The herald and news. [volume] (Newberry S.C.) 1903-1937, 1921-01-07
FARM LEGISLATION
WILL BE ASKED
COTTON ASSOCIATION TO CALL
FOR BOND ISSUE.
Associations Plan-Warehouse Re.
ceipts Would Be Basis of Pro
posed State Bonds.
The State.

| The State.
Announcement that the South Car
olina division Of the. American Cot
ton association would seek >leg;sia-
tion at the approaching session pro-
Niding for issuing cotton bonds based
on warehouse receipts attracted a
great deal of attention through the
istate and South yesterday, according
to officials of the. South Carolina di-
vision of the cotton association. 1t
! was stated that the headquarters of
the association were flooded with in
uuiries for further information con-
eerning the proposed legislation. The
headquarters of the American Cot
ton association at St. Matthews also
received many inquiries from out of
the state for plans concerning the
proposed legislation.
The following statement was as
sued last night by j. S. Wannanak-
er, president of the American Cotton
association, and r. c. Hamer, presi-
dent of the South Carolina Cotton as
sociatipn:
.ssThe cotton producing South has
been attempting for the last half
century to have the necessary na-
tional legislation passed to protect
its cotton producing interests and to
place the handling and marketing of
the cotton crop upon a strictly eco
nomica1 business basis.
Must Look TO States.
ssThe passage of such national leg
isIation will never be secured. Ad-
verse interests and sectional preju-
dice Will prevent this. The South has
paid a fearful penalty by failing 20
exercise its state rights and passing
the necessary state legislation for
this purpose.
t'The proposed legislation is for
permanent relief-not temporary
alone, and will revolut;onize the ilan-
ding and marketing of cotton and
vii bring the greatest beneficial
change that has occurred in the last
half century and in the financing and
marketing of same. y
"This bonding measure will rot
only become uniform throughout the
cotton producing South, but will be
used in other agricultural sections OF
the nation for the handling OF staple
crops. 1t IS based upon the principle
Of the European banking system, the
agricultural product being used for
"a basis of financing, same, it being
the safest of all financial credit. The
credit is cancelled when the product
is sold. Distress cotton, with this
form of financing, will be unknown.
It will result in stabilizing the price
of cotton.
ssThe enactment of a cotton bond
ing law in each Of the cotton states
would give to all such bonds Issued
a sovereign supervision of their issu-
ance, a guarantee as to their validity
and basis of gilt edge security TO
all holders and purchasers of same.
A state clearly has the same consSl-
tutional right to enact legislation for
the creating of cotton bonding COM
panies, supervise and regulate the Is
suance of same, class Of security to
guarantee protection of payment OF
such bonds, as it has to charter
banks and supervise their operation
and examination Of same to protect
the depcsitors.
"Such law is imperativeiy needed
in order that the primary wealth each
year created by the production CT
cotton may be realized to its fullest
measure of intrinsic value to the
growers. the allied business interests
and to the progress and development,
agricuiturally and commercially, OF
the state in which the staple is pro-
duced. The growers, spinners and.
manufacturers of American cotton
have for years pleaded fer system
of marketing the staple which would
stabilize the market values Of cotton
upon a fair and legitimate basis OF
cost plus reasonable profit and to
curb the constant and violent tuc-
trations in price brought about by
unbridled speculation by Interests
operating on the cotton exchanges,
who neither grow nor spin cotton.