EFFECTS OF DROUGHT.

New Zealand Herald, Volume LXVII, Issue 20642, 14 August 1930, Page 11

EFFECTS OF DROUGHT.

UNITED STATES CROPS.

HUGE LOSSES ENTAILED. / ; BUTTER SERIOUSLY AFFECTED. GRAVE SHORTAGE OF FOOD. By Telegraph—Press Association—Copyright! WASHINGTON. August 12. The President, Mr. Hoover, says lie fears the crop losses due to the drought will bo more than 7 per cent., as predicted by the Agricultural Department. Tbero has been an increase of three cents in the price of maize on the Chicago market to one dollar a bushel for December deliveries. Mr. Hoover has cancelled his. plans for a holiday at)d will remain at the centre of the relief activities and give his special attention to the problem created by the diminution by 690,000,000 bushels of the maize crop, which is the staple article of feed for stock, and to the shortago of food in Kentucky and Tennessee, where the conditions are believed to be most serious. 11 On Thursday and Friday Mr.' Hoover will confer with the State Governors and farm organisation representatives on these and kindred problems arising out of the situation. ' To-day Minnesota, Wisconsin and Michigan were added to the States in which serious forest fires are raging. In the' province of Saskatchewan, Canada, also fires are reported which arc out of control. Decrease in Butter Production. Another agricultural product which is seriously affected by the drought in the United States is butter, the production of which has been gradually decreasing since June 1, and the price of which has risen 5 cents a lb. since July 1. Bran for stock feed has risen six dollars a.ton.

At Cleveland an increase of one cent a quart in the price of milk is reported. The price of vegetables in New \ork increased 20 per cent, at the week-end owing to diminished supplies from eastern sources and the necessity for importations from the west and south. Reports from Utah aiid Florida state that considerable damage has been done by flood.s in those States, particularly in Florida, where the overflowing of the Okcecheebee Lake caused the destruction of many crops. Frost Causes Further Damage. .Farmers in . the neighbourhood of Philadelphia, in addition to being stricken by the heat and drought to-dav suffered heavy losses through a frost, which was experienced also in other sections. A large part of the countiy has been relieved of suffering from heat' by the advent of autumn-like weather, but the officials at the Weather Bureau expect no rain and fear that further frosts will be experienced. Mr." Alfred Thorn, counsel for the Association of .Railway Executives, after a call at White House to-day, announced that a reduction of 50 per cent, will be made on the eastern railways in the freight rates on hay, feed, water and livestock for the duration of. the drought. He expressed confidence that the western railway companies will act similarly. Increased Prices of Foodstuffs. Mr. W.\F. Callander, chairman of the Agriculture Department's crop reporting bufeau, says the loss due to the drought, stated in bushels and tons yesterday in the department's report, could not fairly be estimated in money. He explains that the loss of corn, flax and potatoes will be nearly £150,000,000 at the current market prices, but points out that thoso prices have been forced up by the drought. The Government is attempting to guard against profiteering, but Mr. Callander predicts that advanced food prices will continue for months. 'lhe destruction of fruits and vegetables already has resulted in an advance in price of tinned products. Fresh fruits and green vegetables are coming on to the markets in poor condition at increased prices. Poultry prices also are higher. It is expected' that the full effects will not be felt for some time. A message from Now \ork says the stock market to-day quickly reflected the unfavouarblo reports from the droughtstricken areas. Shares in several great retail trading houses reached new low levels.