A Century Strong: From the SDAHO Vault, the Dirty ’30s and the Birth of the Inter-Allied Council

(1933–1939)

For our April edition of A Century Strong: From the SDAHO Vault, we revisit one of the most innovative—and often overlooked—responses to the crushing challenges of the Great Depression. While 1933 brought relief to hospitals through the newly created Beverage Revenue Fund, it also sparked the formation of a unique collaborative effort: the Inter-Allied Council, an experiment in statewide coordination and shared problem-solving during one of the hardest decades in South Dakota history.

A New Idea Takes Shape

In the depths of the Depression, South Dakota’s rural families were hit especially hard. In response, a new state-operated, federally financed program called the Farmers Aid Corporation (FAC) was created to support distressed farmers receiving assistance through the Farm Security Administration.

At the center of this effort was Dr. B.A. Dyer of Arlington, South Dakota. Pulled from private practice, Dr. Dyer was tasked with overseeing the medical and hospital needs of struggling farm families. Recognizing that no single profession could meet these challenges alone, he proposed a bold idea: bring the state’s health care and other  “care” sectors together under one shared council.

Thus, the Inter-Allied Council was born.

A Multi-Sector Alliance

The Council was composed of two representatives from each of the following associations:

• Medical

• Hospital

• Pharmacy

• Nursing

• Veterinary

While the veterinary representatives eventually withdrew due to limited overlap with the others’ concerns, the remaining four groups embraced the partnership. For several years, the Council met nearly every month, working collaboratively to navigate the complexities of providing care during the most financially strained period in the state’s history.

Their work centered on:

• Coordinating care for families served by the FAC

• Ensuring fairness in compensation across professions

• Addressing shortages in services, supplies, and personnel

• Strengthening relationships among South Dakota’s health care sectors

The Inter-Allied Council became an essential forum for problem-solving in a time when hospitals and caregivers were stretched thin.

The Council’s Quiet Conclusion

As the decade progressed, the Farmers Aid Corporation was eventually dissolved. With its closure came the natural end of the Inter-Allied Council. However, one final act remained: determining what to do with the remaining FAC funds.

The leftover funds were turned over to the Council, which then made a lump-sum distribution to the medical, hospital, and pharmacy associations. The Nurses Association did not participate in the final distribution, as all of their claims had already been paid in full during the life of the FAC.

Closing Another Chapter of the Tough ’30s

The story of the Inter-Allied Council reflects the ingenuity and resilience that defined health care leadership during the Depression era. Though short-lived, the Council demonstrated the power of collaboration across professions—an idea that continues to influence SDAHO and its partners today.

Join us next month as our SDAHO Vault series moves deeper into the 1930s and uncovers more stories of perseverance, innovation, and unity during one of the most challenging decades in our state’s health care history. Together we’ll learn more about the Basic Science Law, and how SDHA celebrated its first 15 years as an association.

To view previous articles from the series:  A Century Strong from the SDAHO Vault visit sdaho.org/100th or

January A Century Strong: From the SDAHO Vault – the beginning

February A Century Strong: From the SDAHO Vault – times got tough

March A Century Strong: From the SDAHO Vault – SDHA takes on advocacy