The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1914-10-21
WOULD BUY MANY BALES
BOND ISSUE IS PROPOSED IN THE
STATE SENATE.
South Carolina to Issue S50, 900. 900
Short Term Bonds With Which to
BUY Farmers Cotton.

The proposal to issue bonds Will
which to buy cotton has eclipsed TO
the moment other measures advocat
ed in the State Senate for relief o
the cotton crisis. Late Tuesda.
night Senator Alan Johnstone o
Newberry interrupted a session of thu
Senate and passed a motion to 81
into executive session. At mldnigh
the open session was resumed and (
resolution was adopted appointing {
special committee Of eight to draw W
and bring in bill providing for sub
mitting to the people at the genera
election the question of issuing sew
eral million dollars in bonds to take
care of the surplus cotton. 1t is un
derstood that the bond issue will be
in excess of S25,000,000.
The following committee was ap
pointed Thursday: From tHe con'
mittee on agriculture, Alan John
stone and lawson; from the com,
mittee on finance, Banks and Stuck
ey; from the committee on banking
and insurance, McCown and Lide.
The Johnstone proposition, in gen
eral terms, is for the State to issue
S5O,OO0,0O0 in bonds for a short term
of years, say three or six, in denomi-
nations of $40 and up: The State to
buy cotton a basis of 10c a pound and
give the cotton growers in payment
these bonds. The State to warehouse
this cotton, properly insured and
with all the safeguards possible, and
to hold the cotton until the end OF
the European war and then to sell 1t,
the idea and expectation being that
by then cotton will command a big
price. With the proceeds thus OBJ
tanned the State is to call in and re-
tire the cotton bonds and the sur
plus or net proceeds can go to the
support of the public schools.
The cotton growers are to sell their
cotton outright to the State and to
take in payment these bonds, and the
idea is for the. people then to pay
their obligations with these bonds.
In other words, this would be max
ing the bonds the same as currency
and to take the place of money.
It must be made clear that the
idea is not to sell the bonds to some
northern financial interests and pay
the cotton growers in cash, but to
buy the cotton and give in payment
to the growers the State bonds. OBJ
viously the matter of selling $780,
100000 of State bonds for cash now
would be practically impossible.
Whether the bonds are to be non-in-
terest bearing bonds or say s per
cent, is a detail yet to be worked
out. The special committee will hold
conferences and work out the details
and then bring in the joint resolution
to submit the question to the people
in the coming general election. 1t
will be necessary under the constitu-
ton for the joint resolution to re-
ceive two-thirds vote OF the people to
become reflective. this being peces-
sary to increase the public debt.
It is probable that they will call
the fnanciers and other citizens Of
the State to confer with them and
get the benefit of the best experience
and advice and knowledge of every
one in framing the measure.
With $50,000,000 bonds under this
plan the State of South Carolina
could buy 100000 bales of cotton
at $50 per bale, based on ten cents
per pound. AS the crop of this State
is about 100000 bales it can be
taken care of this way.