136 WHEAT PRODUCTION IN NEW ZEALAND 
In the evolution of markets there are four important 
stages, and each of them may be observed in the develop- 
ment of wheat markets. The first step is the localising of 
markets where buyers and sellers may meet conveniently 
for the purpose of bargaining. Wheat was probably the 
first commodity to have localised markets, and now all 
important countries have their own. The next two 
steps in the evolution of marketing are the growth 
of the system of dealing in samples, and the trans- 
ition from this to dealing in grades. Selling by sam- 
ple has long since been in operation in wheat markets 
throughout the world, but the transition to selling by 
grade is far from complete, although in the United States 
and Canada this system has reached a high stage of 
perfection. The last step in the evolution of marketing 
is the differentiation of markets. One commodity only 
is sold in one market; thus we have the cattle market, 
the produce market, the cotton market, the textile 
market. The separate market for wheat has long since 
been evolved, and now on the great grain exchanges all 
elasses and grades of wheat are bought and sold in a 
manner similar to operations on the stock exchange. 
Before concluding our remarks on this subject it will 
be expedient to consider briefly how markets may be 
classified, and thus determine the nature of the wheat 
market. From the point of view of the extent of a 
market there are three classes. At the one extreme are 
world markets, in which competition acts directly from 
all parts of the globe; at the other those secluded markets 
in which all direct competition from afar is shut out, 
though indirect and transmitted competition may make 
itself felt even in these. About mid-way between these 
extremes lie the great majority of the markets with which 
the economist is concerned. 
Next to the market for stock exchange securities 
the wheat market is the one that in its main features 
