Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-08


tion-wide network OF the Columbia
BroadcaSting System, follows:
The Washington Evening Star has
requested me to discuss a topic which
has claimed almost constant attention
since the beginning of the present ses-
sion of Congress- matter about which,
while members of Congress generally
agree some action must be taken, en-
phatic differences of opinion as to
proper remedies have arisen.
Aside from the general appropriation
bills, measures dealing with unemploy-
snent and drought relief constitute the
principal subjects of legislation. The
two problems are intimately related.
With respect to unemployment. no eff
fort has been made to regulate the
underlying economic causes which have
brought about Nationwide disturbance
and anxiety. My remarks have particu-
lar reference to the surprising and dis
treSsing conditions that prevail in 81
States because of an unusual and pro-
longed drought that has quickly changed
land of plenty into realm of destitu-
ton.
Many Of my hearers no doubt have
difficulty in comprehending why and
how millions of citizens, who only a
year ago enjoyed comparative comfort,
have suffered such a radical change in
their affairs that they are now COM
pelleQ 10 accept assistance.
The direct causes were last years
crop failure and decline in the prices
Of agricultural products below the cost
Of production. In the region where
distress Is greatest, certain unsound
practices have prevailed, as, for in
stance, failure to diversity and reliance
on q single crop. The typical cotton
farmer seldom produces an adequate
supply of feed and food. In the ter
ritory where rice is grown, similar
error has been made. Under favorable
conditions, the production of both rice
and cotton some times has been quite
profitable, but the success of the single
crop system is dependent upon two
factors: First, normal yield, and second,
stability of price. When either is not
realized, prosperity may be quickly fol-
lowed by adversely. When the producer
relies on the money CROP for funds
he often ends the year with an over
draft at his bank and an unpaid ac-
count with his merchant.
Campaigns for prudent Investigation
have been fruitful of notable benefits,
but the movement must be carried
further If agriculture in the South is
to be made secure against unexpected
declines in volume or price of the prin-
cipal products.
Economic Depression.
All forms of business and industry in |
the United States are in the grip of
! 2 major depression. Approximately |
5000 900 workers are unemployed. This |
has substantially diminished the pur-
chasing power of domestic consumers. |
The problems connected with export
trade have been greatly complicated |
and intensified by prohibitive tariffs.
Residents of the drought-stricken |
areas have suffered not only from the |
general decline in prosperity. They
have been discouraged and threatened |
with ruin by a series of floods and
droughts which have rendered their !
efforts futile and their enterprises profit
less.
Floods.
The flood waters of the Mississippi |
River and its tributaries in 1927 brought |
bankruptcy 10 thousands through the |
destruction Of property and loss of
crops. In spite of heroic efforts to
swept away. Expensive levee and |
drainage systems were destroyed Mil /
lions of acres of the most productive |
lands were left exposed to floods and |
burdened with conf1scatory taxes Re-
covery was only partial when the |
drought of 1880 came.
Drought of 1880.
The drought of 1880 was not spec
tacular like flood or storm, but was
far more rllinouS in its results, because
1t was more extensive in area Begin
ming in early May 1t lasted throughout
the Summer. In several States no ap-
preciable rain fell until the harvest sea-
son was at hand. General crop failure
resulted. The damage was greater in
sope communities than in others.
dc NIYNf Ph hut INafN Il
q bale OF cotton per acre, in 1880 yielded
less than a single bale to 80 acres. Corn
did not mature for lack of moisture
Wheat, oats, timothy, clover and alfalfa
withered and died. Live stock was de-
prived Of pasturage. Springs and wells
dried up. Forests were swept with
destructive fires, In addition to this
almost complete failure Of production,
the market price of cotton, rice and
other staple products declined one-half
within a few months The fruit crop
also failed. The largest peach orchard
in the world is in the State of Arkansas.
1t did not mature single carload. The
drought blighted their gardens. Save
In instances where irrigation could be
resorted to, no vegetables or flowers
were grown. Before the LIST of August
many who had been moderately pros
porous faced indescribable want and
suffering.
Failure Of Credit Institutions.
A breakdown of credit institutions
quickly followed. Throughout the ter
ritory badly affected by drought, loans
were discontinued Collections became
impossible, and both State and National
banks were compelled to close their
doors. Assets became frozen The COL
lateral for loans made in flush times
diminished in value. Bank depositorS
became frightened and runs were COM
menced on many institutions, which re-
suited In numerous receiYershipS. Thou
sands of depositors saw the savings Of
lifetime disappear. Stockholders were
unable to meet assessments. Mercan-
tile establishments formerly of high
financial standing suspended sales on
account TO escape bankruptcy.
Borrowers from land banks under con-
troll of the Federal Farm Loan Board
found themselves unable to make their
payments. Lands declined in value, so
that foreclosures found few and only
reluctant purchasers. Thousands OF
farmers lost their homes. The forces
of panic multiplied. Men of wealth be-
came paupers. Purchasing power was
reduced to a minimum. The processes
of disintegrasion still continue. No one
knows when the tide of adversely will
turn back. This Is an incomplete and
not an overdrawn portrayal of condi-
tons in drought sections when the
present session of Congress convened on
the first Monday in December last.
The Problem.
The problems arising from the gen.
eral depression and drought calamity
are too great and complicated to be
solved by simple processes.
They call for comprehensive and de-
cisiVe measures for the stimulation OF