232 AGRICULTURAL PRICES AND VALORIZATION 



and the wholesaler will buy later and usually at a lower figure. The method 

 now pursued in determining the proper prices is through advices received 

 from salaried agents that the Association maintains in France and Italy, the 

 principal countries producing walnuts which come into competition with the 

 California line. Advices are constantly received through these agents as to 

 the extent of the foreign crops, the quality, prices being paid, whether the 

 harvest is early or late, etc. The Association's sales department then gathers 

 all possible information regarding the consumer's demand in America. Accurate 

 estimates of both domestic and foreign walnuts carried over in this country 

 are secured, the purchasing power of the nation considered, then a careful 

 and accurate estimate of the quantity and quality of the California crop is 

 made, and all of these matters laid before the board of directors about the 

 time the shipping campaign opens. The directors first examine and crack 

 samples of walnuts gathered from practically all districts, and determine the 

 average percentage of sound merchantable nuts that can be guaranteed to 

 the purchasers of DIAMOND BRAND goods. They then consider all factors 

 that enter into the value of the product, and name prices at which the Asso- 

 ciation's various grades and brands of walnuts will be offered the trade. And 

 for reasons above stated, these prices must be slightly below the figure justi- 

 fied by the actual supply and demand as long as the policy of selling at one 

 uniform price throughout the entire season is deemed advisable." 



Collective Price Fixing by California Almond Growers. 10 "At an oppor- 

 tune time the Association's representatives are called together for the purpose 

 of considering prices. 



"The latest information as to the foreign and domestic crops, as well as 

 general market conditions, is fully discussed. 



" The result is a price that in the opinion of all will move the crop promptly. 



"It must be fully understood that the price named by the Exchange is 

 the best estimate as to the value of the crop to be harvested. Later market, 

 financial and foreign conditions may materially raise or lower that value. The 

 Exchange maintains a salaried representative in Europe, who reports from time 

 to time on the European almond crop, and market conditions. Thus the 

 Exchange is well posted on world-wide conditions affecting our industry." 



A very illuminating example of the force of demand in fixing 

 the price of wheat was given by the market in the early part of 

 the year 1917. In Canada and in the United States the farmers 

 were complaining that the spread in price between different 

 grades of wheat one dollar and over was too great and was 

 not justified by milling values or any other economic conditions. 

 The companies dealing in wheat accordingly were blamed. Yet, 

 when the facts were once clearly stated, it was understood that 

 economic factors did account for this wide spread. The situation 

 was explained to the Manitoba Grain Growers Association at their 

 14th Annual Meeting by Robert Magill, former Chairman of the 

 Canadian Grain Commission, in the following succinct manner : n 



" Russian supply is cut off. India, the Argentine, and Australia are too far 

 away. Several trips could be made to America for one to the former countries. 



10 Report for 1918, California Almond Growers Exchange. 



11 Magill, Robert, 14th Annual Meeting Manitoba Grain Growers, Bran- 

 don, January 10, 1917. Grain Growers Guide, Winnipeg, January 17, 1917. 



