The Dillon herald. [volume] (Dillon, S.C.) 1894-????, 1919-02-20

cotton and also discounts upon notes
secured by mortgage on crop in pro-
cess Of production. The two things
are entirely separate and distinct, Mr..
w. P. G. Harding gave Senator Banks
and myself every encouragement to
organize bank in connection with
the state warehouse for this purpose,
he gave us letter to the governor
of the Reserve bank in Richmond, but
we found those in authority in this
state bitterly opposed to the establish
ment Of this bank. as well as to state
insurance. resigned because could
go no further and hope to be able
to make the farmers understand me
so that they would give me their
support. If every state had its ware
house system and state bank the
spectators would not dare run the
risk Of selling the cotton market be-
low 20 cents when it cost 80 cents to
make 1t. Just so long, however, as
the sources Of finance are entirely out
Of the farmers' hands We will be
butchered and the profits made one
year swept away next year, as now
happening. AS 'whofe- the hankersI
OF South Carolina disapproved Of the
state warehouse system until we be-
gan to get money on the receipts
and deposit it with them, then they
were loud in their approval until we
demanded 6 per cent interest. They
view state insurance and bank such
as describe as an untried revolution
ary project; few Of them have ever
studied the subject and know abso-
lutely nothing about it. 1t Is not an
untried experiment. Such banks exist
in several of the Australian states.
South Australia has had one in op-
Grafton for thirty years, this state
has population about half the size
of South Carolina. The bank has 189,
600 depositors, averaging 5000 each.
Similar banks exist in German, Italy,
New Zealand, nearly all Of the Bri-
tish colonies, Sweden, Norway, Den
mark and Holland. believe that one
such bank in every one of the cotton
states with the proper warehouse sys
TEN would accomplish the following
results:
First. 1t would stabilize the cotton
market and fix the price in the south,
instead of in Liverpool or worse than
that, the New York Cotton Exchange. |
Second. BY acting as a depository
for all state funds and the reserve of
other banks it would keep the money
circulating at home. which is now
held up in New York and elsewhere. /
Third. 1t would stabilize the finan-
cial system in each state and not |
make us dependent upon northern !
money centers. 1t would have a ten7-,
dency to make uniform interest rates
and give small borrowers equal op- !
portunities.
Fourth. This would promote agri-
culture and develop industries.
I see some advocate a twenty five
million dollar bond issue to build
roads. I favor good roads, but this Is
like trying to lift yourself over the
fence by your boot straps. 1t would
be more sensible to issue two mil
lion dollars and have a complete sys-
tenn Of financing and marketing our
cotton crop, so that We can build and
pay for roads out OF our current pro-
fits.
In conclusion let me say that ev-
cry man that will keep his cotton
will be amply rewarded by the in
crease in prices. Preparations are now
being made to extend large credits
to European countries. Belgium has
just been loaned one hundred mil
lion dollars. The ten billion or more
loaned the Allied countries was not
actual money, but mere credit to
buy American products. This was why
there had to be government price
fixing to keep prices from going out
OF sight. Cotton went down in 1914 .
to 6 cents per pound and there was
no big rise until a syndicate of bank
ers in 1915 loaned five hundred mil
lion dollars to England and three
hundred million to France. Prices
will begin to soar as soon as these
credits are arranged, not only with
the Allies, but with our former ene-
mics. Hold your cotton and "Wait
on the Lord.'
Yours respectfully,
JNO. L. McLAURIN.