The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1913-08-13
IN. B. DIAL SUGGESTS PLAN WHEREBY FARM|
PRODUCTS MIGHT BE USED AS COLLATERAL
Would Have Congress Pass Separate National Bond
ed Warehouse Bill in Which Non. n.Perishabe Products
of the Soil Might be Stored and Money Borrowed on
Them the Plan.

dluate next summer for the seat In
the United States senate now held by
f.. ID. Smith, returned from a business
trip to the north several days ago.
While in Washington he made a call
upon several OF the South Carolina
delegation in congress and talked over
the issues OF the day
Mr.. Dial gave them his views on
the question of currency reform and
several Of the congressman were so
much Interested in them that they ask
ed him to write out these views. On
his return, Mr.. Dial did so and the
letter is found below. According to
this letter, Mr.. Dial thinks that the
essential need of the agricultural
sections Of the south and west is to
provide some method which will give
stability to the farmers principal coll
lateral, his non-pcrishablc farm pro
ducts so that he will be able to market
his crop gradually. The best way of
attaining this end, he states, is through
system OF warehouses bonded or
guaranteed reliable and safe by the
United States government. The letter
OF Mr.. Dial follows:
Congress is considering changing
our banking and currency law. A
good deal has been said about lend
ing money direct to owners of cotton
and grain on warehouse receipts.
hDVn a nlnn wh irh
this problem. The great need in the
South is more money, of course We
have but two things which we can
use as collateral, namely, land and
cotton. am glad to state that con
siderable sums are being loaned on
land by insurance companies and 9th
ers, and this will take care Of it
self, What we need most at the
present time, is to get our agricultural
products in shape to be used as col
lateral. My suggestion is that Con-
gress pass a separate bill authorizing
National Bonded warehouses in which
non-perishablc products of the soil
can be stored, receipts issued there
for, upon which the owners could
borrow money in any part OF the
country
IF you Will excuse a personal al
msion, will state that | have been
farming all my life; have been prac-
ticing law 30 years and have been
engaged in the banking business all
this time. About fifteen years ago
saw the necessity of aiding our farm
ers in marketing their crops and
organized bonded warehouse at
this place. This warehouse Is built
on modern designs, practically fire
proof with the latest sprinkler sys-
tenn, etc. The insurance on contents
The idea is that the moneyed world
knows that the cotton crop has to be
marketed within short space OF
time, in order that the farmers can
meet their obligations with the local
merchants or banks and the local
banks be prepared to meet their OBJ
legations for money borrowed else
where. Therefore, the owner of cot
ton has to take whatever price he can
get for it, If this price should hap
pen to fall even % per cent or so
per cent. he has to sell. While | am
speaking OF cotton, | realize, of
course, that no law could be passed
governing this commodity alone.
Ten years ago the annual agricultural
products of South Carolina amounted
to something like $54.OOOOOO. Now
they approximate $140,O0O,0OO. Our
banking facilities have always been
inadequate | do not believe in ap-
pealing for help when one can help
ones self, but in this complex nation
OF pursuit is necessary for citizens to
ask the National Government for aid
under these peculiar circumstances.
If the states were allowed to issue
money, then it would not be neces-
sary to go to the National Govern
ment; but, when we remember that
we gave up this right to the general
government and can issue money only
on p:ohibitive terms then we can see
no reason and justice of asking Con-
gress to aid us. 1t took me some
time to make up my mind that this
was the thing to do. We see where
the Government appropriates money
to educate us and aid us in making
greater crops. We know of consti-
tutional provision for this. however