Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1914-09-18
A WAREHOUSE ACT
Mr.. McLaurin Gives a Discussion Of Its
Value in This Crisis.

Value in This Crisis.
Editor Yorkville Enquirer:
In view Of the special session l de-
sire to point out what would be the
value of a state warehouse act in this
emergency, so that members may be
considering the problem.
Cotton is the cornerstone OF inter-
national finance and no plan that does
not take this into consideration WI!
reach far enough to be Of much prac-
tical value.
1t is idle to depend on the Federal
government to go further than II mas
Let us depend upon ourselves and
work with such tools as we have.
There is no use in looking to New
York. She has always made advances
to produce the crop, so as to be in
position to demand gold from Europe.
When war conditions force Europe to
sell American securities and start
flow Of gold from instead OF to New
York, and the lack Of ocean transpor-
tation makes cotton useless to start the
annual import of gold, then cotton 10
New York banks is worthless COLI
modify.
1t seems to me that the key to the
situation in its broader aspect lies with
the English mills. Let us suppose that
the last general assembly had passed
the warehouse bill and that South Gar
olina had in sight one million bales OF
warehoused cotton. The chairman OF
the board would go to England ana say
to the president Of the Federation OF
Spinners, controlling in an area out
little larger than Marlboro county one
third of the spindles of the entire
world Mr.. President, here rep
resenting officially the s or South
Carolina, which will produce TINS year
l.4OO, 900 bales Of cotton. Here Is copy
of the act Of the general assembly uh-
der which l am proceeding. The 40
mestic mills are not taking our coIIoh
EXCEPT at sacrifice prices. The ocean
channels are closed to you by reason
of war. The New England mills pro-
pose to take advantage Of this sltua-
ton to drive you out OF our oonesllc
market and South America where you
shipped last year $S00,000,O0O worth Oh
cotton goods. If they succeed In ouy-
ing a two-year supply at one-year
price your trade will be gone. lou
can't get the cotton or only at twenty
cents a pound, because legislative
necessity in others, has cut the acre
age so per cent.
Here is a copy of our warehouse
receipt. The sovereign state OF South
Carolina guarantees the grade ana
weight 1t guarantees the title ana
that the Identical bale of cotton Will
be delivered only on the presentation
of this receipt. Here is one mlllloh
bales of cotton, Mr.. President, that
you can impound until you need IT,
Neither Georgia nor North Carolina
have a state warehouse system. We
can also corral the bulk Of those crops
If you will make it to our interest TO
do" The president would reply:
"Our difficulty is that we cannot com
mand our usual supply OF gold. we
are having to finance this war. Rus
sia and Belgium are constantly draw
ing upon our gold reserve, and TO sup
ply that we are sending over Amerl-
can securities and selling them at
great sacrifice.
The reply would be: Mr. Presi-
dent. YOU do not need one dollar of
gold. Under our new currency law
these securities can be discounted by
the correspondents Of the banks OF
England in New York. Our debts for
making the crop are ultimately due
in New York You control in Eng
land over three billion dollars OF these
securities, have your correspondents
to give the state warehouse BOARD
credit in New York for these certih-
Gates at 1-2 cents per pound for one
million bales of cotton on the basis
of middling and l will leave the GER
tificates with you. We will not de-
mand gold but only credit in New
York, where our debts are, and as
they owe you, the entire matter can
be arranged by trade balances to be
settled in gold, when we agree on
selling price for the cotton This,
Mr. Editor, is about what l outlined
in a speech l made to the state senate
in February, 1913, and again last
winter. / still think the plan SOUND
and | believe that the key to the stu
alton lies in a deal with the English
spinners. 1t is entirely practical to
issue a local cotton currency or bor-
row money in the west, but all of this
is a mere temporary eXpedient. TWO
thirds of our crop is consumed III
Europe. the price is fixed in Europe
in terms of gold. There is general
moratorium throughout Europe, ana
we must conform ourselves TO that
situation. 1t cannot be done for the
benefit of all through individuals.
Individuals will do it, and are doing
il for their own benefit. II some OF
the strong interests owning great ware
house and bank, who favored the
state warehouse bill, are not against
it for self-interest when the legisla-
ture meets, / shall be agreeably sur
prised AS this is probably the last
public service which / shall ever rem
der to South Carolina, l intend to
give my unselfish devotion to the
course that will benefit the greatest
number of people.
The pound of cotton must be the
unit of credit, otherwise those with
personal credit will thrive at the eX-
pense of those who have it not.
Respectfully,
John L. McLaurin.
Cant "A