The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1915-09-22
coIfdRFIMlNclHeU UpToBIRKs.
PRfNDENr WILSON'S sECRE.
Tser sfAKEs sraTEMENT ON
COTTON SITUATION.
"arenousc Commissioner I'm Letter 20
Wieon Alleges Southern EYnanclcrs
are Trying to Make Financing of
thcfCrop ns Difficult as Possible.

and Snmediateiy upon the Southern
oankers and they have themselves 70
biamSif II does not come out satisfac.
torilyf says J. p. Tumulty, secretary
to President Wilson. In a letter TO
JohnFA McLaurln. state warehouse
comns ssssioner.
The president" says the letter,
has yeceived your letter of septem-
ber and has been greatly Interested
I'm resding II. He asks me to suggest
that tou emphasize the letter that
he wsote to Mr.. Harding. and which
Mr.. Harding read in his speech Mt
Birmhgham. Ala"
hrx McLaurin left yesterday for
atlanta. where he will this week de-
liver hn address on the cotton ware
house system to gathering of Geor-
gia fwmsws and business. men, which
has been called by C. Il. Barrett, pres
ident eftsc--Nanonal Farmers union.
On September Is Mr.. McIaurin
sent the following letter to President
WilsontS'f~s~ .,, 49, ys%-, r. ,.,..
"You we're so generous In the letter
read bx Mr.. Harding In his Blrming-
ham Speech that I.fe&l that you
should DE promptly advised of a sit
uatiOn how pending.
'"rhfqulck advance In cotton is due
primarily more to that letter and the
statemSnts of Messrs. McAdoo and
Harding than to the admitted short
crop. This viii later sustain prices.
IL there Is no combination OF moneyed
Interests to force cotton on the mar
ket.
Last spring the New York banks
freely baned 4 cents per pound when
the markst price was much lower than
now. The same banks are refusing
to loan over. 8 cents. This is a very
short crop. and at 10 cents a pound
viii nat bring what the last crop did
to the producers.
The banks OF the South are, as n
rule. ogposesi TO lowering the interest
rate They are afraid since your let
ter 10 come out openly and are work
Ina through the New York banks"
AZ ttis point In Tho letter follow
some "Rtterss of confidential mature
and tho charge that certain bankers
IN the south are writing letters to
influential bankers In New York. ad-
vising that II Is best not TO extend nc
commoaations to hold cotton; that Il
should pc sold at 10 oehts a pound
and thaf the best manner to accom-
pllsh this In to make the financing as
difiicultsas possible by unfavorable in
terest rptes and the refusal to loan
over 6 gents n pound. This summary
was furhished by MIR. McLaurin.
You will observe" the letter con-
tinues. fthat the basis OF the trouble
Is with hhe Southern. not the New
York. tanks. I do not wish to stir
strife and incite hatred among our
people by letting 1t be known what
some of our large banks are doing.
i am 70 address mass meeting of
the farners OF Georga on the 2lst in
Atlantatwh this matter will he un-
der dlcusslon and desire to be as
conservative as poss e. -,
To seme extent have the ear OF
the cotron planters and feel the re-
spouslhAity. IF you will advise me
marking your letter personal /
promlsd not To use what you say ex-
cept fot my pers nal guidance 80.
While &c made this crop at less cost
than tho 1914 crop. II In no short that
at IL cents we viii barely break
even.
1t ~ shortslghted policy, because
this crop will be about $500 900 bales
under f91i, and ~ IL does not show
n proht to the producers. the 1916
crop w he curtalled To where manu-
facturefs will not have the raw ma
terial o. supply their spindles. You
can see the far-reachIng effect on
financed as well as labor.
IF tie representatives OF the allies
arranghg n credit here can be in
duced ~ use n portion In purchasing
low grtde cotton carried over from
the last crop. no power can keep
prices down. The question Will settle
Itself. I had this idea when I wrote
you In August. and still think this Ia
tho selption which viii relieve your
admipstratlon of, embarrassment. II
they ftesd to purchase through New
YorkRanRs. and these force the cot
ton o<st OF our hands. II will he n grave
injustice to the helpless"