European Stars and Stripes (Newspaper) - August 2, 1991, Darmstadt, Hesse                                Friday August 2, 1991 the stars and stripes b Page 17 s it s a is in in is san s Money matters. A s # a it a san a it i economic Index Points to slow soft recovery the government has postponed its plan to collect $2 a person for inspecting airline baggage from Hawaii and puerto Rico for agricultural pests. The animal and Plant health inspection service an Agency under the department of agriculture initially planned to begin charging the user fee thursday but will now Start oct. 1. The three month delay is intended to allow time to work out fee implementation questions the Agency said. Similar fees went into effect May 13 for travellers arriving in the United states by air from foreign destinations. Fees also Are being charged for arrivals by ship and for inspections of trucks and rail  rates London up thursdays closing rates for the . Dollar to other currencies. Figures Are expressed in dollars to the British Pound other local currencies in dollars Gold was quoted at $363.50 an ounce Silver at $4,06. July 31 aug. 1 British pound.1.6845 1.6725 German Mark. 1.749 1.753 French franc.5.938 5.938 dutch guilder.1.968 1.968 belgian franc.35.985 a italian lira.1,304.15 1,304.15 Swiss franc.1.526 a greek drachma.191.90 192.10 turkish lira.4,399.70 4,408.80 saudi arabian riyal.3.7502 3.7504 Spanish peseta.i.109.35 109.27 portuguese escudo.149.70 149.75 Canadian dollar.1.1523 1.1498 austrian schilling.12.285 12.2865 norwegian krone.6.82 6 8160 danish krone.6.745 6.76. These Are unofficial rates As reported by wire service and banking sources and they Are listed to give some idea of daily currency fluctuations. A. The Only official rate concerns the Sale of German Marks to . Personnel for personal use and this will be 1.70 Friday based on thursdays noontime  gets new president Frankfurt Germany up a Helmut Schlesinger started his duties As Bundesbank president thursday at a time when Western Germany a robust Economy is starting to show signs of Strain from the Burden of German unification. Schlesinger who has been with the Bundesbank since 1952, is replacing Karl Otto Pohl who Over the past decade gave the Bank its reputation As one of the most powerful financial institutions in the world. Schlesinger 66, has been appointed for a two year term. After that vice president Hans Tietmeyer is  to take Over. Western Germany a inflation rate hit an eight year High at 4.5 percent in june following major tax hikes Price increases and higher labor unit costs. Schlesinger who is known As the Central Bank a sternest guardian of currency stability has warned that the Bank would be forced to lift interest rates to keep a lid on rising inflation. He said that an interest rate hike could occur As soon As aug. 15, when the Bundesbank scentral Council is scheduled to resume its biweekly meetings after a summer break. Washington up a Commerce department reports Are giving further evidence that the nations battered Economy is undergoing a slow but steady recovery. The government Index of leading economic indicators a comprehensive Index which tracks 11 segments of the National Economy to forecast future business conditions edged up a half a percent in june for the fifth straight monthly increase it was announced wednesday. Factory orders the weakest segment of the comprehensive Index fell 1.4 percent in june after a two month gain. Shipments however continued their Advance and manufacturers continued to trim their inventories. The Chicago purchasing managers society business barometer regarded As a bellwether of the National Index Rose nearly 3 Points to a seasonally adjusted 50.7 Points in july. Analysts appeared most interested in the leading indicators which Are considered a barometer of the future. The Reading is now 143.6, the highest since August 1990, when it was 144.4. A the increase of a half of a percent the fifth monthly increase in a Row is very presumptive of sustained recovery a said Allen Sinai chief economist for Boston co. A it s not a rapid recovery but it is consistent with what we re looking for in a gradual recovery a said Robert Dederick chief economist for Northern Trust in Chicago. Samuel Kahan of Fuji securities in Chicago agreed. He characterized wednesdays reports As a evidence that the recovery is on the Way. The Guys that think we re falling into a double dip recession Are on the  still few economists were willing to guarantee the Economy was out of the Woods. Sinai noted a some yellow flags of caution in the leading indicators its 11 components were split evenly with five positive five negative and one unchanged. Manufacturers new orders for consumer goods a considered an important measure of health a fell in june after showing a Strong increase in May. Sinai also noted some of the past few months surge in economic activity could Stem from increased consumer Confidence after Victory in the persian Gulf War and could now subside. A so the data Are presumptive that we Are out of a recession but As a card carrying economist 1 would not certify that if 1 had to sign my name at the Bottom of a piece of paper a he said. I analysts said if the modest growth continued a and if fridays labor department report on the nation s employment picture also shows modest improvement a the Federal Reserve Board is not Likely to guide interest rates lower. Business groups however Are continue. Ing to push for reductions in borrowing costs to boost economic activity. Reacting to the economic reports Richard Rahn vice president and chief economist for the . Chamber of Commerce said a at Best the numbers support a rate of economic growth of Only about 1 percent a hardly fitting anyone a notion of a significant  America West to Cut work Force shut operations at some airports Phoenix up America West airlines which has been operating under chapter 1jl bankruptcy Protection for a month said it plans an unspecified number of cuts in its 15,000-employee work Force. America West the nations ninth largest airline said there would be personnel reductions at All Levels in connection with a work Force productivity improvements and its recent decision to return nine of its 115 planes to lessors. America West also said wednesday it plans to further Cut the Fleet size to Between 90 and 100 by the end of this year. America West also said this week that it has moved up the Date for shutting Down operations at five airports to aug. 25 from sept. 7. Those affected Are Calgary and Edmonton Alberta Fresno and Santa Barbara Calif. And grand Canyon Ariz. The Carrier previously said it would cease operations on thursday at five other airports Bakersfield Calif. Grand Junction Colo. New Yorkus Laguardia Palm Dale Lancaster Calif. And san Antonio Texas. It also reduced service at Durango Colo. Long Beach Calif. Sacramento Calif. San Jose Calif. And Wichita Kan. It plans to add Atlanta to its route system of aug. 30 with four daily flights to Phoenix and Las vegas and begin new service to Detroit on . 15. It will also add two flights to Newark ., and Boston. The disclosures on work Force cuts came As part of the carriers announcement that it had lost $30.9 million in the second Quarter compared with a net gain of $6.1 million or 29 cents a share in the year ago Quarter. America West also said wednesday it is starting a a abroad based Cost reduction program expected to produce a savings of More than $100 million annually. Edward r. Beauvais chairman and chief executive officer said that More than $70 million of the annualized savings will be generated fron programs implemented Over the next 60 Days. The other programs cited by Beauvais include route realignment and schedule improvements a previously announced conic Anywise pay freeze that went into effect july 1 and a 10 percent salary reduction that went into effect thursday. The Carrier which has hubs in Las vegas and Phoenix has blamed its problems an last years High fuel prices the recession and the reluctance of the Public to travel during the persian Gulf War. But analysts have said the Carrier helped create its problems by expanding too rapidly into too Many markets during the late 1980s. Mutual to sell go benefits division other life health insurance assets Trenton  A Mutual Benefit life insurance co., which state regulators seized to Avert a devastating run has agreed to sell its profitable group life Accident and health insurance business for $500 million. Mutual Benefit reached the Deal with new York based amen holdings inc., officials said wednesday. New Jersey insurance commissioner Samuel Fortunato and Amevi a Parent companies in the Netherlands and Belgium must approve the Sale. The division to be sold includes the 100,000-member uniformed services Benefit association a Kansas City mo., organization that Sells Low Cost insurance to Active duty and retired service Mem ers full time Federal employees and reservists. Some of the plans participants live in Europe. = the division also provides disability life medical and dental insurance to Small and medium sized employers. Fortunato and Stephen j. Carlotti who became chief executive of Mutual Benefit after the state takeover two weeks ago said in a joint statement that the Sale would a significantly enhance Mutual benefits financial condition. A without question amen holdings is the Ideal strategic partner for Mutual benefits group insurance business a the statement said. The group business accounts for $1.1 billion of Mutual benefits $13 billion in assets and has policies with 85,000 employers covering 1.3 million workers. Officials from Mutual Benefit and the state said the tentative agreement will have no immediate effect on the stale a decision to prohibit customers from cashing in their policies. The state allows some emergency withdrawals while death benefits and health benefits have continued. The Sale would give Mutual Benefit Cash and notes. The breakdown has yet to be determined but the Deal would include a a substantial amount of Cash a said Allen Freedman chairman and chief executive officer of amen holdings. Amen holdings inc., founded in 1978, is the . Holding company of the $40 billion combined operations of . Amen of the Netherlands and group a of Belgium