Lexington dispatch-news. [volume] (Lexington, S.C.) 1917-1919, 1918-07-31
& Issued a Printed Circular
Which Finally Reached New
York Bankers and Was Used
Against the. Passage by the
South Carolina Legislature Of a
Six Per Cent Legal Rate of In
terest.
charleston American.
Bv JOHN K. AULL.

ssof South Carolina want in the senate
of the United States men who under
stand the needs of the producers
the farmers and the laborers-or do
they want representatives of corpora
I, tions? With theprospects of cotton
CROP of between 15;000:000 and 16:
900 1000 bales this fall do they want
8 man there who is opposed to the
state warehouse system or do they
want friend of the systematic man
who while governor in the dark days
of the fall of 1914 when cotton was q
drug on the market ..'d financial
ruin stared the farmers and all Of the
state in the face. called an extra ses-
sion of the legislature for the purpose
of establishing the system in order
that the farmers might hold their cot
ton and borrow money on it at 6 PEI
cent-some of them notably the late
Senator Tilllman securing money on
heir cotton as low as 5 per cent
through tie system that fall and the
next spring?
DiaI's Circular.
Surely the farmers of South Caro-
lima do not want to send to the Uni
ted States senate at this time man
who in the fall Of 1915 issued, prin-
ted circular which whether with or
without his concent found its way to
New York bankers who were lending
money on state warehouse receipts
and which protested against the pas
sage by the South Carolina legisla-
ture of per cent legal rate Of IN
terest. That is what. Mr.. n. B. Dial
at that time in control Of a private
bonded cotton warehouse in Laurens
and now candidate for the United
States senate did. '
Mr.. Dial still does not take time to
state his own qualifications for the
OIuCS VI OAltSO StatSS SSloSOi GIN
as has been stated in this correspond
ence it is felt that it is only kind
ness that they should be stated for
him in order that he may devote his
whole time on the campaign to Will
fcation of Mr.. Blease who as COVER.
nor called the extra session of the
legislature for the passage Of the
state warehouse bill and who signed
the act which put the system into op-
Grafton and saved the farmers of
South, Carolina from the grasp Of
the cotton SPECTATORS.
DATE OF CIRCULAR.
The circular signed by N. B. Dial
referred to bears date October "a
1915.
The situation of the farmers of
South Carolina at that time will be re
called. The great war in Europe
and on the seas burst upon the world
in all its fury in August of 1914.
When the south'ss cotton crop that
fall went upon the market the price
bore down to 5 and 6 cents. Debts
were owing by the farmers the banks
were panicky for. fear of being called
by northern creditors and there was
general economic despondency ana
gloom throughout South Carolina.
Then came the extra session Of the
general assembly with the result sta
ted. State warehouse receipts be-
came liquid asset in the money mar
kets of the nation and farmer was
enabled to shove a bale of cotton a.
cross a bank counter secure money
at 5 and per cent hold his cotton
pay his debts and hope for the better
times which came. The influence of
the system reached far beyond the
borders Of South Carolina had stab
ilizing effect in all the cotton states.
At Critical Time.
In the fall of 1915 the situation
had been somewhat relieved and the
state warehouse system was becoming
firlmy established. Such banks as
the Guaranty Trust company of New
York accepted its receipts without
question. 1t was at this critical time
that the Dial circular reached New
York. It had an unsteadying effect
for short time which was overcome
for the reason that Senator McLaurin
then in charge Of the system went
personally to New York and explain
ed the exact situation down here in
Soutk. Gerolina. .e.:,... 49,
Was Mr. Dial at that time a true