The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1902-09-16

nc question OF 4Olli0E back part II
the cotton CROP ami marketing the staple
loWly 50 as 10 meet tho legitimate de-
mand OF the manufacturer for the raw
material has been matter OF discussion
for several years. Such plan il put in
to general operation by the planters each
season would in Very short time sue
cessfully solve the problem Of how to ob-
tain the true value OF cotton before II
leaves the hands OF the producers
The most feasible method suggested
for the rapid Inauguration OF this high.
~ desirable system Of handling the crop
to place the cotton in Warehouses and
ahve receipts issued against it by tine
warehousemen using the receipts as col
lateral for borrowing money from banks
when necessary 10 enable tho owner of
the cotton TO hold it, one Of the pruci-
pal objections first urged against tho
plan by banks located especially in the
larger cities was that the ordinary re
ceipt issued by the local Warehouscmcn
whose responsibility Was unknown, might
or might not be valid and safe.
The banks on many occasions arrived
at this conclusion after advancing large
sums of money on spurious and worth
itme the money was advanced We're
thought to have been good but after
wards found that the supposed actual
cotton they represented could not be
found In many Of the larger cotton cen
ters in this and other states thousands
OF dollars were lost some years ago in
that way by the banks. The hanks We're
not caught by farmers, but by dishonest
W9rchouSemen who were using spurious
receipts issued over their own signatures
ard depositin2 the mWith their bankers
for the purpose of securing funds to
speculate III futures and who got on In"
wrong side OF the deal wreclling them
selves and causing losses to the banks.
LAW BONDING WAREHOUSES;
In many instances farmers also lost
their cotton which had been stored in
Warehouses which were being conducted
for speculative purposes, 50 that the leg
islature Of Georgia in 1890 passed law
to bond warchousemcn which would
protect the owner of cotton stored and
the banker lending money on the ware
house receipts. The whole object and
intont Of the law was to strengthen Tho
security and validity of the cotton ware
house receipts. so that such receipts
would be safe negotiable paper at any
bark in the country. Such receipts
would either enforce the proper delivery
of the cotton against which it was is
sued when demanded by the holder O.
owner or the bond of the Warehousemen
would protect such holder or owner of
the receipts against loss III case the cot
| ton had been illcgtimately disposed Of.
! The following is a partial copy Of the
/ act which is sufficient to give the object
and purpose f the law, and the plan by
which each local warchOusemar may cas-
! lily make the receipts he issues gilt edge
security:
| Section BE it further enacted. That
| every person or corporation desiring to
| become bonded public WarChouscmal
under the authority granted by the pre-
| ceding section, shall give bond TO an
| amount based on the estimated Ealu.
said WarchousCman viii provide storage
| for. Said bond shall be made payable
! to the clerk of the Superior court OF the
! county wherin such bonded pubic ware
! house is situated. and bo conditioned fol
/ the faithful performance Of his duties
ard liabilities as q bonded public ware
| houscman under the provisions Of this
/ act. The surety or suretjoS upon saic
| bend shall be some one or more of ,he
! guarantee. surety. fidelity insurance ol
/ fidelity and deposit companies which AZ
described in section Of an act entitled
| an act to authorize solvent guarantee
companies. etc, TO become suretios upon
| the bonds Of city. county and State of
! icials and providing remedies agaia5j
such bonds and for other purpose az
proved December 2f 1896: all Of tho pro