lands and greater efficiency in processing and adapting the industry's products to consumer preferences all are contributing to the achievement of our objective. EXTENSION OF NATIONAL WOOL ACT RECOMMENDED The 1958 marketing year beginning April 1 will be the fourth and last year for incentive payments under the existing legislation. The National Wool Act of 1954 limits such support to marketings during the period April 1, 1955, through March 31, 1959. Your committee placed a termination date in the bill it reported to the House. The committee stated that this was not to be construed as meaning that they felt the wool program should be of a temporary character. They said that, on the contrary, they hoped and believed that the program would provide a relatively permanent solution to our wool problems but since the program is new and different from any tried before, it would be well to review its operation and effect after a time and make such improvements and changes as experience might indicate. We believe that the incentive payment program under the National Wool Act is proving to be a sound solution to the special problem of wool. As I mentioned, in the case of wool we are on a net import basis. The program is providing the needed price assistance to our domestic woolgrowers: (a) Without adversely affecting foreign trade; (b) Without adversely affecting the competitive position of wool with imported wool and other fibers; and (c) Without having the Government in the wool merchandising business. The program is restoring initiative and confidence in the industry. The tariff designed to protect the industry is also providing the financial assistance needed to meet increasing costs and competition from foreign imports. Reports coming to us indicate increased interest is being shown in sheep production as forage and range conditions permit. Due to the longtime nature of the enterprise, it is obvious that a continuing program is essential to retain the gains already made and give growers the confidence needed for them to proceed with their plans for increasing wool production. Early extension of the act is therefore recommended by the Department of Agriculture. Mr. Chairman, here is the set of charts and tables on the wool situation and the incentive payment program which I mentioned. With your permission, I should like to have them placed in the record. We thank you very sincerely for your patience in listening to our views on the special situation with respect to wool and extension of the National Wool Act of 1954. Permission has already been granted Mr. MATTHEWS. Thank you. to insert the charts in the record. (The charts referred to are as follows:) Exhibit A. Stock sheep and lambs on farms January 1. B. United States-duty-paid imports of wool by specific countries of origin. E. Pasture feed conditions, October 1, 1956. F. Prices for wool at Boston and Sydney, Australia. G. CCC holdings of wool accumulated from 1952 to 1954, price-support loan program. H. Average price received in the open market by growers and incentive payments for shorn wool. I. Number of stock sheep in the United States; domestic production, imports and consumption of wool; wool prices and payments under the National Wool Act of 1954; and 70 percent of duties collected on wool and wool manufactures. J. Number of goats clipped; production and consumption of mohair, and farm price of mohair in the United States. K. Number of farms and ranches reporting sheep and shearing sheep in 1949 and 1954. L. Production of shorn wool, by States. M. Estimated mill consumption of wool, cotton, rayon, acetate, other manmade fibers and silk, United States, 1938 to date. N. Price per pound of wool and other textile fibers, 1938 to date. O. Duties collected on wool and wool manufactures imported into the United States. P. Projections of payments under wool payment program and duty collections available for payments through the 1958 marketing year with incentive price at 62 cents for the 1958 marketing year. Q. Wool payments through October 31, 1957, for the 1955 marketing year. R. Wool payments through November 30, 1957, for the 1956 marketing year. S. How wool payments are figured. The decline in sheep numbers from 1942 to 1950 was the most drastic in history. Our wool production has varied with sheep numbers. Over 70 percent of our shorn wool is produced in the 13 western range States, including Texas and South Dakota. Sheep numbers in those States have declined about 50 percent since 1942, and in the rest of the country 39 percent. The net decline in the last few years has been primarily due to reductions in sheep numbers in Texas and several of the Western States where severe drought conditions prevailed. Shorn-wool production in 1957 was greater than a year earlier in 23 of the 35 native sheep States and in Arizona and South Dakota of the 13 western sheep States. (Exhibit A.) World production of apparel wool amounts to about 2,300 million pounds, clean basis, of which United States production accounts for only around 5 percent. However, the United States consumes about 12 percent of the world total. The United States imports about two-thirds of its wool needs. In 1956 imports totaled 152 million pounds, of which the bulk came from 5 major exporters of the Southern Hemisphere. Fine wool originates largely in Australia and South Africa and medium wool in New Zealand and South America. After advancing each year for nearly 10 years, world production is expected to be down very slightly this season due to severe drought conditions in Australia. The general trend of world consumption of wool has also been upward and is closely in balance with production. (Exhibit B.) AV. 1925-29 EXHIBIT C FOREIGN VALUE OF WOOL IMPORTED INTO THE U. S. AND IMPORT DUTIES With the United States on an import basis, the tariff on wool tends to maintain prices of domestic wool above the world market level. The General Agreement on Tariffs and Trade of 1948 in general reduced the duties on wool 25 percent. The duty of 34 cents per clean pound as established under the Tariff Act of 1930 for wool finer than 44's was reduced to 25% cents. As the general price level has increased, the protection afforded by the tariff has been relatively less, both in relation to wool prices and in terms of prices of things woolgrowers buy. (Exhibit C.) |