The herald and news. [volume] (Newberry S.C.) 1903-1937, 1915-06-29
WHY BANKS DO NOT FAVOR
THE WAREHOUSE SYSTEM
Anderson Tribune.

1dE HAhEhUUSE W S1SlEM
Anderson Tribune
We called attention in our issue of
Tuesday to the very handsome recep-
ton that the North Carolina State
Bankers association gave to Hon.
John L. McLaurin, who attended the
meeting wit Mr. Harding of the
federal reserve board. 1t does seem
strange that the South Carolina bank
ers are so determined in their stand
against the State warehouse system.
They had Nr. Harding at the Isle Of
Palms, and it does look as if, con-
sidering what Mr.. Harding said about
the value of the State warehouse sys-
tenn, tnat if the banks really want to
help the people they would seek to
encourage the warehousing of cotton
and the use of the receipts as col
lateral for borrowing money.
We are inclined to think that the
cause of their not doing so is the,
statement published by Mr. McLaurin
in March, that he had secured a 'oan
for Senator Banks of st. Matthews,
in New York, at five per cent, and
could borrow all the money that he
could get State warehouse receipts
for at five per cent, and that in large
amounts it could have been obtained
on acceptances at three and one-half
per cent.
The banks In this state do not want
to hear of anything less than eight
per cent. discount, and they are de-
termined to break the State ware
house system down if they can be
cause it furnishes an avenue for far
mers to get cheap money.
The function of bank should be
to conserve the credits Of the country.
and not mere place to borrow money.
The farmers create the credits, and
tae banks use these credits to hold
down the very class which makes
them.
Such a condition of affairs Gannot
last indefinitely, and if McLaurin sue
ceeds in establishing this system in
Georgia and Alabama, it will be so
firmly fixed that hereafter we will
hear no more of eight per cent. dis
count
| If this fight is continued against
the warehouse system, we nope that
McLaurin will enter tie race next
year, for governor, and make a fight
for the State warehouse system, and
for a legislature in sympathy with
industrial progression the freedom
of tae farming and laboring classes
from the oppression of the mone7
power.
The present State administration
is the product of bitter factionalism,
and in spite of his promise, Governor
Manning is as mucn a partisan of the
money power, and corporation inter
/ ests as Governor Blease was on the
OF: er end Of the line.
We don't think that McLaurin at
present has any intention of entering
the gubernatorial race, but if the next
legislature shows the same dispCsf-
ton that it did last winter, we are
satisfied that he will be forced, in de-
fence of the farming and laboring In
terests in this State. to make the is
sue
We must believe that in such an
event former Governor Blease would
urge tie people who twice elected
him governor to rally around the
standard of McLaurin and let the
issue be squarely made between Nc
Laurin, for the people, on the one
side, and Manning, for the money
interests and the corporations, Oh
the other. The people are demand
ing relief, and they are going to have
it. McLaurin is laboring in their
interest. and if he is forced to carry
the fight for them into the guberna-
torial race he will not hesitate to do
so. Blease is pledged to the cause
of the people, and the farmers and the
laboring people twice made him their
governor. And if the peoples stand
ard is raised by McLaurin next sum-
mer we have no doubt that Blease.
who bore it for four years, will, by
his devotion to- the cause, materially
aid in carrying it forward to victory.
which is sure if we are united.