INDIAN SERVICE THRIFT.

I have desired to keep the large and ameliorating possibilities contained in the little word "thrift" prominently before the Indians as indispensable to their industrial progress and domestic happiness, and therefore in hearty cooperation with the general movement for creating a sort of American thrift cult of both patriotic and economic value, the following letter was addressed to superintendents and all Indian Service workers:

I am earnestly hoping that all our Indian Service workers will keep the thrift idea alive and potent during the year 1920. It must be evident that this movement has appealed to the sober judgment of the American people, since the sale of war savings stamps to December 15, 1919, amounted to $1,128,480,731, with approximately $1,500,000 of this to the Indians. That there should be such a total of small savings in a continuous period of high prices for all necessities, is remarkably convincing of what may be wisely done in the curtailment of luxuries, the elimination of waste, and the application of temperate, thoughtful practice in supplying daily needs and providing well for the future.

The past year has been full of instruction along the lines of thrift and has clarified the definition of the term. A sort of wholesome thrift philosophy may be found in all that has been said and written upon the subject. We realize how much the word means beyond the primary need of saving money; how elemental it is in everything we do, and how obedience to this philosophy may become the constructive force that keeps us closer to the "happy medium" than almost any other guide. I believe, as a people, we shall discover in thrift a cure for many forms of social unrest, industrial antagonism, and morbid conditions that invite disorder, for in proportion as we learn the simple economies of individual and family life, we reach the contentment that is too often sought through public agitation and strife. We shall find that thrift brings preparedness against numerous ills; that it is an equalizer in the push and tug of our collective activities, and a shock absorber in the jolt of threatening emergencies.

Thrift in its wide and true meaning is fortunately entering the educational systems of this country, and I feel that it should have more than occasional attention in every Indian school. It should be in some effective way interwoven with all that we teach the Indians, for there is no more secure basis for selfsupport. A number of good books on thrift are now published, valuable for teachers and library use, and every Indian school should have a few of such reference books, as available funds will permit.

The sale of thrift stamps is concretely the best approach to the principles of economy and prudent management that should shape the habits of daily life, and I urge you to give special encouragement to these small savings so well adapted to Indian conditions among both children and adults of limited means. In the months and years immediately ahead when the American people must contend with the post-war dangers of a financial crisis that may become world-wide, the duty presses upon all our field service to teach the Indians by counsel and example the basic value of industry and economy. If we can give them the broad and true meaning of thrift as a rule of practical and comfortable living, we shall have accomplished in this alone the best part of their education.

Your attention is also called to the new Treasury savings certificate, issued in denominations of $100 and $1,000, to run for a period of five years. A $100 certificate of the January, 1920, series can be purchased in February, 1920, for $82.60, and the cost will increase 20 cents each succeeding month. The $1,000 certificate will cost in February $826, and increase in price $2 each month. These certificates draw 4 per cent interest compounded quarterly and thus pay a little more than 4 per cent interest when held until maturity. They are among the best investments offered, being registered at the Treasury Department in Washington, and if burned, lost, or stolen the owner can recover his money by proving the loss. They are not subject to market fluctuations, as two months after purchase they can be redeemed at purchase cost plus the increase in value for each month held.

It is believed that in many cases Indians or Service employees desiring to invest may have sufficient funds on hand to purchase one or more of these Treasury certificates and will prefer this form of investment. You are therefore requested to bring this matter to their attention as far as practicable and advisable.

These certificates can be purchased at banks, post offices, or authorized agencies, and additional information and supplies will be furnished on request by the Government savings director for your district.

Sincerely yours,

FARMING.

CATO SELLS, Commissioner.

Agriculture is the basis of prosperity among the whites, and is even more essential to Indian welfare. The early explorers of this country found the Indians cultivating the soil, although the women did most of the work, the men being engaged in hunting and fishing when not on the warpath. However, as the Indians have advanced under the tutelage of the Government, the men have gradually assumed this work, while the women have confined themselves largely to household duties. This is well exemplified by the fact that last year 36,459 Indians cultivated 762,126 acres of land, producing crops worth $11,037,589, as compared with 28,051 Indians who cultivated 558,503 acres in 1912, producing crops worth $3,250,288.

Moreover, by the constantly growing use of modern agricultural machinery, improved methods, etc., the Indians have made distinct industrial gains, and have also won the respect of their white neighbors by their habit of sustained industry and the acquisition of improved homes.

EXPERIMENTATION.-In line with the best agricultural practice of the day, it is the general policy of the Service to conduct experimentation and demonstration work on the farms of the Indians, so that they may not only see directly what can be accomplished on their lands, but also take an active part in the experiments and discoveries. But in order to obtain proper results, certain technical work of this character should be prosecuted at some central point under the direction of experts. The largest and most important sta

tion for this work is at Sacaton, on the Gila River Reservation, in Arizona, where many useful plants have been developed, adapted to the arid conditions of the Southwest, which have proved beneficial not only to the Indians but to the whites as well.

The most notable accomplishment of this experimental farm has been the development of a long-staple Egyptian cotton called "Pima," now grown extensively by both Indians and whites, and it is the principal crop of that section, 180,000 acres having been devoted thereto last year. Many of the Indians have learned to handle this cotton very successfully, which affords the best possible demonstration of the new opportunities that experimentation has brought to them.

Experiments are also in progress with dates and pomegranates. Though not likely to have any such commercial possibilities as cotton, yet these fruits are much appreciated by the Indians, and their addition to the local food supply will prove a measurably important factor in Indian welfare.

The addition to the farm mentioned in my last annual report has proved a great advantage in prosecuting the work of the station, and has contributed materially to the success of its activities during

the year.

INDIAN FAIRS.-The practice of holding fairs has been continued with good results. At these fairs the Indians exhibit their farm. products, live stock, etc., in competition with each other, premiums being given for the best exhibits. In 1912, twelve such fairs were held, while last year there were between 65 and 70. As the spirit of competition is a strong incentive to effort, the fairs have proved very successful in stimulating the Indians to do better along agricultural lines. Most of the fairs are managed by the Indians themselves under the supervision of the superintendent, which furnishes them practical experience in business organization.

An Indian "baby show," under the direction of the Government physician and with the cooperation of the field matron, is an important feature of these fairs, and provides an opportunity to give the Indian mothers practical instruction in the care of children.

The Indians are also taking a larger part in county and State fairs, and have won numerous prizes in open competition with white exhibitors. Eventually it is hoped to abolish the strictly Indian fair on the reservations, in order that the Indians may more generally participate in the State and county fairs.

LEASING.

It is our chief purpose in every way possible to induce and assist the Indian to live upon and cultivate his allotment and thus by his own efforts and industry arrive at the satisfactions of an independent

home life and a station of progressive influence in the community. But this is not always practicable, and is then supplemented by the leasing policy of the bureau which works a fortunate advantage to the Indian, because in many cases he does not have the means to develop his land agriculturally and place upon it improvements in buildings, fencing, and other physical essentials. The leases as a rule are so drawn that the lessee not only reduces the land to a state of productive cultivation but builds thereon permanent material improvements which remain there upon its reversion to the Indian and give him a developed farm which is also a home, and altogether a property adequate for the support of himself and family. In addition, a considerable revenue is derived from farming and grazing rentals during the life of the leases. Where Indians are competent they are permitted to manage their own leases and to handle the funds derived therefrom.

There were in round numbers 40,000 agricultural leases executed, covering about 4,500,000 acres of Indian lands; and the increased rentals which have been obtained by the revenue from leases will amount to a little over $8,000,000.

The Indian appropriation act of February 14, 1920 (Pub. No. 141, 66th Cong.), authorized and directed the charge of a reasonable fee for the work incident to the sale, leasing, or assigning of tribal or allotted Indian lands, the same to be collected from the vendees, lessees, or assignees, and covered into the United States Treasury as miscellaneous receipts.

Under regulations promulgated in accordance with the provisions of the said act a fee of $5 will be charged for each lease or sublease. This will be sufficient to cover the administrative costs incident to to such work.

IRRIGATION.

The progressive development of Indian irrigation projects forcibly demonstrates the advantage of artificial application of water to arid land. Slightly over $3,000,000 have already been expended in irrigation work on the Yakima Reservation, Wash., while the gross value of crops raised on the irrigation projects within this reservation during the year aggregate $10,000,000. On the Fort Hall Reservation, Idaho, where the area under cultivation is considerably smaller and the climate and soil conditions less favorable, the value of the crops raised last year exceeded $1,000,000. This is more than the total cost of the project to date, including operation and maintenance. Such figures as these place beyond question the wisdom of expending even comparatively large sums in irrigation work. It is

reported that one farmer on the Yakima Reservation averaged $1,000 per acre for his potato crop, the selling price being $65 per ton. Later the market price for this product reached as high as $180 per

ton.

Recent appropriations for irrigation work at Yakima have been somewhat extensive, aggregating over $1,500,000 during the past four years. This has enabled the systems to be extended and perfected to a considerable extent, the area under cultivation now approximating 70,000 acres. Additional areas are being added as the system is developed. Ultimately it is expected that 125,000 acres within this reservation will be irrigated. The work at this point, as well as elsewhere, has been greatly handicapped by a constant loss of efficient employees, such as dredge and drag-line engineers, foremen, and other mechanics.

The shortage of rainfall in the Northwest during the past year seriously affected all irrigation projects, both Indian and white, and particularly those having no stored waters. Fortunately, the Blackfoot Reservoir, which supplies the Fort Hall project, proved sufficient to meet needed demands, although the stored supply was drawn down to a very low stage. The distributing system on this reservation, as originally designed and built years ago, is not sufficiently large to meet the demands now made upon it and frequently water is served through these canals beyond their safe carrying capacity. An enlargement of the entire system, while needed to supply the added demands, will prove almost as expensive as the construction of a new project. If present prices for farm products continue, however, even for a few years, the expense would be justified. The present carrying capacity of the distributing system at this point is about onehalf as large as it should be to meet prospective demands upon it, and it is a matter of regret that the original designs for this system, made years before my incumbency, were not large enough to serve the areas that can and should be irrigated.

The linear extension of a system sufficiently large to irrigate all available lands results in the expenditure of funds solely to bring in additional areas. The lateral enlargement of an existing ditch to double, or more than double, its carrying capacity practically results in a loss of the work previously done. It costs almost as much to widen a 20-foot canal to one of 40 feet as it does to build an entirely new 40-foot canal. Aside from the actual yardage removed, all structures, such as headings, turnouts, drops, bridges, etc., must be entirely rebuilt, the former structures being practically useless. This is particularly true where the structures are of concrete, which is now recognized as the most desirable method of permanent construction and is generally used. While an enlargement of this character re