The herald and news. [volume] (Newberry S.C.) 1903-1937, 1915-03-30
|NEY OH STAPLE
AT FIVE PER CENT
FOR LOANS
on COTTON RECEIPTS
I'm ,and Banks Gould Have
ured Easily at Loan OF $780,
600 On Cotton Receipts.
E.s and Courier.

600 On Cotton Receipts.
rs and Courier.
elmbia. March 25.-Arrangenlents
finance cotton stored in State ware
ybhouses through New York banks were
announced today b. former Senator
John l.. McLaurin, who returned on
the early train from a trip to Wash
ington and New York. He was accom-
panied by State Senator J. Art ur
Banks, of Calhoun county. That ar
rangements perfected produce the
money was emphasized by Senator
Banks, who told how he had borrowed
$4,000 at ) per cent. straight interest
en- warehouse receipts Of cotton, which
i.e has stored in the State warehouse
The practical difficulty heretofore
standing in the way of the warehouse
system las been the financing of the
cotton, but this as now been removed,
and hereafter all parties who Lave
their cotton stored in the system and
who desire to secure loans and their
warehouse receipts can do SO and at
low rate of interest.
Valuable assistance was rendered by
Mr.. W. P. C.. Harding, a member OF
tie federal reserve board, to Senator
McLaurin, and in New York Ae held
satisfactory conferences with tie
Guaranty Trust company and the Ma
tional City bank, of which Mr.. Frank
P. Vanderlip is the president. 1t was
/ at the Guaranty Trust company that
Mr.. Banks secured his $4,000.
Bankers Enthusiastic.
TIE South Carolinians report that
they believe it would have been carrier
to secure a loan of 100000 on cotton.
They state that the New York finan-
ciers are enthusiastic over the plan and
will lend every assistance.
A detailed statement covering the
matter in detail is being prepared by
Senator McLaurin and will be issued
to the public in few days. Great
interest was created throughout the
State by tie announcement that ar
rangements had been made to finance
the cotton stored at low rate of in
terest, and several here today were
predicting great results in every line
OF business through a revival and
fast return to normal conditions. A
spirit of optimism has been started
through the announcement by Commis-
sioner McLaurin His detailed state
ment vii be awaited with tie greatest
of interest.
One of the main points empt asized
in the statement of Senator Banks
about this matter is that the small
banks can now relieve themselves Of
the burden of carrying loans on last
years cotton crop and can turn their
resources through extending credits
for the coming crops. 1t is believed
T. at bankers will be especially inter-
ested in the result of this arrange
ment for financing cotton.
Mr.. Banks Statement.
Senator ]. Arthur Banks, State SEN
ator FOR Calhoun county, gave o.,
tse following statement on his return
this morning from trip to New Yor!-
with State Warehouse Commissioner
Joan L. McJiai;riI:
"In January publis> ed a statement
showing the met Cd by which cotton
can be stored under the State ware
house system for less than 10, cents
per bale per month.
''It may now be OF general interest
to know how cotton so stored may De
be financed by the State Warehouse
commissioner through strong financial
institutions, such as tie Guaranty
Trust Company and the National City
bank, Of Nwe York, as worked out by
Commissioner McLaurin and myself
during our trip to Washington and
New York, from which We have just
returned. We found Mr.. Harding, Of
the federal reserve board, enthusi-
astic in MS endorsement of our ware
house system, speaking of it as a
model of its kind and the Guaranty
Trust company and the National City
bank assured US of d.eir desire to CO.
operate with this agency by financing
all cotton offered by and held in these
warehouses on a basis Of 80 per cent.
OF its market ralue at attractive in
terest rates.
Pleased With Security.
'Mr. Sabin, of the Guaranty Trust