European Stars And Stripes (Newspaper) - April 16, 1989, Darmstadt, Hesse                                Page 18 the stars and stripes business news Dollar holds steady despite financial reports the Dollar shrugged Ofta dismal International Trade report and a smaller than expected. In crease in wholesale prices for March on Friday in hold steady in the neighbourhood of 1.8760 marts fora Buck in late european trading. Of the two reports most currency traders eyes were focused an How wholesale prices turned nut. The March figures were considered of particular importance because inc previous two months reports had been so bad. In both january and february the producer Price Index a Broad measure of wholesale prices on everything from food to Energy increased by a whopping i percent. Those numbers led to speculation on foreign Exchange markets that inflation in the . Econ omy was about to gel out of hand. The wholesale Pirn increases traders said would soon work their Way Down to the consumer level and drive up the Tost of living which would result in work ers demanding wage hikes to keep Pace the expected end results runaway inflation and the imposition of higher interest rates to control  the Short run that scenario also would mean a stronger Dol Lar. On Friday though the . Labor department reported wholesale prices went by Randy mcabinbv4 percent economists had expected As much As a 0.6 per cent increase for the Mon lev according to some currency trader the smaller than cup cited Price jump Means that the inflation fighters at the . Federal Reserve can relax at least for the Lime being. A doubt the fed would actually tighten up on interest rates when wage growth in the United Stales in l accelerating Hal quickly said one trader with Barclays Bank in London. The trader Spole on the condition that he not be named. He predicted that the Dollar would re main Hal on the wholesale Price report 1 f american interest rates Aren t going up any further Odds arc the Dollar won t be either. More bad news came Friday in terms of the . Trade report for february the monthly Trade deficit came in at $10.5 billion almost 21 percent worse than the revised $8.68 billion Trade deficit reported for january. . Exports increased by a slight 0. Percent in. February but that was easily wiped out by a 5.3 percent gain in imports. Price hikes on imported Oil were among the factors that helped to boost  of imports. Theone ameliorating Factor in the Trade re port was that currency traders had expected inc numbers to be As bad As they were and maybe even worse.  Barclays trader quoted above said his Bank had expected the monthly Trade deficit to reach $10.8 billion. Since the actual numbers were a Little belter than that the Dollar won t really be Hurt the trader added. That at least is a bit of Good news for scr vice members m Europe better a stable Dollar than a weakening one. As far As military Exchange rates Are concerned the Dollar could t have been any More stable than it was last week. The Buck began and ended the week Al 1.85 Marks in West Germany that rate will apply to transactions at Community Bank facilities at least through monday based on a Price fixing in Frankfurt West Ger Many Al midday Friday. Owner the Barclays trader said Friday s economic data will Likely be viewed As inconclusive that Means foreign Exchange Market makers will now turn their attention to tuesday when a report on consumer prices in the United Stales will be  again inc key in arc will be How inflationary the numbers appear to be. A Steep in crease could move the Buck toward the 1.90 Mark level again. Keep your fingers crossed. Army commissaries to Stop Selling condoms in Europe by Randy Mcclaln financial writer the test marketing of condoms at two army commissaries in West Germany has proven to be a bust and the birth control devices no longer will be sold at any of the service s food stores according to a spokeswoman for the . Army troop support Agency Europe. Customer demand was nol sufficient to justify continuing to put condoms on the shelf said do disc m. Gomes the commissary sen ice s spokeswoman. Our. Warehouse and shelf space is limited and it would be better used for products that sell not for products that Don t sell condoms were put on Sale at commissaries in Furth and Wiesbaden in mid january but very few shoppers took notice. In a 45-Day period less than $2,600 Worth of the condoms about 21 packages per Day were sold at the two stores. The test was part of a recent worldwide project to gauge the demand for condoms among commissary shoppers. Little demand turned up army commissary officials in Washington said. One exception was South Korea where sales at 10 lest locations were relatively brisk according to Doug Davant a spokesman at troop support Agency Headquarters. In the United slates where eight stores participated in the test ending March 28, total sales amounted to Only 2,500 boxes or  Worth of the product. The continued Sale of condoms will be optional for All commissary regions Davant added. He could not say whether any regions other than Europe have reached a final decision on keeping condoms in Slock. In Europe service members interested in purchasing condoms for birth control purposes and to prevent sexually transmitted  have to look else where. Condoms will continue to be sold at cafes exchanges and re on base shop Les. They also arc widely available in european stores. Eberhard von dam Bach the commissary officer at Furth termed condom sates very slow Al his store during inc test period. He said he received no Praise or criticism on the decision to put them on Sale and he double anyone will notice when they re gone. For now a Small Supply of condoms in 12-unil and 36-unit packs remain on Sale Al inc two commissaries. Troop support Agency officials overestimated the number of condoms needed for their 45-Day test and now prices Wilt be slashed by 23 percent to gel rid of the remaining Stock comes said. The commissary service ordered 2,052 boxes of condoms for the test and Here were More than 1,100 boxes left unsold As of Friday. Gomes could hoi immediately say How much Stock is left Al Furth and Wiesbaden. Why weren t More condoms sold von dem Bach and Gomes both said customers in Europe Sec commissaries More As a family Market and nol a place to Lake care of birth control needs. Gomes said her impression is Hal Many of the commissary system s customers Are married women the least Likely shoppers to buy condoms. Von dem Bach said single males in their lower 20s bought most of the condoms that were sold in filth but even thai category of shopper was rare. Davant said troop support Agency marketing sex pens believe soldiers in Europe Are More Likely to buy condoms in Small easily carried packs of one two or three rather than buying the larger boxes thai were offered at the commissaries. The army test marketed condoms because Ofa Gen eral concern with acquired immune deficiency syn drome and other sexually transmitted diseases. Irs chalks up gains in Campaign to trap tax dodgers living abroad by Randy Mcclain financial writer Frankfurt. West Ger Many the internal reve nue service is making Prog Ress in its crackdown on overseas taxpayers who try la Dodge paying Uncle Sam but there s More work to be done according to the Agency s no. 2 Man for International lax compliance. Robert a Ackerman. Assist ant director with the office of taxpayer service and compliance said during a visit to West Germany that the irs has launched a two pronged attack against overseas tax payers who pay Loo Little or Don t pay at All special teams of irs agents Are combing Europe this month for meetings with fed eral agencies that employ Large numbers of a Merican. Individual taxpayers also Are being audited. The meetings with Federal agencies Are most often directed at making sure that employees arc properly classified on the payroll. And that the Correct amount of social Security and payroll taxes is being withheld. One major problem has been that Federal agencies improperly list too Many civilian workers As ind open Donl contractors rather than regular employees. Thai can be trouble because overseas Independent contractors Are eligible 0 shield up to j70.000 in income from . Taxes by claiming the foreign earned income exclusion. Regular employees of the . Government May not claim inc exclusion Ackerman said several Hundred cases involving individual who claim to be Independent contractors under tax la a but who actually  not Are being pursued by the irs. This is an area where there s obviously room for some interpretation but it s also an area where we have a compliance problem Ackerman said. The irs uses a number of Lesis to gauge whether a worker is an Independent contractor for an purposes. Among them does the government provide the worker with training if yes in s Likely a traditional employer employee relationship and the foreign earned income exclusion May not be claimed. Must the worker in question personally Render his or her serv ices or can the person subcontract the work to other individuals if subcontracting is of Ihen the worker is most Likely an Independent  May take the earned income exclusion. Ackerman said there arc 20 such tests the irs applies in determining whether a taxpayer has wrongly claimed the $70,000 exclusion. The irs Boss said he a pen l believe every of Crescas taxpayer under scrutiny has dodged taxes on purpose. We have a compliance problem because some of the tax Law changes in this the overseas area have been too rapid and individual taxpayers have a problem getting the Correct  ack Crinan said inc irs has beefed up its taxpayer assistance efforts by holding More tax seminars Over seas and plans Call for the establishment of toll free numbers in several foreign countries to answer taxpayers questions he said the extra attention seems to be paying off in 1988, total filings of tax returns from citizens abroad increased and Ackerman said tie s hoping for More improvement this year. Robert e. Ackerman outlines compliance problems