European Stars And Stripes (Newspaper) - August 28, 1988, Darmstadt, Hesse                                Page 18 the stars and stripes sunday August 28,1988 business news Dollar drops after Banks hike interest the Dollar on Friday ended the week lower aft major european Central Banks raised inter est rates and dumped greenbacks renewing coordinated efforts to stabilize currency markets. Led by an 0.5 percent hike in West Germany s discount rate to 3.5 percent Central Banks in Switzerland Austria Italy and the Netherlands raised key rates thursday. France and Britain increased their base rates earlier in the week. And As the Cost of Money went up the value of the Dollar went Down when several european nations aggressively began sell ing dollars according to a currency trader in Frankfurt. One Frankfurt trader said the Dollar should by Pau Cozby drop after the november presidential election possibly to As Low As 1.70. The discount rate hike by West Germany accompanied by an unusually Frank statement from Bundesbank president Karl Otto Pohl Fol Lowed a summer Long rally by the Dollar. Pohl said he took the action to Shore up the Mark which had lost 20 percent of its value since the beginning of the year. Despite repeated Central Bank intervention and poor . Trade deficit figures released two weeks ago the Dollar aided by higher . Interest rates had risen from 1.68 Marks Dur ing the last two months. Although there were few economic reasons for the Dollar s strength traders said the Market remained confident in the Buck and speculators continued buying it. But the effect of the apparently coordinated interest rate hikes last week signalled a return to reason in Market appraisal of the Dollar s strength traders said. Some published reports said the rate hikes were a sign that the group of seven industrialized nations had Given up on target currency trading ranges set in february 1987 in the so called louvre Accord. But Frankfurt traders disagreed. I think the g-7 is working one banker said. The speculators would Send the Dollar to 2.20, but look where it is. Who will win for the time being it is the Central  in England efforts to stabilize the currency ran into trouble As a tax Relief package put More Money in Consumers hands at the same time the Pound was gaining strength on the basis of inter est rate hikes earlier this summer. The result was a splurge of import buying pushing the country s Trade deficit for july to 2.5 billion pounds or $4.2 billion an american banker in London said. After the figures were released the value of the Pound dropped and the British base rate the Benchmark lending rate was increased one Point to 12 percent to stabilize it. The Bottom line on British and West Germa Central Bank actions economic problems faced by individual g-7 nations should help the Buckin the Short run As the group continues its efforts to keep the Market stable. The Point is what will begin to happen next week one trader asked. Actually we will see a slight decrease but i Don t believe the Dollar will really come  arc increasing rates for most hotel rooms by Charlie Bowden Munich Bureau Garmisch West Germany room rates at the armed forces recreation Center s Chain of bavarian hotels will change in november in what officials describe As a major restructuring one that includes both significant increases and some decreases i room prices. Under the new Price Structure which takes effect nov. 18, rates for some types of rooms will increase by As much As 60 percent while others will decrease More than 20 percent. The new rates Are based on the Type of room and the customer s rank a return to the old sliding scale that gives Junior enlisted people in grades e-5 and below a lower room rate. The increased rates predicted last March when arc was transferred to department of the army control from Usa eur continues a trend that began when the Dollar crashed in 1985. Rates increased every year an average of about 10 percent As officials at tempted to get the organization into the Black. Now under new management and faced with the loss of an estimated $2 million in appropriated fund support officials Are attempting to bring the rates More in line with the operating budget for next year and trying to cover expenses to upgrade the rooms in the hotels in Garmisch and Berchtesgaden. The old prices based on appropriated fund dollars were deflated said James Mccrindle arc s new executive director. Because of the appropriated fund support coming in we had a deflated room rate to begin with Mccrindle said. Had we been paying those expenses All along i guarantee you that they could t have afforded to have sold those rooms for that  with the change a double room with Bath that previously Cost a Junior enlisted person $20 will now Cost $32, an increase of 60 percent. That same room will Cost anyone else $36. The $9 single room without Bath will Cost $15, or $18 for those e-6 and above. Deluxe doubles with Bath such As in the von Steuben and Patton hotels in Garmisch will increase to $39 for senior folks but will remain at $34 for Junior enlisted. Sprites at the hotels in Garmisch and Berchtesgaden will increase 30 percent from $50 to $65, or $55 for Junior enlisted ranks. In Berchtesgaden a double room with Bath will Cost senior ranking people $36, up $2, but will not change for Junior enlisted. The decreases primarily Are in prices at the hotels at Chi Emsee. For example a Lakeside double room dropped about 20 percent from $42 to $33, for Junior enlisted grades and to $38 for other grades. Prices for Chi Emsee family suites set at $80 when the Lake hotel opened in the Spring will drop to $68 for Junior enlisted grades but stay the same for others. The average increase across the Board is just under$5. At the same time arc has reversed an earlier Deci Sion to shut Down the aging Sheridan Plaza hotel in sep tember. Delays in the relocation of some other elements in the Garmisch military Community left that As an option which gives arc another 140 rooms that can be used during the High occupancy ski season. However there Are no plans to pump More Money into the Sheridan and it will continue to run As an overflow bed and break fast hotel geared primarily at the ski crowd. The new prices Mccrindle said Are about Rock Bot Tom if the organization expects to cover current costs for room upgrade and renovation. Aside from a major renovation of the hotels at Chi Emsee arc has committed More than $500,000 toward room upgrade projects and expects to spend another $926,000 next year. The room projects in clude new furniture fixtures carpet and paint. The congressional decision to Cut appropriated fund support in certain areas which affects All morale sup port activities resulted in arc having to pick up laundry and communications costs plus management salaries. The laundry Bill alone will run about $700,000 or about $5 per room night Mccrindle said. Salaries for management in the hotels and the Headquarters is an other $700,000, All of which must be paid from the operating income. Add to that a major increase in German Mark expenses Over the past two years de spite a trimmed Down workforce and the Battle for a balanced budget next year is clearly no easy chore. But Mccrindle believes that the Money spent now will make arc hotels More attractive to the custom ers. Using the Chi Emsee hotel As an example which had higher prices when it reopened Mccrindle said customers apparently Are willing to pay the Price if they think they re getting their Money s Worth. We be had a 99 percent occupancy rate there since it opened and not one bad comment on the prices he said. Cash availability Law will make overseas Check writing simpler by William j. Bartman Washington Bureau Washington a Law requiring that states Debanks give customers faster Access to their deposits will change the Way checks Are endorsed in the . Mili tary Community overseas. While the Law has the potential to make overseas Check writing less troublesome customers outside the United states will not Benefit from the key Chang being mandated by Congress. It requires that financial institutions make Cash from deposited checks available in 48 hours instead of placing customary holds of five or 10 Days on out of town checks. Because of the change effective sept. 1, the amount of information permitted on the Back of checks will be limited. The change involves All checks whether deposited with a military Community Bank an Exchange outlet commissary or other . Sales or service facility. We Are requesting that from sept. 1, customers Start endorsing on a certain portion on the Back of the Check said Ron Kent spokesman for american express Bank. All we want is their endorsement and account number. All other information goes on the front of the  merchants National Bank which operates Community Banks in West Germany Greece and the nether lands also will be requiring that checks be endorse according to the new guidelines. The Bank is working through its major customers such As the Exchange service to get out the word on the new rules. Under the new rules All personal identification Dat must be on the front of the Check either reprinted or written. Ended will be the requirements to print and re print name rank address phone number and other information on the Back of the Check or fill out special Stamps placed on the Back of checks by Many businesses. When cashing a Check the endorsement will have to be within the top 1 Viz inches of the reverse Side of the Check. The remaining space will be reserved for Bank clearance Stamps and automated machine processing information. New merchants checks will have a line printed on the Back to encourage customers to sign in the upper portion. And the army and air Force Exchange service and other military businesses Are preparing posters and fliers to Alert customers to the procedures. For Banks that fail to comply with the new rules Federal banking regulatory agencies can take actions ranging from cease and desist orders to assessing penalties. An official with the Pentagon s financial policy office said customers should expect to pay penalties for any checks dishonoured As a result of the new endorsing rules. But a merchants Bank official said the responsibility for ensuring that checks Are endorsed correctly will fall to the major organizations that accept the checks. We re not putting that pressure on our customers said Yvonne Wise merchants Public affairs manager. Since the average Check takes one Day to Clear Banks have been making Large profits through holding the checks for five to 10 Days Federal officials said. An attorney with the Federal Reserve explaining Why the new Cash availability rules do not apply overseas said the fed does not have specific control Over the Over seas branches. Merchants will continue to use the five Day hold period for example on two party checks deposited which is allowed under existing regulations Wise said