389] PRESENT ORGANIZATION OF BUTTER MARKET 165 



and Illinois seriously interrupted traffic on several of the 

 trunk lines, and caused the receipts into New York City to 

 be extremely short. This had the effect of raising the 

 price of fresh creamery for one day to 42c. 1 Matters af- 

 fecting demand are also closely watched. The vacation 

 period during which people of the city go to the country 

 and other resorts is kept in mind. If the summer keeps 

 cool it is expected that a great many visitors will come to 

 the city, and that fewer will leave for vacation resorts. 

 Also such general matters as prosperity and depression are 

 taken into account, because these factors very materially 

 influence the price of butter as may be seen in the next 

 chapter. 



With all the information concerning conditions of supply 

 and demand published and absorbed by members of the 

 organized market, each one has his own estimate of what 

 the price should be. Trading can therefore begin on an in- 

 telligent basis. Individual estimates, all based very largely 

 on the same data, are modified as trading proceeds, and at 

 the end of the day's business they show a tendency toward 

 uniformity. The method of sale on the floor of the ex- 

 change, as already explained in the previous chapter, is by 

 the " call ", which is a kind of auction. No samples of 

 butter are displayed, but all selling is done by grade. In 

 addition to these regular sales there are a very large num- 

 ber of sales effected privately between members on the 

 floor. One aspect of the organized market therefore is 

 that, like any other market, it brings buyers and sellers 

 together to a common meeting place. In addition, however, 

 to " spot " buying and selling, provision is made for the 

 sale or purchase of butter " to arrive " or for " future de- 

 livery ". When the sale of butter for " future delivery " is 



1 Review of the butter trade, op. cit., for 1913, p. 78. 



