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More shortening . An emergency atllocatlon has "been made vhlch provides for a 

 k percent increase in the quota of fats and oils for use in shortening and cooking and 

 salad oils for the calendar quarter beginning October 1. The previously established 

 quota was 88 percent of average use in the base period 19i40-i*-l. The margarine qiiota 

 was left unchanged at 95 percent of 19^4 usage. 



Food allocations for overseas . The main items in the fourth -quota overseas 

 food allocations are meat, wheat, wheat flour, dried milk, small amounts of lard, eggs 

 euid considerable cheese. The United Kingdom will receive by far the greatest amount 

 of almost all these foods. Some will go to the Netherlands, Belgium, North Africa and 

 France. A small amount of wheat will go to Italy. A considerable fraction of the 

 shipments will go to the United Nations Relief and Rehabilitation Administration for 

 distribution. The amount of food being sent will not be anywhere near what the 

 countries ask for and will barely provide for a minimum standard diet if channeled 

 into consumer hands in the most effective manner, according to the United States Be- 

 p€u:tment of Agriculture. Part of this food will be items turned back by the army, eund 

 the UNRRA will also receive unused 8Lrmy rations for relifef distribution. 



Potatoes in surplus; eggs next . As a result of high yields on reduced acre- 

 age, the United States has a potato crop 15 percent above the ten- year prewar average. 

 Military needs are reduced, and potato growers in Maine were receiving about two- 

 thirds of parity for their crop. Growers demanded relief and the government has pur- 

 chased several million bushels of potatoes to get them off the market and is offering 

 nonrecourse loans at 90 percent of parity to growers who will store the potatoes. In- 

 asmuch as prices are not expected to rise substantially between now and next April, 

 government officials expect to buy about 60 million bushels. The outlet for this sur- 

 plus seems to be through schools and public institutions and throu^ sales at reduced 

 prices to steirch factories, canners and distillers. 



Egg production is about 55 percent above prewar. Cancellat.ion of military 

 and lend-lease contracts has reduced demand by about 12 percent. With larger meat sup- 

 plies in prospect, consimiers will eat fewer eggs. As a result of this heavy production 

 and decline of dememd, some plan will have to be worked out to support egg prices next 

 spring and some means found of disposing of the anticipated surplus. Even with prices 

 at 90 percent of parity, production probably will be maintained at a high level. Feed 

 supplies probably will be plentiful. 



Farmers in good financial position . A study by life insurance companies 

 disclosed that the Americeui farmer has emerged from the war period with nearly $2.00 

 in financial assets for every $1.00 owed. At the beginning of 19^0 assets were 5 lA 

 billion dollars, but total debts of the rural i)opulation were approximately 10 billion 

 dollars. At the steirt of 19^5, assets in the form of demand and time deposits, cur- 

 rency, U. S. savings bonds, crop receipts and investments in cooperatives totaled about 

 17 billion dollars, but total debts were only about nine billion dollars. At the begin- 

 ning of 19^0, assets were about 5 l/U billion dollars and debts of the rural population 

 were about 10 billion dollars. 



Snowball or merry-go-round ? The present maneuvering for higher wages by 

 organized labor and higher prices for agricultural products leeid one to wonder what 

 |flb^he outcome will be. Plans for higher wages on the peirt of labor seem to Justify plans 

 ^ror higher prices for the products of that labor and also for farm products. Therefore, 



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