European Stars And Stripes (Newspaper) - April 23, 1989, Darmstadt, Hesse                                Page 18 the stars and stripes business news sunday. April 23,1989 interest rates turn out to be Buck s downfall High interest rain which have been a big Factor keeping the Dollar up m recent months proved to be the biggest Thorn in the Buck Slid last week x West Germany i Bundesbank unexpectedly increased two of its key interest fates by a half percentage Point each on thursday and that was enough to drive the Dollar Down in value full two pfennig. The military rate fell three Pfenning on the week ending at 1.82 Mark based on Price fixing in Frankfurt West Ger Many on Friday afternoon. And at least one Frankfurt trader genl or Tucich of the Dank of Boston thinks the Dollar is headed still lower. He sees the Buck going below 1.s2 Marks for a Dollar on the Frankfurt Exchange this week. Most currency traders he said see inflation inthe United states  Dollar watch fading and interest rates Back Home eventually falling. That coupled with the Bundesbank s Rale hikes should drive investors away from the Buck and toward by Randy Mcclaln the More lucrative Market week s end the Dollar was trading in the i.s480 Mark neighbourhood a fall of an additional iwo pfennig or More could drive the Mili tary rate in West Germany below 1.80. It always lags behind the. World Price because the depart. Ment of defense s Community Bank keeps a percentage of very currency Exchange. It All adds up to depressing news for service members in Europe. Those folks counting on a Dollar rally have had i hair Hopes dashed the bad news started tuesday with the release in Washington of the March consumer Price Index. Consumer prices increased 0.5 percent on the month slightly More than the 0.4 increase of february but no  convince currency traders that inflation is a serious problem in the United slates. Wholesale prices had increased by a full percentage Point in both january and february and those hefty increases generally take a while to filter Down to the consumer level. Some economists had expected the big hit to show up i March s report. It did a and the Dollar sagged. Another Factor weighing against the Buck was a report showing housing starts Down by 5.4 percent in March. ". Housing sales normally go up in the Spring but those were Down along with the new permits Tucich said interest rates Are so High no one wants to buy a House because financing is so difficult to arrange. -. The poor bowing numbers Are being taken by currency traders As an indication thai the . Economy has cooled and that inc Federal re serve May be towering interest rates in the next few months. Tucich does t Sec interest rates coming Dow until perhaps summertime but the latest con Sumer Price data plus other recent disappoint ing economic statistics Are viewed by Ocieh and others As conclusive evidence that the fed wont match the recent West German rate hike. In Short things Are looking up for the Mark and dreary for the  other Factor that could tend Short term support 10 the Mark is an expected announce ment. From inc government in West Germany that it intends to do away with or modify a 10 percent withholding tax on investment income in that country. Fear of inc tax has driven Many Large West German investors out of inc Mark to other currencies and if i s abolished Many of those same investors Likely will return Home. Tetch said the Kohl government could act this weekend. One final note the next . Economic Statis tic that could have an Impact on inc Dollar will be the Fust Quarter Gross National product report due out wednesday. Tin Sun a sep. Ramstein Hahn to offer mar services on credit by Deedee Arrington Doke  Bureau Char Geil. The most seductive phrase in the language of capitalism will soon be words to pay by at morale welfare and recreation services at Rar Ostein a and Halm a in West Germany. Those bases Are the latest in Europe to try to boost mar usage by allowing patrons to charge services ranging from child care to travel the Only requirement to participate ii membership in Good standing at local officers or enlisted clubs. Charge privileges will be available to All ranks we wanted to give the no a Little More clout said Dianne Earhart manager of harm s audio photo club an mar activity participating in the credit card. Program. ". The move to offer on base credit cards is part of an Overall trend in the european theater to make credit More easily available up and Down the ranks. Only two months ago the department of defense announced it wanted lower ranking service members to have greater opportunities to apply for visa cards through the base and Post Exchange system. Lomas Bank of Dallas is working with cafes to process those credit card a plications at Ramstein a the so called rum card will be introduced in Early summer. The card actually will be a Slicker depicting a ram s head that can be attached to club cards. .-.-. At Hahn a where an extended payment plan Ems been in effect since 1986 at he audio photo club an expanded charge service will Start april 26. Customers will have up to six months to pay for All Wmk rely cd major purchases. About Hal of the audio photo club s �115,000 average monthly sales is already paid via "extendedpayment,1 at harm and Ramstein mar officials seem motivated by equal measures of providing their customers with belter service and raising revenues. Officials Al the two bases expect total sates to climb is percent with the new program. We think Well add 1s percent just in club memberships alone said Jerry Cardinal chief of resource management for rms twin s mar program. It s on incentive Ajdin. Buttic key is customer service credit s Appeal is not limited to Hahn and Ramstein officials. Other bases such As  in eng land also have adopted similar charge programs for mar purchases. Othere such As Zwic Brocken a in Germany Are considering in allowing customers to pay Over a period of Lime is catching on even though the possibility exists that some  wid abuse the privilege. We feel the risk is slight Cardinal said of possible credit problems. We feel most people me adults andean capable of handling their financial responsibilities. In the majority of cases people want to pay their Bills .-.-". Officials at both bases Are optimistic that charge customers will pay off their debts. That opinion hold despite a steady flow of offences related to credit and bad checks throughout Safe last year that resulted in non judicial punishments and courts martial. In 1988,55 credit and bad Check offences were dealt with by article 15 actions and seven were tried by courts martial in Safe according toll col a Neunherz a command  were 59 article 15 actions and six courts martial dealing with. Credit and bad checks in 1987, noun Ociz said. One base Legal officer at Ramstein said the cases there represent a disturbing trend by military people who neglect their personal financial responsibilities to such an extent that they commit a  still Cardinal docs not think the problem will affect his base s proposed ram card.  if you have a bad credit history with the club you re not going to be Able to use it,1 he said. We re going to Monitor the situation closely Richard Stone the non appropriated fund manage for Hahn mar estimates that about 3 percent of his base s audio photo credit sales Are routinely Delin quent by 90 Days or More but he attributes much of that to computer difficulties. We weren t Able to Bill customers quickly and accurately he said. The Ramstein and Hahn charge programs will differ on several Points Ramstein s charge limits will Range from $600 to 11,500, depending on the customer income. Patrons will have up to 90 Days to pay with no interest charges on most major purchases Over is so. Under Mahn s plan customers will be Able to take up to six months to pay for major purchases a j5 fee will be added to each month s Bill for account Maine i  credit limits will Range from a Low of $300 forthe lowest ranks to unlimited credit for e-6 and above. Any army service members or civilians who belong to the air Force clubs at Ramstein and Hahn also will be extended credit privileges. West germans  fired that so by Terrence Petty Bonn West Germany a work Les that does t sound like the people who brought West Germany up from the ashes of world War ii and made it the Rich and powerful nation it is today. I but it is the trend  workers some of whom already Are on the Job Only j2 hours or four Days a week. Work is not in the Center of life anymore says Minhard Mic gel a social scientist who Heads the Institute for Economy and society in Bonn. Leisure time has become a More important part of German life. This is not laziness. This is just a Normal express Ion of a very wealthy society. Lots of people have acquired material wealth and now they want to enjoy Mic gel does t see the work less trend As negative even for Industry. But Industrial groups maintain inc trend will mean higher labor costs we do see a danger that other countries might Start to look More appealing to some companies says her Mann Olbermann spokesman for  an organization that represents employers in the metalworking and electronics industries. The Issue has set off a Lively debate across West Germany As workers demand further reductions in their working Lime which for unionized employees now ranges from 32 to 39 hours a week. Unions want a Shorter workweek but not at the expense of wage increases employers counter that continuous pay increases coupled with lessened working hours could hinder companies ability to make a reasonable Profil and also make West Germany less attractive As a place to dobusiness.-.,  West German workers have a reputation for  in recent year they have succeeded in shrinking working hours to the extent hat on average according to some estimates they now spend less time on the Job a year than any other workers in the  German employers association West Ger Many s largest organization representing the interest of German businesses says that a worker averages1,716 hours on the Job annually compared Wuh 1,912 hours in the United Stales and 2,13s in the nether lands a few Hundred employees Al an Aachen lire Plant Are already scheduled to go on a three Day workweeks read Over 32 Noure and some workers with the Bow Auto company work a four Day 36-hour  germans Are also the Best paid workers in Europe and get 30 working Days of annual  addition inc in Meta i Union. West Germany s largest Tabor organization Wilh More than 2 million members is battling with employers for a Cut in the number of weekly hours for metalworkers to 35 from an average of37, employers organizations like Mcsam Mctall Are starting to resist. These in Mccall demands would put companies at a distinct disadvantage compared with labor Condi Lions in other countries says Olbermann spokesman for the Cologne based . In metall says further cuts arc heeded As a Means of reducing West Germany s 8 percent unemployment rate