The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1915-04-07

it, the backbone of trade, is
built upon the solid foundation
of character and ability. With
out such component, parts the
structure is insecure and lacks
permanency. No matter what
amount of capital one may have
employed in his business, credit
remains his most valuable asset. "
For many years our cotton
planters have created vast ma
tional credits which others have
used to their own benefit, max
ing US pay heavy interest for
the use Of our own credits.
In speaking of the re-discounts
under the new currency law,
and, more recently, acceptances
.under the New York state bank
law, Mr.. Eldridge said, in the
same address: ''Taking the
south as an example and re-
calling the evident desire OF con-
gress and the country at large
to assist in it's problem Of caring
for the large cotton crop of this
season and the slow movement
consequent to the lessened de-
mand occasioned by the war, it
can be seen what degrees of
usefulness the acceptance privi.
lege would have permitted. 1t
cannot be expected that a north
ern investing bank should be
familiar with the quality of the
usual warehouse receipt issued
in the various centers Of the
south. But if such advances
could be made against bills
drawn by the owner of the cot.
ton on IL bunk Of high standing,
the situation would assume a far
different aspect. The accepting
bank would protect itself by the
deposit with it of familiar ware
house receipts representing cot:
ton in sufficient amount to am
ply protect IT."
The state warehouse law was
designed to meet just this con-
dition of affairs, and now. is the
proper time to establish in the
money centres their value as a
collateral. I have kept in touch
with the Federal reserve board,
and am greatly indebted to the
kindness and intelligent aid rem
dered personally by Mr.. v. P.
G. Harding, who coming from
the south. thoroughly under
stands finance as it relates TO
cotton. He gave me personal
letter in which be said, "The
state warehouse law is, in my
opinion, in advance of anything
that has been attempted in other
southern states, and appears to
be a model of its kind"
New York fnanciers desire to
maintain that city as a financial
centre, and to do so must offer
money at a rate under the dis
count established at the various
reserve banks. This gives the
Federal board considerable pow
er over interest rates, by lower
ing or raising the Federal dis.
count rate. The intention of
the state bank law is to develop
an acceptance and discount
market in New York such as
has enabled London to make
herself the clearing house of the
world. The National City bank
is showing great wisdom in es-
ia fishing branch banks under
the Federal law in South Amer
ica and elsewhere, SO as to de.
veiop our export trade.
Under the old national bank
ing system we had a rigid money
market, producing such bankers
panics as in 1907, because just
as credits needed expansion to
avert panic, there was a con
traction Of credits. increasing
panic conditions. These &C
ceptances will make tor elastici
ty by extending credit when
needed and automatically retir-
ing credit when not required by
actual business needs.
The new currency law, under
its power to Tx the re.di>count
rates, will eventually standard
ize interest charges throughout
the country. land, to sone extent.
eliminate competition as to in
terest rates. 1t is to meet this
condition that system Of &C