-3- 



preparing to order packers and butchers to trim fr,t more closely from 

 the carcasses of meat animals and to curtail the fat content of sausa^re 

 and other prepared meats. They are also to remove kidney and other fatE 

 from beef, mutton and lamb for rendering before Scle. This order is not 

 expected to affect the price of meat animals. There may be some adjust- 

 ment in the price of the retail cuts because they will be virtually all 

 lean meat* 



Stora,o;e facilities . As the new whec.t harvesting season . ' 

 approaches, no solution has been worked out for the very tight storage 

 situation that is likely to develop. Terminal elevators are heavily 

 loaded, and there is now some talk of regulating shir-ments of cash grain. 

 Farmers will be urged to store as much of their wne^.t on the farm as 

 possible until the congestion can be relieved. 



Income taxes . One means to help soak up the extra I7 billion 

 dollars of income above the amount that can be spent for goods and 

 services at present orices and the amount now being taken for taxation 

 and estimated sowings is by increasing taxa.tion. This is a problem on 

 which the House ways and means committee has been working for some time. 

 A most recent suggestion has been that of lowering individual income 

 tax personal exemptions for married couples from $1^00 to $1200 and for 

 single persons from $7^0 to I500, leaving unchanged the $^00 credit for 

 dependents and also leaving unchanged the 10 Per cent credit for 

 individual earned incoms up to $1^,000. This is not far enough along 

 to speoJ'i vjith assurance, but the lowering of personal exemptions is a 

 probable substitute for federal sales taxes. 



?rice ceilings . Today (Friday) eleven district meetings are 

 being held under the auspices of the state civilicji defense council to 

 explain to consumers the provisions of the recent order of the Office 

 of Price Administration which on May 13 places a ceiling on retail prices 



