The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1915-09-04
M'lIURIh SINGS SIREN SONG,
SAYS FARMERS CAN GET f.
CENTS "A POUND FOR COT.
TON.
Believes IL Staple Is Marketed Grad
ually This Can be DOnc-Lauds
Presidents Stand-Statcs Banks i'm
New York Have Plenty Of Money to
Lend OH Cotton Crop.

er, lauds President Wilson and the
national administration for the inter-
est and work they are doing for the
cotton producers of the South, and
says that If the crop is marketed
gradually II will bring IL cents a
pound. These and other facts were
stated In an address to the farmers of
the State, made public here this after
noon. Mr.. McLaurin has just return
ed from trip TO Washington and New
York, and in his statement ne tells of
the results of the trip and what the
Wilson administration is doing for
the South.
In his address to the farmers of
South Carolina Mr.. McLaurin says in
part:
TO the Farmers Of South Carolina:
We are approaching the markoting
period for our new crop under condi-
tions never before presented. We can
secure prices above the cost of pro-
duction, provided we place ourselves in
position to take advantage Of the
opportunity. We need not deceive
ourselves that IL will not be q hard
night, because those who have hereto
fore proflted by forcing the crop out
or our hands at low price during
the marketing period and reaping an
enormous profit in the spring, will use
every effort to do SO again. Yester-
day, on a report which could not pos-
sibly be construed as indicating much
over an 11.000.000-bale crop, the
market was forced off one dollar and
seventy cents per bale.
In anticipation of these tactics,
wrote President Wilson a letter on the
9th OF August, specifically calling his
attention to the necessity of imme-
date action. In his reply the presi-
dent expressed his genuine interest
and promised TO discuss 1t with those
who understand these matters better
than / do He conferred with Mr..
Harding. of the federal reserve board,
and Mr.. Harding, during the course
of an address delivered in Birming-
ham last Wednesday night, read a
letter from President Wilson. which,
together with the address, is all that
we could expect.
II have just returned from q trip
70 New York. in company with several
South Carolina bankers. I hud that
the banks there with Southern corre-
spondents are ready to extend credits
based on State warehouse receipts out
side of the usual line for the current
needs OF the banks. I suggested that
our local banks, in handling their GUS
toners notes secured by warehouse
receipts to do so by rediscounts, and
where that is not practical. and 1t Is
necessary for the banks to give their
own notes secured by farmers notes
and receipts for cotton, which in
creases the local banks liability on
bills payable. that the entry of such
liability be designated on the books of
the banks and in the published state
ments as bills payable secured by
South Carolina State warehouse re-
ceipts.' BY doing this the Northern
banks will readily understand what
the abnormal amount Of bills pay
able represents. whereas. IL they did
not they would be reluctant to handle
the notes of the bank. There are sew
eral large banks which have expressed
their Willingness to handle State
warehouse receipts for others than
their regular correspondents. These
banks. however. do not care for this
class of business in small amounts.
say, less than ten thousand dollars.
III do not think that technically,
except for the temporary Interrupt
tiOn OF foreign exports. cotton has
ever been in such a strong position. l
am thoroughly satisfied that the close
of the war will find the world short of
cotton, and that prices will go as alb
normally high as they have boon low,
L do believe. however, that there is
a concerted movement. just 10 there
was last fall, to force just as much of
the present crop out of the hands of
weak holders us possible, and / wish
To warn our people against being
caught by spccious reasoning and
making Il sacrifice of their cotton.
Secretary Hester tells us that the spin
ners of the world manufactured into
cloth and other commercial articles
during past year 14.133, 900 bales Of
cotton. III that be true, then there
cannot be much reserve cotton on
hand and the stocks of manufactured
goods in Germany. Russia. France
and the Orient must be at a mini
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