The county record. [volume] (Kingstree, S.C.) 1885-1975, 1915-10-07
of the Warehor Sc
Question"

ton IS directly dependent upou Wdle
houses. A bonded warehouse is .
device whereby cotton is made avail.
able as security for loans.
The following points in relation
to the marketing of cotton should
be kept in mind:
Cotton has peculiar qualities max
ing it desirable as loan security.
At all times it can be sold for cash
and, properly protected, it is non
perishable. The South is borrow
ing, not a lending, community. there
fore the price of money, or the in
terest rate, will be high in the
South, no matter what the security
is.
Cotton is a security in it's nature
so excellent that it should be easy to
negotiate loans on it in the North
ern money centers where the rate of
interest is low.
In order to make a bale of cotton
available as security in New York
and Chicago, it must be properly in
troduced. The New York banker
must know that the cotton is in ex-
istence; that it is of the grade claim
ed for it; that it is held in a rightly
constructed warehouse, and that it
is insured. The bankers only means
of obtaining this knowledge is
through the warehouse receipt. 1t
is, therefore, indispensable that he
have complete confidence IN the
warehouse company.
Of the value of a warehouse sys-
tenn sufficient to accommodate a great
part of the cotton in existence at a
given time there can be no question.
Whether it be private or a State
system is not of first Importance,
but unless the system be conducted
upon thoroughgoing business prin-
ciples it will be worthless. II we
are to have State warehouse sys-
tenn it IS essential that it's business
be carried on with the same exact
ness of method that obtains in the
New York banking house with which
it deals.
A State warehouse system cannot
be operated unless the taxpayers are
prepared to make large initial In
vestment in it. 1t will be worse
than useless unless it shall be wholly
and permanently separated from
partisan political influences.
The people would as well under
stand that the mere fact that a
warehouse system is conducted by
the State gives it no peculiar advan-
tage or repuie. It is not less neces-
sary for the State 70 demonstrate
purpose and capacity to carry on
the warehouse business with efficl.
ency, if it is to obtain the confidence
of the commercial world, than it
would be for Smith & Jones or the
Brown company to make a similar
demonstration.
Whether the South Carolina ware
house system is an established sue
cess or not rests in the answer to
this question:
Can the owner of 100 bales OF
cotton carry it's receipt to New YORK
and there obtain loan upon it at 3
per cent or less?'
If the reply be NO" the infer
ence is that the system has been in
operation for too brief time to
establish Commercial! confidence, or
that there is some other obstacle
that impairs confidence in ito
1umbia State, Friday.
While the editor of The Enquirer
was in Columbia in January, 1912,
for the purpose of trying to help
Hon John L McLaurin get his State
warehouse idea before the people of
the State, Mr. McLaurin told this
writer of certain efforts ne had made
to secure the cooperation OF the
editor of the Columbia State in the
undertaking. 1t seems Mr. McLaurin
had had a personal conference with
the editor of The State, then Mr. W
E Gonzales, and about the only sat-
isfaction he got from Mr. Gonzales
was a proposition to this effect: l
don't know anything about the SUBJ
ject of finance, and l cannot afford
to venture into field in which |
would be unable to sustain myself. V
The editor of The Enquirer told Mr.
-McLaurin then and there: You
need never expect any assistance
from that State crowd in behalf of
your State Warehouse System or
anything else of which you are the