Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-21
DROUGHT FINANCE
FARLEY IS CALLED
Hoover and Barking Groups
Meet Tuesday-Loan Needs
Put at $40, 900, 900.
By the Associated Press.

| BY the Associated Press.
Seeking early definition of the fnan-
cial program involved in the drought
relief organization, President Hoover
will confer next Tuesday with the
banking representatives on the State
, relief committees.
A call for this conference to be held
at the White House went to the drought
States late yesterday
Meanwhile, following the channels
through which Mr.. Hoover directed the
1927 Mississippi food relief, plans went
forward today for establishment of
State or local credit establishment of
arrange loans to farmers through inter-
mediate credit banks where local banks
are unable or unwilling to carry the
financial load.
Per Cent Maximum Interest.
The maximum interest which the
credit corporation would be permitted
to charge farmers, under the tenta-
tive plan proposed at the first meeting
of the National Drought Committee
yesterday, would be per cent. This
is per cent more than the interest
charged by the intermediate credit
turned over.
Under present plans loans would be
granted farmers on easy security with
Reimbursement of the credit agencies.
In event the banking representatives
Of the State committees agree upon the
proposal, the Federal Farm Loan Board,
which supervises intermediate credit
banks. viii supervise the creation Of
the credit agencies.
-
would be required to meet loan de-
mands.
100000 for Seed Loans.
Henry NJ Robinson, Los Angeles
banker, whose task as a member of the
National Drought Relief Committee will
be to coordinate the State and Fed.
eral financial relief measures, was ex-
pected to attend next weeks meeting.
Announcement was made by Secre-
tary Hyde, chairman Of the National
OF $6,000,000 fund created at the last
session of Congress for food relief and
storm relief in more than O dozen
States, will be used for seed loans to
| drought-stricken farmers. Under the
terms Of the act, however 1t can be
used only in Virginia, Ohio, Indiana,
Missouri and Montana OF the drought
States.
The emergency feed and live stock
| railroad freight rates now In effect
in the East and South will be extended
TO Western drought States on Friday.
Virginia Survey Suggested.
A suggestion that Secretary Hyde
chairman of the National Drought Re-
| lief Committee, make a personal survey
Of conditions in Virginia was made to
the President today by Bascom Slemp
of that State.
Slemp, who was secretary to President
| Coolidge, described the situation in the
! Old Dominion State as serious, with the
| immediate problem of the prevention OF
wholesale selling Of cattle and the sup
plying of feed to live stock areas.
He predicted the Red Cross would
have big Job on its hands In Virginia
Scattered showers over the plains
Bureau today as having aided in reliev-
ing drought conditions during the past
"a hours.
Thunderstorm at Cleveland.
Rains were reported from Western
North Dakota and Northeastern South
Dakota, Central and Eastern Iowa and
Southwest Wisconsin with light showers
In the vicinity of Oklahoma City, Okla.
and Northeastern Texas.
There we're showers in the upper Ohio
Valley with thunderstorm at Cleve-
land which brought SO inch Of rain.
Showers were reported also from ex-
treme Northern Michigan.
Additional showers were forecast fol-
Western Iowa tonight and for Contra
Iowa tomorrow, for Western Minnesots
tonight, Eastern Minnesota tomorrow
and for Eastern North Dakota anc
Eastern Nebraska tonight.