GENERAL FARM PROGRAM 767 



Mr. AxDRESEN. We will assume that you want 50 cents a pound 

 support price on wool. 



Mr. Vaughn. Yes. 



Mr. Andresex. \Vliat will be the effect on the price of wool in 

 this country? Will it increase or decrease? 



Mr. Vaughx. I assimie that the policy under consideartion would 

 be the allowing of the wool to come into this country so that it would 

 assume its level with relation to the world price and the tariff, and 

 then a subsidy paid to the wool growers which would interest them in 

 producing up to 



Mr. Andresex. I asked you if we fixed the support price at 50 

 cents a pound for wool would that attract more wool from the other 

 countries of the world? 



Mr. Vaughx. I do not see the relation of the support price which 

 3^ou might fix to the income. The tarifl" has to do that. 



Mr. AxDRESEX. You raise one-third of the wool in the United 

 States that is consumed here. That is what you want to sav. * 



Mr. Vaughn. That is right. 



Mr. Andresex. And we do not produce enough to take care of 

 our needs. 



Mr. Vaughn. That is right. 



Mr. AxDRESEN. If we raised the support price in this country that 

 would be bound to attract more wool from other countries, if my 

 economics are correct. 



Mr. Vaughn. I would think that would be true. 



Mr. Andresen. That would mean a lowering of the price in the 

 market, and should you then sell your wool at the market price with 

 more wool coming into this country, and if jou favor it, you will 

 have to have a larger payment from the Government, is that not 

 right? 



Mr. Vaughn. I would think so, yes. It could not be anything else, 



Mr. Andresex. Then you favor the administration's proposal to 

 make and maintain a high income standard for the producers of wool 

 in tliis country and to compensate you for the difference between 

 what the wool price is and what you should have to maintain prosperity 

 for the wool producers. 



Mr. Vaughn. In general that statement is correct, although as a 

 citizen we do not want them to go any higher than necessary, at 

 least to produce this amount of 360,000,000 pounds, because it will 

 all cost the Government money. We do maintain our original 

 proposition that the reason why production is going down is that 

 we do not, as growers, have confidence in the policy of the Govern- 

 ment to do that thing. 



Mr. Andresen. As I understand you, you want to place the wool 

 and sheep industry in a position where it is absolutely dependent 

 every year for its livelihood and its ability to do business- upon the 

 Congress appropriating the necessary money to take care of your 

 group, and have collection of taxes to meet that appropriation? 



Mr. Vaughn. My statement was that what I deemed necessary 

 was at least a token representation or payment to show us that it is 

 the Government policy to support woof and that the 360,000,000 

 pounds is still the amoimt of wool the Government figures should be 

 in production. 



91215 — 49 — ser. u, pt. 5 2 



