Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1915-09-24
usuRY MUST BE DESTROYED
Secretary MeAdoo Gives Opinion ir
Letter to Mclaurin.

secretary McHooo SiVeS Sp'hion 'H
Letter to McLaurin.
Hon. John L.. McLaurin on yester-
day gave out the following corre-
]spondence between himself and Hon.
w. G. McAdoo, secretary Of the treas
ury:
Mr.. McAdoo's Letter
Dear Mr.. McLaurin: Please &C
cept M hearty thanks for the copy
of your letter of September l, to the
president, which l have read with in
terest, and also for the copy Of your
speech, which l was glad to receive. l
inclose copy of my statement about
the $50, 900, 900 deposit in the Federal
reserve banks and copy of the Federal
reserve board regulations concerning
commodity paper. If the banks Of the
south do their duty, the farmers or
the south should be able to get mon
ey al 6 per cent. to help them market
staple commodities for a reasonable
length of time, until they can be
marketed in an orderly manner.
Il agree with you fully about the
curse of usury in the south. l hope to
live long enough to see usurious prac-
tees destroyed and to contribute
something myself to that end l be-
lieve it can be done and that it will
be done. The states, however, must
do their part. Usury ought to be made
an offense subject to grand jury in
vestigation to be prosecuted by vari-
Gus states attorneys. So long as the
remedy for usury is placed in the
hands of the borrower, not only he,
l,t tho nIyar1 pa la Uvpr iS afraid TO
raise the issue. The Federal reserve
system will, by extension Of its bene-
fits to the masses Of the people, edu-
cate them to the necessity for uphold
ing and preserving this great piece OF
legislation.
Il congratulate you on the splendid
work you have done for an intelli-
gent warehouse system in the south.
Cotton seems to be doing we'll"
McLaurin's Reply.
My Dear Mr.. McAdoo: l thank you
sincerely for your letter, and can as
sure you that the farmers of the south
appreciate the courageous stand you
take for right and justice. Your
statements, with those of President
Wilson, have inspired a new patriot
ism and given fresh hope to the pro-
ducers of the country.
Many of our South Carolina banks
are giving loyal support to your eff
forts.
Il am inclosing an extract from a
speech delivered in Atlanta on the 2lst,
which is. creating a storm among
some of the bankers in South Carroll
ma, but which is accomplishing just
what l expected it to do, in bringing
forth protestations of ability and will
lingneSs to loan money at 6 per cent.
The national banks have a splen-
did opportunity through the reserve
system, but our state. banks are, gen.
orally speaking, at a disadvantage, UNI
less they can get accommodations in
the money centre. Those who ven
tured most in 1914 to aid their GUS
toners, and who are therefore most
worthy of consideration, a. a rule, find
their bills payable so extended that
they are not in a position to comply
with the requirements for entering the
Federal reserve system. 1t is not that
they are not willing and anxious to do
so, but cannot until their customers
can sell a sufficient amount Of cotton
to reduce their liabilities, which are
treated differently under the Federal
law. l am undertaking to assist them
in securing accommodations in New
York to tide them over until such
time as they car nationalist. l have
not talked to a single n of these
state bankers yet who has not eX-
pressed the intention of entering the
Federal reserve system as soon as he
could. | have found the New York
banks very reasonable, n entirely