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1It is assumed that an individual earns at least $200 in each year of coverage. If this were not the case, the benefit would be somewhat lower.

Benefits under the old age and survivors insur- man of the Social Security Board. All funds colance system are financed by equal taxes on the lected from the old-age and survivors insurance employer and the employee. They are based on the taxes are appropriated to this trust fund. employee's wages (exclusive of amounts in excess

Administration of old-age and survivors insurof $3,000 received in any one year). The rates

ance necessitates maintaining a continuous Wage for both the employer and the employee are i per

record, under a separate account number, for each

employee until he is eligible for benefits, in order cent of the employee's wages until 1943 when to determine his average monthly wage receved the rate is increased one per cent for each. It will in covered employment. Every three months embe increased an additional one-half per cent each ployers report the amount of each employee's three years thereafter until the maximum of 3 wages, with his name and account number, to the percent for the employer and 3 per cent for the Bureau of Internal Revenue, when they pay the employee is reached in 1949.

employer's and employee's taxes. The Bureau forThe Act as amended in 1939 establishes a Fed. wards these reports to the Social Security Board eral Old-Age and Survivors Insurance Trust Fund where each employee's wages are recorded to his in the Federal Treasury to be supervised by a board account Wage record accounts had been estabof trustees consisting of the Secretary of the Hished for approximately 56,000,000 persons by the Treasury, the Secretary of Labor and the Chair- end of the 1941 fiscal year.

EMPLOYMENT SECURITY The employment security program for which the Employers subject to the Federal unemployment Social Security Board is the Federal administrative tax are allowed credit (up to 90 per cent of the agency combines the two functions of placement of amount of the tax) for their contributions to workers through the public employment service and State unemployment funds. the payment of unemployment compensation bene- The establishment and administration of State fits to unemployed workers qualified under their unemployment compensation systems is whony State unemployment compensation laws.

within the province of the State. The Social SeThe Social Security Act provides for Federal co- curity Act merely sets certain minimum standards operation in the establishment and mantenance which the State law must meet if the State is to of State unemployment compensation systems. receive Federal cooperation. By July 31, 1937, This cooperation is manifested in two ways: pro- all States and Territories had enacted unemployvision is made for grants to the States to cover the ment insurance laws and qualified for Federal cocost of adıninistering State laws; and employers operation. As of June 30, 1941, more than 32,are allowed credit for their contributions to a 000.000 employees had wage credits under state State unemployment fund against the Federal un- systems, By July, 1939, unemployment benefits employment tax.

were payable in every State. The Federal unemployment tax is an excise tax

Total unemployment benefits pald out by States levied on the payroll of employers with eight or

since the program first started amounted to more employees. It amounts to 3 percent of

$1.540,346,539 by June, 1941. The employment serwages paid (exclusive of amounts in excess of

vice was established by the Wagner-Peyser Act of $3,000 paid to one employee in one year). Wages

1933 and provides for Federal cooperation in the paid for certain types of employment are ex

establishment and maintenance of State employempted from this tax. The exceptions include: agricultural labor; domestic service; casual labor

ment services; the Federal Government paying not in the course of the employer's trade or busi

part of the administrative costs of the State ness; services on both American and foreign ves

agency. sels; service in the employ of a foreign government The employinent service is not restricted to emor its instrumentalities; employment for Federal, ployers and employees covered by unemployment State and local governments and certain of their compensation. Its facilities are available to all Instrumentalities; family employment: service by employers and employees in the State. All States insurance agents, service by newsboys under 18: and Territories now have employment service and certain part-time itinerant employment providing are receiving Federal cooperation under the terms only norninal wages such as service for fraternal, of the Wagner-Peyser Act. By June, 1941. more and beneficiary associations and for schools and than 1.500 full-time public employment onces had colleges by regular students, and services for cer- been established in cities and towns throughout tain charitable, religious, educational and scien- the country. In addition there were more than tific organizations not organized or conducted for 3,000 part-time and itinerant offices serving workprofit.

ers in less populous areas.

PUBLIC ASSISTANCE The Social Security Act makes provision for The States adopt and administer their own pubgranting Federal funds to the States to aid them lic assistance plans. Each State plan is submitted in giving financial assistance to three groups of to the Social Security Board, and il found to meet needy persons--the needy aged, the needy blind certain standards set forth in the Federal act it is and dependent children. The Federal grant in approved by the Board, and the State becomes ehieach case is based on the amount the State spends gible for Federal grants, Standards for State for its program up to a maximum assistance pay- plans specified by the Federal act are designated ment per individual, The amendments of 1939 to assure efficient administration and equitable Increased the maximum for Federal contributions. distribution of assistance.

OLD-AGE ASSISTANCE For old-age assistance the Federal Government plans and are receiving Federal grants for old-age grants to the State an amount equal to one-half assistance. In June, 1941, the number of recipi. the assistance payments made to each individual ents of this form of aid was approximately 2,170,up to a Federal-State total of $40 a month per 000 and the total payments to recipients from Pedperson, The Federal Government adds 5 per cent eral, State and local funds for that month to its share of assistance payments which the amounted to more than $45.700,000. The average State may use for either administration or assis- old-age assistance payment in June, 1941, was tance. All States and Territories have approved $21.08.

AID TO THE BLIND For aid to the blind the Federal Government | 41 States, the District of Columbia and Hawaii. In grants to the State an amount equal to one-half June, 1941, the number of recipients of this form the assistance payments to each individual up to of aid was approximately 49.800 and total pay. a Federal-State total of $40 a month per person ments to recipients from Federal, State, and local and also pays approximately one-half of the cost funds for that month amounted to about $1,179,of administering the State plan. As of June. 1941, 000. The average payment for aid to the blind in plans for aid to the blind had been approved for June, 1941, was $23.69.

AID TO DEPENDENT CHILDREN For aid to dependent children the Federal Gov- dren had been approved for 42 States. the District ernment grants to the State an amount equal to of Columbia, and Hawaii. In June, 1941, approxione-half the assistance payments for each depen- | mately 917,000 dependent children in 380.000 famdent child up to a Federal-State total of $18 for ilies were receiving this form of aid. Total pay. the first child and $12 for any additional child in ments to recipients from Federal, State and local the same family, and also pays approximately one- funds for that month amounted to about $12,532,half the cost of administering the State plan. As 000. The average payment in June, 1941, was $33.01 of June, 1941, plans for aid to dependent chil- per family.

MATERNAL AND CHILD-HEALTH AND WELFARE Federal funds for three programs to promote : crippled children, and child welfare-operate on

a maternal and child health and welfare, which are

Federal-Slate cooperative basis. The States under the supervision of the Children's Bureau of

adopt and administer their own plans, and rethe United States Department of Labor, were in

ceive Federal grants to help carry on their pro

grams if their plans are approved by the United creased by the Social Security Act and further in

States Children's Bureau. These three programs creased by the amendments of 1939. These three

are now in operation on practcally a Nation-wide programs--maternal and child health, aid to scale.

MATERNAL AND CHILD-HEALTH SERVICES A sum of $5.820,000 is authorized for grants to appropriation is to be used for extending and im. the States for maternal and child health services proving State and local health services to mothers to be carried on especially in rural areas and in and children and for demonstration services in areas suffering from severe economic distress. This needy areas and among groups in special need.

SERVICES FOR CRIPPLED CHILDREN An annual appropriation of $3,870,000 is author- economic distress, services for locating crippled red for grants to States for services for crippled children and for providing medical and surgical children. This appropriation is to be used to en- care, hospitalization, and after care, for crippled able the states to extend and improve, especially children and for children suffering from condiin rural areas and areas suffering from severe tions which lead to crippling.

CHILD WELFARE SERVICES An annual appropriation of $1,510,000 is author- local child-welfare services in areas predominantly ized for grants to States for welfare services for rural, and for developing State services for the the protection and care of homeless, dependent, encouragement and assistance of adequate methods and neglected children and children in danger of of community child-welfare organization in areas becoming delinquents. This amount is to be al- predominantly rural and other areas of special lotted by the Secretary of Labor to the States, need. The Social Security Act provides that the largely on the basis of rural population. The State plans for child-welfare services are to be amount so allotted is to be expended for payment developed jointly by the State agency and the of part of the cost of district, cqunty, and other Children's Bureau.

PUBLIC HEALTH SERVICES The Social Security Act provided for extension of the respective States. This money is used by the

States for extending State health department serFederal aid to the States in the establishment and

vices, for assistance to counties and other governmaintenance of adequate State and local public

ment units in maintaining adequate public health health services. Federal funds for this purpose

programs, and for training health officers, nurses, were further increased by the amendments of 1939.

engineers, and other public health workers in Under the amended Act, the sum of $11.000.000 is modern methods of public health and administra. authorized to be appropriated for this purpose each

tion. All of the States, Alaska, Hawaii, Puerto year.

Allotments to the States are made by the Rico and the District of Columbia are matching Surgeon General of the United States Public Federal funds and receiving the cooperation of the Health Service on the basis of population, the spe. Federal Government in the extension of their pubcial health problems, and the financial needs of

lic health programs.

VOCATIONAL REHABILITATION Provision is made in the Social Security Act for 1939 an annual appropriation of $3.500.000 is

authorized for the purpose of making grants to extending and strengthening programs of voca

the States for vocational rehabilitation purposes. tional rehabilitation of the physically disabled, so

This program is administered by the Office of Eduthat vocationally handicapped persons may, when

cation, Forty-eight States, the District of Coever possible, be trained and placed on a self

lumbia, Hawait and Puerto Rico are receiving supporting basis,

Under the Act as amended in Federal funds for vocational rehabilitation.

ADMINISTRATION The Social Security Act established the Social social security program. This Board of three Security Board as the administrative agency to members is appointed by the President, by and have jurisdiction over the old-age insurance, un- with the advice and consent of the Senate. Under employment compensation and public assistance the President's First Reorganization Plan, effecfeatures of the Act. Another duty of the Social tive July 1, 1939, a new organization was created Security Board is to study and from time to time with the title of "Federal Security Agency, make recommendations to Congress concerning within which was included the Social Security methods of better promoting the objectives of the Board.

United States Grants to States for Public Assistance Source: Advances for the fiscal year 1940-41 certified to the Secretary of the Treasury by the

Social Security Board

Old-age Aid to Depen- Aid to the
State
Assistance dent Children

Blind

Total Alabama. $1,204, 142.73 $563,256.84

$36,168.22 $1.803,567.79 Alaska.

271,974.69
(a)
(a)

271,974.69 Arizona

1,475,522.30
524,751.50

64,422.24

2,064,696.04 Arkansas.

1,084,825.18
490,617.53

60,093.46

1,635,536.17 California.

35,844,058.74 3,698,342.61 1,867,985.66 41,400,387.01 Colorado. 7,183,176.88 1.133,643.37

119,619.75 8,436, 440.00 Connecticut. 2,952, 482.461 (a)

30,596.24

2,983,078.70 Delaware..

168,824.79
127,156.04

(a)

295,980.83 District of Columbia,

543,827.11
222,210.21

38,818.75

804,856.07 Florida.

2,892,206.70

490,421.92 214,181.50 3.596.810.12 Georgia.

2,144,461.62
628,377.57

104,466.81 2,877,306.00 Hawail.

149,251.26
270 619.10

8,184.09

428.054.45 Idaho..

1,273,648.64
564,058.34

40,893.28 1.878,600.26 Mlinois.

19,445, 256.08
(8)

19,445.256.08 Indiana. 7,494,931.47 2,909,610.58

322,788.18 10.727,330.23 Iowa

7,257.796.18

(a)

228,496.92 7,486,293.10 Kansas 3,412,240.99 1,097,461.65

196,881.74 4.706,584.38 Kentucky.

3,066,337.50

(a)

(a)

3,066,337.50 Louisiana 2,554,703.88 2,296,149.36

125,723.24 4,976,576.48 Maine.

1,718,628.81
330,814.10

156,904.72 2,206,347.63 Maryland 1,982,712.79 1,455,513.38

90,169.82 3,528,395.99 Massachusetts 15,332,914.80 2,840,205.88

171,133.91 18,344 254.59 Michigan. 8,144,486.08 3,977,974.60

152,964.49 12,275,425.17 Minnesota 8,184,608.56 1,956, 132.07

171,474.37 10,312,215.00 Mississippi.

1,359,228.89

54,057.50

54 9.9

1,468,136.36 Missouri 10,829,063.92 2,166,936.32

12,996.000.24 Montana

1,468,610.56
445,119.88

31.735.29 1.945,465.73 Nebraska. 3,286,905.90 1,069,191.07

91,818.48 4,447,915.45 Nevada.

385,329.25

(a)
(a)

385,329 25 New Hampshire.

870,547.10
138.844.08

47,911.77 New Jersey

1,057,302.95 3,938,896.31 2,004,673.08 125,635.74

6,069,205.13 New Mexico.

501,886.60
345,056.43

27.635.34

874,528.37 New York. 17,921,506.16 6,483,433.07

478,431.87 24.883,371.10 North Carolina.

2,346,810.84 1,028,816.90 199 734.20 3,575,361.94 North Dakota.

931.190.93
498,606.25

34,327.82 1,464,125.00 Ohio.

19,066,327.73 2.072, 736.79 520,079.64 21,659.144.16 Oklahoma.

9,288,230.76 1,918,166.65 248,243.96 11,454,641.37 Oregon.

2,571.265.62
376,518.84

68,303.23 3,016,087.69 Pennsylvania, 12,537,593.10 10,285,863.39

(a)

22,823,456.49 Rhode Island

858,711.98
298,840.21

9,235.01 1,166,787.20 South Carolina.

847,500.88
297.659.30

52,747.42 1,197,907.60 South Dakota.

1,754,100.99
127,908.52

28,942.64 1.910,952.15 Tennessee.

2,511,039,00 1,609,047.05 111,447.16 4,231,533 21 Texas.

10,276,622.66

(a)

(a)

10,276,622.66 Utah.

2,057,597.17
727,410.70

31,598.96 2,816.606.83 Vermont.

573,391.81
120,508.30

20.979.60

714.879.71 Virginia.

1.281.131.83
596,270.12

85,806.18 1,963.208.18 Washington 7,295,761.89 1,015,011.17

206.948.98 8,517.722.04 West Virginia. 1,586,436.73 1.482,993.51

97,415.47 3,166,845.71 Wisconsin. 7,231,751.29 2,096,637.56

283,431.14 9,611.819.99 Wyoming

514,427.55
154,544.00

23,923.99

692,895.54 Total.

259,874,887.69 62,992,167.34 7,073,151.25 329,940, 206.28 (a) No plan approved by the Social Security Board.

Public Relief Expenditures—Jan., 1933 - Dec., 1940

Source: Social Security Board, Bureau of Research and Statistics

Assistance to recipients
Special types of

public assistance
Old-agel Aid to Aid to Gen-
assist - dep. the eral
ance chil- blind relief

dren

Total

Earnings of persons emp. under Fed. work programs

Other Federal

agency Civilian Work projects Conser-1 Proj- financed vation ects from Corps Adminis

emertration gency

funds

1933 January-June..

July-December 1934 January-June..

July-December. 1935 January-June..

July-December. 1936 January-June.

July-December. 1937 January-June.

July-December 1938 January-June..

July-December 1939 January-June..

July-December. 1940 January-June.

July-December.

Amount (in thousands)
$467,167 $13,425 $20.722 $2,901 $403,200 $24.853

756,1621 12,646 19,782 2,938 355,552 115,883
1,260,398 14,3171 20,254 3,237 464,941 118,421
1,134,605 17,9271 20,432 3,836) 735,419 142,536
1,260,935 29,105 20,588 3,890 852,878 139,491
1,285,879) 35,861 21,139 4,080 580,302] 193,360 $238,018
1,573,835 52,763 23,309 6,021 248,767 153,279 816,900
1,560,849 102,478 26,345 6,792 190,237 139,118 775,139
1,450,603 141,305 32,322 7,568 211,684 131,504 680.174
1,212,962 169,137 38,129 8,603 195,197 114,252 506,092
1,495,571| 191,038 46,556 9,121 256,279 111,236 731,248
1.746.063 201,346 50,886 9,837 219,924 119,0821 1,019,588
1,743,201 211.608 56,195 10,267 252,863 118,477 919.000
1,444,391 218,872 58,574 10,485 228,884 112,036 646,224
1,452,766 231,402 84.332 10.791 223,370) 108,341 683,871
1,271,358) 243,609 68,847) 11,0341 180,3161 107,505) 585,123)

$30,718 111,046 178,508 129,689 174,512 227,848 286,238 181,354 182,932 106,621

85,135 122,407 128.220 63,651 31.763

United States Unemployment Trust Fund
Source: Official Records, Social Security Board; data are as of June 30, 1941

Paid in by Em- Benefits Paid Interest on Balance in
ployers

Out

Excess

Trust Fund Alabama

$39,229,843 $19,010,000 $1,127,540 $21,347,384 Alaska

2,265,625
1,113,378

73,198

1,225,444 Arizona

9,147,522
5,553,235

236,471

3,830,758 Arkansas.

13,783,921
7,357,846

502,310

6,928.384 California 323, 704,623 169,613,779

11,856,959 165,947.803 Colorado

20,829,283
10,773,040

849,386

10,905,629 Connecticut.

75,900,000
24,841,996

2,524,414

53,582,418 Delaware.

9,912,814
2,408,070

426,960

7,931,705 District of Columbia.

27,570,451
7,330,229

1,343,270

21,583,492 Florida

26,910.821
13,533,551

942,050

14,319,320 Georgia

36,737,192
12,938,699

1,549,767

25,348,261 Hawali.

8,039,263

766,881

377,714 7.650,095 Idaho

8,478,064
6,233,014

247,438

2,492,488 Illinois

290,848,014
90,814,014

12,569,159 212.603.159 Indiana 92,753,113 42,039,592

3,280,406 53,993,926 Iowa

33,484,000
15,832,341

1,198,949

18,850,608 Kansas,

22,600,597
8,054,508
1,016,575

15,562,663 Kentucky

46,184,000
13,992,978

2,080,792

34,271,814 Louisiana

39,145,000
21,154,639

1,348,187

19,338,548 Maine

17,227,000
12,255,337

328,986

5,300,649 Maryland

51,393,000
26,370,347

1,363,154

26,385,807 Massachusetts.

174,665,000
90,712,726

6,093,118

90,045,393 Michigan 204,214,675 112,831,486

5,175,365 96,558,554 Minnesota

55,736,763
33,311,982

1,754,466

24,179,247 Mississippi.

11,024.979
6,627,413

343,681

4,741,247 Missouri

83,919.668
20,346,464

3,700,407

67,273,611 Montang.

11,577.697
7,171,104

432.633

4,839,226 Nebraska

14,644,136
5,796,585

681,897

9,529,448 Nevada

3,879,820
2,961,735

116,946

1,035,031 New Hampshire,

14,374,068
8,018, 106

487.181

6,843,143 New Jersey

187,595,000
42.193,521

8,078,401 153,479,880 New Mexico

5,965,000
3.509,545

223,074

2,678,529 New York 533,034,264 312.157.977

15,703,073 236,579,360 North Carolina.

49,536,000
20,903,334

1,542,403

30,176,069 North Dakota

3,998, 258
2,158,480

165,708

2,005,486 Ohio

242,438,575
64,678,006

10,981.985 188,742,554 Oklahoma

27,911,000
10,619,133

1,267,682

18,559,549 Oregon

27.768,220
16,510,392

735,324

11,993,152 Pennsylvania 346,125,000 193,198,999

9,104,742 162,030,743 Rhode Island

39.950,728
25, 226,992

880,793

15,604,529 South Carolina

19.605,000
6,690,744

835,544

13,749,800 South Dakota

4,562,000
7,416,804

222,179

3,367,374 Tennessee

36,645,000
20,981,440

1,073,330

16,736,890 Texas

93,483,000
37.627.030

3,801,615

59,655,585 Utah

11,509,368
7,036,970

295, 445

4,767,837 Vermont

6,478,474
3,007,074

225,063

3,696,463 Virginia

41,786,000
20,228,850

1,393,050

22,950,200 Washington

44,275,603
21,319,679

1,655,510

24,611,434 West Virginia 44,053,468 23,211,586

1,102, 702

21.944,583 Wisconsin

79,616,664
23,014,430

4,750,860

61,353,095 Wyoming

5,543,655
3,542,040

186,711

2,188,327 Railroad unemployment insurance account.

238,996.702
55,000,000

3,261,278 187,257,980 Grand total.

3,861,057,930 1,713,998,110 131,515,856 2,278,575,676

[graphic]

U. S. Grants to States for Employment Security Source: Federal grants to States for administration of unemployment compensation laws and State employment services: for the fiscal year 1940-41 certified by the Social Security Board to the Secretary of the Treasury. Wagner

Wagner-
State

Peyser
Title III
State

Peyser

Title III Alabama. $65,000.00 $644,287.25 Nebraska..

$35,609.89 $355,373.74 Alaska. 10,000.00 63.849.29 Nevada

10,670.28 162,793.31 Arizona. 13,040.00 270,743.68 New Hampshire.

13,122.32 319,164.65 Arkansas 44,920.26 451,696.60 New Jersey

102,094.91 2,841,440.39 California 143,437.50 4,682,703.62 New Mexico

10,489.84 184,059.64 (Colorado 26,000.00 453,304.43 New York.

304,916.00 8,330,869.58 Connecticut. 40,593.34 1,344,954.44 North Carolina.

84.176.67 1,069,911.87 Delaware. 11,023.75 213,302.16 North Dakota.

16,500.00 206,761.78 Dist. of Col.

313,000.18
Ohio...

128.968.25 3,373.360.75 Florida. 36,565.19 622,889.35 Oklahoma.

58,960.74 607,058.37 Georgia. 75,000.00 888.107.00 Oregon..

24,094.16 774,477.76 Hawaii 15,000.00 115,911.38 Pennsylvania,

273,395.03 5,559,341.30 Idaho. 11,243 68 253,303.73 Rhode Island

17,366.94 714,028.27 Minols 194.835.00 4,707, 912.76 South Carolina.

42,118.44 529,269.70 Indiana. 81,812.11 1,624,316.43 South Dakota.

16,791.32 153,64-1.21 Iowa. 69,772.52 554,722.77

Tennessee.

76,214.03 912,682.51 Kansas 65,415.00 414,706.27 Texas..

183,546.40 2,080, 284.64 Kentucky 67,423.75 764,960.20 Utah..

12,300.96 284,603.61 Louisiana. 50.906.10 741,281.62 Vermont.

10,000.00 219,292.30 Maine. 19,400.00 447 296.97 Virginia

59,790.00 860,165.73 Maryland 40,000.00 779,337.19 Washington

39,495.58 987,319.69 Massachusetts 103,366.69 3,145,840.62 West Virginia.

45,000.00 772,003.57 Michigan.. 123,954.96 2,929,283.02 Wisconsin.

74.247.75 1,015,700.62 Minnesota. 62,254.27 1,246.178.90 Wyoming.

10,000.000 167,056.59 Mississippi

48,683.46 389,263.44 Missouri 110,764.40 1,627,871.07 Total.

$3,183,856.89 $62,447,809.08 Montans.

13,580.20 277,200.13

Agricultural Adjustment Administration AAA—Agricultural Adjustment Administration, R. M. Evans, Administrator-Address, Washington, D. C.

The Agricultural Adjustment Administration is lent; forestry practices, including the planting of an agency of the Department of Agriculture which trees, maintenance or improvement of standa, is responsible for administration of certain pro- restoration of nongrazing, and woodland rehabiligrams designed to raise farm income to a level

tation, on nearly 525,000 acres; erosion-control more equitable with nonfarm income, to conserve practices, including terracing and contour ridging soil resources, and to protect generally the interests on nearly 42,000,000 acres-among others, these of producers and consumers of farm products by practices consisted of strip cropping and fallovine providing for adequate and stabilized supplies of on almost 6,000,000 acres, contour listing on about food and fiber at fair prices.

8,000,000 acres, protecting summer fallow on almost Legislation which authorizes the programs of the 8,000,000 acres, and contour farming intertilled Agricultural Adjustment Administration includes crops on nearly 8,000,000 acres. In addition, provisions of the Soil Conservation and Domestic almost 75,000 dams and reservoirs were constructed Allotment Act, the Agricultural Adjustment Act of A special practice to encourage the growing of 1938, the Sugar Act of 1937, and related legislation. home gardens was adopted on more than 651,600

The program is made effective by the cooperation farms of farmers who adopt its provisions on their in- The agricultural conservation program is financed dividual farms and administer all phases of the by appropriations by Congress, as authorized by program locally through committees elected from the Soil Conservation and Domestic Allotment Act. among those participating. More than 6.000.000 Section 303 of the Agricultural Adjustment Act of farmers, whose land represented 80 percent of the 1938 authorizes price adjustment or **parity" paytotal cropland of the Nation, voluntarily co- ments on the five crops named as basic in the actoperated in the 1941 AAA program. Thus they cotton, corn, wheat, tobacco, and rice-11 and whet became members of more than 3.000 county con- appropriations are made therefor. Such payments servation associations, which in turn included about are made to supplement and bring nearer to parity the same number of county committees and more levels the income of producers. than 24,000 community committees. These 135.000 Estimated payments under the 1940 agricultural committeemen assist in formulating the program, conservation program total nearly $443,000,000. and administer it, and provide a direct means of in- price adjustment payments, made and estimated to forming farmers quickly and accurately on pro- be made, amount to nearly $197,000,000. duction needs and methods of fulfilling them.

Under the Ever - Normal Granar in, the AAA Early in 1941, the organization and methods is charged, through the Secretary of Agriculture. developed by farmers during the last eight years with the maintenance of continuous and stable provided the means by which the Ever-Normal supplies of major agricultural commodities at Granary program could immediately be expanded prices fair to both farmers and consumers. This into a food program to meet the increased de- is accomplished through acreage goals based on mands of national defense and aid to nations market requirements, and by maintaining reserves resisting aggression. Chairmen of AAA State and of staple crops stored under loans from the Comcounty committees were appointed to head up the modity Credit Corporation Loans on 1941 basic defense boards which the U. S. Department of crops were made at average rates of 98 cents per Agriculture established in each State and county bushel on wheat: 14.02 cents per pound on cotton: to correlate farmers' efforts with the national 92 cents per bushel on rice; corn rates not yet defense program.

announced; tobacco rates which, like loans on the Farmers were encouraged to use existing large other basic crops are made at 85 percent of supplies of feed stocks to increase production of parity, vary by types but are higher than for 1940. high-protein foods such as livestock, dairy products, Loans were also made available on non-basic crops and poultry. In line with its integral principle of such as flax, barley, and rye. adapting the program to fit national needs, pro- When the supply of cotton, corn, wheat, tobacco. visions of the AAA program were amnended to or rice, reaches the level specified in the act of stimulate production of tomatoes for canning, corn, 1938, thus threatening glutted markets and peas, and snap beans grown for processing: flax, collapse of farm prices, the Secretary of Agriculture dry edible beans, soybeans, and peanuts for oil, must proclaim a marketing quota for that comLikewise, the 1942 AAA program has been drafted modity, subject to approval of two-thirds of the to encourage the necessary production of

the affected farmers voting in a referendum. Quotas needed foods.

for peanuts must be proclaimed each year. If the The principal methods used in accomplishing required majority of farmers vote in favor of using the purposes of the AAA program are: Acreage quotas, they go into effect for the ensuing marketallotments to insure a production of major food, ing year and a penalty is applied for marketirg in feed, and fiber crops adequate to meet domestic, excess of the quota. export, and reserve requirements, payments to During the 1940-41 marketing year, quotas were assist farmers in meeting the costs of practices in effect for cotton and flue-cured and burley which prevent erosion and maintain soil fertility: tobacco; farmers also voted in favor of using parity payments to help bridge the gap between quotas during 1941-42 in marketing cotton and market price and parity price for basic farm wheat, as well as for the following crops for which products; loans on crops stored in the Ever-Normal the use of marketing quotas has been approved for Granary; and marketing quotas when needed and a 3-year period: Flue-cured, burley, dark air-cured, approved by producers.

and fire-cured tobacco; and peanuts. The program seeks to promote soil conservation The sugar program was authorized by the Sugar by adjusting acreages of highly exploitative and Act of 1937, the principal provisions of which intertilled crops and by encouraging farm prac- terminate Dec. 31, 1941, unless extended by the tices that check erosion and improve the soil. Congress. The program's primary purposes are to

National goals for soil-depleting crops are estab- promote the welfare of persons engaged in the lished and allotted among individual farms. The domestic sugar-producing industry, to protect the 1941 goal for total soil-depleting crops was set at consumer, and to promote foreign trade. These 270.000.000 to 285.000.000 acres. National goals for ends are accomplished through a quota system principal soil-depleting crops were as follows: 1 regulating imports of sugar into and the marketCotton, 27.000.000 to 29.000.000 acres; corn, 88.000,- ing of sugar in the United States, and through an acres; :

to excise-tax, conditional-payment structure designed 65.000.000 acres: tobacco, flue-cured, 750.000 to to bring about a more equitable distribution of 800,000 acres; burley. 370.000 to 390,000 acres; fire- income among growers, processors, and laborers. cured, 80,000 to 90.000 acres; dark air-cured, 32,000 Closely allied to the AAA wheat program is the to 36,000 acres; Virginia sun-cured, 3,000 to 3,200 insurance program of the Federal Crop Insurance acres; cigar filler and binder (except types 41 and Corporation against unavoidable losses of the wheat 45), 60.000 to 63,000 acres; type 41. 30,000 to 31,000 crop. Beginning with the 1942 crop, insurance may acres; Georgia-Florida type 62, 2,500 to 3,000 acres; also be applied to the cotton crop. "All-risk" inPuerto Rican, type 46, 35,000 acres, potatoes. 3.1 surance on the 1940 wheat crop was taken out by million to 3.3 million acres; peanuts. 1.58 million nearly 361,000 growers; for 1941, this number in. to 1.63 million acres; and rice, 880,000 to 900,000 creased to over 421.000. Over 14,000,000 bushels acres.

were paid as insurance premiums for an estimated Conservation practices carried out under the 1940 guaranteed production of nearly 111.000.000 bushels. AAA program included: New seedings of legumes Also allied to the AAA farm program, but car. and grasses on over 41.000.000 acres, green manure ried out under the supervision of other offices of and cover crops, over 21,000,000 acres: reseeding the United States Department of Agriculture, are of pasture and range land by deferred grazing and the marketing agreements program; the distrithe application of seeds, more than 31,000,000 bution of surplus agricultural commodities, inacres; application of about 936.000 tons of 16- cluding the Food Order Stamp Plan; the naval percent superphosphate or its equivalent and over stores conservation program; and programs to 12,000,000 tons of ground limestone or its equiva- encourage the export of farm products.

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