The Anderson intelligencer. [volume] (Anderson, S.C.) 1914-1917, 1914-12-11
IRE Of value in exchanging the fruits

| A"Ao ac" CutISuCy idWs properly
understood and wisely administered,
Is the greatest boon in finance ever
conferred upon man. In time It will
solve the problem Of the predatory
rich,7 underpaid labor and depressed
agricultural products. all involved in
the subtle process Of making, Issuing
and control Of money. II is the first
effort to impart elasticity to our cur
rency system and is a distinct rec
ognition of the face that credit, not
gold, is 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 gOvnrnment. !
What to Do. ~
think every bank should Join the
reserve system. I see that 1t is to be
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 tho
note should be negotiated through
the Wade loan fund H. for short time,
through Richmond. ~
Let us remember. this that we can
not establish an arbitrary spfite, but
must devote our energies to establish
Ing a free and natural market ;iDr
cotton, merely, holding until this can
be done Cotton ia. selling under dis
tress now. Theirs, fsf nos. estk kblished
price. It runs from to,7t-4 cents,
depending on whose cotton 1t 5iH. tt
| must rise because:
ii. 1T 1s about A cents under the
cost OF production and cents under
its average annual value for Ave years
past. t rs-..
2. European reserves are exhaust
ed. and 1t world Dring 20 cents per
pound in Germany today. The mills
are still at work even In Belgium. r
met Belgian in New York who. It 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 .hbstilities.
3. The distress cotton Is passing
into strong hands abla TO hold 1t
4. Acreage reduction OF go per cent.
by law in Indian andTEgyptt,s 1t will
come either by lawyer necessity in
every Southern State. S;
do not look for a rise In nrice mn
til after planting time 2ignen acreage
reduction is an accomplished fact,
E,v xIr,e<r f-v
made toj provide shipA and open Tor.
returned with .$5qi000.000s order
There Is no reason why 1soans not, II |
authorized by the >legisiatd9e,fIio the
same for South Caf4H cotton in
England; and On the Continent. Act
ing for d sovereign State insah Official
capacity would be ayEfeat, advantage
in these war times, Wascsh not eat
cotton and must find G1hayhet at The
earliest possible date. TIE 5aIy th:a6
to give It price ts esdsniand from
4 To the farnnsrs.sAs
To the farmsra: sgo rot sell your
cotton to pay debts: yt,s Into al
State warehouse. get fyDpr Gfeceipts
and offer your note With the receipts
to your bank. fertilIaei company or
merchant. If you fail TO do this, then
ths enormous ad7an10 70 come later
will go to those whose lahor did not
produce the cotton.
There Is ample opportunity, given
under the Wade plan; aud the federal
reserve act for the banks e. provide
s:.nas te tide na over. This is q large
|crop-probahIy 16,600Q00 baieB.
Twelve and q halt miIltqn bales have
been ginned. Out ofS4tis, American
spinners have taken 1I760. 600 bales.
and about 100000 bales have been
axported 80 that sorneWhefs Gin the
South there are around a. 900. .000's
bales. which financ presaure = cans
force on the market gastprs are,l
greedily watching, and some definite;
assurance is needed tgSconyince them
that this flood OF cotton syilf mot bel
turned loose. No one3 EaM give thisss
except tAe' Southern,s6 80 4kss
The federal reserve 4 hasd has fixed
by regulation the opefa axief OF section
s18, which quoted sab6ye SO as toa
chow TINT no wild infiatt -ts to sba5
permitted. but eytdently santepd 70 ,ex1sa 4
tend relief 80 far ass the. banks are
willing to 60. They leayes ~ autare1yiI
to the farmer mot to Ei6as his nerve.
Dn' . s'iaa fseifis.ss Rss Adequate.
Regulation No, 5 ;eayp that until
farther notics' tlao SSg AgAte amount
of5the discounts 81; the zx months ag-
|riculturai paper shall siet exceed s5
HH ~ 50. ~ 8. !. .. 3.