Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1911-10-17
AS MeLAURIN SEES IT.
Former United States Senator Dis
cusses Cotton Situation.


Hon. John L. McLaurin has sent the
following communication to the pa
pers on the cotton situation:
I'm October, 1907, there occurred
panic in the financial centers Of the
| United States 1t began with the fail
ure of the Knickerbocker Trust COM
pany Of New York, which was follow
ed by the suspension Of many banks
in other great cities. In New York
and elsewhere, no matter how much
not get a check of more than 800
cashed. Banks, corporations and even
private firms were permitted to issue
promises to pay, which passed cur
rent as money. The secretary Of the
treasury hastened to New York and
placed the resources of the United
States treasury at the command of
the New York bankers. In many
states stay laws were passed, and
creditors were forbidden for speci-
fed time to enforce the collection Of
debt.
I'm this year of grace, October,
| 1911, the cotton planters are in just
as serious a condition as were the
bankers and mercantile classes in
| 1907. Yet 1 fail to see the govern
ment or anyone else rushing to their
aid. Our promises to pay do not
pass current as cash, and no stay law
holds the hand of our creditors.
1T Is not that anyone wishes to
injure us. Our property Is certainly
as safe basis Of credit as the stocks
and bonds Of the banker. Stocks and
bonds are all based on the values that
come from the soil. Let the produc-
| ton Of grain and cotton stop and see
what would become OF securities. 1t
Is merely worthless paper without the
fruit of productive labor behind 1t.
The difference lies in the fact that
other classes are organized; the farm
er is not His assets are not in avail
able shape for him to borrow money
upon them.
Cotton Is now below the cost of
production, and unless something is
done speedily the remedy will come
too late for this crop.
"I make this suggestion:
Let the national head of the Farm
ers' union request every farmer, both
white and black, not to sell another
bdiC VI lcIl OClO-
Der there are few who cannot hold
their cotton ten days.
"T believe that the market is In
such condition now that 1t only
needs start to have considerable
advance.
There is a very large short inter-
est. The world is on that side. Let
the receipts suddenly stop from any
cause just as the frost season ap-
proaches and start the shorts to COW
ering, and an advance of two and a
half cents is not unreasonable to ex-
| pect.
Another thing, no planter should
sell his cotton to q mill under privi-
lege to call for a settlement at a fu-
ture date for the following reasons
| to-wit:
II. It takes the mill out of the
market, thereby destroying the COM
uetitive buying which we need to sus-
tain the advance in prices.
"2. It Is bad policy for you to fur
nish the capital to run another mans
business. and not get paid for It.
49, This cotton is not held Off the
market; 1t is In the direct channels
of consumption.
~. With the merger of the mills
under one head II is peculiarly dan
gerous With a reasonable supply as
sured. they can stay out of the open
market, depress the price, and 80 fix
the amount which they shall pay for
the cotton delivered under contract"