The Washington times., 1930-08-08
CASH PLENTY
INSECURITY
IS ANPLE
$326, 900 900 Available Now
Ii Banks and CO.Operaslyes|
Put Guarantees On Notes

The Hoover Administration 70
day was confronted by diff
cult task ia providing emergency
financial relief for farmers IN
dr0uetit stricken areas, despite the
fact that d survey disclosed re-
serve of Sa26, ,OOO, 600 which may
I be drawn upon for loans.
The obstacle which M1enaced
the Administrators relief plans
& IS the flat requirement Of the
8 law that funds Of the intermedi-
4 ate credit banks and the Federal
3 Farm Loan Board must be- made
on good security.
TO comply with the law, It was
pointed out. business men and
Y bankers must Join with resp0n-
y Sible farmers to guarantee the
u leans, and In some instances vir-
s tualIy the entire assets ,of q COM
rnu1ity would have to be pledged.
Seeks s.Exact Data
President Hoover today began
mobiliztnF all Government
agencies to gather exact data :
an the extent Of the prolonged
drought. immediate relief meas
ltres may be started to avert q
possible national disaster.
Fully an hour before Govern
naent departments got started for
the day, the President had
cIoSeted with him three members
Of the Federal Farm Board, sam
4 ueI Il. McKeNie, the wheat mem
ber: W. r. Schilling. dairy mem
her, and C. +. Wilson. fruit mem
ber. The boards general counsel.
Stanley F. Reed, also was pres
ert.
Secretary OF Agriculture Hyde
was called In after this confer
eriCe was over to give the presi-
dent review Of the situation
thus far disclosed to place be-
! fore his Cabinet members.
During the day the President
= will talk to Alexander II. Legge,
y chairman Of the Farm Board,
Il over the long distance telephone.
\, Leege is in Idaho today.
It was said at the White House
z that Mr.. Hoover might defer his
1 contemplated trip to his Virginia
y camp this afternoon until to-
]. morrow SO he can devote all 0f his
= time today to the nsideration
Of the drought situation.
II The conference with the Farm
Board members and General
Counsel Reed revOlved mostly
around the question Of how FAR
the board can legally go In using
ssits funds for relief.
Extremely long time credit for
= feed loans IS being considered.
3 Plans stan IN Air
The Administrators financial
plan was still undetermined after
] 3 conference late yesterday
/. among President Hoover. Secre-
Y, tary Of Agriculture Hyde, Paul
4 Bestor, farm loan commissioner:
4 s. III. Thompson, Of the Anlerf.
3, can Farm Bureau Federation. and
y G. =. Huff. president Of the Farm
!, ers Union.
4 The farm board has already an.
founCed 10 will loan its unpledged
funds, now $97 7,OO0, 900. to the
]. grain sterilization corporation
. .. which would sell livestock feed ia
y farmers on one or two year notes
!. provided business men and 9th
i. ers in community organize ia
J. guarantee repayment.
\ The Federal intermediate credit
IA banks, officials said. have d po
N tential loaning power OF 1885,, 900,
!, O00s out Of which something ovei
4 500 100000 already has been
:, q The credit banks, official,
2 pointed out. are bound by thu
same injunction that caused farm
heard officials to say they viii
finance drought-strtcken farnaers
only il backed BY good security.
Loans Through Banks
Loans may be made to financial
institutions which offer agricul
turaI pledges as collateral. cf tc
producers co-Operatives.
The banks, like the farm board
it was said, could loan money Il
local communities formed an or
ganization to guarantee repay.
llaent.
In this situation. suggestioni
were heard that special session
Of Congress to appropriate $50,
OOO, 900 or 500, 900 900 for seed
and feed loans is the only real
emergency remedy.
The White House has dis
counted reports that q session Will
be called. but 1t appeared Mr.,
Hoover may be faced with strong
demands for such action. Con,
gresS has established d precedent
by lOaning millions to farmers IN
drought and flood odstricken areas
on little or 40 security.
Meantime, Secretary Ce Agticlil
t1re Hyde had under way. d sur.
vey to determine accurately fl1s
situation throughout the drought
stricken areas Of the West, South
and East.
The departments monthly crop
estimate. to be issued Monday,
also IS expected to furnish definite
information upon which the Ad-
nltn1seraeion can formulate IT'S re-
lief plan.
ThO most serious aspect u the
situation nov. according 10 Hyde,
a that the farmers are selling
their stock because 0g lack Of feed
and water. 10 supply feed f0I
them VII - the firEt objective.
- sppsalsd % bankers and others