The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1914-01-28

The State is not to loan mon
ey, it is not to buy cotton, it
does not guarantee any debt, 1t
merely provides a Warehouse,
grades the cotton, weighs it and
says, Il will deliver that cotton
to whomsoever presents the re-
ceipts, and I will deliver the
identical bales numbered on the
receipts"
I have never discussed the
business system to which the
Warehouse bill will be an ad-
junct. Some people seem to
suppose that it is intended to
put cotton buyers out of busl-
ness and by some miraculous
dispensatlon obtain more than
cotton is worth by over-turning
the laws of supply and demand.
This is not true. 1t is only in
tended to insure the producer at
all times getting the full value
of his cotton. 1t will put gam
blers out of business because it
will give cotton a staple price,
but it will enable the legitimate
cotton buyer: to do a safer busi'
ness than under the present sys'
TEN, dominated by a little COT
erie IN New York who run the
market up and down by manipu-
Ilating a small stockof 'dog tail''
cotton.
I said last winter that we could
always borrow 30 per cent of the
market value of the cotton on
our Warehouse receipts. l am
prepared to go further than that
since the passage of the curren-
Icy bill. If Congress goes on now
and passes an anti-option bill
forcing the future delivery ot
|cotton contracted for in the State
of its production. Here is how l
figure it out that the cotton busl-
mess will be conducted.
| There will undoubtedly be
larger cotton firms organized in
this State than we have ever
seen before. It is impossible to
handle the cotton crop without
some place where 'hedge" sales
lean be made. The legitimate
"hedging" demand, that IS the
actual demand for the future de.
Livery OF cotton, a most import
ant factor. can, if properly
handled or ''syndicated" be
made the basis for the creation
of domestic and foreign bills o1
Exchange which any reserve
bank will discount or buy at par,
THAT is actual invoice value, pro
lvided that the originators of the
paper are responsible parties:
and that the collateral (cotton) is
|of a guaranteed commercial
|standard, and surely deliverable
on the contract.
| The floating demand is esti.
mated at an average OF about
1.-TWO million bales; when it runs
lin excess of this cotton will seek
1.-The Warehouse, and maintain the
i price when it falls under il
(cotton)will come out of the
| Warehouse on account of a rise
lin price. At present a great
cotton authority says this float
ing supply is 'polarized" in the
market. This is an explanation
of these "long time" contracts
reaching into the crop of 1917.
| If cotton is handled all over
the South as I have suggested:
lit will not take so much Ware
house room, for it is Il patent
fact, that productions not keep
ping pace with consumption,
and the demand except for a few
months in the fall is sufficient to
absorb at all times the average
amount of visible supply.
The new Reserve Banking
lsystem will furnish the money
for this business, but it cannot
do so indlscriminately, it mus
Exercise all the care and scruti
my demanded by the prudent
land conservative conduct Of the
banking business. The basis fol
these transactions must be 40
solutely sound and without the
lleast cause for objections.
| I. The title to the cotton must
|be beyond question.
| II. The basis of the collatera.
| (cotton) must be graded, prop
erly Warehoused and insured.