The herald and news. [volume] (Newberry S.C.) 1903-1937, 1915-06-29

the pOuuQ SISI4 4luS, anu oOIA IAAN
wheat and cotton crops ready to mar
ket, tat We are face to face with a
serious situation. / nave no doubt
that some means will be found, but a
sudden throwing of two immense ex-
port crops on the market would mean
more complete embargo than al.
the navies of the world could accom-
plish.
"The w,.ole of Europe is on pa
per basis, and the effect of this infa-
ton in Europe is depreciating values
in America, so long as We are the
only nation on a gold basis. We are
fortunate now in having the federal
reserve act, whicn makes it possible
to concentrate our reserves and
place the currency upon a credit basis
by permitting the use of bankers ac-
ceptances, but even this will be in
sufficient without systematic action
in the cotton States to hold their cot
ton and establish borrowing basis.
The credit of the banks and every fl
nancial institution in the South de-
pends on the market value of cot
ton, and l am glad that they are be-
ginning to fully recognize this fact.
"The Alabama legislature will con-
slider a very important bill at the spe-
cial session this summer. l am try
ing to arrange conference that will
result in the same bill being consid-
cred by both the Georgia and Alabama
legislatures, and l t:ink there is suf-
ficient breadth in the present South
Carolina law to enable me to follow
the same general plan until our leg
islature meets next winter. wish to
call attention to this matter so that
our people can be thinking about
it. These bills will provide a State
warehouse system on the same lines
as the South Carolina law, but broad
er and more comprehensive. There
are tree bills; one of them the
warehouse act above referred to; the
second "an act to provide for the CO.
operation of tie cotton growers of the
State in the holding of cotton" and,
third, graders bill on the same gen.
eral plan of the one that recentlp
published in the newspapers.
"The cotton holding bill in Alabama
provides tat whenever the governor
of that State has given satisfactory
assurance by the owners OF 100000 or
more bales of cotton that they desire
to place it under the control Of COM
mission, that he will appoint five cit
liens of the State of Alabama, who,
with the governor, shall be known as
the cotton holding commission, with
him as ex-oficio chairman. This COM
mission has the authority to accept
the receipts from the State warehouse
and to issue to the owner of such
receipts certificates in the denomlna-
ton of $500 each for not more titan
So per cent. of the market value OF
the cotton at the time that the certi-
ficate is issued. The act restricts and
carefully guards the issuing and pro-
vides the manner for the retirement of
the certificates. Those who were in
the State senate with me will remem-
Der tat during the special session ]
suggested an idea of this sort instead
of the bond issue. So as to snow that
it has high financial endorsement l
herewith append copy of letter
received from Mr.. Baldwin, president
of one of the largest banks in the
State of Alabama Of course these
$500 certificates that are issued could
be used in local way, and, to a great
extent perform the functions Of real
money.
|'The letter from Mr.. Baldwin is as
follows:
First National Ban kof Montgomery,
Alabama
June %, 1915.
''Hon. Jno. L. McLaurin, State Ware
ltouse Commissioner, Columbia, S..
C.
Dear Sir: l have mad some cor
respondence with Mr. w. P. G. Hard
ing, of the federal reserve board, in
connection with three bills which are
pending in the Alabama legislature
upon the subject Of warehousing, pool
ing for sale and grading Of cotton in
this State.
"Mr. Harding writes me that you