The herald and news. [volume] (Newberry S.C.) 1903-1937, 1915-12-03

/ address to the American Bankers in
stitute, said that out of the agitation
which we had last fall "the only thing
worth while was the excellent ware
house system in this state" High en-
dorsement, surely. He then went to
New York, wnere money was secured
on the state receipt at low rate OF
interest, in the face. of condition
pre- alent in the South at that TIME
under which it was hardly possible to
! borrow money on any kind of security
at even the highest rates Of interest.
There are private and corporate
owned warehouses whose receipts
command just as low interest rates,
and are regarded with just as much
favor, where the warehouses are
known; but their receipts are depend
i ent upon local financial institutions.
They may and do circulate abroad in
; the marts of trade, but, after all, their
standing depends upon the favor with
which they are looked On by the banks
! at home who know personally the
standing and the credit of the men be-
hind them. The purpose of the state
receipt, which nas been accomplished.
is to give the owner Of bale of cot
ton, no matter how poor that owner
may be, just as much credit on that
bale as>could be obtained by the most
influential man in his community-to
make the bale of cotton, and not the
holder thereof, the basis of the credit,
and to establish that credit. as mat
ter of right, and not of favor, any
where in the business world. The
state receipt is now passing current
in all the money markets as freely as
stocks and bonds of the most widely
known big business enterprises, and it
has been the foremost factor in CIV
ing the people of South Carolina and
of the South six per cent money on
: their cotton.
The Insurance.
The state secures for its ware
houses the most advantageous insur-
ance yet obtained in the history of
the fire insurance industry. When
the state system was inaugurated,
country warehouses were paying $3.50
per year, on a short-term cancellation
basis-that is, it was necessary to take
out policies for six months or year
on the total amount Of cotton stored
to pay premium in advance at the
rate of $3.50 per hundred dollars per
year, and if the cotton was sold before
the expiration of the policies. the re-
turn premium was figured on the short
| term basis, which made it higher than
the annual $3.50 per hundred premium.
The state system Immediately began
fight for cheaper insurance, upon
more equitable basis. 1t has succeed
ed in reducing this $3.50 country rate
to $158, placing it on the same basis
as small towns where there is no wa
ter protection, and it has reduced
greatly the rate on other risks. And
/ there is no more short-term cancella-
ton. 1t is on a pro rata cancellation
basis, and the insurance on the cotton
actually on hand each day is paid for
at the market value Of the cotton that
day.
For instance. there is a state ware
house at Pomaria, in NeWberry county
! There is another at Little Mountain,
and one at Prosperity. The Prosperity
house came into the system short
time after it was, inaAgurated, before
the blanket automatic" policies were
secured. 1t secured the cheaper rate
Of insurance, but there is no use to