European Stars and Stripes (Newspaper) - June 11, 1992, Darmstadt, Hesse                                Thursday june 11, 1992 the stars and stripes c Page 15 Money matter americans consumer debt despite a slow revival from recession economists expect . Corporate profits to increase for the first time in four years. A consensus of the 50 economists participating in the monthly Survey conducted by Blue Chip economic indicators projects pretax corporate profits will jump 16.5 percent this year. The Survey was released wednesday. If they re Correct it would be the first annual increase in profits since 1988, when they Rose 14.1 percent. The following year amid relatively High interest rates profits fell 3.6 percent. They were Down 9.3 percent in 1990, when the present recession was officially said to have begun. Conversion rates following Are fixed rates at which Community banking facilities will sell foreign currencies to . Personnel for personal use through thursday German mark1.56 British pound1.88 dutch guilder1.75 greek drachma .186.4714 note the rates above apply within the Host country. Figures Are expressed in dollars to the British Pound other currencies to the Dollar following Are Interbank rates that fluctuate and should be regarded As the approximate value of the . Dollar to foreign currencies italian lira 1,206.50 turkish lira6,902.90 Spanish peseta.100.45 portuguese escudo  132.72 austrian schilling11.2475 saudi rial3.7495 Bahrain dinar0.37675 Kuwait dinar.0.2905 norwegian krone6.2480 danish krone6.1600 British pound1.8302 German mark1.5930 Swiss franc 1.4525 French franc.5.3703 dutch guilder1.7945 belgian franc32.75 Gold quote $337.75 an ounce Silver quote $4.05 an ounce new York Exchange new York up York Stock Exchange Stock Abbott labs inc Telefoni Damn Bristol Myersq Chrysler corp Fedl Nalt Mage fed Dot stores general motors Glaxo holdings Phiilip Morris Rwjr Nabisco hid Archer Daniels Merck amp co inc Citicorp waste mgt inc ban America the 15 most Active stocks in new composite trading on tuesday. Solos lost hot Chi. 4.440.500 27% unch 2.742,800 54% off % 2,180,900 64% Oil % 2,048,200 20% up % 2,017,000 58% of 2% 1,872,400 12% on % 1.787.500 43% off % 1.637.300 26% off % 1.625.600 74% on 2 1.577.300 9% Ott 1.522.500 24% off 1% 1.461.300 48% on 1,407,700 19% Ort 1.375.600 36 off 1.364.300 44 off i % american Exchange new York Iii american Stock exc Stock inti Corona pall corp Energy service sulcus computer us Bio science tubes de Acero a the 10 most Active stocks in Ivan corp spi holdings of Chambers Dev a Hasbro inc it Ange composite trading tuesday. Sates Laet net eng. 501.700 4% up % off % 412,600 24% 404,300 1% off % 286,200 5% off % 266,500 10% Oft % 256,000 5% off % 250,700 24% off 1 % 235,000 5% unch 232,200 7% off % 219,800 3 unch Dow Jones new York up Dow Jones closing Range of averages tuesday 30 industrials 20 transport 15 utilities 65 stocks High 3412 95 1390 88 213 95 1296 18 Law 3350 22 1355 38 211 63 1 182 63 close 3369 92 1360 80 21301 1189 01 change 011 34 21 011 27 84 Otto 18 Oft 14 26 posts biggest drop in years Washington apr re cession chastened americans remain cautious about borrowing despite an improving economic Outlook a government report indicates though they May be turning to forms of debt not measured in the report. Outstanding consumer debt in april recorded its sharpest drop in nearly 12 years the Federal Reserve said tuesday. It fell at a 6.3 percent seasonally adjusted annual rate to $723.6 billion. A a it san amazing drop. Obviously people Arentt borrowing Money a said economist David Wyss of Dri Mcgraw Hill a Lexington mass., forecasting firm. A a lot of people got scared of debt in the 1980s, with Good reason. The american Public got into Hock right up to its Little  Quot april marked the third straight decline the ninth in 12 months and the people Are becoming a bit More prudent economist David Wyss steepest since june 1980. It followed drops of 1.6 percent in March and 0.4 percent in february. A people arc becoming a bit More prudent a bit More cautious in their buying habits a Wyss said. A that does not Bode Well for consumer sales particularly the Yuppie Type sales in the 1990s. A for a change americans May Start living within their Means unlikely As that  also some people preparing their tax returns this Spring probably were reminded that the deduction for interest on consumer Loans had been eliminated in 1991, he said. In reaction Many people have turned to Home equity Loans which arc not measured by the Federal Reserve report and to automobile leasing which also does not show up he said. Outstanding Auto Loans in april fell at a 9 percent annual rate to $260.2 billion following a 2.1 percent increase in March. Revolving credit which includes credit cards Rose at a 3 percent annual rate to $245.9 billion following a 3.5 percent drop a month earlier. Bank credit Union Thrift and finance company Loans not secured by real estate fell at a 13.5 percent annual rate to $217.5 billion the 11th straight drop. Factors pinpointed in jobless rate surge new York apr seeking an explanation for weak Job markets analysts Are examining factors unique to this recovery that could have a Long term Impact on employment. The new factors Are gaining increasing attention because of the surge in the jobless rate to 7.5 percent in May from 7.2 percent in april despite evidence that the Economy was gaining strength. At this stage in past recoveries the expansion of Job opportunities would have gun to lower the jobless rate. Among the possible new factors three appear to be attracting the greatest attention a the attractiveness of corporate downsizing in which companies shrink i expenses and attempt to raise efficiency by Selling off unprofitable units and real estate and by paring payrolls to the Bone. A a reluctance to expand work forces because of the Cost of medical benefits. A a reluctance to hire Young workers because of increases in the mandated minimum wage Law especially when so Many arc unqualified. But other factors also May be involved including the gradual shift to an Economy based More on services than on the production of goods a change whose significance is intensified by the lower paying nature of service jobs. Ironically such negatives could in themselves cause further weakness in the Job picture by limiting the extent of the economic expansion. Consumer activity fuelled by jobs and incomes helps determine economic strength. Calling the present situation a the worst employment recovery on record a economist Lacy h. Hunt Points to a an unprecedented ongoing loss of goods producing  seeking an explanation for the poor Job Market Hunt chief economist for the securities firm Carroll Mentec amp Mcginly cites the Over borrowing of Consumers and business in the past 15 years big budget deficits that deprive business of capital and sluggish growth in the Money Supply. Gas guzzling . Drivers Moll coddled study says Washington apr the . Government and Industry Are spending hundreds of billions a year to subsidize the country a Auto driven appetite for fuel a world resource Institute study says. American Drivers pay less for gasoline than almost anyone in the world and spend nearly twice As much time on the Road As european Drivers. Americans use motor vehicles for 82 percent of their trips compared with 48 percent for germans 47 percent for the French 45 percent for britons and 42 percent for Danes the report said. An average Motorist now drives the equivalent of two round trips a year Between los Angeles and new York City. European countries Japan and other countries have higher fuel prices and better Public transportation systems said the reports co author James j. Mackenzie a senior associate at the privately funded group. The True Cost of driving automobiles should be several dollars a gallon for gasoline Mackenzie said. . Gas prices now Range just Over $1 a gallon which is cheaper than americans pay for almost any Brand of bottled water. Gas taxes and other fees cover Only about 60 percent of Road construction and maintenance costs in the United states the report said and other expenses not covered by motorists include $68 billion to provide such things As police Protection traffic management and routine Street maintenance. Free parking provided by employers and businesses accounts for about $85 billion in subsidy the report said. A this Benefit makes Solo commuting irresistible a it said. Motor vehicles account for about 25 percent of total . Carbon dioxide emissions. The report estimated that damage to human health material crops Trees and other vegetation causes an estimated $10 billion not paid directly by Drivers. The report also gave estimates of $100 billion in Market losses because of congestion $55 billion in various losses from vehicle accidents that Are not borne by motorists $9 billion from noise damage and $6.6 billion in vibration damage from vehicles. Business House approves Extension of unemployment benefits from wire reports Washington a the House defying a White House veto threat approved on tuesday a new Extension of jobless benefits of up to 26 weeks. Democrats said their Bill which would Cost $5.8 billion Over six years could help More than 1.5 million Long term jobless americans who would otherwise exhaust their benefits beginning saturday. Those payments currently average about $170 per week. The measure was approved 261-150. Across the Capitol Senate finance committee chairman Lloyd Bentsyn a Texas said his panel would write a Bill today similar to the House democrats measure. Airline files antitrust suit new York a the airline fare wars moved to Federal court As Continental airlines filed a lawsuit charging american airlines with engaging in predatory pricing to drive its weaker rivals out of business american denied the charge saying tuesday that it a Only been seeking a pricing system that will allow it to turn a profit. Continental in . District court in Galveston Texas accused american of a predatory acts with the direct intention of eliminating Competition from the air transportation  americans recent fare moves will not enable it to turn a profit unless one or More rivals Are grounded Continental claims. Continental which filed the suit late monday said it was seeking triple damages permitted by Federal antitrust Law and asking for a court order to Stop american from engaging in unfair pricing