The Union times. [volume] (Union, S.C.) 1894-1918, 1914-11-13
WILL HELP FARMERS
TO PROCURE LOANS
McLaurin Says He Will Seek Markets
For State Warehouse Ger
tificateS.

Tillman and himself, in which the
general type of neghborhood ware
house acceptable to the commissioner
for leasing in the name of the State is
described.
Mr.. McLaurin says that although
the legislature struck from the ware
house bill the provision making it the
duty of the commissioner to negotiate
loans or sell cotton for those who
might have it on storage, he intends
as an individual to aid the holders
of State warehouse receipts either in
the borrowing of money against their
cotton or the selling of the staple. He
suggests basis on which in his opin-
ion these receipts may be used with
the federal reserve bank. He asks the
cooperation Of Senator Tilman in en-
listing the good offices of Secretary
McAdoo.
''ln addition to this" says the COM
missioner, cas- soon as | can get the
machinery here in running order, |
expect to visit some of the money CEN
ters and see what can be done in the
way of straight loans on the receipts" ;"
Reply to Senator Tillman.
Dear Senator: In reply to your
favor of 7th inst. beg to say that !
agree with you and intend to do all in
my power to encourage farmers to
erect warehouses in each community
for storing their own cotton. This can
be done more chcaply than in a cen
tral warehouse in Columbia, though
| am endeavoring to secure the old
State dispensary warehouse for the
overflow cotton. Later the concentra-
tlon warehouse, with congresses, can
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.
II would suggest, in reply to your
question as to type of building, insur-
ancc, etc, as follows:
Construction: Sides and roof Of
corrugated iron, on skeleton wood
frame; earth or other noncombustible
floor. Building to contain not over
$4,000 cubic feet
dimensions: Ninety by 100 feet, or
If preferred so as to get a 19-foot
rafter, 30 by $50, about eight feet in
height. In other words, suit yourself
as to shape, so that the cubic feet OF
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 that
the boards can be ripped off in case
OF fire. The rate Of insurance runs
on this type from $l.90 per 500 per
year to $2.25, dependent on other con
dltions surrounding building, but. in
no case on this type more than ST.
per 500. This makes from 90 cent
to about 81 per year insurance for
bale of cotton, estimated at about s
cents per pound A Columbia con
tractor estimates the cost of this
building at 5000. l am satisfied that
l could put up one on my plantation,
where have access to the woods, for
around $400. d.
81 am empowered by the State TO
settle the terms upon which such a
warehouse can be taken over, the only
restriction being that l am not to in
cur loss to the State from the oper-
alton of the warehouse. The State is
to give receipt carrying absolute
title to the bales enumerated in same,
and guaranteeing:
81. Weight and grade
80. The delivery of the identical
bale named in the receipt
when this receipt IS understood in
the commercial world it will have a
value not enjoyed by any other ware
house receipt, because it prevents sub
Stltution, guarantees weight and
grade, and removes the cloud resting
upon the title to every bale of cotton
produced under the crop mortgage
ard lien system.
Il am devising contract which
will enable me to lease such a build
ing as ! have described. and at an
added cost of three cents per bale for
each month to those storing cotton, to
give them the benefit of these ware
house receipts. | will have to take
q bond from the manager and grader
to protect the State in weight, grade
and delivery of cotton.
Will Aid Farmer.
AS to how the receipts may be
used to secure money, | will say that
in my original bill it was made the
duty of the commissioner to negotiate
loans or sell cotton for those who
had it on storage. This was stricken
out and Is not a part of my official
duties under the present law. But
there is no reason why | cannot as an
individual aid the holders of those re-
ceipts either in the negotiation of
loans Of making sale of cotton, and it
is my purpose to do this to the extent
of my ability.
"What we need in South Carolina
now is to unlock credit. There is as
much money as there ever was in he
country, but credits are tied up as
result Of this holding movement.
Many think the farmers should sell
and pay their debts, but this can not
be done for the reason that if there
was general selling movement the
price of cotton, under present coudi-
tions, would 90 so low that we would
lose the cotton and still owe the debts.
Nothing will put the price of cotton
up except to hold it off the market
and it looks to me like. if we do that