768 GENERAL FARM PROGRAM 



Mr, Andresen. I understand that. Assuming that we fix a 

 support price on wool of 50 cents a pound and the price in this country 

 goes to 25 cents a pound, then your growers under the proposal that 

 was made to the committee by the secretary should get a check from 

 the Government for 25 cents a pound to make up the difference. 

 Is that what you want? 



Mr. Vaughn. We have no idea that that would be necessary, 

 because if the price were to go down 50 percent, we assume that our 

 costs would go down and that the amount of the subsidy would be 

 out of sensible proportion. 



Mr. Andresen. Whatever the difference is, you would want a 

 check from the Government for it. 



Mr. Vaughn. We think that some sort of check from the Govern- 

 ment would be necessary to balance the reduction I say has been 

 made in the tariff since any support was given us. That would be 

 in order if we want to increase wool production. 



" Mr. Andresen. I have always been in sympathy with the wool 

 growers and I voted against the reciprocal trade law because I felt 

 your industry should have the protection in order to produce more 

 wool to take care of the needs of the American people. That 

 has been my philosophy and still is, but now I see you want to abandon 

 that philosophy and put all of your indastry on the bounty of the Fed- 

 eral Government and the ability of the Congress to pass laws to collect 

 taxes so as to pay you to stay in business. 



Mr. Vaughn. May I correct your statement a little. 



Mr. Andresen. You do not need to correct that. That is what 

 you say here today. 



Mr. Vaughn. After all, you said that you were expressing our view, 

 which is not quite true. 



Mr. Andresen. Do you not believe these compensatory payments, 

 or payments that the Secretar}' has suggested, should be made to each 

 industry? 



Mr. Vaughn. I said as long as the philosophy of the Government 

 is that the tariff should be reduced and that the old-time idea of protect- 

 ing home industry by tariff is no longer a protection to wool, then we 

 accept payment and anything that is necessary in order to keep wool 

 production up. 



Mr. Murray. I think in this connection that the record should 

 show that you would not be in the embarrassing position that you 

 are in if you had the same consideration that my colleague from Texas 

 wants to have you accept. 



For example, if we had an embargo on wool imports as we have on 

 wheat, and if we had an embargo on cotton imports as we have on 

 cotton, and if we had an embargo on tobacco in the form of a tariff 

 that is up one dollar a pound on some kinds of tobacco, as we have on 

 tobacco, you would not be in this position because then you would be 

 assured of the American market for the American sheep grower. But 

 you are not in that position. For several years yoa have been in this 

 position of having your imports twice your domestic production. 



Mr. Vaughn. That is right. 



Mr. Murray. If we do not have some control over what comes into 

 this country, we will be supporting the whole world because the sup- 

 port price will be higher than the world wool price plus the free trade 

 approach we have under the present administration. 



