A SYSTEM OF ACCOUNTS FOR COTTON WAREHOUSES. 



13 



for storage and other charges, and of disbursements, and the necessary 

 entries are made on the cash journal and posted to the ledger, as 

 explained above. 



ARRANGEMENT OF BALES IN THE WAREHOUSE. 



The ideal arrangement from the standpoint of economy in hand- 

 ling, as well as insurance, is to stand the bales on end one bale deep. 

 This arrangement necessitates a much larger floor space than is usually 

 available; in case floor space sufficient for this arrangement is not 

 available, stacking becomes necessary. In storing the bales, it is 

 always advisable to arrange them so that the tag on each bale will 

 be in sight. 



If the bales are stacked, they may be arranged in "workway" 

 formation, that is, beginning at one side a row should be placed, 

 then a space should be left for a narrow aisle; then a double row 

 and an aisle; another double row, and an aisle; and so on. 



When cotton is stored on dirt floors, and even on brick or concrete 

 floors, it is always advisable to stack the bales on wooden skids or 

 stringers in order to raise the cotton from the floor and thus aUow a 

 circulation of air. Much damage may be avoided by this practice, 

 especially when the cotton is placed in the warehouse while not 

 absolutely dry or where the proper care is not taken to provide per- 

 fect drainage. , 



CONCLUSION. 



The various operations necessary in using the Office of Markets and 

 Rural Organization cotton warehouse accounting system have been 

 outhned very briefly in the foregoing pages. The adoption of a uni- 

 form system of accounting for cotton warehouses should be of great 

 benefit to warehousemen and to the pubhc who utihze storage facili- 

 ties. The system herein outlined will present to the warehouseman at 

 all times a true and concise record of the operations of the warehouse, 

 and the simplicity of its arrangement makes this record immediately 

 available. The depositor has in his receipt every item of information 

 in regard to his cotton that the warehouseman retains on his records, 

 and this should enable the parties to avoid all misunderstandings in 

 this respect. 



The negotiable receipts shown in this system have been devised after 

 careful study, and their requirements and conditions are designed to 

 increase negotiability. Lack of uniformity, especially in receipts, 

 under present conditions makes it impossible for the small warehouse 

 of moderate means to issue a receipt that will be readily acceptable 

 as coUateral for loans outside of a limited local field. The main 

 purpose of the United States warehouse Act enacted August 11, 

 1916, is to give to the warehouse receipt the greatest possible value 

 as collateral. The form of receipt shown here embodies the prin- 



