The herald and news. [volume] (Newberry S.C.) 1903-1937, 1916-01-18
The STATE WAREHOUSE
COMMISSIONERS REPORT
RECOMMENDS ELECTION OF COM
MISSIONER BY THE PEOPLE.
What the System Has Accomplished
Matters of Vital Importance
to the Farmers.
Special to The Herald and News.

synopsis Oh Tue annual 1SpOAC VI tAO
state warehouse commissioner, Senator
Jno. L. McLauren, to the general as
sembly.
Gentlemen of the General Assembly:
This is the first time that an annual
report has been made on this adVen-
ture in democracy, the state ware
house system. Last year when the
legislature met there had not been
time to organize, and the report only
covered a few weeks.
The object of the system is:
1st. To establish the character OF
the warehouse receipt as a collateral
for loans.
End. To cheaper the cost Of storage
and to localize it as far as possible,
keeping the cotton where it was grown,
so as not to deprive the community Of
an asset in the shape of the money bor-
rowed on the receipts.
3rd. To institute proper system of
grading cotton.
4th. To organize and maintain ma
chinery which will render it possible
to sell cotton direct from the farm to
the manufacturer.
Last March found the people of the
South in a position where it was al
most impossible to borrow money on
cotton. l went North, accompanied by
Senator ]. "A. Banks, to take up the
matter with the federal reserve board,
and with the large financial institu-
4ions in New York. Mr.. w. P. G. Hard
ing of the federal reserve board gave
me letters to six of the largest banks
in New York, a copy of which here
with submit for your information:
(Here Senator McLaurin cites the
letter of Mr.. Harding characterizing
the state system as model system,
and also the statement which he issued
upon. his return from New York as to
what he accomplished
Threatened Danger to 1915 Crop.
Upon the approach of the 1915 crop,
with the blockade of ocean transporta-
ton, and Sith surplus from the 1914
crop added to the new crop, it was
evident that unless something We're
done We would be in a worse condition
than during the previous fall. l took
the mater up with President Wilson
and other authorities in Washington.
The following letter from the president
explains itself:
President Expresses @Genuine Inter-
eS&n
The White House, Washington.
Cornish, N H, August Z, 1915.
My Dear Mr. McLaurin.
Your letter of August fifth has been
forwarded to me here and have read
it with genuine interest, finding it very
suggestive indeed. shall hope to dis
cuss with those who understand these
matters better than do the feasibil-
ity of carrying out your suggestions.
Sincerely yours,
woodrow Wilson.
Hon. John L. McLaurin, State Ware
house Commissioner, Columbia, S. c..
President Wilson gave Mr.. Harding
of the federal reserve board letter,
which was read in Birmingham, Ala,
and which vas widely published in
connection with the speech made by
Mr.. Harding. This was followed, in a
few days, BY statement from the Sec
ertary Of the treasury, in which it was
announced that sufficient funds would
be deposited In the federal reserve
banks to insure the holders Of cotton
being able TO borrow money on ware
house receipts at rate of per cent.
As to- the respect which the state
warehouse receipt enjoys, and the part
NnlCA u 0hS pddJ GU III SCS0AAAS '0AS y
per cent money for the farmers OF
South Carolina and OF the South, l
quote the following among the number
of letters which I have received:
(Here Senator McLaurin quotes let
ters of endorsement from the secretary
of the treasury and the National City
bank Of New York;
The South CapoliNa Bankers.
There are many patriotic bankers in
South Carolina who have given hearty
encouragement and support to the
state warehouse system, and in this
connection desire to quote the fol-
towing sentence from a letter written
to me by Mr. Ira B. Dunlap, vice pres
ident and cashier Of the National Union
bank Of Rock Hill, which is one among
a number that I have received along