1455 A4 no. 98 the textile mills, the demand for domestic wools became uncertain. Mills preferred foreign wools not only because of their relatively lower price but also because less labor was required in their utilization because of superior preparation for market. In order to stabilize returns to domestic growers, the Commodity Credit Corporation, at the direction of the Secretary of Agriculture, announced a program to purchase the 1943 clip at ceiling prices. This purchase program was extended to each succeeding clip and is currently scheduled to continue in operation until April 15, 1947. After a record output of 459 million pounds grease basis in 1942, United States wool production has fallen off each year and was about 358 million in 1946. The support price at which the Commodity Credit Corporation announced it would purchase the 1946 clip was 123 percent of parity (1909-14 base) on June 15, 1946. On the same date, the farm price for cotton was 112 percent of parity, for wheat 105 percent, for corn 118 percent, and for beef cattle (which compete with sheep for range and farm resources), 140 percent. The import duty of 34 cents was 33 percent of the average price received by growers for the 1945 clip, which was approximately 104 cents a clean pound. Prices to growers averaged about 19 cents a pound scoured basis above the duty-paid import price of foreign wool. The ad valorem Б Based on price at Boston market of domestic finecombing territory wools, compared with Australian 64's70's good topmaking quality including import duty and reflecting adjustment for difference in preparation. ETING, PRE IONAL [ENT, ICAN PARA TION 946 1455 A4 no.98 at about 19 cents a pound scoured basis below the World apparel-wool production exceeded con- Post-War Developments From the point of view of United States wool growers, the continuation of the wartime pricesupport program is considered unsatisfactory: first, because it is on a year-to-year basis with no legislative assurance that it will be continued through the reconversion period; and second, because its successful operation involves losses to the Commodity Credit Corporation and will therefore require annual appropriations. It is ordinarily estimated that at least a decade may be required for the orderly liquidation of the surplus world stocks. Unless the wool-textile industry in the war-torn areas can be rehabilitated and world consumption of apparel wool can be maintained at a level above that of the pre-war years, the liquidation of surplus stocks will necessitate either an arbitrary curtailment of production or the sale of wools in the export markets be ETING, PRE IONAL [ENT, ICAN PARA TION 946 1455 A4 no. 98 conference were accepted by the United Kingdom and three Dominion Governments in August 1945. The establishment of the joint organization under the name of U.K.-Dominion Wool Disposals Limited, as recommended by the conference, was announced in July 1946. Under this agreement, the stock of Dominion-grown wools owned by the United Kingdom Ministry of Supply is transferred to the joint ownership of the United Kingdom Government and the Dominion Government concerned. In September 1946 wool auctions were resumed at which current clips and wool from the jointly owned stock are offered. Wool from the current clips will be taken up by the joint organization if not sold at prices equivalent to the auction reserve prices which are to be fixed by the organization from time to time. The directors of the U.K.-Dominion Wool Disposals Limited have announced that the organization will endeavor to maintain the current price level during the forthcoming season unless it becomes "necessary to meet a definite trend in demand which appears to be of lasting character". Relative prices of different types of wool may, however, be changed. As long as the U.K.-Dominion Wool Disposals Limited continues in operation, the prices of foreign wools should be characterized by much greater stability than in the inter-war period, and this stability should be reflected in the prices of domestic wools in the Boston market. ETING, PRE IONAL [ENT, ICAN PARA TION 946 |