Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-07-23
BACKGROUND OF EVENTS
BY PAUL y. COLLINS.

called on to provide relief? But they
are just our 'folks'-plain Americans.
X X X X
Secretary Hoover has advised the
President that there is no need to call
a special session of Congress to meet
the Mississippi food situation, because
the Red Cross Society still has about
100000 in its treasury for that re-
lief. Senator Smoot is urging that
Congress be called November l, with
the program of three great obiec-
tives-appropriate to cover deficiency
accounts, which was not accomplished
at the last session owing to the Reed
filibuster; care for the flood sufferers
and then reduce taxes. But both the
President and Secretary Hoover see
no necessity of congressional relief
so long as the Red Cross funds hold
out. Mr.. Hoover, as expert engineer,
says that to provide for future food
prevention it will be necessary to un.
dertake great engineering projects
requiring over 100000 900, spread
over 10 years. Perhaps he is think
ing more of that elongated need rather
than emergency provisions now, when
he says there is no necessity to call
upon Congress Immediately.
There were 600. 900 persons rendered
homeless, and even today the Red
Cross Society is feeding and sheltering
nearly 100000. (That is about half
the population of Rumania)
When a family returns to its home,
it receives three weeks rations. Since
it can produce no food of itself. what
shall it subsist on after the thres
weeks? In Arkansas the Red Cross es'
Inmates that 68 per cent Of the victims
are still absolutely destitute. State es'
Inmates make it 80 per cent, with
200, 900 families whose homes have
been wiped out. The Red Cross estb
mates that its present funds will take
care of the refugees up TO November
/. Then what?
President Coolidge. in declining to
call an extra session of Congress, cited
the financial machinery whereby the
borrowing needs of the refugees would
be cared for through the Farm Loan
Board. The plan Of the farm loan
banks for loaning money TO farmers ID
to loan to groups of 10 or more, on
their joint security. each borrower be-
ing responsible for the debts OF all
other borrowers in the group. That
works quite satisfactorily in Commu
mites which are established and IN
dustrious. Their combined credit Is
good. But how does it work In re-
gions where the entire population Is
financially ruined and no basis OF
credit rerIi6i:.-
According to reports. the system has
totally collapsed in the flooded region
In all Louisiana, up TO July 10, only
II refugees had even made appllca
ton for such joint loans. and in Mis-
sissippi only 100. In the condition OF
the victims there exists no basis OF
credit for individual loans, and where
everybody is without credit. merely
combining them does not create credit.
The custom in the South IS Tor local
banks to lend TO farmers upon the Sc
curity of their growing crops. but now
there are no growing crops. Most
local banks are caught with outstand'
ing loans made before the flood. and
now they face total loss Of security.
The problem daily becomes more Sc
rious. What kind of relief is feasible
cannot be determined without deliber'
ate debate. In the meanwhile, the
United States faces these conditions
The present resources Of the Red Cross
will be exhausted by November l and
400 900 refugees (nearly equal to the
of the National Capital
will still be dependent upon that
source for their daily food. while thou.
sands of others, who have bravely re.
turned to their destroyed homes, will
be facing a Winter without resources
and even without any possibility of
finding employment in a region where
they will have to face the competition
Of hundreds of thousands of others in
the same predicament.
What is the most important topic
FOR American thought and provision to.
day? A Rumanian boy, pair of slug.
gers or the Mississippi Valley flood
crisis?
AS Secretary Hoover has remarked.
1T is inconceivable that politics could
enter into the consideration OF the
flood problenna.'