Rockingham post-dispatch. [volume] (Rockingham, N.C.) 1917-1965, 1920-10-14
COTTON WAREHOUSE
Continued from front page:

Continued from front page.
Committee: that if the cotton
farmers would stand for an as
sessment Of 25 cents per bale
for 1919 and 1920 with which
to create a fund for backing
up the warehouse receipts, the
Committee would endorse the
plan. The suggestion was ac-
cepted and Senator Price Of
Union County undertook to have
it put through the Senate and
w. N. Everett to have it passed
in the House. The result is seen
in Chapter 16S, Public Laws
1919.
Section 5 reads as follows:
Section 5 reads as foiiows:--
THAT in order to provide suffi-
cient indemnifying or guarantee fund
to cover any loss not covered by the
! bonds tbonds given by warehousemen)
hereinbefofe mentioned, in order to
provide the financial backing which is
essential In order to make the ware
house receipts universally acceptable
<as collateral. and in order to provide
that d State warehouse system in
tended to benefit all cotton growers in
North Carolina shall be supported by
the class it is designed to benefit, II
is hereby declared: That on each bale
of cotton ginned in North Carolina in
the two years ending June thirtieth,
one thousand nine hundred and twen-
ty-one, twenty-five cents shall be col
lected, through the ginner of the bale
and paid into the State reasury, to be
held there as special guarantee or
indemnifying fund to safeguard the
State warehouse system against any
losses not otherwise covered. The
State Tax Commission shall provide
and enforce the machinery for the
collection Of this tax. which shall be
held in the State Treasury to the,
credit of the State warehouse system.
At least one-half of this amount shall
be invested in United States Govern.
ment, or Farm Loan Bonds, or North
Carolina bonds, and the remainder
may be invested in amply secured
first mortgages to aid and encourage
the establishment of warehouses, op-
Grating under this system, such in
vestments to be made by the Board
of Agriculture with the approval OF
the Governor and Attorney General:
Provided, such first mortgages shall
be for not more than one-half the &C
tual value of the warehouse property
covered by such mortgages, and run
for not more than ten years"
Twenty-Five cents on every
bale ginned in the State from
the 1919-20 crop has been turn
ed into the State Treasurer, and
is to be forever kept separate
and apart from all other funds
and can only be used as provided
for under the terms Of the law.
We should have in this Coun-
ty enough warehouse room to
take care of one-half of the crop.
Leased buildings may be
brought under the State Ware
house Act: Warehouses can be
built, and one-half of the money
may be borrowed for such build
ings-payable in ten years.
The price Of cotton has been
SO satisfactory since the passage
of this act that no farmer seem
ed--during these two years to
be interested in warehouses. I.
It is only since the severe de-
cline in price that any Of us
would consider it.
IS =
But we have the necessary
naachinery--if we will use it
by which we can get State Ware
house receipts for our cotton
which guarantees the weight,
grade and staple of every bale
and which will be as good as any
other security, and will be &C
cepted as first class wherever
money is ent-either here, 81
in New York or with the Re.
serve Bank System. 81
The farmers, banks and bust.
ness men should get together
80 = Il L..