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A the governmental agencies involved should take steps to see that these 

 inequities are removed without destroying the possibility of attaining 

 the main objective. Farmers as a group should have no complaint with 

 prices limited to parity so long as output is not restricted either by 

 the federal agencies or climatic conditions. For most farmers, it is not 

 even necessary that parity prices should be available on all products 

 grown. For example the livestock producer and feeder is not so much 

 interested in parity prices on feedstuffs as he is in prj:'ity prices on 

 the products he sells, namely, livestock or livestock products. Hov^- 

 ever, the commercial grain producer would prefer parity prices on the 

 grain. During recent months the Increases in prices of livestock 

 products have more than offset the decreases in the prices of grains 

 in their effects upon gross national farm Income. ^ 



If prices of goods are kept at present levels and the queintity 

 of manufactured goods available for consumers is drastically curtailed, 

 there is going to be an enormous surplus of income looking for an outlet. 

 The expenditures by the federal government are increasing so very 

 rapidly that even after offsetting the decreases in expenditures by 

 Industries manufacturing consumer goods, the national income is likely 

 to continue to increase rapidly. Fixing prices at present levels and 

 distributing the goods by rationing will leave consumers, as a whole ^ 

 with consiaorable money which they will be unable to spend for 

 necessities and conveniences. The government is making a very strenuous 

 effort to absorb this excess income by means of encouraging voluntairy 

 purchases of government securities. If this oroves to be inadequate, it 

 will be supplemented by heavier taxation and possibly later by forced 

 purchases of government bonds. It is a little difficult to forecast the 

 nature of further developments. A number of months ago, 1^. Bernard 

 Baruch suggested very much the same program as Is now being inaugurated. 



