Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-21
''SURPLUS" STATES
BEING ORGANIZED
Government Begins Move to
Save Cattle in Drought
Area-Pfans Expand.
BY WILLIAM HARD.


: In the drought relief campaign today
Che States with SURPRISES" of crops be-
ian to be organized by the Federal
Government for the prospective saving
Of cattle out Of the States in the drought
area AT the request of the Federal
Cove nment, the governments of several
SSurplus' States are making surveys of
the feed end forage resources of their
States and are preparing, where neces-
sary, for the formation ofs local credit
Societies, which will finance the trans
Ter Of cattle out of the States which
cannot feed them and into the States
which can. Steps toward such surveys
were reported today as having been I'M
dertaken on a considerable scale in
Minnesota by Gov. Christianson and in
North Dakota by Gov. Shafer.
Thus the activities of Federal and
State authorities in the direction of
drought relief, instead of contracting.
are seen here to be steadily expanding
and the policy of Federal officials is
observed to be changing from a cau-
tious minimizing of the effects of the
drought to a frank acceptance of the
large burden which 1t Will place upon
the whole country. Calculations made
in Federal Offices today place the cash
loss in corn in tie drought area at not
less than $500 00000 the hay loss at
me- !eSs than $40.00000 and the pas
ture loss at an indeterminate sum diff
hcult to estimate, but amounting in all
probability to several hundred million
dollars at the least To such losses, it
was pointed out, there must be added
o large number of other losses impos-
Bible to estimate with any accuracy,
such as the decline in the drought area
of the daily amount of milk per COW.
It Is regarded as moderate to go on the
calculation that the drought area has
received q one-billion-dollar blow
Financing Revised Upward"
There was, accordingly. a drastic re-
vision upward today of the amount OF
financing that may be necessary to
bring the drought area back to a nor
NAL condition and to assure the proper
care of its farm animals. In the States
of SURPRISES" of crops and of pastures
the local farmers who may wish to
bring in cattle out of drought-stricken
areas for fattening will, in many cases,
be unable to perform this service out
of their own immediate financial means
and the financing of loans to them for
may be necessary on a considerable
scale. The Federal Farm Board can
In this matter make advances of
money to local co-operatives which, in
turn, can take the notes of their men,
bers.
The financing of drought relief ac-
tivities in the areas of deficit" and
gether, was today seen likely to rise
to a sum not before anticipated. This
financing, it is definitely now made
known, will fall into three main cate
gorieS. There will be advances to
farmers by local bankers in accordance
with the ordinary methods of business;
and these advances, which are expected
to constitute an extremely considerable
part of the whole effort, will be backed
count dealings of the Federal Reserve
System. There will additionally be adj |
vances in amounts which are expected
to keep on Increasing through many |
months to come to the local credit as !
eociations now being formed for the |
purpose OF extending loans to farmers
which will be discounted at the inter-
mediate credit banks of the Federal
Farm Loan Bank system, which in turn
will refinance itself by selling de
bentures" to the general investing pub
lie. There will finally be advances for
appropriate rehabilitation purposes TO |
local agricultural co-operativeS by the |
Federal Farm Board through its proper |
subordinate agencies.
Hundreds of Millions Aid.
There were responsible Federal on |
Gals today who stated that these three |
forms of financing, the burden of all |
Of which must ultimately fall upon the |
general financial resources of the whole |
country, would come in one way or an
other at least to S1o0, 100000. This |
says nothing, it was emphatically |
about the outright relief which |
will be extended to destitute drought |
sufferers by the Red Cross, and which |
will not begin to be required or devel- |
oped on large scale till the pinch of |
inevitable poverty has made itself ire |
sistibly felt and has produced the frank |
calls for complete assistance which are |
regarded as certain to come in the Fall |
and Winter.
That the rest Of the country is
abundantly financially capable of res
cuing the drought region is thought by
Federal authorities to be sufficiently
proved by the ironic fact disclosed to-
day that the money losses In corn and
in hay by the drought region are now
almost exactly equaled by the increase
in cash value which the scarcity created
by the drought has accomplished for
the corn crop and hay crop OF the re-
gions Of surplus"