Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1915-06-29
WAREHOUSE idea GROWING.
Interstate System Is Now In Pros.
peCt.
SENATOR McLAURIN OUTLINES PLAN.

Producers From Loss.
Columbia Record, Sunday.
With a reduction Of 13 cents on the
pound sterling on London exchange,
and with wheat in the harvesting and
the cotton crop ready to market in
two months, the south Is confronted
with serious economic situation,
says John L. McLaurin, former United
States senator from South Carolina,
and state warehouse commissioner, in
the legislation making in
several southern states regulating the
Of cotton for marketing. II
have no doubt that some means will
be found" said the former senator,
but the sudden throwing Of two i'm
mense export crops on the market
would mean q more complete embargo
than all the navies Of the world could
accomplish"
Europe on Paper Basis.
Stating that the whole Of Europe Is
on the paper basis and that, 80 long
as the United States Is on the gold
basis, the imitation in Europe will de-
preciate American values, Mr. McLau-
rim commends the proposed bill now
before the Alabama legislature provid-
ing for the Issuance Of denomina-
tional certificates on cotton, which can
be utilized as q local circulating me-
dunn and perform the same function
as legal tender. II think that there
Is sufficient breadth in the present
South Carolina law to enable me to
follow the same general plan until our
legislature meets next winter" stated
Mr.. McLaurin in speaking Of the pro-
posed legislation In Georgia and Ala
bama.
Both the Georgia and Alabama
bills provide for the appointment Of
an Interstate board, and, II the law
have five cotton states that will have
this interstate board-South Carolina,
Texas, louisiana, Georgia and Ala
bama," concludes a statement OF Mr..
McLaurin given out today.
The full text Of the statement fol-
lows:
"The near approach of the market
ing product for cotton makes 1t neces-
sary for us to consider the situation
in order not to be confronted with
conditions similar to last fall. The
legislatures Of Georgia and Alabama
will this summer consider the passage
of state warehouse laws. We must
find some means to market our cot
ton gradually. It will be necessary
to force the cotton sold to bring
fair price, because the borrowing
power Of that which we must hold
will depend upon the price OF the cot
ton marketed. The condition fully
carries out the predictions Of those Of
us who advocated total elimination
of the cotton crop for 1915, although
the consumption has far exceeded the
estimate, on account Of the new uses
found for cotton by reason OF the war.
There was on hand June l, 1,796,965
bales of cotton in manufacturing es-
adjustments, and in Independent
warehouses 2,441,133. This makes a
total Of 4,240,098, not taking into ac-
count the cotton on the farms, which
Is more, perhaps, than may be thought.
The worlds production, 1t Is estimat-
ed, will be around 2S,000,000 bales for
the year 1914-15. have no figures OF
actual consumption, but / note that
there are more spindles In active ope-
ration than there were this time last
year, and from that I deduce that the
consumption Of cotton will be around
%. 900, 900 bales, which will certainly
carry over, not counting the cotton
that has not come into sight, around
Z 100000 bales.
Tightening Lines.
1.-The lines are being frightened every
day on the shipment Of cotton. Lon
don papers are trying to force Ems.
land to declare cotton contraband OF
war. England and Italy are the only
two countries now to which cotton can
be shipped freely. Both Of these coun-
tries have a plentiful supply Of cot
ton. The stock in Italy Is enormous,
because we have been supplying Ger
many with cotton through Italian
ports, and when war was declared
Italy seized the enormous stocks on
hand. The supply in England Is larg.
er than ever before at this season or
the year.
"The financial situation Is Of even
more importance as shown In the de-
cline of foreign exchange. lnterna-
tional trade. Is really nothing but par
ter. Gold Is merely the medium
adopted by the nations to agree upon
a basis for the exchange Of products.
Exchange on London in normal times
is about $4.87 Of American money for
a. pound sterling Sixty-day bills are
now being drawn around $4.74. The
crop of wheat Is the biggest on rec
ord, and within two months our cotton
crop will be ready to market. 1t Is
estimated that the American wheat
and cotton now on hand available for
exports would amount to $750,OO0,0 ,000,
and there Is no way in the world or
selling this abroad except through the
medium Of foreign exchange. Now, II
Is potent to anybody that, with the
difference already Of 13 cents on the
pound sterling, and both the wheat ana
cotton crops ready to market, that we
are face to face with a serious situa-
ton. l have no doubt that some means
will be found, but a sudden throwing
of two immense export crops on the
market would mean a more complete
embargo than all the navies OF the
world could accomplish.
Depreeiates Values Here.
1.-The whole Of Europe is on a paper
basis, and the effect OF this inhatlon
in Europe is depreciating values In
America, so long as we are the only
nation on a gold basis. We are Tor
tunate now in having the Federal re-
serve act, which makes 1t possible 10
concentrate our reserves and place
the currency upon credit oasis py
permitting the use Of bankers ac-
ceptances, but even this will be in
sufficient without systematic action in
the cotton states to hold their cotton
and establish q borrowing basis. The
credit Of the banks and every f1nan-
cial institution in the south depends
on the market value Of cotton, and l
am glad that they are beginning to
fully recognize this fact
"The Alabama legislature Will con-
slider very important bill at the spe-
cial session this summer. l am try.
ing to arrange a conference that Will
result in the same bill being consid-
cred by both the Georgia and Ala
bama legislatures, and I think that
there is sufficient breadth in the pres
ent South Carolina law to enable me
to follow the same general plan until
our legislature meets next winter. l
wish to call attention to this matter
so that our people can be thinking
about it. These bills will provide
state warehouse system on the same
lines as the South Carolina law, but
broader and more comprehensive.
There are three bills-one OF them
the warehouse act above referred to;
the second IAN act to provide for the
of the cotton growers
of the state in the holding of cotton;
and third a graders bill on the same