THE MARKETING OF WHEAT 227 



Marine Insurance of grain cargoes transported on lakes, 

 rivers or oceans is obtainable. Losses on such transportation 

 in American ships were so great during the winters of 1878 and 

 1879 that "many underwriters on either side of the Atlantic 

 ceased to write them at any premium." Thirty-five years ago 

 the insurance rate on grain-carrying sailing vessels to Liverpool 

 was 1.25 pter cent from New York and 2.25 per cent from 

 Montreal, and on steam vessels 1 per cent from New York and 

 1.25 per cent from Montreal. 



Financiering the Movement of Wheat. The large money cen- 

 ters are not as great a factor in the moving of the wheat crop 

 as they were at an earlier date, for to a large extent the rural 

 sections now do their own banking. The banking power has 

 grown much faster than the increasing money requirements 

 for moving crops. In 1890 the banking power of the chief grain 

 states was to the money power required to move the grain crop 

 as 4 to 6, and a decade later the ratio was as 7 to 6. The grain 

 growing region now has sufficient capital to move the cereals 

 from first hands and to start them well on their way through 

 the commercial channels. A dealer furnishing money for about 

 175 country elevators in Minnesota and the Dakotas sends out 

 $500 to $1,000 to each elevator, making from $100,000 to $150,000 

 sent out the first day. Cars are not obtained on this day, and 

 perhaps 50,000 to 100,000 bushels are purchased. A sort of 

 paymaster is located in the elevator towns, and these keep 

 the principal informed as to the amount of wheat purchased 

 daily, and as to the amount of cash that will be required the 

 next day. Much of this cash must usually be borrowed, but 

 warehouse receipts for grain already in elevators are good se- 

 curity on which an amount of money close to the cash price of 

 the wheat can be borrowed from the country banker. There 

 must be a car load of the same grade of grain before shipment 

 can be made. When the grain does begin to move it takes sev- 

 eral days for it to get to market, and five or six days' receipts 

 are often on hand before cash is realized. As soon as a car is 

 loaded, the elevator man draws a sight draft on the commission 

 house at the primary market for the amount that he borrowed 

 from the country banker, attaches the bill of lading, and de- 

 posits the draft in the country bank as a cash item. Cables are 

 frequently sent at night to every market of the world in order 



