Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1918-06-21
The State Warehouse.

nal welfare OF a people depends
more upon their material prosperity
than any one factor.
The south has a natural monopoiS
in the production OF cotton. which, II
fully comprrhcnd"d and u'iiiZ'n
would make her q dominating factor
In IN, commerce and the civilization
of the world. Cotton Is our one great
money crop; il is the cornerstone Oh
international finance. and the main
factor in the balance OF foreign trad''
II basalways seemed to mc that 1t was
wise craftsmanship and tru" patriot
ism to conserve it's profits and protect
the south in its monopoly.
The one great ambition of my NE
has been 10 devise "a plan OF finance
Lascd upon cotton which would MAKE
the. south rich and independent.
I'm the distressing times of l9l !,
this dream took the shape oi state
warehouse system. The purpoS" WAS
merely TO make cotton Il fluid asset.
like bonds and stocks. | submitted
the ulon To the Federal Reserve hoard,
and received it's unqualified approval
At a time when you could not hor-
rn,v n dollar on cotton in South Car
oliua, secured the backing oi Mr.
Harding. now chairman OF the Fed
rrT,I reserve board and we began l"
borrow so per cent OF the fac" value
of a warehouse receipt. Similar plans
were made In other states and th'
pricc of cotton began to advance. IL
never stopped until ii touched 30
cents, and II would De 80 cents n
pound now, II the Federal Rcscrr"
board had not quit discounting cotton
paper.
The price of cotton Is largely mat
ter of utilizing credits. Ninety per
cent of the business of this world Is
done upon credits based on products
Money is n mere measure in the eX-
change of values. Cotton has always
been basis of credit In anyhodys'
hands except the man who mad" It,
I was merely trying to make Il
credit in the farmers hands. with
cotton as a basis of credit only in the
hands of the middlcmcn, they can
take il away from the farmers when
ever they please. Whoever control
the ,xpansion or contraction Of cotton
credits. can control cotton prices'
Section l3 of the Federal Reserve
act is the key To the situation. 1t is
the only key.
II Is not generally known. but there
IL a provision there not only for dis
counting papers based upon tn" actu-
al cotton, hut also for paper based
upon credits that go into the pro-
duction of the crop.
With the proper machinery you can
discount rent notes. crop mortgages
and liens where the proceeds are to
bc used in the production of the crop
To do this. however. you must haN"
the proper machinery. This Is what
| am attempting to do. and will do II
| am given the power.
This country can hr transformed
from n credit into q cash country
Senator Mclaurin then explained
how MIR. Harding had authorized HIM
and Mr. J. \. Banks tn institute n
discount hank in connection with the
state warehouse. lie also touched ON
the insurance situation. lie said the
desire to complete these plans was
the only thing that made him willing
tc endure the summer campaign. He
did not want any office except for tn"
public good. lie had resigned as
warehouse commissioner with a two
year term at the same salary as the
governor.
Taxes.
The taxpayers and voters of this
state have rcn hulliCd and brow
beaten by Il bunch of prctcntious tin
horn political dcmagogucs until they
have gotten into the habit of stand
ing In line to have their pockets pick
cd. Most politicians figure that the
state owes them living. hut II sc
Il would he cheaper to pension them
Useless boards and commissions arc
created each year. because OF the
growing horde of spoilsmcn who de-
mand an extension Of the system rs
reward for services performed foi
the machine.
The wealth of South Carolina in ter
years increased less than so per cen,
and population 10 per cent. yet the
expenditures have increased 100 pei
cent. Now. all experts on taxation
agree that when taxes increase fast
er than wealth and population. an un.
bearahlc burden is laid on the pco-
pie.
No state. county or town officia
will admit that this condition is tn,
result of his administration. II Is not:
Il IL the system that piles up the OK.
pense account, which the taxpayer is
compelled 10 settle. All of them have
helped TO build up n spoils system
from the town to the congressiona
pork barrel.
a political machine office holdc,
who connives and intrigues with thu
machine to make places for the job
hunting wolves. who attach them
selves like harnacles to the politica
ship. Is just as dishonest as though
he reached his hands into the public
money hags and distracted funds fo
his own use.
There are various kinds Of robbers
They run all the way from the brut'
who knocks his victim down with ;
sand -hag. the porch climber who ad
ministers chloroform and painlessl.
extracts the cash. up to the smooth
polished representatives Of monopoly
who simply through form of law TAX
what they want. No less so Is tn