The herald and news. [volume] (Newberry S.C.) 1903-1937, 1915-06-29
CONCERTED ACTION TO
HANDLE COTTON CROP
THE STATE WAREHOUSE SYSTEM
BROADENING IN SOUTH.
Far-Reaching Measure in Alabama
Conference Probable Among
Several States.
snecial to The Herald and News.


sue of fractional receipts which could
be used, in times of stringency, to
perform the local functions of cur
rency, and the measure has the en-
dorsement of high inanciers. The
South Carolina law is elastic, and
State Warehouse Commissioner Nc
Laurin in an interview given to the
press, states that in his judgment it
tas sufficient breadth to carry out the
general plan whioa may be adopted by
the States of Georgia and Alabama
this summer, until the South Carolina
legislature meets next winter. The
State warehouse system is taking root
throughout the South, and it is prob
able that conference will be ar
ranged some time soon to agree on
a concerted line of action in regard
to bills now before the legislatures
of other States.
In a careful analysis of the general
situation in the South, in connection
with the warehouse system, Senator
McLaurin has given out this import
ant statement:
'The near approach of the market
ing period for cotton makes it neces-
~ -sary for us to consider the situation
4aPn order not to be confronted with
conditions similar to last fall. The
legislatures of Georgia and Alabama
will this summer consider the pas
sage of State warehouse laws. We
must find some means to market our
cotton gradually. 1t will be neces-
sary to force the cotton sold to bring
fair price, because TIE borrowing
power of that which we must hold
will depend upon the price of the cot
ton marketed. The condition fully
carries out the predictions of those
of US who advocated total elimina-
ton of the cotton crop for 1915, al
though the consumption has far ex-
ceeded the estimate, on account Of bhe
new uses found for cotton by reason
of the war. There was on hand June
1st 1,79S,965 bales of cotton in man
ufacturing establishments, and in in
dependent warehouses 2,441, 1873. This
makes a total of 4,24O,O98, not taking
into account the cotton on the farms,
which is more, perhaps, tnan may be
thought. The worlds production, it
is estimated, will be around 2S,00O,-
900 bales for the year 1914-15. 1 have
no figures of actual consumption, but
1 note that there are more spindles
in active operation than there were
this time last year, and from that I
deduce that the consumption of cot
ton will be around 22,000,00O bales,
which will certainly carry over, not
counting the cotton that has not come
into sight, around 100000 bales.
"The lines are being tightened every
day on tce shipment of cotton. Lon
don papers are trying to force Eng
land to declare cotton contraband OF
war. England and Italy are the only
two countries now to which cotton
rcan be shipped freely, Both of these
countries have a plentiful supply OF
cotton. The stock in Italy is enor-
nous, because We had been supplying
Germany with cotton through Italian
ports, and when war was declared
Italy seized the enormous stocks on
hand Tie supply in England is larg-
er than ever before at this season Of
the year.
'The financial situation IS of even
more importance as shown in the de-
cline of foreign exchange. Interna-
tional trade is really nothing but bar
ter. Gold is merel! the medium adopt
ed by the nations to agree upon
basis for the exchange of products.
Exchange on London in normal times
is about S4.87 of American money for
pound sterling. Sixty-day bills are
now being drawn around s4.74. The
crop of wheat is the biggest on rec
ord, and within two months our cot
ton crop will be ready to market. 1t
is estimated that the American wheat
and cotton now on hand available for
export would amount to $750,000,000,
and there is no way in the world Of
selling this abroad except through
the medium of TO 'eign exchange. Now,
it is patent to anybody that, with