THE CONSUMPTION OF ‘WHEAT 9 
remains here to indicate the way the system assists in 
the marketing of wheat. 
By dealing in ‘‘futures’’ the merchant who buys large 
quantities for sale at a future time, can insure himself 
against loss in the event of a fall in price. Thus, suppose 
our merchant sells to a speculative buyer a similar 
quantity of wheat to be delivered at some future time, 
then, if prices drop, he can buy up a quantity at reduced 
prices to fulfil the engagement, and so recoup himself 
of any loss incurred by his former transaction. In 
practice he does not deliver the wheat to the speculative 
buyer, but the transaction would be completed by the 
speculator paying to the merchant the difference in value 
due to the fall in price. 
At all the other great markets in the States, the system 
of ‘‘futures’’ is a distinctive characteristic, but has not 
reached such a stage of perfection as at Chicago. The 
marketing of wheat in the United States of America must 
be considered merely as local gathering, for no outside 
wheat is sold on the exchanges. Therefore, while Europe 
buys supplies of wheat on, say, the Chicago exchange, 
this exchange is not a world’s wheat market in the same 
sense that London, Liverpool, and Amsterdam are. 
The development of marketing in Canada follows 
closely that of her neighbour, and the Canadian system 
approaches that of the United States in efficiency. But 
in Russia the methods are very imperfect, though there 
is some progress towards the American system. The 
marketing of wheat in India and Argentina is similarly 
very cumbersome and uneconomical, and the oppor- 
tunities for fraud and injustices are at a maximum. 
Until some progress along American lines is made these 
two countries will be under a great disadvantage in 
selling wheat. 
5. Marketing in New Zealand. 
The New Zealand system of marketing is somewhat 
cumbersome; but, while it causes inconvenience in many 
respects, it ensures justice and equity in most cases. 
The yearly production of wheat in New Zealand does 
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