The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1915-09-08

1t thirty million dollars or more
of gold in the Federal Reserve
banks at Atlanta, Dallas and
Richmond. "for the purpose of
enabling the reserve banks to
rediscount loans on cotton Sc.
cured by warehouse receipts. .
He stated further that this mon
ey would be deposited without
interest charge, and that if it
become necessary he would
make the deposits directly with
the national banks which would
agree to lend money on cot
ton at a rate not exceeding 6 per
cent. He also said that for the
time being the treasury depart
ment would charge no interest
on the deposits in Federal Re-
serve banks, and justified his
action by the unusual situation
respecting cotton, caused by the
European war, saying that he
considered it his duty to use
1every available means in h is
power to help the cotton pro-
ducers of the South under such
conditions, that it was ''of eco
nomic Importance to the entire
nation that those who produce
the cotton crop shall have fair
opportunity to dispose of it grad
ually and in orderly manner, so
that they may not be forced to
sell at sacrifice prices. 9Th e
banks which are members of the
Federal Reserve system" he
continued. "should make loans
on warehouse receipts for insur.
ed cotton at low interest rates,
that the banks can we'll afford to
carry cotton for producers at 6
per cent, especially if they are
able to rediscount cotton paper
at the Federal Reserve banks at
a much lower rate than 6 per
cent"
Under the law the Federal Re-
serve board in Washington has a
right to determine the rate of
| interest which the Federal Re-
serve banks can charge member
banks on notes or loans secured
by warehouse receipts. and [
have no doubt that the bankers
in the South will be quick to
take advantage of such power.
ful aid as they are assured by
the Federal Administration will
be rendered them.
JUST RETURNED.
l have just returned from a
trip to New York, in company
with several South Carolina
bankers. I find that the banks
there with Southern correspond.
ents are ready to extend credits
based on State warehouse re
ceipts outside of the usual line
for the current needs OF the
banks, in handling their custo.
mers' notes secured by ware.
house receipts do so by re.dis-
counts, and where that is not
practical, and it is necessary for
the banks to give their own
notes secured by farmers notes
and receipts for cotton, which
increases the local banks liabil-
| ity on bills payable, that the
entry of such liability be desig-
| mated on the books of the bank,
and in the published atatements,
as "bllls payable secured by such
South Carolina State warehouse
receipts. By doing this the
Northern banks will readily un
derstand what the abnormal
amount of "bilIs payable rep
resents, where as if they did not
they would be reluctant to use
the notes OF the bank. There are
several 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 10
thousand dollars.
None of the bankers with
whom I talked in New York we're
willing to commit themselves as
to the rate of interest in advance
of ar application for a loan. l
gained the impression that they
did not like the authorities in
Washington undertaking to fix
the rate of interest, but felt that