The herald and news. [volume] (Newberry S.C.) 1903-1937, 1914-10-20
SAYS BOND ISSUE
SERIOUS QUESTION
MR.. KOHN THINKS A PRACTICAL
BILL MIGHT GET THROUGH
Suggestion State Buy Cotton Outright
With Notes Redeemable in
Bonds.

Columbia, Oct. 17.-Folks are asking
whether the proposed bond issue is
to be seriously taken. Yes, it is to be
Very. seriously taken. The difficulty is
t1at the people of the State are in
panicky state of mind, and that this
panic is intensified by the appeals
to the members Of the general assem-
bly, by their desire to do something
effective and by their recognition OF
their inability to fully meet the situa-
ton. The result o. this panic is like
" to be that someone will be hurt
ana that the legislators, if they make
a mistake, have the defence t2at "the
people dc it" Of course it is to BE
recognized that nc BINDS or notes can
be l,olGalgated / unless a9thol;zed y
two-thirds votes of tie State. The bond
issue is tee most serious proposition
that the general assembly has before
i. :: practical bill IS presented and
there is time in which to get it through
tie chances are TWO to one that It viii
pass
THIS statement is warranted, first by
the appeals rom the panic-stricken
cotton farmers; second, by the !act
that the Irby bill proposing to Issue
twenty-five million dollars worth OF
bonds, with absolutely no committe
backing, witt out word of support
of any member except himself. and
with the impression that it was
dream, was l7:eated by two votes or
an aye ana nay roll csll Of the house;
and third, 5acarse tGe recognized | ad-
ers in the sena'e are talking and sap
porting the proposed bc!-d issue.
House Quiet Off Present.
The touso has alread! done about
everything that it Is going tc do for
the present At IS, IL has passe1 ~!
sent to the senate the bill requiring
planting CT two acres Of ether crops to
every acre Of cotton and restricting
cotton acreage to- not more than six
acres to the mGle This is going 20
be all that tt 1ouse will undertake
to do until the senate acts, unless 1t
lye to pass the McLaurin warehouse
bill, which. in effect, is to unda1take
the experiment of the State going into
the ware.ousing business, with the ex-
penditure of about eighteen thousand
dollars. In the warehouse system that
is proposed, and tnat has already pass
ed the senate, there is no guarantee
on the part of the State, tie State
only undertaking to handle business
through it's agents without direct ha-
bility.
Rankhead's Idea.
Tie Bankhead idea is the most pop
ular among those who advocate the
bond issue, that is that the cotton be
bought outright by the State witt,
notes that are redeemable in State
cotton bonds. The chic. objection to
this plan is that first, it undertakes
tc buy the cotton outright and receive
the farmer of further interest in the
cotton and leave him free to plant
full acreage of cotton next year. This
objection is stressed by many mem
bers and particularly so by Mr.. Wade
Staekhouse who is president of .Ie
South Carolina Cotton association N
this State. The second objection to the
Rankhead plan is that no business ma
chinery is provided for the purchase
of the cotton with the State notes that
w:1l ultimately be an obligation on the
State.
In this connection Mr.. Stackhouse in
an authorized statement said: "a big
bond issue to be invested in cotton
to help finance the surplus will be
dangerous venture for South Carolina
unless the 1915 crop is radically cut
down Or entirely eliminated. am not
quite sure Utat I endorse any bond
issue scheme yet proposed, unless we
get total elimination; and in any event
I believe the money should be ad-
vanced to the farmers as a loan and
they should get the benefit of an in
creased price when the cotton is sold.
I do not favor bond issue that will
not enable any man in the State, how
ever poor, to secure loan and to be
assured that he will not be called on