The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1915-08-28

ern warehouses for not less than. l2.-
100000 bales of Hat cotton, while the
cotton mill warehouses will be able
to take care OF 1.3O0,O bales. ton-
sensus OF opinion of representative Ses
of the Federal reserve banks ffkSt.
Louis. Richmond. Dallas, Atlant Ind
Kansas City. consulted by counJ Tor
the Federal reserve board. see TO
be that the holder OF negotia BILE re-
house receipts is protected froH all
claims of subsequent lien holders3and
subsequent creditors the original own
er of the commodity covered by the
receipt.
In view of difficulties that may
arise in satisfying distant lenders as
to the validity under all conditions of
warehouse receipts for cotton offer
ed them as collateral, it would seem
that. for the present, at least, loans
on cotton must be first negotiated
through local banks in the South.
The banks have now ample facilities.
which they have never before enjoyed
Tor rediscounting the notes taken
against such loans and it is for them
more than for any other agency to
determine the policy of the South in
regard to the marketing of the pres
ent cotton crop. The results of a
gradual marketing of the crop this
season will be far more satisfactory
than would be the case were the crop
forced upon the market within
short period.
You have an opportunity of cone
serving the value Of the South's
greatest asset and upon you, South
ern bankers and merchants, rests
the responsibility Of the veal or woe
OF great agricultural section per-
haps for years. Leading financiers
freely express the fear that the sud-
den prosperity developed in some
sections and along certain lines OF in
dustry will be followed by a period
OF wild speculation and imitation. The
banking reserves of this country are
more than one billion
dollars In excess of legal require
ments. Our gold holdings, over two
billion dollars. are larger than those
OF any other two countries combined.
Our trade balances are piling up un-
probably amounting to
billion dollars during the last six
months of 1915. What better secu-
rity could Southern bank ask than
the obligation of a merchant or farm
er which he has been carrying on a
crop not yet existent, what better in
vestment than to carry this obligation
along tor few months II necessary. ,
secured by the actual cotton proper !
y warehoused ana insured ana Ger !
.ain Of a market?
4'gesident watson, in letter read /,
BY Mr.. Harding. expressed confidence
hat banks in the agricultural regions,
The South particularly, would content
themselves with not exceeding per
cent above the rate they themselves |
pay on money for meeting the cotton
and said the cotton produc-
ers should exact what. they have a
right TO expect from the banks. The |
letter. read as part of Mr.. |
Harding's address. was in reply to a
letter which had been handed the
president in Washington by Mr.. Hard
Ing during a conference at the White
House last Monday.
1t follows:
"The White House.
Washington. Aug. %. 1915.
MY Dear Mr.. Harding; Thank
you sincerely for your letter OF Aug
ust %. 1t gives me just the informa-
ton / desired.
What interests me most is
this: 1t is evident from what you
tell me that the country banks, with
whom the farmer and other produc-
ers directly deal can get money at
from to 1-2 per cent and that the
question whether the benefit Of this
advantageous rate is to be extended to
the farmer is in their hands. 1t is in
to me that those who are
responsible for dealing directly with
the producers of the country should
be willing to jeopardize the prosperity
of the country itself by refusing to
share with the producer the beneficial
rates now obtainable for money loans.
II think that we can confidently ex-
pect that the banks in the cotton
states and in the agricultural regions
generally will content themselves with
a rate not more than l or per cent
above the rate which they themselves