1082 . GENERAL FARM PROGRAM 



Mr. PoAGE. Suppose we support the mohair at 58 cents, and wool 

 at 42 cents, how long do you think that there would be any market 

 for mohair at 58 cents? I realize the first 2 or 3 years you could sell 

 the whole crop to the Government, but you cannot base a permanent 

 program on simply loading it on the Government, the Government 

 never getting ricl of it. Where do you think we would go if we fixed 

 a level of 58 cents on mohair? 



Mr. Fisher. I was simply mentioning that as the 90-percent basis. 

 We are not here insisting on 90 percent, but we do feel that by defining 

 wool to include mohair, a relative price schedule of various grades — - 

 which will average less than 58 cents, can be devised. 



Mr. PoAGE. I know you are not. I am trying to find out what you 

 think would be desirable. I have no criticism of 90 percent. I am 

 willing that you should have 90 percent, the same as anybody else, 

 if it will keep your business going, but I do not want to establish 90 

 percent base and just simply put you clear out of business. For 

 instance, we know that if you were to guarantee the price of cotton at 

 40 cents a pound, we know we would be soon out of the cotton business, 

 because foreign growths and synthetics would take the market, and 

 we would have no place to turn except to the Commodity Credit 

 Corporation, which would be a market for 1 or 2 years at the outside. 



Mr. Fisher. We are quite conscious of that. Of course, the average 

 price, if you want to put it on that basis, over the past 10 years has 

 been about 53 cents. 



Mr. PoAGE. Do you want to put it on that basis? WTiat I am 

 trying to find out, what docs the industry want to do. 



Mr. Fisher. Our general proposition has been we want comparable 

 treatment with that of wool. There are different grades of mohair 

 just like there are different grades of wool. When a parity base is set, 

 it will be fairly simple for the Department to establish relative grade 

 prices. 



Mr. PoAGE. What do you call comparable is what I am trying to 

 get at, and if you put it on the parity basis, is it safe to put it there? 



Mr. Pace. I have just gotten the figures. The parity price on 

 wool, January 1, 1949, is 45.4, slightly over 45 cents a pound. The 

 parity price on mohair January 15, 1949, is 68.2, slightly over 68 

 cents. That may or may not establish the proper relationship. 



Mr. PoAGE. I am just suggesting to Mr. Fisher, Mr. Chairman, that 

 I am perfectly willing to put it on that basis, and guarantee the goat 

 wool, shall we call it, in the future for legislative purposes, I am 

 perfectly willing to guarantee it at the 90 percent of parity if in so 

 doing you do not destroy the industry, and I am willing to let you be 

 the judge whether it would be destroying tlie industry. But I know 

 full well as one who has had a little experience with cotton that if you 

 fix the price of cotton at 40 cents a pound that we would be out of the 

 cotton business in 3 years time. I think you will be out of the mohair 

 business in an equally short time if you fix the price of mohair sub- 

 stantially above what the markets will pay. Wliat I am asking you 

 folks is, what do you want, and you have got to answer the question, 

 I for one am willing to give you tlie 90 percent of parity, but I want to 

 know, do you want it? 



I wish that the representative of the mohair people would tell us 

 whether they want 90 percent of parity or whether they do not. 

 If they want it, let us give it to them, but if they do not want it, 

 let us not destroy the industry. 



