MARKETING OF BUTTER 427 



The "Call." One of the important features of the butter ex- 

 change is the "Call." Weld defines the "Call" as "a device for 

 making bids and offers, partly to establish market prices or 

 quotations and partly to bring about actual sales." 



In the larger markets, such as New York, Chicago, etc., the 

 traders assemble each day at a fixed hour (at 10 a. m. in New 

 York and Chicago) for the "Call." The "Call" is usually con- 

 ducted in a room with a raised platform at one end for the 

 chairman, and a blackboard at the back, on which are recorded 

 receipts of the day, general market conditions and the bids and 

 offers made under the call. After the offers for sale made by 

 the traders, including quantity, quality and price, are posted on 

 the blackboard, bids are called for. The bids are also posted. 

 The members of the Exchange appear on the floor and buyers 

 and sellers make public bids on the offers of butter. Often these 

 bids and offers result in sales and these sales show in a public 

 manner the prices at which receivers are willing to sell their 

 butter and the prices at which buyers are willing to purchase it. 



The bidding under the "Call" affords competitive sellers an, 

 opportunity to sell butter against each other according to the 

 supply. Should there be more demand for butter on any one 

 day at a price above the quotation of the previous day, the quo- 

 tation will be advanced to such a point as buyers are paying for 

 the butter, for the buyers will not stand for any quotation that 

 is lower than the price they are actually paying for butter. The 

 same principle applies to the sellers. Should the sellers be 

 loaded down with butter, it is their privilege to offer it at such 

 prices at which and until the buyers will take hold, and often- 

 times with the market stocked with butter, it is necessary to 

 sell it at prices where the retailers will be able to reduce their 

 selling price to the consumer. In this way the consumer be- 

 comes interested in consuming more butter and the surplus stock 

 becomes disposed of. 



The actual sales and purchases made under the "Call" are 

 few. According to Eschenbrenner 1 they sometimes do not ex- 

 ceed 5 per cent of the daily receipts of butter, the primary 

 object of the "Call" being to feel market conditions rather than 

 make specific sales. The present tendency of the butter trade 



1 Eschenbrenner, New York Produce Review, April, 1916. 



