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ing prices. Government purchases of large and increasing 

 amounts of food for Lend-Lease and rehabilitation have a 

 strong upward influence on farm prices. Any force that de- 

 creases the supply of food in this country is a factor tending 

 to raise farm prices. 10 The net effect of these various govern- 

 ment policies is toward higher prices. 



Among the many factors affecting prices, there is not one 

 that points to stable or lower prices. In the United States, as 

 in the rest of the world, the most important forces affecting 

 prices are changes in supplies and demands for commodities. 

 The available supplies of commodities are short, and the de- 

 mand for these commodities, relative to the demand for dol- 

 lars, is high. 



It would appear that the forces making for higher prices 

 in the world, in the nation, and in the food industry outnum- 

 ber and outweigh those tending to depress prices. 



10 The government recognized this principle when it tried to raise farm 

 prices by the scarcity program under the AAA. 



