European Stars and Stripes (Newspaper) - September 08, 1985, Darmstadt, Hesse                                Sunday september 8. 1965 the stars and stripes Page 19 / business views congressmen support bailout of farm Lender Washington a members of Congress and other Federal officials reacted with Relief to a Surprise announcement that the farm credit system the nation s largest farm Lender will seek outside help to Shore up its deteriorating finances. Finally said rep. De Jones d-tcnn., chairman of the House agriculture credit subcommittee after get Ting the word. We re going to have to do a bailout just like Chrys Ler and new York City said Jones who has scheduled hearings on the Issue. While it is federally sanctioned the farm credit system uses no Federal Money instead raising capital by Selling Bonds. It is cooperatively owned by its Farmer borrowers and regulated by the Federal farm credit administration. Jones said upward of $5 billion will be needed to restore the financial health to the $74 billion system. Others said the Cost could run As High As j20 billion. Farm credit administration spokesman Roger Stromberg said the system still is expected to be Able to manage its problems for the immediate future. He said worsening farm financial projections indicate that an Indus on of Cash will be necessary in 18 to 24 months. Donald e. Wilkinson Fca governor has been in sisting the Banks could handle their losses through funds transfers increased interest rates and Economy moves. Last cock he shifted positions saying further deterioration in the farm sector makes potential loan losses More than the system can absorb. He recognizes that it s got to be faced at some Point said rep. Cooper Evans a Iowa who has advanced a Long list of legislation to bolster the system s finances. Evans said Wilkinson s Public admission of the sys tem s problems would mate it easier to gel remedial legislation through Congress. The farm credit administration Board of directors met to discuss what kinds of help the system should seek. Industry insiders have been speculating for months that despite their Public bravado the system s Regula tors eventually would have to turn to outside sources including the Federal government. The system holds the largest single share of the nation s s212 billion farm debt. Because its loan portfolio is exclusively in agriculture it has taken a worse than average beating from farming s economic setbacks. The farm credit system is made up of 37 regional Banks that make mortgage and operating Loans to Farmers and Loans to farm cooperatives. In it suffered loan losses of $428 million last year the greatest in its 70-year history. Eleven production credit associations the local lenders that serve As a conduit for operating Loans have been liquidated Over the last two years. Internally financed bailouts already have been a Iro cd for the system s Spokane. Wash., and Omaha leb., districts. Its financiers say the system May incur a substantial net loss this year. Several avenues arc under discussion for lifting some of the Burden of system Loans that have gone sour. A new corporation either a Federal entity or a private consortium could be established to take Over the system s bad Loans along with non performing farm Loans of other lenders. Federal guarantees could be extended either to the system s farm Loans or to the Bonds it Sells to raise capital. Or the government could make a direct Stock Purchase from the system. Agriculture Secretary John r. Block has t said what kind of bailout the administration might support or when its recommendations would be ready. Block said survival of the system is important but i want Farmers to survive Loo. And Farmers cannot sur Vive with 16 percent interest. They need to have competitive interest  some midwestern farm credit Banks have been charging higher interest rates to help offset loan losses. Changeable Sif Waffon a Cut Tomor in a Rutab main Tov Ritt information office Exchange Monty at what a reputed to of the veld t tint automatic Exchange machine. The machine to change Bra Fri pounds French Frana dutch Guild to and Ger Man Mark into belgian France. Digest bad year for Lloyd s London a Lloyd s of London says it lost a record $259 million underwriting insurance in 1982, More than four times the amount it lost the year before. Lloyd s chairman Peter Miller said some sectors of the insurance business were prof Itable but the enormous loss of $433.7 Mil lion in the general liability business put the Overall figure in the red. Lloyd a which has some 26,000 members backing syndicates that insure everything from ships to satellites always releases its annual statements with a three year lag to permit All claims to be registered so the figures for 1982 arc the most up to Date. . Trade woes United nations Dpi the american foreign Trade imbalance if uncorrected could reach $1 trillion by 1990, making the . External debt equal to that of All other countries combined a . Re port says. It warned this could Lead to a crash Landing of the Dollar. The . Conference on Trade and development in its report for 1985, noted that the . Trade deficit reached an annual rate of $120 billion in the first Quarter of this year and approached $150 billion at the end of the second. Wine forecast Good Paris a with the 1985 Harvest just getting under Way in the Southern Vine Yards this year s Vintage appears to be in general very Good with Normal volumes the National inter professional office for wines oniv1ns has reported. The organization s predictions for the 1985-86 season is for 64.3 million Hect Olit ers up 1.1 percent from the 1984 Harvest of 63.5 million hectolitres but Down 4.5 per cent from the average of the past five years. Contrary to last year where vines in a number of win making regions suffered from various diseases caused by excessive dampness the 1985 summer resulted in a very Good development of the  boosting morale Moscow up in an Effort to combat lagging labor productivity the so Viet Union says it will assign teams of psychologists and sociologists to work Sites to Root out tensions and improve morale. Sociol psychological services must help promote Good relations Between workers a sound moral climate and bring out the worker s maximum  said a Lead ing editorial in pravda. Investor s guide by William a. Doyle q. So far this year i have sold a number of stocks at higher prices than i paid for them. As a result. A m tubs us capital gains to report on my income tax return. I Wou Flike to offset part of those gains a losses available to me. I have 799 shares of a Corpora Tow in chapter 11 bankruptcy proceedings my Cost was Ore than $5,000. I asked my broker to try Selling the 7� Tare. He said Tom is a bid for that Stock at to cents share but the bidder will buy Only lots of 5,000 shares or More. W he Slock certificates Are in my name Only. Would the internal Revenue service allow me to take a us loss if i Tell this Stock to my wife if not can i sell them to Tome okie else without going through a broker a. You cannot take a capital loss on the Sale of Stock or any other capital asset to a related parly l t e iks definition of related parties includes your spouse Broth m. Siste a half Brothers half Sisters ancestors and Lute Al descendants. You can establish that tax loss by Selling someone else l transaction Between two a a records. You fill in he assignment form on the Back of the certificates. Your signature must be guaranteed by a brokerage firm commercial Bank or Trust company. You Send the certificates by registered mail return receipt requested to the Stock s Transfer agent which issues new certificates in the buyer s name. However when a company is in bankruptcy it might no longer have a Transfer agent. Nonetheless As Long As you have completed All the Steps in the paragraph above you have completed the Sale. If the irs questions your capital loss your record will show the transaction was made. Suggest you ask your broker to buy the Slock from you for a nominal sum say $1 for All 799 shares. Many brokerage firms will do that for Good customers. You might have to pay a fee outside the Sale Price. Q. Aren t Here any brokerage firms from which i can buy Slock without hating an account with them i want to buy Penny stocks monthly. One i want now is Selling at 16 cents. My goal is to keep buying and hold that Stock until its Price goes up. I have called several brokerages. Each one says i have to open an account somewhere around $2,500. A. Even if you make just one Purchase of Sale through a brokerage firm you have to open an account. Thai really is a technicality and no big Deal. Many brokerage houses won t handle Small transactions. Each urls its own rules on that. For some the minimum is $2,500 or thereabouts. For others it s lower. Penny stocks car. Be different Story. Time was when Penny Stock meant anything trading below $1 a share. Now because of inflation that term is applied to stocks Worth less than $5. The majority of brokerages shy away from handling Penny stocks for Good reason. Almost All Penny issues arc risky As All get out. If you re bound and determined to Roll Dice in Penny stocks which is what you would be doing get on the phone and Call every brokerage firm you can find in the yellow pages. Sooner or later you la find one willing to take your action. Q. It would be a great service if you would print a Liston Penny Stock brokers in your column. Will you do so a. Never this column never prints lists of any types of brokerage firms. To do so would be taken As recommendations. I never Point readers toward particular Bro Kerages any More than i recommend individual stocks. Over the years complaints have come to this Corner about virtually All brokerage houses including the big Gest and Best known names in the business. I d be Loose at the hinges to name Penny Stock brokers Many of whom belong in the Slammer. King of Valuri columnist Dovle a looms Wal non questions but he pm provide answers Only through the column. In care of the Stan an stripes. Apo092ii