-3- 



if the cattlemen will spread their shipments out over the next few months. They do 

 not guarantee to furnish all the cars needed in October if there is a heavy concen- 

 tration of shipments then. 



There has been a reduction in feeder cattle prices recently vhlch has in- 

 duced more shipments to com -belt foedlots. The demand has been quite limited, but 

 some of the larger feeders have started buying, and it is generally believed that 

 with the spread widened between stocker and feeder cattle and good fed stuff there 

 will be a rather heavy movement to the feodlots as soon as foodors feel assured of 

 a good corn crop. 



Coi lings on alfalfa hay . The Office of Price Administration announced price 

 ceilings on alfalfa hay on Juno 29, They gave their reasons for the price ceiling, 

 "To curb mounting prices of alfalfa hay and to prevent resultant price rises of such 

 essential conimoditloB as livestock and livestock products." There have been price 

 ceilings in eight western states and part of Texas. The now regulation places dollar 

 and cents ceilings on all levels fi*om the grower through the retail dealer. • For the 

 area that includes Illinois, Iowa, Indiana, Wisconsin and Missouri, the cciilng price 

 to the producer will be as follows: May to October inclusive, $20.50; November, 

 $21.00; Docombor, $21.50; January to April inclusive, $22.00. 



Taxes. In looking ahead to the postwar period, the major effort of the 

 government will be to take such stops as will bo necessary to prevent a collapse in 

 employment, payrolls and prices. It is expected that the federal dobt will approxi- 

 mate $250 billion, that the annual federal budget will have to be approximately $20 

 billion and that any concessions in the form of reduced taxes will come first in 

 those items in which heavy tsixes have a tendency to prevent the flow of capital into 

 new and risky businesses. Concessions to individual tax payers probably will come 

 later and in the form of reductions of excise taxes and the elimination of the 3 per- 

 cent victory tax. Other taxes on individual IncomBs probably will not be greatly re- 

 duced except for the 5 por cent victory tax, at least for a year or two after the end 

 of the war. Probably there will be a tendency to tax least those individuals who are 

 obliged to spend practically all of their income as living expenses and to tax heavi- 

 est those individuals a large fraction of whose income would be saved. Evidently 

 there is a feeling that sufficient funds will be forthcoming for the promotion of 

 business activity without offering special inducement to individual savers. There 

 has been some indication in the postwar planning activities of local ccnnnunitles that 

 funds for pump -priming purposes to be furnished by the federal government sire expected 

 immediately after the war. It is doubtful if such a policy will bo followed. The 

 first objective probably will be to balance the budget. 



Var money conference . An international money conference is being held at 

 Bretton Woods, New Hampshire. The principal object is to work out some sort of sta- 

 bility in the postwar currency values and exchange rates. The secondary object would 

 be to use money as a measure of preventing severe crises during the postwar adjustment 

 period. Under the plan being studied countries needing help could obtain it from a 

 special stabilization fund or money pool. Tho money pool would bo about $8 billion, 

 of which the United States would contribute $25- billion and Britain $l■^■ billion. ' 



Many nations will be bankrupt at the end of tho war, Tho Japanese yon and 

 tho German mark probably will bo practically worthless. Already tho Chinese currency 

 has greatly depreciated in value with a very wild inflatidii in progress. There is 

 also inflation in Grooco and other countries. The heavy debts of all countries will 



