330 CORN 



Loss 

 So that Brown, whose loss is 2 cents a bushel, has paid Lee 



3 cents loss and collected of Jones i cent Net 2c 



Jones, whose loss is 2 cents a bushel, pays i cent to Brown 



and I cent to Smith Net 2c 



Day, whose loss is 4 cents, pays 2 cents to Smith and 2 



cents to Lee Net 4c 



Total 8c per bu. 



It will be noticed that Smith and Lee have collected respectively 

 3 cents a bushel ($150.00) and 5 cents a bushel ($250.00) direct from 

 the parties with whom they had the trades, although in no case is the 

 loss of any one of the debtors the same as the profit of either Smith 

 or Lee. In every case in which a settlement is made in place of an 

 unnecessary delivery — and no agreement can be made except on that 

 basis — the result will always be the same, the losses equalizing the 

 gains. 



Delivery Price. Deliveries on contracts, when the warehouse re- 

 ceipts are passed from office to office, are paid for at the price of the 

 contract as originally made between the brokers. When delivery is 

 effected by the "delivery" notice, as explained heretofore, it is made 

 at a "delivery" price fixed each day, as in the case of the "settlement" 

 price, and the commodity is figured, for the purpose of delivery, at 

 that price. The party receiving the commodity pays for it, not at the 

 price at which he bought it, but at the "delivery" price. If the "deliv- 

 ery" price is less than the price of the contract on which he received 

 it, he pays the difference to the party from whom he bought, but if it 

 (the delivery price) is in excess of the purchase price, he collects the 

 excess or difiference from the party from whom he has bought it. This 

 plan is followed by each party who received and delivered out the 

 "delivery" notice ; they use the delivery price as a figuring price and 

 pay the difference in exactly the same manner as they would when 

 using the "settlement" price in case of settlement without delivery. 



Even the party sending out the notice receives payment at the 

 delivery price and he collects of or pays to the person to whom his 

 sale was made and who first received the "delivery" notice from him, 

 the difference between this contract price and the "delivery" price. The 

 "delivery" notice may be passed through any number of brokers and 

 the contracts settled at the delivery price. The following morning, 

 the brokers pay and collect the differences between the price at which 

 they originally made the purchase and sale and the "delivery" price. 



The "delivery" price is like the "settlement" price, a mere figuring 



