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ARCHIVES SERVICE" RECORDS 'MATIONAR AXO get
2 -
(3) Mullification of the program adopted last spring to reduce
livestock and poultry numbers so as to bring them into aligament with
our feed supplies. This program consisted of reduction of livestoek
production goals by the Department of Agriculture and a narrowing of
margins between prices of live animals and feeds through increases in
grain eeilings. The first effect of these amendments would be to dis-
courage liquidation of livestock and poultry and perhaps even to encourage
expension of hog production this fall. Later a disorderly liquidation of
livestock and poultry would be inevitable as grain supplies became even
scarcer and grain prices rose further.
(4) Substantial increases in the prices of bread, and hakery products,
cereal products, and other processed grain products to reflect the large
increases in grain prices. Increases in prices of fats and oils, competi-
tive with fats and oils from grains and meats, would also occur.
(5) A substantial increase in the cost of living and a wage-price
spiral. The marked increases in all these important food products would
of thenselves raise the food bill of workers by over 12 per cent and the
total cost of living by at least 5 per cent in the next three or four months.
This additional 5 per cent or more, resulting directly from these amendments,
would be enough when added to the few per cent by which the cost of living
will otherwise increase, to precipitate another round of general wage increases
and start a wage-price spiral.
(6) Danger of curtailment of United States shipments of grain and food
for famine relief. Our commitments for famine relief could be filled only
if appropriations for them were greatly increased, if the procurement officials
could in fact bid enough grain away from the competing domestic users, and if
political influences did not force a reduction in purchases for famine relief.
The most probable result would seem to be a substantial reduction in our
shipments.
11. Explanation of results
There are two basic facts that are fundamental in explaining why the
widespread and disastrous results noted above would occur:
(1) The grain and feed shortage is so acute that we do
not have enough grain and feed to support our present livestock
and poultry population assuming that reasonable quantities of our
grain go into the other grain using products and that we meet
reasonable commitments for famine relief abroad. There must be a
substantial liquidation of our live animal and poultry population.
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"ocrText": "the\nARCHIVES SERVICE\" RECORDS 'MATIONAR AXO get\n2 -\n(3) Mullification of the program adopted last spring to reduce\nlivestock and poultry numbers so as to bring them into aligament with\nour feed supplies. This program consisted of reduction of livestoek\nproduction goals by the Department of Agriculture and a narrowing of\nmargins between prices of live animals and feeds through increases in\ngrain eeilings. The first effect of these amendments would be to dis-\ncourage liquidation of livestock and poultry and perhaps even to encourage\nexpension of hog production this fall. Later a disorderly liquidation of\nlivestock and poultry would be inevitable as grain supplies became even\nscarcer and grain prices rose further.\n(4) Substantial increases in the prices of bread, and hakery products,\ncereal products, and other processed grain products to reflect the large\nincreases in grain prices. Increases in prices of fats and oils, competi-\ntive with fats and oils from grains and meats, would also occur.\n(5) A substantial increase in the cost of living and a wage-price\nspiral. The marked increases in all these important food products would\nof thenselves raise the food bill of workers by over 12 per cent and the\ntotal cost of living by at least 5 per cent in the next three or four months.\nThis additional 5 per cent or more, resulting directly from these amendments,\nwould be enough when added to the few per cent by which the cost of living\nwill otherwise increase, to precipitate another round of general wage increases\nand start a wage-price spiral.\n(6) Danger of curtailment of United States shipments of grain and food\nfor famine relief. Our commitments for famine relief could be filled only\nif appropriations for them were greatly increased, if the procurement officials\ncould in fact bid enough grain away from the competing domestic users, and if\npolitical influences did not force a reduction in purchases for famine relief.\nThe most probable result would seem to be a substantial reduction in our\nshipments.\n11. Explanation of results\nThere are two basic facts that are fundamental in explaining why the\nwidespread and disastrous results noted above would occur:\n(1) The grain and feed shortage is so acute that we do\nnot have enough grain and feed to support our present livestock\nand poultry population assuming that reasonable quantities of our\ngrain go into the other grain using products and that we meet\nreasonable commitments for famine relief abroad. There must be a\nsubstantial liquidation of our live animal and poultry population."
}