A SYSTEM OF ACCOUNTS FOR COTTON WAREHOUSES. 13 
lor storage and other charges, and of disbursements, and the necessary 
entries are made on the cash journal and posted to the ledger, as 
explained above. 
ARRANGEMENT OF BALES IN THE WAREHOUSE. 
The ideal arrangement from the standpoint of economy in hand- 
ling, as well as insurance, is to stand the bales on end one bale deep. 
This arrangement necessitates a much larger floor space than is usually 
available; in case floor space -sufficient for this arrangement is not 
available, stacking becomes necessary. In storing the bales, it is 
always advisable to arrange them so that the tag on each bale will 
be in sight. 
If the bales are stacked, they may be arranged in "workway" 
formation, that is, beginning at one side a row should be placed, 
then a space should be left for a narrow aisle; then a double row 
and an aisle; another double row, and an aisle; and so on. 
When cotton is stored on dirt floors, and even on brick or concrete 
floors, it is always advisable to stack the bales on wooden skids or 
stringers in order to raise the cotton from the floor and thus allow a 
circulation of air. Much damage may be avoided by this practice, 
especially when the cotton is placed in the warehouse while not 
absolutely dry or where the proper care is not taken to provide per- 
fect drainage. 
CONCLUSION. 
The various operations necessary in using the Office of Markets and 
Rural Organization cotton warehouse accounting system have been 
outlined very briefly in the foregoing pages. The adoption of a uni- 
form system of accounting for cotton warehouses should be of great 
benefit to warehousemen and to the public who utilize storage facili- 
ties. The system herein outlined will present to the warehouseman at 
all times a true and concise record of the operations of the warehouse, 
and the simplicity of its arrangement makes this record immediately 
available. The depositor has in his receipt every item of information 
in regard to his cotton that the warehouseman retains on his records, 
and this should enable the parties to avoid all misunderstandings in 
this respect. 
The negotiable receipts shown in this system have been devised after 
careful study, and their requirements and conditions are designed to 
increase negotiability. Lack of uniformity, especially in receipts, 
under present conditions makes it impossible for the small warehouse 
of moderate means to issue a receipt that will be readily acceptable 
as collateral for loans outside of a limited local field. The main 
purpose of the United States warehouse Act enacted August 11, 
1916, is to give to the warehouse receipt the greatest possible value 
as collateral. The form of receipt shown here embodies the prin- 
