European Stars and Stripes (Newspaper) - February 21, 1992, Darmstadt, Hesse                                Friday february 21, 1992 the stars and stripes b Page 3 defense cuts could Cost 300,000 jobs Washington a slashing More than $100 billion from the military budget in the next five years could riot an additional 300,000 americans Olit of work the congressional budget office said wednesday. The Agency in a report requested by Senate Republican Leader Bob Dole of Kansas noted plans approved last year already Call for reducing defense spending by some $350 billion from 1993 to 1997. Based on those cuts about 329,000 jobs would be lost in the Overall Economy by 1995. President Bush in his state of the Union address proposed an additional Cut of about $50 billion in the next five years. Several members of Congress have called for at least doubling that figure. Defense cuts on such a scale would result in 645,000 jobs lost by 1995, the co said. A the substantial defense spending reductions being proposed will result in additional unemployment business failures and temporarily depressed communities in the areas around shuttered military bases a the study said. Dole and Senate republicans John Warner of Virginia Pete Domenici of new Mexico and Ted Stevens of Alaska released the report to bolster Bush Scase against deeper cuts. Among the proposed reduction plans in Congress Senate majority Leader George Mitchell of Maine and Senate budget committee chairman James Sasser d-tenn., have Dolfl a for a $100 billion Cut Over five years. Republican sen. John Mccain of Arizona is proposing a $119 billion Cut while sen. William Roth r-del., is asking for a $260 billion reduction. The co study also examines the in shipbuilder that manufactures the Davy a pact of defense cuts on three regions of the country a Southeastern Maine St. Louis and Monterey calif., Home of fort Ord. A representing those areas Are key democrats in Congress including Mitchell. House majority Leader Richard Gephardt a District includes part of St. Louis. House budget committee chairman Leon Panetta comes from the Monterey Region. Mitchell in a Telephone interview said the report is an a obvious political Effort against three democratic leaders in  the Senate majority Leader described the report which he said reached the obvious conclusions that closing facilities will Hurt local economies As a waste of taxpayers Money. The report according to Mitchell Cost $181,000. Closing Bath Iron works in Maine a Lac a guided missile cruisers and destroyers would Force 11,000 people out of work and increase the states unemployment by 1.7 percent the report said. Reducing military work at Mcdonnell Douglas in St. Louis would mean the loss of about 13,400 jobs and Many companies depending on defense contracting would go out of business the co said. Monterey is Home to fort Ord a military base already slated for closing. The result of the shutdown is significant because in 1990 the base generated $558 million in wages and salaries. The reports release came As sen. Robert Byrd d-w.va., the chairman of the Senate appropriations committee held a Daylong hearing on whether deeper cuts could be made. A we done to need to preen in the Mirror of glories past. The times in America today do not require super Hawks a a said a a cd. Exports help to chop deficit to 8-year Low Washington a americans Trade deficit improved dramatically in 1991, narrowing to $66.2 billion As an Al time High in . Export sales helped to push the deficit below the $100 billion Mark for the first time in eight years the government said thursday. The Sharp improvement came despite the fact that the year ended on a sour note with the december deficit jumping 42.3 percent to $5.94 billion. The december deterioration reflected figures on exports that fell by 2.2 percent and imports that Rose 2.3 percent. In other economic news thursday the labor department reported that weekly claims for jobless benefits Rose by 18,000 As 452,000 americans made first time visits to unemployment offices during the first week of february. Analysts said the increase which followed two weeks of declines showed that despite glimmers of an economic rebound americans labor Market remains under severe pressure because of wide spread layoffs. Economists said the december Trade performance could be an ominous sign for the future since it showed american exports falling for a second straight month. Many economists Are predicting that 1991 will be the High water Mark for Trade improvements for some time to come. They believe that stronger demand in the United states will Start pulling in More imports while weakness in some of America s major overseas markets will Cut into . Export sales. Some analysts believe that within two years the deficit will again be approaching the $100 billion Mark. The $66.2 billion Trade deficit for All of 1991 was substantially lower than 1990�?Ts deficit of $101.72 billion. It marked the lowest imbalance since the deficit totalled $524 billion in 1983. The next year the deficit shot up to $106.7 billion. It hit an All time High of $152.1 billion in 1987. Much of last years improvement reflected the effects of the . Recession which dampened demand for foreign goods. Imports last year declined by 1.5 percent to $488.06 billion. Car imports fell by $2 billion. Reaching out hands from several people in the crowd of thousands greeting Pope Paul ii in the capital City of Dakar reach out to touch the pontiff As he arrives at the Palace of senegalese president Abdou Diouf thursday. The Pope is spending four Days of his eight Day african trip in this Muslim nation before moving on to Gambia and  policy of holding checks draws fire by Kevin Robinson staff writer Jutta h. Ross believes that it takes too Long for a stateside Check to Clear her Community Bank. But officials at merchants Bank insist that a 10-business-Day hold is necessary for the Bank to operate overseas. The Issue is merchants policy regarding stateside checks. And that Issue has prompted criticism of the Bank a overseas banking practices that some say violate Federal regulations aimed at prohibiting such practices. According to Bank officials and a european come financial official the Bank is not violating Federal Law regarding timely Check processing. But some people such As Ross Arentt satisfied. She took aim at the Bank a Check holding policies in a letter to the stars and stripes. She asked Why merchants puts such a Long hold on checks deposited a in this age of electronic  Yvonne Wise a spokeswoman for the Bank a european Headquarters in Frankfurt said the institution sometimes needs up to 10 Days to process a Check because of delays associated with overseas locations. The hold is merchants Way of giving the Check enough time to move via plane from Europe to merchants Headquarters in Indianapolis and then electronically through the Federal Reserve system Wise said. Additional time is needed to return the checks by plane to the company a office in Frankfurt. A if we take a Deposit from a stateside Check we done to have that Money in our Bank a Wise continued. A if the customer does no to have the balance in his account to cover the amount we done to have the Money. Issuing Money without actually having it is not Good banking  Ross who lives in Walldorf Germany Wasny to the Only one questioning the Bank a policy. Master sgt. Richard a Wetjen of Worms Germany in a subsequent letter to the editor wrote a it would seem that merchants is being allowed to operate in violation of the expedited funds availability act the maximum hold that a Bank can impose is 7 Days for a no local  Congress passed the expedited funds availability act in 1987 to regulate banking policies that delayed funds to customers. Mark Scheidler a financial management analyst with the european Comdr a comptrollers office said the act has no overseas application. Because merchants is under contract to the defense department to manage Community Banks for the . Military in Germany Greece and the Netherlands the losses Are absorbed by Dod. Stateside checks normally take from three to five Days to Clear from Indianapolis to a Federal Reserve Bank and then to Frankfurt Scheidler said. But if a Check is returned through the system because of insufficient funds it can take weeks to Clear. Merchants Bank officials wont receive word that a Check is Good or bad Wise added until it is returned. A a we be had checks that did no to Clear due to insufficient funds a for up to a  the european banking coordinating committee monitors and coordinates banking operations in the european theater. The committee is composed of representatives from the . Military in Europe the Neucom comptrollers office and a representative from merchants Bank. A the letter to the editors concerns were addressed at the committees last meeting in january a Scheidler said. But . Air forces in Europe officials remain concerned about merchants policy. In a feb. 19 memo col. Thomas j. Stubblebine the commands director of financial analysis wrote that a we have requested a review of this policy with an Eye toward balancing customer service and operating  the statement said that Safe has told top air Force and Pentagon officials about its concern. Wise said that merchants Bank has received few complaints about its Check holding procedures. She said customers Are told beforehand a through Bank managers tellers and automated Teller receipts a that their stateside Deposit or checks face a hold of up to 10 Days. A we done to want people mad at us Quot she said Quot we Are just following prudent banking