European Stars and Stripes (Newspaper) - November 11, 1990, Darmstadt, Hesse                                Sunday november 11, 1990 the stars and stripes Page 13 Randy Mcclain Gulf news keeps Dollar floundering Strong talk about War in the persian Gulf and the announced deployment of 100,000 More troops to the Region did Little to boost the Dollar last week. One Ray of Hope that the Dollar might be Able to bust Back through the 1.50-Mark level disappeared at weeks end after a French proposal to come to the Aid of the Buck was shot Down by Germany and Japan. That proposal materialized thursday when Frances finance minister Pierre Bergovoy said he was in support of a multinational Effort to Stop the dollars slide. A the United states a Bergovoy said a does not have a lasting interest in a marked drop of the  the French called for a meeting this month of the group of seven industrialized nations the United states France Germany Japan Italy Canada and great Britain to address and possibly reverse the dollars weakness. The Call for a lifeline for the Dollar received a favourable reaction in Washington but the German Central Bank and japanese officials shot Down the idea. Gunter Teich a currency analyst with Bank of America said the germans in particular  be expected to do the Buck any favors. A the germans in general like the idea of a weaker Dollar because it reduces inflation a Little bit in Germany a he said. Many raw materials used by German industries Are sold on the world Market in dollars and a weak Dollar helps keep those prices Down. A weak Dollar also helps Germany Deal with the High Cost of rebuilding the former East Germany which is in a state of economic collapse. A Strong Mark coupled with rising interest rates in Germany make it easier for Bonn to attract foreign investors Money and that helps keep the National budget in balance even while billions in Marks Are poured into the East bloc Rescue Effort. At this stage Teich said he sees the Dollar continuing to Trade in the 1.48 Mark to 1.50 Mark Range m the near term. In his mind and that of other traders shipping two More heavy . Army divisions with As Many As 700 my Al tanks to saudi Arabia is not a reason to buy dollars. In fact Teich said the longer the stalemate in the Gulf drags on without a shot being fired the less the confrontation will figure into Day to Day Exchange rate fluctuations. A the announcement now is to add 100,000 troops but what if nothing happens a the Bank of America analyst asked. A a there la be no big movement on just the troops  Teich does see a boost for the Dollar in the event of War but no one knows if or when that will occur. Indications that the currency Market is still somewhat wary of what could transpire in the Gulf were very much in evidence last week though. The Buck moved up a notch when the War sabres rattled and dipped slightly when peaceful words were uttered. The dollars slight Rise Wasny to Long lasting though. Late Friday in Europe the Buck was trading just under 1.49 Marks slightly lower than where it began the week. The military Exchange rate for this weekend remained at 1.46 Marks in Germany a historic Low. Friday one Pound was Selling for $1,966 on the world Market about one cent More than British currency was Worth a week earlier. One possible helping hand for the Dollar would a if move by the us. Federal Reserve to buy up millions of Bucks on the world Market which would tend to make the . Currency a bit stronger. But Teich does no to expect that development just yet. Instead he predicts the . Central Bank will move Only if the Buck drops another two pfennig against the Mark. The Stan and Stripe business news it s been a Tough year military tour firms by Randy Mcclain financial writer the weak Dollar and the deployment of troops from Europe to saudi Arabia Are making life difficult for travel agencies in Germany that Cater to american scr ice members. A we Are barely surviving. Its a lot of hard work and no profit whatsoever a said Brigitte Colantonio owner of top Tours in Kaiserslautern Germany. Companies such As top Tours and enjoy Tours also located in Kaiserslautern work closely with Sato and itt travel offices on . Military installations. The companies arrange bus Tours to european hot spots like Paris Amsterdam and London and then Market the trips to soldiers and airmen through the . Governments on base travel offices. In Good times the package tour business is a lucrative one As the German companies Cash in on service Mem Erst desire to see the continent. Lately though tour companies Are finding it hard to turn a profit. A anybody who Isnit concerned with what a going on out there right now is just kidding themselves a said Jim Heilman sales and marketing director with enjoy Tours. The Low Dollar at last report the Buck was Worth 1.46 Marks 13.5 percent less than its 1990 High of 1.69 Marks is perhaps the biggest problem. It hurts tour companies two ways. First service members and their families Are less Likely to spend Money on luxuries such As travel with the Dollar dipping so Low in Europe. German travel companies take another big hit when they set prices for trips in dollars for the convenience of . Customers. Colantonio said trips that were profitable for her Agency when the Buck stood at 1.65 Marks were no longer profitable after the Dollar hit the 1.50s and below. A fall the tour companies lost a tremendous amount of Money on the Dollar a she said. A a it a been a hard year to hang in there a top Tours and enjoy Tours both raised prices be Ottil t in i a so f to fur a High i i iwo us tween $10 and $30 on Many of their bus trips in Early october but that was Only after several months of losses. A your prices should have gone up in july a the top Tours owner said. Bus companies that lease vehicles to the tour companies have been pushing for higher fees to compensate for the rising Price of fuel at the pump since Early August and hotel costs have also skyrocketed especially in the newly opened East bloc. A right now you need 55 people on a 48-seat bus to cover your costs a Colantonio said. A in the past we could Send out a bus with 25 people. Not  desert shield is also proving a nuisance for the travel Industry because of the uncertainty it creates among american families considering vacations. Several travel Industry representatives said a summer travel Boom quickly cooled off when the Gulf crisis heated up. On base managers with Sato and itt outlets in Germany said their offices were swamped with cancellations from service members on Alert for the persian Gulf in september and october. A related problem travel Industry representatives said was that Many other service members waited until the last minute to make reservations because they were sure a big Call up was imminent. Too often people tried to make bookings a Mere two or three Days before trips were scheduled to leave and by that time the bus Tours had been cancelled because of Lack of participation. A several times we cancelled trips that could have gone a if Only the people had called earlier a Colantonio a amps Gus Schmo Tlly Brigitte Colantonio. Owner of top Tours said. Terry Jacobson who runs the itt travel office at Rhein main a said tour operators pulled the plug on midweek trips to Paris and the oktoberfest in recent weeks both of which Are usually very much in demand. A when a trip to Paris gets cancelled that s a sign something is really wrong a Jacobson said. Surprisingly Heilman and Colantonio said they have seen As Many or More customers for the year As a whole As in past years. But the trend this fall is for service members to take Shorter and less expensive trips. Heilman said one and two night trips to various european capitals still sell Well but four and five night Tours Aren t so much in demand. A a we re varying our length of Tours to meet Peoples budgets a Heilman said. One positive sign at top Tours is that the number of travellers for the veterans Day Holiday this weekend is up dramatically when compared with last year Colantonio said. But she has a nagging worry about the continuing effect of desert shield on americans willingness to go on vacation a if War Breaks out that could be fatal to us a the top Tours owner said. Other travel Industry representatives said they think service members will take trips in Large numbers Over the next several months no matter what. Their thinking is that impending troop cuts in Europe make this the last Chance for Many service members to take a dream vacation. A i personally feel if the Dollar is Low people tend to spend their Money differently a said Giscla Haugen manager of the itt travel Bureau at Ramstein a. A people pass up buying a car or furniture and they take the Chance to travel in  debtors having Tough time making card loan payments Leonard Sloane . Times news service with layoffs High and Money tight More and More Consumers Are finding it hard to make their monthly payments on credit cards and instalment Loans. In response lenders in the United states have developed More flexible policies in recent months to let people rearrange their debts Industry analysts say. Some of the adjustments creditors Are offering include a accepting Only the interest for a couple of months or More. A refinancing a loan to lower the amount of the monthly payment. A allowing a debtor to remain in arrears for a period of time before turning the account Over to a collection Agency a cancelling the interest for an agreed upon period of time so the Borrower can make affordable payments. Experts warn however that the total debt is rarely reduced by such schemes and that interest usually accrues even when the principal is unpaid since a Price must be paid for every Day that a Lender s funds Are used. In addition Many lenders will freeze a debtors credit line barring further transactions