^ will depend upon the terms of final settlement. If the J)0 percent 

 increase in v/ages for the nonoperating unions is granted and we have 

 increases granted as requested for other unions threatening to strike, 

 these increased wages will add to cost of production and workers ' 

 incomes, "both of which influences will tend to raise prices. On the 

 other hand, an alternative outcome is for more strict government con- 

 trol of labor in the interests of uninterrupted production for defense. 

 This might be used as a further means of controlling prices through 

 the control of wages. 



Commodity prices ; Soybeans . Soybean prices have declined 

 drastically during the past two or three days, following government 

 crop estimate releases and improvement in the weather. In this area 

 the fields are waterlogged, and it would appear to take some time for 

 them to dry out. Contrary to some of the stories that were circulated 

 last week, there has been little shattering of beans, I examined some 

 fields last Sunday and found that although the stems were bent over, 

 the pods were not near the ground. There was very little shattering, 



and combining will be possible without serious loss, unless the beans 

 shatter worse after drying out than is now indicated. The pods were 

 damp and tough and the beans doubtless had a high moisture content, but 

 there was no sprouting or other signs of serious deterioration. Thurs- 

 day the "jrice of December futures declined more than May futures, indi- 

 cating that a large flow of beans to market during the next six weeks 

 is anticipated. 



Corn . Increase of 50 million bushels in the government corn 

 estimate tended to depress corn prices. All grains declined in 

 sympathy with soybeans. Although I have indicated all along that 

 there is a heavy feeding program ahead of us which v/ill support corn 

 prices, yet, it must be recognized that for the next few months the 



