The herald and news. [volume] (Newberry S.C.) 1903-1937, 1915-04-02
MONEY ON COTTON
AT 5 and 6 PER CENT
84.<GEMENTS TO FINANCE STA
PIE THROUGH STATE SYSTEM
missioner MeLaurin Says Most
PRACTICAL Way is to Handle Mat
4 ter Through Local Banks.
TO The Herald and News.

al to The Herald and News.
mbia, March 30-A statement
with the arrangements for
g cotton through the State
se system was given out here
former Senator John L. Nc
tate warehouse commissioner,
s R1rin returned from the North
week and made the announcement
to the public that te had succeeded
in perfecting arrangements to finance
cotton stored in the State warehouse
at low rate of interest. His state
nent today explains the matter in
hetail.
The following is statement Of
the warehouse commissioner:
81 desire to make public announce
ment, that on a recent visit to the city
of New York, in company with Sena-
tor J. A. Banks, We made arrange
ments so that cotton in State ware
houses can be financed at a rate OF
interest on straight loans not exceed
ing per cent, and on bank accept
ances, at the present money rate, in
cluding brokers' commission, not over
4 per cent. The only difficulty is on
this eng Iof tie line, in providing the
necessary machinery. Tine most prac-
tical way is to handle the matter
throu1@ the local banks, for the reason
that ke large institutions in New York
can aot well deal with individual bor-
cEers desiring small amounts Of
Jney.
TIE New Currency Law.
''In an article published in the Co
Ambia State of December 9, and copied
10 most of the county papers, said
the new currency law, properly
wisely administered, is the great
boon in finance ever conferred upon
man. 1t is the first effort to impart
elasticity to our currency system, and
as a distinct recognition of the fact
that credit, not gold, is the real money
.daW is carrying on the commerce aud
maIa aiming tie civilization of the
world
"In an address made by Mr Herbert
R. Eldridge, of the National City bank
to the New York Credit Mems associa-
eion,on JANUARY 21st, he said: Credit
khe backboTl be of trade, is built upon
he solid foundation of character and
bility. Without such component parts
e structure is insecure and lacks
ermanency. No matter what amount
capital one may nave employed i'll
d business, credit remains his most
able asset.
For many years our cotton planters
created vast national credits
eshers have used to their bene-
faking Us pay heavy Interest
The use of our own credit.
Through Local Banks.
In speaking of the re-discounts un-
the new currency law, and, more
ecentEy, acceptances under tie New
York State bank law, Mr. Bldridge
in the same address: Taking the
Duth as an example and recalling tho
evident desire of congress and the
country at large to assist in its prob
lem of caring for the large cotton crop
of this season, and the slow movement
consequent to the lessened demand oc-
casioned by the war, it can be seen
what degree of usefulness the ac-
ceptance privilege would Idave per-
mitted. 1t cannot be expected that R
Northern investing bank should be
familiar with the quality and integrity
OF the usual warehouse receipt issued
in the various centers Of the South.
But if such advances could be made
against bills drawn by the owner OF
tie cotton on bank of high standing,
the situation would assume a far Diff
ferent aspect. The accepting bank
would protect itself by the deposit
with it of familiar warehouse receipts
representing cotton in sufficient
amount to amply protect it
"The State warehouse law was de-
signed to meet just this condition OF
affairs, and now is the proper time to
establish in the money centers their
value as collateral. 1 Gave kept IN
touch with the federal reserve board,
and am greatly indebted to the kind
ness and intelligent aid rendered per-
sonaIly by Mr.. w. P. G. Harding, who
coming from the South, thoroughly un-
derstands finance as it relates to cot
fon He gave me- a personal letteC