The herald and news. [volume] (Newberry S.C.) 1903-1937, 1914-09-01
TO HOLD PRODUCT
Cotton Congress Committee Approves
McAdOO's Plan to Save the
Situation.

NcAdoos plan to accept as basis
for currency notes secured by ware
house receipts for cotton, tobacco and
naval stores at 75 per cent. Of their
race value was approved tonight in a
report by the special committee ap-
pointed by the conference Of represen-
tative planters, bankers, Tanufactur-
ers and dealers held here August
"A and 25.
The committee recommended that
every effort be made to assist pro-
ducers in holding their cotton for a
price that will minimize their losses
until the channels of foreign trade
are reopened. Eight GEMS pound
was suggested as fair basis for loans
on cotton
Tie report which was submitted
to Secretary McAdoo, follows:
Approves OF Plan.
q. That the committee entirely ap-
prove of and congratulate you on the
announcement made by you yester-
day afternoon that notes secured by
warehouse receipts for cotton and to-
bacco and naval stores, and having not
more than four months to run, will
be accepted as a basis for the issue
Of currency to the members OF the
national currency associations at IS
per cent. of The face value of said
notes.
80. That it is the sense Of the com
mittee that cotton, tobacco and naval
stores should be marketed as deliber-
ately as possible until they can again
be exported in normal quantity and
that when properly conditioned should
be warehoused with responsible con-
Germs, that they should be protected
against weather damage and properly
insured against loss or damage by
fire.
"3. That warehouse receipts for
those commodities are proper collat-
eral for loans by banks, and should
be accepted with such limitation as
to margin. inspection and valuation as
conservative bankers may each in
their discretion see fit to impose
Will Last for Years.
+. That tie average market value
OF middling cotton Tor the past six
years has been in excess Of y cents
per pound, that the committee is in
formed that the cost of producing
cotton averages throughout the United
States about 9 1-2 cents a pound, that
it is a rule of economy that the pro-
duction of staple commodities will de-
crease if they continue unstable at
less than the cost of production plus
a reasonable profit That cotton does
not deteriorate when properly ware
housed, and is as good 20 years after
it is picked as when it is first gath
cred; that it can therefore be carried
over until the restoration Of normal
business conditions enables the worlds S
con sumption to absorb it. The COM
mittee is therefore of the opinion that
every effort should be made to assist
the producers to hold their cotton for
a price that will minimize their loss
as far as possible until such time as
the channels of foreign trade shall be
reopened. That loans upon cotton
made upon a basis Of 8 cent per
pound for middling less such margin
as the lender shall consider necessary,
will afford reasonable protection to
bankers and will greatly facilitate the
financing of our most important ex-
port crop in the present emergency.
The Eight-cent Basis.
"5. That in suggesting s cents
per pound for middling cotton as a
basis for loans, it is not the purpose
OF the committee to convey the idea
that that figure represents in their
opinion the intrinsic value of cotton,
but that it is sufficient in their judg-
ment to meet the requirements nf the
situation and enable the farmer ID
market his cotton in an orderly anl
deliberate manner.
'6. That in case of tobacco and
naval stores the committee is inform
ed that when these commodities are
properly conditioned, stored and iu-
sured, they are practically non-perish-
able, and that the committee there
fore recommends that warehouse re-
ceipts for tobacco and naval stores be
accepted as security for loans On q