1961-10-22 — Page 2

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THE CHINA MAIL, MONDAY, OCTOBER 23, 1961.

Weekly survey of American economy

UNEXPECTED DECLINE

Weather, strikes LONDON BRITAIN'S

pull down production

New York, Oct. 23,

STOCKS CLIMB

London, Oct. 22.

TRACTOR

BUILDERS ARE

DOING GREAT JOB

Weather and strikes have combined to push Stocks climbed from their industrial projecta from Basildon, near London.)

down the rising curve of U.S. industrial production just as it began to score real gains over pre-recession levels.

(Alexander Thomson tooks in on the ground floor of one of Britain's biggest neie

two-year low last wook on relatively small-scale bar-

gain hunting in tho absence of sellom.

By Alexander Thomson

London, Oct. 22.

The sensitive market started I tried to imagine the shape of things to come as I looked out on 100 acres of green fields and autumn-tinted trees outside this new town

to steady, on Tuesday. After-

from hard-lult

(Basildon).

This is where Britain's big-in itx tractor sales to the six gest tractor plant is to be built Common Market countries. by the Ford Motor Company in

10 milion plan announced

Inst May.

Unlike motor-cars, which are feeling the pinch of the credit squeeze, the Iraetor business is still booming.

At least that was the official explanation for a

rather surprising

apart September development wards,

shipping stocks, prices moved that may well be repeated in October. Sep-upwards with the best gains tember output declined by one point from coming on Friday, 118 to 112 per cent of the 1957 average The continued US gold loss and signs of "hot money" re- industrial production base. The drop follow-turning to London made a banka ed six months of unbroken increases.

rate reduction look even more Jikely since Britain does not The September development} The development was surpris. want to embarrass the United because it ing in view of other economic States and equally has no love was disappointing camy on the heels of the fest gains reported from virtually for footloose international funds

industrial output all other fields of netivity-con- which do nothing for the ren gain in over the last recession.

the country la The struction, personal income, ver-serves and coat September drup

thafporation proflis, even unemploy interest payments, present production levels are ment. xt only about the sarne the recession those before only slightly above. Continun- tion of walkouts in the key automobile industry in the Bri half of October and the result- it ing cutbacks in steel make virtually certain that the Octo- ber production Agure will prob- ably be the same as in Septem- ber or at best regain August levels.

Icons

05

TEXTILES

WEEKLY

REVIEW

Now York, Oct. 22. The buying tempo in cotton

goods

Dated bonds The dated bends got the best but big undated Issues per cenis like War Loan 31⁄2

drted 11/18ths sterling over the week to £54 1/16.

The car strikes nt General Moters last month and at Ford's the first two weeks of Octoberries combined with a brisk sales puce are creating a shortage of 1902 automobile

may augur well for the imported car business for the first time, in many months.

models that

Turning point

for

While several spokesmen the foreign automobile industries have been quick to seize on this development as a possible turn- ing point that would bring log King car imports back into sharp fotus, car dealers selling foreign cars in the U.S. warn that while the import market has been firming up and will improve fur-

this Uher in the last quarter year, it would be irresponsible to expect a return to anything like the record car imports of 1950.

The fact remained, however, that B2 models of U.S. manufac- groy

quickened ture were in short supply all over noticeably again last the United States. At the be- week, with bag sheeting, ginning of October new car in

also include heavyweight industrial Ventories which

plenty of 61 models-only re- Fabrics, drills and special presented 47-day selling

#

print cloth constructions supply. Comparatively little has been added since in current new gotting most attention.

production while retail car sales

A broadening consunter in- in the first ten days of October terest coincided

with the rise

The Financial Times Indus- trial index gained 4.1 on the week to close al 291. This con- trasted with a dip of 14.7 the previous week. But thin market still is only some 6 points above Its low of 284.7.

Greeks and Japanese bonds added small fractiona la the foreign market but German Dawes five per cent. lost 12 points to £91%.-UPI.

}

Rove me

Fords certainly have no co- plaints judging from a progress when I report they stopped off at their tractor head- quarters in Ilford on my way here.

In the eight months to August 31 they said 50,804 of

their machines had been sold, an in- crease of 3 per cent on last year's record.

The

export markets took 36.603 of them as against 14,207 that went to the farmers at home.

So for every tractor produced for use in the UK more than two were shipped to buyers

overseas.

Ford is

particularly pleased

with the progress it is making

Wall Street

stocks maintain

averages

New York, Oct. 22.

in the stock market last week, holding the averages within narrow trading limits.

totalled 107,000 units, up 8.8 per Buyers and sellers fought to a virtual deadlock

from the comparable in uutomobile production to the cent highest weekly rate so far this periods a year ao. year, along with the continuing strength in row cotton prices, and anticipation of increased buying on a wide variety goods needed for the defence programme.

Current car production so far this month has been held under 100,000 units weekly. As a re- suli, steel production

A number of individual Issues However, Dow-Jones industrials outside the Dow-Jones Indicator were well below their record dropped scored high gains however, res-level at 705.62, up a modest 2.31 for the second consecutive week | ponding well to higher quarterly in the week, and unly barely held on to Lhe corninga, a rash of stock splits

DJ ralts ran into mild pront The demand ranged from spot two million-ton weekly output and dividend boosts, and other delivery through the fourth and level. Steelmen were critical of specific corporate developments, taking to finish at 150.19 for a

Probably

develop loss of 1.63 but ulilities moved the top Arst quarter of 1982, a number steel users who are holding only of standard print styles, along "recession level" steel inventorica ments of the week were reports ahead 2.07 to a new post-crash with lawns, however, remained about 12 million tons. This is of disappointing changes in two peak 130.14, partly reflecting quiet, while buyers continued to four million tons under the in-key bomber programmes, which disillusion with the so-called resist producer price mark-ups ventory level of the stort of 1959. upset the aircrafts, higher earn business boom on later deliverica.

Bag

supplies tightened as the market felt the result of the reduced pro- duction schedules earlier this year, when the mils cut operations to a four or Ave day week, or shirted Tarrow sheeting looms lo other constructions.

sheeting

adopted

One producer' of closs "A" ៧ govern- sheeting reported ment Inquiry in the market for several militon yards of construction alone.

Now high

costs

але

14

With milla

which has al- many Investors into Inks for many of the top chemi-tracted The steel industry says that

cal concerns, and more stimula-highly defensive stocks. users to building rumours of takeovers and fallure of steel inventories to what used to be

mergers among the domestic

Most active levels will considered normal wipe several million tons from oils, many of which moved ahead

sharply.

the planned 1981, steel produc- September industrial pro- bus been reporting dramalle

the duction dipped for

threatens the in- tion. This dustry goal of 100 million tons

of steel to be produced this year.time in seven months, but the

Developments

For the same eight months

8,850 were sold there compared

with 3,450 in the corresponding period of 1980.

Biggest advance

The biggest advance was made in France where there was an increase of 149 per cent. Next came Germany with a 70 per cent expansion.

There may be doubts about the ability of some of our motor car firms to stand up to the free- for-all in competition if we join the European Common Market. But the tractor builders, it seems, have little to worry about in that respect They are doing jully well in Europe already.

Ford's tractor project here will be the biggest piece of in. dustrial development in any of the eight new towns surround-

4. ing London

It will occupy nearly one quarter of the total area allo- cated for factory building in Basildon.

When will the work start? The company was cagey about adding to its official announce- ment of five months ago..

the offices of Basildon Development Corpora- tion I was told: "We expect building of the new plant to begin soon."

But

at the

So for the corporation hog spent £31 million of Govern- ment money in previding fac- tories, 10,000 houses,, a shopping centre and other amenities.

HONGKONG STOCK EXCHANGE

#Our Own Correspondent

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HAPPY VALLEY

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LOOKOUT

Business done of the Hong- Exchange this Kong Stock

10 Ap- morning mounted proximately $4,080,000. Noon KENNEDY TOWN, quotations and the morning's transactions:

Bhares Buyers Hallett HK Bank.. 250 348

HK Bank

Lon. Reg. Allied Inv.

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9.45

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BO or 358

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The result is that in 12 years the population here has risen HK Dock from 25,000 to $5,000. The plan

is for an eventual 86,000.

'Nursery corner*

One Industrial estate has been A second is now completed. being prepared. And Ford motors will occupy the whole of the third one with its tractor production lines.

But here there is a place for a midget as well as a giant. A novel feature of this new town is what they call its "nursery corner."

A number of small factory units have been set up in a ilille community all on Éta own. The idea is to let them to small firms who can take on extra units as they expand.

One of them has already graduated out of the "nursery. and moved on to the main in- dustrial estate.

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TAI HANG

1000 e 12.00 WANCHAI

2000

2000 12.70 WEST MID-LEVEL

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1120

12.10 12.20 20 KOWLOON

120 122

1350

300 @ 122 JO 124 400 ar 11

Talkoo Dock 6815 Provident

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HK Hotel..

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31

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Leung Hor Kee, outside Chung Shan

Restaurant, 119-110 Belcher Street. Garning Medicine Co. 340 King's Road. North Point Lam Kes Blore,' 826 King's

Road.

Shanghal Store, 930 King's Road. Winner House, 310-910 King's Road.

The Peak Stall, Upper Peak Tram Staffed, Hongkong Hotel,

Leung Hong, 84 Spring Garden Lane,

Ground Moor, Wanchal.

Ah Tink Blore, 10 Wong Ma Kok Blanley Store, 108-A Stanley Main Street. Lam Shing Ree, & Fuk Kwan Ave

(garage).

Tiny Store, 7 Morrison Hill Road. Chen Kee, 48 Bonham Road, Kwong Ming Co., 27 Bonham Road. Wal Bank, 28-A Bonham Road.

Asia Press Eba, 80-A Waterloo Road Tin Yat Store, 63-A Waterloo Road. Jimmy Blore, 100-A Argyle Street.

Ling Nam Book Store, 99 Ma Tau Wel Rd.

Kwong Cheong Store, 11-C Gramplin

Road.

Lucky Blore, 109 Boundary Street. Weo Ping Store, 83-A Ngo Tain Wat Rd.

7225 2.375 19000 62.33 KOWLOON TONG. Crescent Blore, 37 Cumberland Road.

GOOD 6225

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2.30 3000 of 2.575

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JJ

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MONGKOK

600 301

1000 630

1000 30

1000 61-32

1000 or 379%

1000

KMB

70 7335

ילט 27

DOG (74 1000 42 74.

800 ft tal

Studebaker Packard, which

|

Yourbati The experiment has been so successful that the second estate Ch. Light ... will have a "nursery" too.

110

110

300 119

DO 110

200

400 6575

In

$200 500

Arst Lark car sales increases, ranked as the week's most relive issue, drop reflected previously dis-up % at $11% on 381,400 shares, counted news-the car strikes | Bating, prime contractor for the and hurricane Carla. On the B-52 on which production is New Arms, I was told, were

Crawley and Bracknell, new towns earlier this year, 1 heard complaints about housing.

olher hand, housing starts con soon to be terminated, was being allowed in and aflotted K Elec.

Economic developments which thued to ellmb as did personal second with a loss of 5% ran counter to the drop in in-income. Steel production was 212,100 shares. dusifal output, includest

off for the second consecutive

Gold stocks

Personal income, which that gold

200 million.

of

tlon

on houses while the growth require-

ments of alder firms were often ignored.

3714 3774

1500

4235

13 100 4316

1000

ILD.

10.00 10.00 2000

Exchange rates

HK Gas

Following them were TXL, a

I heard there is nothing like "Join. the car Home building, which week, again reflecting picked up in September labour situation, but car sales low-priced domestic of, up 1% that here. The "Basildon boys" some three per cent over August for 1962 models were impres-to $19%, and Standard Oil (NJ) are building houses faster than

higher except for up /.

any of the other new towns. The average price for mid- and now is running at an

an- sively

The week stocks along with That is what they claim any- dling inch cotton

nual rate of 1,350,000 units. At Chrysler Corp. at the

Boeing among the aircrafts | way-London Express Service. southern markets last week the same time there have been

were North American down roved slightly but enough to signs of lightening mortgage

24, Bendix 4%, and Douglas snove the market to a new high ercellt, the Brst in almost a year.

i despite higher earnings. Other weekly figures showed at 33.01 cents a pound,

Pacific Cas & Electric pro- Increasing Colton

An posed stocks shrank In September scored its other $14

3-for-1 split and million, carloading dividend boost and added 9% in have been compelled Lo

second monthly increase and now continued to 'drag behind a year the utilities, Artsona Power, Con raise prices, but some weavers

runs at an annual rate of $420,- ago, business failures increased Edison, and Southern Cal Edi- mark-up now predict further will happen if production costs

a bit, and Standard & Poor's son roae at least 3.

Business was dene In the local whomicial exchange market keep rising. That idea brought

Baxter *Reports corporation and Moody's Industrial produr-

Laba, another stock morning at the following tater: some fair business in tarpaulins,

indexes were all off splitter, rose 24 in the drugs US dollars (per 81), wide shootings and duck cloth all helds with the single major Oil, Coal and electricity output 1% on a management reshuffle. Japanese yen (per 100)

slightly from a week earlier, and Richardson-Merrel jumped sterling noter (per 21],, Australian notes (per £1) Bristol-Myers wan ahead 44 Cambodia Fle) (par 100) the Ave but Merck dipped 4. Trading volume for

IBM, French new frane (per 1) two new

electronic Brazilian cruzeiro (per 100). 10,001,760 out with

added 141⁄2 in.

Argentine peso (per 100) it#

Korean wan (per 1,000) an ahares from 10,172,070 a week devices

Acctions where are caller and 12,932,430 shares, in

Varian and Italian fira (per 1,890) the comparable wetk of 1960.

Texas Instruments fell at least Chinese JMP pr 3 and Zenith gained 34.

Taiwan yuen (per 16) Thai baht (per 100) Burnie kyat (per 10) blue chips highlights were Fakistan rupes (per 10).... Du Pont and Baatman Kóć ik | Macro patara (per tijd, BD 43% and 9%, respectively. Philippine peso (per 1).

Norwegian krone (per 100) on higher earnings. -Bears Bingapore Straits (per 1) Roebuck up 4%. Owen Illincik Swiss frane (per 1).......

Netherlandis quliders (per 1) down and Westinghouse Wen German D-Mark (per 13 off 24. Most steels And Cuban peso (per 1) Motors softened.

constructions, brokers said.

profits gains in virtually

exception of the airline industry which this year is headed for Leading canvas products Its largest net low on record. fabricators and suppiles sounded Decreases in traffic volume,acions

a strong note of optimism on higher operating costs and the outlook for their business at inadequate fare structure their three-day annual conven- being blamed. tion last week.

E. H. Grasso, vice-president,

Bystem

rose.

swelled to

Unemployment, which Standard & Poor's Inclusive

far na employment goes despite BANK OF ENGLAND

STATEMENT

6 17.10

1000 1

TSIMSHATSUI

YAUMATI

Kam Wah Blore. 126 Waterloo Road. Shum Kee Chrong, 1-B Somerset Rand.

Gay_Blore & Cafe Emited, 104-A Prince

Edward Road,

Tin Shing Store, 100-170 Frince Edward

Road.

American Lloyd Travel Service, Ambas

nador Hotel Arcade, Astor Hotel Comer

Cameron

of

Cornwall Avenue.

Rood, and

Aurmat Moon Hotel, 25 Kimberley Road. Goldlocks Co. 30 Mody Road. Grand Hotel, Carnarvon Road, International Hotel, 23 Cameron Road; Kowloon Bookshop, Mirador

84 Nathan Road.

Mansion,

Palm Court Hotel NC-D Cameron Road. Sunny Co. 00 Nathan Road. Swindon Company, 25 Nathan Road, Yan Cheong Blars, 20-A Austin Avenue.

Evergreen Biore, 300 Nathan Road.

YAU YAT CHUEN Chi Wal Store, 31 Begonia Road.

NEW TERRITORIES

CHEUNG CHAU.. Fung Kut Co., 104 Hing Lung Street. FANLING

102049 10.00 SHATIN

21.00 21.70 800 21.70

300 @ 21.00

2008 21.70 SHEUNG SHUI

200 21,00

3000 3 21.70

100 120

200 € 21.00

8000 r 21.10

TAIPO

300 or 21.30 YUEN LONG

4.40 17800 4.45

16000 or 4,40

10000 OF

030

100 6

24.00

1400 21.00

400 1.50

B00 * 24.70

100 24.0G

MACAU

Wing Woo Store, Luea Shing Streat,

Luen Woo Markat.

Lee Man Blore, 10 Talpo Road. Sun Bun Co. 203-108 Second Street,

Shalin New Marke

... Sheung Shul Haitway Station Blail,

PHILIPPINES

2002210 SINGAPORE

this

8,001 10.02

Giliman

4.30

12.03

Jardines

24.40 24.00

1.49

13.10

1.11

1,00

0.50

4.00

1.00

4000 u 24.40

0.45

1230

G. 1. Cement 0

01

309 01

26.00

100 - 9135

0.70

7.35

200 i 30

0.39

1500 4 304

7.70

Waleon

42

101 1.54

0,00

Textie

6.40 0.10

Nanyang..

12 17.40

1. Trakt

stun:phraya

HK Mine

Life insurance

Dairy XD. 33% 20% 1000 TAIWAN

A. Rubber 5.50 0.66

Ming Kee Store, 49 Fu Shin Street. The Anh Cố, 07-10 Mate Brot

E. J. Bats To Sura, Montepio Build-

Ing. Apt 14, fut door,

Fat Emas Publishing Corporation, Railroad

and 18th Bitents, Port Area, Manila.

甲

Marican & Bots, 74 Orchard Road,

Singapore, 9.

1. v. Ching Pabilention Distributors, 6 Chang

An Road, E, Section 1, Taipei.

30017 THAILAND

300 48

71 7.70 2000

34.40 24.10 3000 19 44

since February has been 300 stock Index closed at a new Mount Vernon Mills, however whittled down by 2.0 million, ugh of 68.45 for a gain of 044. Rounded a warning about foreign This, the Commerce Department competition, and called for in- creased mill efficiency If the in-enld, is being considered as "full dustry is to meet the "serious covery" from the recession an challenge" of low-priced in the fact that a fard core of un- ports problem, and a weakening employed persists. This would export altuation, exlat today: indicate that the gains in em becauna of our support priceployment were made in

most

American Optical, American on cotton.

Storen, Crowncurk, and United cases from a pool of now man- because of much lower wage

Clan four or more, Parmelec jun- London, Oct, 22.

Metal... 2. *cales

In foreign countries," power as it became available,

The Bunk of Englund #into-

ed 8% and company offefals wero Sun Life Assurance Company City Hotel Income belnem (new ment for the week ended Octo-nt a loss to explain the rise of Canada has Junt panned the Хр He emphasised the need for orilers) of durable goodsį ber 18, reada na follows?

Timken and J. R. Thompson Can.$10,000 milien le Insur Lane, Craw standardisation of manufacture manufacturers rose in Septem- Noise in cirqulation - "£7,309,406,371 | skidded 4 or more.

ance-in-forcemark, Mr I. Anis Nav, -. 1,234,400 ing methods if the industry is bor to the highst level alnico Public deposit w

A total of 1,450 issues were Small, Sun Life branch manager at my... 437,347,810

U traded during the week, of in Hongkong announced.

This Macao cieo. 1070902.841 these 842 advanced, 108 to new means the company's Insurance- 73h, Druck 20002140 1901 high,

And 060 declined, in-foren les doubled in less than 67 striking new łowamUPI. 10 JERTE.

Gramo said.

Oppostis

to meet the hiport threat and mid-1950, some $15,700 million

Fasement popurifing *o continue an a strong Ins up one per cent from August, Güney cutler

· duairy vital to the national de- seven per cent from a year ago. #luce/pla fence."----UPI.

UPI.

Natio

3.0

Bo

驸

29 201

12.30

1.20

tertainment Construction

48

2

3000 or 24.40

100,000

1tbe 2.10

Post Publishing Co., Ltd., 55 Mansion

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For further details write or telephone

THE CIRCULATION MANAGER

SOUTH CHINA MORNING POST, LTD.

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