Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1902-09-08

Section s-Be IL further enacted. That
whenever such bonded warehouseman
fails 10 perform HIS duties as such, or
violates any Of the provisions Of this act,
any person injured by such failure or vio-
lation may bring his action in a court of
competent jurisdiction against the princi-
pal and sureties upon the bond Of said
warehOuseman."
other sections Of the act provide for the
manner in which receipts for cotton stored
I'm such bonded warehouses shall be issued
and made negotiable. This act was passed
by the general assembly and approved by
the governor, December &C. 1899.
First Glass Security.
Under the provisions OF this act cotton
deposited or stored I'm a bonded ware
house becomes absolutely safe security
upon which TO secure money from a bank
Farmers who desire to hold back part OF
their cotton from the usual glutted mar
ket In the fall months when heavy re-
ceipts depress prices. can store their cot
ton. have receipts issued therefor and
borrow money from any bank on said re-
ceipts at three-fourths the market value
OF the cotton. thereby relieving themselves
OF the necessity OF selling such cotton in
case money is needed 70 meet pressing OBJ
legations.
A bonded warehouse receipt will secure
money from a bank at less rate OF in
terest than the ordinary warehouse re-
ceipt. because the security offered Is SAT-
er, in fact IL is about as safe as govern
ment bond. as such receipts would not be
negotiable unless the cotton was fully
covered by insurance. The local banks in
every community are always glad to ad-
vance money TO farmers on their ware
house receipts, consequently there is no
occasion to have the cotton dumped on
the market as rapidly as ginned. when IL
can be so advantageOusly used as safe
collateral TO borrow what money may be
needed temporarily.
In those communities where the integ-
rity OF the local warehouseman is known
and the local banks are willing to advance
money on receipts at as low rate OF In
terest as IL the warehouseman was bond
ed. there Is. OF course. no need to bond the
warehouseman, but II is a fact worthy OF
mention that the safer the security the
lower the rate OF interest charged. A
warehouse receipt marked Bonded"
across its face Is negotiable in New York
or any large city as readily as IL is at the
point OF its issue, so that the means are
thereby provided for farmers generally 70
secure money on their cotton without
their being forced to sell IL, as is usually
stated by the public.
1t is now quite evident that the cotton
crop being harvested at present will not
be large enough TO meet the worlds re-
quirement for American cotton during the
next twelve months. II the crop is mar
keted slowly the price viii rapidly adj
vance and the producers will be largely
benefited. Heavy receipts will continue TO
depress the price of the staple in the fu-
ture as it has in the past. no matter what
the size OF the crop or the demand by
the mills. We want high prices for the
producers who have been put to such
heavy expense to make this crop, and
they should use every effort in their pow
er 10 checkmake the SPECTATORS who are
using such earnest endeavors TO hammer
down prices in the face OF short crop.
HARVIE JORDAN.