The Anderson daily intelligencer. [volume] (Anderson, S.C.) 1914-1915, 1915-01-09
M'LAURIN THINKS
CAN FINANCE CROP
Senator Tells Instance of Banlr
Taking Six Months Paper on
Cotton Fer Re.Diseount.

Senator McLaurin, in the extra sea-
sion Of ths Legislature, said In q speech
TO the Senate that under the 'heE cur
fency Jaw ,agficulturai paper, With
Slate Warehouse receipts az q icoliat-
erale RouiG be discounted By the fSdJ
eral reserve bank ii Ricifmotd, for
stx month ana could be renewed E6r
smother SIX months, and that I'll ere
vas amply P5ysr, through this cafi-
aei. 70 pros.ae funds 70 iifnnce tie
entire cottoG crop. sffi d public stats.
Inett plaae AFTER b trip to WashinEtou.
Ter the purpose 0f eoa afsT fsTi ihE WITH Tie
FEDERAL reserve board, he uiadel IAN
Ianalysls OF this ssctioa jof the act and
said that II was -'hp ato the bSnks."
fs5 SsIiep upon .1pe natlAa co hEree
upon o. dehntte course In this respect,
directing their nttehtion 10 the fact
that the central board at WaShingtoh,
u necessary. could accept such paper
without the Endorsement OF q member
Denk. II this were 60ne, discounts Of
taia character OF paper would not
90 charged up against the capital
stock OF the bank.
Senator MoLa1rin' said yesterday
that there were two distinct elasses
OF paper having separate channels.
one not exceeding four months. and
limited to 10 per cent of the capital
stock and surplus, this being the
terms OF the act: the. other 10 not
limited tn any way by the act itself.
but Under o regulation OF the board,
they limit II to 25 per cent of the
capital stock, but cay that this limit
Will be increased from time to time
a. contit ttons may demand. @ -
II DO not know that any of this
six months paper has bee8 presented
exSept, As hereinafter stated" said
Senator McLauyin yesteriiay.i every
banker that I appEoached insisted that
ss asnss sSala only RSvpadls the FOUR naohths
East wessai drafted a gs5fm;t,fIIs
note which I6liia sshoH,. aSTpfovided
by the terms of the currency law, that
It was for Sg fictitural purposes hero.
tofore used In the ,productscn Of the
cotton enumerated. in The receipt,r
continued Senator McI.aurin. eThe
note was drawn for $500 and there
were Is bales OF low grade cotton
enumerated In the state warehouse re-
ceipt, which We estimated meant q
cents o pound, middIing basis. The
note was given 90 the Peoples Nat
ional bank In this city. which very
ninuiy CouueutSu 10 make the fronBlc-
tion.' u was sent forward, in the ord
mary course Of tusinesa, without d
word Of explanation, and In the same
way the money was pieesd to the
credit Of the Peoples National bank,
and by Il Transferred 20 the man
who owned the, State warehouse re-
ceipt. y. t,.s
+ t"i ana making fliis public to shos
what We can do by putting c.irseiyes
IN poattlSn to- q BE advantage os the
facilities afforded" /" said SenRtor Nc.
Laurin. The Peoples National, bank
tndorsea this potes. but if the general
aacersity were made apparent ato the
central board In Washington there isI
90 reason Why the credits now looked
up IL tho sNsk esaount a. cotton 6a
storage ii South Carolina should not
be- releaseg. OF course one bank or
two OF thteA banks. can not relieve
the situation. but if aii act together no
one need tell me that it can not he
done. Such action would enable the
farmers 10 Ray their debts ana coz.
tlnue 10 hold their cotton. So that shs
advafco ia ptice which Is now on viii
fafr,fsrI