Cabinet Meeting Minutes

CABINET MEETING, FRIDAY, JUNE 16, 1950 10:00 am McGrath absent Tobin absent Johnson absent Perlman for McGrath Early for Johnson ACHESON Recent English paper on position on sovereignty is a fool- ish document and in many respects is foreign to our views - but it has been magnified by the press and certain members of Congress out of all proportion to its seriousness. BRANNAN C. C. C. inventory is now at the highest dollar figure in our history $2,011,000,000. In October of this year will prob- ably reach 3 billion dollars. However unless we have bumper crops it will reduce as we go into next year. Inventory however is in storable commodities and will not result in heavy loss. It is a fact that such storage has stabilized our agriculture economy. THE PRESIDENT Asked if some of this inventory could not be used to stab- ilize the now rising prices of farm products. BRANNAN The law provides that inventories can't be put back in market unless it is sold at parity plus carrying charges plus 5%. With present indications of short wheat and corn crops the inventories on hand will offset any serious spiral in farm pro- duct prices. SAWYER Appeared before Senate Committee on R. F. C. investigation. Anderson a member of the Board is testifying against the President's program to re-vamp the R. F. C.