The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1909-09-02
LENDING MONEY
AT 6 PER CENT.
Standard Warehouse Co.
Announces that it will
Lend Money on Stored
Cotton at 6 Per Cent. A
Long Step Toward Con-
troll of the Cotton Crop. .


Co., in company with Mr.. Lewis
w. Parker, the well-knopn cot
ton mill man of Greenville, has
just returned from Boston where
he went to confer with bankers as
to securing money for advances
on southern Gotten. Mr.. Stack
house had most successful trip
and was assured that he could get
all the money he wanted to assist
In financing the crop. He was
successful in negotiating loans at
very low rate of interes; and the
farmers Loan & Trust Co of
Columbia, with which he is con-
nected, has offered to advance
money on cotton stored in Stan
dard Warehouses theat low rate of
6 per cent. This low rate of in
terest will materially assist the
farmer in his efforts to control
the marketing of the crop aud is
long step toward the solution of
the great problem that has confron
ted tine bonded warehouse in the
south. The satisfactory results of
Mr.. Stackhouse's trip to the north
mark the beginning of new era
in the cotton industry in the south.
Speaking of his trip Mr.. Stack
house said:
We found the strong financial
interests of the East willing to
, make advances on Southern cot
ton properly warehoused and had
no trouble in pertecting arrange
zments. The truth is that in the
West where Easterns banks have
been lending money on wheat and
other grain crop the prosperity has
been so great that the Western
banks are no longer in need of
much assistance and can finance
their own crops. Eastern bank
sers therefore must look for an
other field in which to lend mon
ey and they find the Standard
Warehouse cotton receipts wholly
acceptable collateral.
If you inquire the reason that
Southern banks are not equally
able to finance the farmers with
out assistance from the East, since
the price of cotton has increased
in the last seven OF eight years,
the answer is that the increase in
the value of the Southern cotton
crop has been by. no means so
great as the increase has been in
the value of the grain crop. For
example, suggestive table in the
current number of The Literary
Diges, 1'oints out that while dur
ing the period from 1900 to 1908
the value of the wheat crop in
creased 90 per cent, the increased
value of the cotton crop was only
81 per cent.
In my judgment the explana-
ton of this is that the Western
farmer has been accustomed for
years to store his wheat at the
elevator and to sell wheat only
when the world wants wheat,
while, until recently, the cotton
farmer has disposed of his crop
during the harvest months and
the two or three months immed-
iatelyfollowing at what ever prices
we're offered. Neither wheat nor
cotton can be economically held
by the farmer unless he have
warehouse facilities-and the
wheat farmer has had them Ion
ger and more of them.
Warehouse facilities which
enable the farmer to borrow money
Xon their product at E per cent.
ought to go far in assisting the
Southern farmers to distribute the
marketing of their cotton during
the IL months of the year rather
than during four, and that is the
real problem that the farmer must
face If he would obtain for his cot
ton what it is worth.
Whenever the Southern far
mers universally adopt the custom
of storing their cotton in ware.
houses, protecting it from damage
ofevery kind at the most economical
rates and selling it as the demand
develops throughout the year, the
methods of n arketing, which are
scarcely second in importance TO
the methods of producing, will