"^ its product at a profit at the ceiling orice, the industry would be 

 subsidized by the G-overnment, and the price to consumers would be 

 prevented from rising above the present ceiling. 



The danger of inflation is quite real. The income of consumers 

 is lil^ely to increase very rapidly as the Government spending for war 

 purposes increases even though other types of industrial production are 

 drastically curtailed. One estimate indicates that the spending for 

 armaments in July, 19^0, was $225,000,000 a month; in 19^1, $1,200, 000, GO-. 

 a month; in 19^, $^,500,000,000 a month; and that in July, 19^3» it may 

 reach $5,000,000,000 a month. Along this line, Jesse Jones, Secretary 

 of Commerce, declared that "American people will have over ^0 billion 

 dollars more income in 19^3 than the value of things for which the money 

 can be spent." This is not -nly tho rcGult of the great expansion of 

 expenditures for armaments, but also the result of a very severe con- 

 traction in the quantity of manufactured goods available to consumers. 

 The war effort will take an increasingly large per cent of many types 

 of raw materials so that little other than foodstuffs and bare essentials 

 will be available for consumers to purchase. Of course, this means that 

 consumers could well afford to pay full parity prices for all kinds of 

 farm products; in fact, their demand for foods will probably be quite 

 strong, and G-overnment price control will be tr.e only factor that vrill 

 hold prices of many foodstuffs down. 



G-rain prices . The July 1 estimates, released July 10, indicate 

 the probable production of major crops as follows: 



19^2 19^1 

 (million bushels) 



Corn 2 62^ 2 673 



Wheat 90^1- ^kG 



Oats 1 303 1 176 



Barley 405 359 



( Villi lion acres) 



Soybeans 1^.2 10 



