136 WHEAT PRODUCTION IN NEW ZEALAND 



In the evolution of markets there are four important 

 stages, and each of them may be observed in the develop- 

 ment of wheat markets. The first step is the localising of 

 markets where buyers and sellers may meet conveniently 

 for the purpose of bargaining. Wheat was probably the 

 first commodity to have localised markets, and now all 

 important countries have their own. The next two 

 steps in the evolution of marketing are the growth 

 of the system of dealing in samples, and the trans- 

 ition from this to dealing in grades. Selling by sam- 

 ple has long since been in operation in wheat markets 

 throughout the world, but the transition to selling by 

 grade is far from complete, although in the United States 

 and Canada this system has reached a high stage of 

 perfection. The last step in the evolution of marketing 

 is the differentiation of markets. One commodity only 

 is sold in one market; thus we have the cattle market, 

 the produce market, the cotton market, the textile 

 market. The separate market for wheat has long since 

 been evolved, and now on the great grain exchanges all 

 classes and grades of wheat are bought and sold in a 

 manner similar to operations on the stock exchange. 



Before concluding our remarks on this subject it will 

 be expedient to consider briefly how markets may be 

 classified, and thus determine the nature of the wheat 

 market. From the point of view of the extent of a 

 market there are three classes. At the one extreme are 

 world markets, in which competition acts directly from 

 all parts of the globe ; at the other those secluded markets 

 in which all direct competition from afar is shut out, 

 though indirect and transmitted competition may make 

 itself felt even in these. About mid-way between these 

 extremes lie the great majority of the markets with which 

 the economist is concerned. 



Next to the market for stock exchange securities 

 the wheat market is the one that in its main features 



