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mmmmm >i m t . ? 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 system. 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 ; , i 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 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 of labor. 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 i ... 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, through Richmond. 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 past. 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. Facilities Adequate. 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." ! I -p? 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 THEDFDRD'S BLACK- g i DRAUGHT II j the old reliable, vegetable R :iver powder. 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 1 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? Respectfully, .Jno. \j. MoLaurin, State Warehouse Commissioner. ! GOV. BLEASE 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 l 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; i-i 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 ! Januarv. ! ? ! 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. The Crisis, 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. UllllJ 1 Fairyland ready for th< Folks who will have a r every kind t< r>irr uir Military Bi ing Sets, Desl Razors, Umb: !Pir*fc JL RZ.2.fiJ>y W V M4V&A Mirrors. GIFTS Ti 1_ 1 orusn ana Toilet Sets, l ing Sets, Pari er Hand Bag Waist Sets, liers, Cuff L Jewelry Box* Come now confusion the bring. : II 14 i ?1V A A Iilo.se Accepts Invitation to Washington Ball. 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 acceptance: "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 military staff. "I have accepted t! e invitation for myself and staff, and trust that you will be able to be present, in full uni form. "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. "Very respectfully, TSiened) Cole. "Governor and Commander-in-Chief.*' i?iau i aiii is ready for the 5 Grown Ups as take time by 1 . nost complete a > select from. rs FOR IV rushes, Travelin I O . n 1 ? F k oeis, rocKet e relias? Gold Cufl Charms, Tie CI? ; FOR WC Comb Sets, Mc Jmbrellas, Writii ty Boxes, Mesh s, Silver Vanity Bracelets, Bro< 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 course. Foreword. 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 | cause. 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. Little Ones, well. .1 r i _ _i_ me roreiocK ssortment of 1EN! g Sets, Shav>ooks, Safety : Links, Scarf ispsj Shaving MEN! i tnicure Sets, ng Sets, SewBags, LeathBoxes, Gold Dches, Lovans? Hat Fins, * m le hurry and ing days will I rhings. | 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<^| :||Jfelii|5i WKd?TV&#p b/ipemR MECHANICS MAGAZINE For Father and Son AND ALL THE FAMILY Two and a half million readers find it of absorbing interest Everything in it is Written So You Can Understand It We sell 400,000 copies every month without giving premiums and have no solicitors. Any newsdealer will show you a copy; or write the publisher for free sample ? a postal will do. $1M A YEAR tSe A COPY Popular Mechanics Magazine g No. Michigan Avo., CHICAGO