The county record. [volume] (Kingstree, S.C.) 1885-1975, 1919-09-25

matter what was the price of cotton
Europe could not buy except on Gre
dit.
The foreign exchange rate is a
mere barometer. If you want proof,
in 1915 the London rate went to
S4.45 and England could not buy war
munition nor food until our govern
ment deposited a large amount Of
gold with Canadian banks and our
rich men bought American securities
held abroad. Even this did not suffice
and large loans were made by this
country to the allies. 1t is signifi-
cant fact that the amount of the
loans to England and France were
practically the same as the experts
sold them, so that you can see that
Europe can only buy when she sells
to US or borrows from US.
Now if South Carolina had such a
state warehouse system as | hoped
to be able to have in readiness when
the war ended We could extend Gre
its to European nations and sell them
the entire South Carolina crop, get
ting pay as the cotton was turned
into goods, If you were to cut the
discount rate on the German mark
in half cotton would bring soc per
pound today. The only way that we
would ever sell it is on credit, but
why not get the benefit of the trans
action for South Carolina instead of
allowing it to be pocketed by New
York? No one need to tell me that
the exchange rates quoted in London
and New York are holding good
against the "Insider". Mr. Harding
understands this and for that reason
proposed the one hundred million
dollar export corporation which Mr..
Wannamaker is trying to organize
under the Webb act. 1t would be un-
necessary to tie up this tremendous
amount of money if the State OF
South Carolina could act.
! If. cotton was North Dakota crop,
the industrial commission would ex-
tend a European credit through the
bank of North Dakota and the crop
of this state could be placed imme-
diately at from 40 to soc per pound.
There is too much lost motion in
voluntary organization with pnillions
of members; European government
only knows how to deal with another
government. They could understand
the state of South Carolina when
they don't know what to make Of a
cotton association. Remember that
cotton is an export crop, and that
the portion exported fixes the price
on that which enters into domestic
consumption. If the state ware
house commissioner would negotiate
direct with the German government
for the sale of one hundred thousand
bales of American cotton it would
have a tremendous effect on the'price
of cotton in the United States. In
all export crops the price Of the eX-
ported cotton determines the price of
that which enters into domestic con-
sumption. The quickest way to raise
the price of cotton is for someone
connected with the state warehouse
system TO 60 to Europe and negotiate
with some government there for the
sale of South Carolina cotton, secur-
ing US from loss by proper guaran-
tees. There is nothing to do except
to wait until credits are extended to
Europe and South Carolina can ex-
tend these credits herself and at less
expense than through Wall street /
strongly suspect that the present
stagnation and the general slump In
prices is manipulated from Washing
ton so as to force the ratification OF
the peace treaty.
There is something. sinister in the
talk about lowering prices and rails
ing wages at the same time. 1t
is alright to say Giving must be
cheapened" but at whose expense!
Is the relief to consumers to be en-
tirely at the expense of producers!
The farmer feeds the hungry and
clothes the naked and yet, IN the
past 10 years home owned farms
have increased only one per cent
and tenant farms 20 per cent, while
the population in rural districts in
creased 20 per cent. the town popu-
lation has increased 100. The way
to check this evil is to increase the
profits on the farms and make the
living in the cities more difficult.