GENERAL FARM PROGRAM 1145 



Would you have any objection to putting on an import fee on wool 

 coming into this country? 



Secretary Brannan. There is one now. 



Mr. Andresen. There is a tariff duty that has been cut way down 

 but in addition to that would you have any objection to putting a 

 quota on wool that came into the country? 



Secretary Braxnax. I think that involves a lot of other questions 

 I would like to consider a little bit which aire not directly pertinent to 

 the method of supporting. We have an obligation here and we are 

 trying to find the most desirable method of discharging it. The ques- 

 tion you ask aft'ects the levels of support and many of the other fac- 

 tors. The tariff will not get back to that producer. 



Mr. Sutton. Mr. Chairman, we are not studying tariffs here. That 

 is for the Department of State. 



Mr. Andresen. I proposed that as a part of this program if we au- 

 thorize the support payment to producers. I think that certainly 

 w^ould be in order. 



Secretary Brannan. It certainly would not be in order for the Com- 

 modity Credit Corporation to try to enforce it. 



Mr. Sutton. That is a reciprocal trade agreement. 



Mr. Pace. Mr. Murray has a question, then we will move on to the 

 next commodity. 



Mr. Murray. Mr. Secretary, getting back to the suggestion made 

 by Mr. Hope, what is the present duty on wool? 



Secretary Brannan. Twenty-five cents a clean pound. 



Mr. Murray. What would that be per pound on ordinary greased 

 wool? 



Secretary Brannan. Ten or twelve cents. 



Mr. Murray. In the grease? 



Secretary Brannan. That is what I am told. 



Mr. Murray. I thought that was cut m two in Geneva 2 years ago. 

 If 250,000,000 pounds are produced in the United States and the price 

 went down 8 cents per pound it would cost 20 million dollars a year. 

 Following the sugar pattern, the funds obtained from imports could 

 be used to supplement the income of the domestic wool producers. 

 Is that right, Mr. Hope? 



Mr. Hope. I suggest we follow the same plan we do on sugar where- 

 by all domestic and all imported sugar pays a tax of 50 cents a hundred 

 pounds. The tax applies to everybody. 



Mr. Murray. That would be the same principle that you have on 

 sugar. 



Mr. Secretary, is that not one of your troubles in particular? When 

 you support a commodity like wool, of which the United States only 

 produces a third of what it uses, when the world price plus the duty 

 is less than our support price we are faced with a very difficult prob- 

 lem. If you had control of the imports like they have on cotton and 

 wheat, practically an embargo, as well as the tariff rates on tobacco up 

 to $1 a pound, then you are in a different position than you would be 

 if you had a commodity like wool where you are handicapped in trying 

 to support the price for a deficit production crop. 



Is that not one of the things that you have to face in connection 

 with a support program, that some machinery has to be woi'ked out 

 that is a different set-up where you have the American market for the 

 product than where you do not have the American market for the 

 product? 



