European Stars And Stripes (Newspaper) - October 23, 1988, Darmstadt, Hesse                                Paga 18 the stars and stripes business news experts predict Dollar s drop to 1.75 Marks the embattled Dollar continued its Retreat on foreign in change markets last week and some currency traders now arc talking in terms of the Buck falling in value As Low As 1.75 West Ger Man Marks perhaps in inc week ahead. The latest round of declines in the Buck s value has been measured in fractions of pennies at a Lime As traders cautiously edged the currency lower. There is some concern that the Federal Reserve or Central Banks in Europe and Japan will Start aggressively lending support to the Dol Lar to move it higher in Advance of the ,presidential election on nov. 8. So far though that has t happened. The bears among currency traders arc continuing to by Randy Mcclain Call the shots. The Dollar stood Friday Al its Low Cal level in five months of european trading against the Mark. Against the Swiss French ital Ian. Dutch and British currencies the Dollar was trading at three month lows there s absolutely no sign the United slates Economy is Healing up to inc Point where inflation will be perceived As a problem,11 said one american banker in Frankfurt who spoke on the condition his name not be used. There s no reason for inc Dollar to go Back up id the 1.90-Mark level right  the last time he Buck was that High was More than two months ago. In the last two weeks inc Dollar has taken its lumps falling from just above 1.86 Marks on oct. 7 to 1.7868 Marks on the Frankfurt Exchange late Friday afternoon. In the past week inc military Exchange rate dropped from 1,80 Marks to Lite Dollar to a Low of 1.77 Marks by week s end. Thai latter Rale will be in effect monday. As far As traders arc concerned All economic fundamentals Point to a . Economy that has slowed Down and that s not Good news Tor Hebuck. Moods change quickly on currency markets. Two months ago traders were belting interest rates in the United states were on the Way up. Record . Sports were cutting significantly into inc country s monthly Trade deficits Domestic consumer demand was viewed As Strong and the smart Money said the Federal Reserve would have to push interest rates higher before Christmas to keep the Economy in Chr wrong. In recent Days All the numbers have soured. The Trade deficit has ballooned Job growth has been less than expected and Oil prices have fallen. On Friday the labor department released tie latest discouraging news. The consumer Price Index for september increased by a Mere n.3 percent. Currency traders had expected Ati Casta 0.4 percent jump. The modest Price hike is Good news for Penny pinching Consumers in the United states Hul it reinforces currency traders View thai the . Economy in t overheating and that there s Lillic Hope for higher interest rates. Higher . Merest Rales lend to attract foreign investors and drive inc Dollar higher in value. Vvan Wei foreign re change manager for merchants National Dank in Frankfurt expects the fall in the Buck 10 continue Over the Short term "1 could Sec it going Down slowly not dramatically but bit by bit to 1.75 or 1.76 Marks Weil said. Fund raising groups still stumped by tax free rules by Randy Mcclain financial writer it should be easy for officers wives clubs and other private groups staging fund raising events on bases in Wesl Germany to arrange for the lax free Sale of Mer Chandise. But officials with the army in Europe say confusion Over what rules must be followed is costing unsuspecting shoppers Money. Some private organizations Are confused. It seem to be taking some time for everyone to become familiar with what is policy said Karen Hembree a procurement analyst with Usa eur s Community and family support Agency in Schwet Zingen. Hembree s office has issued a policy that outlines the finer Points of holding lax free fund raising events but at least one Vendor who Sells merchandise across West Ger Many at bazaars says numerous problems remain unsolved. A few private organizations mistakenly believe they can contract directly with vendors themselves and escape the German value added tax known a Mehrer Steuer while other clubs report running into officials from military communities morale welfare and recreation funds who want to charge an Arm and ice to properly sponsor fund raisers. Hefty German sales taxes amounting to 14 percent on most purchases can be removed from sales Al private bazaars when a military Community serves As sponsor. He Mbruce said that s normally done by enlisting the Aid of a base s morale welfare and recreation fund a non appropriated fund that qualifies for sales lax Relief under status of forces rules for nato troops. One catch is that non appropriated fund administrators Are under instructions from the department of de sense to get reimbursed for their costs when working on private fund raisers or similar endeavours. And pinpoint ing costs tied to processing tax Relief paper work and pay ing vendors by Check from Bazaar proceeds is not an exact science. The problem according to he Mbruce is that some communities arc asking Loo much in the View of the wives clubs some communities Are charging As Little As 3 percent of sales for providing technical support others seek much More he Mbruce said. What we re trying to Tell Community officials is that a Bazaar in t supposed to be a fund raising event for the Nafis. It s supposed to be a Money maker for the  generally officers wives clubs spend the Money they raise at bazaars on College scholarships. Scouting activities and other charitable gestures that Benefit Soi iders and their families during overseas hours of duty. We need to make people understand Why these fund raisers Are being held Hembree said. Another problem according to Vladimir arts president a w Iwlew a private Art dealer who does j 1.5 million in business annually at bazaars in Europe is that some smaller military communities Don t want to be bothered Al All with handling private clubs paper work. Some clubs have gone ahead with their bazaars anyway and the 14 percent  has been charged he said. That has meant higher prices on merchandise to cover the lax Iwlew said and the Only people Happy about that have been German lax collectors. The confusion is costing military id card holders buying Al these functions millions of dollars he said. Iwlew has had a running Battle with Usa eur in general and Hembric s office in particular for the past several months. He claims even the latest army policy on private bazaars is unnecessarily complicated Ana makes it difficult for customers to buy merchandise at the events. If we make it difficult for a customer to make a Purchase hell just walk away Iwlew said. And that hurts everyone. Iwlew said there have been bazaars Over the past year in which military communities have refused to allow credit card purchases or deferred payment plans for customers the customer must pay in full or Start walking he said under this system we be been turning away  when a Vendor is peddling merchandise Selling for hundreds of dollars it s Foo Iii to expect customers to be Able to pay in full he said. He Mbruce said inc latest Usa eur policy on bazaars attempts to answer sonic of those complaints. The catch now is to get everyone to play by the same rules the simplest method of holding a tax free a car him Brycc said is for private clubs to reach an agreement with their Community commander and the non  fund contracting officer on base. Vendors Selling merchandise at the Bazaar must then sign what is known As Usa eur s Bazaar concessionaire agreement t contract stipulating that Ven Dors participating in the Bazaar actually Are providing goods and services to the United states  clears the Way for lax free sales. Hembree said some vendors who have made sales at bazaars in years past alter signing contracts directly with private clubs have been hit with huge Bills Tor overdue Merwe Ruterer payments by Wesl German finance officials. The contract serves to protect Ven Dors against this u Well the said. Vendors participating in Bazaar under the contract can accept credit card payments Cash or personal checks and even set up deferred payment plans for customers buying big ticket Leroi. The vendors however must turn in All the Cash Eves and credit slips they collect to Community mar officials at the end of each Day or the Bazaar. Hembree said. Vendors Are then paid their share of sales 87 percent is a typical Cut once military official shave verified total sales. In cases in which vendors have allowed customer to make Down payments on expensive Ilmi a Vendor must turn in a company Check to the Community for the difference Between Cash collected and an item s full Price Hembree said. Only when that Cheek clean the Bank do Community officials pay the vendors their percentage. Generally. 13 percent of sales is kept by the Community and that is split based on some previously agreed upon formula with the club or other private organization staging the Bazaar it s up to vendors to colled on instalment payments customers owe them. Iwlew said he considers it unnecessarily Cumber some lot urn in Cash checks credit slips and promissory notes for each Sale he makes Al a Bazaar. He thinks it would make More sense and create less paper work if payments by vendors to the military communities were made with one company Check after Tola sales Are verified. He said he has been allowed to do thai a some recent army sponsored bazaars. If that occurred it was against Usa eur policy hem Bree said. She told the stars and stripes the policy will remain firm prohibiting such arrangements. Accountability is greatest when All sales Are turned in by vendors an transactions arc individually verified she said. One postscript it also is possible to have what amounts to tax free bazaars by setting up a table staffed by military Community tax personnel at the event. That system How Ever requires customer to take a receipt and i Check or Cash to the to free table in order to buy any goods. The tax officer deducts the  from the Purchase Price and cuts a Check to die Vendor. The Cash is that it often Means Consumers mus stand in Long lines. Brochure offers tips on starting business in military housing Washington the defense department has published a brochure to help people who want Looper ate a Home based business in military housing an activity that was banned until two years ago. Developed by the Pentagon s family policy and support office the brochure explains How military spouses can take advantage of changes in the situation. The brochure covers the regulations and Lelli who to Contact on military installations for assistance and in formation about licenses permits  and insurance. The pamphlet also gives hints about How to choose a business and run it profitably. Previously operating a Home based business was possible Only if a military spouse lived in private hous ing. But Congress passed legislation in 1986 to permit and encourage such businesses in military housing As Well. Family support officials say the new regulations per Mit the building of Home businesses with unlimited constraints on financial Success. The brochure is available at family support offices or by writing military family resource Center office of family policy support 4015 Wilson blvd., suite 903, Arlington a. 22203-5190