The farmer and mechanic., 1915-10-12
columbia Record.

be able to get money at 6 per cent to
help them market their crops, or
carry their crops Of staple commo-
dties for a reasonable length Of time,
until they can be marketed in an or
derby manner"
The foregoing expression of opin-
ion as to the duties of the banks of
this section in helping the agricul-
tural interest was written by w. G.
McAdoo, Secretary Of the Treasury, to
John l.. McLaurin, State warehouse
commissioner, in a letter released for
publication today. Mr.. McAdoo goes
on to say that he hopes to see the
"usurious practices Of the Southern
banks stopped by making uSury a
subject for grand jury investigation
and prosecution. II hope to contri-
butte something myself to that end"
says Mr.. McAdoo.
In his answer to the McAdoo let
ter, Commissioner McLaurin makes
reference to his Atlanta speech in
which he criticized the bankers of
South Carolina and says that the
speech created a "storm among some
Of the bankers in South Carolina but
which is accomplishing just what l
expected it to do, in bringing forth
protestations of ability and willing
ness to loan money at per cent"
McLaurin to Mr.. McAdoo:
September %, 1915.
"Hon. w. G. McAdoo, Treasury De-
partment, Washington, D. G.
MY Dear Mr.. McAdoo: 1 thank you
sincerely for your letter, and can as
sure you that the farmers Of the
South appreciate the courageous stand
you take for right and justice. Your
statements, with those Of President
Wilson, have inspired a new pa
triotism and given fresh hope to the
producers Of the country.
Many Of our South Carolina banks
are giving loyal support to your eff
forts.
II am enclosing an extract from a
speech delivered in Atlanta on the
21st which is creating a storm
among some of the bankers in South
Carolina. but which is accomplishing
just what / expected it to do, in bring
ing forth protestations Of ability and
willingness to loan money at per
cent.
THE national banks have a splen-
did opportunity through the reserve
system, but our State banks are, gen.
orally speaking, at a disadvantage
unless they can get accommodations
in the money center. Those who ven
tured most in 1914 to aid their Gus
toners, and who are therefore most
worthy Of consideration, as rule find
their bills payable SO extended that
they are not in a position to comply
with the requirements for entering
the Federal reserve system. 1t is MOI
that they are not willing and anxious
to do so, but cannot until their Gus
toners can sell a sufficient amount O1
cotton to reduce their liabilities
which are treated differently under
the Federal law. l am undertaking tt
assist them in securing accommoda
tions in New York to tide them Ovel
until such time as they can nation
alize. 1 have not talked to a one o
these State bankers yet who has no
expressed the intention Of enterin,
the Federal reserve system as soon a
he could. I have found the New YOrl
banks very reasonable, and entirel
willing to extend accommodation
when convinced that they are safe il
Carolina. however, who from selfis
interest. have been trying to dis
credit the State system with the NeN
York banks.
Il know that you have nothing t
do with State banks, but your mora
support, generally speaking, is OF tire
mendouS value even to them, and
your letter is such a gratifying er
dorsement Of my work, l am using
for that purpose.
with kindest personal regards an
ton / am,
Sincerely,
(Signed) JOHN G. McLAURIN."
"P. S.--At the convention which "
held in Atlanta, Governor Harris al
nounced that he would call the exit
session Of the Legislature and recon
mend the passage Of State war
house bill along the same lines as tt
South Carolina law"
The following Is the McAdoo lie
ter:
THE Secretary of the Treasury,
Washington, Sept. 21, 1915.
Dear Mr.. McLaurin: Please acce
my hearty thanks for the copy of yo'
letter of September 1st to the Pres
dent. which / have read with intere:
and also for the copy Of your speec
which was glad to receive. I enclo