Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1914-11-10
WAREHOUSE INFORMATION
Commissioner McLaurin Gives Out a
Letter that Answers Questions.

WAREHOUSE INFORMATION
Commissioner McLaurin Gives Out l.;
Letter that Answers Questions.
Warehouse Commissioner McLaurir
has secured the old dispensary build
ing tor an office, and has moved into
II.
On yesterday, he gave out a letter
that he had just written to Senator
Tillman, covering several importan
points on which the people of the
state want information. The letter Il
as follows:
Dear Senator: In reply to your
favor of the 7th inst, beg TO say thal
l agree with you and intend to do al
in my power to encourage farmers t
erect warehouses in each community
for storing their own cotton. This car
be done more cheaply than in cen.
trail warehouse in Columbia, though
am endeavoring to secure the ole
state dispensary warehouse for thu
overflow cotton. Later the concentra
ton warehouse, with congresses, cal
be developed so that cotton from the
local warehouse can be shipped under
milling rates and compressed en- route
to the port. At present, however,
am merely trying to meet an emer
gency
Il would suggest, in reply to youl
question as to type of building, insur'
ance, etc., as follows:
Construction: Sides and roof o.
corrugated iron, on skeleton woot
frame; earth or other noncombustibl'
floor. Building to contain not ovel
10000 cubic feet.
Dimensions: Ninety by 100 feet or
if preferred, so as to get a 19foo
rafter, so by $50, about eight feet IL
height. In other words, suit yourself
as to shape, so that the cubic feet o.
space does not exceed 10000. Doors
not less than two in ends and sides
which must open outward. The ends
however, can be planked up, so tina
the boards can be ripped off in case
of fire. The rate Of insurance run!
on this type from $1.90 per 500 pei
conditions surrounding building, bu
in no case on this type more thar
1925 per 500. This makes from 81
cents to about 81 per year Insurance.
for a bale Of cotton, estimated a.
about cents per pound. A Columbia
contractor estimates the cost Of thi!
building at $500. l am satisfied tha
l could put up one on my plantation
where / have access to the woods, fol
around $400.
Il am empowered by the state t
settle the terms upon which such
warehouse can be taken over the only
restriction being that / am not to in
cur a loss to the state from the oper.
alton Of the warehouse. The state i:
to give a receipt carrying absolute
title to the bales enumerated in same
and guaranteeing:
Il. Weight and grade.
"2. The delivery Of the identica
bale named in the receipt.
When this receipt is understood II
the commercial world, it will have
value not enjoyed by any other ware
house receipt, because 1t prevent!
substitution, guarantees weight anC
grade, and removes the cloud resting
upon the title to every bale Of cottor
produced under the crop mortgage anC
lien system.
Il am devising a contract which
will enable me to lease such build
ing as l have described, and at al
added cost Of three cents per bale fol
each month to those storing cotton, t
give them the benefit Of these ware
house receipts. l will have to take {
bond from the manager and garder t.
protect the state in weight grade ant
delivery Of cotton.
"As to how the receipts may be uset
to secure money, / will say that in m!
original bill it was made the duty o.
the commissioner to negotiate loan!
or sell cotton for those who had 1t OF
storage. This was stricken out ant
is not a part of my official duties un
der the present law. But there is NJ
reason why l cannot as an individual
aid the holders Of those receipt:
either in the negotiation Of loans ol
making sale Of cotton, and it is m!
purpose to do this to the extent Of m!
ability.
What we need in South Caroline
now is to unlock credit. There is a!
much money as there ever was in thu
country, but credits are tied up as {
result of this holding movement. Man!
think the farmers should sell and pay
their debts, but this cannot be done fol
the reason that if there was genera
selling movement, the price OF cotton
under present conditions, would go II
low that we would lose the cotton ant
still owe the debts. Nothing will pu
the price of cotton up except to holc
it off the market, and it looks to mt
more money on cotton than 1t woult
sell for in the open market. If th'
farmer holds his cotton and does no
borrow money, the lien merchant will
be wiped out and with him will go tht
country bank.
Now, under section 13 and section
IA of the Federal reserve act, there /!
no reason why the lien merchant ant
banker cannot agree upon price fol
cotton stored In state warehouses
Suppose they agree upon cents; th'
farmer gives the lien merchant hi!
note for $1,000 with state warehouse
receipts for 25 bales of middling cot
ton; the merchant takes the note ant
receipts to the bank with his indorse'
ment; the bank accepts this paper
and presents it for discount to tht
Federal reserve bank at Richmond
This is a two-name paper, and il
addition is for agricultural supple:
based upon existing values as pro
vided in these sections.
The law says that bills Of eX'
change of this nature shall be dis
counted for six months. Furthermore
there is absolutely no limit to tht
amount Of such paper which any ont
bank, a member of the currency asso'
citation. can discount.
The title of the cotton remains II
the farmer, and he gets the beneht ol
an advance in price and is enabled tt
force an advance without destroying
his credit. The bank has recourse or
both the lien merchant and the farmer
and in case. of a decline in the price OF
cotton could take means to protect it
self by demanding other security. Il
cotton sells above eight cents withir
the next year it would go to the farm.
er.
Mr.. Hamlin, president of the Re-
serve board, and Mr.. Harding told the
legislative committee that they would
accept for discount farmers notes in
dorsed in this way and south Caro-.
lima state bond with cotton valued a
10 cents pound. AS soon as possible
| desire to have an interview with Mr.
McAdOo and others, to consider this
proposition. l think 1t would be Of
great value to have your assistance II
this negotiation, and If you are goint
to Washington in the near future
would like to meet you there. If not
please write to the secretary of the
treasury on the subject.
In addition to this, as soon as | car
get the machinery here in running or
der. | expect to visit some of the
money centres and see what can be
done in the way Of straight loans or
the receipts. My blanks are In the
hands of the printers. and as soon as
can get them will mail you copies OF
same. which will give you better idea
Of my plans than anything l can write