-01-09 — Page 2

Page

THE CHINA MAIL, MONDAY, JANUARY 9, 1961.

Weekly survey of

survey of American economy

CAUTIOUS OPTIMISM

Democrats have challenging task

New York, Jan. 8.

the

American businessmen cautiously hoped this past week 1961 will turn to be

threshold to the promising "golden sixties" but they kept their hopes mostly to themselves.

A year ago, frontpages of business and trade publica tions were full of glowing prospects and optimistic plans not just for the past year but for the whole Jecade ahead.

This week was marked by an absence of any prognostications at this kind arid the term "golden sixties," it used at all was always in quotation marks, Only a few publications went as far as actually to forecast in figures and percentages. Whore this was done, it was clear that the aim wns to create just 蠱 favourable psychological climate. Well remembering that their high hopes for 1900 were dusted by a multi-faced recession full of contradicting cross-currents that still are not quite cicar, businessmen now based their fact in many the hopes on

1960 was respects

"a second best" year on record and that this was a good base start

to from for 1981.

These hopes often had nothing to do with the fact that in nvowedly vigorous Democratic Administration is taking over. Among objectively thinking 'economie analysts such state- ments that b real conomic advance and general prosperity

вте

possible only under the Democrats; or as the other sido used to put it, that the De- mocratic prosperity was always tied to wartime conditions somewhere in the world, have 'been relegated to their proper place of exaggerated electioneer- Ing.

makers to forget their troubles and start rolling ngain.

HONGKONG Good New Year Big U.S.

STOCK EXCHANGE

Dur Own Correspunde ist

start for Wall Street

New York, Jan. 8.

Business done at the Hongkong The stock market started off the New Year of the

Stock Exchange this morning

amounted to approximately $1,400,000. Noon quotations and the morning's transactions:

shares Buyer BUSTE Kaler HK Baak.. 2433 1443 30-7633 London Her. 1215

E. Asia Lombard **** What Co."

די

401,

204 710 2014 Wheelock.. 9.00 9.65 1000 1945

Waterbon •

NK Dock..

Quito another story are the Provident JIH Hote? automobiles, Having done, the almost impossible producing aome 6.8 million passenger cars

Land

500 40 1.70

500 0,80 1000 9.83 110 1200 117

130

23.80

7945

500 117 2200 29

[

right foot this nast week and now has only

51 steps to go forward erasing the 1960 de- cline.

each. Drugs were very disap- Norwich pointing, particularly down. T1⁄4, Schering off 2%, Merck off 4% and Warner LamE

down 2., ABC Vending bert tacked on 31% in its group but Universal Match lost 3%. IBM, Minneapolis Honeywell and Ray- theon rose 3 more in the electronics.

the total 1,429 Issues traded this past week, 943 ad-

gold

loss

London, Jan. 8.

The United States gold loss

ENGINELIN

Everything new in engineering will be seen here

of $167 million in the Half a century ago, when the first "Ship-

short wook up to last Wodnesday in which Bri- tuin and France modo huge special payments of $236 million was ond truo

the construction

worst on record. The loss, which includes $07 million on Tuesday and Wed- nesday, the first two business days of 1901, was tho worst possible start for the new year, in 1958 and 1900 Important lors did not begin until mid- February and July,

It actually was an irregular throughout the trading pattern holiday-shortened week, but the sharpest lae in prices in three y cars on Wednesday was mota than enough to keep the list on higher grounit at the weekend.

The initial 1001 session was a Aop will profit-taking hitting moet of the recent high-flyers, but increased international- ten- sions shook the street on Wed- 200 7515 nesday and all sections enjoyed vanced. 367 declined and 119

payments held unchanged. New 1000-81 good gains in heavy trading.

Brokers attributed the mid-highs were set by 80 issues and week strength in prices to the new lows by 15.-UPI. coincident rise in concern over

300644 1000 e 75"

400

New

111

C. Light

334 33 1000 @ 331⁄2 335 26.00 20.00 10+ 20,80

1000

Lo

103 20.90

100 8.00

2006 2000

100 is NO DO

in 1980 for the second best year yaimati on record-the car runkers are starting the new year cautious-Imm ty During the next

three months, they will be gearing

closely production more actual sales with the result that output of cars in the first quar-IK Elec... ter bas bren scheduled tentatively at 1,450,000 units nearly 300,000 less than in the Tel.... 381 fourth quarter of 1980.

A good indication of this paca

New

is this past week's nebedule. With all but one Chrysler Cor- poration plant Idio and other Cement.... makes operating on short-week schedules, V. 5. car, production this past week fell of to on estimated 77,000 units. This is Dairy a drop of more than ten per cent from last week's assemblies and is less than half the 163,000 cars the industry turned out in the first week of 1080.

A

29.80 20.90

ខ

the Cuban and Laotian situa- 1ions. Stocks that would benefit moat from any setup in the U, S. 1002090 defence programme--most major 100000 industrial groups and the rails

the

which advance 400 69 3035 paced

restored nearly $5,000 million in paper values to the list,

312:

100 PA

Watson Allied Textile

Inv. 0.03

7.10

slow tempo in Detroit, Nanyang will, of course, mean a siose Aral, Rub. 5.00 upturn in steel. Steelmen

think that January will be saRub, Trust 7.15 improvement

DecemberRealty on which was the lowest 'stegl K GA month for years. Just how much

The Dow Jones industrial Dainia averages shot up 11:24

that day, the sharpest since Oct. 23, 1957.

RALLY

Into

over The advanced Thursday before some profit- taking set in late in the session and on Friday, some of Friday's carly selling also was attributed to

by a report

a special economic task force that the current recession will go deeper before recovering. “

4045 100 39%

20314T40

500 740 13.70 3.84 10000 3.00

Some technicians suggest that 5000 4.00 1000 0 0.00

the action of many stocks in 7.20 4000 7.15

coming back from their curly 1.00 20000 Me 1.675 .... 1.373

5000 G 1875

low on Friday has strengthened the .. 10.20 10.30 3300 16.20

internal condition of the 1510 16.20 list and raised hopes agak for a стати of an improvement, Lane,

Int'l Inv.

600 19.30 pre-inaugural rally. nobody knows yet.

Other Caid Mac,

experts are not ag (0)

they say 1000 #50 optunistic, however, bay 5011⁄2 after underwriters 33.40 Business activity just

that international political crises January 1 will supply the first RK & FE

coupled with the publication of ipv. real indications of the depth of

unfavourable camninga Giman Inst year's business slowdown. Taikoo Dock

the the U. S. economy would have Consequently,

month of Humphrey's

The

CONSENSUS consensus

that, Kennedy administration or not,

WAS

to right itself-that is, start ex-January will also disclose some panding from its high platenu Idea of the date of the upturn.—

of stagnation--sometime in the UPI,

factors

nutumn of 1901 due to which are out of the ophore of political bifluence.

Foremost of these is the low level of inventories almost everywhere but especially in steel; the fact that although un- employment is high. employ-

ment, too, is at record level, is personal income,

Businessmen, however, con- codo that there is one role the Kennedy odministration can use- fully

perform to help the economy: by generally creating a mood of confidence, the Wa- shington administration

10.00 11

J55 10.90

2.470 2.523

71 7215

25.30

184

100

Baczo Elec. Eert.

12.80

31

24.70

Star Ferry

Viero

STEADY BUYING

DAH 42

PUSHES UP

STOCKS

LONDON

London, Jan. 8.

reports for many firms and poor econo- mic statistics, probably will bring about an irregular market over the next few weeks.

*10

The nation's banks published good earnings reports this past weck, but other Industries will not be as fortunate. Chesapeake & Ohio Railway Issued a "dash" report of lower 1960 earnings which is a good indication of the probable trend for the rest of the carriers.

Of

10

World

rubber

output

As the British and French

ought normally

to

habe brought gold to the United States or at least reduced the losses, the figures highlight a grave development,

Since the world gold price broke away from the dollar pirity inst autumn, countries are using dollars for their pay-

ping, Shipbuilding, Mercantile Marine and General Engineering Exhibition" was held at Olympia, British engineer- ing exports were only twelve per cent of the country's total overseas earnings from manufactured goods and produce. Today they account for 43 per cent of the total, and "The Engineering, Marine, Welding and Nuclear Energy Exhibition" to be held at Olympia, London (April 20 to May 4, 1961) has become one of the most important occa- sions in the British engineering calen- dar.

are the organisers today, with More than 50 exibitors will ments and talding gold for their occupy the 275,000 square feet Miss Rosemary Hadow, who has receipts,

(25,548 square metres) of stand been the cornpany secretary of and Sony Ltd., Ostensibly, three weeks store space in Olympia's three main F. W. Bridges

Bulidings, Trafalgar In Grand lach autumn had bigger gold halls and their galleries.

W.C.2, since loses $181 million in

tho fact, if there were more room, Square, London,

1947. week before the Internationat the number would be greater,

the number Monetary Fund moeting Cast | capocially

They shoulder a great respon- Sepicanber, $218 minion in the foreign exhibitors, because this

atblllty. Today, one out of every November 1 week when France is an international show famous seven employed persons in Bri- paid $117 million of U.S. gold throughout Europe and know tain is engaged in engineering, to the IMF, and. $204 million all over the world. It provides and the gross annual output of In the December 14 weait of a shop window, nat only

the Industry 19 more than the British Ford car taloc-over, for British manufacturers

£7,000,000,000. In 1950, also, London, Jan. 8.

But if Britain had converted hoping to interest British and Britain was the third largest ox- Natural rubber production the $47 milion which the in foreign buyers,

but also for porter of machinery and eleg from, manufacturers ran some 7,500 tons ahead stend voluminfily paid to the

say, trient equipment in the world, lass would Norway or Germany, of consumption in October, IMF. the past

whose exports having risen by soven have been sz14 milion. International Rubber

principal markets may be per cent in a single year from DOLLAR EXCHANGES

In . 1958 to Chand or Turkey or Brazil, and (£791,000,000 Study Group provisional Without the abnormal French who know that every two years £857,000,000 in 105O. figures showed today. In transactions, the Loss in the there will be buyers from all

Major overseas contracts' on synthetics, rubber output| October 9 week would have countries at the Engineering,

which British firms are engaged and consumption were in been only $101 mimon. The Marie" in London.

include the 2105,000,000 Dur worst Losa pf 1858 was #138 balanco,

BROAD FIELD

gapur steelworks in India, tyre millions

factories for and tyro cord Natural rubber production in

of dollars

worth other October, sens 170,000 tons and

and Rumanin the Russia during

The currencies

exhibition covers

field of latest week were very large, at whole

the mechanical 23,500,000,

£38,000,000 consumption was 102,500 ton

nuclear power bollers, Tokal-Mura Including estimated imports by $102 million. Nearly all of them engineering,

and the Japan foamdry equipment, station in Russia of 18,750 long tons and were taken out in gold. If the furnaces,

Furnas diesel 212,000,000

hydro- generators, petrol and Communist China of 1,000 tons.big dollar gainers, Germany..

A re-engines, ofl Released from the British and Italy and Japan, are still

and gas engines, electric project in Brazi V. S. stockpiles wire 8,000 |fraining from converting

their gos turbines, evaporators, recent survey also showed that dollars,

.under con- core olher countries cmnes and heavy steel works shipping tonnage tons.

to Altera, geaRS,

bally strollon in Britain was twice must be converting in a big plant way. The biggest single taker bearings, piping. pumpe and as great as that in any other in the past werk may have valves, transformers, tools and country, with more than one-

sixth instruments.

ot the world's now been Switzerland.

tonnage coming from Brush Ancillary processes Hite cor- yards in 1959. rosion prevention, radiography, metal refining, lubrication, test- FORMIDABLE TASK lng and measuring, fire preven- |

To do justice to figures like tion, heating insulation, space

to ensure the clearing.

that all storage, mechanical theso and handling and protective clothing branches of the Industries con-. displayed are also covered. So are ship's creed are properly davits, radar, searchilghts, steer-13_0 formidable task for the exhibition organisers. Tho in gears, telegraphs, propeliers, gyro compasses, anchors, cables size and weight of some of the and every other branch of ship fitting and ship construction.

Over the Arst 10 months of 1900, output was 1,017,500 tons stockpile deliveries 138,500 tons and total consumption 1,670,000 tons, of which the Communist world took an estimated 233,250

toms

INCREASE

Exchanges

intel

the

pears to be going not to New York but to other centres, in-

· Although the German Bundes- bank did not make the expected cut in its bank sate yesterday, It has already created the condi- tions for an export of money by The car industry continutes

the German banks in the new to be hurt by excessive denter

year. It has done so by Estimates were that synthetic Inventories, and production this past week dipped to 70,013 rubber production and con- mkd-December cut in Its mar

ket rates and were ench units or more than 92,000 units sumption

162,500

by its subsidy cent per premium of 11⁄2 per below the like 1960 period. Most tons in October and stocks at

annum on forward dollars." other major business barometera the end at the period were

But the German money up- and electricity | 355,000 tops. -steel, coal

of at the end Total stacka October were 717,500 tons, an MID-1961

of 32,500 tons sinco иставо the start of 1960.

Synthetic rubber stocks grew 10 by

tony in 45,000 months.

Reported exports from Indo- 50,153 October were nosia in long tons, of which 14,641 weTC of estate origin. Total Indo- nesian exports in the 10 months were 448,273 long ions, group said UPI.

which Steady, widely-based buying that gained in zest were held down by the holidays.

through 1961's first four trading sessions lifted industrials into higher ground.

takes over on January 20, could in their opinion persuade the consumers to part with more of their money.

The question is considered the key to any coonomie gains in the kansediato futuro.

The investing mood was help- ed by Wall Street's early per formance, a batch of good com- pony news and the belief that the the money resulting from Ford take-over deni will soon be rearching for a profitable and high-grade home.

One of the contradictions In the economic situation of 1960 has been the fact that while Americans carmod at record

While hopes of a lower West levels, they preferred saving to

Gemman bank rate-which spending. That's why thurable goods industry, particu- might be followed by a further

tho

on

British cut-were dashed larly the makers of household Thursday, come quarters

be- appliances, has been so severely love that reduction there will disappointed in its glowing come soon and when it does hopes conceived a year ago.

London my follow a German

Imperial Chemical Industries

Banks make

profit

The general consensus among economists still is for no definita upturn in business until mid- L001.

Sales this past week sloved down from the previous week's hectic pace but still were quite henry.

Volume totalled four.. 14,362,674 shares in the day period, or a daily average of against 3,590,888 hores, 16,537,084 shares, or an average of 4,134,271 shares per day in the preceding holiday-shortened week

London, Jan. 8.

General Electric was the most Midland Bank declared a active issue on sales of 208,074 final dividend of 10% shares. It closed at $7234 off 1.34. CertainTeed, Standard OU (NJ) per cent, making 19 per American Motors, and Brun- In the responsible business move.

cant for the your 1960 swick Corp, munded out the top man's dictionary, this mood of confidence would have

against 17 per cent. After five. nothing. | failed to follow other leaders

AVERAKÉS meeting all charges and providing for taxation, not profit for the year amount- ed to £4,501,240 against £3,826,380,

to do with the sort of perlodia onto higher ground through re- "war scare" that helps lift the ports the glant will soon come stock market out of the. to the market for more capital: doldrums, as it did on Wednes~ { ICT cald nothing about any such day this past week when nearly plans, but market sources felt a $3,000 million in market valua- | rights issue was probably on the tions were restored

the way just the sort: sharpest rise in some three

YOAK.

BUYERS' "MARKET . They have in mind, rather,

the long-range confidence out

STEELS

to

The

Dow-Jones

dished the week with 30 in dustrials at, 031.04 up 5.75; 20 rails 135.88 up 4,80; 15 uuliues 100.83 up 0.81; and 65 stocks 208.80 up 2.95.

+

the

the

Malayan rubber service for HK

Kuala Lumpur, Jan. 9. Rubber technical advisory

services will be establish- ed in six Southeast Asian the countries shortly by Natural Rubber Bureau.

Are

Rise in sales

:

1

from

perienced team. exhiblis would daunt an inex-

In 1950, there, was a' diesel Nuclear engineering is simply engine weighing more than 100 a projection of conventional lans, and every your there is a sincu Britain 70-ton marine diesel, running

cluding London, where Hori term money rates Ara gbout twice as high as in New York,

Washington's insistence on engineering, and redistribution of "Germany's has embarked on an ambitious funder its own power, in Olym dollar hoard cuntiumes to be muclear power development pro- } pla's National Holl; » pit, 40 feet very : dangerous for the U.S., gramme, it is not surprising that į (12.2 metres) Song by eight feet soki stook, by switching doì- | nu, jear equipment of' one sort | (2.44 metres) wide and four feet lurs from # country which | or' another will be found on (1.22 metres) deep, has to be does not convert them into about 40 per cent of the stands, į dug to receive IL... "Other unusual U.8. gold to other countries There is a separate welding | exhibits in the past were a re- which do.

stetion of 37 to 40 stands on the placement, propeller, for the On Wednesday, the Federal ground floor of the Empire Hall, Cunard Liner Queen Elizabeth, Reservo's free gold surplus fell where the fatest techniques in the turbine blading the Calder to a new low since 1930's of culting, joining, stress rulleving Hail and. Chapel Cross nuclear $5,707 millon, whereof $800 and metal finishing, can be power stations, and the first gon million belong to the IMF, Tho

studied

turbine ever to be seca rumming

· remainder of less than $5 biilkan

nt a public exhibition. is the entire available. gold

OVERSEAS VISITORS ́

In 1950, one ariditor arrange ,ed a television link with cover for some $24 billion of

his Research Habilitar

establishments and works 80 miles (128 kilometres) external short-term

always way, so that Interesting pro- Less than three years ago the trade associations are free gold surplus

being casses in action could be watched was nearly represented, not $10 billon, and the external the British Engineers Argocla- by visitors to his stand.

labilities

were tank which, since 1902, has One thing is certain, thố 1081

Welding sponsor of Engineering, Markle, no more than $17 billion. The bow the principal long-term creditor and invest- the exhiblion, Thres hundred and Nuclear Energy Exhibition ment position of the U.S. Im- and ninety arms. (mainly vin (will uphold the tradition of pre-

mechanical pregnable. Its short-term in the

engineering ||vious shows in that there will be ternational liquid position is field) and 17 specialist 'trade displayed examples of the best

to belong the and latest techniques in the rather rapidly becoming critical, associationa

DEA; and, according to cus. [various sectors encompassed by China Mall Special.

tom, this year's president of the Exhibition. the B. EA, MIĨA, L. Baker, Per. Chairman of the Baker kins Group of Companies, will bo honorary president of the exhibition

short-term

Agreed merchant

rates

Canadala Maximum Selling 17%, Minium Buying 17% T/T; 17-11/18 O.D.

Unit trust

Biels were good all wrock Lloyds Bank declared a nál ás observers pointed out that

The offices, staffed by trained dividend of seven per cent

dolenca any step-up. In the On the week the Financial making 13 per cent for the year

effort win må stoel -- inven- techmologists, will be set up in India, Paicletan, Borneo, Brunei, tories at rock boitem. Times ladustrial index gained | 1980 against 12 per cent, 6.3 points to 311.8, up two per

Youngstown Sheet jumped Sarawak and Hongkong.

The technical services Steel 4, Lukens 5. cent,

Lloyds also proposed one-for-6% U.S.

Alleghany Latiuni 4%. and meant to provide manufacturers Steels and engineerings led five free scrip' issue.

Bethlehem, Wheeling and Unl-wilh technical advice following look that would make itself fell, the advance. Motors tended for example, in housing. It a better, leading textiles improved 994 against £3,424.014, after each.

Profit for the year is £4,60%,-versal Cyclops more than three the steep rise in rubber con- euroption in Arlan countries, generally agreed that 1001 is the ont stores went ahead. Tobaccos providing for taxation and affor vour to buy a house, The buyers were a good market.

Good car sales reports ap- souver sald~~~AP. · market, with casy Anancing, Courtaulds gained one shill-making transfers to the credit patently were enough to offset exists because of a large surplus ing on the week to 44/0, Ford of contingency accounts, out of poor production rigures in inver of unsold now house from last went up a similar amount

which accounts full provisions | tors minds; and Ford rosu 24.

Motars 134 year's new housing starts.

143/0 and Associated Electrica has been made for any diminu- General

Chrysler . Do Pont gained 4%, Inkhustries jumped 3/- to 43/-, tion in value of assets,

Valon Carbide 3% and Thlokol. Tubo Investment jumped about

rocket fuel maker, 4 points D

Detroit, Jan. B. the came to **/3,

the charritente,

American Motors Corporation Balls featured gals of 11 in announced it will close its Totes & Pacifio 11⁄2 in. Great|smombly plant next Monday for Noritatu, 3% in, Louisville de ja. week and then cut back pro- Nashville, 244 in BattimerO Seduction to adjust inventories of Onfo and 2% in Kapsas Cly new cars, Bouthern.

time, 'it' wald, Louses, of 2% American sales in December

Exchange rates climbed to Telephone, o rocent favourite, 34224 cary, a 188 per cent · l- Business wenn dóna in the local

Genomicile, and 21% Crease over a year entlier, maar In Procter & Gamble helped. muid; all customers who toolc đów i morning, at the thioeing FADINI: halt -the Industrial Műtrigo Xvnty of`m now Ramblor in De US dollar (pre:91)

comber will get a $25 bond. This wing notes (per #1) Altos stood out in the matata pronto sharing, plan wwe Endonesian stupiahs (per (with a gain of 61%) Kommadelt amateod. lane-montas, -- China shơn this per 100) Beta- AzNoordá rose more than 3 | Stati ́Specialą.

Onco

to

on

A free scrip issue of one-for- | abven was also proposed."

In fact, the leftovers are sub

National Provincial Bonk de-

·atantial enough for the U. 8. Department of Conimered

clared a. final dividend of zevon Olli-odgod ma inip sailing, per cent, making 14 per cent for pewdiet a cutback in the coDollar stocks moved up under the year struction of new homes this Wall Street's impetua.

1980, payable Beth- February 24. Your

lehem Bicol was up 5 points on However,

consumers the week, US Steel up 8 and start oating into this gurphs, | Genval Motors tp.4.

Foreign bonds were parkly and arendt of the at-

mixod. and Grecks tended tractive offers and, partly bq-Germane cause of the exported, matarinat | firmer, but some Japanese non- of the record postwar Babies assented shaded Greek 8 per rights isstre et par and final on · · increased crop into the home-buying "gaw, conta of 192 gained 2 to £251⁄2 suven per cent

capital. the construction, wheels. Will | byer, the week slart- turning, at record -- ideede Golde diamonds, goppers, Prodt for 1950 WIE £8,180,- again. This wilt. De "Filgnal for dins, olli and rubbers all were 777 against 22,880,750, after 19 hard-hit household appliance | up—UMI.

taxation,China Mail Special.

· Laxt-year- the interim wes⋅ 10 per cent followed by onfor

1.

First Hongkong Fund:

Buyor Pre: $1.07. Seller Price: $114, Special Offer Soller

#1.11.

1000

Teasi

Computer-selling on the spot

The B. E A. `eland I tho middle of the Grand Hall is the Commercial and Technical Information Centre for the ex- Leo Computers have had · nia hibition. There is also a Press | outstandingin 'buccessful year and Information stand as well in 1060, and toxic forward. to

-reception ·· counter for brick blatnices in · 1901,

tiaitora Oversees

Englisht, The managing director, Mr French and German ure spoken T. R. Thompson, „vlalted: South [ơm all these stands, and be-Africa and Australia, dind an tween them they cover, a mum- | Immediate · result of the fen

visit was the agreement végef=" Price ber of other langusges as well.

Tân This, then, in the “Engineer-|ed: with Rand Miras Ltd.to Ing. Marino”-webe of the thres install e aorvice | buruari et grosicas engineering show» of Johannesburg, Offiots ..., hay "Europe., "Tel: 15 is a family | boon established and staff pent- ; und niware has been.

cut from England. The first exhibition, usually Tho. L00: HE computer" will referred to as the "Shipping and arrive in the spring of 1962. |un|Enginwaring", was held in 1900.) Te, this meantime : piëngran 1803 3% was the beain child of the late, for Volkits Interests, in 12m 1. W. Dridges. Hits" twa soka mintas 3 campsiax Min Kenneths" and Fred Bridges, and "reanavananth “38) | their nephew, Robert Boardman,f going shoad/-p£29.

thie