Ames Tribune from Ames, Iowa • Page 2

MJ5S DAILY TRIBUNE TIMES. AMES. IOWA, THURSDAY. AUGUST 9. "BUY BETTER IN AMES" Ames Daily Tribune-Times my TKlflUNB PCBU8H1NCJ CO.

117 J. i. PfMMtnt and Manager CUM matter at of July City of Amu siderably less, tor that would moan less supervision itrom guardians, tutors, servants, and so on. A cbild who to have $20,000 a year spent on her have as much normal child life and freedom less wealthy youngsters who have (ewer luxuries and more fun. .15 3.7S S.I!" SUBSCRIPTION RATKS City, carrier, weekly City, carrier, one month City, i.arrler.

three City, carrier. nionths City. carrier, one year Story, adjolnlnic counties, swry. adioininis counties. CM year (outside above counties), six Iowa (outiide above counties).

year OuUidt of Iowa, one year All tutwcrlptions must be paid IN ADVANCK. Service will at date of expiration, unless renewed. National Representatives: Corporation. New York-Chicaeo-Des Molnes-Atlanta-Dc- trnit and Pittsburgh. SUSTAINING MEMBER Jfttwnd Ijm tutorial Jissodcdion, IRRIGATION vs.

DROUTH The criticism against new IrrlRation projects which is based on questioning the soundness of opening new land to cultivation while taking other land, particularly marginal land, out of cultivation, may be partly answered by the current serious drouth. Inspection of the general suffering now from almost chronic drouth has revealed startling con- i (cast between the irrigated and non-irriEated zones. The former have been producing while 'he latter burned up. President Roosevelt's siaiement that the great Scanning the News By THOMAS K. CROCKER BETTER MYSTERY TALES A change has been coming in the writing of mys- stories.

They are moving over into the class literature. At least, reviewers tell us that many them now are well with character delineation, sound plot and honest'clues. not. mere compilations of thrills and horrors and illogical solutions. A reviewer in the New York Times says of current book: "It has the good writing editors cry for jjysterles nowadays, and enough fast aciion to suit This book reflects the stiffening demands Of crime fiction readers and editors." The loosely-written "adventure-mysteries" of a years ago, turned out as fast as writers could type or dictate, "are sticking to the bookshop shelves and almost as bard to move as second-rate books iA the 'legitimate' novel field.

It has become evident that a general improvement is about to be forced by pure and simple economics." This evolution is a little surprising. It. might be that the more the public read of the low- grade, sloppy mystery yarns that were so tremen- popular, the lower its critical faculties would sink. Yet they appear to have developed and improved. dam projects he has just visited in 'he northwest are foes to drouth has justification.

A farmer in a drouth-stricken region near Mandan. N. saved himself from disaster by undertaking a little private irrigation project. He made use of a tract of Missouri river bottom land on his place, which he hadn't done much with previously. He installed a pump, used his tractor for power, and constructed irrigation ditches thru this piece of land: Today be has sweet corn, potatoes, tomatoes, cauliflower, cabbage, carrots, onions and other vegetables to market instead of the wheat crop he used 10 raise and which would have bean an utter failure this year.

He expects to get more income from his ten acres of vegetables than lie would get from a section of wheat in an ordinary season. His experience is further testimony to the value of properly used irrigation. Comforting Thot Boone News-Republican: Well, anyway, maybe the drouth will starve the grasshoppers to death. If the country Had to do it over again, there would be fewer stadiums and more houses. CHEER IN ANTARCTICA It is with considerable relief that the public reads of renewed communication between Admiral Byrrl in his snowed-under hermitage and the rest of his party at the Little America base camp.

Radio communication between them has been cut off since July 21. A group which started to go to Byrd at that time forced back by blizzards and inability to find the flag markers planted along the route. Now, radio communication has been restored and a second tractor expedition, this one relying on its own navigation and not on the snow-buried flags, has set out for the advance base where Byrd has been alone thru the Antarctic winter, not yet ended. Byrd himself has said hi would keep a light burning era the pole planted on his roof and would fly a kite carrying a light in the afternoon and evening. 'These items, plus the further news that the temperature on Aug.

4 was only 13 degrees below zero instead of the 71 degrees below of a few weeks ago, indicate that Byrd is safe, that the group joining him will probably complete its journey successfully, and that the weather down there can occasionally be accommodating. Not all stay-at-homes are able to appreciate the full significance and value of Antarctic explorations, but all agree in wanting these explorers to come thru safely. Newspaper Comment Effect Upon Credit Manson Journal: "vVe are now hearing a lot about the new moratorium on farm debts. Under this law, if a farmer owes more than he can pay, he can get an extension of six years on his debts, during which time the holder of the mortgage is barred from foreclosing. This is a fine thing for the man who cow is.

in debt, but how about the man who is not in. debt and wishes to borrow money in order to improve his place? Where will he go to get the money? Banks cannot loan money to farmers who may later take advantage of the moratorium. Does any individual who has money to loan care to place it where it may be tied up for six years, during which time he is barred from making a forced collection? Of course no honest who is able to meet his obligations, will take advantage of it. but how is one to know who is honest and who is not? Long standing heat records were smashed in Iowa Wednesday -when the mercury soared to 115 degrees at Ottuniwa and 111 at Knoxville. Temperatures of 110 were com mon and many cities reported ill and ill.

At only a few places wag there any trace of rain. Crops continued to burn up. Southern Iowa is In a hopeless condition and the cen tral part of the state, on the border of the drouth area, is badly la need of rain. Northern Iowa farmers are literally sitting on top of the world. Their cribs are full of sealed corn.

They are going to get a fine crop this year and a good price for two years production. So it's an ill wind that blows nobody but that doesn't make things easier for those whose hopes have been blasted by a searing sun and clouds that hold no rain. Neither does it make things easier for those in Washington who are struggling to overcome the depression. The drouth has upset crop reduction calculations, burned up farm incomes, increased the relief burden, caused untold physical suffering among people and livestock, set back nomic recovery at least a year. The keystone of the Roosevelt program is restoration of buying power to 30.000.000 people who live on farms.

This was to have been accomplished by small crop reduction on all farms in order to raise prices substantially and distribute a higher agricultural Income over the entire farming area. The drouth will bring much larger incomes where sufficient rain has fallen but deficient incomes in the burned areas. This means ruined farmers and ruined business men, who depend on farm trade. Also it means fewer dollars to spend for the products of industry and fewer jobs for those who w-ork in factories. One bright spot in the picture is the income that drouth-stricken farmers wiir receive from the federal government.

Processing tax payments for voluntary crop reduction will not compensate for crop losses due to adverse weather conditions but in hundreds of cases they will provide some cash income where all else has failed. A LITTLE GIRL'S INCOME "Child's Income Limited to $20,000 A said the headline. The story told of an eight-year-old heiress whose father had been spending twice that amount annually from the trust fund established for her by the youngster's grandfather. An accounting was demanded and the judge decided in favor of the smaller amount until Margery is 12 years old. No one will feel sorry for the child.

She can be very well educated, well dressed, well cared for as to health and recreation, well housed and all the rest, on that sum. Many whole families would consider themselves wealthy if they had as much. Margery herself might perhaps be happier on con- Leave Sales Tax Right Where It Is Humboldfc Independent: Some of the republican candidates may- be sincere in their demands for the removal of the sales tax. But if they are elected to office and find themselves confronted with the necessity of supplying another source of taxation that will create the estimated eighteen million dollars from the sales tax. they will look a while and then leave the sales tax right where it is on the statute books.

And as time goes on they will remove even more taxes from property and place them on sales. You should remember that it was Governor Nate Kendall who vetoed the first proposed gasoline sales Everyone has seen the error of Governor Kendal. The boys who are opposing the sales tax today will also probably live to the error of their wars. Mark Sullivan writes that the drouth has succeeded where the AAA failed, attempts to point out that the hand of nature has wrought an advance of prices that the adjustment program was unable to accomplish. It.

seems to me that anyone who believes that loses sight of the fundamental purpose of the adjustment program, which is to increase agricultural income, not just the income of a few mers who are fortunate enough, to escare adverse weather conditions. Also, Mr. Sullivan is taking the responsibility for a verdict of rather doubtful worth when he declares that the AAA has failed. It cannot be denied that the drouth has been responsible for a strong advance in agricultural prices but it is not true that there had been no advance before the drouth laid its heavy hand upon the farms. The days of 10-cent corn, 30-cent wheat and two-cent hogs were history before this spring, the setback resulting from unsound speculation during May and June 1933 had been overcome and prices were moving upward in an orderly advance.

Paying in Advance Rock Rapids Reporter: There are a lot of farmers in this section who have long complained of the processing tax; who have always insisted that theylpower. It destroys it surplus production has been an annual occurrence since the war. It would be unsound to restrici I production below the limits of safety and there is no disposition ou the part of the agricultural adjustment administration to do so. However, when surpluses pile higher and higher every year and prices go lower and lower, it would be foolish not to attempt some adjustment of production. This the administration proposed to do.

at the same tinje aiming to maintain a reasonable surplus as insurance against an emergency. But no one could foresee a drouth of the magnitude of this one. It never had occurred. It wasn't in the cards. If it has been expected there probably would have been no reduction program but neither would there have been any processing tax 10 distribute among fanners who are otherwise desti tute.

SOPHIE KERR'S SUPERB LOVE STORY By Sophie Kerr It all back to the law of averages. If drouth is the average condition in America, we should plan on drouth. If production far beyond our needs is the average, we should base our plans on that kind of production. We have done that and the plan, despite Mr. Sullivan and other critics, is sound and is succeeding.

BKG1N HICHK TODAY JAM-; TliJUlY return to VurU drd-riulucd 10 mho" hovr Iwnn. Mfirblirt. nod JAUiSOA ihnt ran utiikr of krr llfr. A HIT had born her IICKI trlfnil until HOW- bruUr ihr Jnur hnd forced hint and mnrrlrd ABIT. In IVrwr York Junr po- Illuu In a real ofllrc nntl oun In mnkfuu: Inrpe hna on affnlr UOtiKH mnrrlrd.

bin tiro of him. hr to brar the of Ihrlr child the rott- trmptuoUAly dimnlMHrfl him. Amy lakrn tkr hnbjr. niunrd prnmlnlac nrrrr to IK pnr- tatnKt. Amrrlrn rntrm thr World War tlvn-nrd drrldti lu rolUt In thr aviation Aiuj, brnrt- Irk orrr Impending tlon.

Is oblltfrd to itlnr to romntrncrmcnt dinnrr party nl Jnnr In Jnnr '1'hc otbrr linger on. (iO WITH Till" STOKT CHAPTER XXVII know. I'm not really tired. Don't "We may as well." said Edgar. "I don't believe we'll get any more giuger ale or cake." He patted Amy on the back.

"Don't let old Jane worry anything else." i When (hey bad gone. Amy went "1 suppose 1 am. In a last time she was here it was different. She showed a spark of feeling about when she first came in. that is.

And it amounted to the same thine. 1 suppose, her wanting to provide for Nancy. But tonight, in that prostitute's upstairs to look at Nancy and bragging about the found her peacefully asloep. spread- money she'd made, she eajled on the bed. her nightgown isick.

And the way she leaned over wadded up under her arms. Her to me and put her band on my arm body was long snd sturdy for her reminded me of that scene she age. her hair soft floss against the made that night, before you and I pillow. were engaged, when she kept hold- Amy thousht of -lane In her in on to and havlns hysterics." golden gown wh- had been in the room below hardly more than an "Howard. Jaoe was in love with you.

I think she's in love with you hour sso. and had not asked forj sti11 People in love are bound to I (he child, did not seem to remcm- do wil things." ber hrr existence. It made her feel strange and she began to think 'VE told you a thousand times that Jane was never really in love with me, or anyone eicept MORELAND addressed more absorbedly of Jane, recalling his wife. "Don't pay any alien- the 'lays before Nancy was born, tion to Amy. Alice." he said.

"Amy only time she could remember herself. I merely happened to be- wouldn't admit the truth about 'hen Jane had been completely Jane. They were always downright and honest. But as at least Amy was Jane's friend. But soon as the child was born she had around, so she worked up a situation with herself as prlma donna." "No, you're not fair to Jane.

Charles B. Ash. secretary of the Ames Building and Loan association. wjJl be the special representative of the United States Building and Loan league in its membership drive in this territory, it was announced Thursday by Clarence T. Rice, of Kansas City, general membership chairman of the league.

The campaign for enlisting more building and loan associations in the unified program of the national organization will culminate at New Orleans when the national convention is held there October 24. 25 and 26. A silver loving cup will go to the individual bringing the largest number of associations nto the membership ranks b-rtween now and that deadline. Mr. Rice's letter announcing the ocal appointment calls attention the emphasis now being placed 3y the federal government, upon jome repairing, remodeling, and juilding as means of promoting recovery.

The buiiding and loan bus- ness, he says, has been respons- ble for the financing of two thirds of the existing small homes, and must unite on a solid, program in order to do its utmost in coopera- ion with the federal government. Indicating that he would accept he appointment, Mr. Ash said that the enlistment of private capital 'or use in making home mortgage oans would be rapidly speeded up the working together of all the .1,000 building and loan associa- ions. Plans for a cooperative advertising campaign are now underway by which the associations will point out their readiness to make the loans which the housing admin- stration hopes to see to increase employment." Jane never was Amy's." "I thought that, too," said Alice. "You won't mind my saying so, Amy.

will you. but 1 thought she turned her back to her old self, re- Really, you're not." was doing her best to vamp How ard and that was why she went i i tboueht she might home so soon. I mean because she didn't set anywhere with him. Bui Nanc back but Im that was a divine dress she had on and I was crazy about cigaret holder. I wish you'd got one for me.

Edgar." "You stick to cake. baby. It looks better in your dimpled hand than a cigaret holder. Tbs reason Janie went home so soon wasn't fusing to accept anything of life what she chose from it Edgar had said that Howard was afraid of Jane. "But I'm not." thought i Amy.

"I was afraid of her when I try to take not afraid now. I'm sorry for her. And how 'she would hate that! Poor HE heard Howard on the walk outside and hurried down in "All right. let that go. There's no reason in raking up old scores.

It's not my main count against her. What I can't stomach is her callousness about Nancy and her damned self-assurance. Here she is. a won- an who's bad a shady affair, borne a child and discarded it and expects to be treated as if she'd done nothing out of the way. God knows I don't want to set myself to judge her.

but I can't help it. I think time to meet him at the door. "You -she's brazen and I think she's dan- came back so early!" gerous. And the one thing I can I hated to be away from you a never quite understand about you. entirely play up.

Amy locking so because Howard didn't i minute more than I had to. I asked darling angel, is that you accept She couldn't bear to see and really need me. handsome Ellert to excuse me. He didn't her IE if she was just the same sort He only wanted las yourself. Honestly, I don't see happy and being the center of attraction to everybody." Amy rallied her attention to reply.

"Did I look handsome and happy, and was I the center oT attraction? All that's news to me. an attentive ear. He's lonely. I how you can. I suppose it's be, hope everyone's gone." cause you have known her ever.

and Alice stayed a while. since you were children, that I We sat out in the garden. Let's go creates a sort of unchanging bacfc- i back there." The quiet cool dark was waiting "I didn't know you felt so kind words'. for them and they tat down hand strongly about Jane I wouldn't Alice. I tell vou again, par no in hand.

"Did you tell Ellert?" have asked her tonight lUust hap- tention to Edgar'when he talks asked Amy. i pened. as I told you. And it queer 1 I was thinking tonight when I looked at Nancy asleep, and she looked so Jane had been no one knew except you and that here, with her own child so near to her. not scandal about Jane, and imputes "No.

I knew it would involve me motives and imagines tilings. She in a lot of talk, and cost the old hit him with a baseball bat occe man a sleepless night besides. He's and his masculine pride has never i fond of me. He likes to have me I think he's afraid of around. It's going to upset him a i good tut.

It can wait until tomor- "I think Howard's afraid of row, or next day, after you and 1 i' said Edgar, "and well he may be. have decided." She can change The weight of the coming tomor- "And then again about Nancy, row fell on them and their hands Amy. She's a dear child. 1 love her recovered, her." even to Jane's like that Jane's an unscrupulous grabber." A MY wished they would stop talk- held closer. Amy tried to evade it jmore than I ever can tell ing.

She wished they would i "Everyone seemed to enjoy the she isn't our own. I'm going to go. She had feit Jane's antagonism dinner." she said. "'We got a lot this war, I don't know what will happen. But here you are with iuthrie To Address Kiwanians on Birds Prof.

J. B. Guthrie, Iowa State college zoologist; will address the weekly luncheon of the Kiwanis club Friday noon on the subject "Birds." The club meets in the Sheldon-Munn. totel for luncheon. 101st Birthday, Gets Pension MINERVA, 0.

Mrs. Frederick Fishel received on her 101st birthday an old age pension certificate. Born in Wurtenberg, Germany, Mrs. Fishel came to America at six. The drouth is crop reduction by destruction on a collossal scale.

It. does not increase farm buying would eventually pay for their own farm relief. But not many of them ever thot that they would pay for it before it put in an appearance. Nature Lesson VERY WHICH IMVEMTS AuTO- Mosites COOUMC ALL OF COMPL1CAT6P GADGETS TO KAKE UFH OH-IS THAT WHAT MAKES THE MXVJ LOOK OH, THE MAAJ wEARy OJ ACCOUMT OF IS TOO DUMB TO TAKE OFF HIS HAT COAT AAJO COLLAR, WWiCH At5.E increase in prices, the national agricultural income from this year's crop without the processing tax may be lower than last year's. However, cotton loans in the south and corn loans in Iowa and neighbor states made it possible for the producer to hold last year's bountiful crop and profit from the advance.

Today, by grace of those loans. the farmers of Iowa are getting more than 60 cents for corn that was worth 30 cents a year ago. This is the first time in the history of this country that the man who produced the grain was able to cash in on a speculative advance. Always before, the rich returns went to the speculator Today, the profits accruing to agriculture from the loan program are mitigating the effect of the drouth and will probably increase the gross farm income this year tar above last year's figure. It seems to me that the person who attacks the AAA as a failure should he required to outline a subsutute plan.

He should be ask- if. in his opinion, the farmers of the United States should fasten jthoir hores for better prices upon possibility of a national pf-r thai destroys crops over a vast and. if so" how they might If'-naiii such a disaster would oc- iciir. It would be just as logical for the manufacturer of automobiles build twice as many cars as his market demands and" expect a tornado. train wreck or other disaster i to destroy two-thirds of them so that what buyers there are would pay a high price.

In fact, it would hf more logical from the manti- facturer's standpoint because in that he would ill have some, income from current Farmers in the drouth area niay I have r.one I "Here Comes the Navy," smashing drama of Uncle Sam's jack- tars afloat, ashore and in the air, when she was leaving, but it could of credit we didn't really deserve." not touch her. It did not matter. "It was when Barney i this responsibility won't Tomorrow was so near, when she tasted the wine and cocked his-eye be much money. Well, we won't and forced herself at us. He was wondering what a talk about it now.

That can all away from that. "Jane's very poor young assistant professor was smart," she said wearily. "I'm glad doing with that vintage. And, oh, There was a long silence. How- she's looking after Miss Rosa's at-1 Amy, ycu looked so marvelous.

I ard moved his chair to put his arm fairs. She's got a. good head for couldn't think about anything else around Amy's shoulders, she leaned business. Miss Rosa's not been up but you. Vou, in that dress, all against him and they felt the to much since she was sick in the i white and slim, like the day we piteous comfort of touching bodies, spring.

were married. I wanted to shout out "You're tired, and no wonder," i loud how much I loved you. I don't warm and quick with tenderness for each other. "It's Nancy," said said Edgar suddenly. "We'll run know how or what I talked, i was i along.

It was a swell dinner. Amy, i simply blithering, I know that. And Anjy after a "I love her, too. and we were proud to be among all the time that loathsome 5 ou know it. but she's not our own.

those p-esent." he stopped, but he bad said her Howard, I want a child of our "I was proud to have you, but name as if indeed he loathed her. I own thank me for the dinner. That i "Edgar says you're afraid of i (Copyright. 1034. by Sophie Kerr) all came from the dean's, as you Jane." (to Be Continued.) opens at the Twin Star theatre today with James Cagney ana Pat O'Brien in co-starring roles.

Cagney and" O'Brien, two seamen, are the bitterest of enimies, Jimmy having joined the navy just for a chance to get even with O'Brien, who has knocked him cold in a fistic encounter and stolen his girl, a part played by Dorothy Tree. To sdd fuel to their hatred. Jimmy falls in love with a beautiful girl (Gloria Stuart) who turns out to be his hated enemy's sister. For the first time in pictures, the whole gigantic pacific fleet is sesn, weighing anchor and steaming out of its harbor for the Atlantic Coast. BEHIND THE SCENES IN WITH RODNEY DUTCHES This Is the seventh of a series of articles telling of the.

more important governmental agencies created tf-nder the A'cto Dec'. aims, and their activities. SISTER MARY'S KITCHEN BY MARY E. NBA Service Staff Writer I hot weather when appetites are inclined to (alter and both young and old become listless about food, homemakers should see to it that each dish tempts by its perfection and furnishes distinct food value. Simple puddings are fine for, summer desserts partly because they may be made early in the moraing and chilled until wanted, thus achieving leisure hours tor the.tired, hot cook later in the day.

Peach Custard Meringue Two cups milk, 3 eggs, 1-2 cup granulated sugar, few grains salt, 1 cup sliced peaches. 6 tablespoons powdered sugar, 1-4 teaspoon vanilla. Scald milk in top of double The owner of a large grain in St. Taul asserts thft the AAA is unsound, declares it makes the country succept.ible to drouth and that a recurrence of drouth next year would compel us to import grain. He might better have said that the drouth is unsound.

At least it is unsound to depend upon it for adjustment of production. Nothing llkp tills ever occurred before, in run- nat'rn; 1 inry and 1s not apt tn (Vf-ni If-t for nuuiy On Hie oilier hand. boiler. Beat yolks of eggs with granulated sugar and salt. Slowly add hot milk, stirring constantly.

Be sure sugar is thoroughly dissolved. Return to double boiler and cook over hot water until mixture thickens. Remove at once from heat and cool. Chill lor several hours and then add peaches. Arrange in individual glasses or one large serving dish and top with meringue made as follows: Beat whites of eggs until stiff and dry.

Beat in powdered sugar and vanilla. Prepare a wide shallow pan of boiling water and drop the meringue by spoonfuls on the water. Put into a hot oven long enough to slightly color the meringues. Skim from the water and place on the peach custard. Chill thoroughly and serve.

Pcnch Bavarian Ten very ripe peaches. 3-4 cup sugar, 2 1-2 cups cream. 1 1-2 tablespoons sranulatcd gelatine, volks of 3 epgs, few Drains salt. ulce 1 orange. Peel nrnch od combine- to p'Up ii susar.

Softm Tomorrow's Menu BREAKFAST: Blueberries, cereal, cream, creamed bacon, toast, milk, coffee. LUNCHEON: Masked eggs, salad, chiffonade, fruit blanc mange, milk, tea. DINNER: Roast duckling, creamed onions, beets in orange sauce, avacado and tomato salad, peach bavarian, milk, coffee. gelatine in 4 tablespoons cold water for five minutes. Scald 1-2 cup cream and beat in yolks of eggs which have been beaten with orange juice and salt.

Scald over hot water and pour into softened gelatine. Beat well and let cool. remaining cream and fold into gelatine mixture. Chill until it begins to thicken. Add prepared peaches and beat well.

Turn into a mold which has been dipped in cold water and let stand on ice for three hours or longer to chill and become firm. Unmold and serve with a garnish sliced peaches and whipped cream. Macaroon Pudding Two cups milk, 1-2 cup sugar. 3 eggs, 1 tablespoon granulated gelatine, 1-2 pound macaroons, tew grains salt. Separate whites from yolks of esgs.

Put milk, sugar and yolks of eggs in double boiler over hot water and heat slightly. Add Kclatlne which has been softened for five minutes in 2 tablespoons cold water. Cook and stir until creamy. Fold In whites of eggs beaten until stiff. Remove from heat and stir in crushed macaroons.

Mix thoroughly and turn into mold. Let stand on ice for flvn or six hours or overnight. Unmnid serve with a garnleh ot whipped cream. Jesse Jones BY RODNEY DUTCHER Service Stnlf Coireapondent Government loans at last are being made direct. to the small manufacturer, but not "with the once widespread belief that they're a recovery panacea.

The old New Deal theory that recovery was being held up because banks stupidly refused to lend to good risks among small and medium-sized industries has a modicum of truth in it. Some banks have an exaggerated passion for liquidity. But hopes that industrial loans would be an important factor in revival have been dampened because, according to private advices from experts here, it is generally true that firms which have good credit can still borrow from banks. Some banXs are trying to push loans on what they consider good risks. Most complaints come from folks the banks consider poor risks.

Uncle Sam isn't taking any risks or playing Santa Glaus, either, as thousands of would-be borrowers are finding out. Most of the applicants so 'far have been ineligible for loans or without sufficient collateral or prospects. The open secret of the credit situation is that business has no fundamental confidence in recovery. The banks are tight with credit, but business generally is afraid to borrow against the future as it does in normal times. ATEVERTHELESS, the Loans to Industry Act operations are hardly under way and they're bound to bfilp small industry to a certain extent.

Some hard-up firms, at least, will benefit. The theory is that many have been beleaguered by increased costs under NRA. The $300.000,000 authorized for loans from RFC and the 000 000 available through the Federal Reserve System are designed almost entirely for payrolls and materials needed by Industries short-of working capital, whose appeals for credit must first have been turned down by the banks. Necessary red tape has held up loans, but RFC has made 53 industrial loans totaling $4.886,000 and has received about 4100 applications, mostly sour. The Aug.

1 Federal Reserve statement. however, showed only $5000 in industrial loans by that agency. The RFC is always considered "tough." You virtually have to 'swear your life away to get any money oat of it. But it does function. OR an loan, you apply either to one ot the 32 RFC regional offices, one ot the 12 Reserve banks, or to any Reserve member bank.

Loans from either agency are limited to $500,000 and must mature within five years at the prevailing local bank usually between 4 and 6 per cent. In cases where commercial banks may be Influenced by poor recent earning records, the RFC is willing to lend if prospects really look good. A highly important consideration is whether the proposed loan will maintain existing employment or increase H. RFC may reduce excessive salaries and Jones insists corporations should forego dividends to stockholders while borrowing from the govcrnn int. Also, RFC grimly demands enough collateral to guarantee the government against loss.

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