The herald and news. [volume] (Newberry S.C.) 1903-1937, 1915-08-10
WAREHOUSE COMMISSIONER
WRITES TO PRESIDENT
Columbia Record, 9Th.

Senator John l.. McLaurIn, State
commissioner of cotton storage ware
houses, upon seeing the statement
that the federal reserve board would
assist in financing the cotton crop,
gave tne Record an interview sug-
gesting further that the United States
government, in pursuance of the prop
aganda for preparedness. take mil
lion bales of cotton, properly prorated
among the producing States.
Following the interview, Mr.. Nc
Laurin has directed the following let
ter on the same subject to President
Wilson:
n hills letter to the president, Mr..
McLaurin says:
'As you perhaps know, South Caro-
lima has been operating State ware
house system since last October. Very
valuable aid has been rendered me in
financing the warehouse receipts by
Mr.. Harding of the federal reserve
board. l note with great satisfaction
an Associated Press dispatch giving
instructions to the banks how to pro-
ceed witt, regard to the certificates.
81 have been in such close contact
with the cotton situation for the past
year that am going to venture sug-
gestion;
"The borrowing power of our cotton
is in proportion to the market price,
and if much cotton is offered for sale
in the open market, under present con-
ditions, the price is bound to be so
low tat we will not be able to borrow
enough to meet the debts incurred in
making the cotton 1t seems to me
that there are two very practical meth
DDS which might be employed to give
the price of cotton boost about the
time tat the crop is coming on the
market. This would fix the borrowing
basis, and enable us to tide over the
war situation.
First. l take it, from the state
ments that l have seen from Secretary
Daniels and others, that this govern
ment will soon begin to place herself
u0ol proper military footing, and to
do this will need large quantities OF
low grade cotton for tie manufacture
of explosives. This low grade cotton
is the heaviest burden that there is
upon the market, and, as business
proposition, it's purchase at present
prices would be a good investment,
and relieve the pressure on the bet
ter grades.
Second. 1t must be realized that
there is great dissatisfaction and a
s-arp division of sentiment in the
United States over the action of Eng
land in shutting off the European mar
kets from American cotton, and as
matter of diplomacy it would go far
in changing the trend of sentiment that
is setting very strongly against her,
especially in the South.
'.As a matter of finance, if, with the
pure. ases by the United States, Eng
land could corner the available sup
ply of raw material for gun cotton and
other explosives, sne would not only
provide for the future of the allies,
but hold Tremendous advantage over
her enemies.
"If reasonable price could be fixed,
say 10 cents, to the present holders
Of cotton, England and the United
would hold a monopoly in low grade
raw cotton witch they could manufac-
ture for war purposes or for future
commerce at a profit.
81 can not see how eit- er this coun-
try or England could lose anything IN
caking up large part Of the visible
supply of cotton at present prices
Both countries would be purchasing
supplies for war purposes, and would
not be open to the charge of valoriz-
ing commodity for political or otner
ends. 1 am of the opinion t1at two
million bales OF cotton taken up in
this way would relieve the situation.
'I am writing this letter for purely
weeks that too much agitation O. Tols
personal use, as l have felt for some
question in the press was unwise and
tended to increase difficulties instead
of relieving them.
"I have watched your efforts to
maintain the neutrality of this coun-
try, and admired the calmness and
wisdom with which you have acted.
Tn NV ;.liTnh1n Snnere ] have been do