U.S. HOUSE PASSES NEW WOOL BILL

Chronicle (Levin), 28 July 1947, Page 7

U.S. HOUSE PASSES NEW WOOL BILL

Press Assn.-

By Telegraph

-Copyright

Received Sunaay, 8.40 p.m. WASHINGTON, July 26. The U.S. Rouse ,of Representatives by a voice vote today passed the Wool Bill continuing the Government's doinestic wool subsidy programme. The ineasuTe "now goes to President Truman wlio has indieated that he will sign it. Compared with the previous programme the ineasure contains a new provisioh einpowering the Government to sell domestie wool at prices in competition with comparable grades of .imported, wool instead of at 40.4 cents -per lb. as formerly. Government saies to American manufacturers, however, are not expected to close '^Ke: American unarket even temporarily to foreign wool be- , cause, firstly, the iannual- consumption — more than 800,000,000 pounds — exceeds the total of the existing ^ domestie stockpile of 460,000,000 pounds -'-plus 300,000,000 pounds produeed in the United States annually; secondly, the 34 ceuts per lb. tariff on imports provides roughly one-third of. the entire Customs intake of the American Government; thirdly, the officials are anxious to avoid any price war against t'oreign wool which would likewise depress the'market for American wool. Regarding the third point, the House Agriculture Committee 's report 011 the present Bill specifically states: f'lt is not intended that the Government should duinp its stocks of wool or that it should wage a price-cuttiug war or depress the market unduly. However, it is intended to put the Government in . a position to compete for the domestie market and to deprive foreign sellers of the competitive advantage they have had of pricing their wool below the point at which the Government has been permitted to sell." The measure, in subsidising American producers and authorising tlie Govern. ment to take the Toss on saies to American manufacturers, may iucrease pressure among economy-minded Repubiican Congressmen against any immediate rcduction in thc present wool tariff. It. is fclt that such would particularly be the case if the Biitish Joint Organisation should try to unload more of its Empire stockpile in the United States at any oue time than the market could bear. The Bj'itisi stockpile is now believed to approxi mate 200, 00U, (J00,000 pounds.