Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-28
PRESIDENT BACKS
DROUGHT AID PLAN
Major Relief for Farmers to
Come From Local Banks,
Farley Decides.
BY the Associated Press.

1
President Hoover went over the plans
for extending credit to the drought
stricken farmers at White House
breakfast parley today and put his sup
port behind the program.
AS agreed upon by banking represent
atives on various State relief commit
| tees, the major aid will be rendered by
local banks and credit organizations.
| Steps are under way to get the machin-
cry functioning.
The White House conferees included
Senator Watson, the Republican floor
leader; Henry M Robinson Of Los
Angeles, chairman. of the special Com
mittee of Bankers, which met yesterday,
and Joseph r. Mutt of Cleveland, a
banker and treasurer Of the Republican
National Committee.
Extra Session Opposed.
Watson advised against a special
session of Congress unless 1t were alb
solutely necessary. 1t was agreed no
call was warranted.
Reports from the drought areas were
studied. These showed again the farm
wrought was confined principally to 800
widely scattered counties.
Extension of credit to the farmers
and Red Cross relief to the suffering
is the problem receiving immediate at
tention. Conferees noted that feed was
being sent into the drought areas for
cattle and that cattle were being moved
when necessary to places where feed is
available
There are no immediate plans for
legislation to, meet the drought emer-
gency and it is understood at the Capt.
toll that national and State authori-
ties hoped to conquer the problem with
out any legislation.
The recommendations adopted by the
bankers on the basis Of the report of a
subcommittee headed by Melvin A.
Traylor, president Of the First National
Bank of Chicago, provided first for
employment of the fun credit of local
banks and expansion of existing agri-
cultural credit corporations and Coop
| erative marketing associations. Next,
| where these wer unavailable or made
| quate, the bankers favored formation of
agricultural credit corporations to oper-
ate as loaning agencies under the in
termediate credit banks.
Farm Board Assistance.
The cooperative associations were
advised to use the liberal" financial
assistance offered by the Farm Board.
The findings of the bankers were in
l
President Hoover, at whose instance
they met in Washington to formulate
plans. To the report was appended a
list of facilities available through Fed
eral agencies, prepared by their respec-
tive officials
The Department of Agriculture listed
several relief tasks in which 1t Is en-
gagged, but pointed out that 1t had only
| 100000 in any way available for loans
This amount Is restricted to the 1896
crop In Virginia, Missouri, Oklahoma
and Alabama, being the balance of Q
special appropriation for seee loans ir
Southern States made by Congress last
Winter.
The Treasury reported no funds
available. The Federal Reserve BoarC
promised leniency toward member
banks of the affected region. The
Farm Board listed its facilities under
the marketing act, while the inter
mediate credit banks submitted thu
system under which their loans u
agricultural credit corporations will bt
| made.