The Union times. [volume] (Union, S.C.) 1894-1918, 1915-09-24
SAYS BANKERS HOLD
KEY TO SITUATION
WILSON DECLARES PROSPERITY
OF SOUTH DEPENDENT
UPON THEM.
Tumulty Writes to Mr.. McLaurin.
Warehouse Commissioner Charged
Financiers With Making Fl
nancing Of Crop Difficult.

Columbia, Sept. 2O.-"The president
feels that the whole maintenance of
the cotton situation depends directly
and Immediately upon the Southern
bankers and they have themselves to
blame if it does not come out salts
factorily," 81. J p. Tumulty. sec
retary to Press 1nt Wilson, in a let
ter to John L. McLaurin, State ware
house commissioner.
"The president" says the letter,
has received your letter of Septem-
Der 10 and has been greatly inter-
ested in reading it. He asks me to
suggest that you emphasize the letter
that he wrote to Mr.. Harding, and
at Birmingham, Ala"
which Mr.. Harding read in his speech
at Birmingham, Ala"
Mr.. McLaurin left yesterday for
Atlanta, where he will this week de-
liver an address on the cotton ware
house system to gathering of Geor-
gia farmers and business men, which
has been called by c. E. Barrett, pres
ident of the National Farmers Union.
On September Is Mr.. McLaurin
sent the following letter to President
Wilson:
You were so generous in the letter
read by Mr.. Harding in his Birming-
ham speech that l feel that you
should be promptly advised of the sit
uation now pending.
T1 Maintain Prices.
"The qdick advance in cotton is due
primarily more to that letter and the
statements of Messrs. McAdoo and
Harding than to the admitted short
crop. This will later sustain prices,
if there is no combination of moneyed
interests to force cotton on the mar
ket. ~
Last spring the New York banks
freely loaned cents per pound when
the market price was much lower
than now. The same banks are.
refusing to loan over cents. This is
very short crop, and at 10 cents q
pound will not bring what the last
crop did to the producers.
"The banks of the South are, Is a.
rule, opposed to lowering the interest
rate. They are afraI since your let
ter to come out openly and are works
ing through the New York banks" %
At this point in the letter follow
some matters % confidential nature
and the charge that certain bankers
in the South are writing letters 20 In
fiuential bankers in New York, ad-
vising that it is hest not to extend
accommodations to mold cotton; thast
it should be sold at 10 cents n r,ocii{!}
and that the best n,pnpdsStU accosst4
'plish this is "a make the financing as
difficult as possible by unfavorahle
interests rather and the refusal to loan
over 6 cents pound. The summary
was furnished by Mr.. McLaurin.
Basis of Trouble.
"You will Observe" the letter con-
tinues, that the basis of the trouble
is with the Southern not the New
York banks. I do not wish to stir
strife and incite hatred among our
people by letting it be known what
some of our large banks are doing. /
am to address mass meeting of the
farmers of Georgia on the 21st in At
lanta, where this matter will be under
discussion and desire to be as con-
servative ea possible.
"To some extent / have the ear of
the cotton planters and feel the re-
sponsibility. If you will advise me,
making your letter personal, prom
Use not to use what you say except
for my personal guidance.
"While we make the crop at less
cost than the 1914 crop, it is so short
that at IL cents we will barely break
even.
at is shortsighted policy, because
this crop will be about 5,5O0,0O0 bales
under 1914, and if it does not show a
profit to the produce the 1916
crop will be curtailed to where man
ufacturers will not have the raw ma
terial to supply their spindles. You
can see the far-reaching effect on
finances as we'll as labor.
eff the Representatives of the allies
arranging credit here can be in
duced to use a portion in purchasing
the last crop, no power can keep
low grade cotton carried over from
prices down. The question will settle
itself. had this idea when wrote
you in August, and l still think this is
the solution which will relieve your
administration of embarrassment. If
they intend to purchase through New
York banks, and these force the cot
ton out of our hands, it will be grave
injustice to the helpless.