The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1916-09-20

fetaru what 1 ann trying to make III.
Eilfe, work.. ss,s5
"rhe State warehouse system has.
I Il. Demonstrated how easy It is t,
transform cotton into negotiabl,
security; E n
-. 1t has established q new fac
In economics. to wit, that you cal
valorize products within certain
limits by giving them special privi.
ieges as "a collatepal. 'H
%. After -the failure of tho Wade
plan, itspointed out, the true wa,
to make effective the federal reserve
law on commodity loans. l have on
Ale In this office letters from the
president of the United States, the
secretary of the treasury and the
president of the federal reserve board
In Washington, which amply confirm
these statements. silr4 80 Z
if we never take another step,
the State warehouse law has done
more for the people than all Of. the
self-seeking. mOuthy politicians in
south Carolina have accomplished
since 1876. If felt that my pres.
ence here was an absolute necessity.
| would smother my natural feelings
OF Indignation and continue to sacri.
nee myself, but I think that I now
have the system where q good, sensil
ole man can run 1t upon it's pres-
ent basis Of furnishing a collateral.
II there Is any further atteapt to
develop M. stand ready as an. out
slider. to do alk In nay power to as
sist whoever may be in charge. What
1t needs now is: So ,s, 4ac
IL. Licensed graders.
"2. Direct salcs. 3
"s, To become self supporting.
The Insurance. properly handled
by the legislature. can be made to,
supports the system and furnish aid
In establishing direct sales. Few
realize the tremendous profits made
upon insurance. We have paid out
around $4,000 in premiums; while
he losses during that time amount to
only &1.1s7. The system should be
authorized to carry. at first. as much
IS l,Oo0 bales In one place, and a 1
'eserve fund established from the.
premiums to meet losses. Cotton in |
,xcess Of 1000 bales could be re-
insured on the same plan that am
It now Or the State might
become co-insurer and divide the
premiums with the same compan MES
hat are now carrying our cotton or |
'thers with which arrangements
night be made,
There is one thought in connection
nth licensed graders to which I call |
,our attention. At the time the State
warehouse system started. there was
q federal law upon the subject Of |
Erades. II we adopted the standard
Tadea ok, the department Of agxicul-
sa sAst - = ~ 81
itber through federal or state law, /
With proper supervision the South [
carolina grades would soon be firmly |
and the certificationa Of
hese graders make the receipts pass |
current in the money markets. or with |
he federal reserve bank. Then the
portion Of the act guaranteeing grades |
Ind weights could be repealed, thus |
'elievipg the State of this contingent |
liability. 1t was necessary at the time.
n order to get the. State warehouse
system started, but If this other plan
kill work there is no need for the
state to run this chance, II the receipts
will pass without it.
There is another thing: I think
that the members Of the State Ware
house association should establish O
farmers bank to handle our receipts,
and to accommodate the small State
banks and enable them to compete. in
receipts. with the national
banks. I do not mean that this bank
should bid for deposits, or do CONNER
cial business In any way at all, but
merely handle paper eligible for dis
count at the Richmond bank. If tho
small State banks were thoroughly
alive to the situation they would see
that this was done.
"NOw. wish to say word about
the price OF cotton. We are in the
midst Of the greatest imitation of mon
ey and credit that has ever occurred
In the history Of the world. It is due
to the war. think that perhaps this
has had as great an effect on prices as
a short crop-I will try to put 1t clear
<1,Hx %,