As I previously indicated at Cabinet meeting, I am very much concerned that, during these months of transition for the economy, major Departmental and Agency programs be viewed in the light of their impact on economic conditions generally. It was this kind of consideration to some extent that underlay our recent discussion of the price support decision affecting dairy products.1
I am confident that we can effect this transition to a healthier, sounder economy without generating the kind of downward spiral that has marked the great depressions of the past. It is, however, a process that Government, by what it does or fails to do, can affect one way or the other. 1954 is a critical year in this period of transition and that is why I am very much interested in making sure that every Department constantly bear in mind and give appropriate weight to the implications of each major decision on overall economic stability.
It would be of considerable help to me personally if you could supply me with a brief, meaty summary of the outlook for farm income for the next three months, six months and year.
Then, looking beyond that point, it would be helpful to get your view as to the effect on farm income each year during the transition period--assuming that the new farm program is enacted, that general economic stability remains on an even keel, that weather is reasonably normal, and that farm price supports (apart from the changes to the new parity) drop no more than 5% per year until they reach legal minimums.
I realize that there are many contingent elements in this job of estimating. I am sure, however, that you have been wrestling with these problems and I would appreciate your best judgment as to the likely course of farm income under the conditions indicated.2
