^ by the Office of Price Administration next Tuesday. The Office of Price 

 Administration has already conferred with representatives of the food 

 trades, and it may be that rationing on a much larger scale will 

 accompany the fixing of price ceilings. Ceilings have already been 

 established on cane sugar, wholesale pork cuts on dressed hogs and on 

 fats and oils, including cottonseed oil, lard, soybean oil and peanut oil. 



With steps taken to prevent a rise in the cost of living, a 

 stronger effort can be made to prevent rises in wages. It looks as if 

 we are headed for more and more controls of all kinds, but it seems 

 clear that agriculture will not be asked to make any more sacrifices than 

 the other population groups. With favorable growing conditions this 

 summer and a large volume of livestock on hand, farm income will probably 

 increase in 19^2 over 19^1» 



As to the probable anti-inflation program, the proposals made 

 to date include some or all of the following: 



1. Freezing wholesale and retail prices, particularly of 

 foodstuffs and scarce manufactured goods. f 



2. Freezing the higher brackets of salaries and wages. 



3- Rationing goods (this goes with price fixing of scarce r 

 goods), 



k. Heavier taxes, particularly excess profit taxes, individual 

 income taxes, probably more excise taxes and possibly a sales tax. 



5» Heavy pressure to get people to buy government bonds in 

 amounts up to one-tenth of their incomes. 



6. Forced savings, that is, required purchases of government 

 bonds. 



There is a wide gap betvjeen the current or anticipated national 

 income and the amount of goods available to income receivers at present 

 prices. It is this gap that the government is trying to close by removlnf 



