t 



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corn prices unless some further restrictions are placed upon prices of 

 animal products. 



The war situation ^ There have been no outstanding develop- 

 ments in the war situation during the past week that affected prices of 

 farm products. It is quite possible that future developments may be 

 more favorable to the United Nations than was earlier anticipated. This 

 does not mean that all nev;s will be favorable. The French situation is 

 critical. However, recent developments indicate substantial increases in 

 the strength of the Allied Nations, largely as a result of aid being 

 furnished by the United States and unexpected strength on the part of 

 Russia. It was rumored that Italy would be glad to quit if she were 

 not actually occupied by German forces. Peace feelers are also coming 

 from Japan since she has obtained temporetry control of the entire East 

 Indies, the Philippines and the mainland of southeast Asia. This has 

 little bearing upon the immediate outlook, because it is obvious that we 

 would be unwilling to permit Japan to retain all this loot. As far as 

 the war is concerned, the pattern is pretty well fixed for the United 

 States for months to come. The only effect current developments are 

 likely to have upon prices is psychological, that is, extremes of 

 pessimism and optimism. It would not be surprising if vie have passed 

 through the most pessimistic stages. 



Domestic demand . Industrial production continues to expand. 

 That means workers will have more money to spend but less consumer goods 

 available for purchase. Under these circiimstances there is bound to be 

 continued pressure on the prices of scarce products. Because of this 

 pressure President Roosevelt is expected to initiate a drastic anti- 

 inflation program, one feature of which will be to freeze the prices of 

 about 70 pe37 cent of the nation's foodstuffs. It is anticipated that a 

 general order fixing maximum wholesale and retail prices will be issued 



