The herald and news. [volume] (Newberry S.C.) 1903-1937, 1916-02-15
SENATOR BANKS ABLE SPEECH
Reviews tie Work OF the State Ware
house System in Address to State
Senate.
Special to The Herald and News:

Columbia Feb. l4.-ln the discus
sion of the Beattie-Laney graders
bill, Senator J. Arthur Banks, of Cal
houn coun.y, took occasion to give to
the State senate review of the State
warehouse system, and graphically
pictured the wonderful results which
had been accomplished not only in
South Carolina but throughout the
entire South, the benefcent influence
D. the system he said, having radi-
ated to every farm in the South"
Senator Banks supported the state
warehouse idea when it was first ad-
vanced by Senator McLaurin; he lent
ais EFFORTS 10 the passage OF the bill,
and he has consistently and ably be-
friended the system since its estab-
lishment. 1t was he who accompanied
senator McLaurin TO the money cen
ters to make arrangements for financ-
ing tue State receipts and establish
inc tneir character; his own ware
house had been placed in the system
at the beginning, and in his address to
The senate he spoke not only with a
clear conception of the general scope
of the warehoues idea, but with an
intimate and personal knowledge of
tie details of operation; of the slow,
- .-2,::::..-. the Insurance trust and
corporation interests, and Of the slow,
..re steps towards low insurance
late and low interest charges.
The most striking thing about tne
ate warehouse system to him, he
said, was the ree<aation Of the possibil
tiles of work for the-common good by
an individual who gave of his gifts OF
mind and heart. John L. McLaurin,
he said. had that rare combination OF
tie brilliant imagination with the
ability to put his dreams into practical
{ ,eraton, and VIII a Singular devo-
ton to the common good.
He showed how one Of the most Sc
r.ous obstacles to he organization OF
tie system was the unreasonable rates
of insurance imposed upon country
cotton by insurance companies IN a
..ide-bound combination, with a rate
G. three and one-half per cent. pre-
vailing. and with no possibility OF
breaking into the combination by in
G:vidual effort. But the genius of the
State warehouse commissioner finally
succeeded in securing a $1.5S rate,
wi,n pro rata cancellation, which
made it possible for us to carry our
cotton through the State warehouse
system, in our own warehouses, on
our own farms. at one-third Of the cost
of carrying the cotton under the old
system of public warehouses-in 9TH
er words, one dollar bale a year, In
stead of three dollars bale year. "
After the insurance feature was
worked out, he continued, the problem
10 be solved was to get money al rea-
! sonable rates to finance the cotton.
Money was very scarce in the South
at that time, and even those OF US
who we're best situated were unable
to turn our cotton into liquid asset
by reason of the fact that we could not
secure the money needed even If We
paid as high as eight per cent. for it.
The State warehouse commissioner,
who had made a careful study Of the
Federal Reserve law, conceived the
idea of that law which seemed to
guarantee eeyry citizen of the United
States a sufficient amount of money,
upon reasonable rates, to conduct a
legitimate business, and he made an
appeal to the Federal government for
relief upon that plan He and l to-
cether. in his office. went over the
situation. and decided to write a let
ter to Mr.. W. P G. Harding, OF the
Federal Reserve board, asking mis- as
sistance"
Senator Banks paid tribute to Mr.
Harding as an official who had proved
his devotion to the interests of South
ern agriculture. I'VE went on to
Washington and went over the situa-
ion wiah him, and ne gave us let
ter of introduction to the biggest
financial institutions in New York.
which letter l Want to quote in full.
Here Senator Banks read the letter OF
Mr.. Harding in which the system was
characterized as a model system. IN
addition to this" he said, Senator
McLaurin wrote letter to the presi-
dent of the United States and enlist
ed his interest in the cause. He then