The herald and news. (Newberry S.C.) 1903-1937, August 24, 1915, Page TWO, Image 2
FUNDS SUFFICIENT
TO FINANCE COTTON
BANKS WITX RE ABLE TO TAKE
OAJRE OF SITUATION.
Better to Loan on Staple Commodities
Than Use Funds to Inflate the
Stock Market.
Washington, Aug. 19.?Comptroller ;
of the Currency Williams announced
today that the present unemployed |
loaning capacity of national banks and j
reserve banks was sufficient to finance |
at market value the entire cotton crop
and half, if not all, of the tobacco and
wheat crops and to justify an expaneion
of credit of two or three billion
dollars.
A statement issued by tfte comptroller
referred to the prospect for unusual
demands for funds, particularly
if cotton should be declared contraband,
and declared that never before j
Itad the banks been so strong and so'
1L - - ^ ^ i? Jin n?T- '
uuurvugiiij pxeparcu iu iiaiiuic auj j
problem.
Just before tfce statement was issued
the British embassy authorized the announcement
that the allies had agreed
on the principle that cotton was con
traband.
Special requirements which the
banks may have to meet in ti':e near
future were summarized by Mr. Williams
as follows:
"First The yearly recurring demand
for funds with which to move the
crops, which this year, except as to
cotton, are unusually large and commanding
full prices.
flntfnn Cifnntfnn.
VVVVVU V<VUMU<V<U4
"Second. The unusual demand for
funds whicfi may arise to enable cotton
growers to meet any congestion
_ in the movement or marketing of the
crop, in the event that cotton should
be declared contraband.
'Third. Demands which are likely
in marJA rm national banks, both di
rectly and indirectly, in connection
with tfte extension of credit to foreign
purchasers of supplies of all
kinds, and to pay for the American
securities which may be returned to
us by the foreign creditors."
Continuing the statement said:
"The actual figures show that from
the present condition tf:e national
DaiiKs or tnis couniry nave never Defore
been so strong and so thoroughly
prepared to grapple with and handle
successfully any problem, however
large, which may be presented to them
r-*
as tT:ey are today. These figures show
that the national banks of this country
and the twelve federal reserve
fcanks, exclusive of State banks and
trust companies, have at this time an
unemployed loaning, capacity sufficient
to enable them, if need be, to carry for
cur own people at market value the entire
cotton crop, and half if not the
whole of tf-e wheat crop and tobacco
Crop, which it is not, of course, conceivable
that they will be asked to do,
and also nnance, until tne purcnasers
can pay us in gold or its equivalent,
a thousand million dollars or ?o of exports
of foodstuffs or manufactured
products to be shipped to the rest of
the world. Loans
on Staples.
t "It is far better for tf:e banks to
employ their surplus funds in making
loans on staple commodities, where
they can relieve congestion or promote
legitimate commercial transactions,
Tather than permit these funds to be
used for the inflation of the stock markets,
where speculation in securities
has already reacned a point wfcich mTites
caution. "The
abstract of condition of national
banks as of June 23, 1915, just
completed, shows that notwithstanding
the great reduction in reserve requirements
which went into effect with
. the inauguration of tf'e Federal reserve
system in November last, the
actual reserve? of the national banks
on June 23. 1915. are far In excess of
the latest reserves ever held at any
one tiue in the past history of the
country, and amounted to $1,840,000,000,
or $778,000,000 more than the
amount whicta the national banks are
required to hold.
Greatest on Record.
"This surplus reserve, it is estimated,
is sufficient to justify, on a conservative
basis, an expansion of credit
or a further loaning power of, say, two
tVir-QQ KilKon 7orc TVio nraconf
VI UXX1 WJlillVU Vi. W A J> C4. 1 O X UV/ yi VCV.UW
total loans of all the national "banks
amount to about six and two-thirds
billion dollar^. A year ago the surplus
reserve of the national banks was only
$41,000,000; so tfcat the increase over
the surplus reserve shown a year ago
x_is $737,000,000.
"The total reserve of the national
"banks now exceeds by $319,000,000 the
greatest reserve ever held by national
banks at any time prior to the passage
of the Federal Reserve act.
"Specie held by the national banks
and the federal reserve banks amount
to close to one tftousand million dollars.
The specie in the national banks
increased between May 1 and June 2S,
1915, $71,000,000.
BRITISH STEAMSHIP I
SUNK BY GERMANS
ONLY SMALL LOSS OF LIFE IS
KEPOIITED
AH Americans on Board Are Keporiea
as Saved?Sank in Ten
Minutes.
New York, Aug. 19.?Careful checking
of the various lists of surviors of
the Arabic, as given out in London,!
Washin etnn and New York late to-t
night, showed tl-at all passengers listed
by the iWhite Star Line as Americans
on board the vessel had been
saved.
London, Aug. 20.?The Wbite Star
Liner Arabic was torpedoed and sunk j
on her way to New York by a German |
submarine at y:lo o ciock "inursaay
morning, southeast of Fastnet.
TLe steamer, according to the White
Star line, was attacked without warning
and went down in ten minutes. Of
the 423 persons on board?181 passengers
and 242 members of the crew?
thirty-two are missing and are believed
to have perished. Most of those
not accounted for belong to the crew.;
Only six passengers are reported .
missing. 1
Whether any of those not accounted
for are Americans f~as not yet been
determined, but there were only 26 ,
citizens of the United States on board, ,
22 being in the second cabin and four .
in the steerage. The Arabic carried no (
first-class passengers, having lately
been turned into a two-class liner.
survivors leu tne sieamer w mc
ship's boats and were picked up by
passing vessels. They arrived in
Jueenstown tonight and are being (
accommodated by ti':e White Star line
in hotels and boarding houses in the
little town which so short a time ago (
cared for the Lu6itania survivors and
dead.
Loss of Life Not Great.
Details of the sinking of the Arabic
are lacking, but that the loss of life
was not greater doubtless was due to
the fact that the weather was fine, and
that steamers plying the German submarine
war zone now keep their boats
swung out.
The torpedo that sank the Arabic
struck l':er on the starboard side 100
i
feet from her stern. The vessel had {
left Liverpool Wednesday afternoon
and was on a southerly course, well
off the Irish coast.
Wen the vessel was some fifty miles
west of where the Lusitania was sunk
in May, the German underwater boat
rose to tJ':e surface and launched a
torpedo. The marksmanship of the
Germans was deadly accurate and the
big liner settled quickly and disappeared
from view.
Some survivors, according to re
ports, say that they had just witnessed
the torpedoing of a British steamer,
presumably the Dunsley, and that tit is
had caused great alarm on board the
Arabic. In their fright the passengers
had rushed for life preservers and
barely had adjusted them wf:en the
German submarine turned its torpedo
against the Arabic's side.
. A Qnick Transfer.
Ten life boats and a number of life
rafts were got over the side of the
steamer and in,to these many passengers
and members of the crew scrambled.
Many passengers fell into the
"The reports of the Federal reserve
banks at this time show that the total
amount of bills discounted and acceptances
held by these banks amount
to approximately $40,000,000, while tl'-e
supply of gold which the federal reserve
banks have now on hand is suf-?
x ^ - ? ? iV A* * VtA*k?y?. A "f ll.wl Vl /NW
Hcient 10 give uiest; u<uja& ? iuhuu
loaning capacity, if the occasion called
for. it, of more 'than $630,000,000 additional,
provided they should utilize
their note issuing powers to the maximum.
"Again their maximum arrect Dorrowings
in the past of $162,617,000 the
reports of the national banks as of
I
June 23, 1915, show that they had on |
?and on mat date paper engioie ior
rediscount with the federal reserve
banks amounting to $1,619,000, which
is more than ten times the maximum
amount which the national banTts of
the country, according to tnelr sworn
statements to tfce controller of the
currency, have ever before had occasion
to borrow on their bills payable
or by rediscounts.
"The soundness of our new banking
and currency system, and its ability to
meet successfully even the most trying
emergencies, have been demonnlon
Vioro nr\n +Vlot
on atcu. '? KS aiow XlCl > ^ vvuuuvuvg CAXCtU
it will be equally able to cope with
and control inflation growing out of
prosperity. It behooves the national
banks and tf:e department of the government
charged' with their supervi-1
sion to exercise, under present circum-'
stances, the utmost vigilance and a i
wholesale restraint lest over-confidence
and unwise expansion or speculation
may check the prosperity which
now seems so likeliy to increase and
endure."
, ' 1 I
water, but they zoi hold of the rafts !
and later were rescued. One woman j
wi o fell into tne sea screamed pitifully
for help. Two sailors swam to her
and lifted her onto the raft.
Arrone thoie rescued were Capt.
Will Finch, commander of the Arabic,
all the deck officers, the ch-ief engineer,
the surgeon, tl.e purser, the assistant
purser, the chief steward and the
third-class steward. Third Engineer
Lugon is among the missing.
One passenger was Kenneth Doug-(
las. the English actor. He was on the j
Lusitania w en she was sent to the |
bottom. His good luck followed him I
again today, for he is among the sur-'
vivors.
Nows tho sinking of the Arabic !
caused a tremendous sensation in
London. The first reports stated that
it was feared a large number of the
passengers had been lost. Reassuring
news came shortly, however. It was
that some fifteen or sixteen boats and
life rafts had left the steamer safely
and had been jic-ked up and were beinor
tnwpri in to Oueenstown. Later
private telegrams brought the news
from most of the passengers that they
were safe, although some were injured.
H e Arabic is the largest vessel yet
sunk by the Germans except the Lusiiania.
Had Had Close Calls*
The Arabic is listed as of 15.801
gross tons and 10,062 net, 600 feet long,
55 feet beam and 47 feet in depth. She
was built in Belfast in 1903 by Harland
& Wolff.
On her last eastward trip the Arabic
arrived in Liverpool on August 6
from New York.
After the receipt of ? cablegram announcing
her safe arrival the bureau
of combustib^s of New York City allowed
the fact to become known that
two sticks of dynamite had been discovered
on the liner on July 27, the
night before she sai'ed from New
York.
Once before since the beginning of
the war the Arabic had a close call.
A cable message from London on
Mard'ai 27 said the steamer had been
pursued by a German submarine in
the Irish* Sea, on the voyage which
ended on that day. According to this
account a periscope was sighted as the j
steamer .vent in from St. George's |
channel, and it was soon obvious
II:at a hostile submarine was in pursuit.
The Arabic put on full steam
and outdistanced the submarine.
On the occasion of the apparent attempt
to dynamite the Arabic last
month the explosive, which was dis- j
covered by a private detective, was j
concealed under a settee in the women's
parlor amidships. No fuse, de-1
tonator or wiring was attached to the
dynamite.
American Cabin Passengers.
New York, Aug. 19.?The White Star
Jine gave out tonight a list cabled from
Liverpool containing the names of the
following cabin passengers, sailing on
the Arabic, all Americans:
Miss Josephine L. Bruguiere, Mr.
Bruguiere. Ur. and Mrs. Fred Burgess,
Mr. and Mrs. James Calmon, Mr. and
Mrs. P. \V. A. Collin's, Mr. and Mrs
Dellah Covington, James Houlihan,
the Rev. Dr. E. A. McAllister, Christoji
er McTammie, Leopold P. Moore, A.
Hulme Mebeker, John Dolan, Claude
Roode, Jos. M. Rowley, W. E. Rams
aeii, I.VilSS 1?'. Hi. onnmpion, riumuuu
Woods.
American passengers in the steerage
were : Thomas Elmore, William
Hughes, J. Kellett, John Olson.
White Star Line Statement.
London, lAug. 19.?The White Star
line issued the following statement tonight:
|
'"Die Arabic left Liverpool at 2
o'clock yesterday afternoon. She was
torpedoed this morning at 9:15 o'clock
in latitude 5:50 north, longitude 8:32
west.
'"She had aboard 423 persons. As far
as can be ascertained there are 375
survivors. It is understood that only
six passengers are unaccounted for."
Tironfr.fivo tmprinnns
A Mviivj-n f ^ ^Uiv*<vwui^f
London, Aug. 19.?A wireless from
the warship towing the Arabic's boats
to Queenstown says there were 2 Americans
in tl'e second cabin and three
in the steerage.
Invigorating: to the Paie and Sickly
The Old Standard general streng^hei ing tonic.
GROVE'S TASTELESS chill TONIC, drives out
Malaria.evjriche ;t leblood.andbuilds jpthesystem.
A. to" <" TtTf<s and <~h ldrer SO
IIaIapSa Af PIiSIIa 0. FmiAP
maKUid ui uiniio eo rcvci
Prescription No. 666 is prepared'especially
for MALARIA or CHILLS & FEVER.
Five or sis doses will break any case, and
if taken then as s tonic the Fever will not
return. It acts on the liver better than
Calomel and does not gripe or sicken. 25c
To Drive Out Malaria
And Build Up The System
Take the Old Standard GROVE'S
TASTELESS chill TONIC. You know
what you are taking, as the tormuia is
printed on every label, showing it is
Quinine and Iron in a tasteless form.
The Quinine drives out malaria, the
Iron builds up th? system. 60 ceo&
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s* s
r* a
5- ^ |
w o
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a>
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W'
W
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H
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Long Distance calls for fi
__ j* _ _ r 1 i J i
raaius ui several uuuuicu
"In less than one hou
of flour at a total cost to 1
"Since then we have a
Bell Telephone to every fe
most profitable results.
rates are reasonable and I
in on* Long Distance Te
a dozen letters"
SOUTHERN BELL TE
AND TELEGRAPH (
nnv i /?o nnr
OUA J.OO, tUL
ARE YOl
5 to t
Dnnomt Donir
i auaiua-i auii
ai
San Francis
Diego, C
by one of
VARIABLE PREE
I
i
If so, write the unders
fares, folders and all partic
Excursion tickets per
famously attractive and
T. C. Y
no-nnrol Pcjccpncrpr AcTf
\JV11VXU1 JL UUWVA1.^V<|
Atlantic C
The Standard Rail]
mmmmmmmmmmmmmmmtmmamwmmm
NOTICE OF ELECTION IN BIG
CHEEK SCHOOL DISTRICT NO. 20.
Whereas, one-third of the resident
nloMnrc onA a lik-p nrrvnortion of the
Viwi/U* a MUU ^- -.r
resident freeholders of the age of 21
years, in Big Creek school district, No.
20, of the County of Newberry, State
of Soutfa 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 spej
cial additional tax of two mills to be
collected on an uie ta.\auie pi u^ci t;
located in the said school district.
Now, therefore, the undersigned,
composing the county hoard cf education
for Newberry county, South
Carolina, do fcereby order the board
I of trustees of Big Creek school dis!
trict Xo. 20, to hold an election on the
said question of levying a special additional
two mill tax to be collected on
tl": e property located in the said
school district, which said election
shall hp held at Bis Creek
school house, in said schoo: district
Xo. 20, on Saturday, August 28,
1915, at which said election the polls
shall be opened at 7 a. m. and closed
at 4 p. m. The members of the board
i of trustees of said school district
sfhall act as managers of said election.
Only such electors as reside in eaid
school district and return reai or personal
property for taxation, and who
exhibit their tax receipts and registration
certificates as required in genj
eraI election*, ?tall fee all?-*ed to vote,
One
Experience
Convinced Me
I nf itc Valno
J W *?.kJ V M.JI UV
"One of our salesmen
demonstrated th?
value of the Long Distance
Telephone to us.
He was at Huntsville,
Ala., and upon his own
responsibility put in
ifteen merchants within a
t
miles.
t
r he had sold 2100 barrels
as of less than six dollars.
pplied the Long Distance
:ature of our business with
The service is fine, the
? t
:nere is more satisfaction
lephonc talk than in hall
:lephone
company
UMBIA, S. C.
..... I
; GOING
he
ic Expositions
b
co and San
alifornia
mQnv 1
wiiv jlxxu?iij
HRECT ROUTES
?
?
n/1 1 a ii t av/mivnm^
5igneu lur iuw g
:ulars regarding your trip,
mit stopovers at many |
scenic points and resorts.
VHITE,
ait, Wilmington, N. C.
'oast Line
road of the South.
Electors favoring the levy of sucfe tax
shall cast a ballot containing the word
-
"Yes" written or printed tJaereon, anu
each elector opposed to such levy sfcall
cast a ballot containing the word "No"
written or printed thereon.
Given under our hands and seal on
this the 10th day of August, 1915.
CHAS. P. BARRE,
S. J. DERRICK,
J. S. 'WHEELER,
County Board of Education
for Newberry County, S. C
NOTICE TO TRUSTEES.
It is utterly impossible for the
County Auditor to know the location
and amount of real and personal property
in districts having a special tax,
unless he has t?e assistance of the
r>f tVio sn<v?ia1 r?istrirts. I
IX UOICT^O VI UU \y wji/v vv?4 ?? ? . v .^.
therefore request and urge that all
trustees of special school districts
meet in the Auditor's office at different
times between now and the loth of
August, 1915, and check over tie returns
and place the amount of real
and personal property due to be taxed
in their respective districts.
Eugene S. Werts,
7-27,td County Auditor.
Whenever Yoa Need a General Ton);
Take Grove's
The Old Standard Grove's Tasteless
chill Tonic is equally valuable as a
General Tonic because it contains the
well known tonic properties of QUININE
and IRON. It acts on the Liver, Drives
cot Malaria* Enriches the Blood and
MHs ap ft* Wfeote System. 30 cents.