1961-08-14 — Page 2

THE CHINA MAIL, MONDAY, AUGUST 14, 1961.

Weekly survey of American economy

SCIENCE ANI

BERLIN CRISIS IMPACT ENGINEERING

New economic pattern begins

to emerge

New York, Aug. 13.

A pattern of the impact of the Berlin crisis on American economy began to emerge this past week although it was still far from definite.

tif

There was the sustained up-] would be channelled into emer- trend on the stock macket,ncy reserves set up both by manufacturers governmental agencles and In- reptiness

dividuals with their own fallout Anally to go ahead with Kate inventory faildups, expectations shelters. in the canned foul industry of a sizeable tereuse in caripust due food-reserve expected buildup by the armed forces a well as civilians.

021

Industry interest in the food phase of the defence programme 10s been sharpened by govern ment emphasis un etvil defence and legislation now before Con- #ress providing for the creation if survival depots stocked with There were also plans by the Federal

System food, clothing and her shelter Heserve down on credit in case items. erhek

FOOD DEPOT current les government policies regorling loan pusinesses and private individuals lead to uny signs of renewed infalinonry pressures.

Reports front Wasitington said the Administration -us à follow. Uld-up Es delence up to sânʊuncement--was preparing a the autumn season, should the new set of economic alleles for

econum; draw even nearer to a

footing. These wor

measures substantial

would represent reversal of the Liberal upproach to economy which marked the frat six months of the Kennedy administration.

They would include: A presible autumn crackdown in credit by the Federal Reserve System; a

New York WALL STREET LONDON

cotton ADVANCES TO market

Now York, Aug. 13,

A Barrow trading range continued to typify deal-

ings in cotton futures lost week, but despite the in- activity, the market moin tained an overtona

of steadiness, with some do- fiveries being nudged just enough to set new ional highs.

sca-

NEW RECORD

New York, Aug. 13.

Selective demand gave the stock market sufficient impetus for an advance to new record highs on moderate trading last week.

The gradual climb principally the early sessions and the latter reflected industry and speciile picking up one. Both reflected since then optimistic bowling business corporation

by Brunswicke repre- veoncmic and international news threeart backgrounul provided little fuel sentatives.

Steels were generally easier. for market explosion in either

A total of 1,442 ssues were direction.

ivances with

out July retail sales slippel one traded

by 708 t but were mumbering declines from June per cent

of 138 SAUCs hit but hanged

yonr. 585. a total Irum of Electricity

to new 1561 highs while 35 touch- production rose

A1 Friday's close the list ruled up four to 18 points, or 20 cents to 75 cents a bule higher than the preceding week.

Was

the

Underlying stendiness associated with gradual, persistent rise in the value

gotlon, plus p slightly another recoin bat perspiring ed new low.UPI. apot lower government crop estimate, Wall Streeters were surs along with the continuing hellefredected the weather more than that the government loun pro- the industrial temperatures. gramme this season will absorb of new considerable amounts crop ginnings.

to

Barton's,

Moody's Standard & Poor's priuiuction indices all showed gains from a week earlier as did bank clear- Ings. On

other hand, the business failures vose sharply

dipped

The fexille Industry also has hopes of pronting from the current emergency as more fabrics will

be needed for various Industrial uses an

Also, technicians pointed naturally, for uniforms,

the higher prices at which the One of the signs of an up Commodity Credit Corporation

raw materials is the is required to hold its remaining and caricadings and cosi itpul recent firming of prices of steel stocks of 1959 and prior trup trend in

week, scrap. In Chicago last

cottons, which comprise must of scrap prices went up ny much

that agency's holdings. as two dollars a ton on sizcable purchases by major steel mills. Deniers said the rise reflected optimism Itr steel operations this autumn.

GRADUALLY CLIMB

The steel operating rate went on this upswing and Industry excentives made measured statements about possible patuma price boosts long with increasing output over the rest

The New York Cotton Ex-ur the year.

as of

Keeping in step, steel output change estimated that a week resumed its climb, August 4 the agency owned or totalling 1,850,000 tons, for an controlled 1,509,000 bales

may be ex- increase of 1.8 per cent over the that this amount more vigorous government effort previous week. This was signi-pected to gradually climb as loan to detect any signals of rapid ficunt because it came at a time entries from the 1081-02 crop Inventory stockplfing by business when Detroit's automobile as-expand. and subsequent fluited inventorssembly plants are virtually at a for the 1962 model controls to prevent shortage of

standstill certain materials; updating plans

changeover.-UPI. for direct wage and price en- trols for use if the current aud war gets hotter.

These policies may never go into effect, of course, and so far there is little in the American economie picture to justify even) their preparation.

UNEMPLOYMENT

I

Unemployment for the eighth- consecutive month hovered "just under the seven per cent share;

nest manpower of the total economic experis fear no pus- albility of

inflationary any pressure unt this problem is substantially beaten.

Also, the American consumer so far shows no signs of giving up his hestart approach to the hard buying. especially in goods sector.

But there were some signs last week that the rigid inven- tory polley which US. man facturers have been pursuing in spite of the general inprovement In the economic picture, may finally be easing.

Purchasing agents were re- ported to be in the process ut slowly relaxing their rigid "no- Inventory-buildup" policy. They are still determined in hold their the stocks of most goods at

lowest possible level but are

Textile weekly review

New York, Aug. 13. The

goods cotton grey market last wook became

somewhat less active. two-sided

Q

ond

offair.

more

FURTHER GAINS

Ali was quiet on the Detruál front with car makers too busy switching over to 1962 models

TERMED

'CRISIS'

MARKET

Now York, Aug. 13. The recent rising stock market has been termed o "crisis" market by the magazine "Business Wook.*"*

scen

the

The publication sald the and trying to work out a peace-fatest surge. which has ful wage settlement with the the market rise five per cent in the last three weeks, Is a second car workers to provide many

stage, of bull market that got The average price for mid-provocative movements. dling inch cotton at the 14 mar

last

but November, Brvicers and analysts foresaw going

markei, undamentally this is a new kets last week edged up to 33.09 further gains in the a pound, up 50 cents a bale for They expect demand to remain kind of market."

"Business Wock" said the first the week and a cumulative rise Fairly selective, again favouring

was called obale from the year's higher qually cyclical and de-siege, which of $13

bull market," pro- low of 30.00 cents, establislied in fence issues plus special situa-Kennedy mid-January, The average|tions,

vided a gain in the Dow Jones government support rats Inr Dow-Jones 30 industrials industrial average of about 20 about six months. inch cotton at the 14 designated stood at a new record high of per cent in

rail:: murkels for the 1901-02 season 722.01.

elened at investors concentrated on de is 33,34 cents a pound.

of 0.56 fensive issues and 130.81 for a sint loss

Alamorous and utilities managed to gain growth stocks, 1.52 1 13.40 despite eline in the final two sessions.

In the "erisis market," the Trading tor the week amount- ed to 18,169,300 shares against magazine said, emphasis is on 19.832,719 shares a week earlier stocks that may benefit from

the increased military spending and 14,699,940 shares in

industrial on standard sane period last year.

Ward lopped that may do well in a bowIL Montgomery the most active list, up 3% "Business Week" noted that

There shares. 323,800

also Investors, however, are somewhat more nervous, feeling were unconfirmed · reports of foreign buying of the stock.

that the recovery of economie and estimates of an earnings fuctivity will be hecompanied by

a new burst of inflation. improvement.

crop

The government's first estimate of the season, published on Tuesday, proved to be slight- ly lower than expected.-UPI,

Contract

Salt Lake City, Aug. 13. Kennecott Copper Corporation for ap- and the Steel Workers Union While the demand

slackened will fabrics parel-type

resume bargaining Un considerably following the late August 13 on new coritrael to July buying splurge, sellers of replace the agreement that ex- industriai fabrics continued 10 pired on July 31. book sizeable orders from au-

on

a de-

Atlas Corp ranked second rising on 293.000 shares. The holding company was charged tomobile makers, Vinyl pinslic The Union has been working as a co-conspirator during the million coaters and wide loen fabrics on a day-to-day basis subject to week in TWA's $115 for the trapery trade.

written cancellation on a 72- Fuit against Hughes Tool Co. Buyers of print cloth yarn hour notice by either party. and Howard Hughes.

and AMF Brunswick fabrics seemed to be more pre-

the third and fifth most heavily decupled with the job of digest-

ing after a sizable decline in

were

un- Many issues are at

ing the extraordinarily large resolved in the labour dispute. traded issues, the former gain- purchases made in late July. A-China Mail Special. buying burst then reached the fargest proportions of the past

sald to be ready to move quickly 18 months, milmen said, with

If it becomes clear that I would buyers covering on some CER)-

be wiser to start reballding structions running through the depleted stocks.

Jirst period of 1992.

This attitude is the direef Berlin political complexities inflationary Implications (rum the increased

result of the intensified de- and fence programme, the increas-drawn

ed talk of price rises in steel, spending for the defence pro-

products

other gramme, plus seasonal fetors paper

As and the'xlight lengthen- ¦ motivated the short-lived buy- ing of delivery time on coming rush. Since then, eonverters, modities which were severely chain and mail order buyors depressed last winter but now

moved at a slower pace, pond-

are beginning to show signs test of higher prices at the retall level for dresses and of life again.

towels, household Ines like sheetings ele,

The food industry especially has high hopes of a bočni and is gearing to incet defence needs.¦ Growing attention to the elvillen phase of the defence programme

POTENTIAL DEMAND

More

extensive buying by

Is believed to stimulate ex chains, mall order houses and panded buying of canned food |other

Jorge distributors

for the so called "survival diet" | bring about new netivilles requirements. Most of this food the market,

AMERICAN

STOCKS & COMMODITIES

WHEN

+ BUY

Market Timing

For

Maximum Profit TECHNICAL ANALYSI

·THRO

Heventch Dept.

PERENNIAL TRADING CORP.

MiG-11a Málsburgh House

Trong Kon THE 4, 1304

will

in

Some Improvement was need-

ed here and there in finished goods, but the improvement was not widespread at the mili level.

The anxiety of mills to boost cloth prices hak'inade soine Kréy gooda büyers In- Creasingly wary unis Meg see whether the advatoes can be passed along succèssfully to the consumer outlets. Meanwhile, attention turned to the potential demand for textiles as outlined in the defence programme. Milllary Agnis reportedly have been planning large-scale purchases. Proposed procurements under conaldern- tion include some 27,000,000 yards of cotton rateens, 5,318,300 yards of khaki collon Iwills; 1,200,000 yards of colton hned- Urd cloth and 850,200 pairs of nylon cotion socks UP.

UNIT TRUSTS

First Hongng Fund: #1.26 (buyor) $1.30 ·(seiler)]

Second Hongkong Fund; 97 'corts (buyer) #1:03 (seller)

INFLATION

Issues

Ko

At present levels investors are discounting n big increase in but most corporate carnlugs. analysts think prices will even higher-lo at least a 750 level for the Dow Jones ju- dustrial average this year and 860 in 1962, the magazine added. The average is now at a new all-time high of around 723 China Mail Spectul.

Pictures in the sky

sway, the

Piotare shows: Passengers in a long-distance jet airliner can now while time Noswoon- términals by watching dimrun motion pictures as they fly the TWA way. Trans World Atelloe have thefailed movie apparatus in their platics linking New York to the New And the West Coast of the U.F., and Tater this month will extend the sorvloo York-London 'and Europo plande, as well as the Polar flighty' from Los Angeles to Paris, The light-weight, priléietārs are in a coiling honspartment al the rear of the dai clans sec- tion, pasting » 24 × 48 inch plcture on flie weinen, which is maunted high enough la1 permit· gemmango to weld from the "Torwa¥a lounge. The soundiemok de carried", individually 10 cách Passenger through featherweight handenta, plugged into en quitet on the scal; and with fru dividual votante""contrar,==EXDTCM T78137*

Lighter weather radar set for aircraft

MARKET REVERSAL OF TREND Transistorised airborne

Transistorised girborne weather radar covering the requirements of practical- ly every type of aeroplane from executive aircraft to the largest airliners will be shown by the U.K. firm Ekco Electronics Ltd. at the Farn- borough Air Show (September 4-10),

London, Aug. 13. Stock market staged a com-

of plete reversal the previous wook's trends in the fourössions of this quiet "holiday work.” In- dustrial equities declined along a broad front while

"Their standard

Type E138 government bonds climb- | radar, as supplied or scheduled ed.

for many of the world's latest airlinors, consists of a scanner, transmitter/receiver and indica-

for and weighs under 60 lbs.

Last week Industrial stories plummeted 15.4 on the Fluan- cial Times index against o 22.1 points advance in the preceding week. The index ended at 313 against the year's high of 365.7 and a low of 301.4,

New buying by trust mana- gers, the force behind the pre- vlous week's upsurge, Azzled val und general Investment In- terest sagged.

Meanwhile the tough credit squeeze is beginning la be tell. Steel output dipped three per cent in July, and recently svar- Ing retail sales are losing their impetus.

ACTOSS

Meanwhile European and of glit-edged on home buying high yield considerations lifted

bonds the government the board and despite Friday's setback War Loan 31⁄2 per cent added £1% in the four sessions to close at £$24.

the

Some of the "hot money" now flowing into Britain after pound's row strength la said to be Anding a proflable home in gilt-edged.

German and Japanese edged lower.-UPI.

bonds

of

The new introduction smaller, lighter scanner reduces this weight to 40 lb, and makes the equipment sultable for t stallation in execullve-type air- craft.

HONGKONG

STOCK EXCHANGE

by

Our Own Correspondent

Shares

HK Bank

UK borrowing 7

pushes up U.S. gold stocks

New York, Aug. 13. Last wook's rise of $75 mil.

lion in United States gold stocks is primarily attri: butable to developments connected with British borrowing of $2,000 'imil-

284

Buyer Sellers Sales

20 330

302

תר

The maximum range of the E100 equipment is 150 miles and its high brightness display covers an ozimuth sweep of 180 degrees. There are two inter- mediate range scales of 20 and 50 miles. The fully stabilised scanner can be deflected for ground map-painting and filled upwards for exumning clouds above the aircraft's altitude. In keeping with the current prac Bee of duplicating essential services which are the subject of mandatory requirements, the E100 will also be displayed us a dual transmitter/receiver and indicator system. This provkles full full-safe conditions, either transmiter/receiver unit operat- ing with either Indicator unit, Apart from some increase la power requirements, perform- ance characteristics are similar In those of the standard E190 equipment.

Another new development to be seen for the Orst line is a transistorized Doppler dritt unit which can be installed optionally with the E100 weather radar as

re-

Business done on the Hong-j'an aid to navigation.

Stock Exchange this kong

Ekco airborne weather radar morning. amounted to approxl-is now being manufactured Noon under leence in the U.S.A. by mately $1,930,000. quotations and the morning's Wilcox Electric Company Inc. transactions:

et Another exhibit is a range transistor inverters including the Type E210 which has just ceived unlimited Air Registration Board approval. It is a fully- transistorised single-phare In- 100324 24.60 24.80

1300 24.00 strument, incorporating facilities 300 e 24.00 for general-purpose applications 1500

and stabilised against "variations of input voltage and output load. It has an output rating of 15 running or 35 VA continuous VA for short periods. One of the arst applications of this in- strument for operating

the

IK

Inv.

Wharf Co Wheelock. 12.70

HE Dock..

1500 $1,30

2.70

100 13.30 1000 tv 12.150

10000 a 12.00

110

112 200 11 200 € 110

70 71

་་

32

44 45

7211

Talkoo Dock Provident HA Hotel HK Land

UK Realty

(914)

...2.375

lion from the International HK Tram. Monetary 'Fund," according

20373

721

109 44% Sperry Gyroscope Typo HD.

Also to be displayed is a range of transistorised single and three-phase static Inverters for the generation of close- tolerance 115V 400 c/ AC power from a nominal 24V DC primary power supply. Ther stablilty voltage and frequency coupled with silent operatio makes them suitable for many ground-based applications well as for airborne use.

2.50 2000 2.00

2000 2.075 1000g 2.025 25000 2.00 5000J2.00

(Newi

2.45

K.M.D.

141–4193 78% 79%

Youmati

130

Ch. Light

30 591

Now

to sources closely con- nected with the Federal Reserve Bank of Yark.

immediate drawing of $1,500 This borrowing comprised an million in nine currencies and a standby credit of $500 million to be drawn later.

Following the British draw- ing, the I.M.F. disclosed that li would sell 600 million of its gold #look to replenish one third, of the currencies being withdrawn by Britain.

In as much as the drawing Involved 450 million in United States dollars, this meant that the Fund would sell $150 mil- Hon in gold for the dollars,

A Fitteral Reserve Bank

that only spokesman sald half of this sum was added to

une

་

20 79

2070

100 30 5000 de 2914

10000

2244

1000 of

111 Ejec.

40 40%

/

132 40%

IK Telephone

HK Car

Gilman....

Jardines ....

49

13%

21.00 21.70

1000 $015

300 40

4400 or 5014

600 01 40 1200 5 40% 204 à 4015 1000 V 40%

Unit to generate ship's alarm signal

01

29

500 4915 A unit to generate the two- tone glorm signal that has bean specified warning to procode trans- mission of a distress mez- sogo on the international radiotolephona distress fraquoney (2,182 'ke/) is being produced by the UK firm Associated Elec- ericol Industries Ltd.

1800 4312

103 21.50 50021 00

4.70 4.00 1000 or 4.00 1000 4.00 5000 400

100 62 03 100 41 200# 401%

Dalry Form 40

Watson

the old slock. The other $15 G.1. Cement # million was placed in the Ex- change Stabilisation Fund, where #1 will be used to strengthen the defence dollar

Texille XD

Netyrug

27.30

10

Go 500 50

7.10

12.30 of the

Amel fub.

0.10

Rubber

7.03

In Invest 14.00 10.28

Ylar Yerry

Mecao Elec. 14.39

Sincere

The spokesman also disclosed that Britain usert its $450 mii- Ilon to purchase' a new kind of non-murketable short form eer- tifientes of deposit which was K Mine Issued for the occasion by the

Hupe United States Treasury.

Andy Cann. Cold Mic Ord) City Buleh

Both the maturity and Interest rute, he sold, were very closely inked to the 91-day Treasury bilis auctioned last Monday. China Mall Special.

BANK OF ENGLAND STATEMENT

London, Aug. 19.

Humphrys

1000 $0.20

A compact transistorised unit, the R/T Alorm Generator Type A02 is fully approved to British Post Office specifications for a non-integral electrically coupled device and will modulate

any

1000 12.40 r.diotelephone transmitter.

It has been recommended that United Kingdom thips 240 10 244 | carrying radiotelephone equlp- 2003 $14.20 ment should be ted with

39 a R

alam gonorating equipment by 220 or 8.20

January 18, 1902.

7360

20 20

40

40144192

An official of AEI. says that the need for a distinctive signal that can be heard above the speech traffic and other noises to indieste of a ship's bridge that a distress cali in kuntient has been recognised for some time. The form the signal tokca -two allornating tones of 1,300

Exchange rates cycles/recond nod 2,200 cycles/

Business noticial

| Recondi, eneb tone lasting for 250 miifi-¿econds and the duration of the signal--30 to 60 seconds........ have been specified by the Inter-

Radiu done in the local national Wh

Consultative market Elle Committee (CCIR). morning at the fullowing rates:--

The United Kingdom speciá UE. deller (per 1)

cation for an alarm #ignal Filing utes (per l

10.04 generator, to which the Type 11.07 Australian netes (pez £1)

Ása contorna, was' prepared. ""by 300,001,343 | Japonius yen (per 1001 200

140

the Ship's Wireless 370.717,954

Cambodia riel (per 100)

The Bank of Englari atale- ment for the week ended Aug. B, reads as follows: Note in circulation.

Public dapost

Private depois

Government securities

Other-sublima

Receipts

Ratio

£1,941473.110

13.013.01

Agreed merchant

rates

Britan Bra (per 1,000) Chiness 2MP (per 1

Telwars yes (per 101

5,700

Working

Operation of the Type A62 In

9,40

93.919,933

French new frane (per

Pariy."

54.701.050 UPL

Indorirala rupiah (për 100)

3.15

Jurazilian erikoira inne 100)

Argenting pead (per 100) Korean hwan (per 1,000)....

4.00

3.80

simple and involves only two control switch to

9.20

028

1.37

27.10

*330

7.00

0294

7,00

121

期

1

17.00

Thet 'hant (per 100) Burmese kyat (per 10) Pakistan pipes (per (0) Norwegian krone (ore 100) .. philippiale peso (per 11 Maximum Singapore mente (per

Swiss France Maximun Bell-Mu patace (per 1) Ing 74%

Belgian Francs:

Selling '082.

Rwith front Tome 3)

West Derman Deutschemarks: We derin D-Mark (Der's! Nattuerlande solider (per 100 Maximum Selling 09.

Cuban peso (per 1) su

the output of the generator to the input of the radiotelephone transmitter, and a push-button to initiate the diarin sighal; The duration of the'signal le control- thermal relay. The led by

two-tone signal tań boʻshonitored (aŭitally bý"d built-in miniature

todd-speaker. It operates from

normal ship's -24 git

the

battery supply-LPg.

•