European Stars And Stripes (Newspaper) - April 17, 1988, Darmstadt, Hesse                                Page 18 the stars and stripes business news Dollar s fall expected to continue the Dollar is expected to continue in decline this week at currency traders test whether the Central Banks have enough resolve to prop up the beleaguered Greenback. The Dollar which had settled into a period at stability following he october Stock Market crash hit the skids late last week after a Surpris ing 11 percent jump in the monthly . Trade deficit. The deficit had posted several months of gradual improvement but it climbed �13.8 Bil 8y  Kominick lion in february the Commerce department re ported thursday. It was a total Shock a Frankfurt trader said. Most estimates were for improvement to say Sio billion maybe s11 billion. Bui sus billion caught everybody by  the Dollar started falling minutes after the Trade figures were released and Only concerted Central Dank intervention kept the Buck from going into a tailspin traders said. We could have easily seen 1.60 Marks a West German trader said. Everyone was dumping their Posi  another Frankfurt trader the ques Tion Tor the coming weeks is whether the Dollar will return to its most recent Low Back to the1.62 Marks Range a perhaps even lower. Obviously most of Fth traders now believe they can do belter on the Down Side so you la see the Market doing 3 lot of pushing while he believes the Central Banks will be Able to control the markets keeping the Dollar above 1.65 Marks other traders were not As sure. The industrialized countries can t be too keen on a lot or intervention a London Trade said. Many of them Are already pushing their Money Supply targets for the year meaning they be already bought up big supplies of Dollan fighting olt other attacks. That tends to be inflationary and let s face it risking higher inflation in your own country is a big Price to pay to support somebody else s  essentially lost in the Selling surge thursday were remarks by West German Central Bank chief Karl Otto pm he that May signal new Squab bling Between the United slates and West Ger Many on economic matters. Pm it speaking at a luncheon in Washington said West Germany has done All it can to help ease the american Trade deficit. He hid West German interest rates already Are the lowest inthe world hinting that the United states must look elsewhere for help in solving its Trade imbalance. Pishl s comments appeared to break with the recent efforts of world financial leaders to stress Harmony in International monetary policy Fol lowing a heated dispute Over interest rates last year Between the United slates and West Ger Many. That Lack of Accord has been cited As one of the contributing factors to the october Slock Market crash. Fohl cautioned the United Stales against try ing to have balanced Trade with All of its trading partners All tilt Lime he said West Germany with an aging population needs to be a net exporter. West Germany s Trade surplus Wilh the United states which was j2.2 billion in he firs two month of this year is far smaller than Japan sat j8.5 billion and less than Taiwan s j2.7 billion he  s Commerce department report showed that although . Exports continued to grow in february they wire outpaced by imports. Greece presents problem for merchants National Byj Kominicki Rundal writer while merchants National predict a smooth Lake Over of military Bank in Germany and. The nether lands at the end of that month serious in a remain in the finn t efforts to adopt three location serving military personnel in Greece. With Lesi Lian two weeks remaining before it As Sumes control of 134 military Banks in the three coun tries merchants Hain t won Creek government Licens ing to convert dollars into drachmas the local currency. As a mull military banking official Are undying such options As assigning military finance personnel to the Banks and empowering merchants employees tract As government pay agents to sell drachma and other currencies All the alternatives will be bounced off the lawyers before we do anything said Mark Scheidler Ane com staffer involved in the merchant takeover. We want to assert our rights without stepping outside the Legal  he said the Issue is being negotiated by the . Embassy in Athens a spokesman there could not spec ulate on chances of it being resolved before Mer chants assume management of the Banks. Doug Moore an air Force spokesman in Europe said the negotiations Are delicate and it was not in the command s interest to discuss the  merchants vice president Robert i. Schundler also would not guess when the Issue could be  s Between governments right now he said. Problems in Greece aside Schindler is betting a smoother sailing when his firm takes Over american express locations in Germany and the  a few problems remain it seems like whenever we come to a hurdle we find a Way Over it he said in a Lela phone interview last week. Details on the How the transition will work include the switch. Merchants plans to bring on extra employees to ensure a Quick problem free  express will close the bunks after business on Friday april 29 merchants now expects to reopen most branches on monday May 1, and the rest the following Day. A lot of the transition headaches have been worked Cut in the past sin weeks of negotiations i com a Leidler said we be realized that the manager who is there on Friday when american express closes Down is still going to be there on monday. Thai s going a simplify things a  � company hell Furm. Since american express needs the space to close out files and Issue final statements to account holders merchants will operate without executive offices or a computer Center to about three Days. There will be merchants transactions but Mer chant won t have by place to Proe Etc them Scheifl Craid. Customer Likely will be unable to get up to Dale account balances until the headquarter switch take place and Deposit probably win not be posted until later in the week sir idler Taid. Wiring Money to other countries also will not be immediately possible. Check. Merchants is sticking to ill plan of mail ing 75 checks to account Widen before the  the new checks will be what Scheidler called a Nolfi Issue Plain Check printed on Stock safely paper they will be accompanied by an order form Tor distinctive Check styles. Customers will be asked to turn in unused american express Chc Clu Between May is and june 30 for credit. American express checks already written and in the system will be Given a reasonable time to be proc Essed through he banking system according to Mer chants. Customers who receive new checks Early Are being asked not to use Hern before april 30. The Day the merchants contract begins. Stalna. Merchants will mail new Deposit and withdrawal slips to savings account holders Wilh instructions for their use after april 29. Intel or i Check Tad Money often. American express will Hall Sale of both on april 27 in the three countries involved in the changeover. Merchants will begin offering traveler Checki and Money orders May other or Recei. Sure pay allotments automatic transfers and standing payment orders arc  of Deposit and loan rates will be announced after merchant of Orons the Banks. Rates will be com parable Schindler said. Teller machine. All merchants Green machine automatic tellers will be in operation by monday may2. Many will be working As Early As saturday april 30. Although new Teller cards will be mailed to customers personal identification numbers will remain the same the Green machine lag incidentally is not a slight to service members in Blue uniforms. The Bank has been using the name for years probably because the color of Money is Green Schindler said. The Bank frequently print its ads in Green and occasionally uses Frog logo. The name. Look for wider use or the Community Bank logo according to Scheidler. It s part of a Campaign to get people to realize that the Banks Are run on a Dod contract Faasiu that it snot some firm taking millions out of soldiers pockets he said. Merchants picked up on re and they be been using it quite successfully 1 think in their advertising. Mer chant really wants people to believe it s their  study focuses on . Economy new York not is the United states losing its place As possessor of the world s strongest econ omy and if so what can it do to Check in declining economic and political Power in an of tort to answer those questions which under lie the presidential Campaign and set be Agenda for the next administration the Center for strategic and inter National studies in Washington assembled a bipartisan group of business and government Leaden headed by William e. Brock the former special Trade representative and Secretary of labor in the Reagan administration. Among the group s conclusions the american Economy remains the world s mos powerful but without further improvements in Trade and productivity its relative position will continue to decline by 2000." . Industry is still at the cutting Edge of technological innovation but its Lead has Nar rowed and it has been surpassed in Many manufacturing applications. The Dollar remains the world s dominant currency but its future has been clouded by America s shift from leading International creditor to greatest debtor. Tensions Between . Security and economic interests Are rising Ai Security obligations have remained relatively constant while Competition Wii allies hat intensified a major Issue looming for the United states is the Long term affordability of those Security commitment. The report concludes the balance Between economic and Security Intel Titi must be  but How this it to be done whether in close collaboration with the allies or in isolation is crucial. The strategy proposed by ice report involves cutting the Federal budget deficit and shifting the balance of resource use from consumption to saving. These changes would lower the Cost of capital Spur invest ment and reduce Reliance on borrowing from abroad. But the group reject the idea thai All of the nation economic problems can be solved by budget cutting or by making More Domestic sayings available in Calls fora Broad based program to improve Ine productivity and flexibility of the nation s human resources especially by upgrading education at All Levels Wilh greater emphasis on mathematics and science and on he economically  last week in two lectures at Duke University that in Many ways parallel the Center s report Derek c. Bok president of Harvard University focused on the failings of the american educational system. He pointed to a curious dilemma knowledge is crucial to eco nomic growth in the poit India rail society and . Universities arc the greatest a Ippun of new scientific knowledge while Japan s universities an mediocre. If universities Are u vital to Posl Industrial society and Oun Are so Superior Why we we running such huge Trade deficits Bok asked. I answer was that the United Stales has lagged behind in a number of areas outside science