SERIOUS LOSSES

Manawatu Standard, Volume L, Issue 221, 14 August 1930, Page 7

SERIOUS LOSSES

THE AMERICAN DROUGHT. SITUATION MORE ALARMING. FOREST FIRES SPREADING. (United Press Association—By Electric Telegraph.—Copyright.) WASHINGTON, Aug. 12. The announcement by President Hoover that he fears a greater loss of crops than the seven per cent, predicted by the Agricultural Department, and a three per cent, increase in the price of'maize on the Chicago market to a dollar a bushel for December deliveries, are the high lights of the national drought situation. The President stated to-day that be was cancelling his holiday plans, end would remain at the centre of rebel activities, giving special attention to the problem created-by the diminution by 690,000,000 bushels of the maize .crop, and the immediate shortage of food i'n Kentucky and fe.mes.see, where conditions are believed to be most serious. On Thursday and L< >'iJay President Hoover will confer with the State Governors and farm organisation representatives on problems arising out of the situation.

Minnesota, Wisconsin, and Michigan to-day were added to the States in which serious, forest fires are raging. The Province, of Saskatchewan, Canada, also reported files that were out of control.

Another agricultural product which is seriously affected by the drought is butter, the production of which has been gradually decreasing since June 1, and the price, of .which has arisen five cents, since July 1. , Cleveland lias reported an increase of a cent, a quart for milk.. Vegetable prices in New York increased 20 per cent, over the week-end, with diminished supplies from Eastern sources and the necessity for Western and Southerti importations. An interesting twist is given to the drought situation by reports from Utah” and Florida indicating considerable damage from floods, particularly in the latter State, where the overflow of Lake Okeechobee destroyed many crops. " Mr Alfred Thom, counsel of the Association of Railroad Executives, after a call at White House to-day, announced that a reduction of 50 per cent, would be made by the Eastern Railways on bay, feed, water, and live stock tor-the duration of tlie drought emergency. He expressed confidence that the Western Railways would act similarly. . , Mr W. F. Callander, chairman of tlie Agriculture Department’s Reporting Bureau, stated to-day that the loss from the drought placed in bushels and tons in yesterday’s departmental report could not fairly - be estimated in money. He explained the lo~p of corn, flax, and potatoes to be /30,i20,000 dollars at current market prices, •but pointed out that these prices were forced up by the drought. The Government was attempting to guard against profiteering, but he predicted that advanced food prices would continue for months. The destruction ot fruits and vegetables had already resulted in an advance in the price of tinned jpfoducts. Ij'reoh fruits and green vegetables were coming on the markets in poor condition at increased prices. Prices for poultry were higher, and he expected that the full effects would not be felt for some time..,, Farmers iu the neighbourhood- of Philadelphia, in addition to being stricken by heat and drought to-day, suffered, heavy losses from frost, which struck other sections also. A large part of the country has been relieved of the suffering from heat with autumnlike weather, but the Weather Bureau expects no rainfall. Further frosts are feared.