The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1919-12-06
Affiliated With Plan to Export
Staple
soNE OPPOSITION
DEVELOPS
Institution to Have 100000
Capital-Bankers Offended,
Some Members Hint.

Columbia, Dec. 3.---Af;er coDsidtt.-
able discussion and somewhat positive
opposition, the South Carolina Col
ton association here yesterday after,
.lccn voted 20 establish d cotton bank
and export corporation with pro-
posed capital stock of S2.G00, Geo. TIE
object of the organization is not only
TO finance the farmers and enable
them TO withhold distress cotton from
the market, but also to establish for
eign correspondents and to take care
of foreign shipments Of the staple,
50 as to enable buyers from abroad
10 deal directly with the producers.
L. u. Jennings OF Sumter took the.
floor and his remarks caused sconsid-
cradle opposition to crystalline. Mr..
Jennings emphasized that the pres
ent sttac and federal banking facili-
;:es enabled the farmers+thiS year ITO
withhold from the market all the,
cotton they desired to hold. The only
reason any man sold his cotton this
fall was because he wanted to sell.
Mr.. Jennings wanted TO see anything
done that would mean easier and
cheaper money for the farmers, but
the plan proposed appeared to be only
an extension of the present banking
facilities If this We're true, he saw
no reason why the farmers in each
county should not heiDSss2toz increase
the stock of the present banking
houses
The proposed bank would. have to
cpcrate under the existing banking
laws, to conform 10 the same requirel
ments and he could see no possibility
OF gaining the great advantage the
promoters Of the idea were advancing
# the bank would finance the distress
-eotee.r- .,,aerfev-w>ut,f5af .h:sve~to cufYe
from New York or the federal 'resery
system, just where the other banks
draw from. The two things the cots
ton association ought, to undertake to
90 were to build warehouses adequate
to care for the crop and the MEM
bers of the cotton association thea
hold on to their product until the
price advanced to the agreed figure.
L. 7. Guion Of Lugoff. one Of the
men of the Sta e, also wanted infor-
nation as to the feasibility Of the
plan. Could this bank get a greater
reserve to take care CT the cotton
than the existing institutions coulds
He also wanted to know If the cor
poration could guarntee to. export cot-S
ton.
These statements drew some corn
ment as to banks OF the State taking
offenSe at the action OF the association
in cutting loose from the existing ln-
stitutions. w. A. Stuckey Of Bishop
Vile then made the suggestion that
the association agree to- clear its bus
mess through one Of the large bank
ing houses of the State. after the 10
cal banks had approved the loans.
Such a plan would still retain con-
necticn with the bankers and business
men Of South Carolina who have
Been standing 81. rarely behind the
cotton growers this fall in their ef-
forts to procure better prices tor
their commodity. The idea. however.
was favored by a majority of the
farmers present.
J. Skottowe Wanramaker, retiring
president Of the South Carolina Coz
ton association and president of the
American Cotton association. appoint-.
cd the following committee to- work
out tic details of the proposed in
sti;u ion: +. Hart Moss, Oransahur%.
chairman: T. d. Bates. OrangeburS;
John l.. McI4aurin, Re ttsville; u.
y. W~annamaller ST Ma Sws;; r. I.
Manning. Sumter; L. G.. Holleman.
Anderson; 3. c. Matthews. Newberry;
A. J. w. Perritt Darlington; D. *.
Coleman, Winnsboro: c.. II. Barron,
Columbia: l.. J. Browning. Union;
r. 3. Laney. Cheraw. and j. Swinton-
Whaley. Edisto Island.
In attempting to raise TIE, stock
for the proposed bank. the State will
likely be divided into four sections
and the stock will be allocated ae-2
coydins 10 tho cotton production OF
Zach section. probably on basis Oh
s1.7a Il bale of cotton. The stock will
be divided in two series. one Of 60 per
cent. and the other of 80 per cent. The
GO per cent allotment is for the pro-
ducer and the 40 per cent for the
banker. merchant and others. THIS
will assure control Of the stock by To-
cal interests.