The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1911-10-25
AS McLAURIN' SEES 1T.
Former United States Senator Dis
cusses Cotton Situation.

Hon. John l.. McLaurin has sent
the following communication to the
papers on the cotton situation:
"In October, 1907. there occurred
panic in the financial centers Of
the United States. 1t began with
the failure Of the Knickerbocker trust
company Of New York, which was
followed by the suspension Of many
banks in other great cities In New
York and elsewhere no matter how
much m oney you had in the bank,
you could not get a check Of more
than 800 cashed. Banks, corpor-
ations and even private firms were
permitted to issue promises to pay,
which passed current 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 pass
ed. and creditors were forbidden for
a specified time to enforce the COL
lection Of debt.
"In 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 I 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 value that
comes from the soil. Let the produc-
tion Of grain and cotton stop and see
what would become Of securities. It
Is merely worthless paper without the
fruit Of productive labor behind It.
The difference lies in the fact that
other classes are organized; the farm
ers are not. His assets are not 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.
II make this suggestion
Let the national head Of the
Farmers Union request every farm
er. both white and black. not to sell
another bale Of cotton for ten days.
In October there are few who cannot
hold their cotton ten days.
II believe that the market is IN
such a condition now that It only
needs start to have a considera BILE
advance.
There is very large short inter
est The wolld 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
half cents is not unreasonable to ex-
pect.
Another thing. no planter should
sell his cotton to a mill under privi-
lege to call for settlement at q fu-
ture date for the following reasons,
towit
Il. 1t takes the mill out Of the
marked. thereby destroying the COM
petitive buying which We need to sus-
tain the advance in prices. ..
"2. 1t is bad policy for you to
furnish the capital to run another
mans business and not get paid for
II.
"3. This cotton Is not held of the
market: 1t is in the direct channels
Of consumption. .
-. With the merger Of the mills
under one head it is peculiarly dan
gerous. With a reasonable supply as
sured they can stay out Of the open
market depress the price. and so fix
the amount which they shall pay for
tho cotton do1ivarad rnda, D,