GENERAL FARM PROGRAM 1215 



would receive that much more subsidy, having sold it at the best 

 possible advantage. 



Mr. AxDRESEx. "^Vliat would be the incentive for him to do that? 



Mr. Jones. The incentive, first of all, is getting the best price he 

 could per pound of wool; not realizing or knowing whether or not he 

 would have a subsidy payment, he would want to get just as high a 

 price as he could. The subsidy, we would hope, would be a very 

 minor part of the return he would receive for his wool. 



Mr. Andresex. How much would it cost with a wool clip of 

 250,000,000 pounds, which is just about what would be raised here? 



Mr. JoxEs. If I may assume some things, on the production pay- 

 ment program and its cost, if it went into effect in 1950 and the 

 difference between the support level and the price received was 10 

 percent, that would be equal to 5 cents a pound on all of the wool 

 produced, or approximately a cost of $12,200,000 under the assump- 

 tion. 



Mr. Murray. Mr. Jones, I presume you reahze that the days of 

 something for nothing are pretty well over; that the honejmioon is 

 pretty well over. 



Mr. JoxES. I would think so. 



Mr. AluRRAY. Now we are not going to have something for some- 

 thing from here on out, and if the 250,000,000 pounds of wool should 

 go down to 20 cents a pound — and you have seen it go to 10 



Mr. JoxEs. Yes, sir. 



Air. Murray. I would like to have you tell me where you are going 

 to get the money. You have just as much right to assume wool is 

 going to be 20 cents a pound as you have to assume it is not going 

 to be. I think if we did not have the wool support program today, 

 wool would be much lower in price in the United States. The world 

 wool monopoly might control the price temporarily. If we would 

 have to pay at least 20 cents a pound as a subsidy or $50,000,000 a year, 

 I wish you would tell me where you are going to get the $50,000,000. 



Air. JoxES. If we continue on the basis of direct subsidies from the 

 Government, it would come from them.. 



Air. AluRRAY. It would come from them, but how are you going to 

 get the mone}^? You know, that is the trouble in Washington ; we 

 have too many people who never earned a dollar in their lives; all 

 of the money they ever had is what they either inherited or got from 

 the United States Treasury. Plenty more people are trying to get 

 money out of the United vStates Treasurj^, and if you have any pro- 

 gram to propose, I would like to have you tell me where you are going 

 to get the money to carry it out. 



Air. JoxES. If we had our choice, we would feel in the case of wool, 

 an equitable tariff, and a disaster floor in the event there came a 

 depression in this country, would be the most desirable thing. That 

 as we visualize it now, is not in the picture, but if we want to keep a 

 domestic sheep industry and direct subsidies from the Government, 

 is the only way, this is the method we think would do the best job 

 for the producers of wool. 



Mr. AluRRAY. That may be, but you have not answered my 

 question of where you are going to get the money. 



Air. Jones. I think, sir, it would come from the taxpayers' pockets. 



