This amount would permit production only for subsistence needs in most No estimate has been included for the item of operating expense which would greatly increase the total credit needs.

cases.

If the $3,480,000 now available were allotted on a per capita loan basis to the Indians now under the act, it would amount to approximately $27, without making any provision for Alaska or Oklahoma. This amount would be insufficient to make any appreciable economic rehabilitation possible. Loans, of course, will not be made on a per capita basis, but only on sound economic programs where repayment possibilities are favorable.

The usefulness and permanence of the credit system depends upon two main factors. First, the appropriation of funds as authorized by the act, and second, the extension of credit on a sound basis for enterprises which will really prove of value to the Indians. The first factor must come before the second can be carried out. The Indians can only use their resources effectively and direct their efforts toward economic rehabilitation if the motive power of credit is supplied.

Loans under consideration.-Due to the fact that Indian organization had not developed to the point where tribes were eligible for loans, none were made during 1936.

Much of the preliminary work in connection with organization has now been completed to such an extent that organized tribes are applying for loans. On October 10, 1936, the following applications had been filed and were in various stages of action:

Flathead, Montana: Loans to individuals_
Rocky Boy, Montana:

Corporate hay enterprise_

Loans to individuals__

Loans to individuals..

Livestock cooperative_

$65,000

31, 000

Lower Brule, South Dakota:

44, 000

20, 000

Blackfeet, Montana: Loans to individuals.

16, 000

200, 000

Mescalero, New Mexico:

The following reservations have submitted charters and are to hold elections shortly. Their credit needs are estimated as—

Other reservations have submitted petitions for charters, but elections have not yet been called, although charters will probably be issued to these jursidictions within the next few months. Their credit needs are estimated in the following amounts:

The foregoing tribes have an approximate population of 41,000.

To summarize, loans aggregating $2,366,500 may be completed during the next few months:

Applications pending.

Charters submitted_

Petitions for charters pending

Total___

$599,000 368, 500 1,399,000

2,366, 500

These estimates are preliminary and do not include Oklahoma. Adequate information in all cases is not yet available but it is believed that the amounts for which applications will be submitted within the next few months will be approximately as listed. These amounts do not represent complete credit needs, but only such amounts as it is felt will be committed in the near future. The total number of reservations which have accepted constitutions and bylaws is 47 to date, with a total population of approximately 65,500. It is believed that most of these jurisdictions will also be in a position to request loans in the near future, and on the same basis as above the needs of the 65,500 population would be approximately $4,600,000.

Extension of benefits.-The benefits of the revolving credit fund were extended to Alaska by the act of May 1, 1936 (49 Stat. p. 1250-1251). This will require funds before the close of the fiscal year 1938.

The Oklahoma General Welfare Act of June 26, 1936, section 7, provides:

"All funds appropriated under the several grants of authority contained in the act of June 18, 1934 (48 Stat. 984), are hereby made available for use under the provisions of this act, and Oklahoma Indians shall be accorded and allocated a fair and just share of any and all funds hereafter appropriated under the authorization herein set forth:

*

Thus the Indians of Oklahoma are granted permission to participate in this fund. The Alaska and Oklahoma needs have been considered in this estimate as will be noted from the text of the item.

Administration. Of the amount requested approximately $125,000 is needed for personal services in the District of Columbia and in the field, including Alaska, for the purchase of equipment and supplies, and for other necessary expenses of administering such loans. The following positions to administer the credit fund have been established for the present year:

For this year $65,000 is authorized for administration expenses in connection with credit activities which is less than our actual needs by $5,000. We expect to submit a deficiency item to cover this deficit. Our requirements consist of the following:

Increase for administration, $60,000.-This figure contemplates the $65,000 for 1937 as a base. The increase is to cover the following items:

Compared with travel allowances for credit agents in the States, the requested $3,000 for Alaska may seem excessive. Practically all of the travel in Alaska, however, has to be by airplane or boat. The special item includes the expense of getting a clerk from the States to Alaska, as it is customary for the Government to defray such expenses.

Further discussion of the Alaska item appears unnecessary, in view of the act of May 1, 1936, extending the benefits of the Indian Reorganization Act to Alaska. The number of exmployees is held to a minimum, and the other items are not excessive.

11, 000

14, 500

18, 080

12, 250

5, 000

60, 830

-830

As tribes organize and the corporations obtain loans, it becomes necessary for field personnel to confine their operations to smaller areas. The present force

is spread so thin that effective work will not be possible. Projects are to be developed and individual programs are to be formulated. While local officials will be expected to render aid in these undertakings the advice and help of trained personnel is essential.

Printing. There are many forms and other documents to be printed in conneetion with credit operations. Under the present text the appropriation is not available for printing costs. We are therefore suggesting text making the appropriation applicable.

Oklahoma. Under the wording of this estimate, funds will be provided for credit to Oklahoma Indians. There is one major difference in the two acts. Under the Indian Reorganization Act loans are made to corporations. Under the Oklahoma Act loans may be made to small groups or to individuals. follows a discussion of the credit needs of the Oklahoma Indians.

There

Five Civilized Tribes.-This jurisdiction, covering about 40 counties in eastern Oklahoma, has a population of 72,626. The average family income is estimated at $94.37. This is taken from the report of the extension division for 1935, and is supplemented by the following quotation:

Our statistical data carries the information that our average net gross income per family on this jurisdiction is less than $100 per year. This is doubly high for several thousand families, yet is a most accurate picture of the entire jurisdic tion. In fact, the two countries where our thickest Indian population is found will have not to exceed $50 gross cash income per year for the past 2 or 3 years." The report also states:

"Lack of funds with which to purchase materials has been our outstanding handicap. Progress is slowly marked when materials cannot be secured with which to work. This is also true of equipment, seeds, feed, livestock, etc."

This quotation is self-explanatory, and will, of course, be remedied by the availability of credit.

Housing conditions are deplorable on this jurisdiction, and the extension report states in connection with its home-improvement project:

"It is safe to estimate that at least 5,000 families are living in log houses, shacks, cabins, a few tents, all of which are a decided disgrace to the living conditions prevalent on this jurisdiction."

A detailed survey of 3,983 families in 1934 showed that the material used in 3 percent of the homes surveyed was excellent, 21 percent food, 42 percent fair. and 34 percent poor. Practically all the homes were in need of some sort of repair.

In connection with the livestock project the extension report states:

"From a livestock standpoint our land resources have not been scratched. The time is not far distant when livestock enterprises must contribute a considerable portion of the Indian family income. Large areas have been leased to whites who really mine the fertility from the soil with never a thought in regards to the future use or productivity of the land. This is particularly true with close to 90 percent of the agricultural leases to whites." The statistical report shows 832,023 farming acres leased by Indians, and 1,041,630 grazing acres. These figures are not complete as many Indians make their own leases, of which the Government keeps no record, but these figures are indicative of the amount of land which the Indians are not using themselves at the present time, largely because tney have no means of obtaining operating credit. The following percentages show the Indians who owned various types of livestock at the time of the 1954 survey:

The numbers of livestock owned, however, were very small, the average being about 2 milk cows, 13 beef cattle, 1 bull, 10 sheep, 2 horses, 8 goats, 8 swine, and 35 chickens. While these numbers are very small it must not be overlooked that they are the holdings of the most fortunate Indians under this jurisdiction, and that large numbers of Indians owned no livestock at all.

Of the families surveyed 50 percent owned plows; 26 percent, harrows; 11 percent, mowers; 9 percent, rakes; 40 percent, wagons; 45 percent, harness; 5 percent, binders; 34 percent, cultivators While the survey did not cover the entire juris

1

diction, it is believed that a large enough group was surveyed to indicate conditions on the jurisdiction as a whole.

Cheyenne and Arapaho.—This reservation has a population of 2,886 Indians, and the average annual family income is estimated at $325. While these Indians show a somewhat higher income than those under the Five Civilized Tribes, much of it comes from lease rentals and from wages earned working on emergency activities of the Government. During 1935 the extension report shows that 153,660 acres were covered by farming and grazing leases, all of which should be utilized by the Indians themselves. Only the following percentages of the population owned livestock on this jurisdiction at the close of 1935 according to the extension report: Chickens 23 percent, turkeys 2 percent, waterfowl 1 percent, dairy cattle 25 percent, beef cattle 8 percent, swine 5 percent, horses 36 percent. Only one Indian on the entire jurisdiction owned sheep, and only five owned goats. It will clearly be seen that capital is the main retarding factor in the advancement of these Indians. The fact that 51 percent of them grew gardens in 1935 is proof that they will utilize their resources wherever they are able. Their gardens were too small to help out with the family food needs to any great extent, averaging 0.59 acre. Larger gardens were not possible without additional equipment, and the Indians were perhaps doing the best they could under the circumstances. Kiowa. This jurisdiction includes two reservations, Kiowa and Wichita, with a total population of 6,061. The average annual family income at Kiowa is estimated at $338 and Wichita $400. The greater part of the income of the Indians comes from leases and from working on emergency projects. They do not have capital to make use of their own resources and as a result at the close of 1935, 231,114 acres of farming land were cultivated by whites on the reservation in comparison with 20,252 by Indians, and white-owned livestock grazed 111,250 acres compared with 25,725 by Indian-owned stock. On the Wichita reservation whites cultivated 69,522 acres in comparison with 3,710 by Indians, and whiteowned stock grazed 19,946 acres compared with 6,736 acres by Indian-owned stock. At Kiowa the following percentages of Indians owned livestock at the close of 1935: Chickens 31 percent, turkeys 4 percent, dairy cattle 28 percent, beef cattle 29 percent, swine 17 percent, and horses 37 percent. No sheep were owned and only one Indian owned goats. At Wichita 62 percent of the Indians owned chickens, 21 percent turkeys, 17 percent waterfowl, 60 percent dairy cattle, 33 percent beef cattle, and 60 percent horses. No sheep and goats were owned on these reservations. Wisely administered credit will do much to improve these unsatisfactory conditions. Homes on the Kiowa Reservation are superior, in many instances, to those on a majority of other reservations throughout the country, because of the wise expenditure of per capita payments over a number of

years.

Pawnee. This jurisdiction, with a population of 3,017 includes five reservations. The estimated average family incomes are $500, $655, $450, $360, and $311. Again these are largely from lease rentals and emergency work. The total number of farming acres leased on these reservations in 1935 was 62,382 acres and grazing 52,731 acres. These amounts are more than the Indians utilized themselves. Livestock conditions are about the same as on other reservations in Oklahoma with comparatively small numbers of livestock owned.

Quapaw. This jurisdiction, with a population of 2,607 consists of five reservations. Average annual family incomes are estimated at $200 on three reservations, $175, on one, and $170 on one. Economic conditions on all these reservations are very poor. In 1935 the Indians leased a total of 17,656 farming acres, far more than was cultivated by the Indians themselves. The average income at Quapaw does not include mining royalties. There are approximately 50 Indians who will not need to participate in the benefits of borrowed capital, since they have plenty of capital from this source.

The

Shawnee. This jurisdiction, with a population of 4,570, includes five reservations. The average annual family income in 1935 was estimated at $350. Indians leased 43,019 acres in farming and grazing leases, utilizing only 23,285 acres themselves, due to lack of equipment. At the close of 1935 it is estimated that 83 percent of the Indians on these reservations owned chickens, 12 percent turkeys, 46 percent dairy cattle, 27 percent beef cattle, 37 percent swine, and 46 percent horses. No sheep or goats were owned.

LOANS AUTHORIZED BY OKLAHOMA INDIAN WELFARE ACT

Mr. JOHNSON. Why is it necessary for that new language? Mr. DODD. The old text covered appropriations under the Indian Reorganization Act of 1934. The next text is to provide for the loans