rahe I SITUATION ron bestock livestock markets at the opening of the new year give assurance ot of rt ability and an underlying strength that Is very welcome to the stoel man the cattle market at los an geles advanced toward the close of the year and the upturn in values was continued during the first week of the new year the rank and tile file ot of short fed steers are now selling at 7 25 to 8 00 with the better grades quotable upwards to 9 00 or better prices at this writing stand fully 2 cents a pound higher tha than n at the outset of 1935 there has been some strength in the hog market ib lb hogs selling at 10 50 a cwt as compared with an extreme top of 8 00 a year ago the fat lamb market is also in strong position with good to choice fed lambs on the log los angeles market at 10 as compared with 7 50 to 8 00 a yea ago probably at no time in our his tory has the united states supreme court been called upon to render an opinion more tar far reaching than on the agricultural adjustment act the amount ot of actual tax money in evolved is well over a billion dollars in n fact last year s income to the federal government thru process ing taxes constituted the largest source of federal income but of far greater import is the tact fact that the supreme court has de ter mined that federal restriction upon agricultural production is un constitutional declaring that this la Is a matter of state rights manifestly it is beyond reason to suppose that forty eight states and various terri possessions could agree upon uniform laws to adjust production of 0 various agricultural products and there are many who have al ways opposed the A A A declaring that it nas mas not within the power of 0 the central government to adjust production this tact fact was demon when the drouth went wenta a great deal farther in restricting pork pro than had been intended by the federal bureau heads As to the price situation it is reasonable to assume that hogs will sell for more money on the markets without a processing tax than with one the laws of supply and de mand will now be allowed free play