The Chesterfield advertiser. [volume] (Chesterfield C.H., S.C.) 1884-1978, 1919-11-20
Mr.. STEVENSON MAKES
A STRONG SPEECH


When the bill was before Congress
to amend the Federal Reserve act
Hon. w. F. Stevenson made strong
speech on the bill, in which he showed
his interest in the cotton planters OF
the South. The bill as he explained
was very important in that it assists
in the preparation for the World
Commerce that the United States
should engage in if it proposes to
maintain its great place among the
nations of the earth.
We quote part of his speech, show
ing as it does the benefit that would
come to the cotton planter. Mr..
Stevenson's remarks were heartily
applauded. He said
Mr.. Speaker, to give an idea of
what institutions of the kind which it
Is proposed to organize would mean,
if we can get them expcditiously, ]
would say that man in London or
in Liverpool who wants to buy cotton
today goes to his bank, for instance,
borrows ten thousand pounds sterl-
ing. He comes to America or sends
his agents here to buy cotton with
that money. If he can get the gold
and send it over here it would bring
him $4S,600, but he can not get it.
If he has to c ONE over here and
draw exchange in pounds, shillings,
and pence, as he will have to do, that
amount of money will net him SAL
500. If, instead of that, he could go
to banker of the character we pro-
pose to establish, or it's branch ir
London, and arrange to put up the
same securities there and get his
loans in dollars in the home bank in
New York, his ten thousand pounds
would be worth to him $4S,60O, and
he could buy with that 1885,
pounds of cotton at 80 cents a pound
but if he has to draw exchange
and get only Sal, 500 for his ter
thousand pounds, he could buy exact
ly 20,286 pounds less of cotton. Ir
other words he loses 40 bales of cot
ton in the transaction. That is the
difference, and it amounts to cents
pound. If we have these institu-
tions so that he could come here anC
get his money, by putting up the
same securities that he puts up in
England, he could pay cents q
pound more for his cotton than he
can under the present arrangement
and on the l 100000 bales of cotton
in the United States that would mean
$3.50, 100000 to the people of Ame.
RIGA who market the cotton.
Mr.. Stevenson added:
The same thing is true with respect
to the wheat market. If he could
use the foreign exchange institutions
that we propose to build up and could
come here and borrow his money and
have it in dollars, his money would
buy 19,440 bushels of wheat, while
if he had to come here and draw eX.
change he could only buy l6,6OO
bushels of wheat, fixing the price OF
the wheat at $3.50 bushel. In 9TH
er words, if he could get his money in
dollars, he would be able to pay 42
cents more bushel for wheat and
get the same amount of wheat that
he gets at $3.50 now, drawing ex.
change. For that reason the present
emergency is one which makes il
exceedingly important that these in.
stitutions be brought into existence
with all of the possible safeguards
thrown around them, in order that
the farming interests Of the United
States, the producer-and the same
thing applies to the manufacturer
may have a market, where he can car
get the full worth of his property anC
have the competition of the foreign
buyer here to buy the goods and the
products which he makes for export
For that reason / am in favor of pas.
sing this bill as promptly as due con.
sideration for proper Legislation
makes it possible.