The herald and news. [volume] (Newberry S.C.) 1903-1937, 1914-08-28
THE WAREHOUSE PLAN
Bill Should Be PaSSed-WOuld Pro.
tect the Great Mass of Deb.
tors.

MT. EQlLOr. lnS HldSS uleeLlISo
for Thursday 27th, nave been re-
quested to exp ess themselves on the
subject of an extra session Oh the
general assembly for the purpose of
passing the warehouse bill.
I believeItha the emergency which
confronts us will require legislation
more far reaching. The warehouse
bill will be valuable in that it will
convert cotton into a negotiable secu-
rity, which can be discounted un-
der the new currency law. This
new law however, will not be in
operation for several months, leaving
the emergency currency act Of 1908
as our only dependence.
This is a question of international
finance and world politics. We can
not approach it and be intellectually
true ne. ely from the sectional stand
point of cotton. 1t must be consid-
cred in it's broader aspect to arrive
at correct results. The Georgia legis-
lature is in session and the Texas
legislature meets today in extra ses-
sion for the special purpose of pass
ing a State warehouse bill which is
an almost by Mr.. Mcqueen and my
self last winter.
| believe that this abnormal sit
uation demands legislation of more
radical nature, and will give my
views in advance of these mass meet
ings for what they are worth. Any
stay law which has reference only
to a particular form Of security or
class of credit would not only de-
stroy public and private credit, but
bankrupt every financial institution
in the State.
The warehouse bill should be
passed, and in addition, every legis-
lature in the South enact general
morotarium, which will protect the
great mass of the debtors as oppos-
el to the class of credits VINO, with
the legal power to enforce the col
lection of debts can if permitted in
tits crisis to exercise it, acquire most
of the property at very deprecated
prices.
am aware that the de-
cision in the State VS. CareW
reviewed and confirmed later in 14th
S. c., held the stay law act of 1851,
repugnant to the federal constitution
because of impairing the obligation
of the contract, but this was soon
after the war and is clearly wrong.
1t does not impair the obligation OF
the contract but merely postpones
the enforcement of the remedy. |
Drerer to stand on the reasoning in
the Barry case of the elder Judge
Aldricl, who was dragged from the
bench by Canby's soldiers. Since
the decision of the supreme court
in the warehouse case OF 1872, so
far as cotton is concerned, it is en-
tireIy within the police powers o.
the State and the legislature can
do whatever it sees fit in reference to
that particular commodity. That de-
cision may become very important
within the next few months. Thanks
to tie breadth of view, force and
power with which our court express
ed itself on this all important ques-
ton.
Congress cannot pass stay law.
1t can only suspend specie payments
and the distinction is OF vital impor-
tance in this crisis. War times al
ways coin new words. ''Skeedaddle"
was the product of 1861 to 1865.
Morotarium in on every lip. I sup
pose it is derived from toratio, 20
suspend or delay.
The stock and cotton exchanges de-
clared a morotarium when they closed
their doors and left every contract
suspended.
In the panic of 1907, the banks de-
clareG moratorium, when Oaey refus-
ed to give depositcrs money on check.
To say that there can be morotaTium
Cor these institutions and none for
other classes is on its face absurd. A
morotarium (the modern stay law is
in force today of certain cases in the
United States. 1t is general through
a do