Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1920-10-20
McLAURIN ON THE SITUATION.
Dcnounces tho Recent Course Of tho
Federal Reserve Board.

Bennettsville, SC, Oct. 13.-- Rich
ard IL .Edmunds, editor of the Man
| ufacturers Record, after reading an
article by John l.. Mcl.aurin, publish
ed in the Yorkvilc Enquirer a few
days ago, has made requcs. Of Mr..
McLaurin for an article along the
same general lines, and the latter has
replied briefly, as follows:
"Hcnncttsville, s. c., Oct. II.
Dear Mr. Edmunds:
"Yours 10 hand. Yes, | have been
reading the articles in the Manufac-
turers' Record on the injustice and
dangers Of the policy Of denation pur.
sued by the Federal government.
These articles are widely read down
here, ana we are all grateful for the
strong defense you are making. We
have never had parallel to this sit
uation, nor does it have a counter
part in any Of the other countries
engaged in the war.
I'm other countries deflation came
as the result Of the issue of currency.
Here it came as the result of credit
expansion through the Federal Re-
serve Act.
"Where imitation occurs through
the issue Of actual money the dena-
tion process is slow, as the notes have
to be retired as they come in. This
gives business time to adjust itself to
tho change.
'In our case the retirement is i'm
Simultaneous, being the ipse dixit Of
few treasury officials. We fought
the war on forty-cent dollar and
We contracted the debts in making
this crop OH the same forty-cent dol
lar. Now, suddenly. we are told, jus.
as we must have money to gather
the crop, that these forty-cent dol
lars must be paid in one-hundred-
cent dollars.
"While doing this the government
takes steps to increase freight and
passenger rates, and adds largely to
wages and other expenses
"lt is terrible blow to the South.
1t does not hit men like me, whose
active days are over, but it cripples
and takes the heart out of the young
and energetic--the men who won the
war and who are now producing the
wealth Of the country. 1t makes the
man with the fixed income, and the
profiteers, twice as rich and the
debtor twice as poor.
"Why did they pick the crop mov-
ing period, when the volume of busi-
ness was largest? Why didn't they
do this In the crop-planting instead
Of the crop-marketing period?>
"The census tells us that the popu-
lation In the towns and cities has
Increased in ten years seven times as
rapidly as the country. Why should
! continue to grow cotton when the
fiscal policies Of the government, as
enunciated by Houston and carried
fcut by Harding, compel me to sacri-
flee my cotton crop to placate the
labor vote, in vain attempt to elect
Cox?
"They have added $1,000,O00,000
In wages and railroad rates, and now
Will cut food and clothes SO per cent
at the expense Of the agricultural
class, who have no roganized vote to
cast
ut Is impossible under a govern
| ment like ours, with so much power
centralized in Washington, to divorce
the economic from the political poll
cies Of the government. The South
| Is helpless. We would have to vote
for the devil himself il nominated by
the Democratic party, so they give
relief to the consumers at our ex-
pense. We have no way to hit back,
and must grin and endure.
"ln view OF these facts, | advocate
a State warehouse system, with State
banks to finance our cotton crop. We
succeeded we'll in 1915, but stopped
81 Ort OF bank system to handle our
receipts. Perhaps this will force us
to go ahead. We now create the credit
that is used by Washington to choke
us to death. Why not use the credit
that we create to our own advantage,
instead OF letting others manipulate
it to their advantage?
| John l.. McLaurin."