43 



ing back the grain themselves they were unable to pre- 

 vent theiiisi'lvs being exploited by the grain speculators. 



CO-OPERATIVE STORAGE. 



The American had already discovered the utility of 

 handling his grain in bulk. To the elevators, by which 

 his grain was loaded into wagons and steamers, storage 

 places or bins were added in which the grain could b 

 stored in bulk pending disposal. This solved the problem 

 of sound storage. 



But previously it was necessary to distinguish be- 

 tween the products of one farmer from the other, the 

 good from the bad quality, the hard wheat from the soft, 

 etc. ; this was accomplished by establishing a common type 

 r grade, and by previously examining the grain to fix 

 whether it exceeded or fell short of the standard. This 

 solved the question of relative values. 



The problems of storage were definitively solved but 

 there remained those of rendering it profitable in the long 

 run; the financial part required study. 



FINANCIAL QUESTIONS. 



It was evident that the majority of farmers could 

 only afford to hold up or store a small part of their pro- 

 duce ; it represented too much capital lying idle, capital 

 which they needed for their business. The development 

 of credits or advances on the storage receipts, or war- 

 rants, solved this aspect of the problem. 



"With these advantages, combined with the elevators 

 and grain granaries, the problem of remuneratively re- 

 gulating the supply in accordance with the demand was 

 satisfactorily solved. The prosperity of the farmer was 

 given a scientific basis. 



STORAGE. 



Storage, combined with warrants and warrant cre- 

 dits, through the use of Elevators with grain granaries, 

 permitted extensive development : firstly, by itself it as- 

 sured the farmer of the sale and distribution of his pro- 

 duce, no matter whether lie overproduced one year or not, 

 it established trade and transport in cereals universally; 

 secondly, with the warrant it created for the farmer* a 

 financial combination second to none in financial security. 



The cause of this wonderful advance is not to be 

 found in the great natural advantages of the country, 

 for 'natural resources, howe\er grand, do not exploit 

 themselves, but are exploited by ih 



