36 AMEKICAN EXPOKT CORN ( MAIZE ) IN EUROPE. 



for the fluctuations and variations in European prices as indicated by 

 the prices quoted for corn on the London market. However this may 

 be, there can be no doubt that one of the important factors that has 

 influenced the fluctuations in- the prices of American corn and that 

 originated and has fostered the strong prejudice found existing 

 against that grain, both among importers and consumers in Europe, 

 was the poor and unsatisfactory condition in which many American 

 corn cargoes have been delivered in Europe during the past several 

 years. 



A MARKET FOR BETTER QUALITIES OF GRAIN. 



There seems to be every evidence that there is in Europe, and more 

 especially in Great Britain and Germany, a market for the better 

 classes and varieties of American grain in good condition at higher 

 prices. There can be no doubt that the wide range and great varia- 

 tions in the condition and quality of the recognized best export 

 grades of corn and wheat of the Atlantic and Gulf ports, of wiiich 

 under the present grain-trade practices there is practically but one 

 grade for each kind or class of grain and into which the greater bulk of 

 the grain exported from those ports has been included, have to a large 

 extent precluded the possibility of discrimination by the Buyer in 

 favor of the better classes and qualities of grain, because of the fact 

 that practically all of the grain exported is sold and purchased upon 

 certificates of grade, issued at the time of loading at the American 

 port and upon which final settlement is usually made before the cargo 

 reaches Europe. This method of doing business is undoubtedly very 

 desirable from the grain-trade standpoint, as it simplifies and facili- 

 tates the handling of a business of considerable proportions, but it is 

 also desirable that the grades of grain upon which trades are based 

 have a less wdde range in quality and condition for the reason that 

 the grading as at present practiced tends to reduce values to a basis 

 of the lowest common level for each kind or class of grain. 



With the exception of a comparatively few of the best-posted im- 

 porters, the European trade, and especially the consuming trade, is 

 inclined to look at American grain from a common standpoint and to 

 condemn all American grain for iniquities that may be practiced in 

 the grading of grain at any one point. It is, therefore, also desirable 

 that the grades of grain for export, at least in their essential funda- 

 mental requirements, such as the limits of moisture, the soundness, 

 and the natural development of the grain, should be alike at all 

 points. Considered as a whole, the European trade desires this in 

 order to facilitate business, and there seems to be no sound economic 

 reason why it should not be so. 



[Cir. 0.5] 



