European Stars And Stripes (Newspaper) - May 25, 1986, Darmstadt, Hesse                                Sunday May 25, 1986 the stars and stripes Page 19 business news drop in volume troubles brokers most new York a the Way Many Wall strict cars Sec it there is nothing wrong with the Bull Market right now that a dose of extra volume could t cure. The chief complaint among brokers lately has t been about the erratic behaviour of Stock prices but rather the drop in the amount of activity taking place in the mar Ket. It s easy enough to dismiss the Choppy behaviour of prices As a consolidation or period of digestion after their dramatic Rise to new highs in late 1985 and Early 1986. But the shrinkage of trading volume is taken by Many analysts As a bit More worrisome a possible sign that enthusiasm for stocks has waned. Brokers of course have a special interest in the Day by Day volume figures since they determine How much commission reve nue there is to go around. That Point aside Many students of the Market believe the  and Downs of the volume data can be useful in trying to gauge where the Market is headed. For instance some analysts believe mar Ket declines on Light volume arc actually More worrisome than heavy Sci offs. The Light volume variety smacks of a dearth of buying interest while drops accompanied by heavy trading May be seen As the result of panic Selling that can occur just before the Market is ready to reverse itself and rally. Market advances on Light volume arc usually regarded As suspect because they suggest a Lack of conviction to use a word commonly employed by analysts. Early this year it was common for vol ume on the new York Stock Exchange to average More than Iso million shares a Day in the past week it plodded along at a daily rate of 118.20 million Down from 124.35 million the week before. But the Market showed signs of perking up late in the week just As Many participants were preparing for the Long memorial Day weekend. The Dow Jones average of 30 industrials jumped 63.49 Points to 1,823.29, after falling 29.63 the week before. The nose s composite Index gained 4.44 to 138.88. At the american Stock Exchange the Market value Index hit new highs climbing 6.14 to 277.98. Greg Smith at Prudential Bache Securi ties said More Dull spots arc probable in the weeks ahead while investors digest the goings on in Washington on tax Reform and the budget come to terms with the economic trends that will be developing in the Sec Ond half of the year and adjust their focus on  uncertainty usually Breeds dullness and Dull with a slight downward Bias is our Outlook for the Market Over the Short term he said. Once we gel through tax Reform How Ever and we get further into the summer we suspect the fog will Burn off and once again people will realize that interest rates should come Down still further. That conclusion will launch a process that should Lead to a substantially better Market in the fall and through the end of the  Albert Wojnilower economist at first Boston corp., also argues for further de Clines in open Market interest rates this year. In remarks to a meeting of Bond dealers in Singapore Wojnilower predicted that the Federal Reserve would lower its discount rate at least once More. Perhaps a development like that would serve As the spark needed to revive enthusiasm in Large volume for the Slock mar Ket. Irs notes increase in compliance with tax Laws Washington a individual compliance with Federal tax Laws increased in 1982, the most recent year for which statistics Are available for the first time since 1965, but the internal Revenue serv ice is not sure whether it was a trend or a Fluke. Couples individuals and unincorporated businesses voluntarily paid 91.8 percent of the income taxes they owed in 1982. That was an increase from the 91 percent level of 1979. Compliance had dropped steadily from 94.3 percent in 1965. Presently it is not known whether the improvement in compliance is temporary or if it represents a True turning Point in tax payer behaviour wrote irs researcher Richard j. Fratanduono who prepared the analysis. He said it will be 1988 before the irs has enough evidence to decide whether the latest figures marked a reversal of two decades of declining compliance. Although Overall compliance increased the improvement was noted in Only four categories of income Fratanduono said. Compliance actually fell off in eight categories and was significantly worse among some Levels of unincorporated businesses investor s guide by William a. Doyle q. Both my wife my i ire retired and ire planning to move to Mexico joining other us. Citizens who Are living there on limited incomes. We will sell our present Home and after relocating will have $75,000. Can you suggest a risk free plan for the $75,000 giving us the largest possible monthly interest Check but with the option of withdrawing the entire $75,000 for emergency purposes a. To begin with keep your $75,000 in the United states. Don t Transfer it to Mexico. Lots of people have lost bundles in our South of the Border neighbor s All too frequent peso devaluations. Because you want both monthly income and the ability to withdraw All your Princi pal your choices Are limited. Basically you can put the $75,000 into either a Money Market Deposit account at a Feder ally insured Bank or savings and loan association or into a Money Market Mutual fund. You can arrange to get monthly checks for interest from the Bank or so or for dividends from the Money Market Mutual fund. Because of Federal insurance your Money would be Rock solid Safe at a Bank or so. Even though Money Market Mutual funds have no such insurance they Are virtually risk free. Until very recently most Money mar Ket Mutual funds had higher yields than Bank or so Money Market Deposit accounts. Now that the final federally imposed interest rate Caps on Banks and Sli have been removed Many Are paying higher interest. So it s More important than Ever to shop around. Check the Money Market Deposit account inter est rates at a number of Banks and a is. And look at the dividend yields on Money Market Mutual funds published in Many newspapers. Frankly i think your desire to keep your entire $75,000 available for immediate withdrawal is foolish. If you put a chunk of that Money into certificates of Deposit you la get higher interest. Q. I can t Lake any risks with the Money i have in certificates of Deposit. Which is the safest form of Federal Deposit insurance a. All three the Federal Deposit insurance corp. For Banks the Federal savings & loan insurance corp. For a is and the National credit Union share insurance fund for Cus Are equally Safe. Sure there have been failures among All three types of depository institutions. But it can t be stressed too strongly that no one has lost a dime of federally insured depos its. Q. When i invested in a Cinnie Mae Mutual fund i understood that the Market values of fixed income securities move in the opposite direction of interest Rales. In Terest Rales have come Way Down but the value of my fund s shares have not moved correspondingly higher. The fund holds government National mortgage association securities backed by High interest mortgages. Should t the value of the fund s shares be going up a. Not necessarily. You re overlooking the fact that the mortgages behind those Ginnie Mae Securi ties can be refinanced. Many homeowners Are paying off their High interest mortgages. Investors Aren t willing to pay a big Premium Over face value for Ginnie Maes or other securities that might be paid off at face value. So the Market values of Ginnie Mae securities and shares of Mutual funds holding such securities Haven t gone up in line with other fixed income securities. Kim i Aluru column la do to Wuco Mai . But him provide an Wirt Only through in column. You pm Orlle Lomm in Ore of tin Simand sir Law. Apo Mil . Force and farms. The study found less cheating than generally assumed on individual itemized deductions a major increase in cheating by parents who improperly claim children As exemptions 8 million claimed exemptions were disallowed in 1982 and a level of falsification of business expenses so High that almost 30 percent of claimed business deductions were rejected. Even though voluntary compliance Levels Rose in 1982, Fratanduono said so did the Dollar volume of additional taxes that would have been assessed had All returns been audited. That increase in taxes would have been s24.8 billion in 1982, compared with $21.6 billion in 1979 and s3. Billion in 1965. The supposed decline in taxpayer non compliance is a perennial Issue in Congress. It was cited when tougher tax rules were enacted in 1981, 1982, 1983 and 1984. The tax Gap the difference Between taxes owed and paid is often listed As a reason for overhauling the tax system to remove some of the complexity and reduce the rates that arc said to discourage voluntary compliance. Fratanduono s findings arc based on ran Dom audits of 50,000 individual tax returns by the irs. The study found that cheating by businesses that Are taxed As individuals is worsening. More business income is going unreported. Overstatement of business expenses has become so Exten Sive that 29.4 cents of every $1 claimed is disallowed by the irs during audits. More dependent exemptions Are being wrongly claimed. It could be because of the High divorce rate an increase in single Par ent families or More births. Whatever the reasons the fact remains that the number of improper exemptions claimed for Chil Dren living at Home has increased from 2.7 million in 1965 to 8 million in 1982," the report stated. The growth of tax shelters is imposing a growing Cost on the tax system. Chiefly because of shelter investments the study said income reported from partnerships the favorite shelter device fell from $12.7 billion in 1979 to $ i billion in 1982. Even though Overall individual compliance improved Fratanduono wrote the in creases came in Only four of the 12 income classes into which returns arc divided. Improvement came among non business tax payers with incomes under $10,000 and Fil ing the Long form 1040 individuals with incomes of $50,000 and Over businesses with Gross receipts of $100.000 and Over and farm businesses with incomes of $100,000 and Over. Fratanduono suggested the improvement in compliance was concentrated among those higher income taxpayers because they received the largest reductions in tax rates in the 1981 tax Cut. According to the study 99.9 percent of wages Are reported voluntarily up from 99.7 percent in 1979. For interest and dividends the figure was 96.9 percent. For schedule c income which covers earnings from businesses operated As sole proprietorship compliance dropped to 67.6 per cent from 75.8 percent in 1979 and 87.8 percent in 1965. About 5.5 percent of itemized deductions for 1982 were disallowed. Medical expenses were overstated by 13 percent state and local taxes by 2.4 percent interest by 3 percent and charitable contributions by 10 percent. Stock pulse by in Ltd pm internal tonal c 1986 Friday. May Zyk 1986 nose Congo ill malt act pm by a purim Slock div vol com earns be old non Lul 8,217400 19 1 2.55 8.0 8.5 Dirler 1,929,300 59 3.55 17.0 2.9 ism 1,667,800 14h� 10.71 11.0 11 inner lit 1,641,500 7� 0.71 10.0 1.4 at to 1,612,200 24 1.53 16.0 4.9elkd 1.335,200 5�h 1.18 50.0 4j Irv Bank 1,300,800 541 6.32 9.0 3.8 Domor 1,247,600 19 3.56 11.0 74 Pella i 1.091,100 17 2.59 7.0 12.5 Salav 1,076,200 4414 184 12.0 18 nose Composti Grant nit charms Slock Clou in i earns be old Holly Sug 126 6 0.8 try 104 5v, 0.39361.02.9 Upjohn 94 5vt 146 27.0 1.6 Texas incl m it Ivl 1.5cm a 123 lit 125 11.0 1.4 mall scr him 314 5.37 24.0 0.3capciii 239ni 4 lit 8j6 27.0  Dunard 115 2fe 3.88 30.0 2.2cap inc i 3 214 1.09 76.0 0.4 to Law inc 76 2 171 24.0 u Amik com Politt my act in by to Tut Slock div vol Clou earns be Al dorm Allro 2431,800 1 Wick i 1,198,900 6 / 0.11 57.0am e p 600,700 4 Hasbro 418,700 49 158 14.0 0.1 Fausi pm 400.900 10htlxblair 394,400 33h 2.00 17.0 Ich 381,00 25 2.53 10.0lorlmar til 368.500 30 wangle 106.100 i6 0,9bat 275,900 5h 0.66 9.0 3.1 Amu comp Ltd Burgist nil Oun Wislock Closi Chi earns be old Kapost 169 6 s 6.91 240 0.7honm shop 65vt 4h Shopwell 101/ 4consolsir 35 /4 4 vat 0 63 56 0 Wal hip 17mt 3v. 2.59 7.0 24.7 Masland 68 1 2h 4.33 16.0 0.5 Candy Guam 69 2u 5.03 14.0medlao 96% 2h 4.61 21.0 1.2 plot la l 1 Hull Mala 14 2 1.70 20.0 be Erci la Larnino ratio my div Lemd Vadim  omd in Stock a Antum Lahndt 12 a nouns Junaud Ltd