The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-09-16
LEVER ON COTTON SITUATION.
CONGRESSMAN TELLS ABOUT
SOUTIrS PROBLEM.
South Carolina Representative Calls
Attention to Need for Proper Ware
house System to Aid Farmers.

Washington, Sept. 12.-In reply to
many letters asking the status of the
cotton situation here. Congressman
Lever today wrote John J. McSwain
of Greenville as follows:
THE delay in responding to your
letter relative to the cotton situation
is due to the fact that all of my time
has been given to working out of sat-
isfactory grading and warehouse bills.
necessary in the plan of relief being
pursued by congress and the execu-
tive branches Of tho government.
Briefly summarized. we are work
as fundamental to any scheme of real
relief:
First. 1t is Of the utmost import
ance that every bale Of cotton de-
manded for export shall have facili
ties for prompt transportation. To
this end the merchant marine Of the
United States. now neglible, must by
greatly enlarged to carry cotton and
grain and other agricultural products
desired by foreign countries. Any
lack of such transportation facilities
must result in largely increasing the
surplus Of cotton in the hands of
Southern farmers and holders. When
the economic law that the surplus of
a crop is a prime factor in fixing the
price Of the crop is borne in mind. the
importance Of reducing the surplus to
tho maximum minimum is readily un-
derstood. Already congress has pass
register under the American flag, and
the morning papers announce that at
least $50 ships are expected to reg
lister under this law in few days. In
addition to this, a law has been en-
acted to provide a federal bureau of
war risk marine insurance, with a
fund of $5,O0O.OOO to be used in meet
ing possible losses to Americn ship
ping. This latter act will stimulate
greatly registry under the American
flag and greatly increase the carrying
facilities Of this country. Other meas
ures touching the problem of trans
portation are being worked out by the
committees Of the two houses and will
become laws before the adjournment
OF this session Of congress.
Second 1t Is clear that the South
will have to carry over from this crop
not less than 100000 bales of cot
ton-probably more. To do this with
the least possible sacrifice some
method must be found to finance
cheaply whatever portion Of the crop
is not demanded for the consumption
at reasonable prices. The secretary
of the treasury has made it very plain
that the financial machinery of the
government Is to be used to the very
limit, within the bounds of safety, i'm
furnishing financial support He has
positively declared his intention to
make warehouse receipts. issued by
responsible warehouse companies, for
cotton. tobacco, naval stores and other
agricultural products. properly stored
and insured. u basis for the issuance
Of additional national bank currency
under the Vreeland-Aldrich act to the
extent of $1.0OO,OOO,OOO if so much
be required to meet the situation.
There certainly will be no scarcity Of
currency and in direct response to
your suggestion that the. currency is
sued shall go to the producer and not
the spcculator. I would call your at
tention to Secretary McAdoo's state
ment to the cotton conference held
i'm Washington, as follows: 4 shall
not hesitate to refuse it if l am con-
Vinccd that it will be used merely for
speculative purposes instead Of for
the operation Of harvesting and car
rying the crop until Il reasonable mar
ket can be found and for the needs OF
legitimate business
In addition to tho large amount of
currency available under this act.
your attention is called to that pro-
vision Of the federal reserve act. soon
TO be in operation. which enables the
rcdiscount Of notes secured by agri-
cultural products and indorscd by To-
cal bankers. Under the federal rcse rye
act the farmer will execute his note
FOR a given sum, attach to it his ware
mouse receipt for a given number of
pales or cotton, present these to the
pank. which in turn indorse it and
gives IL negotiability all up the line