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IONEY ON COTTON AT 5 AND 6 PER CENT P*-.<GEHEMH TO FINANCE STA iLE THROUGH STATE SYSTEM taiissioner McLaurin Says Most ractical Way is to Handle .Hat- | | ter Through Local Banks. j I I I wlI to The Herald and News. Bmbia. March 30.?A statement Br wit'.: the arrangements for j Ag cotton through the St-it? j Hse system was given out h:*re j former Senator .John L. Me- ; Brate warehouse commissioner, j fljfcirin returned from the North j B^*5t~week and made the apnouncemeiu i to the public that !:e had succeeded in perfecting arrangements to finance cotton stored in the State warehouse WF' at a-low rate of interest. His state^Ljnent today explains the matter in The following is ti e statement of j the warehouse commissioner: ? "I desire to make a public announcement, that on a recent visit to the city of .New York, in company with Senator J. A. Banks, we made arrangements so teat cotton in State ware- ' fcouses can be financed at a rate ot, interest on straight loans not exceed-1 ^ ing 5 per cent., and on bank accept- i ances, at the present money rate, including broker's commission, not over 4 per cent. The only difficulty is on j this end/of tJce line, in providing the j necessary machinery, rrhe most practical w&y is to handle the matter throu'Jii the local banks, for the reason that Le large institutions in New Yori ^tcan ?ot well deal with, individual bor^^Bfcvers desiring small amounts o-t* Kney. Tee >'ew Currency Law. "In an article published in' the Co- ' Bmbia State of December 9, and copied ! Bo most of the county papers, I sa'fi i Bt 'the new currency law, proper! v j B wisely administered, is the great- j Bfooon in finance ever conferred upon ^^nan. it is the first effort to impart! elasticity to our currency system, and j Has a distinct recognition of the fact that credit, not gold, is the real money Jiiatt is carrying on the commerce aud B tLef civilization of the world.' 7 "In an adcflress made by Mr. Herbert hi R. EldridgeJ of the 'National City bank, the New fYork Credit Men's association,on January 21st, he said: 'Credit, ft he backbone of trade, is built upon |he solid foundation of character and Bbility. Witfcjout such component parts j Be structure is insecure and lacks i f ermanency. \ No matter what amount Bf capital one; may have employed in business, credit remains his most | able asset. ' BFor many years our cotton planters B? created vast national credits B^&feers (have used to their bensRaking us pay a heavy interest Hie use of our own credit. V Through Local Banks. Bin speaking of the re-discounts un-! Br the new currency law, and, more Bcentliy, acceptances under tf:e New l^ork State bank law, Mr. (Bldridge I^id, in the same address: 'Taking the? Kuth as an example and recalling the vident desire of congress and the country at large to assist in its problem of caring for the large cotton crop of this season, and the slow movement consequent to the lessened demand occasioned by Che war, it can be seen urn of H-ocrroci nrt 11 11 1 thiA a C. Iceptance privilege would l:ave permitted. It cannot be expected that a Northern investing bank should be | familiar with the quality and integrity of the usual warehouse receipt issued in the various centers of the Soutn. But if such advances could be made against bills drawn by the owner of i tf:e cotton on a bank of high standing, the situation would assume a far different aspect. The accepting bams: would protect itself by the deposit with it of; familiar warehouse receipts representing cotton in sufficient amount to amply protect it.' Ofofa T*nVi /*vi7 cm low WJlC ,]p- I 1UU ututc n ai vavu?j^ m *? ? signed to meet just this condition of y affairs, and now is the proper time to w**"establish in the money centers their H value as a collateral. I t:ave kept in B touch with tfce federal reserve board, B and am greatly indebted to the kind^ ness and intelligent aid rendered personally by Mr. W. P. G. Harding, who. j coming from the South, thoroughly un-1 derstands finance as it relates to cot- j ! ton. He gave me a personal letter in which he said tJ':at 'Che State warehouse law is, in my opinion, in advance of anything that has been attempted in other Southern States, and I appears to be a model of its kind/ The Financial Center. "New York financiers naturally aesire to maintain that city as a financial center, and to do so must offer money at a rate under Abe discount established at the various reserve banks. This gives the federal reserve I considerable power over interest rates by either lowering or raising the fed^eral discount rates. The intention of the State bank law is to -develop an acceptance and discount market in f Xew York such as (Las enabled Ixniuon to make herself t.:e clearing Lous-i of the world. Tne National City bank I is showing great wisdom in establishing branch banks under the federal i law in South America and elsewh?ro, so as to develop our export trade. ! "I'nder the old national banking s-.yswo tt riwiH mnnpv market. producing such bankers' panics as in liHtT, because just as.credits needel expansion to avert panic, i.ere was a contraction of credits, increasing ianic conditions, lhese acceptance will make for elasticity by extending credit when needed and automatically retiring credits when net required !>.V actual business needs. To Standardize Interest. "The new currency law, under its power to lix the rediscount rates, will eventually standardize interest charges throughout the country, and, to some extent, eliminate competition as to interest rates. It is to meet this condition that a system of acceptances is being established. One or two large financial concerns in New York seem to be preparing to make a specialty of t.:e purchase and sale of acceptances. This has never been done to any extent in this country, but in the money centers of Europe it is used very largely in commercial transactions. The accepting bank is paid a small 1- -1- V, ? ,,.^11 commission, v. int~u etui ut v?^n i forded, because of the low rates of in-1 terest at which a draft is scld. It is to be remembered, in tl:is connection, j that tee State banks aggregate in cap- j -ital and surplus 62 per cent, of the j entire banking power of the country, j 3nd that proportion is greater in Xcw j York than in any ot'r.er State. Xeed Better Understanding. "I am constantly struck with how i little knowledge the public in Soutn Carolina have of u_e enormous cfcange that has been brought about by legls- j lation within the past year. I confess, that I did not know anything about I the changes in the State banking laws i of New York, until I made this trip, j and I am saying as muclh as I do now i about acceptances because I feel that we all need a better understanding of the banking system. The prosperity of this State depends largely upon an intelligent use ot credits arising irom i cotton. We need to learn that the j correct idea of a bank is not so much as a mere place to borrow money, but that its highest function is to conserve the credits of tibe country and use ti:em to the best advantage of the entire public. The time is at hand when we must bitter understand what is meant by reserves, discounts ma aceptances. A Basis of Credit "All that I have endeavored to do1 with the warehouse system is to trans-1 form our cotton into a basis of credit. I believe that I have made a beginning in the financial circles, in estab listing the character of State warehouse receipts. The State receipt is the best security tftat can be offered on cotton. I said in December that it was 4up to' the banks. I now say so again. Where is no excuse for charging a man with cotton 8 per cent, interest in South Carolina, when money can be i.ad in New York acceptances at 4 per cent. "I have the following letter from a responsible note broker in New Yor;v: " 'My Dear Senator McLaurin: Referring to our conversation in re arrangement for acceptances against " r-. ? n-fM-rth/MlCa CVS UULIUII SW1CU uuuci -j tem of the State of South Carolina, I beg to suggest the following plan for. overcoming the difficulties which are presented in the fact tJ.at the mousy borrowed for account of a number o~ these obligors, owners of the cotto.i hypothecated. " 'I suggest that in order to get over this difficulty, you arrange with some responsible bank or financial institution in South Carolina to loan agaiusi the warehouse receipts issued by State warehouse system and to take in connection with said loans an agreement giving them the rigat of hypothecation or subrogation. "'If they are not familiar with U:e terms of this agreement, I shall he glad to draw them up for them. " 'Whenever they desire to reimburse themselves for the advances so made, they can send ti:e warehouse receipts to me in New York, together wTith the draft at say ninety days' sigh: ! on some institution here who is willing | to accept the same under the provisions of our State law as set forth in the pamphlet wl:ich I have just handed you. A Continuous Loan. " 'The usage of the market is against making such contracts as these for a longer period than ninety days, but it is frequently arranged that the ac I ceptors shall renew them upon maturity continuously, making tine loan in fact a continuous one. " 'For such acceptances, tfbe institutions who are willing to make them generally charge a commission at the rate of 1 per cent per annum or at the rate of 1-4 per cent for each ninety; day acceptance. Drafts so accepted by ' any one of the institutions I have in 1 mind can now he sold in the market fcere at about 2 1-2 per cent per annum, i j w!hich, added to the acceptance comi mission of 1 per cent per annum and ; my brokerage of 1-4 per cent Tor e-ic'.i j ninety-days, equal to 1-2 of 1 per cent per annum, would make tne total cost of the money so borrowed 4 per c:?ut per annum. i " 'If your local bank loaned the mon I ey at (j per cent per annum. they could | j make a profit of 2 per cent for their j services and the negligible risk as-j j sumed. I "'It could doubtless be further ar j I ranged ti at the Xev: York institution | will allow them to fcold the warehouse receipts in trust, so that when any borrower desired to p:iy off a small loan asainst a particular lot of cotto* ! it would not bo necessary to send to ; * i I Xew ork for the release of the ware- j ! house receipts. " 'Of course, you understand that on I loans of this sort, ti e acceptance instij tutions of Xew York require a margin of at least -0 per cent upon tae asceri tained value of the cotton at tii:e plico | at which it is stored as evidenced bv : your warehouse receipts, and it is ! probable that some general agreement j would have to be arrived at for th^ adjustment of any margin calls t ^at might be made in the event of a dec.ino in t.e price of cotton. "'My commission would include ar- j ranging the acceptance and selling it j and attending to all necessary details " Placing the Loans. "The legislature granted me power to negotiate loans and make sales of I 4- ^ ^ I** *4- ^ Air O V _ CUllOU, UUl aiJ^lUi/uaitu iivj uuut; v.^.- i cept for current expenses. It is a manifest impossibility for me, without | providing new machinery, to handle these individual loans, and I hope to make arrangements wifli several Ideal banks to transact this business 0:1 a j margin of 2 per cent profit?that is, if | C:.ey can get the money at 4 per cent they lend it to the farmer at 6 per [cent. I can myself place straight loans i at 5 per cent in New York, but it would not be possible for me to handle the;n in small amounts. In the matter ot sales of cotton I am in toucn with a gentleman from Europe wLo is tamiliar with the cotton business, anl 1 am satisfied that arrangements canb e made to sell cotton direct to the mills, i "I believe that the State warehouse system is a scientific solution of r.he cotton problem. It is in its infancy, but can be developed to handle the cotton in each of t:e Southern States on the same plan that we are pursuing fnere, enabling us t omarket our crop gradually. To Stabilize its Value. "All legitimate ir crests in cotton desires to stabilize its ?value. Hedge selling by mills to protect purchase.3 of cotton is now a necessity, because of wide fluctuations in the price of raw cotton. This expense is now borne by the cotton planter. A striking example was had a few days ago when a report was circulated in the exchanges t).. at Secretary Houston had said there would be no reduction of acreage., Prices broke shortly, which enabled short sellers to get out of the market, and who probably circulated the sto~v for fcat purpose. The next day, on a denial by ^r. Houston, the market rebounded to a ifcigtber point than ever. It is to be hoped that the secretary ol agriculture will find out the author of this 'conspiracy in restraint of trade' + Vi?im +/-L tVi o limit of dliu piwcvuic kuvuu 1.V I.UV ?the law. Farmers >'eed Organization. "The farmers need organization so as to make their power felt. At present | there is no adequate means to secure | unity of action among the severa] States. The Farmers' union is stro-"> in Texas and North Carolina. We should revive it in the other States so as to enable us to act together in securing proper legislation, not only in j handling and marketing the crop, but J in restricting production. iThe present rise in t'ae price of cotton is deceptive and if it leads to generally increased use of fertilizer and enlarged acreage tf:e result will be disastrous. Those fntoroctori in pan potion nan act as a unit. We are a disorganized mass, each man for himself with no concert of action. The warehouse bill is a fine example of what can be accomplishel by concentrated effort. "Fellow farmers, let us organize aud I act together. We create the credits, we have the numbers, wfcy not use our power?" HOLLEMAN FOR CONGRESS. Anderson Citizen Announces From Third District. Anderson, Marcih 29.?Lee G. Holleman, president of the Peoples' bank, of Anderson, and secretary of the State Bankers' association, announced today his can-didacy for congres-s from the Third congressional district, to succeed Wyatt Aiken in 1916. Mr. Holleman was first State bank examiner and was mayor of this city 1912-14. Lady (engaging a nurse)?Have you T:ad any experience with children? Applicant?Yis, mum. Sure, Oi used to be a child mesself.?Boston Tran^ script. Little (iiri. That's a wonder 1'or a skirt, Little girl. Were you sure it wouldn't hurt, Little girl? Were you sure it wouldn't cause Rather censure than applause, And prohibitory laws, Little girl? You have migf ty pretty s'.:ins, Little girl. And the copper only grins. Little girl. But we nctioe with regret A protrduing pantalette. And we fear they'll get you yet. Little girl. You are just a simple maid, Little girl. You are not a bit afraid. Little girl. Anything the style may dare, Whether clothes or whether bare, You Are very glad to wear, Little girl. i Does your mamma know you're out, Little girl. And you'd wear the bloomin2 tT'.ing, I I Little girl. Tt is very well for art. But it stops a body's heart Lest the thing should come apart. Little girl! It's a very chill breeze, Little girl; What would happen should you sneeze? j Little girl. Would there be a little pop From the bottom to- the top? 'Sv:! Here comes another cop, j Little girl! ?1Clark McAdams, in St. Louis Post-1 Dispatch. Choice of Evils. A maiden's pouting T can stand (There are worse things, there is no Hrmhtin a-1 But, ah, of all things in the land, Pray save me from a maiden'o spouting. ?Judge. NOTICE OF ELECTION IN RUTHERFORD SCHOOL DISTRICT, NO. 23. Whereas, one-third of the resident electors and a like proportion of the resident .freeholders of the age of twenty-one years, of Rutherford School District, No. 23, of the County of Newberry, State of South Carolina, have file J petition with the County Beard of Education of Newberry County, South Carolina, petitioning and requesting that an election be held in said School District on the question of levying a special annual tax of two mills to be collected on the property located in the said So':ool District: Now, therefore, the undersigned, composing the County Board of Education for Newberry County, South Carolina, do hereby order the Board of Trustees or tne Kutnerioru scnooi j District, No. 23, to hold an election on j tie said question of levying a two mill j tax to be collected on tie property located in the said school district, which said election shall he held at Rutherford school house, in said School District No. 23, on Friday, April 9, 1915, at wihiab said election the polls shall be opened at 7 a. m. and closed at 4 p. m. The members of the Board of Trustees of said School District shall act as managers of said election. Only such electors as reside in said School District and leturn real or personal property ifor taxation, and who exhibit their tax receipts and registration certificates as required in general elections, shall be allowed to vote. Electors favoring t':e levy of such tax shall cast a ballot containing the word "Yes" written or printed thereon, and such elector opposed to such levy shall cast a ballot containing the word "No" written or printed thereon. Given under our hands and seal on March 22, 1915. GEO. D. BROWN, S. J. DERRICK, J. S. [WtHEELER, County Board of Education I for Newberry County, S. C. 1 NOTICE OF ELECTION IN BELFAST SCHOOL DISTRICT, NO. 57. W]:ereas, one-nird of the resident electors and a like proportion of the resident freeholders o the age of twenty-one years, of Belfast School District, No. 57, of the County of Newberry, State of South Carolina, have filed a petition with the County Board of Education of Newberry County, South Carolina, petitioning and requesting that an election be held in | said School District on the question of levying a special annual tax of two mills to be collected on the property located in the said School District: Now, therefore, the undersigned, composing the County Board of Education for Newberry County, South Carolina, do hereby order the Board of rrrustees of the Belfast School district, No. 57, to hold an election on Che said question of levying a two mill tax to be collected on the property located in the said school district, which said election shall be held at Belfast school house, in said School Dis trict Xo. ">7 on Saturday, April 10, 191"), at which said election tine polls shall be opened at 7 a. m. and closed at 4 p. m. The members of the Board of Trustees of said Schol District shall act as managers of said election. Only such electors as reside in sail School District and return real or personal property for taxation, and who exhibit their tax receipts and regis tration certificates as required in general elections, shall be allowed to vote. Electors favoring the levy of such tax shall cast a ballot containing the won "Yes"' written or printed thereon, an 1 such elector opposed to such levy shall cast a ballet containing the word "Xo" written or printed thereon. Given under our hands and seal or. 1. 1 - .via i en i?io. GEO. D. BROi\Y!X, S. J. DERRICK. J. S. WHEELER. County Board of Education for Newberry County, S. C. NOTFCE OF ELECTION IN WHITMIRE SCHOOL DISTRICT NO. 52. Wih-ereas, one-tihird of the resident i electors and a like proportion of the resident freeholders of the age of 21 years, of Whitmire District, 'No. 52, of the county of Newberry, State of i South Carolina, have filed a petition rfifVi tTj/% nnnnfiT KrwQ tv/3 of cwf? n o CX t i rvrt >> lOII LJL1CT V/UUHtj kji. \i v/i \,uuvwi,ivii w^ , ! Newberry county, South Carolina, pei titioning and requesting teat an election be (held in said school district on ! the question of lerrying an additional I fSpray Witf^^ed & Makes old orchards produce; c | of garden and truck. Buy a can ; j 1 spray and grow prize winners. ] Wm. Schield Mfg. Co., St. Louis, OF Wi n 55331 $ m i The StudebaKer Slope Shoi SpoKe distributes the thrust strain around the hub. A3 possible. The weaKness < spoKe absolutely eliminated. We'll be glad to explain the j advantages cf the slope shoulder f[ spoKe and the hundreds of other 11 strong points of the StudebaKer > wagon. Carload of Studebaker Wa; Saturday, April 3r Stock Yards. Sale to t The wagons are new, but not all been sold. As we they will be sold io the bight SATURDAY "WISE- LATHA special annual tax of two mills to bo collected on the property located in the said school district: Now, therefore, the undersigned, composing the county board of education for Newberry county. South Carolina, do hereby order the board of trustees of L:.e Whitmire school district No. o2. to hold an election on the said question or levying a two mill tax to be collected on the property located in the said school district, which said election shall be held at. Whit mire school house, in! said sc ool district No. 52, on Friday, April 9, 1915, at which election t)':e polls shall be opened at 7 a. m. and closed at ' ]). m. The members of the board of trustees of said school district shall act as managers of said election. Only such electors as reside in said school district and return real or personal property for taxation, and which -exhibit their tax receipt and registration certificates as required in general elections, snail be allowed to vote. Electors favoring the levy of such tax shall cast a ballot containing the word "Yes" written or printed thereon, and such electors opposed to such levy shall cast a ballot containing the word ''No" written or printed tfaereon. Given under our hands and seal on Mar on 22, 1915. GEO. D. RROWX, S. J. DERRICK, J. S. WHEELER, County Board of Education for Newberry County. fcm 11 JAJULi ' VGONS breaK is practically im- "If of the square shoulder 1 gons to be sold at auction, on d, at Wise-Lathan legia promptly at 12 o'clock, owing to the war they hare have no place to keep them ist bidder regardless of cost. APRIL 3 N STOCK CO.