4 03] PRESENT ORGANIZATION OF BUTTER MARKET iyg 



action of speculators. The majority of the speculators are 

 wholesale dealers, but a great many are jobbers; and even 

 retailers store frequently. Retailers usually instruct their 

 jobbers to buy and place the butter in storage on their ac- 

 count. Producers also store considerable quantities either 

 at the creamery or in public warehouses. In the latter case 

 the butter is shipped to a wholesale dealer of the city who 

 is instructed to hold it on " producer's account ". The in- 

 dividual motive of those taking part in this great movement 

 may be said to be a selfish one, but the total result of the 

 action of these speculators is a great economic service. If 

 all the butter produced in the United States were passed di- 

 rectly from the factory into consumptive channels through- 

 out the entire year much of it would be wasted, and the low 

 prices prevailing generally through the summer would 

 probably very seriously check the growth of the dairy in- 

 dustry. Thus the preservation of butter through cold stor- 

 age benefits both consumers and producers. Its effect upon 

 prices will be discussed in the next chapter. 



In order that the trade may estimate what bearing the 

 amounts in storage may have upon prices it is necessary 

 that warehouse statistics be complied at regular intervals. 

 Such figures are made up regularly but they do not include 

 the stocks held all over the country. They are probably 

 sufficient to show the trend of the movement into and out 

 of storage, and thus give a fair idea of the total amount. 

 In a letter received May II, 191 5, Mr. F. G. Urner, Vice- 

 President of the Urner-Barry Co., Publishers, New York, 

 has this to say concerning the way these figures are secured 

 and the number of warehouses from which reports are avail- 

 able : 



Storage figures for butter and eggs for the entire country 

 are not compiled and are not obtainable. There are several 



