extension work" provides for payment to each State and the Territory of Hawaii in accordance with the apparent need as determined by the Secretary of Agriculture. Funds directly disbursed by the Department are also allotted at the discretion of the Secretary. The following table indicates the funds paid to the States and Territories that require offset by State money, those where such offset is not required, and the basis of allotment:

TABLE 2.-Statement of direct payments to States, Hawaii, Alaska, and Puerto Rico, indicating those requiring offset by States and Territories, those not requiring such offset and basis of distribution, as estimated for 1935

SOURCE OF ALLOTTED FUNDS FISCAL YEAR 1934

The Federal funds for cooperative agricultural extension work are supplemented by funds from within the States estimated at $10,520,054, thus making available from Federal, State and local sources for extension work during 1934 a sum approximating $19,896,230. (See table 3.) This aggregate sum does not take into account the 25 percent reduction in Federal funds for the period March 4June 30, 1934.

NUMBER OF EXTENSION AGENTS

As the major purpose of these payments of money to State is the employment of extension workers in counties and at the colleges, the following comparative statement is submitted showing agents employed:

TABLE 4.-Comparison of number of extension field agents employed June 30, 1932, June 30, 1933, and Oct. 31, 1933

1 Increase in number of agents in counties is due to the cooperative arrangement with the Agricultural Adjustment Administration, covering administration of the commodity programs under the adjustment act.

Number of counties in United States.

Approximate number of counties now having one or more agents...

3,076 2,550

ACTIVITIES UNDER VARIOUS APPROPRIATION ITEMS

A discussion of the activities under the various appropriation items and tabulation of amounts involved under each, follows:

Decrease, Budget 1935, compared with estimated obligations, 1934.

WORK DONE UNDER THIS APPROPRIATION

SMITH-LEVER

$1, 580, 000 1, 580, 000 1 1, 580, 000

1 1, 580, 000 1, 185, 000

2 395, 000

These funds supplement the permanent annual appropriation provided under the Smith-Lever Act (May 8, 1914, Stat. 372-374, U.S.C., 114). Like the SmithLever funds, they are paid directly to the State colleges of agriculture as Federalaid for the promotion of extension work in agriculture and home economics. This appropriation is divided among the States and Hawaii in the proportion that the rural population of each bears to the total rural population of the States and Hawaii, and is available only when offset with funds from within the States. This item contains a provision that not more than $300,000 may be expended for purposes otner than salaries of extension agents in counties. As $300,000 is

Direct payments to States and Territories for 1934 are subject to reduction of 25 percent from March 4 to June 30, 1934, inclusive, by Executive Orders Nos. 6166 and 6221. The net reductions for 1934 would be approximately 8 percent.

The decrease of $395,000 represents a reduction of 25 percent for direct payments to the States and Territories pursuant to Executive Orders Nos. 6166 and 6221.

approximately 25 percent of the total appropriation, this means that approximately 75 percent of the funds must be expended for salaries of county extension agents. The State allotments are paid directly to a designated officer in the State and are disbursed in accordance with budgets and programs of work submitted by the State directors of extension and approved by the Secretary of Agriculture. Expenditures by the States from this and other cooperative extension appropriations are subject to an annual inspection by representatives of the department.

Decrease, Budget 1935, compared with estimated obligations,
1934...

WORK DONE UNDER THIS APPROPRIATION

$1, 480, 000

1, 480, 000 11, 480, 000

1

1 1, 480, 000

1, 110, 000

2 370, 000

This appropriation is specifically authorized by the provisions of the CapperKetcham Act of May 22, 1928 (45 Stat., 711, 712). This act authorizes an appropriation of $980,000 to be divided at the rate of $20,000 to each State and to Hawaii, without requirement for State offset, and an additional $500,000 to be divided among the States and Hawaii on the basis of rural population. It provides that at least 80 percent of the funds appropriated under this authorization shall be expended for salaries of county extension agents and that the extension agents appointed under its provisions shell be men and women in fair and just proportions.

Decrease, Budget 1935, compared with estimated obligations, 1934

WORK DONE UNDER THIS APPROPRIATION

This appropriation is authorized by the act approved February 23, 1929, entitled "An act to extend the benefits of the Hatch Act and the Smith-Lever Act to the Territory of Alaska" (U.S.C., supp. VI, title 7, sec. 386c). The extension work in agriculture and home economics is of a similar nature to that which is being conducted in the States, modifications being made to suit local conditions. Experiment stations have been maintained by the Federal Government in Alaska for many years, but extension work was not systematically begun among farmers until 1931.

1 Direct payments to States and Territories for 1934 are subject to reduction of 25 percent from Mar. 4 t June 30, 1934, inclusive, by Executive Orders Nos. 6166 and 6221. The next reductions for 1934 would be approximately 8 percent.

The decrease of $370,000 from Capper-Ketcham Funds for Extension Work represents a reduction of 25 percent for direct payments to the States and Territories pursuant to Executive Orders Nos. 6166 and 6221. 'The decrease of $3,000 from Alaska funds for extension work represents a reduction of 25 percent for direct payments to the States and Territories pursuant to Executive Orders Nos. 6166 and 6221.