The county record. [volume] (Kingstree, S.C.) 1885-1975, 1919-09-25
McLaurin Writes Mack King On
Cotton Situation.
Benneetsville, S. c., Sept. IL, 1919.

Bennestsville, S. c., Sept. IL, 1919.
Hon. J. Mack King,
: Anderson, S. c.
My dear SIR
Yours quoting from a speech
made in Anderson in 1916 as follows
Cotton went down first, it will be
the last to rise and remain up longer
than any other commodity" You ask
my opinion now. 1t is the same as
then expressed. In 1916 price fixing
was unknown as well as the threats
by war industries board In the long
run government authority cannot
permanently overturn ntural eco
nomic law. Ultimately the price OF
cotton will be fixed by the volume OF
money in circulation and the supply
and demand for cotton. As to wheth-
er or not the farmer will get the
benefit sure to come from the unre-
stricted operation of these laws de-
pends upon his intelligence and the
means at his disposal to carry his
cotton during the period of readjust-
ment through which We are passing
hope that the cotton association
under the able leadership OF Mr..
Wannamaker will help us. 1t is
complicated situation with which we
are confronted. 4,
The South has natural monopoly
in the production of cotton. Some day
we will comprehend and utilize 1t,
when We do our section will be a
dominating figure in World finance.
Up to 1914, our cotton crop was
the main factor in the nations bal
ance Of foreign trade, but it never
did. tie South much good except in
directly. When war was declared the
throne was usurped by war material
and food. The present situation is q
real struggle by King Cotton to re-
gain mis- lost throne. The price Of
cotton is largely matter OF utiliz-
ing credits. Up to the state ware
house development, cotton was q
good basis of credit in everybody's
hands except the man who grew it.
Now it is better credit in the hands
of the farmer, than anyone else. This
is a splendid basis from which to
work. It is not generally known, but
in Section 13 of the federal reserve
act, the farmer can discount rent
notes and crop mortgages as we'll as
actual cotton. We lack the proper
machinery to use these securities to
nav the expenses of the coming crop.
If we did this it would tighten the
load on the actual cotton in the
spring.
l sGm more firmly convinced than
ever in my life, that the development
of q state warehouse system In every
cotton state is the only effective So
luton of the problem. 1t was great
step to 60 as far as We did IN enab-
linz the farmer to hold his cotton,
borrow money and pay his debts, but
after all cotton is made to sell and
not to store. The middlemen are get
ting zoo much of the profits. In this
county they make as high as $4,000
Der hale profit on long staple. 1t
doesn't matter where the price goes
under the present system, the mid
die raen get more clear profit from
handling the cotton than the farmer
does from growing it. Ishoped to add
the direct sales of the State ware
house, but could not move one step
with out state insurance on stored
cotton and a bank in connection with
the system; those interested in max
ing money out of existing conditions
had sufficient political power to pre-
vent me from getting the legislation
that I needed. / refused to remain
commissioner merely to store cotton
and finance it.
Let US suppose, ! could have Sc
cured this legislation, what could be
done today.
The world is clamoring for raw
cotton. There are plenty Of ships to
carry it abroad, the only difficulty is
that Europe is unable to pay and
lacks the credit. There is no machm-
cry through which this credit can De
extended.
The rate of foreign exchange Is
prohibited. Gold for exchange mas
practically ceased to move from this
country for commercial purposes
We are being throttled by the avail
abe gold of the world being dump
ed upon us for war materials. The
pound sterling is normally S4.So1s
II = now around S4.20. This means