Cheraw chronicle. [volume] (Cheraw, S.C.) 1896-2005, 1916-09-21
McLaurin to Resign
His Warehouse Post

ID ~ pC pSltSA liah, ~
verts to his primal instincts.
Il am interested i'll the material
progress Of South Carolina. l be-
ueve that good government and
civilization follow in the wake Of
prosperity. 1t matters not about me;
Blease and Tillman are minor incl
dents about which l care naught
politically, except as they further OF
retard what 1 am trying to make my
life work.
The State Warehouse system has:
Il. Demonstrated how easy it is to
transform cotton in tOAeotiable
security.
-. 1t has established a new fact
in economics, to wit, that you can
vAlOrize products within certain
limits by giving them special privi-
legeS as a collateral.
''3. After the failure Of the Wade
plan. it pointed out the true way
to make effective the federal reserve
Jaw on commodity loans. l have on
file 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.
Benefits of Warehouses.
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 l felt that my pres
Ince here was an absolute necessity
would smother my natural feelings
of indignation and continue to Sacri-
flee myself, but l think that 1 now
have the system where 4 good, senSi-
bic man can run it upon its pres
ent basis of furnishing collateral.
If there is any further attempt to
develop it, l stand ready as an out
slider, to dc all in my power to as
sist whoever may be in charge. What
1t needs now is:
Il. Licensed graders.
'.2. Direct sales.
- TO become self srGjrert:ng.
The insurance, properly handled
Dy the legislature, can be made to
support the system and furnish aid
III establishing direct sales. Few
realize the tremendous profits made
dpon insurance. We have paid out
around $4,000 in premiums, while
The losses during that time am )unt to
only $1,19T. Ih: S:Slem Ii 'cld be
authorized 70 cary, at first, Us much
as 1000 bales III one place, end
reserve fund established from the
premiums to meet losses. Cotton in
excess Of 1000 bales could be re-
insured on the same plan that l am
working it now or the State might
,ecome cO-inSurer and divide the
premiums with the same companies
that are now carrying our cotton or
others with which arrangements
| night be made.
Licensed Grading.
There is one thought in connection
With licensed graders to which l ali
our attention. At the time the State
warehouse system started, there waS
10 federal law upon the subject of
:radeS. If we adopted the standard
TaGeS Of the department of agricul-
IRE. and saw that they were enforced,
,ither through federal or State law.
With proper supervision the South
'arOlina grades would soon be firmly
established. and the certificates of
hose Graders make the receipts pass
urrent in the money markets, or with
hr federal reserve bank. Then the
,ortiom Of tn" act @uarantccin" grades
nd weights could he rppca cd thus
relieving the state of this contingent
liability. 1t WAS necessary ut the time.
>, order f" ~"t the State warehouse
;v>tcm started. hut if this other plan
ill work there is nu need for the
state tn run this chance. if the receipts
,l piss without il.
There is another thing: | think
hat the members "f the State ware
house association should establish Il
| farmers bank to handle our receipts
and to accommodate the small State
,dnkS and enable them to compete in
'i$roumt.m@ receipts. with the nationa!
banks. | do not mean that this bank
>iau'd hid for deposits. or do CONNER
.ial business in any way ut all. but
merely handle paper eligible for dis
,ount at the Richmond bank. If the
small State banks were thoroughly
alive to the situation they would see
that this was done.
On Cotton Prices.
"Nuw. j wish TO say Il word about
the price Of cotton. We are i'll the
midst of the greatest imitation of Inon-
~ and credit that has ever occurred
in the history of the world. 1t Is due
to tha war. think that perhaps this
has had aS great an effect on prices aS
7 short cror--I will try 10 put 1t clearly
81 that uur farmers can understand
the first step Of the allies WAS t"
,r.l.r.. = moratorium. Then when the