Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1919-02-14

cause could go no further and hope
to be able to make the farmers under
stand me so that they would give me
their support. If every state had It's
warehouse system and state bank the
spectators would not dare run the
risk Of selling the cotton market below
20 cents when it cost 80 cents to make
it. Just so long, however, as the
sources Of finance are entirely out of
the farmers hands we will be butch
cred and the profits made one year
swept away next year, as now happen
ing. AS a whole the bankers of South
Carolina disapproved Of the state
warehouse system until we began to
get money on the receipts and deposit
it with them, then they were loud in
their approval until we demanded
per cent interest. They view state in
surance and bank such as describe
as an untried revolutionary project;
few Of them have ever studied the
subject and know absolutely nothing
about it. It is not an untried expert
ment. Such banks exist in several of
the Australian states. South Austria
liza has had one in operation for thirty
years; this state has a population about
half the size of South Carolina. The
bank has 10000 depositors, averag-
ing 5000 each. Similar banks exist in
Germany, Italy, New Zealand, nearly
all of the British colonies, Sweden,
Norway Denmark, and Holland. I be-
lieve that one such bank in every one
Of the cotton states with the proper
warehouse system would accomplish
the following results:
First. It 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 1t would keep the money
circulating at home, which is now held
up in New York and elsewhere.
Third. It would stabilize the finan-
cial system in each state and not make
us dependent upon northern money
centers. It would have tendency to
IIldhS uullOIul iuICICoI ldtCo ouo 6iNC
small borrowers equal opportunities.
Fourth. This would promote agri-
culture and develop industries.
I see some advocate a twenty-fv
million dollar bond issue to build roads.
I favor good roads, but this is like try
ing to lift yourself over the fence by
your boot straps. 1t would be more
sensible t. issue two million dollars
and have a complete system Of financ-
ing and marketing our cotton crop, so
that we can build and pay for roads
out Of our current profits.
In conclusion let me say that every
man that will keep his cotton will be
amply rewarded by the increase in
prices. Preparations are now being
made to extend large credits to Euro
pean coul tries. Belgium has just been
loaned one hundred million dollars.
The ten billion or more loaned the AL
lied countries was not actual money,
but a 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 cents per
pound and there was no big rise until
syndicate Of bankers in 1915 loaned
five hundred million dollars to Eng
land 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 for
mer enemies. Hold your cotton and
wait on the Lord"
Yours respectfully,
Jno. L. McLaurin.