142 



On the basis of wheat exports alone, worth hund- 

 reds of millions of pesos, what must the profits be of the 

 houses financing the crop in one solitary year? 



These conditions are not absolutely essential to the 

 financing of the crop, and would not exist if elevators 

 were in existence, accompanied by the emission of war- 

 rants. With such, having depositr/.l his cereals, the 

 whole or the part which corresponds to him according 

 to the contract he has with the owner of the land and 

 with those who have advanced him the money to carry 

 thro the year's operations, and having received his war- 

 rant, the farmer is free to study the conditions of the 

 market, and take what course seems most .suitable to his 

 interests . 



If lie wants to sell as quickly as he can, he sends 

 his receipt or warrant to his brokers, or goes to the local 

 "acopiador", or the representative of a jaain buying 

 house. 



Should the prices suit him he hands ov -r the war- 

 rant, or receipt, and receives -the money. 



HOW FARMERS USE WARRANTS. 



Should the price be below his expectations he puts 

 the warrant in his pocket, and waits a higher bidder. 



However, he has need of money to pay his expenses 

 or debts, he goes to the bank, interviews the manager, 

 presents his warrant and receives a credit up to the 

 minimum value the grain deposited may be expected to x 

 fetch. 



Advances on warrants hold the same position in 

 regard to security as do mortgages in land, that is they 

 have first lien on the security. 



There is no bank, or funds available for discounting 

 the warrant; very well, he goes to the "aimacenero", 

 or store keeper, shows, or even deposits his warrant and 

 obtains the money he wants. 



Supposing he pays off a debt or sum of money, re- 

 presenting half the value of the grain deposited, at the 

 price of the moment, he writes on the back of the war- 

 rant to the effect that he has sold so much of the quan- 

 tity deposited, and sends the warrant to the elevator 

 owner. A note is made of it, and a fresh warrant is- 

 sued for the amount to the buyer, or the quantity deliv- 

 ered him on the spot if the new owner desires to remove 

 it. 



In the ordinary way these notes or warrants pass 

 from hand to hand like bank notes. Their value is 



