The herald and news. [volume] (Newberry S.C.) 1903-1937, 1915-03-30

bOSSlDiiIlltS OF tHe Stdtc va i4CN'1~
system as a medium for tie economic
holding of cotton. In .act. this is my
first opportunity to view ii through tAe
eyes of America financial magnates,
and must say the view TO me IS very
attractive at is time, because it pro-
vides means OF financing cotton al
the lowest rates Of interest ever seen
in the South
Relief Fer Country Banks.
This viii relieve the country banks
of the burden CT carrying their cotton
and anable t en- 10 use their resources
in helping tneir customers by fnanc-
ing the current needs of business. Tais
s, ould speedily restore in South Caro-
lima our industrial and economic life
10 a normal basis. 1t will give the
ether States a aluable lesson in what
it means TO convert their cotton into
lesotia5ie security.
q am quite sure that Senator Nc
Laurin will take pleasure at his ear
Iiest convenience in furnishing detail
ed information to every citizen Of the
State who may be interested
i ad but little to do with the work
Of = andling the financial scheme, being
little more than a loCker-o2- in New
York. Commissioner McLaurin turned
J the trick. 1t was particularly pleas
ing to me to observe the ease with
which he handled tie financial mag
mates
Senator Banks was happy over Sc
curing his loan of $4,000 at per
cent. interest on is cotton receipts
from the State warehouse. and feels
assured that this plan will enable
money to get into circulation and that
business will rapidly return to normal
in South Carolina, and that there will
be no easing" up in all lines of credit.
Proposition Submitted.
Mr.. McLaurin has a proposition sub
mitted for his acceptance detailing a
plan to overcome the difficulty pre-
scented in tie fact that the money
Would be borrowed by so many diff
forent individuals, and the bank wishes
to ceal with single borrower. The
suggestion is made that Mr. McLau
rim arrange with some responsible
bank or financial institution in South
Carolina to loan against State ware
/ house receipts, and that he take in
connection with such loans en agree
ment gi1ing tt institution selected by
him the rig3t of hypothecation or sub
rogation. Then they can send the
warehouse receipts to broker in New
York with a sight draft on the New
! York bank, under tie provisions OF
the New York State law recently
passed providing fur such acceptance.
! T3ese acceptances are generally
charged by the bank accepting same l
yer cent per annum, or at the rate OF
one-quarter per cent. for eacn ninety
day acceptance. Drafts so accepted
can be sold in the market at the pres
ent time at a rate of 2 1-2 per cent
ger annum, which added to the accept
ance commission of l per cent for each
ninety days, equal to l IL per cent.
ger annum, would make the total cost
of the money so borrowed 4 per cent.
A local bank could get tbs money and
distribute it to their customers at 3
per cent. and make profit Of 2 per
cent. :or their services and a negi-
gible risk assumed. at will take some
time for me to go over all these mat
ters,' said Senator McLaurin, "and
then will make statement; have
placed straight loan for Senator
Banks at ) per cent. straight interest,
which is a good deal better an the 8
! per cent. discount now being paid in
South Carolina. and 2ard to get at
that
Senator McLaurin said that Mr. W.
P. G. Harding, member Of the fed
eral reserve board and native of Ala
bama, has ever since tne institution
of the warehouse system rendered val
liable aid. "I intend to write AIr. De-
Camp, president of the State Press as
sociation, and suggest Il at Mr. Hardin
be invited to deli.er an address at
their annual meeting at Chick Springs,
as our people need information and
education on financial matters" Inc
stated
3NlpMIN1k1 6 IcIDN0NG Ia n10e ~