ment workers to carry through the needed economic research and extension. Action to strengthen the economic outlook work in the Department of Agriculture, at least, and in the State agricultural colleges in addition, if possible, would increase the effectiveness of the economic information with which farmers are provided and aid them in choosing the best readjustments in their agricultural production, and so hasten the production readjustments which the board has been striving to attain.

The cooperative marketing associations and the board have drawn to the fullest extent upon data of production, stocks, farm and market prices, and prospective yields, in planning merchandising programs and in deciding on marketing loans, advances to growers, and the like. For most commodities the crop estimate and price and market reporting services of the Department of Agriculture, supplemented by other reports and information, have given a full and satisfactory basis of information on which to act. For certain products, however, the existing statistical information is not yet adequate, and both cooperative associations and the board have frequently had to make important business decisions with only scanty or faulty data to guide them. More adequate provision for the collection, analysis, and publication of production, market, and price information on minor fruits, vegetables, canning crops, and canned goods, would materially aid the board in activities touching these products.

The division of cooperative marketing is able to conduct marketing studies which pertain particularly to cooperative marketing and to their place in relation to other marketing agencies. Certain problems which come before the board, however, involve not merely cooperative marketing as such but the whole sphere of marketing, including commercial firms, exchanges, and wholesale and retail distribution. The Department of Agriculture has been able to provide but little information to help in solving these problems, since it now has no organization for studying the economic problems of marketing. Action to enable the department to carry on adequate research work in these broader problems of marketing methods and the marketing structure as a whole would help provide a firmer basis of scientific knowledge for the use of the Farm Board.

BOARD ORGANIZATION AND PERSONNEL

The agricultural marketing act provides that the Federal Farm Board shall consist of eight members and the Secretary of Agriculture. On June 30, 1931, the board consisted of the following members: 23

23 On Aug. 8, 1931, Frank Evans, Salt Lake City, Utah, was appointed to one of the two vacancies on the board, assuming his duties Sept. 1, 1931.

James C. Stone (chairman), Lexington, Ky.

Carl Williams, Oklahoma City, Okla.

C. B. Denman, Farmington, Mo.

Charles S. Wilson, Hall, N. Y.

Wiliam F. Schilling, Northfield, Minn.

Sam H. Thompson, Quincy, Ill.

Arthur M. Hyde, Secretary of Agriculture, member ex officio.

Harry E. Pollard, of Brockton, Mass., is carrying on the duties of the secretary's office.

The personnel has been gradually increased with the expansion of the board's activities. On July 1, 1930, there were 238 employees, and during the fiscal year ending June 30, 1931, the number was increased to 328, of whom 32 are field representatives stationed outside of Washington.24

Further expansion of the personnel may possibly be necessary, but the clerical and expert staff as now constituted is approaching the number that will be required under normal conditions for future activities now contemplated.

During the year certain changes were made in the organization of the staff of the board in order to enable it to function more effectively in carrying out the provisions of the agricultural marketing act. A new business analysis section was established in the loan division in December, 1930. This section maintains a staff of auditors to examine the financial condition of associations borrowing from the revolving fund, and makes analyses of current reports from such associations. Through it the board is kept in closer contact with the business situation of the cooperatives to which loans are made, and is thus enabled to protect more adequately the revolving fund intrusted to its care. This new section has assisted the cooperative associations in developing better methods for accounting and business control.

In May, 1931, a new cotton section was established in the division of cooperative marketing, to give specialized attention to the problems of the cotton' cooperative associations and the national cooperative sales agency.

In recognition of the need of establishing and maintaining cooperative relationships with local educational and agricultural agencies and organizations, including State and Federal workers, an organization section was established in the division of cooperative marketing in February, 1930. Its workers spend most of their time in the field. Subsequently this work was organized on a regional basis, with one field worker in charge of each of the four regions.

24 On October 15, 1931, the staff consisted of 343 employees.

During the year field representatives participated in 2,000 cooperative marketing meetings, speaking before approximately 200,000 farmers, in addition to contacts and addresses at conferences of State extension workers, State vocational education services and work with new and already-existing cooperatives. Teaching material, prepared by this division in cooperation with the Federal Board for Vocational Education, was used in teaching over 60,000 adult farmers in night schools in the South alone.

An important outgrowth has been the creation of a number of State cooperative councils during the year. These provide machinery for bringing about in each State periodical conferences of representatives of existing cooperatives with extension and vocational workers, and representatives of State departments of agriculture, of general farm organizations, and of other agencies interested in the development of the cooperative organization program. The board has assisted in the organization of such cooperative councils in Missouri, Ohio, Indiana, and Idaho.

Other changes in the board's staff were carried out informally by strengthening the work of units already existing, rather than by creating new sections or divisions.

ORGANIZATION OF THE BOARD'S STAFF

In addition to the secretary's office, information division, the library, and other necessary administrative units, the service staff of the board is composed of four divisions-economics, legal, cooperative marketing, and loan. The economics division assists the board and its staff in analysis of the economic aspects of their problems, particularly in relation to commodity markets and loan policies, and production problems and prevention of surpluses, and in assisting cooperative associations to formulate policies on marketing, advances to growers, and the like. It bases its analyses on information secured almost entirely from other governmental agencies, Federal or State, and from trade and private organizations, already engaged in research along particular lines. Duplication of effort has thus been avoided.

The legal division assists the board in the interpretation of the provisions of the agricultural marketing act in meeting the legal problems involved in its administration, in preparing the legal and loan documents necessary in connection with the operation of the board, and assists the United States Department of Justice in the conduct of litigation arising out of the activities of the board. It also assists cooperatives in the legal aspects of the corporate structure for central sales agencies which they are developing for the handling of various commodities, and assists growers in the legal aspects of developments of new cooperatives, of the reorganization of existing

ones, or the amendment of charters or by-laws, so that they may qualify under the agricultural marketing act.

The cooperative-marketing division assists the board in dealing with cooperative-marketing associations and assists cooperative-marketing associations in performing their functions efficiently and effectively. Its work includes education and agricultural extension, assistance in organization and service, and research work for cooperatives. It maintains direct contact with the cooperatives all over the Nation and endeavors to help develop their structure and mold their growth in such a way as to make them of the maximum usefulness to their farmer members and to agriculture as a whole.

The loan division analyzes and investigates the applications for loans and makes recommendations to the board thereon; handles the actual loan funds in accordance with the decisions of the board; and examines, both currently and periodically, the financial condition of associations borrowing from the board. In so far as the board's policies involve financial transactions they are actually carried out ⚫ through the agency of the loan division.

An organized procedure has been developed for handling the hundreds of requests for loans which come to the board. These requests go first to the loan division, where the examining unit considers the need for the loan, the authority of the board to grant it, the value of the collateral to be offered as security, and the use which will be made of the funds. The cooperative-marketing, economic, and legal divisions are consulted and pass upon the marketing, economic, and legal phases of the proposed loan. The combined recommendations of the three divisions are then placed before the board for its decision. If approved, the funds are then issued through the treasurer's office.

ADVISORY COMMODITY COMMITTEE

In addition to the regular full-time staff of the board the agricultural marketing act provides for the establishment by cooperatives of advisory commodity committees which the board may call in session from time to time to advise it with respect to problems touching particular commodities.

Advisory committees for the following commodities were established by cooperatives during the first fiscal year of the board's operations; cotton, dairy products, wheat, coarse grains, livestock, and wool and mohair. An advisory committee for sugar beets and sugar-cane was established in the past fiscal year.

All of the advisory committees met during the year. The economic position of each commodity was discussed with them by members of the board and of its staff. The resolutions or recommendations of the various committees, prepared after full discussions of the com

modity situation, were duly considered by the board and were helpful to the board in arriving at decisions on problems before it.

ADMINISTRATIVE EXPENDITURES

Congress appropriated $1,900,000 for the administrative expenses of the board for the fiscal year 1931. Of this amount $170,000 was transferred to the Department of Agriculture for use in the organization of a foreign outlook and market service, for which Congress provided funds to be available on July 1, 1931. A total of $1,245,420 was used for the administrative expenses of the board proper, leaving an unexpended balance of $484,580 to be returned to the Treasury.

Of the total of $1,245,420 expended, $768,233 was paid for salaries of the Washington force and $130,119 for the field force, a total of $898,352. The balance of $347,068 was required for traveling expenses, including expenses of advisory commodity committees and the purchase of furniture, equipment, supplies, and other expenses necessary in the conduct of the business of the board.