The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1915-09-04
COTTON WAREHOUSES;.
Government Survey OF Conditions
Reveals Defects I'm Existing Systems
Need for Better Distribution.

age capacity, according to recent
survey made by the department. to
store as much of the crop as there is
any need for but they are poorly dis
tributed. The best are not available
to the farmer and the charges of the
others are higher than he Is disposed
to pay. These facts complicate the
financing OF the crop. and are largely
responsible for keeping so many cot
ton farmers under the blight of the
credit system. A better system of
warehouses would do much to help
the situation.
Cotton. according to the government
specialists. Is considered the very best
collateral, and bankers and business
men in general are willing to lend
money on 1t at lower interest than on
real estate. An essential condition is,
however. that the cotton be properly
stored and insured. At present how
ever. this is Wery rarely done. The
farmes are accustomed to dispose of
their crop at the earliest possible
moment and in the nearest town.
Much of the crop, If not all Of it, is
frequently pledged in advance, in or
der 20 obtain supplies for the farmer
Even when the price drops as low as
A..
1t did In the fall of 1914, the need for
immediate cash induces the farmer to
depress the marked still further by
throwing all of his cotton upon it.
III this is not done much Of the crop is
left insufficiently protected and suffers
what Is known to the trade as 'coun-
try damage"
On the other hand 1t Is pointed out
in q new publication Of the depart
ment, Bulletin 216. Cotton Ware
houses" that an adequate warehouse
system would enable the farmers 10
store their cotton at prices lower than
those charged for the same service
now, because the insurance rates on
cotton stored In standard warehouse
would be much lower than at the pres
ent time. Since cotton is regarded
as such safe collateral. the mer-
chant would be willing to extend time
TO the farmer il warehouse receipts
were deposited with him as collater-
al. The local bank would take these
receipts from the merchant as furth-
or accommodation, and the larger
bank. from which the local bank has
in all probability obtained the loan,
would also extend time. In this way
the crop cou'S Nc rrorkctcd gradual
iy and prices stabilized in conse-
quence.
Moreover such n system would tend
TO free the farmers especially those
of the tenant class, from the endless
chain of debt. 1t would not. of course,
end at once or completely the credit
system by which the supply merchant
sometimes obtains terest of from 25
to 80 cents on dollars worth of sup
plies. If. however, such cotton as
was not absolutely necessary to settle
accounts was stored and economy in
living practced, many of the more de-
termined growers should in the course
of two or three years be able to place
themselves on cash basis.
AT the present time the best ware
houses have been put up by factories
and mills foy their own uses and are
OF no service to the farmer. The own
ers OF small warehouses in which the
farmer can store his cotton are usual
ly losing money on the investment.
largely because Of poor construction
and correspondingly high rates Of in
The government investiga-
tors present a number of interesting
statistics TO show that in many cases
Ii is actually more expensive to put up
and operate an inferior warehouse
NA'oh piS VI StoHulIu utSlSH. TOT cN-
ample. In Georgia and North Carolina
the insurance rate is reduced about
so per cent by the use OF sprinklers.
Unauestionably. says the report, a
great saving could be affected by the
erection and proper equipment OF
modern warehouses;. Assuming the
annual crop to be 100000 bales, a
sufficient number OF such warehouses
could be constructed and equipped
with automatic sprinklers for $4,000. =
600 or less III all OF this crop were
to be stored for six months the saving
in insurance alone would be approx
mately $7.000.000. AS a matter Of
fact many of the existing warehouses
could he remodeled satisfactorily.
Tho htillatin