546 IOWA DEPARTMENT OF AGRICULTURE. 



per cent to nine and one-half per cent in quantity and we may readily under- 

 stand that corn containing nine and one-half per cent of oil is much more 

 valuable for certain manufactures, also food for fattening, than if containing 

 only three and one-half per cent. 



My purpose in making this brief general statement regarding the con- 

 stitutent elements of corn is to emphasize the point that there is a wonderful 

 possibility for the future of this grain when we consider the limited area in 

 which it may be grown, and the many and increasing uses of its by-products, 

 and also to suggest the possibility that within a few years the farmer and the 

 grain trade may be forced to discriminate more technically regarding quality 

 and that values will be more in line with the intrinsic worth of the chemical 

 parts. 



Corn is one of the most important grains of commerce and its distribu- 

 tion is world wide. The farmer delivers his corn to the trade in all different 

 types, varieties and conditions imaginable, all of which must be considered 

 in fixing its commercial value. 



The commercial value of corn is not always based on its intrinsic value as 

 food for stock or its use in the manufactures and this can not be accom- 

 plished until some practical chemical test is made use of to determine the 

 constituent elements in the grain. 



There are market conditions that affect the relative values of the different 

 grades because of speculation, and also the question of facilities for handling, 

 storing and transportation. When a "corner" is being manipulated by 

 speculation there is always a stronger demand for the contract grade which 

 is No. 2 corn, than for the inferior grades and the difference which under 

 normal market conditions may be one or two cents per bushel may widen to 

 twenty-five cents or even more. 



To illustrate this, on July 11, 1902, during the Harris-Gates corner, 

 number two, or contract grade corn, sold at eighty-eight cents in stores at 

 Chicago, while number three corn sold at seventy-three and one-half cents, 

 a difference of fourteen and one-half cents per bushel, while the difference 

 based on feeding and manufacturing, or normal market values would per- 

 haps not have exceeded two cents. 



When markets are glutted and the supply exceeds the demand, the corn 

 must necessarily go into store and the buyer of such corn will certainly 

 select only the eorn that is thoroughly dry and sound, while the lower grades 

 would be neglected and thus under such circumstances the difference in 

 value between grades would be more than if normal conditions prevailed. 

 However, with the modern machinery for drying corn this is not now so apt 

 to occur, depending on the facilities in the particular market in which the 

 corn is located for handling off grades and the general outlets. 



Low grade corn that is liable to get out of condition and is located in a 

 market where there are no cleaning houses or drying facilities would suffer 

 a greater discount than if located in a market with larger facilities and like- 

 wise larger demand. 



The business of ' 'mixing and drying" grain is an important element in 

 the terminal grain trade and large elevator plants are devoted to that branch 

 of the business and it will be readily understood that for this purpose there 

 is always a varying demand for the different grades that affects comparative 

 values as between grades thus briefly stated, speculation, conjestion at ter- 



