The Anderson intelligencer. [volume] (Anderson, S.C.) 1914-1917, 1915-01-12
M'L.AURyN THINKS
CAN NFINANCE CROP
Senator Tells Instance Of Bank
Taking SIX Months Paper on
Cotton For Re-Discount.


Senator: McLaurin, in the extra ses-
sion Of the legislature. said In speech
to the Senate that under the new cur
rency law agricultural paper. with
State warehouse receipts as collat-
eral, would be. discounted by the fed
eral reserve bank in Richmond. for
six months. ana could be renewed Tor
another six months, and that there
was ample power, through this can
mel, to provide funds to finance the
entire. cotton crop. In q public state
ment made after "A trip to Washington,
for tho purpose Of comforting with the
federal reserve board. he made an
analysis OF this section OF the act and
said that IL was sup to the banEs.=
He called uEoE the banks tc s5Pee
upon 9 definite course in this respect,
directing their attention to the fact
that the IceutFli. board at washington,
II necessary. could accept such peper
without the Endorsement of a member
bank If this were done, discounts OF
this character Of paper would not
be charged up against the capital
stock OF the bank.
Senator McLaurin said yesterday
that there. were two distinct classes
OF paper having separate channels,
one not exceeding four months. and
limited &c &c pc. csl: c: the canitai
stock and surplus, this being tho
terms Of the act;,: the other is not
limited IN: any way by the act itself.
but under a regulation CT the board.
they limit it to z5 per cent of the
capital stock, but say that this limit
will be increased from time to time
as conditions may demand ~
Il do not know that any of this
six months. paper has been presented
except as ,hereinah cr stated" said
Senator McLaurin yesterday. Every
banker that I approached insisted that
he could only handIet the four months
paper
note which would show, as provided
by the terms OF the currency law, that
It was for AGRICULTURAL purposes here
tofJre- used in the production hf the
cotton enumerated In the receipt" I"
continued. Senator McLaurin. "The
note was drawn for $500 and there
were 18 bales of low grade cotton
enumerated in the State warehouse re-
ceipt which we estimated meant z
cents q pound. ,middling; basis. The
note WAS given to the Peoples Nat
ioDal bank in this city,.swhich very
hiuutysCetuS6ntcu 10 make Tue IfauHaC~
tom 1t was sent forward, In the ord
mary course OF business. without d
word OF explanation, and I'm the Same
way tie money was placed to the
credit o. the Peoples National hank,
and by TT transferred 4 to !, the man
who owned the State warehouse re-
celpt. .sei;st.,S. 81
~ am making this public to show
what we can do by putting ourselves
In position to take cdvnntage Of the
facilities afforded" said Senator Nc
Laurln tThe Pe0Yie'a National bank
Endorsed this note. but II the general
necessity were mnde apparent to tho
central board H. Washington there Is
no reason why the credits now looked
-p In the vast s:.sS;1:.;ss s:.sS;1:.;ss 1s S1ott.xoii cotton On
storage In South Carolina should not
be released. OF course one bank vr
two aorj three banks, can. not relieve
the situaton, bnt it, all act together no
one, need tell me that It can not be
done. Such action would enable the
farmers to pay their debts S6hd CON.
tinue TO hold their cotton, SO that The
Advance In price which is now on VIII
be n1aintaihed., 81 s i..l
b. q -. =. ... y, sssyift