The Anderson intelligencer. [volume] (Anderson, S.C.) 1914-1917, 1914-11-17
LAUREN OUTLINES
WAREHOUS|NG PLANS
TELLS WHAT HE HOPES TO
ACCOMPLISH
COMPLY WITH LAW
Says That Cotton Will Have to Be
Distributed From Warehouses
in the Southern States.

Later I hope to see concentration
warehouses In Charleston and Column
bia TO handle export cotton, bringing
the foreign spinner and the producer
into closer touch"
1T must be apparent that In the
future reserve cotton must he held In
the South and distributed from there
to the world"
II intend to sec that the law IS com
piled with. especially as to grades.
because ! realize that, when cliarac:er
is established. cotton can be hought
and sold by tho receipt, thus saving
great expense to producer and con-
sumer by eliminating middlemen who
now thrive at tho expense of both"
Foregoing are sentences from n
letter which the State warehouse
commissioner. Jno. l.. McLaurin, adj
dressed yesterday to Theodore H..
Price. editor of Commerce and FL
nance (weeklyl OF New York. The
letter follows:
Il am enclosing you copy of the
warehouse act passed at the extra
session OF the South Carolina legis-
lnture.
THE receipt given by the State car
ries:
a.. Absolute title to the bale or
bales OF cotton enumerated therein.
removing the cloud resting upon the
title to every bale Of cotton produced
under the crop mortgage system.
"2. 1t guarantees weights and
grades. also condition of cotton.
"3. It guarantees the delivery Of
the identical bales named In the re-
ceipt. thus preventing substitution.
This should make q good collet-
eral to a farmers note to be used Tor
discount under section 13 Of the new
currency law.
1.-THE act passed is not my original
conception of State warehouse law,
but 1t is designed to meet the emer-
gency thrust upon us by war. Later
hope to see concentration ware
houses in Charleston and Columbia
to handle export cotton, bringing tho
foreign spinner and the producer into
closer touch It must be apparent
that in the future reserve cotton must
be held In the South and distributed
from there to the world. This is but
a small beginning on a very large
proposition, but It Is a beginning.
"The. farmers are holding their cct-
ton In the firm determination not to
accept less than the cor. of produc-
tion, which Is about IL cents per
pound. The price is advancing as a
result O: this agitation anu pnradoxi-
cal as it may seem, It is going to be
easier to borrow money on cotton
than to sell 1t in large volume. be-
cause as It is held the price OF that
entering into consumption makes
higher the borrowing basis. whereas
II all cotton In the farmers hands Is
forced upon the market, It would al
most destroy It's value and leave no
borrowing basis. It Is the lien mer-
chant who is left with the bag TO
hold If he can discount his note. Sc
cured by warehouse receipts, through
the reserve system, credits will be un-
locked and the farmer hold his cotton
and maintain prices.
"Your admirable articles In Com
merce and Finance are being widely
read and am bringing this matter to
your attention SO that those with
money to lend may properly appre-
ciate State warehouse receipt, issued
as security for loans. I call particu-
lar attention to the heavy criminal
penalties for violation of the act and
intend to see that the law is complied
with. especially as to grades. because
I realize that when character Is estab-
lished. cotton can be bought and sold
by the receipt, thus saving great ex-
pense to producer and consumer, by
eliminating middlemen. who now
thrive at the expense of BOTH"