European Stars and Stripes (Newspaper) - August 20, 1989, Darmstadt, Hesse                                Page 18 the stars and stripes business news by Randy Mcclain Buck May Rise As Economy wins Praise there s a Subtle change of attitude taking place among foreign Exchange traders of late that is Likely to help push the Dollar even higher in the next several weeks perhaps Over the 2-Mark level once again instead of fretting that the . Economy in growing fast enough or worrying that president Bush won t be Able to Engineer further improvements in the . Trade deficit Many traders arc Starling to Praise the United Stales for having the Best managed Economy among Western pow ers. International economist Andrew Ellott of Chase investment Bank London said credit must go to the . Federal Reserve Bank and its chairman Alan Greenspan. The fed seems to have found the right course. It s on line to keep the . Economy relatively buoyant and to prevent a recession Ellott said. The . Economy in t going to fall off the Edge Ofa Cliff As so Many people had  further evidence Hal economic policy is on a stable course came with thursday s announce ment that the american Trade deficit shrunk to less than $8.2 billion for june the lowest monthly deficit Indore than 4 i years. The deficit was More than $10 billion inlay. Adding a particularly positive slant to the Trade news was word thai . Exports hit a record $30.9 billion for the month an increase of 1.5 percent compared with May s figures while foreign imports fell 3.6 percent thoroughly $39 billion. The feeling is . Companies Are getting More competitive than they used to be said one currency trader in Frankfurt West Ger Many who 15 bullish on the Buck. It looks As if the trend we have at the moment will keep the. . Trade deficit in single digits added the trader who spoke on the condition that he not be identified. He said lower consumer spending in the United states will keep imports from gaining ground there while american manufacturers should be Able to produce More goods to match growing demand for . Products Over seas. He predicted this combination will help the Dollar reach highs around 2.05 Marks in the next two or three months. On Friday the Dollar was trading in Europe in the neighbourhood of 1,96 Marks for a Buck. The High for the week was just More than 1.97 Marks shortly after thursday s Trade deficit re port. In England one Pound was Selling for $1.5650 Friday afternoon after opening the week above $1.58. The military Exchange Rale in West Ger Many was set at 1.94 Marks per Dollar based on a Friday afternoon Price fixing in  Rale which will remain in effect through monday afternoon Means  will gain three pfennig for every Dollar. Ellott said there s a Good Chance the Buck will move still higher but he does t think it will happen overnight. For this bullish Market to remain intact it s important for the Dollar to consolidate for a time in the 1.94 to 1.97-Mark Range he said. If the Buck were to move up too far too fast Ellott believes european Central Banks would drive it Back Down with aggressive Dollar sell ing on world currency markets. If the Market catches its breath for a Lime though Elton said a gradual Rise in the Dollar will follow. Also helping the Buck is the widespread perception that the Federal Reserve will keep in Terest Rales in the slates right where they Are Al least through the end of september. Any Cut in Rales won t happen until the fourth Quarter of the year Elloul said and Hal gives the Dollar one More Edge Over other currencies.  Navy oks agreement for military credit cards by Randy Mcclain financial writer the Navy intent on putting credit cards in the hands of More sailors and earning Money for its mor ale welfare and recreation accounts in the process has reached an agreement with Lomas Bank Usa to deliver special military visa and Mastercard to service members Marling this month. The credit cards which will charge an annual inter est Rale of 16.9 percent will be marketed through Spe Cial take one displays Al Navy Exchange facilities commissaries and Navy lodges. Table lop displays each featuring the american Eagle and the slogan take charge will be filled with credit card application Blanks by inc end of the month a Navy spokes Man in new York said.  sailors or civilians working for inc Nav can Lake an application from inc display and mail it to Lomas Bank in Wilmington Del. The Bank decides who gets a card. Under the program inc $20 membership fee Gener ally charged by Mastercard and visa will be waived for the first year a customer has one of the credit cards. In subsequent years inc fee will continue to be waived As Long As a customer charges at least $3,000 annually. The Navy s new program is part of a growing Effort in the military to get credit cards into the hands of credit worthy soldiers airmen and sailors. The army and air Force Exchange service started its own credit card promotion in cooperation with Lomas Hank Las year. The cafes program was revised earlier this year however after it was discovered thai Loo Many lower ranking soldiers those in the categories e-4 and below were being turned Down for credit. Income Levels needed to qualify for a credit card were lowered in february and cafes officials report Hal More than Isicc As Many lower ranking soldiers per month have been approved and Given cards by Lomas Bank since then. John Russas. Public affairs manager at the Navy resale services and support office in new York said both inc Navy Exchange service and cafes Are pro Moling credit card use because the system pays. Under their agreements with Lomas Bank Usa both the Navy and cafes earn a commission on each military credit card issued and a Small percentage each time a  uses his or her card to make Purchase. Russas said inc Navy will earn a $10 commission for each credit card application. Approved by Lomas Bank for Active duty Navy officers and for civilians inlay categories gs-9 and above. A $6 commission will be paid for every application approved for enlisted personnel and civilians below inc gs-9 level. Each Lime a Scricc member uses inc credit card to make Purchase inc Navy will pocket 0.75 percent of the Pur Chase amount As its fee. Cafes officials would nol divulge inc Cha cd com missions and fees the Exchange service receives under ils contract with Loans saying such information i proprietary. But capt. Wes Davis a spokesman for the Exchange service in Munich West Germany said cafes has earned $284,374 in a Little More than year under its credit card contract worldwide. Lomas Bank s agreements with inc Navy and cafes Are not unique. Back in the United states Many organizations ranging from universities to environmental groups have contracts calling for Banks that Issue credit cards to pay a certain percentage of sales to the sponsoring organizations in return for thai group s help in marketing cards to its members. Credit cards marketed under such an agreement arc called Affinity cards because of the close relationship Between the sponsoring organization and the Bank Hal issues inc cards. The actual credit cards often prominently feature inc logo of the sponsoring organization in addition to inc visa and Mastercard symbols that arc recognized around the Globe. In the Case of inc Navy applicants for credit will have several styles of cards from which to choose. One card will feature a design showing a Navy aircraft car Rier with planes zooming in for a Landing another will show a battleship cruising through White capped Waves and a third will feature a picture of a submarine surfacing Russas said. The Navy s agreement Wilh Lomas Bank Usa was comply cd aug. 7. Credit card applications Are being sent to the service s 134 Exchange facilities worldwide. Russas said exchanges in Italy and Spain will not get applications As quickly As exchanges in the United states bul the program should be running everywhere by the end of August. On a related Mailer officials Wilh both inc Navy and cafes said a recent agreement that Calls for the Sale of Lomas Bank Usa and ils credit card operation to a new group of investors in inc United states will have no effect on the military s credit card programs. Lomas Bank Usa is being sold by its Parent corporation Dallas based Lomas financial corp., for a reported $500 million in Cash and Stock to a group of institutional  Deal is to close this month. We have basically been told our program will re main a valid one a spokesman at cafes Headquarters in Dallas said. We Don t expect any glitches in  Bob Dorr assistant vice president of marketing Wilh Lomas Bank Usa said the company s Sale will not disrupt its contracts Wilh cafes or the Navy. Dorr declined in comm Cal on any other aspects of the military s credit card business. Some Good deals can Bob up in sea of mail order Credi f cards by Leonard Sloane new York times hardly a week passes without the average american household receiving at least one offer in the mail for a credit card. These appeals which include applications come from an array of Banks savings and loan associations brokerage houses Mutual funds Small loan companies and a plethora of special interest groups. Why the surge in wooing potential customers according to the Nilson report a credit card news letter published in los Angeles one main reason i that about 3 billion transactions with Bank cards for a total of $218 billion arc expected to be made in the United Stales this year. What should you do about the mailings experts suggest you shop at Home for cards that careless costly than the ones you have now. It s very easy to find a Deal in the mail to beat your present card issuer s Deal said Robert k. Heady pub Lisher of Bank rate Monitor a newsletter in North Palm Beach Fla. A Little extra Homework and some careful shrewd shopping could save hundreds if not thousands of  " " but Barbara bar Ger Spolowsky president of the better business Bureau of metropolitan new York warned that people eligible for credit arc getting More solicitations than they should sign on  you could be offered Bank cards Wilh interest Rales ranging from 15.9 percent to 20 percent and with an Nual fees ranging from about $20 to $30. But rates even fixed rates can be changed at any time As Long As customers get Advance notice. It has become increasingly Clear that credit cards arc the tool with which 10 build a National financial services franchise much More than branches much More than offices said John love publisher of cred in card management a Chicago Trade Magazine. Dennis r. Babcock director of credit card Market ing at inc Home owners savings Bank in Burlington mass., added everybody wants a share of the credit card  " r the cards arc being marketed through inc mail like sweaters and Barbecue grills said Elgie Holstein  of the bankcard holders of America a consumer advocacy group