Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1914-09-22
Ihc 1Iorhyille enquirer.
Entered at the Postoff1ce in Yorkville
as Mail Matter Of the Second Class.
protect his product by

The special session Of the general
assembly called by Governor Blease, II
is to be hoped, will confine it's work to
the emergency which now confronts
South Carolina and the south. and not
attempt anything in the way of gener-
al legislation that will likely take us
afield from the main issue.
1t seems to be pretty we'll under
stood that the Federal government is
not going to do anything to relieve the
situation further than to issue emer-
gency currency under limitations that
promise but little help to the actual
producer of cotton; because as things
stand now, the banks may be expected
to be very timid about the gold reserve
required to secure the emergency cur
rency.
In view Of the fact that the secretary
of the treasury has 1t in his discretion
to increase at will the per centage or
gold required to secure the emergency
currency, and in view Of the fact that
the Bank Of England has established a
branch in ottawa, Canada, where gold
can be deposited without danger from
ocean transportation, there appears
possibility Of serious embarrassment to
all our extensive financial plans.
For instance, England and France
hold American securities sufficient to
absorb every dollar Of the emergency
currency that this country can issue
and the discounting facilities Of the
regional reserve banks in connection
with the branch bank of England in
Ottawa will afford channels through
which the United States treasury may
be forced to suspend specie payment
or give up every ounce Of its gold to
it's neighbors across the water.
Heretofore in all times past the ma
tional treasury's gold reserve has been
maintained through the sale Of cotton
from the south; but with no cotton now
selling, this means Of handling the
situation is no longer available. Many
of our readers no doubt will remember
how the future possibility Of just such
a situation was emphasized in a speech
that Hon. John l.. McLaurin delivered
in the senate in February of last year
in support Of his warehouse BILL
OF course Mr.. McLaurin is not to be
credited with having foreseen this war,
but it is not too much to say that he
could not now describe present finan-
cial conditions much more accurately
than he did then, and as we see 1t, II
would be an easy matter to amend MS
warehouse bill so as to cover the pres
ent situation.
AS matters stand at the present time
with European mills paralyZed and
ocean transportation temporarily sus-
pended, and an actual immediate de-
mand for only about one-third or TINS
years production, the entire crop now
seems subject to the tender mercies OF
the domestic spinners who may yet
have the opportunity to buy as much
as they want Of it at 6 or I cents
pound or maybe less, and the most
practical remedy we can see is the
passage of the state warehouse bill.
With the warehouse bill on the
statute books giving the necessary au
thority, it will be entirely feasible to
hold the South Carolina crop for the
English mills until such time as these
mills may be ready for 1t, and in the
meantime the owners OF tHlS cTop HldS
have the use Of something like cents
pound at low rate Of interest suf-
icient to keep them going until prices
are advanced to reasonable figures
and the producers are ready to sell and
collect the balance.
Exactly as to how such financing
may be managed without the need of
dollar of gold more than sufficient to
settle trade balances, is fully set forth
in the speech that Mr.. McLaurin de-
livered in the senate last winter. Amer
lean securities could be discounted by
the correspondents of the Bank OF
England in New York and Boston
South Carolina owes New York and
New York owes London. The debts
contracted in the making Of the crop
could thus be settled by transfer OF
credits.
Under all the circumstances we are
unable to conceive Of any practical So
luton of this problem that does not in
clude European spinners. We say this
because the spinners are at the root OF
the matter, and anything that does not
go to the root seems bound to prove
abortive.