114 ESSAYS ON WHEAT 



of each sheet are totaled and entered in a recapitulation 

 sheet, and upon this sheet is then set out a balance of ex- 

 cess of purchase over sale or vice versa. The difference 

 between the price on the sheet and the closing market price 

 is then worked out and this difference is paid within one 

 hour by the Clearing House to the member or vice versa 

 as the case may be. And thus, on the next day, the pur- 

 chase or sales sheet of the member will bring a balance 

 forward. Upon these new sheets the day's transactions 

 will be set, the sheets will be forwarded to the Clearing 

 House at the close of trading, and the transactions settled 

 as before. Thus from day to day, after a contract has been 

 entered into, if the market drops, a purchaser will be re- 

 quired to pay the difference to the Clearing House, or, if 

 the market rises, he will receive the difference each day 

 from the Clearing House. This daily payment of differ- 

 ences is continuously made until the contract month ar- 

 rives. If now the member wishes to take delivery of his 

 grain, he notifies the Clearing House which causes a ware- 

 house receipt for the grain he has bought to be handed over 

 to him from an indicated seller and he pays for the same 

 to the seller at the current market price. If this current 

 market price is higher than the price he contracted to pur- 

 chase at, he is not a loser, because, during the time the con- 

 tract was open, he has received from day to day the differ- 

 ence between the price at which he bought and the market 

 price of the day. If, on the other hand, the current price 

 is lower than the price he has contracted to purchase at, 

 he is not a gainer, because, during the time the contract 

 was open, he has paid to the Clearing House the difference 

 between the price at which he bought and the market price 

 of the day. Similarly, a seller, at the final settling, when 

 he gives up his warehouse receipt to the purchaser, may 

 receive a lesser or greater price for his wheat than that he 



