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J^ Price ceilln/^g under heavy strain ,, Cohgrees is still battling over the 



^^ subject of food subsidies. The measure will probably come to a vote in the House of 

 Representatives .on November 22, The granting of the wage increase to coal miners on- 

 the pretext that they would take only 15 minutes for lunch and the approval of the 

 wage increase of between k and 10 cents an hour for certain railroad workers would 

 seem to be an entering wedge that might result in further inflation. All other labor 

 groups will think that they are entitled to increased wages. Farmers argue that 

 industrial workers are making such high wages that they don't need any government 

 subsidy, and any increase in wages makes the farmer's case that much stronger. How- 

 ever, the general consensus of opinion is that there will be no runaway inflation 

 daring the war, and that attempts will be made to prevent it in the early postwar 

 period. Probably the tactics used will be to fight heavy demands of pressure groups 

 for increased wages or prices as long as possible, make the smallest concession that 

 is politically feasible, eind hope that the war is over before the dike breaks and 

 the inflation flood overwhelms us. 



Protein feeds . The distribution problem in connection with protein supple- 

 ments has not yet been worked out. Last year the mixed-feed dealers contracted for 

 such a large portion of the oilmeal output that farmers had difficulty in Getting 

 hold of protein supplements except as they came in the form of ccmmercial mixed feeds. 

 That was objectionable to many farmers for two reasons: first, they felt that they 

 paid too much for what they were getting in the way of proteins, and, second, many 

 of them had plenty of carbohydrate feeds and didn't need anything but concentrated 

 protein feeds. They felt that they were obliged to pay a high price for the carbo- 

 hydrate content which they had at heme in cheaper form. This year, the mixed -feed 

 dealers are having difficulty getting hold of enough protein concentrates to take 

 care of their usual volume of business. In a few cases it was reported that mixed- 

 feed dealers have obtained oiljoieal processing facilities. It is also reported that 

 oilmeal processors in some cases have gone into the mixed-feed business, but the 

 mixed-feed manufacturers that do not have these connections are in difficulty. The 

 government has reserved the right to require oilmeal processors to set aside up to 

 20 percent of their output for government allocation in distress areas. To date 

 the government has not exercised this privilege. 



Lamb feedinf^ situation . The government reports that during October the 

 lamb feeding situation continued to indicate a rather sharp reduction from a year 

 earlier in the number of lambs and sheep to be fed during the present feeding season. 

 The greatest reduction has been in the western corn belt, where the wheat pasture 

 prospects were unfavorable. Some increases in lamb feeding are indicated for Illi- 

 nois, Minnesota euid Iowa. There was a shift this year in the com belt to purchases 

 of more feeder lambs through public stock yards, but a decrease in direct sales. The 

 unfavorable wheat pasture conditions and high cost of feeds, especially of hay, 

 caused a substantial weakness in feeder lamb prices recently, particularly in prices 

 of light lambs under 60 pounds. 



Farm employment . The November 1 farm employment in the country was about 

 2 percent less this year than on November 1 in 19^2, about 3 percent lees than the 

 1958-^2 average, and showed a slightly greater than usual seasonal decrease between 

 October 1 and November 1. The decrease is accounted for entirely by a drop of nearly 

 7 percent of hired employees. The number of family workers is slightly higher this 

 November than a year earlier. The United States Department of Agriculture accounts 

 for this increased employment of members of operators* families on the basis of (l) 

 patriotic appeals to such persons to help during the emergency; (2) dismissal of 

 schools in many communities this yesir to allow pupils to assist at heme in the har- 

 vesting of crops; and (3) the tendency of some farmers to get along as best they can 

 with such family labbr as there is available rather than to hire inexperienced help. 



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