4 BULLETIN 979, U. S. DEPARTMENT OF AGRICULTURE. 
needs but little more money than the value of one car of hay. while 
the dealer who stores a large amount or who ships a large number 
of cars in a short period of time requires capital equal to the value 
of the hay stored or of the hay in transit. While banks will advance 
about 80 per cent of the value of drafts drawn against shipments of 
hay and will loan money upon hay in storage, it is usually required 
that the shipper's credit be equal to the risk assumed by the bank in 
making such loans and advances. At the same time, if shipping 
facilities are good and the hay is delivered promptly at destination 
rather a large business may be conducted with limited capital, prob- 
ably not exceeding $3,000 to $5,000. 
In sections where buyers will pay drafts drawn at sight, the ship- 
per can conduct a larger business on less capital, for the reason that 
he is without the use of his money only as long as it takes the draft 
to reach the buyers bank at destination and the remittance to return 
to the shipper's bank. In many sections, however, buyers will pay 
drafts drawn "on arrival'' only. In this case the shipper must finance 
the shipment during the whole time it is in transit and if his capital 
is limited he is often forced to curtail his shipments until the proceeds 
are received from drafts for cars previously shipped. When freight 
movement is slow or shipments are rejected because they are not 
up to grade, or not delivered according to contract, or for some other 
reason, the shipper with limited capital is frequently greatly handi- 
capped. These business difficulties of the country shipper, however, 
are seldom shared by the producer, who is usually paid cash for his 
hay when it is delivered to the car for shipment. 
The amount of speculation practiced in the marketing of hay seems 
to be very limited. Some shippers, with warehouses fill them with hay 
when cars are not available or prices seem relatively low. Other ship- 
pers frequently contract for considerable hay to be shipped in 30 to 
60 days at the convenience of the producer. In both instances, how- 
ever, the shippers are merely accumulating sufficient stocks to insure 
a constant supply for their customers. A few instances, however, 
have been reported where shippers expecting an urgent demand for 
hay have bought up large quantities, securing ownership by the pay- 
ment of a nominal sum. In such cases contracts are frequently 
broken if the market does not move in the desired direction. 
Shippers permanently located in a territon^ usually handle hay in 
the same way as any other commodity and generally upon a reason- 
able margin of profit. 
LOADING THE CARS. 
The manner in which cars are loaded is a factor which frequently 
has considerable influence upon the price for which the hay sells. 
Hay from a shipper who has a reputation for alvays loading cars 
