EXHIBIT B.-Cash income of various agricultural products and relative importance in 12 western States and Texas-Continued

Source: U. S. Department of Agriculture; U. S. Department of the Interior, September 1947.

Mr. JONES. Exhibit C: Wool production and consumption for 30 years. Only once in the last 30 years has domestic production exceeded consumption and that was the depression year of 1934. (Exhibit C is as follows:)

EXHIBIT C.-Wool shorn and wool pulled from domestic fleeces in the United States, and the annual mill consumption of apparel shorn and pulled wools, 1918-47

Mr. JONES. Exhibit D. Tariff tied to foreign rates of exchange. A compensating tariff for wool should be sufficiently flexible in order to adjust with changing rates of foreign currency. (Exhibit D is as follows:)

EXHIBIT D.-TARIFF TIED TO FOREIGN RATES OF EXCHANGE

Tariffs, in many instances, have been ineffective because rates of exchange of money between countries have not been stable. This situation is very forcibly brought to mind at this time because of the recent devaluation of the franc and the threatened devaluation of the British pound, which, if done, will render the remaining tariff on wool and wool products entirely ineffective.

It would seem comparatively simple to adjust the tariff with the fluctuation in the value of foreign currency in relation to our dollars.

For example: If a compensating tariff (difference between the cost of wool production here and abroad) on imported wool per clean pound was 40 cents when the rate of exchange for one British pound is four American dollars, any change in the currency relationship would be reflected in the tariff assessed.

The following table illustrates the point:

1 British pound $5.00-Tariff, 32 cents per clean pound.

1 British pound= 4.50-Tariff, 35.5 cents per clean pound.

1 British pound= 4.00-Tariff, 40 cents per clean pound. 1 British pound= 3.50-Tariff, 46 cents per clean pound. 1 British pound= 3.00-Tariff, 53 cents per clean pound. Source: National Wool Growers Association.

Mr. JONES. Exhibit E. Import duties. Duties collected on foreign wool importations during 1941-46, inclusive (1947 not available) amounted to $714,400,000 for these 6 years, or 30.3 percent of total import duties. Therefore duties from wool supplied 30.3 percent of section 32 funds. When I prepared this exhibit it was not possible to secure 1947 figures.

Mr. JONES. Exhibit F. Parity calculations. Modernized or 10-year moving base parity for wool as of February 15, 1948, without wages amounted to 52.8 cents per grease pound; with wages 55.4, parity prices under present formula was 45.4 as of the same date.

(Exhibit F is as follows:)

EXHIBIT F.-Prices received by farmers, parity prices and modernized parity prices under alternative formulas, United States, February 15, 1948

1 Column (1) divided by 1938-47 average of the index of prices received by farmers (167.5). 2 Prices in column (2) multiplied by the index of prices paid, interest and taxes for February 1948 (248). 3 Prices in column (2) multiplied by the index of prices paid, interest and taxes for February 1948 (248) weighted 92.2 and the current index of farm wage rates (408) weighted 7.8: (260).

Source U. S. Department of Agriculture.

Mr. JONES. Exhibit G: Average prices received by farmers. The average increase in prices for 23 principal agricultural commodities from the prewar period (Sept. 15, 1941) to January 15, 1948 amounted to 146 percent. The increase in the price of wool during the same period is 12.1 percent, which is included in this table.

(Exhibit G is as follows:)

EXHIBIT G.—Average prices received by farmers in the United States, Sept. 15, 1941, compared to Jan. 15, 1948 for 23 principal products

Mr. JONES. Exhibit H. Analysis of normal supply (excluding Government stock of wool), total supply percentage for domestic wool calculated under S. 2318. That will be referred to later.

(Exhibit H is as follows:)

EXHIBIT H.-Analysis of normal supply (CCC stocks out), total supply and supply percentage for domestic wool calculated under S. 2318

Total supply for 1948 is 85 percent of normal supply. This is the supply percentage.

This would mean an 80-percent parity support or a support program at 42.7 cuts (parity January 15, 1948-53.4) per grease-pound average if the program had gone into effect as of January 15, 1948.

Present support is 42.3 cents per grease-pound.

Source: Basic data, U. S. Department of Agriculture.

Mr. JONES. Exhibit I: Analysis of normal supply, total supply and supply percentage for domestic wool calculated under S. 2318, which includes Government stocks of wool. That will be referred to later. (Exhibit I is as follows:)

EXHIBIT I.-Analysis of normal supply, total supply, and supply percentage for domestic wool calculated under S. 2318

Eighty percent of total average supply equal 552,903 pounds.

One hundred and twenty percent of total average supply equal 829,355 pounds. No years less than 80 percent of actual average.

Years 1946 and 1947 equaled more than 120 percent of actual average.

Ten percent of the difference between total supply for 1946 (860,225) and the total 10-year average supply 829,355 is 3,087,000 grease-pounds; 10 percent of the difference for 1947, 11,732,000 grease-pounds; total 14,819,000 grease-pounds. Ten-year average total supply, 691,129 grease-pounds; less 10 percent of differences for 1946 and 1947, 14,819 grease-pounds; total normal supply 676,310 grease-pounds.

Nineteen hundred and forty-eight carry-over, 529,140,000; estimated production 290,000,000; total supply, 819,140,000. Total supply for 1948 is 121 percent of normal supply. This is the supply percentage. This would mean a 65 percent parity support or a support program at 34.1 cents per grease-pound (average). Present support program 42.3 cents per grease-pound.

Source: Basic data, U. S. Department of Agriculture.

Mr. JONES. Exhibit J: Wool production stabilization formula. That will be discussed later.

(Exhibit J is as follows:)

EXHIBIT J.-Wood production stabilization formula (incentive formula)

1 Figured on the basis of 1 percent change in support from 75 percent of parity, either up or down, for every 8,640,000 pounds of wool, or major fraction thereof, in normal supply (360,000,000). The 8,640,000 pounds would be in conformance with present formula in S. 2318.

With wool at 40 cents per pound 1 percent change in parity means four-tenths of a cent per pound. With wool at 40 cents per pound 5 percent change in parity means cents per pound.

Production of domestic shorn wool, 1930-39, inclusive, averaged 361,500,000 pounds. Prices of all wool 1920-39, inclusive, averaged 82 percent of modernized parity. Normal production of domestic shorn wool is taken at 360,000,000 pounds. Normal loan or support base is taken at 75 percent of parity, with a maximum of 90 percent and a minimum of 60 percent loan or support price.

For every 5,000,000 pounds of shorn wool variation in production 1 percent change is made in inverse proportion from the normal (75 percent) loan or support base.

Source: Basis data, U. S. Department of Agriculture, Apr. 15, 1948.

Mr. JONES. Information as to prices, production, supply, and so forth, is available to the committee on pages 13 and 14 of Data Pursuant to the Agricultural Act of 1948, S. 2318, as prepared by the Bureau of Agricultural Economics.

I just learned yesterday that those figures were not correct. The only reason that we delayed in preparing our tables was to be in conformance with the figures of the Bureau of Agricultural Economics and now they say they have made a mistake. Consequently, these figures that I have prepared here would not be exactly as they should