The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1915-09-29
PUBLISHED EVERY WEDNESDAY
aEssEHTIALs OF TIE WAREHOUSE QUES
TIOE."

IS S01oO4 ID oA2SSoAy Wv
on warehouses. A bonded ware
house is a device whereby cot
ton is made available as security
for loans.
The following points in rela-
: ton to the marketing of cotton
should be kept in mind.
Cotton has peculiar qualities.
making it desirable as a loan Sc
curity. At all times it can be
sold for cash and, properly pro.
tected it is non-perishable. The
South is a borrowing, not a lend
ing, community, therefore the
price of money, or, the interest
rate, will be high IN the south
20 matter what the security is.
Cotton is a security in its na.
tire so excellent that it should
be easy to negotiate loans on it
Ia the northern money centers
where the rate of interest is low,
IN order to make a bale of cot
ton available security in New
York and Chicago, it must be
properly introduced. The New
York banker must know thetthe
/ cotton is in existence, that is OF
the grade claimed for it, that it
IS held in a.rightly constructed
warehouse, and that it is insur-
cd. The bankers only means OF
obtaining this knowledge is
through the warehouse receipt.
It is, therefore. indispensable lie
that he have complete conf
dence in the warehouse COM
pany.
of the value of a warehouse
system sufficient to accommodate
q great part Of the cotton in ex
istenee at a given time there can
be no question. Whether it be
q private ora state system is not
Of first Importance, but unless
3 the system be conducted on
horoughgoing business princi.
pies it viii be worthless. If we
are to have a state warehouse
3 system it is essential that its
business be carried on with the
same exacsness of method that
obtains in the New York bank.
s ing house with which it deals.
"a state warehouse system can
not be operated unless the tax
payers are prepared to make
large initial investment in it. It
viii be worse than useless un-
less it shall be wholly and per-
manently separated from politi-
cal influences.
The people would as well un.
derstand that the mere fact that
warehouse system is conduct
ed by the state gives it no pecul-
lar advantage or repute. It is
not less necessary for the state
20 demonstrate purpose and ca
pacity to carry on the warehouse
business with efficiency. if it is
TO obtain the confidence of the
commercial world, then it would
be for Smith and Jones or the
Brown company to make sim
liar demonstration. I.
Whether the South Carolina
warehouse system is an estab.
ished success or rot rests in
the answer to this question:
Can the owner of 100 bales
of cotton carry its receipt to
New York and there obtain a
loan upon it at 6 per cent or
lesssn
If the reply be '.No." the in
ference is that the system has
been in operation for two brief a
time to establish commercial con
fidence, or that there is some
other obstacle that impairs con-
6dence in it.-Columbia State,
Friday.
While the editor of The En-
quirer was in Columbia in Jan.
i nary, 1912, for the purpose of
trying to help Hon. John L. Nc
Laurin get his state warehouse
idea before the people of the
state, Mr.. McLaurin told this
writer of certain efforts he had
made to secure the cooperation
of the editor of the Columbia
State in the undertaking. It
seems Mr.. McLaurin had had a
personal conference with the ed
tor of The State, then Mr.. W.
e. Gonzales, and about the only
satisfaction be got from Mr..
.GouZaleS was a proposition to