The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-10-14

As was to be expected, the extra
session Of the legislature has afforded
opportunity for the introduction OF
numerous impracticable bills. Per
haps the most Objectionable and Inn
practicable Of the whole brook OF
freak measures Is the bill to reduce the
rate OF interest to six per cent. Ev-
cry borrower waits lower interest
rates. and. unfortunately. 1t seems
that a majority Of the business men
and farmers Of the South are bor-
rowers. hence the popularity Of the
proposition. But the idea that the en-
actment by the legislature Of a law
declaring IL Illegal to charge more
than six per cant interest will solve
the problem and make money both
cheap and plentiful Is based upon
false premises. The law may declare
it crime to charge more than six
per cent. and II may be possible to
prevent the collection of higher rate
Of interest. but there Is no power
vested In the legislature by which 1t
can force ane man who has money to
lend IL I'm this State. II the money
lenders cannot obtain more than six
per cent interest In South Carolina and
can obtain seven or eight per cent
elsewhere they will refuse to lend any
money In South Carolina. Just now
there Is q worldwide scarcity Of mon
ey and an unprecedented demand
borrowers are seeking money and to
obtain II are Offering higher rates of
Interest than they have had to pay
heretofore. For some years there has
been q great deal Of money seeking
safe investment and the borrowers
who had gilt edge security were In a
position to bargain concerning the
rate Of interest, but this condition does
not now prevail and the attempt to re-
duce the rate of interest by law will
almost certainly result in drawing
money out Of the State at a time when
u Is worse needed than for many
years. In normal times six per cent. is
a fair rate of interest and the aver
age investor Is satisfied with six per
cent. IL the security Is good, but now
that the demand for money is great
and big corporations and govern
ments are bidding against each other
for II the average small borrower has
little chance of obtaining loan at six
per cent. Even the Southern banks
are paying six per cent and more to
the northern banks for the money
they borrow and II they are. forbidden
to charge more than six per cent
they cannot continue to do business.
The legislature has before IL two
plans for dealing with cotton acreage
problem. One Is to prohibit the plant
Ing OF any cotton next year. the other
To curtail the cotton acreage not less
than go per cent. "A variation Of the
second plan Is to fix the cotton acreage
at n definite number of acres TO each
plow-one bill that has been introduc-
ed fixing the cotton acreage at seven
acres per plow. The enforcement Of u
law cmbodying either OF these plans Is
the real problem that the legislature
must solve. for II In conceded that
either plan would accomplish the
chief end sought-the prevention of
the accumulation Of stupendous
surplus Of cotton that would congest
the cotton markets OF the world and
make cotton n drug ut any price. To
plant no cotton next year would wipe
by the exceptionally large crop pro-
duCed his year coming on top of tn,
Decentralization Of the cotton manu-
featuring industry by the war. This
plan would. also. IL is claimed. eradi-
cate the boil weevil. Therefore 1t has
much To- recommend II. But on tn,
other hand TO plant NO cotton mex
year would utterly demoralize labor
conditions throughout the South ant
would work "A terrible hardship upor
the common farm laborers who have
for years. depended upon the cottor
crop for their daily bread. If no cot
ton is planted In the entire South an,
small grain. corn, tobacco. peanut
ai.d truck are substituted what viii
of negroes who have heretofore foun,
seasonal employment in spring an'
summer i'm chopping cotton and i'm tn
other crops that may bc substitute,
for cotton will require "a great deal q
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