The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1913-07-10

lima which would render us independ-
ent. The warehouse receipts would
be a collateral eagerly sought in Eu-
rope when the price of our cotton is
fixed. All of the money of this coun-
trv for practical purposes is drained
each year into reserve banks of New
York. The advance funds for
making the crops, and all of the
obligations are made to come due in
the fall. New York must have our
cotton to draw European gold to
maintain her supremacy. If the
farmers on a large scale undertake
to hold, the New York banks calls
the local bank, it calls the merchant,
and he calls the farmer, who can only
paw by sacrificing his cotton. This
means twelve months supply
| thrown on the market in three
| months, with the price steadily fall
| ing. It enables domestic mills to
stock up with a supply of cheap cot
| ton and the cotton merchants take
the surplus at lowest prices, and in
| late wears with an almost total ab-
sence of competitive buying between
the domestic and foreign merchants.
TIL lower they can force the price in
the fall the more room there is for
an advance in that held on storage
by these great cotton merchants.
When you consider that the funds
used in large part for this is money
sent by the country banks to New
York. as a reserve fund, it's full
enormity is comprehended. Two
thirds of the reserve funds of the en-
tire country are deposited in New
York: it is used as "call money and
loaned to cotton and stock specula-
tors to gamble with. They can ere
ate a stringency at any time they
please by calling these banks. What
everybody should want is stable
prices. 1t is not a question of sup
plv and demand for: :cotton, but OF
supply and demand of money, and
this is absolutely in the hands of
few men in New York City controll-
ing the Clearing House Association.
Cotton is the corner stone of the
great structure which they have built
up, because it is the one crop that
draws gold from Europe. would
like to know why, if we produce the
crop, and own the lands and Europe
is to be drained of her gold reserves,
that there is not sufficient financial
wisdom in Congress from the South
to utilize a God-given monopoly for
the benefit of our own section? Why
should all of the bank reserves of the
country be concentrated in New
York?
Under Wilson's new currency
scheme there will be regional reserve
banks. and the money from the South
Carolina crop will be kept at home.
At present in the United States the
right to issue money is based upon
United States bonds. I understand
that this relic of barbarism and her
itage of the war, by means of which
they have made us pay heavier war
debt than France paid Germany, IS
to be changed, and that the right to
issue money will be based upon the
assets of the banks, as it is in Canada,
cotton warehouse certificates, under
State management. We could finance
our cotton with these certificates and
pay all of our domestic debts. Then
demand from the consumers of cotton
q price that would forever put the
man with land beyond the reach
of the usurer and money shark, both
great and small. Land itself is un-
wieldv and not a good bankable as
set. but put the product of that land
into a paper that passes from hand
to hand as readily as money itself,
and YOU give the land value hard
| to estimate This is nothing more
than what other nations are doing.
1t is .nationalize great monopoly,
as Germany has done the potash in
dustry, and Sweden its iron and steel
| industries. 1t is based upon the fun
damental principles of justice, and
| is in accord with the trend of events
and the spirit of the times. Mime
sofa has applied it to wheat, and the
governor of Wisconsin is backing a
similar bill for all farm products.
The South produces two-thirds of
the clothing material of the world;
they must have our cotton or go half
clothed. Furthermore, the cotton of
the South is absolutely necessary to
this nation in maintaining its suprem-
acy in finance. Take it away and the
| ha1ance of trade is against us