In the scorching summer of 1935, a cloud of controversy hovered over the Agricultural Adjustment Administration (AAA) in North Carolina. Newly released figures revealed that the agency had doled out a staggering $130,428,984 in rental and benefit payments to farmers across the state for the fiscal period beginning July 1, 1934, and ending May 31, 1935.
The numbers, obtained by Dean I. O. Schaub from the AAA’s fiscal office, exposed a disturbing trend of favoritism and potential mismanagement. A whopping $46,157,476 was paid out for cotton adjustments, while $11,192 was allocated for wheat adjustments, and a staggering $7,674,014 was spent on tobacco adjustments.
But it was the tobacco rentals that raised the most eyebrows. Despite the massive payout, a paltry $701 had been spent on adjustments for the current year, leaving many to wonder where the rest of the money had gone. The answer, it seemed, lay in the administrative red tape. None of the tobacco rentals had been paid out for 1935, and it wouldn’t be until the rented acreage had been measured and certified that the payments would begin.
The AAA’s largesse didn’t stop there, however. The agency also shelled out a whopping $101,160,798 to North Carolina citizens for work connected with the adjustment programs. Most of this money was used for county and community committee work, as well as clerical duties in local offices.
But what did this mean for the people of North Carolina? The numbers told a tale of cronyism and corruption. In Ashe County, rental and benefit payments totaled a staggering $1,255,780, while Alleghany County received a paltry $953,259. Was this just a case of bureaucratic bungling, or was something more sinister at play?
The people of North Carolina deserved answers. As the investigation into the AAA’s dealings continued, one thing was certain: the truth would not be easy to uncover.
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Key Facts
- State: National
- Category: Public Corruption
- Era: Historical
- Source: Library of Congress — Chronicling America ↗
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