-5- 



meal at fix^d levels. Presumably the individual processing compauiies 

 may choose "".he contract under which they wish to operate. 



Inflation control s As a result of the President's recent 

 radio address in which he called particularly for Congressional action 

 to revise the ceiling levels at which prices of farm products might be 

 controlled, and some stabilization of wages, it looks now as if the 

 Congress were willing to delegate to the PresiTent power to use any 

 method he sees fit to bring about these objectives. These items have 

 been touchy ones for the Congress to handle, and it seems they are 

 willing to let the President handle them. He probably would fix the 

 ceiling prices on farm products at parity or some recent price— which- 

 ever were higher — as he indicated in his radio address. Under these 

 circumstances no reduction would'be expected in the prices of livestock 

 products other than reductions that might be caused by congestion in 

 the market as a result of heavy shipments during seasonal peak months. 

 The U. S, Department of Agriculture anticipates some trouble during 

 December, January, and February in connection with hog marketings. 

 The demand for hogs would seem to Justify the ceiling prices, and it 

 will be to the farmers' advantage to market their hogs evenly enough 

 to prevent any substantial price' declines caused by congestion in the 

 market. 



The primary objective of all this control of prices of farm 

 products and wages Is to prevent inflation. Several methods that have 

 been used have been helpful, but they were not adequate to prevept 

 further inflation. Prices have been partially stabilized by the- price 

 ceilings that have been placed upon a large fraction of commodities 

 used by consumers. Savings have increased, and money that goes into 

 government bonds leaves .the consumer market. Congress is still 

 working on a tax bill, and the Senate version is much more drastic than 



