The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1914-09-02

COMMITTEE APPROVES
THE CURRENCY PLAN

'"oi1ihSloui Aug. GS.-SeCrCtary
McAdOo's plan to accept as q basis
Tor currency notes secured by ware
house receipts for cotton tobacco and
naval stores at Is per cent of their
face value was approved tonight in a
report by the special committee ap-
pointed by the conference of represcn-
tatiye planters, bankers, mannfactur-
crs and dealers held here August
"a and 25.
The committee recommended that
every effort be made to assist pro-
ducers in holding their cotton for a
price that will minimize their losses
until the channels Of foreign trade
are reopencd. Eight cents q pound
was suggested as fair basis for loans
on cotton.
The report, which was submitted
to Secretary McAdoo, follows:
Il, That the committee entirely ap-
proves OF and congratulate you on the
announcement made by you yester-
day afternoon that notes secured by
warehouse receipts for cotton and to-
bacco and naval stores. and having not
more than four months to run will
DC accepted as a basis for the issue
OF currency TO the members of the
national currency associations at rs
per cent. Of the face value of said
notes.
Y. That it Is the sense of the com
mittee that cotton, tobacco and naval
stores should be marketed as deliber
ately as possible until they can again
be exported in normal quantity and
that when properly conditioned, should
be warehoused with responsible con-
Germs, that they should be protected
against weather damage and properly
insured against loss or damage by
fire.
-. That warehouse receipts for
those commodities are proper collat-
eral for loans by banks, and should
&c accepted with such limitations as
20 MarSin, inspection and valuation. as
thc:r discretion sec fit to impose.
i. That the average market value
OF middiing cotton for the past six
years has been in excess of y cents
per pound that the committee is in
formed that the cost Of producing
Gotten aTarcgcs throughout the United
states about 8 l-2 cents a pound, that
1t is a rule OF economy that the pro
Guction OF staple commodities will be-
crease il they continue unstable at
less than the cost Of production plus
Il reasonable profit. That cotton docs
not dcterioratc when properly ware
housed, and is as good 20 years after
it Is picked as when it is first gath
cred; that it can therefore be carried
over until the restoration OF normal
business conditions enables the
worlds consumption to absorb II. The
committee is therefore Of the opinion
that every effort should be made to as
slSt the producers to hold their cotton
for Il price that will minimize their
loss as far as possible until such time
as the channels OF foreign trade shall
be reopcncd. That loans upon cotton
made upon a basis of cents per
pound for middling less such margin
as the lender shall consider necessary
will afford reasonable protection to
bankers and will greatly facilitate the
financing Of our most important OK
port crop in the present emergency.
"5. That in suggesting cents
per pound for middling cotton as
basis for loans, 1t Is not the purpose
of the committee to convey the idea
opinion the intrinsic value of cotton,
that that figure represents in their
ment to meet the requirements of the
and enable the farmer to
his cotton in an orderly and
deliberate manner.