The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-01-28
ADVOCATES WAREHOUSE lIFi| BILL.
TIME RIPE FOR SUCH A LAW.
SAYS JOHN T.. MclaACRIN.
Ne Believes Warehouse Act In Con.
soctton With Currvacy tmw VIII
Hetp Ststs

day on his bin which provides for a
state warehouse system for storing
ana grading cotton. The address was
listened TO closely, and members con-
sratulated the Marlboro senator on
his able efforts. senator McI4aurin
expressed the strong conviction that
this bill should be enacted following
the passage by congress of the new
currency law. which. he said. show
ed congress had met the South more
than half way in its efforts TO in
sure the producer of cotton getting ut
all times the full value for his pro-
Duct"
Reviewing briefly the favorable
changes OF public sentiment for anti
option legislation. no expressed free
conviction that congress would this
year enact some law Of this kind, and
stated that ne proposed in his address
To deal with his warehouse bill as II
is affected by the new currency legis-
Istion. and the attitude OF the New
York Cotton Exchange arising from
the anti-option legislation.
The real purpose OF every one of
these bills Is TO establish and main
tain better prices for cotton, but I will
undertake TO show that they would be
failures without some option on the
part or the producers TO take care OF
the surplus supply Of cotton.
Each bill seeks to limit the activity
Of the market by forcing speculators
te take the delivery OF actual cotton
All the law can do. short Of closing
every cotton exchange. to to make
speculation pay the carrying charges
Of the actual supplies and the risk VI
huctuation In price: IL cannot be
forced Inside the constitution to fur
nish the capital to hold tho supplies.
The producers rnust md some way TO
do this for themselves.
since we met last winter the new
currency law has been passed. I be-
lcve II is a good law; II may lead to
infiation. but II will not be the fault
of the law. The purpose OF the federal
reserve act was to reduce the call
loan fund in New York. which. while
IL aid not foster gambling in stnple
products. furnished necessary funds TO
carry a surplus OF these products."
He stated that the cotton warehouse
receipts would probably have been
made the bams of an actual issue of
currency In South Carolina. Louisiana,
Arkansas. Texas. and other states
had the proposed warehouse laws been
enacted. He attributed the passage OF
that section q tho currency law pro-
vidihg that the member banks loan
money to carry agricultural products
20 the agitation in the Southern States.
particularly this State. TO curb specu-
iation on these products.
Senators" no said. 1t In now time
To pass this warehouse bill if We ever
intend To do 40. This Is not a measure
To revolution!se finance: II il not In.
tended that tho State OF South Caro-
lima should embark In tho cotton bus
mess. have talked with bankers in
New York and Boston and they are
willing to take our warehouse re-
ceipts."
Discussing this proposed law as an
adjunct OF the business system. no
said. II was not intended TO put the
cotton buyers out Of business nor
overturn the laws Of supply and de-
mand. but 1T In intended TO insure the
producer at all times getting the full
value for his cotton"
He gave as the basis upon which
the reserve banks would furnish mon
ey Tor this business the following:
II. The title TO the cotton must be
beyond question.
q. The basis of the collateral (cot-
tom must be graded properly upon
call
S. The cotton contracted for (not
other cotton) must be delivered upon
call
Since ! Rave been STUDYING this
question have wondered how we
stood no long inert when tho problem
Is no simple and easy OF solution. un-
less II be that Its very size has awed
us into helpless activity. Threatened
snti-option legislation has forced the
New York Cotton Exchange to signify
its willingness To make deliveries of
cotton I'm the south. Congress has
met US more than half way i'm its (thc
new currency bili's) provisions as 90
bills OF exchange drawn for agricultur-
sl products"
In regard to the statement that tn.
price of cotton Is made in Liverpool.
he aai1 az A., l.. ,....- 4. l.1o,,..-