1961-08-21 — Page 2

FageTM Z

THE CHINA MAIL MONDAY, AUGUST 21, 1961:

Weekly survey of American economy

SHARP BUSINESS RECOVERY

Industrial output

HONGKONG

and personal income shoot up

New York, Aug. 20.

Some of the July statistics on the state of the economy, just released, are so good they made most experts forget the Berlin crisis.

STOCK EXCHANGE

by

Our Own Correspondent

Buulness done on the Hong-

kong Stock Exchange this morning

amounted 10 up- proximately $1,440,000. Noon quotations and the morning's transactions;

Shares Buyers Sellers

382 304

us

Le.

Allied Iny.. HK & FE Invest.

The stock market, especially, did not hesitate a second before it changed its position: it switched at mid-week from the somewhat Bank.. artificial booster of Berlin-induced prospects to the more real economic gains at home. These were the new all-time; showing. The retail sales Bgures, high in industrial output in July according to one government and the new all-time high in analyst "Just aren't showing up personal income which in turn the way they should." brought hopes of an imminent.

INSTALMENT BUYING rise in consumer credit. What the sturk market wus hoping

However, there were indien- fur, of course, was that Indus-

tions for the first time in many trial output of a peuk would bring about Tavorfuble carnlags months thot a sharp rise in cun- buying, such reports and fatter dividends sumer instalment

previous Bonething the U.S. business as thuse following world has not seen almost business recessions, may be in

The making at last. four quarters now.

ju

Industrial output in July hit 112 per cent of the index based on the level of 1957. This was two points above the last pre- vious reading in June and one point above the previous high of 111 in January 1900, before the

Szles

buying 16 vessels

Bullish optimism Indian firm

increases in Wall Street

New York, Aug. 20.

Bombay, Aug. 20.

A private Indian-firin'," the Jayanti Shipping "Com- pany, is to acquire"~13 now ships and three As tankers worth about 250 milllion Júpnos

(about £18,750,000) in the next

two

years, It was On- nounced today.

A mid-week resurgence of buying interest 'gave the stock market a short gain for the period and a tremendous increase in bullish optimism. Heavy buying in railroad seemed to indiente that plenty of

A member of the arm, Dr stocks was a big factor in the normally cautious buyers were Jayanti Dharma Tēju, told re- market turnabout, the Dow-ready and willing to jump the porters the amount would be

climbing gun. Jones rali average

bald in eight instalments, and above a key resistance level

SPECULATIVE

the Indian government would "confirming" recent big

Market action on Friday, in make an initial advance of about gains among industrials.

25 million rupees (about liat some evidence By mid-week, analysts were fuel, gave

21,878,000) to the arm for the blos- beginning play down the speculative Interest was

transaction. 200 32 Berlin situation as a deterring soning, especially in low-priced

Laclor

to higher stock prices and said instead that most of the bad international'news had

beep already

discounted. Evidence of a speeding business recovery was too good to Ignore, they wrote in their market totters.

200 i 304

03 304

250 300

2004

202

... 24.00

25

Scor 24.00 700 24.00 wharf

300 Wheelock 12.00 11.0 2000 12.00 2000 y 12.70 MK Dock

107 100 Talkou Dack ΤΟ 71 Provident 3114

32

400313%

500 311

otel

42-4335

NK Lund ..

73 721*

800 + 72 72

72"

400721

BK Realty

Old

2.575 2.03 2000

2435

ま

3.00

1000

3,025

New

2.475

a

K Tra

401 4322

412

Observers said these were the developments favouring such dit velopment: rising concern ever the International situation and the higher price trend cur- rently setting in.

KM Bux

77!

Ch. Light

125 120 3214

00178

120

Speaking against any sizable Yaumati

last recension set in. According; increase of consumer instalment

bite being taken out of persona?

to the index, i took the US.busing in this time, however, industry just five months to yo were these factors: heavy un- bound to a new high from the employinent; the ever larger 1900-01 recession law of 102 in February this year. In contrast, it took the econutry ten months in revive after the previous re- cussion of 1958.

of

↑ Income by consumer services; HK Elec.

at the heavy luar of instal- | ment Indebtedness still out-

standing from

previous hoom cycle.

the

Car sales could be cited as one example of consumer re- sistance to hard guoda pur. chases. In the first ten days of August, 141,500 new cars were sold, nearly ten per cent under the sales pate of a year 250.

39

10 101

2500

4012

1000 or 4815 4300 L 19.10 300 10.20

111 Tele

Old

4452 41%

Its

RX Cas

2115 21.79

Gilman

4.85

Jardines

20

DEO LC 4.05

100

26.00 2016

02 03

G. I. Centeni

DEBATABLE POINT

Now, whether such F steep elimb to recovery

Ruod thing is of course a debatable point. Thure is school

#L thought among economie analysts here which prefers the slower pace of recovery. This group is ill making it voice heard despite the now

On the other hand, and large- was preelsely the ly because Detroit had 'kopi a fact that it Insuficient--and slow-recovery; restraining hand on output, la- from the 1958 recession which, venturies of new cars at mid- A. fubber 0.30 015

downwardi brought on the last

Augest stood at some 780,000. Trust...

City Hutel

cycle of 1960-61.

obvious

units as

}

gainst the 1,000,000-| which husi burdened To those who doubt one in-plus dlestur alone, further evidence dealers a year ago.

of strength was presented in the

Dairy Farm 4014 400 1000 ℗ 401)

200 * 401

40%

Walson Textile Nanyanj

00 52 7.20 12.30

1000 15,00

724

The stockpile will continue to

2l Invest. 16.50

HK Mine Macao Eler.

Sincere

100

lie 10000

_

500 500

000

302 30 2550 à 10

30

400

Asia Nov..

July-figures for personal facone; drop all August because 1961 which reached 33 all-time high annual rate of $421.800 models were not being made in Worts

was $4.500ny mure, retooling is still going 9. Land rallion. This rate

car maker's Humphreys 23 со million higher than In June and the biggest

assembly plants, and the strike Metal

Caki. Stack.

(ord.) thrent on the August 31 expira- tion of old working contracts boomed larger, every day.

$17.1 fllion above л year

ngu.

admits it

The one important factor that did not keep pace with the general rise was again consumer In fact, there is quite a chance spending. In July, retail sales | —although no one faltered after a two-month rise openly as yet-that the well and dropped one per cent from ¦ Will be exhausted and the early June for a total of $18,100 mill- tilinin season may you thu Ilon.

public scrambling for the few Disappointed government remaining new cars in show economists again blamed the rooms at substantially higher hard goods sector for the poor' prices.—UPI,

P.O

ORIENT

LINES

S.S. "ORCADES"

SAILING FROM HONG KONG 21ST AUGUST FOR

JAPAN, HONOLULU, VANCOUVER, SAN' FRANCISCO

& LOS ANGELES.

EMBARKATION: The ship will be berthed at No. 5 Pier, Kowloon Wharf, entrance at No. 6 Gate, Navy Street, off Canton Road. Passengers should embark between 2 p.m. and 3 p.m. on Monday 21st August, 1961.

SAILS:

BAGGAGE:

The ship la expected to sell at 4 p.m. on Monday, 21st August, 1951. Passengers are requested to sond all baggage for hold and Baggage Room and as much Cabin Baggage as possible. to the Hong Kong Kowloon Wharf Co.'s godown (entrance at No. 2: Gate, Canton Road), between 8 a.m. and 5 pm, on Sunday, 20th "August, 1961. Passengers should only take light hand baggage that they

.....

1,0

60

U.S. cotton consumption

Industrial production and per- sonal income had risen to record Lovels in July, steel output showed a good pickup and the Kayernument was spending plenty of money for detence, highways and other 'economy boosters.

Late August has usually been

i

shares.

At any rate, the conRENKIIS at the end of the week sald that only the threat of war could stand in the way of a further advance prices.

According to one big wire house, the Dow-Jones Industrial average has held above the lower limit of its recent "con- pattern and this solidation" augurs well for further gains.

As it was, the Dow-Jones Industrial average rose a minor .03 to 723.54. The rail average,

The first of the tankers will arrive from 'Norway' on Tues- day.

SENCERA

British

research

on drugs from tropical plants

London, Aug. 20. there may be potentially valuable now sources of drugs yet to be found in the Commonwealth, the Tropical Products Institute of the United Kingdom's Department of Scientific and`Industrial Research is continuing; work on the examination of plants from tropical territories.

This is announced in the Re-order to help newly established part of the Tropical Products | iaboratories overseus with their institute Committer for 1960, rosearch and development prob- published recently,

Jens.

sources Any new

of drugs "Even more important is the could be of great econconic { demand for qualised manpower.

to the countries to in the territories themselves and bencht Mr Teja sald his firm had

the which

planla are indi- the Institute has helped by stock contracted to buy eight shipsgenous, say the committed and sending visiting scientists to 39

four of 30,000 tons and four of their decision to continue in- overseas

territories and by coch trom 25,000 tons

the vestigations follows, representn-training research workers from of Mitsubishi tions from overseas Japanese Arm

govern Ave different tropical countries," ments for technical assistance in Over 900 enquiries for advice Shoji Kaisha, Ltd.

Five other ships would be

this feld,

were and assistance

received purchased from ofther. Germany

from 02 countries during the Already 314 plants have been year. While only 10 per cent or NorwayReuter,

tested, including specimens from at these enquiries required North Borneo as well as samples laboratory Invesilgation the from Kew Gardens, London. A remainder related - to problenis number of alkaloid-containing | stich

trading, no marketing, plants have been found and are machinery, packing, storage und being subjected to further tests, transport-they Other plants trem the troples three-quarters of the Institute's have been studled by request of Advisory effort in terms of man- because they seem particularly bower and covered a very wide promising for this type of work. range of subjects.—LP.S.

a period when summer Eatnsowever, gained a brilliant 4.71 were digested and Investors to 144.52 uided by the declara- of the usual Chesapeake. walled to sce how business or would shape up after Labour Ohio dividend, on incrque in Day. Market Dction on the last the Southern Pacide rate and a

boost slight

in three days of the week, however,utillies moved up another 0.80 carloadings,

to exactly 120.00.

New York

cotton market

New York, Aug. 20. Cotton futures trading last wook continued to be a very quiet affair with prices responsive to small orders either way.

Sales on the New York Stock

Exchange for the past week

were 10,024,090 shares compared with 18,103,380 n weck carlier and 13,702,003 a year ago.

Taking a huge percentage of the weekly activity was Stude- baker-Packard, trading an enor- mous 1,309,700 shares and in- creasing its market value by 60 per cent-from $8 to $12 n share. interest stemmed from reports that advance vales of new car models were going well and that

most

U.S. told to rely on increased efficiency

Washington, Aug. 20.

deat

The report goes on to with the expansion of economie The President of the U.S. and long-term research work by the Institute to meet the Chamber of Commerce needs of the rapidly developing told American business-tropical countries. mion today thay must

Says the D.S.I.R., "This To- roly on increased

offi-flects a trend away from short- clancy instead of protec-term enquiries of, for example, tionism to meet then routine analytical nature, mi growing competition from European firTISE,

Richard Wagner said in o

security analysts would visit the radio broadcast that Congress could help 'American business- big brokerage house gave it a depreciation law. This, he said. S-P plants late this month. A men by improving the tax "risk" recommendation" Loo. Studebaker preferred stock roic would allow companies to retain

more earnings for investments. 127 points to 391.

Mir Following Studebaker

Wagner said increased trade among free world nations actively was American Motora At Friday's close e 1st with 277,500 shares, more than was needed to meet the econo- ruled seven points lower to half of which came on Friday. mic and political challenge points higher, or off 35 cents to Recurreni rumours that Ameri- Russin. jup $1.25 a late compared with can Motors would merge

the preceding week.

Studebaker-Packard were nearby deliveries phatically denied by hovered close to the season's baker exerullves—UPI. high levels, established the accent past, while the new crop (1902-3) contracts edged into new scasonel highs,

Most

ריה

of

"Expanding world trade means with

development economic em-rising Stude and economite growth for all of

us," he said.-UPI.

World markets

paid less heed to Berlin crisis

The market derived most of its stability, exports thought, Washington, Aug. 20,

from the continuing bellaf that' The Census Buroau said on

a large amount of the oncomung crop will wind up under the Friday that 539,585 run-government ioon canopy "Jaler ning bules of cotton were into your consumed in the United

chori covering, Trade

and States in July compared

speculative ecinmission heuse buying, has been the with 562,020 during July principal demand, while trade last year.

hedging and long liquidation In its monthly report on col- brave suppiled the contracts, ton and linters statistics, 32 During the past month. ů said 8,208.300 bales were con- large speculative straddle poal- sumed during the 12 months to tion-longs of October and It July 1001 compared with December against shorts in 0,025,305 during the same May has been liquidated, market experts sald. Leading

perlod a year earlier.

Cotton on hand in publle trade houses todd advantage of storage and consuming establish- the wide differences established ments totalled 6,073,522 bales by this transaction to transfer on the last working day of July short hedge forward to May at compared to 7,345,200 on the prices nearly reflecting full corresponding

day

R year carrying charges. carlier,

They were 18,092,000 active

DELAYED spindles in cotton-consuming

Trading technicians, at the e United States on the last weekend, expressed a view that working day of July. It was the markel has now renched a cald, UPI.

level from wiilcis further ad- vances inlight be delayed pend- ing a moverment of the crop. By the same token, how- ever, they saw little reason to expect too much near-term pressure on prices

Exchange rates

markai this

Bustness was done In the local unofficial exchange inning at the following rates US dollar per 31)...

5738 starting notes (per El Aralian notes (per £1.. Japanese yra (per 100) Cambodia riel (per 100) French new frane (per 1) indessesia rupisis per 100

a cruizaire (per 100 ATERING Deo (per 100) Keren van (per 1,000) Statler lira (per 1,000)

18.05 £100 1,48 0.56

2.30

1.70

4.09

3.30

0.10

9.49

Tal balit 4per 100) Dunnes kyat (per 10)

Pakistan ripen (per 101 ..... Micas, patrġa' (per 1)

27.10 ..5,75 7.09 -0.994

Norwegian krone (per 100)..

.7.00

can carry themselves for entering, Bhiwa MP (par. 2)

No. G Gate on embarkation. SUBJECT TO CHANGE ~

ALL PASSENGERS MUST #F INOCULATED AGAINST CHOLERA

EFFORE EMBARKATION

Agenta:'

MACKINNON, MACKENZIE & CO.

OF H.K. LTD.,

P.&O. Bldg, HK

Tol. 85211/9,.

zuen (per Yoj

now

Automatic landing

system

London, Aug. 20.

took up about

Indexing unit for production line

A mechanicol Indexing bato unita machine. that positions' workpieces for processos in d production line-incorporating:"","thraa" лож features la now being marketed by à ́UK firm.

The new features are:: The drive is from the "side of the and not from' tie centre tabic; A flight control system for a thereby virtually eliminating?

modern transport aircraft, surting torque: locations of the made on the outside of the In- featuring some items now in production dex Table to ensure the greatest possible accuracy! It is possible for such, aircraft as the to carry out simultaneous opera- de Havilland Trident air tions on both the top and bottom finer and the Short Bal- of the article under manufacture, fort strategic freighter for the RAF will be ex- hibited by ona of Britain's loading instrument and electronic firms at the Farnborough Air Show In Saptombor.

Both these aircraft are to equipped with

起

extro.

mechanicnt cycle

An Index Plate is normally supplied with half-inch reamed holes at the work positions, but machined workpiece locations can be incorporated to suit in- alvidual requirements. The unli can be supplied with any num- ber of indexes from four 'up- wards. On the standard 'inachlic total time cycle 1554 be the multiplex seconds, of which 1 seconds is In Index time: These autopilot know as the SSP, 5, taken and have been designed from times cari be varied by the pro-

vision of the outset ultimately to perform actuating clutch, fitted as an fully automatic landing

The SEP. 5 is believed to be

Operation of the Indexer the world's first autopilot design-positive and foolproof, the Loca- cd to meet the stringent safety tion Plunger being checked in, standards for the blind-landing and any Workheads employed passenger-carrying aircraft, on the machine checked back. and is the Dutcome of the If a jam occurs during index, a largest and most exhaustive mechanical: - slipping. cluich research and development Proswitches off the motor, and auto- The week-end Berlin news and short-lérm capital - Arumme ever undertaken in thematically applies the brake. was regarded as ugly but on, deteriorated smartly. Without history of automatic flight con- London und several other stock Germany's windfall debt pre-trol. exchanges it merely accentuated payments it would have been a the "holiday" idleness so that | had deficit. price changes up or down have been almost meaningless.

London; Aug. 20.-

has been a curious weck (ended Friday). For

once, the markets have treated Berlin primarily a German problem.

have risen to or probably well

18

of

19

for

Usc

To schlove full emeleney the actuating and locating mechani- The firm, S. Smiths and Sons isma are fully mechanical, and

more the drive unit is standard Without a subsidence of the (England) Ltd., have hot money which could well be than ten years been closely any number of indexes, only the It was the D-mark that felt restarted by Britain's banks rate. soclated with the work of the diameters of the Indexing Table the pressure. On Monday the it would have been wretched. Called Kingdom's Royal Air and Base Plate varying.

Blind! Establishment's Bunderbank had to support it by Until exports turn up and there craft

The machine does not selling dollars massively. Other is some revival of invisible re- Landing Unit and are producing wise, the dailor for once would|ccipia, Britain's Balance of pay- the 'autopilot, the auto-throttle, compressed air, mild can be, sup- above it par in Germany. ments to also nothing to write equipment and the locking unit plied with, or without the base

for the B.L.EU. Autoland unit. The base unit is so de On Tuesday,

gives complete signed that it some literyhome about Germans turfed henvy tellers

freedom for the operator's 'kneou Nevertheless, exports have m of sterling and the Bank of held up while thports have This system, which has ac- round the Base Plate, and ad- since the England had to give a ittle fallen amarily, and the cur-

can be taken of this complished more than 5,000 au- vantage market currently is at about support, to hold it up to ita rent balance of

payments terratie landings of both Jot and feature to enable works heads the government support level dollar par (though par iwolf

midst be again in the black;

idston-engine aircraft in all to be placed under the table in and growers have little Incen- appeared unattainably lgi less The Lloyd package should do weathers, is the only bind land- order to carry out simultaneous live to offer new crop cotton than a month ago),

something for invisibles and a

ing system currently, in prodac work on both top and bottom freely to commercial buyera. By Tuesday evening sterling lot for Imporis and might even

tlan, and being installed in of an articlo. do something for exports. From

certain classes of "R.A.F.. squad- ron aircraft,

The same Arm also manufac- ture Standard Assembly Units

* Crop news Man þeen mostly on turned upward again and hy

the favourable glue, ausgesting to Wednesday the Bank of Eng- {19s start it promised to-do more some crop students that the next land got le money back. As government crop estimato, ache- soon as the commercial demand | production "index, but the latter duled

for September 8. may had time to appear, sterling should manage to continue All the know-how and export for Industries which are turning shuw an increase over the was shown to be lechtically recent up-creep.. 18,018,000. bales estimated, in a very strong.. The bears have "report"published' 10' days ago. been reopening and getting The Cenada Jurdan reported caught all the way up, domsflo consumption of all Fade "obsson"-during July at

fdr iho.Import bill than for the tumctal of the frm mys: | which are particularly, suitablo

100

ence gained during one years over to automalle assembly. Wall Street was the cluered have been applied to the now- The Standard Unit is com- by the unprecedentedly fast generation · SEP, 1. nutopilots, i plete with a motor drive, selec- now peak of America'y produce the boste principles of the mil for and assembly mechanism, GOLD CLIMES

index. A seasonal tiplex Bystem having bogant has Interchangeable, Vibra- Guld continues to creep up-adjustment" now, taken, account proved by more than two years tory Bowl Feeder and Feed Pulpine peas (per:1).

870,505, Yanning bales, against wards. 15 stands higher then at of the early change in car experimental flying is a Dikota Chute, Selector Bhoe, Lift C

Pillar to suit the Magsuore siraila (pod 2500

DER 020 ballen reported for July any time in the yests up to the modela (which statistically has keralt of the company's flying and Guide Bwiss arle (per 19 FEBR. 1915 | fazi néniche” N

break-out last summor. This infovidently, how to a muy amik. Amajor part of the ecenponent. w baridia Raw culton axports for the hardly surprising, as the joint able feast ilks Baktér) the Index devstopnet flying has been round, square, or hexagonal.com- 1801-eason to August 18, as problem of the two reserve has borrowed wane strength conducted in a Comet 22, since ponents with volume not reported by the New York currencies and the fundamental, from coming months,

the latter part of 1940,"greater than ineweg infox 3 Cotton Ekcharize, totalled 359,- problems of the United States Riven for Auge the outlook will utckly adaptable

The 381 balos patina 68,939 bales payments (Balahco reinain comie Mobetura Isletowa of the

ment" are checked" boating and raptirtau "to", Kid-samo time-last | plitely junepived--Anhalt pulkerally) «pectedVínálkibn«nt | Initially operate-äl `dtiplex' love component changa, mikatmova÷ $1.24 BROT

Ostensibly the United States garšown Licică imagins' law, ma delas ) and the aircraft will be certificambiately self-contained. fast quartar hæičita frei sürplus | Jon of proŭta-whowe aeculag | Allt for auto-fland when it com The "ikme "crule kata-idom secinās, Sixted: 19676 fast, tentaitama pund la fe from good,--China Into berykio with British Burbs and a mUKŠLINE AND WE Avaliable In ihes beśla Balaena suranputria | Mal] MonoSAJ »?

Haberin guliday (pe-3). West German: D-Mark (per 1) Cuban (per 1);

UNIT TRUSTS

First Hongkong Fundi (nyer). $1.32 (seller),.

Becumu Hongkong Tund: cants (buyer) $1.0】 (sollor).

The certificatod cotton, stock or at the "weekend" töintied di,873,

bales-UFI,

¢