Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1914-12-11

| tween the farmer, lien merchant ana
banker. The Bankers association
should agree at once to take notes with
warehouse receipts as collateral, all
count and loans should be asked for.
II the plan is to be for more than the
discount period, then the note should
be negotiated through the Wade loan
fund; II for short time, through Rich
mond.
Let us remember this; that we can
not establish an arbitrary price. but
must devote our energies to establish
ing free and natural market for cot
ton, merely holding until this can be
done. Cotton Is selling under distress
now. There is no established price. 1t
runs from five to seven and q quarter
cents, depending on whose cotton II Is.
It must rise, because:
1st. It Is about four cents under the
cost Of production, and six cents un-
der its average annual value for FIVE
years past.
End European reserves are exhaust
ed, and 1t would bring twenty cents
per pound in Germany today. The
mills are still at work even in Belgium.
met q Belgian in New York who, 1t Is
said, Is buying cotton for two years
ahead. / also learned that the govern
ments Of Austria and Germany were
buying distant futures in New York to
protect their manufacturers against
the advance certain to come with a
cessation Of hostilities.
3rd. The distress cotton Is passing
into strong hands able to hold It.
4th. Acreage reduction Of sixty per
cent by law in India and Egypt. It
will come either by law or necessity In
every southern state.
do not look for rise in price until
after planting time, when acreage re-
duction Is an accomplished fact, and
not then unless some effort Is made to
provide ships and open foreign mar
kets. Mr.. Schwab has just returned
with q S50,000.000 order from Europe
for the steel trust. There Is no reason
why I cannot, II authorized by the leg
islature, do the same for South Caro-
lima cotton in England and on the con-
tinent. Acting for q sovereign state in
an official capacity would be great ad-
vatage In these war times. We cannot
eat cotton, and must find q market at
the earliest possible date. TIE only
thing to give 1t price Is a demand
from Europe.
To the Farmers.
Do not sell your cotton to pay debts:
put II into state warehouse, get your
receipts and offer your note with the
kSSSApSo W yook poA4n7 Adv SilLCA SoAi-
pany or merchant. II you fail to do
this, then the enormous advance to
come later will 90 to those whose la
Dor 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 q large
crop-probably sixteen and half mil
lion bales. Twelve and half million
bales have been ginned. Out Of this,
American spinners have taken one and
three-quarters million bales, and about
one and one-half million bales have
been exported, SO that somewhere in
the south there are around nine million
bales, which financial pressure can
force on the market. Investors are
greedily watching, and some definite
assurance is needed to convince them
that this flood Of cotton will not be
turned loose. No one can give this ex-
cept the southern banks.
The Federal Reserve Board has fixed
by regulation the operation Of Section
13, which quoted above, so as to show
that no wild imitation Is to be permit
ted, but evidently intend to extend re-
lief so far as the banks are willing to
go. They leave 1t sQuarely up to the
southern banks. It II up to the farmer
not to lose his nerve but to stand pat.
Regulation No. 8 says that until.
further notice" the aggregate amount
Of the discounts Of the six-month ag-
ricultural paper, shall not exceed
stock Of the Federal Reserve bank ac-
cepting the same. In Circular No. 13,
the Federal Reserve Board shows that,
while 1t is determined to proceed eau
tiously, 1t Is prepared to meet all rea-
sonable demands from the banks, say
ing "the limit will be increased from
time to time upon requests by Federal
Reserve Banks to the Federal Reserve
Board"
/ believe that this Democratic ad-
ministration will do as much for south
ern farmers as II did for bond and
stock holders in New York.
The immediate effect Of the war was
a rush to sell foreign-held American
securities. The stock exchange was
closed to prevent this slump In prices.
Mr.. McAdoo organized q gold pool
among the banks, and one hundred
million dollars in gold was shipped to
the Bank Of England to protect New
York securities. Under our twenty-five
per cent gold reserve plan. one dollar
in gold equals four dollars In paper cur
rency. Thus four hundred million dol
lars Of money was taken away, which.
had 1t been used for the purchase OF
cotton, would have provided for one
half Of the crop. Southern banks con-
tributed twelve million dollars Of the
amount High priced cotton will pro-
tect New York securities; 1t is what
gave them their value, and 1t Is the
only thing that can maintain them. The
entire United States Is interested In
maintaining the price Of the one crop
which turns the balance OF trade In
our favor.
What cotton needs Is friends here at
home.
What will the southern banks do?
Respectfully.
Jno. L. McLaurin,
ckoto uyo rahonoa Hnynpniaaf0nar