The Anderson daily intelligencer. [volume] (Anderson, S.C.) 1914-1915, 1914-11-14
N'LAUREN OUTLINES
WAREHOUSING 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 ! hope TO see concentration
warehouses in Charleston and Colum-
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 be held In
tho South and distributed from there
to the world"
II intend to see that the law Is COM
piled with. especially as to grades
because | realize that, when character
is established. cotton can be bought
and sold by the receipt, thus saving
great expense to producer and con-
sumner by eliminating middlemen who
now thrive at the expense of both"
Foregoing are sentences from a
letter which the State warehouse
commissioner. Jno. L. McLaurin, ad-
dressed yesterday to Theodore Fl.
Price. editor Of Commerce and FL
nance (weekly) CT New York. The
letter follows
Il am enclosing you n copy of the
warehouse act passed at the extra
session of the South Carolina legis-
lature.
"The receipt given by the State car
ries:
81. Absolute title to the bale or
bales OF cotton enumerated therein.
removing the cloud resting upon tho
title to every bale of cotton produced
under the crop mortgage system.
"2. 1t guarantees weights and
grades, also condition of cotton.
r. ~ -
the identical bales named in the re-.
ceipt, thus preventing substitution.
This should make n coed collet-
eral to a farmers note to be used for
discount under section 13 of the new
currency law.
THE act passed is not my original
conception OF q 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 the
foreign spinner and the producer into
closer touch. Ii 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
q small beginning on n very large
proposition. but it Is a beginning.
'The farmers are holding their cot
ton in the firm determination not to
accept less than the cost OF produc-
tion, which Is about 10 cents per
pound The price Is advancing as O
result of this agitation and paradoxi-
cal as 1t may seem, 1t Is going to be
easier to borrow money on cotton
than to sell It In large volume, be-
cause as it is held the price OF that
entering into consumption makes
higher the borrowing basis. whereas
IL all cotton In the farmers hands is
forced anon the market, it would al
most destroy its value and leave no
borrowing basis. It Is the lien mer-
chant who. is lef. with the bag TO
hold IL he can discount his note. Sc
cured by wa tehouse receipts. through
the reserve system. credits will be un-i
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 mny properly appre-
'ciate q State warehouse receipt, issued
as security for loans. 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. becauss
i realize that when character Is estab-
lished. cotton can be bought and sold
by the receipt, thus Raying great ex-
,pense to producer and consumer, by
climb natfns niiddlemen. 1, who now
thriv, at the expense OF both"