The herald and news. [volume] (Newberry S.C.) 1903-1937, 1917-01-19
warehouse receipts upon the liberal
plan that is now pursued.
Wilson Backs McLaurin.

Wilson Backs McLaurin.
In pamphlet published by the
State warehouse in October. 1915, are
some endorsements by the high off,
Gals in Washington, but what is more
interesting that that is the means by
which this big advance in cotton was
begun in August, 1915. Cotton had
been selling down around eight cents
and it was plainly evident to anybody
that with transportation restricted
by submarine operations and with 4
large carry-orer from 1914, that un-
less something was done to advanc..
the price of cotton, so to establish a
high borrowing basis. that cotton was
likely TO go as low is it did in 1914
ne idea Mr.. McLaurin had was thai
ii the farmers could borrow ten cents
pound on their cotton, that it would
never go under ten cents, the cost c.
production. In order to get this start
ed he wrote the following letter to
! President Wilson, who at that time
was at Cornish, y. H. (See pamphlet
marked A.. Mr.. Wilson replied to
! that letter, saying that he you'd take
1t up with people that were better
posted than he as soon as possible.
>'1la went al once to Washington and
TOOK the matter up with Mr.. Harding.
Mr. McLaurIn was also present and
the result Of that conference was that
President Wilson wrote to MIR. Hard
ing letter which was to be read in
speech that Mr.. Harding was sched-
uled to make at Birmingham, Ala.
Mr. McLaurin had set forth the high
interest rates and difficulties under
which the farmers labor President
Wilson in his letter expressed great
surprise at these statements and said
farmers should have money at six
per cent from the banks, who were
dlscounting the note at three Der
cent, and closed the letter with these
| remarkable words: LET the farmers
| 1eeI free to exact from the banks
that which they have a right to ex-
| pect.' This was the beginning OF the
great fight against the warehouse sys-
! tenn and Mr. McLaurin in this State.
IL came like thunderclap to banks
VINO had been charging from eight
! 10 thirty per cent that farmers were
i TO get small loans at six per cent
But this was not all; Mr.. McLaurin
lound that the rates of insurance were
SO high that people could not afford
TO store cotton. He found that the
rates OF insurance on the same ware.
nouse IN the country exposed to the
same risk was $3.50, while It was
only S1.7o in a town. He did nor
start fight on insurance agents in
South Carolina, he simply went to
;! ne" York and through the same men
tnere that he hod induced to finance
the cotton receipts, got the insurance
! rates greatly reduced. AS he savs
IN the report which was laid on our
/ oesks few days ago, the fight ,yas
not begun on him because he secured
a low rate, but because he told il
lake the report of 1916 if you wish
10 see the basis Of the fight that is
0elng made today in this house.
AAN1tc 1utcTcStS Uake War.
/ In addition to that there was a con.
certeo attempt With its headquarters
IN Georgia and among standard ware
mouse people IN this state to force all
cotton to be stored in standard ware
houses. l want to read from the re-
port OF 1916 what Mr.. McLaurin said
On THIS SUBJECT. (keaus report OF 1916.
page 35).
/; NOW as to the endorsements, read
i what the secretary of the United
. H...'-s' ~. u. -M--auov, naS " Sa,. a.
also on the same page a letter from
! IHe piea4uonL ...o uut.u .,ra.r.
also in the letter l referred to of Mr.
Harolng, where ne says that the ooulu
Iafollna warehouse law is in advance
! OF anything luat mas ueen a.,c...
also as to what it is doing in South
Carolina, / would refer you 70 the let.
ters published on page ~, 1910, re-
port, IN reply to statement In one OK
TIE daily papers tnat the warehouse
Mas ol no value to IT,. small farmer.
and tenant farmer who has been aole
To hoId his cotton, and that the small
! larmer and share farmer this year
nave gotten the top OF the market
Ior his cotton, because OF the move
ment put into operation turougn ILL.,.
STATE warehouse system.
McLaurlH Heart In Kerk.
! Now, | do not believe tnas Mr. Nc
Laurln wishes to abandon the flgnt,
when he has inaugurated in enis
State. l DeEeYe tnat tne state watc-
nouse system is near and dear to his
heart and that he is probably Tue
"oe. 4"a-lued mau III Suuth Larollu
TO carry it out, and that it would be
great misfortune to this State ir he
| would prefer to resign before ne has
compieted the system, according to