The Anderson daily intelligencer. [volume] (Anderson, S.C.) 1914-1915, 1914-12-11
Facilities .No1U Ample
Fo1" Financing Cotton
New York. On the following Tues
day heard from Ear. Harding, as fol-


New York. On the following Tues
day heard from Ear. Harding, as fol-
lows:
SOnth Car0lina's LeadersFlp.
= desire to say that at this mesting
yesterday the board discussed the
cotton situation at great length. I
reported what had been done In South
Carolina and the individual members
or the board were greatly interested.
l am sure each member of the board
| is glad to- know that your State has
taken the lead in 80 progressive a
measure"
On my return to Columbia I ad-
dressed the following letter to Mr..
Harding:
Columbia, s. c.. Dec. 3, 1914.
MI. w. p. q. HarAng, Federal Re-
serve Board. Washington, d. C..
my Dear Sir: thank you for your
letter OF LIST inst, addressed 60 me.
Imperial hotel, New York city.
i ind many inquiries awaiting my
return and would like to get the
following information:
II note, with State warehouse
receipts as collateral, Is given by a
farmer to . merchant for advances.
| and the note is indorsed by the mer-
| chant and accepted by q member
bank, is such paper eligible for dis
count under section 13 OF the federal
reserve act? H.
Il would greatly appreciate also
any information that you can give ME
as to the loans contemplated by the
Wado plan. 1t seems to be UNDER
stood as little by our bankers as nv
farmers.
"Yours truly,
+ "JNO. l.. McLAURIN,
State Warehouse Commissioned"
Farmers Note Eligible.
Inc following is his reply:
washington, December 4, 1914.
MY Dear Sir: Replying to your
letter OF the 3rd inst. would say that
1t Is the policy of this board to refrain
as fer as possible from reply to In
qufries as to what constitutes paper
eligible for discount under section 13i
OF the federal reserve act. The board
has issued circular ON the subject
which has been published and which
Is In the hands OF all OF the federal
reserve banks and the board greatly
prefers that direct inquiries should be
made TO the officers or the respective
federai reserve banks and would re.
spectfully suggest that you refer in
qufries to the federal reserve bank OF
Richmond. have, however, no OBJ
lection to stating, as q matter of per-
sonal opinion. that notes given by a
farmer to merchant for advances
| ana indorsed by che merchant and
discounted with member bank are
unquestionably. eligible for redis-
. count. uD1E ss:a :a5asssEssIis ss si;a
member bank. with q federal reserve
bank. .Fs
In regard to the cotton loan fund.
would say that cotton loan commit
tses have been appointed I'm the va
rious States and the South Carolina
committee is as follows. R G.. Rhett,
chairman, president Peoples Nation.
|al bank. Charleston; Henry Schachte,
;,:,essda =. G5T nnnia Savings bank,
Chafleston;. e. H. Pringle, Jr., vice
President Bank or Charleston, N. y,
A.; 2. w. Robertson, president Ma
tlonal Loan and! Exchange bank, Co.
iumbia; C. q. Rowland, president
Bank OF South Carolina, Sumter, and
John M. Kinari, president CONNER
|cial bank, Newberry.
IT inclose for your information an
unofficial analysis OF the plan which
has been substantially followed In the
completed draft and also q typical
bank statement showing, how .. bank,
can case itBelf by participating IN the
fund and place itself In position to-
discount more freely all classes OF
good paper that may be offered to 1t.
Very truly yours,
Il wv, 2. G. HARDING.
Member Federal Reserve Board.
Hon Jnn. Il McI1aur!s, State Ware
house Commission
Columbia, 8. c.
Two Relief Sources.
Now. this means that we have two
avenues OF RELIEF:
I. The Wade loan fund.
2. The, discount feature OF the fed
eras reserve act.
IN both cases the situation Is
squeyeiy up to t,.s banks In S5uth
Carolina. The federal government
offers the machinery; IL we SaiI ia
zelys advantage OF the opportunity we
are responsible for. the consequences.
! have been carefully over the pa
Ipers cent me by Mr.. Harding ana viii
Inndeayor to expiain them 90 che aver
age an can understand It. The
TPyIp pIuEI CQpIPmpiHtes loan for
enc year direct upoh cotton On the