HONG KONG DAILY PRESS, WEDNESDAY, JUNE 21, 1933
MONEY AND MARKETS
FINANCIAL NOTES FROM LONDON
PLAN FOR CUT IN GOLD COVER
EFFECT ON U.S. NOTE ISSUE
(Special Air-Mail Service)
LONDON, June 6. Washington. Holding the fon- centration of 50 per cent. of the world's goal in five countries to be the main obstacle to a universal return to the Gold Standard, the United States London delegation is exprcted here to suggest 14 nete means for a gradual redistribution of gold.
reserve
£1,000 (against £2,033), and the £500 (against income-tax
The balance forward is 1,500).
to £6,210 reduced from £8,544 Meeting, June 8.1
BRITISH NORTH BORNEO
(CHARTERED):
and
SILK AND THE
BOOM"
JAPANESE COCOON RAISERS WARNED
TOKYO, June 7. "There is an increased demand for working funds by cocoon raisers, whe, encouraged by the recent im provement of the market, want to increase their production to the maximum. The Central Deposi tory of Industrial Associations, however, will not readily meet the demand. The management is keen- ly alive to the need of caution against the present trade boom.
The Central Depository does not entertain the optimistic view as is held elsewhere on future trade. In its opinion, the market quotation was boosted up by the hasty buy- ing of small reelers, who are short of raw material. The cover by large operators is still insignific- ant. It is premature to anticipate a marked increase in the consump tion of raw silk in the United States through the inflationary measures there. Nor can ak silk traders foretell the success of the World Economic Conference and the consequent of prosperity. It is dangerous to increase the produc tion of cocoons at this moment.
cocoon
HONG KONG STOCK MARKET
YESTERDAY'S OFFICIAL
QUOTATIONS
TANAHION IN JAPAN
BIG INCREASES COMING
Tokyo. As already reported the Conditions were again compara-opposition hitherto maintained by tively quiet to-day, but Hotels and Mr. Takahashi, the Finance Mini4- Ewos
improved their position ter, to the increase of taxes from alightly on a few more buyers com- the next fiscal year has been ap
preciably relaxad. ing into the market.
Among the Utilities, Electrics, Telephones and China Lights were a firm market-
.Sales,
Union Insurances, 8635. Docks, 810).
Peak Troms (Old), $15.88/15h. Electrics, 8731/734. Telephones, 82DĮ.
Buyers.
Douglases, $32.60. Indo-Chinns (Pref.), $30.. Venz: Goldfields, 84. Benguet Explorations,20 cents. Docks, 810
Providents (Old), 83.05. Hotels, 87.10.
Hong Kong Lands, 876), Humphreys, $18.00.
Ewo Cottons, Sh. $14.70. Peak Trams (Old), $15). China Lights (Old), 813. Electrics, 873).
Cements (Combined), 87.55. Dairy Farms, $274.
Govt. Loans, 3 per cent. Prem..
Sellers.
Hong Kong Banks, $1,755. Hong Kong Trams. $21.80. Constructions (Old), 83,00 Wallace Harpers, 83.
INVESTOR'S EAGERNESS.
•
The Finance Minister has often declared in the past that it will be premature to increase taxes in the fiscal year 1934-1933, but the view bes in the meantime been growing among the permanent officials of his Department that he basic bud- getary policy for the next year should be to defray ordinary ‚ex- penditure with ordinary revenue, and that where a revenue deftelt occurs, taxes and income from Go- verninsnt enterprise should be in- creased to make it up.
This view has had its effects on the Finance Minister, who has now so far relaxed as to express him- self favour of increase of taxes within limits in the new fiscal year
Admiral Saito, the Premier, fa vours the idea, nor are Baron Ya- mamoto, the Home Minister, Gen- eral Araki, Minister for War, and Mr. Minaini, Minister of Com munications, against it. Mr. Mit- suchi, Minister of Railways, is also said not to be ostile, provided the time and methods are wisely chosen:
Although the view in favour of higher taxes is thus predominant in Government circles and the Fin. ance Department authorities are making the necessary investigationa for the purpose, the Government is chary of committing itself. This hesitant attitude is ascribed to the Government's uncertainty about the Seiyukai's future course of ac- tion...
The total revenue of the British The probable method to be North Borneo (Chartered) Com adopted was revealed by Señor pany fell from £333,001 in 1931 in Pedro Torres, the Chilean delegate to 292,800 for 1932, revenue to the World Conference, who is North Burnco declining by £32,707 Expenditure declined how here as the last of President to £271,632, Roosevelt's visitors for a pulimin further from £298,267 to E254,787, ary discussion.
including £32,341 (against £34,185) According to Turk Times, for depreciation, railway renewals, Sedor Torres has been discussing contingencies, &c. After providing with the President and the State for Debenture interest and other Department & detailed proposat to general charges there is a loss for enlist the aid of the Central Banks the year of £46,404, which com- The management is reluctant to
loss of £34,872 for give liberal facilities to and adopt a world-wide 25 per pares with eent, cover for the currency in eir-1931... This loss is covered by raisers in this situation, particu- culation-20 per cent, in gold and transferring £50,000 from reserve larly in view of the disastrous ex- 5.per cent in silver.
account, and the credit balance to perience of 1916 when owing to a go forward is slightly higher a slump in oocoon prices, the De- Big Gold Stocks Freed.
£11,877 (against £10,341).
pository could not recover a large SIAM GOVERNMENT LOAN -There was a credit balance on part of the money accommodated The proposal, if adopted, would
to cocoon raisers, Last year the have an immediate and far-reach-cancellation of Debentures ing effect in the United States, Certificates of Indebtedness, sales Depository lent 80 per cent. of the
If the Seiyukai definitely decides and which still maintains the legal 40 of investments," apprecia- value of cocoons, but for the above
to sever conuection with the Gov- per cent. cover. At present the tion of securities, &c., amounting mentioned reason, the management
ernment, it is feared the increase Federal Reserve aystem has in cirto £48,720 for slightly more than has now decided to reduce this
BANGKOK, June 7.
of taxes may put in the party's culation notes of a value of about the loss on the year's working), limit to 60 per cent. The manage-
The Government considers ita In-hands good weapon with which £860,000,000, and the gold reserve which has been added to the re-ment will also advise cocoon raisers ternal Loan to have been a great to attack the Government. In all
account. this account thus to obtain payment of at least 40 amounts to £576,000,000.
aubscriptions probablity, the Government will re- Under the suggested scheme the shows little change on the year at per cent. in cash from reelers. ed at Tes. 1,600,000. In Siam in-frain from any definite statement
Floating Lesete total gold stock could be reduced to about £79,475.
Most reelers are of the opinioned at Tes. 1.600,000. In Siam in- of policy in this regard, until it £165,000,000, and gold worth about about £807,000; creditors and that the present market quotation vestors expect a high return for is assured of the. Seiyukai's atti £400,000,000 would thus be released credit balances, £437,000. Meeting. for cocoons is too high. Assuming their money, and in the loan just tude towards the Government, it for other purposes. The silver
the raw silk quotation for White Boated the Government relied upon, is said. 13-15 denier D grade at Y850, as and, as the result shows, were justi- project would allow for the dis- persal of further £33,000,000
their cost of production is Y130, fed in doing so, on a small num worth of gold.
they can pay only Y720 or a price ber of big investors with surplus factor of 45 kake per kwan of co-funds, who from patriotic motives,
The present market indica-
no doubt partly because in. these The Italian salvage steamer Arcoons. tiglio made her firet visit to Ply-tion, however, is 40 or 47 kake. If days a safe 44 per cent. is not too mouth this year, on June 3, with the market continues its upswing, easily obtained, came forward as gold recovered from the wreck of therefore, reelers will be unable to heavy subscribers. The amount the P, and O. liner Egypt, which carry on business on a profitable offered would have enabled Govern basis. Many reelers are now exment to cover an issue of 11,500,000 covers.-Japan Chronicle:
This is the first indication that has been disclosed of any plan which the delegation may be con- sidering. Although further de- tails are necessarily still, lacking, it is evident that the Sgures quot ed above are dependent on there
serve
June 27.
MORE GOLD FROM THE
EGYPT
Buccess.
Private
EXCHANGE
CLOSING QUOTATIONS
being no further increase in the sank of Ushant, eleven years ag|ercising every caution in making tienls. No underwriting of the IN LONDON.--
authorised note éirculation.
With the present 40 per cent. cover, the US gold, stocks would permit the issue of notes of a total value of £1,400,000,000. If the cover were reduced to 25 per cent., would protect notes up £2,300,000,000.
it
te
It has now been decided at the last moinent that Dr. O. M. W. Sprague shall, after all, go to London na financial adviser to the
there.
Attack on Mr. Bingham,
after a collision in a fog.
Last year the Artiglio salvaged about three-quarters of a million pounds, and there is believed to be bullion worth another £400,000 to be recovered.
The Artiglia landed gold bars and sovereigns worth about £50,000, which were sent by train to London.
PLATINUM
per
{
THE EXCHANGE
MARKET
MESSRS. ROZA BROS.
REPORT
Weekly Sailings Transpacific
To San Francisco, Los Angeles & New York
via Panama Fortnightly sailings on Wednesdays Fros, Coolidge 7 June 21, 1a.m. Pros. Taft..... July 5 Pres. Hoover. July 19 Pres. Grant.... ...........Aug. 2 Pres. Coolidge...Ang. 18 Pras MoKinley Aug. 30
To Seattle and
Victoria
Fortnightly sailings on Saturdaye Pros. Clevoland ... June 24, 1a.m. Fres, Jackson ....July 8 Pres. JeffersoD SAMANLA Pres. Cleveland Pres Jackson
***Aug. 12, ...Aug. 26
ROUND TRIP FARES TO EUROPE & AMERICA,
Direct Special through rates to Europe via United States. connections with all Atlantis lines. Choice of rail lines across United States and Canada, liberal step-over privileges for Sight-seeing. Full particulars upon application,
Fortnightly via Suez to Europe & America
Fortnightly sailings on Saturdays via Manila, Straits, Colombo, Bombay. Suez Canal, Alexandria, Naples, Gono, Marseilles, New York and Boston
Pree. Harrison
Pres. Hayes..................
Pres. Pierce...
Batth.
Jane 24 Pres. Monroe somme Aug. 5
80.
July 8
..July 22
Pres. Vau Beren .....Aug. 19,
TO MANILA
Next Salling.........Pres. Harrison June 24, 8 a.m.,
Pros, Jackson Pres. Taft rakstotin Pres Hayes...tatantinst Pras. Hoover
Pr. Jefferson.......
Free, Fiarse.....okterpoksobem, ý July 22
June 17
June 20
July 8
Pres. Grant July 25 Prea. Monroe
July 11
July 15
Aug. 3 Pres. Cleveland.................... Aug. 5
Connecting with 8.8. MATON To CEBU, ILOILO, ZAMBOANGA
DOLLAR STEAMSHIP LINES AMERICAN MAIL LINE
PEDDER BUILDING-HONGKONG.
CANTON BRANCH, SHAKE BOAD.
NEW YORK STOCK EXCHANGE
ASIA LANDS, LTD., QUOTATIONS
- (INCORPORATED IN HONG KONG.)
Tel. 25380-Gloucester Building, Room 308.
~\{BRUTER'S AMERICAN AERVICK]
New York: Juno, 19. - -
Dow Jones Averagce: High-1032 Low: June 17. June-19
June 20, 1833.
30 Industrials
20 Rails
20. Utilities
Telegraphic Transfer... Bank Bills, on demana 1/42 Bank Bille, 4 months
sight Credits,
་་
4." months' sight NEW YORK:-
*/4*
1/50
loan was made, but Government more or less had arranged for the loan to be completely covered, and this was evident when the sub- scription from the Privy Purse. foundations and certain banks and companies came in. Despite this ON success, as in the past, it is felt that also in the future, Siam must continue to count on foreign_mar. kete for her further capital quirements.
URAL DISCOVERY
re-
MINERAL THAT MAY HELP TO MAKE ARTIFICIAL RUBBER
Platinum, much of which is ex- Jelegation, and not stay at Wa-tracted in England from Canadian shington, as had been expected.
nickel ores, has suffered a sharp
Messrs. Roza Bros. have for- decline in pries, during the past warded us the following exchange two or three years in an odd series
market report for yesterday:- Some light is thrown on the dit-of ups and downs. In 1930, for
Silver prices rose yesterday for both
deliveries, the quotations ficulties in dealing with the opposi-instance, it stood at 2508, tion which the Administration wilt ounce, eighteen months later it being 10 3/16 for Ready and 19) Silver advices re- have to face by the demand of fetched only 95s., and to-day costs for Forward.
But while
ported speculators DA having Senator Robinson (Republican) for only 1506. an ounce. the recall of Mr. Bingham, the the more important sections of the bought. The Continent sold. The Ambassador in London, following jewellery trade and the Assay Office tone at the close was uncertain the report of his recent speech are regarding with concern the at-with buyers satisfied. In America
Sverdlovsk, U.S.S.R.-Last sunt tempts of unscrupulous traders to the rate was higher by 1 cent at
mer, after a forest fire near Lake Mr. Robinson is already seeking sell platinum alloy as the real for Spot
Norman thing," they are equally concerned the resignations of Mr.
New York advices reported the Buldym in the Urals, there was dis- Davis and Mr. Woodin, as "Mor- with the problem of the cheap 0
stratum of multicoloured mineral, He now
adds Mr. enrat gold watch which is fooding prening rate at 4.12 and the clos-covered in the burnt-out woods a
ing rate 4.11. gan pets."
undamaged by the fire. It proved Bingham to the list, because he the markets. Although these wat
to be a rare species of mica-vermib- has "made a 'speech undertaking to ches, which sell for £4 or £5, are
gulite. A subsequent survey of the overtura the traditional policy of actually 9-carat gold and are hall-
area brought to light rich deposits this country prevailing since "Wa marked as such, the gold, used in shington's days."
their manufacture is of such a
There were sellers after the open. [of the mineral. thin texture that it is seldom
mg at 1/5 1/16 but the selling rate
Altogether five strata were found, worth more than a few shillings, soon rose to 1/5 resulting in busi- each 15 metres in depth. The de and the whole watch seldom more than ten or fifteen shillings. What ness at 1/6 3/16 for July delivery. posits have already been estimated After crediting tribute of £3,084 the trade is now agitating for is Subsequently 1/5 9/32 was done for at 40.000 tons. Until now, vermib received from Hong Kong Tin, a standard gauge for the thickness September and 1/5 August. The Limited, the net profit of Hong of, gold, some of which is now. less market closed at lunch time with gulite has been bought by the Soviet Kong (Selangor) Rubber, Limited than eleven-hundredths of a milli- sellers at 1/5 3/16 June/July, 1/5
HONG KONG (SELANGOR) RUBBER
Firin.
Market.
Sterling.
Bank Billa, on demand 29 nom Credits, 60 days' sight.. nom ON PARIS
Bank Billa, on demand 100 Credits, 4 months' sight 840 ON INDIA:
Telegraphic Transter... Bank, on demand. 1991 ON SHANGHAI :--
On Demand
ON KOBE:-
On demand
ON MANILA:
On demand
ON SINGAPORE:-
On demand
ON BATAVIA :——: On demand ON SAIGON
On demand ON BANGKOK:- On demand SOVEREIGNS, Bank Buying
Rate BAR SILVER, per ös
dimensions is to 20 times and also changes in colour. It is an excel- can be substituted for several kinds Lof paints, and is a perfect însula- lent material for house decoration."
At a temperature of from 250 to Ftion material. The possibility of
Union abroad.
40 Bonds
41.22 90.£3
Change
5.99 5.76 up
88.78
41.30
13.22 41.67"
44.73 2.00 up
36.11
16.53 33.39'
83.26
30.26 2.87 up 65.78 84.18 B4.85 .37 up
Azia Lands, Limited, has received the following report from their Now
York correspondents, E. A. Pierce & Co. Inflation was the whole talk- today. The reported refusal of the Administration to enter into an agreement at this time to stabilize the Dollar touched off the market. and overcame virtually all the effects of last week's reaction. It now looks like new high ground for the market. Wheat: The most influen- tial factor has been the feeling that the Administration will adhere to the programme calling for higher commodity prices. This, coupled with firm cables and the strength of Foreign exchange, was responsible for the advance. Cotton: As outcome of the plan for an acreage cut by the process tax conditional support was received from producers There were bullish textile advices and the weather is favourable. Silver: The advance was due to short covering and Commission house buying. The bulk of offerings was by Trade profit-takers but there was some foreign selling. At the close the market ruled steady. Business Done: 5,480,000 shares.
Canadian Pacific
[49]
1932
.1109
HIGH
N4
DIV. $ LOW PER. SE.
LAST SALE
June 17. June 19.
30%
3.00 Air. Reduction
$70.
30 núm
123*
42
0.00 Allied Chemical & Dye
19
117
$6
208
4.00 American Can
88.
92
****** 60
37.
5
American Smelting..
201 ·34F
137
701
9.00 American Tel. & Tel.
*1262-1317
5
921
44
15.00 American Tobacco "B"
801 201
*60
40
71
1.00 American Waterworks
.35
301
10%
3
...... 133
1512
281
Anaconda, Copper Mining 2.00 Auburn
14
107
507
167
40
Bendix Aviation
133
17T
1/62
43
18
1.60 Borden Company
334
19 3 16
20
14
16
884
161
J. I. Case
731
22
41
0.50 Caterpillar Co.
21
23
47%
170
2.00 Chase National Bank
301 bid 317 bid
1.00 Chrysler Motors
28.
32
. 684
3.40 Consolidated Gas of N.Y.
371
50%
3
Curtiss Wright.....
3
58
23
3.00 Drugs, Inc.
021
651
.831
22
2.00 Du Pont de Nemours
3.00 Eastman Kodak .........
Electrio Auto-Lite Co.
21
8% s. Electric Bond & Share
48...
Electric Power and Light...
12
16
201
81
0.40 General Electric
401
198
1.60 Général Foods
74
1.00 General Motors
26
26
24+
10%
-14-18
21
24
40
418
11
112 bid. 112
15
201
18F
89
931
95
a74
1.00 Loew's Inc.
212
221
257
217
201
2.80 National Biscuit
104
181 1.00 National City Bank....... 1.20 National Dairy Products 90.80 Otis Elevator ...
34 bid
19
2.00 Pacific Gas & Electrio
Packard Motors
27#
299
61
for 1932 was £1,416. A dividend metre., The minimum proposed is 13/32 August and 1/5 September, 300 degrees verinibgulite expands its its use in the production of artifi-
of 3 per cent. is again proposed, twenty-five-hundredths of & milli-buyers at 1/32 higher respectively.
the general reserve is to receive metre
Asia Lands Limited
Gloucester Building
Tel: 28380.
We offer you a complete brokerage service for the purchase or sale of
New York Securities Daily quotations sent-gratis-upon request. See our investment news on the Financial Page of
The Hongkong Daily Press
Canton Agents
John H. Ferguson & Co.
82, B. C. Shameen.
Tel. 18624.
The market opened with sellers at 29 bat business was ona ar- ranged at 29 for near delivery. The market closed with sellers at 20 June. 9 13/18 July, buyers' at
higher respectively.
Yen.
•
Merchants were quoted at 112) Her near delivery.
Shanghai Dollára. Shanghai dollars were quoted at: 110 for near delivery. Shanghai, Firm. Sellers were indicated at 1/3 for near, buyers at 1/3 9/16 for cash.
IN THE AFTERNOON The market appeared easier in the afternoon.
Sterling.
Business was reported at 1/5 3/18 for near delivery, finishing with sellers at 1/6 June/July, 1/5 5/32 August and 1/6 3/16 Septem- ber, buyers at 1/66/32 for near, 1/8 3/40 July, 1/57/32 August and 1/52 Beptember.
- Gold - Dollars
Business was done at 30 for August delivery,
The market closed with sellers at 201 June 20-13/10 July, 2018/18 August and 301/16 September, buyers at 1/16 higher respectively.
- (Continued on next Column)
cial rubber is now being studied.
PACIFIC ORIENTAL
MONTHLY CARGO AND PASSENGER SERVICE
M.S. "SELANDIA" Sailing on or about
FOR LOS ANGELES, SAN FRANCISCO,
ETC. via SHANGHAI ....
22nd JUNE
PASSENGERS ACCEPTED FOR
CARGO AND P
SHANGHAI, SAN FRANCISCO, VANCOUVER, SEATTLE, LOS ANGELES, ETO. THROUGH BILLS OF LADING ISSUED TO OVERLAND POINTS.
Excellent Passenger Accommodation
Passenger fare Hongkong/Ban Francisco G8120 (1st class only)-
For Freight and Passage, etc, plexes Apply to
The Bast Aslatie Co., Ltd. The Chinese American Shipping
Company
Agents
JOHN MANNERS & CO.LTD.
Offce z Manan
Agent HONG SLING
14
BANK BULLDING (TOP PLoon), 7, Quann's BD, Criznal,
„THEEPHONE : "24071.
7,00
1. Gillette Safety
1.20 Gold Dustj
0.80 International Harvester
(Preferred) International Tel. & Tel. 4.00 Liggett & Myers "B"
Montgomery Ward......
0.50 Pennsylvania Railway,
Radio Corpn. Bears Roebuck
1.00 Standard: Brands,
Standard Gas
1.00 Standard Oil Co. of
Jersey
Bocony-Vacuum Corpn. 1.00 Texas Corporation.
Trans-America
1.00 Union Carbide & Carbon 6.00 Union Pacific.
United Air and Transpor
0.40 United Corporation
United States Steel
· Westinghouse A
201
10
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