yields are obtained for all oil producing crops, it is difficult to sec 

 ho^xT soybean prices could be much higher next fall than is indicated by 

 the present price of October futures, although there is talk of increased 



shipments to England. 



Inflation. DurinKC recent months orices of farm products have 

 not risen appreciably, but the cost of living and wholesale prices in 

 general have risen. There is a very definite tlireat that inflation 

 will result from the enormous acceleration in government spending that 

 is getting under way and that is expected to continue. It is evident 

 that official Washington is aware of the oossibilities and available 

 means of preventing inflation. It is not so clear though that proper 

 steps will be taken or that inflation will be prevented. Congress sug- 

 gests the procedure of fixation of prices, including wages and profits. 



The administration, including: the President, Secretary of the Treasury, 



Production 

 and the V7ar /Board, does not favor the plan proposed by Congress. Part 



of the administrative group prefers heavy taxation and enforced buying 



of government bonds, but the most recent newscasts indicate that the 



President has opposed forced savings in the belief that voluntary -our— 



chases of government bonds will be an adequate supplement to the tax 



the 



program. The President and Secretary of/ Treasury 6.c not favor a sales 

 tax; Congress does. In spite of the importance of the method to be 

 used, it is difficult to forecast what the outcome will be with such a 

 division of opinion between the influential groups in Washington. To 

 date ad.equate steps to prevent inflation have not been taken. 



Even if we do have inflation, it will be difficult to fore- 

 cast the path it will take. Presumably a lot of prices would be fixed 

 arbitrarily, and price fixing would be supplemented with rationing. 

 The extra income might then be spent for nonrationed goods or services, 

 including amusements, or it might be used for investments. In that 



