Evening star., 1939-09-10
Food Prices Here
Not 10 Go Higher,
Dealers Predict
Trend to Be Toward
Lower Figures Unless
Hoordine Resumes

District food prices have risen
about as far as they should for
while and some items may slide
backward slightly this week in re-
action to the recent sharp increases
unless buying for boarding keeps up
an artificially brisk demand, some
local dealers predicted last night.
The District Government, mean
while, held in abeyance plans to lay
in a years supply of some staples re-
auired by municipal hospital, well
fare and relief institutions, with in
dications that the proposed buying
program would be called off entirely.
The sharpest retail price increase
here has been for sugar, which rose
% per cent from August Is to Sep
tember 7, special survey of food
prices in 10 key cities of the coun-
try by the Bureau of Labor Sta
tistics disclosed last night.
The survey showed marked in
creases in the retail prices of eight
out of nine basic foods-sugar. flour,
lard. pork chops, butter, navy beans.
chuck roast. coffee. Only bread
prices showed no advance.
Lard and pork chops here were up
"a per cent; navy beans 8 per cent;
chuck roast and coffee, s per cent;
butter, 3 per cent, and flour, per
cent.
Average Rise 10 Per Cent.
For all commodities covered in the
bureaus survey, the average price
increase was 10 per cent in WASH
ington. New York, Cleveland and
Portland, Me, felt sitter increases.
averaging IS to 20 per cent. The
highest single rise was 63 per cent
Tor flour in Portland. Sugar jumped
IS per cent in Portland and 81 per
cent in New York.
Local wholesale grocery and meat
dealers questioned last night re-
ported general opinion among the
trade that there appeared no reason
Tor further immediate rises here.
with prices apparently leveling of
IN the last couple of days at levels
1airer to the producers than the un-
reasonably low prices that prevailed
There was some opinion, however
not shared by all in the trade, that
meat prices might go higher in the
long run because of greater demand
from countries at war in Europe.
One source cited as an important
factor the lifting by Great Britain
as OF september 5 of all quota re-
strlctlons on importation of pork
products which had been in effect
since 1882, pointing out that this
Prooaoly would mean increased
BRUSH demand for American pork.
A lot of people who were produc-
Ing meat in Europe three weeks ago
now are meat consumers instead of
producers and this is bound to
aHect the law of supply and demand
ana tend to raise prices, he pointed
out.
Supply May Be Raised Too.
On the other hand. it was pointed
out that many meat producers in
TINS country may have held their
hogs and cattle off the market last
week in the belief prices would 20
higher and that when normal mark
citing resumes the plentiful supply
would tend to balance increased de-
mands and keep prices from going
unreasonably high.
One large local meat packer said
he anticipated slightly lower prices
this week as reaction set in from the
sharp lncreasee of last week. but did
not believe they would 90 back as
low as they had been 10 DAYS ago.
This source described last weeks
rising prices as largely the result of
lust state of mind" pointing out
that there is plentiful supply of all
food materials in this country and
no shortage could develop overnight.
A poultry dealer reported con-
tinued brisk movement in fresh
poultry, eggs and butter, with his
firm already having bought and sold
unusually large amounts for delivery
this week. There were no significant
price changes yesterday, he said.
with prices at country points re-
manning up about 4 cents for
poultry, cents for butter and 3 to
cents for fresh eggs, from the
levels of week ago.
Wholesale Prices Same.
Wholesale grocery prices remained
about the same yesterday, indica-
tions that some items soon NAV
start to slide backward from the
weeks high levels, a representative
dealer reported.
He anticipated slightly lower prices
Tor navy beans and shortening in
particular. Prices of some canned
goods have been stiffening in SYM
pathy with the general rise, he said.
but he could see no justification
for any further increase in this
line.
The best guess is that sugar prices
will not 60 appreciably higher, he
said. although there might be
slight further rise if the current
artiflcially brisk demand keeps up.
Emphasizing that consumers de-
feated their own purposes when
they began boarding supplies. he
said this type of buying had been
felt to the greatest extent in sugar
which also experienced the sharp
est price increase here.
Sugar prices had leveled off yes
terday at an average Of around IL
cents per pound higher than ten
days ago.
Conflict on d. C. Plan.
Origin of the abortive plan for
the District Government to buy
some of its supplies for a year in
advance was hidden in conflicting
statements.
The Commissioners are expected
to order the plans held up tomorrow
In view of denials from the Treasury
Department procurement division
that it had issued any orders" for
the advance requisitioning. and in