1961-01-30 — Page 2

THE CHINA MAIL MONDAY, JANUARY ̈· 80, · 1961.

Weekly survey of American economy

THE RECESSION DEEPENS Lonice

As nation waits for Kennedy directives

Now York, Jan, 29.

The recession deeponed this past week as the nation waited for President. Kennedy to issue his first economic directives.

official

These will come this week in Kennedy's State of the Union measure and in a fiscal report outlining the administration's programme to help the unemployed and stimulate the economy.

flseal

03

They will be followed, some 4. Heavy costs of maintain- two weeks later, by a special ing idla equipment in indus

or lika steel bulking murrage on the current gold tries drain which will propose steps materials which are pot egerai. to verteel the balance of paying at capacity. meata dellelt. Finally, changes i TAX DEPRECIATION in the 190) and 1902

In connection with the inss budgets will be outlined

pulut. a drize by busine : Con us the various KONSTA-

grows to convince Congresa mich departments have had

that liberalised tax depreciation limo to recommend! Drum.

are long overdue, These budysts have been work-wan

out by the outgoing Reems to be gaining ground.

These

that Kruups belleve publican administration and the

administration

reform of the tax depreciation Kennedy

stiucture would stimuate pro- expected to revise then at least duction investment, and at the

those feld where major

serve as

shot in polley changes arc contem-me time

eam to the general economy. plated.

well br This proposal may

nf

that the measuICJ

cel

in

was

the

The economy, in the means; part

These Line, slackened further. were the main indicators:

Labour Secretary Gold- berg told the President some 3.3 million were now frking unemployment compen ratlon. This indicated the total rs! unemployed in January would probably reach five noi a half million;

Rubber was a Wall Street moves

up for fifth

vital factor

in Britain's

re-exports

week in a row

New York, Jan. 29.

The stock market registered its fifth

consecutive advance

active trading.

this

wook in

LONDON

CLOSES

FIRM

London, Jan. 29.

A fresh eruption of takeover

and merger moves domin- ated the stock market

vestment buying on Friday

govo stock

London, Jan. 29. One single commodity and the purchasing policy of boon one country have mainly responsible for the ups and downs of Britain's total re-exporting perform-

There A good part of the gain came

When the Dally Mirror counler ance in the past three in the Friday session and was povery softness in some defence group's £32.6 million

attributed to Invector enthusiasm stocks which brokers attributed bid against the Roy Thomson yours.

also was some tem-

o firm close after a wook, of eøgging pricas.

Experimental gas turbine

locomotive

pent weeks wave of in- A 2,700 h.p. experimental gas turbing locomotive, GT3, designed and built as a private venture by The English Electric Company, has been completed at The Vulcan Foundry, Newton-lo- Willows and recently started its trials on the London Midland Region of British Railways. It will entor revenue service later in the your.

The commodity wes rubber and /generated by the better-ihan-to the recent news events sug-newspaper group's merger, plan ·

the country was Russia.

Over the past five years total re-exports from Brain have been worth, an average: £107 million a year,

Board of Trade statistics today, showed re-exports of rubber use from £18 million in 1957 to £32 million in 1958, then fell to £11 million in 1969 and jumped again to £23 million in 160.

"These movements more than accounted for the changes in total re-exporte between the three years, the Board sold.

SOVIET BUYING

expooled earnings reports of | Kesting an improvement in East with the Odhams Press giant is

West relations, several industrial giants.

included--and it came after the There was an interruption of Sales on the "Big Board” this market closed on Friday the the uptrend at mid-week, how-past week rose to 21,899,854 total Involved in current toko- ver, a many traders who shares, or a daily average of overs jumped to £117 million. purchased "bargains" in Decem- 4,379,972 shares, from 20,734,470 The bids brought some shorp ber, when others were dumping shares, or an average of 4,140,894 jumps in the counters oflected depressed stocks 10 establish sharès per day the week before. but elsewhere other indicators stock losses, cashed in some tidy The Dow-Jones Averages were exerting a two-way pull Anished the week with 30 Indús- į and early on seilers, had the proßte.

trials at 643.59 up 9.22 points, upper hand, and 20 ratis, at 140.34 off 2.30. The average of 15 utilities jump- vd 1.69 points to 105.14, the highest since April 30, 1930, than overall averag for 65 stocks eloped at 216.03.

HONGKONG

STOCK

EXCHANGE

by

Our Own Correspondent

Of the total 1,463 Issues traded this past week, 764 were higher, 575 lower and 114 hald un changed. New 1800-G1 highs were registered by 237 issues and new lows by 11.

ALL-TIME HIGH

Helping Friday's

upward

The prototype, which is the product of successful bench and

track tests at the E.T.C test Radio for inflatable

station at Rugby, is not unlike a conventional steam locomotive in appearance. The unit con- aisis of locomotive and tender, with a 4-6-0 wheel arrangement

ad

liferafts

movement was news that Briand a driving wheel dismeter A new portable transmitter....... tish Industry was still planning of a D'. It is finished in light heavy capital expenditure in

brown. with dark green frames 1001 and an carlier statement

and wheels, and is, lined with the Board from President of of Trade Reginald Maudling that trade on the home front might become lougher it tariff protection was cosed or tended lo be shrugged of

"

I

dark green and orange bands.

POWER

A

receiver for inflatabló liferafts is being market- by The Marconi International Marino Communication Co., Ltd., England.

It is designed to beat the problem common to the mft-- the handling and operating of bulky abjects, such us radio equipment, on board. "Lifeline",

It said that changes on So- Kennedy will propose, On the viet buying were responsible.

that other hand there is little

In 1960, Britain's Imports of Kennedy or anybody else can

natural rubber increased by only to

two per cent over 1959 but their do to induce the consumer spend more money if he thinks

value

18 per was up

cent.

Power is drawn from an Eng- be weld rather save it.

Jish Electric EM27L gas turbine Synthetle rubber imports, how-

LATE RISE cent More and more economists

ever, increased by 50 per

-designed and built at the in both quantity and value. In-

The Ipte upward trend re- Company's Whetstone works in The Standard & Poor's averago belleve lust year's trend of

from the af synthelle porta mere savings at the expense of

Timer Leioastershire which has been for 500 stocks rose to a new all-duced the Financial United spending may be ressensible

Statca rose by 60 per

10s to only specially developed for direct as the equipment is called, is Business done at the Hong-time high of 01.24 up 1.28 points industrial index

drive, with for the steadily deteriorating cont compared with 1959.

Exchange Stock

this from the previous Friday's close. 3.1 for the week. The Index mechanical

A completely self-contained, only Total raw rubber imports,kong

power turbine, against last separate Ampex was The steel industry post-recnomic situation. The third

the most active ended at 3iso

to operate, and provides efficient ánd whether natural or synthetic, in morning amounted to appro-

reduction two-way radiotelephone espfact poned its hopes of a re- quarter of 1000 was typical of

Noon stock with sales $4,700,000. were 291,000 tons,

of 408,000 year's low of 203.4 and the high simple reverse ximately

peat-box is employed. With a with rescue ships. ravery this month until Maren. this trend: Savings represent 1960

a of disposable Increase of 14 per cent on quotations and the morning's shares. It closed at $204, out of 342.9.

full tender--2,000 gallons of gas. improvement there ed 8.2 per cent

Sperry Rand followed with

À income as against only 0.0 per year earlier. The imports were transactions;

Steels lost their appeal as áld of fuel and 1,750 gallons, of The

370,000 shares,

compact fuss-fibre case and Standard new orders was in

Shares Buyers Sellers

water as well as train heating contains all the essential equiy» the same period of

stores, texilles valued at £70.3 million which

1770 1784 beginning of January was of cent for

Oll (New Jersey), General Elec-leading was 23 per cent higher than in HK Back. 1950.

banks, equipment a total load of over mont, Including telescopic axial trie and set by curtailment of produc-

American Telephone mater, while aircrafts,

and newspapers stayed on the 15 tons)the complete tccamo- and telephone andect. 1959-UPI.

rounded up the top five. 1ion is the auto industry. With

the Inst mentioned five weights 123 tons and the complete instrument is only 17 uptrack, American Telephone again was these cuts from Detroit, January

overall length is 08 feet. the bluest of the blue chips, helped by takeover prospects.

inches Fong, 7 inches wide, 5 shows only a slight gain to urders from December,

and inches high 细

than The flat-rolled market, especial- bis cold-rolled sheets, ly suffered most

Whatever

new

al

from the slump

In eattomobiles while a pickup in crders has been noted from farm implement makers and appllance makers.

very few

With

exten- tions, final earnings m

for 1960 which Just started to trickle In, have been disappointing.

parts

Even where Volume

higher

was indicated,

sales

often

net profit was down due to in- Typical of this cressed costs.

trend was Pennsylvania Hall- rond, the nation's largest rail carrier, which reported a fuss! of US$7.8 million last your s against a profit of $7.2 million In 1959.

The interesting part of this report is that in both years gross revenues were Пpproxi- mately the same. Westinghouse had a profit of $79 million us year on 2

volume of sales $1,955,731,000. In 1950 profit higher on B lower - almost 186 and $1,010,730,000 Steel, Republic

was

Roles volume

"third largest,

million respectively. the nation's showed a loss in 1960 сусп against the strike-plagued your of 1953. Bethichem Stee), the second largest, indicated its 1960 camming would be "sharply" dował.

of rate

business * The

failures or bankruptcies

În 1900 was at a monthly average of 87 per 10,000 enler prizes, well above this highest Dustwar rate of 51.8 per 10,000 renched in 1959.

RECESSION

In actual cash the pictures

ever

impressive: morc are Savings in the third quarter of 1900 increased by $3.5 billion. The second quarter gain was only $1.3 billion-UFI.

Agreed merchant

rates

Canadian dollars: Maximum Selling, 174; Minimum Buying, 174 T.T. 17 9/16 O.D.

Swiss Francs: Maximum Sell ing, 74 15/10.

Exchange rates

an

Butane was dong in the locat -unomgial

exchange market This HK Bank

Lon. Reg.) 1500 morning at the following rates:

423 3.73 Lombard Ins. US dollar per $11

250 13.25 Whare Co.

7314 7415 17.00 11.03

Sterling notes (per £1 Australian notes iper Cl Indonesian Rupiah (per 1001

12.03

2.40

Talkoo Dock

x Ga

Slam cute per 100)

20.35

Singapore (Straits)

хло

Unit trust

First Hongkong Fund: Buyer Price.

Seller Price

Wheelock

11.40 112

$1.13 $1,20

1 Dock

The gaps remain wide in world

interest rates

London, Jan. 29.

Japan's bank rate has followed Germany's cut, but not Britain's. It is now common form to describe such moves as designed to narrow the gap in international interest rates and so to relieve the dollar's problem of hot money out- flow. But the gaps remain very wide and hot money is only one among many influences in the present grave distortion.

The gap in sheri maney rates private Americans would also between London and New York be denied to private foreigners, is slightly aggravated by the Mr Reierson cays that no The recession, which mori easter New York Treasury bill | technical measures or, devalun- tion denials can be substituted and 'more economists pro cor- rate and sterling's narrower

31 Japon for the imperative task of cur discount. rently blaming on a mistaken forward thrifi on the part of the con- chose to widon her exchange recting the American balance of He spys dollars sumer, is beginning to be re-margins to the 1MP one percent payments, flected in so called executive limit and allowed the dollar devaluation would be a crush austerity. This moons that to sink to the widered floor, ing blow to the economie and politieat strength of the free many arms aro cutting their she would be entitled under

world: staff. trimming salaries paid to management, paring such fringe, benefits as bonussa.

chain The Sheraton Hotel asked executives in its Boston nifico opening more than $13,000 |

the

IMF Tufes to pay $35.70 for sold in London, well above the present London price.

Idens that Germanya bank another cut prasuged immediate cut in Britain, had

rate

a year to take a voluntary six waned before Thursday's no

Bank of England.

por cont out in pay. Pennsyl-; change annowscoment from the Vamin Hatiroad has stopped paying for club membership for same of its high-level officials. Generat Electric has prunod dozens from the "middle man- agement" category, men earning between $18,000 and $30,000

year.

There is no real similarly, Germany and Japan have targo surpluses while Britain shares Amarica's problem of intract able defleti,

DUAL SYSTEM Economio analysts, agreed

Reierson of the Mr Roy that the disappointing earnings picture of 1éso will be more Bankers' Trust Company (who mirrored in the fins was ahead of Mr. Henry Alex- KRIMTA Quarter of 1941, They my ander in auggesting the ben on. four basic factors, generally Americans holding gold, abroad) inter-reisies, will conieibuto now unges that gold should be to this Gevelopment.

rondned to Central. Dooks, and Governments and denied

Tlicy are: --

1. Easier prioca - resulting | epoctilatora, and hoarders.

from keeti competition for markets:

Cl. Prov.

1X & S.

Hotel **** Laad

Balea 201730

1720

19 n 1735

21769

14 1705

70 1000

39 in 1765

10 or 1765

23 of 1789

70 (500

group

103 2 280

2200 or 17.90 2000 or 17,500

TO $1.00

lleu of cash.

400 v 17.00

forces were fighting it out in the stock market at present;

of a

and

The

weighs. Bess With

rising 51⁄2 points to $114%, Jersby Olls receded early on but

The English Electric unit Standard Jumped 24% in the oltater elarbed stenally

20 lbs. Conforming thỏ thành các trbine lecarotiva favoured becmise

Gold mining prices drifted to run on the home raliways International Regulations, the good earnings trend,

steadily, the movement helped and is expected to give valuable equipm Sperry Rand fell 14 as direc-by dullness in West Africans operating experience with this buoyant 1050 1920 tors declared a stock dividend in after the Ghana government's comparatively new term of mo- Han: yellow for easyidanti-

moves to prevent marginal tive power. Market analysts said two mines from closing. The market

70 37 100 17.90 2000 11.30 20:00 11.30 15000 11

120 (24

20.00

444

25

Yaumali Perry '133 135

B000 15

·0000 11.40 1150 1.40 1000 I

800 69 124 300 + 124 100

A 305 30 124

000 / 124 125

100

530 e 10.20

.

also was apparently wailing

hear what President Kennedy would propose to halt the druin on US gold reserves and its

Belling is coming from those who see and fear a growing effect on the free-maziest price fundamental deterioration in the nation's Economy, To

of the metal. Coppers turned

them most stocks look much easier towards the close, but

tins were up. too bigh and the business ra- covery universally expected for the second half this year la mirzzo.

The buying is coming from thoes who believe that the beat market ended last October, that the new administration will 2500 26.00 effectively stimulate the economy.

70030.30

(New)

(23 120

100 134 700. BCO * 125

HK Tram., 33% Light ..... 20.00 8.30

300

500 6

300

500 or 20

1003428.20

1500

1000

28.00

2500 cc 28.38

500 € 28.10 3000 * 28.00 3000 28.00

HK Sec... 30,2014 500 291

IK Tel..... Others might feel that the real trouble is not the devalua

Now tion rumours but the distor Cenient tions which cause the rumours. Dalry Perhaps

the smart technical thing would be to buil the dollar.

3400. § 20.0

3500 At 20,00

300 28.00

1000 20.20

1000 20,00

6500 28.60

500 20.00

200 29.60

232 203

B00 30

7200

29.30

500 29.90

$300

29.00

10000

2000 20

$1 4255 400+

*1

10 00 500

2000

54 2412

200

204

1500

Already it so had, pre-IMT Watson 41% presture, ..., pre-election pressure and pre-inauguration, pressure. Allied Inv. Thle recalls the days, well into 1958, when sterling devaluation Textila was tipped before every con- ceivable calendar date-evon an OEEC meeting was Čufficient | A. Rubber, pretext.

"Unfortunately. The pressure

on the dollar, cannot be dis R. Trut Tutmodas AJ · hallucination"} Beally

and

Ainbrick cannot follow Blar Fet Biritaliin, msompiing

mxsorział, dlacjpitner Thero istny. Homeitling wrong when the Gūmki two great racervo, currénalen

to

--:

broomne iporis of mols thingi.

In that case, the tree, price

are not all over vives

000

12000

7,40

5000

1:200

0.03

6.00 1000

Podo

7.19

1.00 1.028 30000 100

10000

+4

3,025

Underwriter |could propamably break right of wiption 68 Brent fro

PRÚTIONAL for m The impact of the dip in whey from the: palal, price clerson's own the boonomy which ept into Boo Loodon dealers took ribe denying gold might be just es nic domand. Do many products, Amorican ban as a stop jowards supd as Qeykumjot, tumejus ch

BIRTIONE" AND "gold | motertain 3. Continued rising come of just such a dual price svatten, for the gold production, especially, tabaur, wheralty, gold already slemlest to i sherwof-China Mull Spypla)

000

end that the common stocks of our leading companies are sound long-term investments,

Technically it would appear the buyers are winning the argu- ment.-URI,

Long and undated gilt-edged bonds continued to sag with War Loan 31 per cents losing A 11/18ths sterling across the week to close at a new low of £58. Short-dated foreg beller. Dollar stocks were mixed; In foreign bands Grecke strong and Iron Curtain coun- try bonds staged on upturn on Friday.

Multiple grinding

machine

is watertight and and coloured a brli-

fication in the water.

cnce

SUBSCRIPTION Describing the equipment, a Marconi spokesman sold that on board the raft, the Koulement la simply crapped to the operator's knee, the derat erected, earth wire drop- pet verboard and within 20 +cconds of first turning the generator handle fransmitsion now multi-wheel can begin Accois to external grinding machine which | Attings vnd controls is obtained cover at either can accommodate up to by taking off

chd at the equipment. · Two eight

wheels grinding

controls only nre necessary 32 one (maximum span were

selects cilhor normal inches-825 mm.) kas speech or are automalloadly been announced by Q transmitted two-tone aterm U.K. machine tool firm. signal; the cther tunes the fransmitter to optimum per- formance indicated by a glow- Designed to grind multiple

in one ng lamp. The operator then dilameter components operation to a high order of Simply presses a switch in the necuracy and finish, the new handset to speak and releases

to listen... machine providos scopa for con- siderable production economy, in Transistors have been used the machining of camshafts and exterzively in the design of circuits reducing crankshafts and offers advantages: "Liful nost

large scale output, the both bulk and power require roamifacturers say. The machinė į ments. Both the transmitter

Tens and rubbers closed lower.-UPI.

Frestdent Nasser, Caring the United Arab Berazi celebrations for, the fourth anniversary of the avADUSLION SE British Kid French, troops from Port Haid, launched lerak shin erby to be built in the Aratz, werdik. It is a shrek

for

..put

haa a capacity of 40 inches and receiver are pretuned to (1010 mm.) between centree and 2102 kes, the international $0- distress can accommodato work up to redicte!cphone 10 Inches (254 man.) in dia quency, and onge the automatic meter. The manufacturers eny claim eignal has been trans they have aimed at simplicity, mitted and contact established, accuracy and speed by lising an radio bearings can be' taken on

transmission hydraulically operated dresser the ralle assembly designed to give auto rescue operations conducted. matic compensation for wheel The generalar has been truing.

#igned to require very Mitle turning effort and operation This assembly can also be does not impose too great a used for wheel forming. The tax on the strength of a sur- wheel spindle itself is 'driven by { viyor.--LPS.

a 39 hp, motor through six veo 190.

balts:

RESEARCH

Extensive research dis chine

de-

Flanging machine for

tool vibration in their own laboratory has been struc-A tural stability and improved optimum rigidity. It is easy to operato they add; the wheel- spindle assembly. Bean .bo, re- moved swiftly, or a now-whoe! filted without disturbing' the bearing), assembly,

Swedish yard

Scottish firm of machine

of ma tool makers who recently

completed on five-year modemiration project costing almost £500,000 are to supply a machine for a Swedish shipyard, Lubricant fe mainly pressure-It to for binding and forging fed but the wheelspindle and steel plats end ja believed to ba the petrie motor -bearings' are the largest of fin type in groeso packed pred need no fire world. The wst will be instaled new ther attention. The oll «fow by Gotaverken in shoin rate to the wheeliibad da udjusts filpyard near Gothenburg, S abis. Copsadi, is pumped to the Operated hydraulically, ohd grinding wheels at 85 gallons with an overall weight of 340 (247litros):n hulhute and there to the machine ectsista be a la ao independent supply to the long fanguine preow which on diamonde during the dressing handle steer plates 14 dn, Bhalch

d, nhà là Th11

The dem, High Smith Val" Billydrkülle contrala on, the ggw), Leid, who export shoul:40 grindinari machino Japo porvátna | Deront of their output, prod fryn low-proseura system and a wide varma Lög electrical equipment.

cabinets EPS.