Evening star., 1949-02-14
:Tobin Says Price Cuts
MAY Stop and Warns
Against Exaggeration
By Cholmers M. Roberts

CAd4 GU oOOdy ~ WOQiO NC easy W
exaggerate the prevalence and the
effects" Of current price reduc-
tions and he warned the down.
ward trend may not continue.
Testifying before the Joint Eco
/, nomic Committee, the cabinet Of
ficer said preliminary January
price estimates by the Labor De-
, partment's Bureau of Labor Sta
I tistics have lied us to conclude
that the genuine price reductions
. are less than a casual reading of
: newspaper advertising or a pass
!, ing glance at window displays
: would lead us to believe"
, His statement followed an Agri-
culture Department report today
predicting 1949 food prices will
be somewhat lower" than those
last year but that no sharp decline
is in prospect.
Sees No Downturn Certain.
Mr.. Tobin said the country can
not "be sure that food prices will
continue their downward course"
He pointed out that it is still too
early to predict the effect on meat
prices of cattle losses in the West
ern storms and he added that un-
favorable growing weather could
suddenly create crop shortages
which would reverse the direction
of food prices in 1949 as they did
In 1947.
In discussing the employment
situation, Mr.. Tobin said "the rate
Of increase in unemployment ap-i
pears to have slackened."
while the volume of unem-
ployment at the present time is
not large" Mr.. Tobin told the
committee, "the situation is one
which should be closely watched
with view to making sure that
adequate measures are available
both to assist workers laid off in
the readjustments in industry now
going on and to head off re-
cession should one begin to
threaten"
Expects Wage Demands.
In discussing the wage situation,
the Secretary said that it would
be "unrealistic" to expect the pres
sure for wage advances to Sub
side automatically" as the cost
of living drops. He said many
businesses are still operating
under the conditions that per-
mitted previous wage increases"
and he added that "the aspirations
of trade unions and their members
will not be satisfied without the
progressive improvement in living
standards that our economy makes
possible" An
The Agriculture DEPARTMENT. S
first quarterly food situation re-
port for 1949. declaring no sharp
price decline is anticipated, added:
mo major change in food sup
plies is. expected and the factors
affecting the general level of pur-
chasing power - that is, general
economic activity, employment and
wage and salary payments-prob-
ably will continue strong through
out the year"
U. S. Spending Held Factor.
The department said the con-
templated increase In Government
expenditures, if approved by Con-
gress, will be large enough to
offset a moderate decline in pri-
vate spending and still maintain
overall economic activity close to
present levels"
The report estimated dollar ex-
penditWes for foods to be shipped
abroad as part of the Marshall
Plan and other foreign aid pro-
grams in this calendar year are
expected to be greater than the
1948 outlay. Such programs, the
report went on, "are likely to
maintain important outlets for
some farm products.
In estimating the supply OF
food for 1949, the department re-
port said per capita consumption
by civilians is expected to con-
tinue at about the 1948 level,
which was IL per cent above the
prewar average. The 1948 con-
sumption figure was 3 per cent
under 1947, with most of the de-
cline due to smaller supplies OF
livestock products.
Larger Supplies Due Later.
In the coming year somewhat
larger supplies" of livestock prod
ucts will be available but much
of the increase will not show up
until the latter part of the year.
These are the figures for ex-
pected per capita civilian con-
sumption in 1949 compared with
last year and the 1859 average:
Meats-145 pounds this year.
14s last year and 1875 before the
war.
Eggs-38o eggs, 38s and 2ss.
Chicken-47.5 pounds dressed
weight. 48.6 and 37.3.
Turkey-3.8 pounds, 3.5 and 2.6.
Fluid milk and cream-370
pounds, 388 and $40.
Cheese pounds, SO and 5.5
Condensed and evaporated milk
-20.9 pounds, 20.6 and 1857.
Butter-10.6 pounds, l0.l and
1877.
Other food fats-32.9 pounds,
S21 and %.
Fresh fruits-133 pounds, 1874
and 1877.
Fresh vegetables-256 pounds,
256 and 235.
Sugar-s0 to s5 pounds, 96 and
eos.
Flour and flour in bread and
bakery products-136 pounds, 1875
and 152.
q - = A