1142 GENERAL FARM PROGRAM 



countries involved, together with the variations in exports to the United States 

 in recent years because of the war and postwar conditions, would tend to make the 

 establishment of quotas very difficult. 



4. Rate of consumption. — While the rate of consumption of sugar is not uniform 

 from year to year, it is much more stable than the consumption of wool. Also 

 consumption is fairly constant throughout the year in the case of sugar, whereas 

 wool consumption may be at a very low rate for a period of time and then when 

 orders are received, wool may be consumed in large quantities for a period of 

 several months. This is true also of the different grades of wool. Wool consump- 

 tion for certain grades may be high during one year or during a season and at 

 other times these particular grades may be consumed in small quantities. It is 

 very difficult, if not impossible, to predict the rate of consumption for wool a year 

 in advance. Consumption of wool has always varied greatly in normal times 

 and this condition is made possible because our mill capacity has usually been 

 about twice as great as necessary to fill our requirements. 



5. Quotas. — While the sugar industry is characterized by a small number 

 of large operators, the wool industry is characterized by a large nember of both 

 small and large operators. In addition to establishing quotas for imports by 

 countries, it probably would be necessary to establish quotas for each importing 

 establishment in this country. Establishing quotas for such a large number 

 of importers by grades or classifications of products would place a heavy adminis- 

 trative burden upon the agency operating the program. It would also place 

 a very heavy burden upon importers who attempt to bring wool into this country. 

 As a result, it might develop that the most practical way to handle imports 

 would be for the Commodity Credit Corporation to become the sole importer. 

 The CCC could then distribute the imported wool by sales to the highest bidder 

 or by sale at a fixed scale of prices. Of course, by doing this, the Government, 

 would be taking over a large part of the private wool trade. 



Basically such a wool program would involve a restriction on imports which 

 would reduce the consumption of wool in the United States. This would be 

 necessary in order to get an increase in price to United States producers which is 

 the objective of such a proposal. Such action would, of course, tend to increase 

 prices to consumers and would have the efi'eet of encouraging use of synthetic 

 fibers. The consumption of synthetic fiber has increased greatly since the war, 

 and it is an important factor in supplying our fiber requirements, having already 

 displaced wool to a significant extent. 



Mr. Pace. Mr. Andresen. 



Mr. Andhesen. Mr. Secretary, what is the average price of 

 American wool today? 



Secretary B.rannan. An average of good and low grades? We are 

 supporting right now at 40 cents. 



Mr. .4.NDHESEN. Are you buying any wool? 



Secretary Brannan. No, the producers are not offering it now. 

 It is not shearing time. 



Mr. Andresen. Is the market price above the support price? 



Secretary Brannan. On the finer grades I am told it is. 



Mr. Andresen. What kind of wool will the Government loan 

 money on at 40 cents, 90 percent of the parity support price? 



Secretary Brannan. We have a purchase program on wool. We 

 buy it. 



Mr. Andresen. Then you are not buying any wool from the 

 1949 clip? 



Secretary Brannan. We will as soon as it starts moving. 



Mr. And.resen. They have already clipped their sheep. 



Mr. Hill. Only in a small section. In our territory we have not 

 clipped yet. 



Mr. Andresen. When do you clip? 



Mr. Hill. June. 



Mr. Andresen. It is June now. 



Secretary Brannan. We are buying some low grades of wool now 

 I think. 



