3 9 i] PRESENT ORGANIZATION OF BUTTER MARKET ity 



tracts for future delivery may be transferred to other 

 members ; when this is done the following form is used : 



For Value received, the within described contract is assigned 



and transferred to 



who hereby agrees to assume the same, with all the conditions 

 and obligations thereof. 



Dated, New York, 191 .... 



Seller. 



Buyer. 



These sales do not form an important part of the business 

 in organized markets. 



In connection with buying and selling under the " call " 

 there is opportunity on the part of members to make "wash" 

 sales for the purpose of affecting the market price. For 

 instance, butter rule no. 9 of the Boston Chamber of Com- 

 merce, after prescribing penalties for non-fulfillment of con- 

 tracts, follows with this statement : " But nothing in this 

 rule shall be construed to prevent a different settlement by 

 mutual consent ". 1 The New York Mercantile Exchange 

 rules also make provision for the cancellation of similar con- 

 tracts that two members may hold against each other. It 

 is denied in trading circles that " wash " sales are made. 

 Obviously if they are made, their occurrence is not a matter 

 of common knowledge, not even to the officials of the ex- 

 change. But that they are sometimes resorted to seems to 

 be indicated by the fact that the Elgin Board of Trade has 

 been enjoined " from making fictitious or washed or pre- 

 tended sales or purchases of butter for the purpose of mis- 

 leading any person or persons as to the actual price at which 

 butter is being sold upon said Elgin Board of Trade, or 



1 Report of the Boston Chamber of Commerce for 1913, p. 210. 



