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Information bulletin
(January 1952)

EUCOM dollars help economy,   p. [26] PDF (571.0 KB)

Page [26]

EUCOM Dollars Help Economy
APPROXIMATELY 25 CENTS out of every US dollar           rate of DM 3.33 per
dollar between June 21, 1948, and
earned by American military and civilian personnel   Sept. 30, 1949, and
subsequently at the rate of DM 4.20
with the US Forces in Germany between July 1, 1950,     per dollar.
and June 30, 1951, went into the foreign exchange hold-   The EUCOM comptroller's
report also pointed out that
ings of the German Federal Republic through the pur-    from May 1947, through
October 1950, US Personnel paid
chase of Deutsche marks in EUCOM finance exchange       out $3,893,919 in
MPCs for the purchase of non-duty
offices during the fiscal year.                         travel rail tickets.
Since Nov. 1, 1950, such purchases
Details of that valuable assistance to the West German  have been made in
Deutsche marks.
economy were contained in a report issued by Head-        US personnel spent
almost $29,000,000 during the
quarters, European Command, based on statistics at the  period concerned
for such items as EUCOM Export Taxi
EUCOM Comptroller's Office in Heidelberg.               fares and communications
services such as telephone and
The report stated that Americans with the US Forces   cable facilities through
the Deutsche Post. These pay-
in Germany (exclusive of HICOG) earned an estimated     ments were also made
with MPCs, which meant dollar
$237,594,000, after tax deductions, during the year ending  credits to Germany,
since the MPCs were convertible
June 30, 1951. Records indicate that during the same    into US currency
at the official rate of exchange.
year, US personnel exchanged $59,818,717 for Deutsche
marks~~ at th  ofiilrt'oxhne                          The over-all benefits
to the German economy through
private Deutsche-mark purchases by US personnel, and
Figures at the comptroller's office also reveal that  scrip payments for
services, amounted to approximately
Americans on duty with EUCOM in Germany spent al-       $160,000,000 during
the period covered by the comptrol-A
most 19 cents out of every dollar earned in EUCOM       ler's report.
for the purchase of Deutsche marks through finance
exchnge  ffies drin thethre  yers ededJune30, The sale of Deutsche marks
to US personnel through
exchange offices during the three years ended June 30,  official finance
offices is listed as follows:
1951. During that period EUCOM personnel were paid
$669,000,000 in dollar-backed Military Payment Certifi-   Army Finance OfficesandChaseBanksales
cates (MPCs), after tax deductions.                       American Express
Company sales ........ 31,024,633
They exchanged almost $127,000,000 of that amount                       
              Total:- $126,857,144
for Deutsche marks-an exchange which represented a        The approximately
$33,000,000 paid out of American
direct benefit to the German economy since the exchange  pockets for services
with dollar-backed MPCs, is shown
placed the same amount of American dollars at the       by the following
disposal of the Federal Government for the procurement
of needed imports which can be bought only with dollars.    Export Taxi service
Gales . ......... $19,406,009
Non-duty rail ticket sales ................  3,893,919
ThEUTSCHE-MARK PURCHASES by Americans in the                Telecommunications
charges  ......  9,277,585
D   period between the German currency reform in            Miscellaneous
 ......... ...........  93,433
June 1948 and June 30, 1951, were made at the official                  
             Total:- $32,670,946
The Second Armored Division, Combat Command A's
"Choraliers" give church music concert before German
Protestants from various churches in Mannheim gathered
in chapel at Wartburg Castle. "Choraliers" will make
other appearances throughout Germany.  (US Army photo)
THE COMPTROLLER'S OFFICE emphasized that no
Deutsche-mark purchases by EUCOM personnel from
authorized European Command exchange offices are
charged to occupation costs. Apart from the almost
$160,000,000 which benefited the German financial struc-
ture, other millions of dollar were contributory factors
in the over-all support provided by the presence of
Americans in Germany.
As an example of the benefits contributed by non-
appropriated fund agencies of the US Army in Germany,
the European Exchange System has expended more than
$33,000,000 in wages to German employees, $17,000,000
through procurement on the German economy and
$1,000,000 for construction and renovation. The more
than $51,000,000 in payments was made in Deutsche
marks, purchased by EES at the official exchange rate.
The agency makes payment for such items directly to
German employees, vendors and contractors.  +END

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