The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-09-02
70 hold COTTON CROP.
COMMITTEES -APPROvEs NrADOUs
PLAN 10. SAVE THE sITUA-
TON.
COaferccs Suggest to Secretary of
Trcassry That Eight Cents Will bc
Fsir Value and Will Enable Planters
70 Meet Crisis With Minimum of
IOua.
Washington. Aug. 2s.-ss

Washington. Aug. 2s.-secretary
McAdoo's plan to accept as basis
for currency, notes secured by ware
house receipts for cotton, tobacco and
naval stores at rs per cent of their
face vslue was approved tonight In q
report by the conference of represen-
tattve planters. bankers. manufacture
era and dealers held here August
~ and Is.
The committee recommended that
every effort be made to assist pro-
ducers I'm holding their cotton for a
price that will minimize their losses
until the channels. of foreign trade
are recpcned. Eight cents a. pound
wss suggested as fair basis,for loans
ontcotton.
The report. which was submitted
TO Secretary McAdoo. follows:
~, That the committee entirely ap-
f, prove ofyxnd congratulate you on the
onnouncewent made by you yester-
DAY afternoon that notes secured by
warehouse receipts for cotton and to-
ba4co and naval stores. and having not
mcts, than four months to run. will
- accepted as basis for the issue
a currency to the members Of the
national currency associations at 75
pr cent OF the face value of said
notes. &c.
-. That Il is the sense Of the COM
inittee that cotton. tobacco and naval
stores should bs marketed as deiiber-
ateiy ~ possible until they can again
be exported In normal quantity and
that when properly conditioned.
should be warshoused with responsible
concerns. that they should be protect
Cd against weather damage and prop
erly insured against loss or damage
by IRE.
-. That warehouse receipts. for
those commodities arc proper collat-
srai for loans BY banks. and should
BE- accepted With such limitations as
to margsin. inspection and valuation
~. conservative bankers may each In
th>ir discretion Zee nt to impose.
s"4. That the average market value
of middiins cotton for the past six
years he's teen In excess of IL cents
Der pound. that the committee is in
tormsd that the cost OF producing
cotton averages throughout the Unit
ID States about 1-2 cents a pound.
shAt, Il II q rule Of economy that the
production Of staple commodities
win decrease II they continue unsai-
abb at less than the cost OF produ
uon' plus q reasonable profit. That
cotton does not deteriorate when
properly warehoused. and Is as good
20 years after II Is picked as when II
n nrst gathered; that IL can there
fore be carried over until the resto-
ration OF normal business conditions
enables the worlds consumption to
absorb II. The committee is there
fore Of the opinion that every effort
should be made to assist tho produc-
ers to hold their cotton for a price
that will minimize their loss as far
~ poBible until such time as the
channels Of foreign trade shall be
rsopened. That loans upon cotton
made upon basis Of 8 cents Der
pound for middling less such margin
a. 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.
D. That I'm suggesting cents
per pound for middiing cotton as a
basis for loans. II Is not the purpose
OF the ommittee to convey the idea
that that figure represents In their
spinion the intrinsic value of cotton.
but that it is sufficient I'm their iudg-
ment to meet the requirements of the
situation. and enable the farmer to
market his cotton In an orderly and
deliberate manner.
o. That In case OF tobacco and
naval stores the CT umittec Is inform
ed that when these commodities are
properly conditioned. stored and in
sured. they practically non-perish-
able. and that the committee there
fore recommends that warehouse re-
ceipts for tobacco and naval stores bc
accepted as security for loans on a
basis that has due rcfcrcne to their
market value less such allowance as
the lenders shall consider reasonable
In view of the present suspension of
the export demand.
II. Your committee recommends