MARKETING GRAIN AT COUNTRY POINTS. 25 



upon levies a similar penalty upon the elevator. The country dealer 

 experiences more difficulty in shifting his loss upon the farmer, who 

 usually is unwilling to submit to a discount for low-grade grain, or 

 for inability to fulfill a contract. The aggrieved dealer is loath to 

 invoke the aid of civil authorities, fearing the effect of such action 

 upon future business. Of course, the farmer has no recourse, but he 

 should take this matter into consideration when entering into an 

 agreement for future delivery of his grain. 



ADVANTAGES OF CONTRACTING FOR FUTURE DELIVERY. 



The practice of purchasing grain from' farmers for future delivery 

 has certain desirable features both for dealer and for producer. The 

 advantages for the dealer are (a) greater certainty of supply and (b) 

 opportunity to sell for future delivery, which enables him to take ad- 

 vantage of any favorable price movement. The farmer, likewise, is 

 at liberty to dispose of his product at any time which, in his judg- 

 ment, is most propitious to his interests. Nevertheless it would seem 

 that it would be to the advantage of both farmer and dealer if all 

 future-delivery contracts were made in writing, each detail, such as 

 the number of bushels involved, quality of grain, date of delivery, and 

 possible premiums and discounts, clearly and concisely set forth, 

 thereby avoiding the possibility of misunderstanding at any stage 

 of the transaction. It has been suggested also that the welfare of all 

 concerned might be promoted still further if a reasonable margin 

 were posted to insure the good faith of the contracting parties. 

 Inasmuch as this system is followed by members of boards of trade 

 and exchanges in the making of future contracts, it would appear to 

 be a desirable practice and a safeguarding of mutual interests. 



STORING GRAIN FOR FARMERS.. 



Frequently the farmer does not market his surplus grain at the 

 time of harvest. Sometimes he may hold it for a more favorable 

 market, while at other times it may not be convenient to deliver it to 

 the local elevator at harvest time, because of the rush of other im- 

 portant farm work. 



After small grains have been harvested and after corn has been 

 husked they may be stored on the farm or at the county elevator, 

 or shipped to the central market and there stored in one of the public 

 elevators. Many farms are not provided with suitable granaries, and 

 unless the farmer desires to sell at harvest time he must store his 

 grain either at the local elevator or at the terminal market. Very 

 little grain is shipped from the farms to the central markets for 

 storage. * 



