The herald and news. [volume] (Newberry S.C.) 1903-1937, 1916-05-23
M'Lauri11 Discusses
Action of Convention
Declares Some Delegates of Democratic Council Were
"Duped and DeceiOed'' 80 Commissioner Undecided
to Method of Carrying Principles of Ware
house System to People.

following statement:
TO the Farmers of South Carolina:
In consequence of the action OF
the recent State convention in declin-
lag to permit the State warehouse
commissioner to enter the Democratic
primary this summer in the interest
of the warehouse system, l am re-
ceiving so many letters from farmers
throughout the State asking for al
expression from me that it is impos-
sible for me to answer them all, and
it is in reply to them that l am max
ing this statement.
Broadly and briefly stated, under
our present financial system, the bus
iness interests of both town and
country are at the mercy of concen-
trated wealth. 1t acts as a unti; the
people act as individuals.
Until the federal reserve law,
money and credit were under the
control of knot of conspirators, VINO
used their power to expand or con-
tract the currency so as to enrich
themselves at the expense Of the pro-
ducers. The bank reserves were con-
centrated in New York and constl-
tuted that vast fund of "call money"
which fostered tremendous specula-
ton in products; controlled trans
portation, locked up credits and
made money panics e part Of our
financial system. 1t was the fruitful
mother of usury, which, through the
ages, has enabled he drones to de-
YOUR the workers.
To liberate the producers, the new
currency law must have for its ex-
preston the warehouse. If cotton
values are stabilized, then cotton
gamblers are destroyed.
Cut Out Middieman.
If the federal reserve system rec
ognizes warehouse receipts and de-
crees per cent. money, then the
usurer can not loager ply his trade.
Hhe central bank now discounts for
the member bank at 8 per cent. It
only leeds a little more legislation to
deal direct through the State ware
house and thus cut out the ploft Of
a useless middlemRn.
If the product of land, cotton, is
converted into fluid asset, why not
the land upoa which cotton is grown?
Then mortgage companies and other
professional Shylocks wiR find their
occupation gone. To find employment
for all the hidden boards Of money,
1t must seek investment in COM
modify paper, land bonds or indus
tril enterprises, which will place
labor in greater demand. Small banks
will be On an equal footing with the
big distributing banks. Small busi-
ness men will have the same banking
facilities now enjoyed by the captains
of finance.
With the federal reserve banking
system, cotton has become a liquid
asset, and the last 12 months has
proved beyond any reasonable doubt
that cotton can be yalorized by its
use as a collateral as readily as
stocks or bonds.
If cotton is ralorized by use as a
collateral, then Immediately crop
mortgages assume a new basis of
credit and the tenant and share
cropper are placed in more inde-
pendent position to defy the chattel
mortgage robbers.
Hidden Forces.
These are the hidden forces direct
ing opposition to the development OF
the warehouse system and denying
a full and free exposition of its prin-
ciples before the people.
know that factional lines were
drawn in the State convection to keep
me from discussing these questions.
/ know that men who believe in me
and my work voted to cut me out
of a legal right and trampled under
foot the law of the State.
They were duped and deceived.
The unqualified Endorsement of the
convention proves this, but the dia-
bolical cunning of the selfish in
terests, who, when Manning would
not obey their behests on the mill
strike and the anti-compact bill, mis-
led and brought out Cooper and have
now double-crossed Cooper and gone
hack to Manning in consideration OF