European Stars and Stripes (Newspaper) - September 14, 1991, Darmstadt, Hesse                                Saturday september 14, 1991 the stars and stripes b Page 17money matters today a tip the Bush administration said the savings and loan bailout will run out of Money by the end of october but some lawmakers walked at doubling the taxpayer Cost of the program to $160 billion. Deputy Treasury Secretary John Robson and l. William Seidman chairman of the Federal Deposit insurance corp., told the House banking subcommittee on financial institutions thursday that Congress must soon appropriate More Money for the bailout Agency the Resolution Trust corp. Seidman said the Etc which he supervises had spent $67 billion of the $80 billion appropriated since the Agency was established in August 1989. Conversion rates London up fridays 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 $344.25 an ounce Silver at $3.96. Sept. 12 sept. 13 British pound.1.7330 1.7320 German mark.1.6855 1.6800 French tranc.5 7520 5.7555 dutch guilder.1.9035 1.9050 belgian tranc.34.815 34.830 italian lira.1,266.05 1.266.00 Swiss franc.1.4795 1.4745 greek drachma.187.29 187.50 turkish lira.4,601.30 4,61910 saudi arabian riyal.3.7502 3.7502 Spanish peseta.105.98 106.03 portuguese escudo.144.91 145.16 Canadian dollar.1.1364 1.1363 austrian schilling.11 8800 11 9050 norwegian krone.6.6090 6.6245 danish krone.6.5205 6.5310 these Are commercial rates and can be related Only to the use of foreign currency by . Forces for official business. The Only official rate concerns the Sale of German Marks to . Personnel for personal use and this will be 1.65 through monday based on fridays noontime Price fixing. A new York Exchange a new York up a the 15 most Active stocks in new York Stock Exchange composite trading on thursday. Stock sate Uit net chg. Rwjr Nab Hodg 5,291,500 12 up % at amp to company 3,079,500 38 i up % Uniss corp 2.585,900 4% Oil % ism corp 2,239,000 104 up 2% Pepsico inc 1,913,500 29% up % genl elec 1.911,400 69% 0�% Glaxo bldg 1,877,800 48 i up 2 genl motor 1,734,400 36% up % Tenn eco inc 1.712,000 40% 011% Marion Mer 1.695,500 37% up 1 Telesin of mex 1.673,300 38% up % Boeing co 1,672.900 49% 0 1% syntax corp 1.669.000 42% up % Block str ent 1,507,500 12 up % Amer express 1,451,800 25% unch american Exchange new York up the 10 most Active stocks in american Stock Exchange composite trading thursday. Stock sales last a Tal chg. Dow chem it 2.721,600 6% of Forest labs 1.010,100 30 off 4% Echo Bay in g67.600 7% off % Plains rest 409.900 19% up % cd Sportun it 296,600 8% off % fruit of pm 271.300 17% up Corona up a 262,500 7 unch carnival cars 262.000 22% up 1 Abi Omed inc 238,500 14 % up 1 % found Atn hath 236.300 21% up 1 % Dow Jones new York up Dow Jones closing Range of averages thursday cd sat up 20 80 up 8.47 up 0 31 up 6.64 30 industrials 20 transport 15 unities 65 stocks. High 3023 26 1191 47 208 00 1072 38 Low 2977 64 1172 43 20613 1056 69 close 3007 83 1163 89 207 12 1066 66 fed cuts discount rate to 5% in Effort to bolster Economy Washington a the Federal Reserve struggling to strengthen an extremely sluggish Economy announced Friday it was pushing a key Bank lending rate to its lowest level in 18 years. The move came closely on the heels of a report showing consumer i nation Rose Only 0.2 percent in August. The decision by the fed to lower its discount rate from 5.5 percent to 5 percent was designed to set off a Chain reaction of lower interest rates throughout the Economy. Within minutes of the announcement one of the nations biggest Banks Morgan guaranty said it was cutting its prime lending rate a half percentage Point to 8 percent. It was the fourth decline in the prime rate this year and put this Benchmark rate for Many business and consumer Loans at its lowest since 1987. A Cut in the discount rate the interest the Central Bank charges to make Loans to commercial Banks is the most dramatic signal the fed can Send of its intention to push interest rates lower in an Effort to Spur economic activity. It was the fourth decline in the discount rate since last december As the Central Bank began moving with urgency to combat the country s first recession in nearly eight years. At 5 percent the discount rate is now the lowest it has been since february 1975. Many analysts expected the half Point red petion in the discount Rale to be accompanied by a Quarter Point Cut in the Federal funds rate which now stands at 5.5 percent. The funds rate is the interest that Banks charge each other for overnight Loans. The fed s action was certain to be greeted with pleasure by the Bush administration which had stepped up pressure in recent weeks for rate cuts. The fed said the rate Cut was in response to Quot concerns about the ongoing strength of the economic  it said the move was also in response to extremely sluggish growth in the nations Money Supply and weak lending by commercial Banks. The fed also said the rate Cut was taken in Light of improving news on inflation. The announcement came shortly after the government reported consumer prices Rose 0.2 percent in August. For the whole year retail prices have been rising at an annual rate of 2.7 percent. Last years rate was 6.1 percent. The government also said retail sales Reagan Bush tax cuts Aid Only Rich study says by the Washington Post Washington Are you better off today than you were 15 years ago before the Advent of Supply Side economic policies according to citizens for tax Justice the answer is a resounding no unless you happen to be among the nation s richest taxpayers. In a study of Federal fiscal policies Between 1977 and 1992, the non partisan group concludes that the tax cuts enacted in that period enriched the wealthy increased the tax Burden of the Middle class and grossly inflated the National debt. At the same time according to the study Federal spending on defense interest payments and Deposit insurance bailouts has soared even As the Normal government services most americans receive have been Cut Back. A Middle income people have reason to be mad at the government a said the organizations director Robert s. Mcintyre. A a it a charging them More and giving them  the study is the latest of a growing pile of analyses on Federal fiscal policy during the 1980s, when then president Reagan promised to Cut taxes build up defense and balance the Federal budget. It is also the latest study to be seized on by congressional democrats hungry for an Issue a tax fairness a by which they Hope to regain the affections of voters who believe their party stands Only for higher taxes and More government spending. At a thursday news conference with Mcintyre unveiling the study House majority Leader Richard a. Gephardt d-mo., accused Republican presidents Reagan and Bush of carrying on a a class War against Middle income working families to the Benefit of the wealthiest people in our  Gephardt vowed that by next year democrats in Congress will coalesce around a program of raising taxes on the wealthy and cutting them for the Middle class. He declined to say just what the specifics of such a program would be. The study concluded that the tax cuts the bulk of them under Reagan have resulted in lower Overall Federal tax Bur Middle income people have reason to be mad at the government. It s charging them More and giving them less a Robert s. Mcintyre tax group official fell 9.7 percent in August the biggest setback in seven months and further evidence that weak income growth is preventing the key consumer sector from helping to revive the Economy. Overall retail sales totalled a seasonally adjusted $152.5 billion Down from $155.4 billion in july the Commerce department said. The l Abor department said the Small Rise in its closely watched consumer Price Index was identical to gains in june and july and it followed similar Good news on wholesale prices. Hie 9.2 percent increase in consumer prices last month reflected outright declines in both food and Energy. These decreases helped to offset higher prices for such items As fall clothing new cars and airline tickets. Energy prices fell 9.2 percent reflecting declines in natural Gas and residential electricity. These offset gains of 9.5 percent in gasoline pump prices and a 9.8 percent Rise in Home heating Oil costs. The Overall consumer Price Index before adjusting for seasonal variations stood at 156.6 last month compared to 151.6 a year ago. That meant that a mar act Basket of goods and services costing $151.69 in August 1999 would have Cost $156.60 last month. Dens for Only the very poorest and very richest of . Taxpayers. Most other families arc paying a greater percentage of their family income to the government than they would be if the tax code had remained unchanged since 1977. According to the study the cumulative Impact of the tax cuts enjoyed by the richest 1 percent of american families a those now making an average of about $676,099 a year a has been to add More than $1.1 trillion to the National debt. For 1992 alone the study said the Treasury is losing about $164 billion from the tax cuts for this Small slice of the citizenry about half in taxes and half in interest costs on tax cuts from the year before. The study also makes a Long list of recommendations to make the tax system More equitable a and to begin reducing the Federal deficit and National debt. Agency at amp to spar Over Federal phone contract by the new York times Washington the general accounting office said thursday that the Federal government s main contract to buy Long distance Telephone service will Force it to pay $148 million above commercially available rates Over the next two years. At amp tone of the two principal contractors denounced that conclusion by the congressional watchdog Agency however claiming it was based on questionable data. At Issue is what is known As the i to 2000 contract in which the government buys most of its Lon distance services from either the american Telephone and Telegraph co. Or the  sprint communications co. The contract expected to total $25 billion Over 10 years covers both voice communications and data transmission services. It was negotiated with the intention of providing the government significant discounts in Exchange for High volume commitments. Congressional officials note that the contract has saved the government about $299 million since it was awarded three years ago. But the Gao estimated that the prices for voice Telephone service Are now 29 percent higher than present Rales available to commercial customers. The Agency also said that rates for some data services Are As much As 69 percent higher than commercial rates currently available. At amp to officials said the Gao s analysis was wrong. Quot we believe our prices Are competitive with comparable commercial offerings Quot said Herb , a spokesman for at amp to