Show economic highlights during may bu business stood tit at 75 on tile tho federal reserve boards index of activity in ili 1037 it aver used aged that incan it has declined about one third which Is a terrific drop for so short a period of time it also means that the gov ern ments revenue estimates have been thrown clear out of kilter it la 19 said that tho the new tax bill Is ft a hica icca oure budget director hell bell under I 1 by senator li alley has stated tuat that tills estimate was based on the december outlook business hiis well down then lilt nowhere near as aa far down as it la Is now and llie lie outlook for the future was materially better the consequence iti Is according to informed opinion that tho the must ie bo saved by at least and probably a good deal more to get a true picture of what aliat the measure is likely to produce result declining ro venues plus the pump endeavor would seem to to inako inevitable a greater increase in ili tile tho national debt than was anticipated ci el apparently the only way to prevent this thia would ho be to levy now or Iti higher ghee taxes but there them Is ho io am alin rut 11 in a congress facing nit nil election aar ear for that A con census of vit various rions estimates till intes places the deficit for the fawal year beginning july 1 at ap lowest deficit estimate estIl liate la Is that lulled by the budget bureau 3 Ilig highest hest Is tile the estimate est nate of senator the faced by tho the treasury ivere vividly indicated a short tinie time back by secretary margen who la Is now regarded as one no of the most conservative of the cabinet Ca billet officials and who was wag recently congratulated oven even by so BO strong an op opponent of spending ng as senator byrd fori for tho the excellent job lie has been doing tile tho secretary said tile the treasury Is on a 24 hour basis and we try to nice meet t these very difficult situations a they arise all I 1 can say 1 la na of today I 1 think we lave have met them thein what wo we call do in the future I 1 do not know till wild said paul palli mallon illation 1 appeared to be a forthright and Fien sensible sible statement of the real outlook tho the outlook tit in other words la 19 in the me laps of tile tho gods expectation Is that the white 11 pump priming bill will final finally y go 90 through it in just about its original form forin tho presidents control over congress though far from froin absolute has by tile the wins whis of administration back backed ed can 4 in the tie oregon and florida prini arlea though tile the new deal got n R setback in and ly hy tile tho publication of a survey made by fortune which indicates tile the odd fact that tn ill spite of tile the new depression delnes slon tho Is almost as I 1 fla as it ever was for the last week mr far which tills column lias has statistics the business busine index showed a very slight rifa so slight that you abad to look very carefully at tit alio graph to tc see 1900 it immobility lias hns characterized bush iness ll lIs for some borne time with nil gains and id losses when seasonal sens onal adjustment 8 t Is 14 de insignificant 1111 week weck thinks that the main at factor working toward revia ul al la 19 1 9 the continuance of consumption a at t a higher rate than prodoc aton in tho the steel industry for example exa niVIe operations aro are at 30 per cent of capacity while consumption la is between 10 40 and 45 per cent ot of capacity ahw means that existing inventories of the tire nrc being rather rapidly used up and that stronger buying buu develop dc celop 0 if baseness ba siness Is to aik oik rato at all much less improve the automobile industry Ls is very much in ili the doldrums and recently toti touched ched it new post october low manufacturers a are reported to nave have largely di discarded bearded platis plans for extensive changes chang ts and tit in 1039 1939 cars cara the now new cars when they couto come out lit in the fall will be ba about tile the same saine as years which of itself will slow sales salea the houie building program gotten underway yet some think little will conle come of it others are arc extremely optimistic and feel that greatly stimulated residential construction st will lead industry into better tf illes riia has haa it a great number of applications on haud baud but it Is bell believed eved that mat sty several eral months must lust ensue before such actual work will get underway ono interesting fact indicative of tile state of sentiment la Is that the word recession Is being used lew leay aud le less to describe current conditions dit ions and the word depression wore more and more inore this la Is truo true of newspapers newy papera and andt individuals vi kven the most sang sanguine lible no longer regard the as a minor matter which will lo le L e amort ly taken care of by tw the ineluctable pull of a longtime long time recovery movement tho the feeling grows that wo we are in as aa potentially serious a position now as in 1030 A glanco glance over a number of forecasts by financiers and produces the prediction that summer will bo be poor that some orne improvement pro bould start about lator 1 r day and during tile the fall especially in consumers consume rW goods industries |