• 



These huge savings form a backlog of a great "buying power whenever the 

 holders decide to spend them. It is unlikely that all these savings will "be spent 

 during the year or two following the war, but the sense of security that goes with an 

 accumulation of savings may cause people to spend their current income very freely. 

 Unless the owners of these savings refrain from using them until the output of civil- 

 ian goods increases materially, we could have euaother runaway Inflation, a temporary 

 demand for consumer goods which could not be sustained, and consequently wide fluctua- 

 tions in the demand for farm products. 



Argentina may trade linseed oil for fuel oil . Argentina is short of fuel 

 and has been all during the weir. Word comes now that an agreement may be concluded 

 in the near future whereby Argentina would trade us 500,000 tons of linseed oil for 

 250,000 tons of fuel oil. We need the linseed oil badly, but we do not have excessive 

 supplies of any type of fuel. During the past couple of weeks Secretary Ickes has 

 indicated that coal consumers in this area will be restricted to 80 percent of last 

 yearfe consumption on purchases made after March 31. Although it is expected that 

 fuel oil supplies will be more freely available after the end of the war in Europe, 

 it has not been possible for us to supply Argentina in the past. 



Japanese schools closed . All schools, colleges and universities in Japetn 

 have been ordered closed for a year, according to Radio Tokyo. Students and teachers 

 will be mobilized for war work and food production. The only exception was the first 

 grade of primary schools. 



GLJtwd 

 3/22A5 



