16 BULLETIN 36, U. S. DEPARTMENT OF AGRICULTURE. 



in these small interior markets. It is very evident that there is no 

 close relation between the actual differences paid on the street and 

 the published differences. 



In connection with these tables it must be constantly borne in mind 

 that we have shown in each case the grades of the best and poorest 

 bale sampled and the highest and lowest prices paid for any bales 

 in the particular lot. It does not follow that the highest grading bale 

 usually brought the highest price or that the lowest grading bale 

 brought the lowest price. In fact, this is not true in a majority of 

 the cases tabulated. In the aggregate we have found so few instances 

 in which the differences actually paid exceeded a range permissible 

 under prevailing difference sheets that there is no doubt that these 

 cases are quite exceptional and in a general way occur only when 

 there is little range in grade among the bales offered on any par- 

 ticular day. 



The facts brought out in this chapter answer another of the ques- 

 tions of greatest importance to the farmer and show that no proper 

 distinction between grades is made when he offers his cotton for sale. 



A SPECIFIC APPLICATION OF THE DIFFERENCE SHEET. 



An analysis of the prices and premiums actually paid for 7 bales 

 of cotton sold in Shawnee on November 2 shows pointedly the fail- 

 ure of the present selling system to secure for the farmer proper 

 recognition of superior quality. This lot of samples was found to 

 consist of 1 middling, 3 strict middlings, and 3 strict good middlings. 

 The middling bale brought 11.25 cents per pound, which by compari- 

 son with the prices at the ports we must assume to be a fair price, 

 Shawnee being recognized as a premium market. Of the 3 strict 

 middling bales, 2 brought 11.25 and 1 brought 11.35 cents per pound. 

 Of the 3 strict good middling bales, 1 brought 11.25 and 2 brought 

 11.35 cents per pound each. 



Now, assuming that one farmer produced all these bales, he actu- 

 ally lost on the 3 strict middling bales $1.35, as compared with what 

 the local differences would have allowed him. On the 3 bales of 

 strict good middling, which by local custom would be graded only 

 as good middling, he received $3.05 less than he was entitled to even 

 under local differences. He actually received a total of only $1.50 

 in premium above middling price on the whole G bales of high-grade 

 cotton. If the New York difference sheet had been applied, allow- 

 ing the premiums presumably paid by the mills for such cotton, this 

 farmer should have received $3.G0 in premium on his 3 strict mid- 

 dling bales and $10.20 in premium on the 3 strict good middling 

 bales, or a total of $13.80 above the price of middling for his 6 bales, 

 instead of the $1.50 which he actually received. 



