The herald and news. [volume] (Newberry S.C.) 1903-1937, 1915-01-12
Statement of Mr.. James.

/
funds, to b. loaned 20 the cotton far
1..ers a. rate If INT, rest not ex-
| cceding four pc; oeE!, l cannot az
| what course will be pursued to aid
them.
or course it is now in tie power
of the federal reserve board to come
to the refcue Of the southern people
if they WILL. Undoubtedly, the feier-
al reserve acr. no~ supposed to be a
full operauo1, and the federal re-
serve boarl Gave the right to de:cr-
| ln,ne or s.;ire .thr CT aracter g paper
thus eligible for discount within tha
meaning of this act. Nothing in tie
act contained shall be construed to
prohibit sucl notes, drafts, and bills
of exchange, secured by staple agri-
cultural products from being
eligible Tor such discount Thus far
am quoting exactly from section -
|
in toe same section there is pro-
vision forced into the law by the
friends of the farmer in congress and
myself to this effect: "Notes, drafts
and bills drawn or issued for agricui-
tural purposes having a mat
urity not exceeding six months, may
be discounted Il an amount to be linn
tied to a percentage of the capital OF
the federal reserve bank to 6e ascer-
tanned and fixed by the federal reserve
board" Under t4is section and sec
ton 1s providing Apr note issues, the
federal reserve board can authorize all
member banks in the South to accept
the cotton farmers notes bearing in
terest at a rate OF four per cent per
annum, based upon warehouse re-
ceipts, and arbitrarily make the def
nition that such paper shall be eligible
for rediscount at the federal reserve
banks at Dallas, Atlanta, and Kan
sas City, with the absolute right Of
renewal at maturity for another six
months.
AS war measure, in this terrible
crisis resting upon the South, the fed
real reserve board has indisputable
and plenary power to make tais def
milton and relieve the distressing sit
uation o. the cotton farmer. Will they
do it, as they should in the tempo
rary paralysis of the cotton industry
brought on in the South by the war i'll
Europe? In my judgment this law
J was enacted for just such crisis as
this in order that an adequate amount
of currency might be issued and loan
ed in localities where needed at a
rate of interest in accordance with the
promises of several national demo-
cratic platforms.
General Rural Credits Bill.
I cannot agree with Secretary Of
Agriculture Houston that the neces-
sity for a general arm credits bill is
obviated by the passage of the Glass
Owen currency bill The Baltimore
platform promised a separate and dis
tinct rural credits law for the bene-
fit O. the farmers, and it seems to ple
that We should hasten to keep faith
With the people and redeem this
pledge.
Still, it may be seen that with the
secretary of agriculture fighting rural
| credits legislation, and the committee
on banking and currency in the house
Of representatives hostile to taking up
this legislation at this session of con-
gress, and failing to report the same
to the house, it is not an easy mat
ter for the friends of the legislation
to pass the bill in the teeth of such
opposition as this and hostile senti-
ment in these quarters.
If the secretary of agriculture will
urge the passage OF a general rura'
credits bill and the committee on
banking and currency in the house
will formulate sucn measure and
present it to congress, as member
of the committee on rules and a rep
resentative from Texas I shall do
everything in my power to hasten &C
ton on this question for the benefit
of the American farmer With the pres
ent situation confronting us, our task
indeed is hard one, and this legis-
lation may be postponed for another
year. But my heart and hopes are
ciSn Of action tniS