European Stars and Stripes (Newspaper) - January 16, 1992, Darmstadt, Hesse                                Page 18 c the stars and stripes thursday january 16, 1992money matters b at amp to has formed a joint Ven Turc company to upgrade and run the Long distance phone network in Ukraine in what May be the largest agreement yet to modernize a hone system in the former East Loc. American Telephone amp Telegraph co. Will own 39 percent of the venture the firm announced tuesday. The dutch postal and Telephone system put telecoms of the Netherlands will own 10 percent and 51 percent will be owned by Ukraine a state committee of communications. At amp to a investment will consist of 13 phone switches Worth a tens of millions of dollars a spokesman Walter Murphy said but no total value for the Deal was  rates London up wednesdays 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 355.60 an ounce Silver at $4.08. Jan. 14 Jan. 15 British pound.1.7945 1.7625 German mark.1.5705 1.6175 French franc.5.3550 5.5183 dutch Guilder. 1.7905 1.7947 belgian franc.32.35 33.15 italian lira.1,185.45 1.21 b.50 Swiss franc.1.3950 1.4355 greek drachma.180.93 185.90 turkish lira.5.275.40 5,275.40 saudi arabian riyal.3.7501 3.7501 Spanish peseta.99.93 1 02.43 portuguese escudo.135.75 139.41 Canadian dollar.1.1477 1.1535 austrian schilling.11.0375 11,3650 norwegian krone.6.1680 6.3480 danish krone.6.0610 6.2620 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 1.58 through thursday based on wednesdays noontime Price fixing. New York Exchange new York up York Stock exc Iang the 15 most Active stocks in new e composite trading on tuesday. Stock sate Laal Nat chg Citicorp 1 1,287,200 13 up 1 Rwjr Nabisco hid 4,492.200 in up Vuk coming inc Amer express co 3.424,700 6btt unch 3,354,300 23 Vuk up 1 Glaxo holdings 3,099,200 334/4 unch Ford motor co 2.813.500 31v4 up 4k computer Assoc 2,069,600 1214 up 44 Boeing co 2,006,700 50vr up 144 general motors 2,004.100 32 up 1 nocal corp 1,910.600 22 4 up a Santa be Pacil 1,794,000 1344 up 4 adv Micro docs 1,766,400 20v4 up i Rowan cos inc 1,655,700 5v4 up w Wal Mart stores 1,650,000 59 up 114 Philip Morris 1.630.800 7944 Pukk american Exchange new York up a the 10 most Active stocks in american Stock Exchange composite trading tuesday. Slock Enio Burchem  Amdahl corp Amer healthcare read care inc Turner by dust b Columbia labs Hill Haven corp Ami corp Plains resource salts 2,292.800 2,109.200 1,344.200 636.100 609.100 516,500 507,800 506.100 462,200 422,600 last 7 344 18 514 814 27 9v� 3 i 8 v. 19 Nat chg. Up 114 up 144 up i up i up i up i up i up i up i up Ivi Dow Jones new York up Dow Jonas closing rang of averages tuesday 30 Indus trials 20 transport 15uthhes 65 stocks flak 3255.81 1390.70 216.07 1175.42 Low 3167.93 1359 30 21213 1146 81 close 3246.20 1387.33 21532 1172.05 comm up 60.60 up 23.17 up 181 up 19.57 Commerce dept confirms reports of Flat 1991 sales by the Washington Post Washington the Commerce department confirmed tuesday what Many retailers have been saying the 1991 Christmas Selling season was not so hot and the year As a whole was one of the worst in three decades. The department said retail sales fell 0.4 percent last month after seasonal adjustment to $151,2 billion following a similar 0.5 percent drop in november and a 0.1 percent decline in october. For the entire year sales totalled $1.82 trillion a scant 0.7 percent increase Over "1990 and the smallest Rise since 1961, when retail sales fell slightly. Sales had increased 3.8 percent in 1990 and 6 percent in 1989. At the White House spokesman Marlin Fitzwater said the sales figures a indicate a very cautious consumer As we enter the first Quarter of 1992. We expect a recovery in retail sales this year As the significant monetary easing by the Federal Reserve Board in late 1991 works its Way through the  interest rates Are not so Low however that an election minded White House would not like to see them lower still. A inflation is very Low a Fitzwater observed a a. So there is always room for lower interest rates but we done to try to dictate to the fed what to  for the moment however Many financial analysts have decided that the Economy is on solid enough ground that no further interest rate reductions Are Likely soon. For example in the october de Cember period retail sales were Down from their level in the second and third quarters of last year but still up substantially from their Low in the first three months of 1991. Darwin l. Beck of first Boston corp. Noted a few Days ago that All the economic data now coming out basically predate the feds percentage Point dec. 20 Cut in free spending of 80s is Over retailers told at . Convention new York apr for a moment you  Tell if it was a retailers convention or mtg As the lights dimmed and Billy Joel a we did no to Start the fire played on the screen. The Rock song which chronicles world events since the late 1940s, proved a perfect vehicle to illustrate to store owners tuesday How american society and values have changed a and How the retail business must Cope. Quot As Long As the fire is blazing a and we re All in it now a that Sall that matters Quot said Ray Gaulke executive vice president of the newspaper advertising Bureau inc., at the National retail federation convention being staged in new York this week. Gaulke gave retailers a message sounded repeatedly the recession has left Consumers with less Money but even when the Economy improves americans wont return to the free spending ways of the 1980s. Economists at the convention said half the retailers in business at the Start of the 1990s would be gone by the end of the decade. And retailers who done to change their approach now can expect to be among the missing. But All is not lost the retailers were told. Laurel Cutler a vice chairman at the advertising firm fcb Leber Katz partners told store owners they have the Chance to a exploit and not just weather the  the status symbols of the 1980s Are giving Way to virtue symbols she said and retailers can flourish by meeting consumer demand for Good merchandise at Low prices. Like other speakers at the convention she cited discounter Wal Mart stores inc. And apparel retailer Gap inc. As retailers enjoying Boom times because they re giving Consumers the merchandise they want at Low to moderate prices. Its discount rate the interest rate it charges on Loans to financial institutions. Consequently Beck said he thinks the fed will not Cut rates this month and that its top policy makers will similarly hold their fire when they meet on feb. 4 and 5. However fed chairman Alan Greenspan will be Given the authority to reduce the rates if the Economy weakens later. One key area of poor retail sales throughout much of 1991 was new car sales a trend that continued into the new year. Reports from the first 10 Days of january showed that sales of domestically made vehicles fell 6.2 percent from depressed 1991 Levels indicating that lower interest rates have not erased consumer worries about the Economy. Including an estimate for Chrysler corp., which does not announce 10-Day sales figures the 10 automakers sold an average of 21,031 vehicles a Day compared with 22,429 during Early january 1991. Sales of North american made cars and trucks with japanese nameplates fell 0.8 percent during the period while sales of general motors corp., Ford motor co. And Chrysler vehicles fell 6.7 percent. Economists overshadowed by politicians by the new York time Washington week after week Many of americans Best known economists Are being summoned before congressional committees for expert advice on what to do about the Economy. But while Given respectful hearings their counsel is almost certain to be rejected to the continued frustration of a Long suffering profession. A tax Cut for the Middle class a bad idea say an overwhelming majority of economists of various political inclinations. A tax credit for capital investments it distorts capital flows they respond particularly if the credit is temporary. So not surprisingly these items Are Odds on favourites to be important components of whatever a a growth Bill a the certainties Are that it will sport a Highfalutin name and voter Friendly provisions a gets enacted this year. For years the economics fraternity has suffered from the perversity by which the government both Over praises and ignores it and in doing so often creates policies that Are wasteful and counterproductive. In fact there is a form of Murphy a Law that asserts according to Alan s. Blinder economics professor at Princeton University a economists have the least influence on policy where they know the most and Are most agreed they have the most influence on policy where they know the least and disagree most  even Many politicians agree at least intellectually with economists on numerous issues. Their practical calculus however is different. The incentives for them Are to respond to two groups sloganeering opponents and Well financed special interests. The economists say they have won some victories especially since the late 1970s, when deregulation of airlines and trucking was launched along with decontrol of Oil and natural Gas prices. Then seemingly against All Odds came the tax Reform act of 1986 and the 1990 agreement to reduce the budget deficit Over five years. But this yes r. Congress May Well administer the ultimate humiliation ignoring what the economists say about both macroeconomic policy a the big picture on which they Are rarely agree a and the so called Micro issues such As the Wisdom of extending unemployment benefits on which they usually agree. This reflects both past expediency and election year politics. A a it a too late for sound economic policy a said Lincoln f. Anderson a former Reagan administration official now an economist for Fidelity management and research co. A now we re reaching for Quick  indeed Many insiders believe political mane vering will overwhelm economic analysis resulting in More incentives for current consumption and Little attention to raising investment in the future. It is an acknowledged problem that what will help the Economy in the Short run tends to be bad in the Long run. Why folks ask should a democratic Congress be expected to help end what they can Point to As George Bush a recession Why should they not succumb to a strategy that Calls for passing bad but plausible sounding legislation that will resonate on the stump and Force the president to choose Between their plan and a veto and Why should republicans already a diminishing minority in Congress eschew their own election year plan to Cut taxes for the ubiquitous Middle class amid the search for a Panacea a a policy that helps the Economy in both Short term and Long term maintains budgetary discipline and is seen As fair a the joint tax committee issued a warning. A one needs to be Clear about the ills to be attacked because a package of actions cobbled together could end up with individual elements working at Cross purposes to one