Time Clock, Mar. 3, 1958

SLUMP WILL END by fourth quarter of 1958, predicts Leon Keyserling, onetime chairman of President Truman's Council of Economic Advisers. Keyserling expects economic activity for final quarter to run 3½% faster than 1957 pace, and this year's gross national product to hit $437.7 billion v. last year's $433.9 billion, with large gains in personal-consumption expenditures (up $3.6 billion) and U.S. Government buying (up $1.6 billion).

FHA-BACKED MORTGAGES, which found few takers only several months ago, are coming back into favor. Among the reasons: rise in home building and general loosening of mortgage money, which has dropped interest rates on conventional mortgages close to FHA's 5¼% level.

TOP TEN DEFENSE contractors, in latest compilation just issued by Defense Department (in millions of dollars):

1) General Dynamics $2,359

2) United Aircraft 1,979

3) General Electric 1,928

4) Boeing 1,924

5) North American Aviation 1,841

6) A. T. & T. 1,339

7) Lockheed 1,193

8) Hughes Aircraft 867

9) Douglas Aircraft 842 10) McDonnell Aircraft 816

NEW INTERNATIONAL FUND for loans to underdeveloped nations at generous terms (2% interest, 40 years to repay) has been proposed by Oklahoma's Democratic Senator Mike Monroney. Fund at first would get $300 million from

U.S. and $700 million from other World Bank members, would extend credits to applicants that cannot meet World Bank standards.

PROXY FIGHT to oust Penn-Texas Boss Leopold Silberstein will be attempted by three directors: Robert C. Finkelstein and Wallace S. Whittaker, who were elected by anti-Silberstein rebels last year, and Major General Charles T. Lanham, onetime Silberstein ally. They are trying to win over three neutral directors who swing power balance on eleven-man board.

RED TRADERS are busy signing deals with Latin America. Argentina will get heavy industrial equipment from Hungary, Czechoslovakia and Rumania, paying off satellites' debts for earlier imports of Argentine beef and hides. Brazil is considering $400 million Soviet trade agreement that could ease Brazil's coffee surplus.

SLICK AIRWAYS, one of earliest and biggest U.S. airfreight carriers, will shut down scheduled runs because of operating losses of $2,500,000 in 1957 (plus another $473,000 in January), will lay off about 500 employees and ground 14 planes. Slick's hope: a CAB subsidy.

BILLION-DOLLAR CLUB gained two new members, whose income topped that figure for first time in 1957: Travelers Insurance Companies and Equitable Life Assurance Society.

CAR DEALERS' PROFITS before taxes slipped to .7 % of sales last year v. 1.7% in banner 1955.