The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1912-06-12

cents the pound.
There are so many phases of the
Senator's argumnet, touching the
causes of depression, the states obi
CATION to its citizens to protect prop
erty rights, and the legal phases OF
the state monopoly, that an analysis
of his argument need not be attempt
ed here. Suffice it to say, the argu-
ment is conclusive of the facts con-
tended for, to the mind of the Ordi-
nary lay reader.
On the broad proposition has the
state the legal right to furnish means
for storing the cotton of its citizens,
there would seem to be little or no
difference of opinion. Cotton is
everything to the citizens of South
Carolina, and when they are depriv-
ed of a crop at or below the cost OF
production they are as effectuaily
robbed as if the individual would be
who had a sheep stolen from his
flock. There are combinations OF
bankers, and combinations of specu-
lators and combinations of circum-
stances that tend to depress the price
of cotton in the early marketing sea-
son, and these may not be copedWith
by the individual or a combination
of individuals. Only under the SOW
ereign authority of the state, stamp
ed by the states approval, can the
warehouse certificate be made attrac.
tive to European gold.
AS to the constitutionality of the
act, there might be pegs that a law
yer can hang his hat on, but a thing
the purpose of which is to contribute
to the prosperity of every individual
within the state, can not reasonably
be unconstitutional so far as the Or
ganic law of the state is concerned.
Now a system of warehouses owned
by individuals might be attacked by
the National Government as being
in restraint of trade, but Uncle Sam
can't prosecute the state, even if Its
act is in restraint of trade, so long as
it confines its operations within its
own borders. And then too Uncle
Sam should not forget, and probably
would not forget, that the biggest
lump of foreign gold that finds its
way into his expansive pockets is
from this same commodity, and the
lump\is large or small in accordance
with the Judgment and discretion
with which he deals the commodity
out to the foreigner.
Senator McLaurin assumes that a
large State warehouse will he. of great
advantage and this too the legisla-
ture assumed. And right here, un-
less the plan is viewed in its broad.
est application, there is sure to bt
disappointment if not ultimate fail
ure. Unless this warehouse can b.
maintained, ON years at Il loss, very
much rs the individual carries insur-
ance against loss by fire, the state
warehouse plan may die before we
see another for demonstrating it,
best efficiency or its real purpose. II
be run not 81 much to show a
profitable warehouse business a. a
medium of credit through which t..
a :congested market. When
the crop is small or nominal, prices
will be high and marketing wilE3be-
gin with gathering or cotton. will be
in local warehouses. This is
natural, and it is proper. Ifthen the
State warehouse is looked on as any
more than an instrument OF
relief under extraordinary conditions,
il is liable to prove Disappointing.
But if a system of warehouses, main
independently by each Of the
states, can operate at small
loss for four years of small crops and
in the fifth year of a bumper crop
can save five cents per pound to the
southern farmer ;on his cotton, they
will prove a valuable investment.
The warehouse system tends to
distribute the crop, as of one crop.
It tends toward a stability of price
desired both by the farmer and the
manufacturer. AS a distributing
medium, as an equalizing and sus-
force it is all right. AS a fl
1ancial venture, in the narrow sense
If profit on storage for the institution,
may prove disappointing if not a
But the financial advantage
hat the cotton states will derive by
reason of ample cotton warehouse
accommodation will exceed the most
optim istic estimate.