European Stars and Stripes (Newspaper) - August 28, 1994, Darmstadt, Hesse                                Page 12 r the stars and stripes Money matters sunday August 28, 1994 shown below Are the highest Dollar Exchange rates for the week of aug. 22 257 1994 1989 belgian franc one Dollar would buy you 31.92 35-68 1994 i 1993 i my Hembd a hmm dutch Guilder one Dollar would buy you 2 21 1.69 1994 i 1993 1989 French franc one Dollar would buy you k aft 6.625.30 5 88 1994 1993 greek drachma one Dollar would buy you 235.05 230.38 168.83 italian lira one Dollar would buy you 1,574 1,599 1994 1993 1m9 Spanish peseta one Dollar would buy you 129.15 w.7o 12275 to i 1t 33,900 turkish lira Dollar would Duy you m,764 changes in credit plan May raise cafes rates by Mark Kinkade staff writer changes to the military Exchange cred it plan May mean customers pay More in Terest but the plan is still cheaper than charging on commercial Bank cards and retail charge  thursday the army and air Force Exchange service is switching in Terest rates on its deferred payment plan accounts from a fixed 12 percent interest to a variable rate based on the National prime interest rate. Cafes officials announced the change in july. Under the new program the Exchange service will add 4.75 percent interest to the prime rate said George Derricho cafes Europe chief of finance. As the prime rate climbs so will the App inter est rate. Initially the rate will stand at 12.5 percent of the average monthly bal Ance Derricho said. However this variable interest rate will never fall below 12 percent the current interest rate charged to App customers Derricho said. In essence the change to a variable in Terest rate passes the Cost of the program Back to the customer. By raising the amount charged for assuming a debt Derricho said. A current customer in the program automatically accepts this new method when he or she makes a Purchase after wednesday. The prime interest rate is the base rate on corporate Loans posted by at least 75 percent of the nation s 30 largest Banks. As of last thursday the prime rate stood at 7.75 percent according to the Wall Street journal. The proposed 4.75 per cent addition to the prime rate would have brought the App interest rate to 12.5 percent thursday. Compared with most Bank and retail credit cards the cafes plan is far cheaper Derricho said. For example discover card a Sears owned Bank card charges 18 percent variable interest. Visa credit card rates vary by Bank or company offering the card. However most credit plans under visa charge be tween 15 percent and 18 percent on an. Cafes Navmeet schedule customer owes cafes $1 ,600, which a x. Monthly fixed rate of 12�/o $54 variable rate 12,5% 54 variable rate 13% 54 variable rate 14% 55 outside retailer at 19% 59 \ v a i  Sulla juju a Jitu 7 he a ? f 0 a a a " Al he or she repays in 36 payments. Total of int Eft additional payment paid Untaro to. 12% $i,8d4.49 $284.49 1,899 86 299 86 1.37 1,91564 315.04 30.55 1,938.31 338.31 53.82 2,063.30463.30 178.81 source cafes average monthly balance. Major retailers such As . Penney Montgomery Ward and Mervyn s charge rates Between 17 percent and 21 percent according to company Billing statements. Sears charges 18 percent. Our variable rate has always been better Derricho said. Over the past 15 years our rate has been at 12 percent while others have charged 18 to 21 per  although cafes has offered App accounts for about 15 years worldwide use of the accounts did t begin until last year when the service discontinued its Home layaway program and extended the App program to stateside exchanges Derricho said. We were looking for the Best buy for the customer Derricho said. They were telling us that having two programs was confusing and muddled so we dropped the Home layaway and upped the available credit to customers. We also opened the credit plan to family Mem Bers with  cafes also has a regular layaway plan that lets customers Purchase Mer Chandise Over time with no interest charge but prevents them from taking an item Home until it is paid for. The explosive growth of the App pro Gram prompted the move to variable in Terest rates Derricho said. In 1993, cafes Europe posted approximately $237 million in App sales is Derricho said. Before this year the Exchange service used its own funds to finance the credit program. But the enormous use of the program prompted cafes to borrow Money from Banks to cover the Cost of extending cred it. Most major retailers and credit card companies borrow Money for credit pro Grams Derricho  change also could mean More Money for morale welfare and recreation funds Derricho said. In 1993, cafes contributed $212 million to the military s morale fund. Since 1984, the company has contributed More than $1.7 billion to the fund. The variable interest rate on accounts Means the service won t use funds ear marked for mar to cover the Cost of credit. Each cafes program is structured to at least cover Cost Derricho said. Now we can cover our operating costs and continue to support the  cafes announced earlier this sum Mer that it would lower the credit limit for pay grades Al through e-4 to $500 for a six month probationary period. The Exchange service said the change was prompted by a concern among com Manders that the service members in the lower pay grades were incurring too Man debts. Contributing to this report staff writer Ron Jensen i Nurnberg Germany eased inflation fears boost stocks 51s by the Washington Post the Stock Market awakened from its summer slumber and pushed the Dow Jones Industrial average up 126 Points last week. Many investment strategists Are saying the Economy is growing nicely with Little inflation and that should translate into a Long period of Good corporate profits. Friday s 51-Point rally in the Dow on top of a 70-Point gain wednesday -. Was sparked by another report indicating that the economic recovery is slowing to a More sustainable Pace one that is less Likely to trigger inflation. The Commerce department report said the Gross Domestic product the broadest measure of the Economy s growth increased at a 3.8 percent annual rate for the second Quarter of the year a number that was revised from the original estimate of 3.7 percent. Investors had forecast an even higher rate. In the logic of the Stock Market what seems to be Good news a roaring econ omy actually can depress investments because of the inflation that can accompany fast growth. Inflation eals avs vat the future Stream of profits dividends and in Terest income to owners of capita. So when the Gap figure came in Ai 3.8 percent Friday rather than a widely expected 4. Percent i Votor celebrated by buying the pm closed at a i 01 Dow Jones new York a Dow Jones closing Range of averages Friday High Low close change3903.38 " 1621.99189.8930 industrials20 transport15 utilities 65 stocks. 3836.69 3881,05 up 51.16 1598.07 1614.40 up 15,41 187.06 188.44 up 1.45 1340,15 1318.63 1332.5.9 up 15.05 new York Exchange new York a of Ott 10 most Active feeding nationally Friday. Nam Amdahl   it Muc Patari eng sve Toter tend sales closing pries and net Chang american Stock Exchange issues. Volume 1,787,200 867.100 847.800 718,200 700.900 627. Too 503,600 427,200 33- 900 339.500 47 lift a Ftp. A v4 5h h 33 unch 12v4 h4 Tunch 20h unch 15h h 35 2h american Exchange new York a sales 4 . Price and net change of the 15 most Active new York Stock Exchange issues trading nationally Friday name   s ism  Ford motor Sec Chi Gene Ted Deq Luiey pot Omel  West Hel volume 5, 689,500 4.849.000 4,160,000 3.999,000 3,987500 3.523.500 3.521,400 3,420,700 3,318,500 3.180,200 3.115,700 2.727.700 2,806,800 2,426.300 2,419,700 list crag. 6tt h 96v i 65h a 38h v4 69h i 58 /4 1vi 5w 1h 30h to 18k it 50v4 1k 24vi v4 20v v4 24h i 44tt h 13v4 a it was just such a mild deceleration in economic growth that the Federal re serve had m mind when it raised Short term interest rates by half a percentage Point. When the fed Nuth jes Short term rates higher the move tends to reassure investor that inflation will be forc Sutky in the Long run and encourages them to lower the Long term rates they set each Day on the Wall Street Bond Market. I think the fed should be pretty Happy right now said David Wyss an economist at Del Mcgraw Hill inc. We Are seeing an economic slowdown that is very similar to soft landings in the  some analysts however forecast a new downturn in the Market before a pickup next year Thomas Mcmanus Stock strategist at Morgan Stanley & co., fears that the recent interest rate increases by the fed will slow coir under demand in the Short run. He look for a better buy Opportunity Down he Road