The herald and news. [volume] (Newberry S.C.) 1903-1937, 1915-09-03
MeL4URIN PREDICTS
TWELVE CENTS COTTON
South Carolina Commissioner Issues
Statement Giving Financial Re-
view of Coming Crop.

this opportunity, by Withholding her
cotton from the market in September
and October, it will reach II cents a
pound for middling, and then when it
goes below that point and obligations
are pressing, borrow 10 cents pound
and hold it off the market until 1t goes
back to y cents. We can pay our in
debtedness with 10 cents cotton and
carry over whatever surplus there IS
for the big prices sure to come within
the next year. In this way the aver
age price of the present crop can be
made to indemnify us in some part for
the losses last year"
The foregoing is the conclusion Of
John l.. McLaurin, State warehouse
commissioner, as to the future price
of the cotton crop, provided there is
correct method used in its marketing.
The commissioner this morning gave
the Columbia Record a statement out
lining the results of his recent trip to
New York, and the efforts Of President
Wilson and H. w. P. Harding Of the
national reserve board, seeing that ad-
equate provision is made by the banks
for the marketing of the coming cot
ton crop.
Commissioner McLaurin comments
forcibly on the announcement Of
Secretary of the Treasury McAdoo that
SS0,00O,OOO will be placed in the banks
of the South for the marketing Of the
cotton crop and the letter of President
Wilson, in which the nations chief ex-
ecutive states that the cotton produc-
ers may feel themselves free to exact
of the banks with which they have to
deal what they undoubtedly have a
right to expect"
The full text of Commissioner Nc
Laurin's statement follows:
To the Farmers of South Carolina:
We are approaching the marketing
period of our crop under conditions
never before presented. We can Sc
cure prices above the cost Of produc-
6ion provided We place ourselves in a
position to take advantage Of the op-
portunity. We need not deceive our
selves that it will not be a hard fight.
because those who have heretofore
profted by forcing the crop out of our
hands at a low price during the mar
keting period and reaping an enor-
NOUS profit in the spring, will use ev-
cry effort to do so again. Yesterday,
on a report which could not possibly
be construed as indicating much over
an eleven-million-bale crop, the mar
ket was forced off one dollar and sew
eenty cents per bale.
In anticipation of these tactics, !
wrote President Wilson a letter on
the 5th of August, specifically calling
his attention to the necessity of i'm
mediate action. In his reply the pres
ident expressed his genuine inter
est" and promised to discuss it with
those who understand these matters
better than l do" He conferred with
mt. Harding of the federal reserve
board and Mr.. Harding, during the
course of an address delivered in Bir-
m1ngham list Wednesday night, read
letter from President Wilson, which,
together with the address, is all that
we could expect. Mr.. Harding said,
ssthe welfare of the South depends
upon this crop being marketed at fair
~ remunerative prices; the prosperity,
OF the reverse, of the Southern farmer
means strength or weakness of the
merchants and bankers of the South,
and vitality affects trades and indus
tries throughout this entire country"
<tLet' Southern bankers" he said, "wher-
ever pOSSlDAS, 1udhG t1OO4 oI SOHSCSoAOAS
in their usual rates on commodity
loans. High interest rates means
f0med sales. Present conditions fully
justify low rates, and Southern bank
ers should be Wiling to forego tempo
~rary profits ter the sake of security
and soiidity N the future. I am sure
that the Federal Reserve banks may
be depended urcn, under their power
eS rediscount, to cooperate to the full
est extent with the banks in taking
care of the cotton crop What
Toerter security, therefore, could a
Southern bank ask than the obligation
of merchant or farmer which he has
been carrying on a crop not yet ex-
=isting-what better or more liquid in
wes1ment, could a Southern banker