185 



issue of Warrants, etc., are to be attributed probablj 

 the wrong conception current in 'Government circles 

 "here over the participation of the ^tate in controlling 

 Elevators . 



THE DUTIES OF THE STATE. 



The need for fixing one common grading of wheat 

 for example is clearly understood when it is realised 

 that the secret of the utility of elevators lies in then- 

 permitting the sale and purchase of wheat according 

 to the classification' accorded by the elevator issuing 

 the warrant. Where the classification is a standard one 

 this is very simple but in the case of every elevator be- 

 ing permitted to classify without responsibility, there 

 would result very shortly such lack of confidence that 

 no-one would accord the receipt credit, without seeing 

 the samples first or proceeding to the spot to 'examine 

 the article previously . 



Again, without some control, elevators could emit 

 fictitious warrants and irresponsible parties obtain ad- 

 vances from the banks or private persons without pro- 

 per security, which would rapidly bring warrants into 

 -discredit. 



To provide against these two possibilities the 

 authorities in the United States of America, have de- 

 creed a uniform standard of quality, according to 

 which the articles submitted for warehousing and the 

 warrant are judged, and the issue of warrants not con- 

 forming to the said standards are subjected to punish- 

 ment by law. To fix some responsibility to the owners 

 of elevators the State required them to go security for 

 the documents they issue, making them liable for the 

 damages resulting from bad faith direct or indirectly 

 resulting from the failure to deliver the a nicies at the 

 stated condition or quantity. 



The essentials of elevators lie, therefore, in univer- 

 sal common methods of working and in strong financial 

 .responsibiUty. 



This would undeniably be secured by State Eleva- 

 tors; but equally as well by private enterprise, it' on 

 sufficiently ample scale. 



Undoubtedly, it would be possible to obtain the 



necessary funds by means of loans, Stat- 1 loans for 



State Elevators, but nevertheless such a course would 



imply considerable delay, and brin^ about just those 



'Complications which should specially be avoided. 



In the erection and the bringing into use of ele- 



