The herald and news. [volume] (Newberry S.C.) 1903-1937, 1909-08-31
MONEY AT SIX PER CENT.
Farmers Loan and Trust Company
Will Lend on Cotton at Six Per
Cent.

The Standard Warehouse company
has arranged to lend money to the
farmers on cotton stored III their
warehouses at the low rate Of & per
cent. This company oNn> 4 ware
house in Newberry and farmers who
desire not to sell can get cheap money
from the warehouse company by Stor-
ing their cotton in the warehouse.
The warehouse in Newberry IS IN
charge of Mr.. James D. Wheeler. who
is always accommodating and will be
glad 10 give any information in his
pnwer. Mr.. c. f. Summer. Of New
berry, is one of the directors.
Mr.. I. B. Stackhouse. of Columbia,
is president. In giving out an inter-
view on the subject Mr.. Stackhouse
says:
At Six Per Cent.
"'I think 7 can safely say thai the
Farmers Loan and Trust company Is
prepared to make advances on all cot
ton stored with the Standard Ware
Eouse company at 6 per cent. We
found the strong financial interests
Of the East willing to make advances
on Southern cotton properly ware
housed and had no trouble in per-
fectine arrangements. The truth IS
that in the West where Eastern banks
have been lending money on wheat
and other grain crops 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 bankers therefore
must look for another field in which
Standard warehouse cotton receipts
wholly acceptable collateral.
eff YOU inquire the reason that
Southern banks are not equally able
to finance the farmers without assist
ance from the East, since the price OF
cotton has increased in the last seven
or eigth Years, the answer Is that the
increase in the value Of the Southern
cotton crop has been by no means so
rreat aS the increase has been in the
value of the grain crop. For example,
suggestive table in the current num-
Der of the Literary Digest. which YOU
NAV have seen. points out that while
during the period from 1900 to 1908
the value nf the wheat crop increased
90 per cent. the increased value OF the
cotton crop was only 81 per- cent.
The Explanation.
In nv judgment the explanation
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 Immediately
| following at whatever prices were Of
fered. Neither wheat nor cotton can be
economically held by the farmer un-
less he have warehouse facilities
and the wheat farmer has had them
longer and more of them.
"The Standard Warehouse eompa-
ny is Ste&dilv enlarging its facilities
for storing cotton. At present its
capacity is $4,000 bales but it con-
templates the establishment Of other
warehouses at points where the de-
mand for them seems to justify 1t.
Warehouse facilities which enable the
farmer to borrow money Oh their
product at 6 per cent. ought to 60 far
in assisting tire Southern farmers to
distribute the marketing of their cot
ton 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.
Business at Home.
In our arrangements with East
ern bankers to furnish money Tor ad-
vances on cotton warehouse receipts,