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F\( Il.!TIi:s NOW . AMi'LK
FOi: FINANCING C01T0N
(CONTIM'KD FROM IV.-OK 1.)
afford to do so. as they will receive
^ t e money on deposit or debts due.
For I milled ate Ke!;c .
The second channel open to us is
through the discount feature of tho
1 federal reserve act. It is f. ere thai
we must look for immediate re-ie..
It is well to remember, however,
that the federal reser.e bank a:
Richmond is the bank of bankers, and
that relief can only come through the
member banks of t' e federal reserve
Under section 13 o<: this act. "any
federal reserve bank may discount
notes drafts and bills of exchange
arising out of actual commercial
transactions; that is. notes, dra'.ts and
tills of pxc'.-ange issued or drawn or
argicultural or commercial purposes,"
etc., etc., for a period of 90 days:
"Provided, That notes, drafts and bills
drawn or issued for commercial purroses
or based on live stock, and hav
ing a maturity not exceeding six
months, may be discounted in an
amount to be limited to a percentage
ot the capital of the federal reserve
tank," etc. This amount is fixed at
10 per cent, of the unimpaired capital
and surplus of the bank.
Then the act, in the following
specific terms, exepmts from all restriction
"the discount of bills of exchange
drawn in good faith against
actually existing values." !
At the cotton conference called by ;
Secretary McAdoo, August ~4 ana - >. |
he ruled t ~at under the Aldrich- j
YreeicUid emergency act. cotton ware-1
ouse receipts were acceptable as security
for the issue o- currency.
Loan Value Basfs.
Now, with the federal reserve act
Ave have a further enlargement of
their sphere of usefulness.
The committee appointed by M:*
McAdoo. after congratulating him
vuon his ruling as to ware< ouse re
ceipts, said that "the average market j
Aalue of middling cotton for the past
six years Las been in excess of 1:-'
cents per pound." that "cotton doe?
rot deteriorate wt-en properly warehoused,"
etc., etc. It can. therefore, j
be carried over until the restoration
of normal business conditions enables
the world's consumption vo absorb it.
*The committee therefore is of the
opinion that eevry effort should be
made to assist C e producers to hold
" "Mr cotton for a price that will min
imize their loss," etc.. etc. 1 e committee
then suggested S cents per
pound as t':e basis for loans.
In the currency act just . into
operation there is conferred ample
power to protect the producers c- cotton
against loss from lack of an adequate
currency. The Southern reserve
1 districts are suffering from our availrole
fi:nds being tied up in the very
commodity which we are trying to
hold. There are. 1 owever. sources
open to the c :itr?l beard, of which j
Mr. Mci.Uloo is exofficio chairman, that j
can me^t t'.e situauu*.. The under- '
lying principle of the federal reserve j
sot is that it is possible to marshal all 1
oT the assets of t1 e entire system at
its weakest point, instead of as her- j
tofore, each bank being left to stand j
or fall alone.
Can Compel Rediscounts.
i Under section 10, subhead B, five
f members of the reserve board in
Washington can, 'by an* affirmative
vole, require other federal reserve
banks *o rediscount paper wfrfak V.as
been discounted by the Richmond
bank, and this with or without the indorsement
of tJ" e member bank. So
far as I see, there are no limitation?
ic the amount of such discounts.
Under section 15 of t'r.e ac:, federal
i leserve notes are issued at the discre- i
t-on" of the federal reserve board in j
\ V.shinzton. for t e purpose of mak-i
ing advances to federal reserve banks. |
The only collateral security required j
' \s a collateral equal to the amount of:
the federal reserve notes issued and
is defined as being the notes and bills
accented under the provisions of see- i
tion 13, which I hae quoted, as en-j
titled to discount wit out reference to |
the capital stock and surp'us of the!
hank, when for agricultural purposes
"based on actual existing values," to
wit, warehouse receipts for cotton, as I
construed by Mr. McAdoo's statemen' j
^ ^ last August, and the letter of Mr. j
r Harding above set forth.
a r-i undor coition 1a ft'ip secre-i
j uiiuv-a 0\^ v* ? ' j ? tary
<> the treasury can deposit, from j
the general fund, any mone\ in the j
treasury except the five percentum j
fund for the redemption of outstanding
national bank notes and the funds
i provided in th? act itself for the reb
demption of the federal reserve rotes.
I believe tbat money should 'be issued
as nearly direct to the people as
possible. It belongs to the people; it!
is made by their agent, the govern- j
raent, whose fiat imparts legal tender;
tt-viirtvi ir jo n/it mr>npv Tts I
YVllUJVfUt ? iAJVli a iu uvv
true economic function is as a measure
of value in exchanging the fruits
This new currency law, properly
vnderstood and wisely administered
is the greatest boon in finance ever j
conferred upon man. In time it will
sol e the problem of ilie "prelatory
r-ch." underpaid labor and d^pr^ssed
. i.rieult: ?-al products, all involved i.\
tbe subtle process of making, issuing
and control o money. It is t) e first
effort to impart elasticity to our cur
r-n:-y ~ysiem ar.d is a distinct rec'
znirion of the fact that credit, not
r.o'd, is :he real money t' at is carrvon
the commerce and aiaintaininy;
ihe civilization of the world.
T e farmer, with his cotton transformed
into a liquid asset, has only
one barrier, the local bank, between
j him and his government.
What to Do.
I think every bank s: ould join the
reserve system. I see that it is to be
definitely decided soon upon w':at
terms State banks mav enter. There
should be intelligent cooperation between
the farmer, lien merchant and
banker. The bankers' association
should agree at once to take notes
with warehouse receipts as collateral
all agreeing on f. e basis upon whicu
discount and loans should te a?ked
for. If the time is to be for more
tlian th<* riisnrmnt nprici* t! pn the
note should be negotiated through the
Wade loan fund; if for short time,
Let us remember this?that we can
not establish an arbitrary price, but
n-ust devote cur energies to establishing
a free and natural market for
co.ton, merely \ oldmg until this can
be dene. Cotton is selling nr..ior distress
now I here is no <-sla'j'is-hed
vr>p 1 frrni to 7 I-1 cer!t<
. levT'i:!:"" on v." ose cotton it is. It
:>-usi rise be: ' ;:?e:
1. It is about 4 cents under the
cc?t of production and cents un .er
its average annual value or li e y; nrs
2. European reserves are exhausted.
and it would bring 20 cents per
rnnnrl in Hor'nati \r T"miUc
are still at work even in Belgium. 1
met a Belgian in New York who, it is
said, is buying- cotton for two years
a'ead. I also learned that the governments
of Austria and Germany
were buying distant futures in New
York to project their manufacturers
against the advance certain to come
with a cessation of hostilities.
3. The distress cotton is passing
into strong hands able to hold it.
4. Acreage reduction of GO per cent,
by law in India and Egypt. It will
come either by law or necessity in
every Southern State.
I do not look for a rise in price until
after planting time, when acreage
reduction is an accomplished fact, and
not t'.en unless some effort is made
to provide ships and open foreign
markets. Mr. Schwab has just returned
with a $-30,000,000 order from
l-'urope :or the steel trust. There is
no reason w y I can not. if authorized
b\ the legislature, do the same for
South Carolina cotton in Eng'and and
on the continent. Acting for a sover
eign State in an official capacity
would be a great advantage in these
war times. We can not eat cotton
an J must fin I a market at the earliest
possible date. The only t'.ing to give
it a price is a demand from Europe.
To the Farmers.
To the farmers: Do not sell your
cotton to pay debts; put it into a
State warei ouse, get your receipts and
offer your note with the receipts to
your bank, ' ertilizer company or merchant.
If you fail to do this, then
the enormous advance to come later
will go to those whose labor did not
produce the cotton.
nr^Vj nm to o m r\ i r\ Anr\A.rt it n 11\7 cyivnr?
1 UU1 C iO aiupic U CU.1HLJ
under the Wade plan and the federal
reserve act for the banks to provide
funds to tide us over. This is a large
crop-?probably 16,n00.000 ba^s.
Twelve and a 'half million bales have
been ginned have taken 1,7.")0.000 hal
been ginned. Out of this, American
spinners ' ave taken 1.7-">0.000 bales,
and about l.nftO.OOO bales have been
exported, so that somewhere, in the
South there are around 9.000,000
V-ales, which financial pressure can
force on the market Investors are
greedily atching. and some definite
assurance is needed to convince them
that t. is flood of c-Qtton will not be
turned loose. Xo one can give this
except f e Southern banks.
IThe federaTreserve board has fixed
by regulation the operation of section
13, which 1 quoted above, so as to
svow that no wild inflation is to he
permitted, but evidently intend to extend
relief so far as 'he banks are
willing to go. They leave it squarely
up to the Southern banks. It is up
to the farmer not to lose his nerve, but
to stand pat.
rt&guiauon .\o. o says mat until
"further notice" the aggregate amount
of the discounts of t'.e six montJi agricultural
paper shall not exceed 2~>
per cent. &. the capital stock of the
federal reserve bank accepting same.
In circular Xo. 13, the federal reserve
board shows tbat, while it is determined
to prceed cautiously, it is prepared
to meet all reasonable demands
from the banks, saying "the limit will
be increased from time to time upon
requests made by federal reserve
banks to the federal reserve board."
aXvj should be "nipped in the ufv|
FL/i bud", for if allowed to run JAaj
iirlunchecked, serious resultsn VI i
I may follow. Numerous
III cases of consumption, pneu- jp
j js! monia, and other fatal dis- J
| eases, can be traced back to
| a cold. At the first sign of a | J
cold, protect yourself by H
thoroughly cleansing your B |
I system with a few doses of
BLACK- g i
DRAUGHT II j
the old reliable, vegetable R
Mr. Chas. A. Ragland, O' 1 1
Madison Heights, Va., says: |!
||l "1 have been using Thed- |B J
M4 ford's Black-Draught for JLSSj
i jiistomach troubles, indiges-r/li !
i Anjtion and colds, and find ittoWW
| be the very best medicine
; !%Jever usec*' Itmakes an
| tfifl man feel like a young one." foM
j |Cf| Insist on Thedford's, the Oj|
Roriginal 2nd genuine. E-67
Piles Cured in 6 to 14 Days
your druggist will refund money if PAZO
OINTMENT fails to cure any case of Itching,
Blind, Bleeding or Protrud'.ng Piles in 6 to 14 days.
The first application gives Ease and Rest. 50c.
I V, , /% ^ * V* r\ r tliin T^AniAArotin or] ?
I 1 t liiai Liiii> anv, ca.\u.
ministration will do as much for
j Southern farmers as it did tor bondarid
stockholders in New York.
The immediate effect c1 t! e war
was a rush to sell, foreign-held American
securities. The stock exchange.
was closed to prevent the slump in
prices. Mr. McAdoo organized a gold
j pool among the banks, and $100,000,-;
! 000 in gold was shipped to the Bank
I oi England to protect New York se- !
curities. Under our 2o per cent, gold
! reserve plan, $1 in gold equals $4 in
j paper currency. Thus $400,000,000 of
? ~~j :?.
money was taKen away, wmcn, uctu iu
J been used for the purchase of cotton,
j would have provided for one-has? of
! t'.'.-e crop. Sout ern banks contributed
J $12,000,000 of the amount. High-:
! priced cottou will protect Xew York
| securities; it is what gave t'.iem their
j value, and it is the only thing that
can maintain t em. The entire United
! States is interested in maintaining tile
: price of the one crop which turns the ,
j balance of trade in our ::avor. I
i What cotton needs it friend here at
i L erne. !
W'. at will the Southern banks do?
.Jno. \j. MoLaurin,
State Warehouse Commissioner. !
i May lie Partner ;'n law Os'iice IVh/cii J
1Y/I1 lie Opened in Anderson.
' :? i
j Anderson Intelligencer.
Ti - ? ^ "U "1 ^ V* Inn- r\ ffi TVill I
j 11 lb JJI'UUilUit mat ci ia? ??*** |
be opened in Anderson in tie near <.u- j
ture in which Governor Blease will be i
a partner with C. C. Wyche and M. C. j
Foster, of Spartanburg.
Mr. Wyche, who was the Blease leader
in the house of representatives, and ,
Mr. Foster were in Anderson Sunday
; for the purpose of looking into the,
situation. Neither had any statement j
j to make other than i.at Mr. !Wyche j
might move to Anderson in tee event,
,the office is opened. It is understood;
j mat a simiiiar omce v.uiuu ue ujjcuu ,
in Spartanburg, and tV.at Mr. Foster
would be in charge there. 'The gov-J
ornor, it is stated, will probably re- j
main in Columbia and visit Anderson '
, c- 'iJ Spartanburg offices when his ser-j
vice> were needed. They will make a ;
specialty of criminal cases. j
j As generally known, the governor
' as announced already that he will '
j open an office for the practice of law j
1 in Columbia w:"r.en his term expires in !
! ? !
Refuses to Confirm Report.
I Spartanburg, Dec. 9.?"Xo definite !
i plans whatever have ever made with j
! regard to the reported law partnership j
! Kq+waon riav Ripncp f f! WVche and !
| myself," said Miller C. Foster, a!
member of the local bar, last night.!
"The report was published without!
any authority on our part, and there
j is no information that we can give
[ on the subject.
A company of nine people present- i
ing The Crisis in song and story at j
v ~v. o 11 ^if ApiuRatn rHnv Dp- I
Uilgil atnuui auuitviiUiii, ^wvv%A ,
cember 12. An historical picture of
the Civil War Period depicting scenes
in the North and South among the
Blue and the Gray commemorating
the fiftieth anniversary of tine Battle
oi:' Gettysburg. Presented by iAlber's
. Musical Octette.
ready for th<
will have a r
every kind t<
ing Sets, Desl
JL RZ.2.fiJ>y W V M4V&A
Ti 1_ 1
Toilet Sets, l
ing Sets, Pari
er Hand Bag
liers, Cuff L
i ?1V A A
Iilo.se Accepts Invitation to Washington
Cc'.erncr Blease announced that j
the invitation to V:e Pan-American
Union to him and I'.is military staff
to attend the international Cotton Reception
at Washington, December 11,
bad been accepted.
In the following letter, the governor
informed the colonels of his staff o:'
the receipt of the invitation and of his
"Dear Colonel: I am in receipt of invitation
to attend International Cot- j
ton Reception, to be held in the PanAmerican
Union build.ng, Washington,
I). C\, on FriViv evening Decern-I
ber 11. The inflation to me is ac-j
companied witlh an invitation to my
"I have accepted t! e invitation for
myself and staff, and trust that you
will be able to be present, in full uni
"The occasion promises to be pleas- !
ant and profitable. In a letter which
I have from the managing director of
the Southern Commercial congress, it
is stated that "this function wjll, no j
doubt, be one of the most elaborate, as I
well as the most important, to be held
in tfce national capital this winter."
"I hope that you can attend.
"Please let me hear from you.
"Governor and Commander-in-Chief.*'
i?iau i aiii
is ready for the
5 Grown Ups as
take time by
nost complete a
> select from.
rs FOR IV
I O . n 1 ? F
k oeis, rocKet e
relias? Gold Cufl
Charms, Tie CI?
; FOR WC
Comb Sets, Mc
ty Boxes, Mesh
s, Silver Vanity
inks, Beauty Pi
ss, Puff Boxes.
r and escape tl
it the final buy
? i Ann r
OUSC UJL 1,UUU .
The Blue and The Gray.
The Blue and The Gray at the high J
school Auditorium Saturday, Decern- J
bcr 12, first number of Newberry Star
Time '' eals all wounds and banishes
all differences. But the memory of
men and deeds ?men who gave their
lives in deeds for a cause in w ic:i
they ! onestly believed?goes on into
indefinite generations. Those now
living, on either side of the civil conflict
of half a hundred years ago, once
A r-. . ao Irn/MVC
ioes, are now incuus, .<ji cat J ^
the sounds and scenes of battle; each !
knows the heroism of the ot'..er. Both
were inspired by the patriotism of a |
To present a memorial to., these heroes,
Xorti'i and South, and to give to
the present generation by means of
song and story some conception of the
times and the deeds of the Blue and
the Gray, this company of nine artists
is presented to t're lyceum. Alber's
Musical Octette is organized und^r the
direction of Louis J. Alber, the first
company to whitf-i he has attached his
name. It will present in song and
story an historical picture of the
struggle between the States. Scenes
in til:e North and the South, (before and
during the war, depicting in stirring
song and thrilling story the heroism
of the Blue and the Gray, will be presented
by the entire company; the
climax being a scene where the Union
of t?e North and the South, the break.
.1 r i _ _i_
g Sets, Shav>ooks,
: Links, Scarf
ng Sets, SewBags,
le hurry and
ing days will
| ing down of sectional lines as exem|
plifie-d in the wonderful national reunion
o: the Blue and the Gray on tfce
battlefield of Gettysburg last summer,
will be beautifully and artistically
| brought out.
! 31? Y i JTCfcPAY
:7 * ?!Cjr<^|
For Father and Son
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