I 



r5- 



^ tended to be a wider discount on lower grades of cattle. This may offer 



feeders a better margin. However, the armed forces have been buying more 



"good" beef than "choice" or "prime." The civilian consumer demand is 



increasing rapidly, which will help hold the price of the "choice" and 



"prime" cattle near the price permitted by the ceiling on beef. But the 



demand of the armed forces will expand as rapidly or more rapidly than 



civilian consumer demand, so a wide discount between "good" and "choice" 



beef can not be expected. , 



I ^. 



Domestic demajid . The income of industrial workers is likely to 



continue to expand, but not so rapidly as in the recent past. We are now 

 reaching a point in some of the war industries where production will be 

 limited by the availability of facilities, skilled labor and raw materials. 

 Part of the limitation on the supply of available raw materials is cauaed 

 by the use of these raw materials in industries manufacturing good&v^or 

 civilian use. From now on v/e shail try to prevent consumer demrjid from 

 interfering with the war effort. A sample of what has taken place was 

 the order issued Wednesday by the War Production Board prohibiting the 

 use of Iron and steel in.mattressee after September 1, and in studio 

 couches, sofa beds and lounges, after November 1. The use of metal is 

 also prohibited in the manufacture of spring frames. This is only one of 

 numerous restrictions that will be placed upon the production of con- 

 sumers' goods. Nor is it likely that the American people will object to 

 these restrictions. We have ^ million men in the aj?med forces already, 

 and that number is likely to double in 19^3. According to government 

 statistics, there were '}h-,^6l,62^ occupied dwelling units in the United 

 States at the time of the 19^0 census. That means there were aoproxi- 

 mately that many families. Eight million men in the armed forces would 

 be approximately one man for every four families. The primary interest 

 of these families will be in the welfare of the armed forces — in their 



