The Anderson daily intelligencer. [volume] (Anderson, S.C.) 1914-1915, 1914-12-11

This new currency law, properly
understood and wisely administered
is the greatest boon in finance ever
conferred upon man. In time II will
solve the problem OF the "predatory
rich,' underpaid labor and depressed
agricultural products, all involved in
the subtle process Of making, issuing
and control OF money. 1t Is the first
effort to impart elasticity to our cur
reDcy system and is q distinct rec
ognitfon OF the face that credit. not
gold, 10 the real money that Is carry
Ing on the commerce and maintaining
the civilization OF the world.
| The farmer, with his cotton trans
formed into a liquid asset, has only
one barrier. the local banks, between
him and his GOVERNMENT
What to De.
| / think every bank should join the
reserve system. see that It Is to he
definitely decided soon upon what
terms State banks may enter. There
should be intelligent cooperation be-
tween the farmer. lien merchant and
banker. The bankers association
| should agree at once to take notes
with warehouse receipts as collateral,
| all agreeing on the basis upon which
| discount and loans should be asked
for. II the. time is to be for more
than the discount period. then the
| note should be negotiated through
the Wade loan fund; IL for short time,
through Richmond.
Let us remember this--that we can
| not establish an arbitrary price, but
mast devote our energies to establish
ing free and natural ma 'ket for
cotton, merely holding until this can
be done. Cotton is selling under dis
tress now. There is no established
price. It runs from tn TIA cents,
| depending on whose cotton 1t is. Il
must rise because:
| 1. II is about 4 cents under the
cost Of production and cents under
It's average annual value for five years
past.
| 2. European reserves are exhaust
ed. and 1t would bring 20 cents per
pound in Germany today. The mills
are still at work even in Belgium. /
met Belgian in New York who, 1t is
said, is buying cotton for two years
ahead. also learned that the gov
| ernments OF Austria and Germany
were buying distant futures in New
York to protect their manufacturers
against the advance certain to come
with cessation of hostilities.
| 3. The distress cotton is passing
into strong hands able TO hold 1t
| 4. Acreage reduction of so per cent.
by law In Indian and Egypt. 1t will
come either by law. or, necessity in
| every Southern State.
| do not look for q rise in price un-
til after planting time, when acreage
reduction ia an accomplished fact,
and not then unless some effort is
made to provide ships and open for
eign markets. Mr.. Schwab has just
! from Europe for. the steel trust.
authorized by the legislature. DO the
game for South Carolina cotton in
England and On the continent. Act
ling for sovereign State in an official
4 capacity would be p great advantage
in theso war times. We can not eat
cotton aud mug. find market at .the
earliest possible date. The only thing
to give It q price Is demand from
Europe.
To the Farmers.
To tpe farmerg: Do not sell your
cotton to pay debts; put 1t into a
State warehouse, get your receipts
land offer your note with the receipts
to your bank, fertilizer company or
merchant. If you faiis 60 do this then
the enormous advance to come later
viii 60 TO those whose labor did not
produce the cotton.
\ There is ample opportunity given
under the Wade plan and the federal
reserve act for the banks to provide
funds to tide us over This Is a large
lcrop--pi obably 16,500,0 900 bales
Twelve and a half million bales have
been ginned. Out of this, American
spinners have taken 1,750,000 bales
and about 100000 bales have been
exported, SO that somewhere In the
South there are around 100000
bales, which financial pressure eau
force on the market. Investors are
I gree6ily watching, and some definite
assurance Is needed to- convince them
that this flood OF cotton viii not be
turned Inosa. No one can give thif
lexcept the Southern banks. ~ & ~
The federal reserve board has hxed
by regulation the operation OF sectiSH
l13, which quoted above, 20 as tt
show thet no, wild imitation Is to bs
|pertnitted. but evidently intend TO ex-
tend relief so far as the banks are
willing to go. They lsays 1t Bauareiy
lup to the Southern hanks. 1t Is VI
10 the farmer not to lose his nerve
but to stand pat.
j Facilities Adequate.
4 Regulation No. 5 says chat until
Il f"fnrther notice" the aggregate sniouni
of the discounts of the six montfA az.
ricnltusal Haper shall not exceed 81 q
Il ---T - -------5 : = 80 y