16 BULLETIN 36, TT. S. DEPARTMENT OF AGRICULTURE. 
in these small interior markets. It is very evident that there is no 
close relation between the actual differences paid on the street and 
the published differences. 
In connection with these tables it must be constantly borne in mind 
that we have shown in each case the grades of the best and poorest 
bale sampled and the highest and lowest prices paid for any bales 
in the particular lot. It does not follow that the highest grading bale 
usually brought the highest price or that the lowest grading bale 
brought the lowest price. In fact, this is not true in a majority of 
the cases tabulated. In the aggregate we have found so few instances 
in which the differences actually paid exceeded a range permissible 
under prevailing difference sheets that there is no doubt that these 
cases are quite exceptional and in a general way occur only when 
there is little range in grade among the bales offered on any par- 
ticular day. 
The facts brought out in this chapter answer another of the ques- 
tions of greatest importance to the farmer and show that no proper 
distinction between grades is made when he offers his cotton for sale. 
A SPECIFIC APPLICATION OF THE DIFFERENCE SHEET. 
An analysis of the prices and premiums actually paid for 7 bales 
of cotton sold in Shawnee on November 2 shows pointedly the fail- 
ure of the present selling system to secure for the farmer proper 
recognition of superior quality. This lot of samples was found to 
consist of 1 middling. 3 strict middlings, and 3 strict good middlings. 
The middling bale brought 11.25 cents per pound, which by compari- 
son with the prices at the ports we must assume to be a fair price. 
Shawnee being recognized as a premium market. Of the 3 strict 
middling bales, 2 brought 11.25 and 1 brought 11.35 cents per pound. 
Of the 3 strict good middling bales, 1 brought 11.25 and 2 brought 
11.35 cents per pound each. 
Now. assuming that one farmer produced all these bales, he actu- 
ally lost on the 3 strict middling bales $1.35, as compared with what 
the local differences would have allowed him. On the 3 bales of 
strict good middling, which by local custom would be graded onlv 
as good middling, he received $3.05 less than he was entitled to even 
under local differences. He actually received a total of only $1.50 
in premium above middling price on the whole 6 bales of high-grade 
cotton. If the New York difference sheet had been applied, allow- 
ing the premiums presumably paid by the mills for such cotton, this 
farmer should have received $3. GO in premium on his 3 strict mid- 
dling bales and $10.20 in premium on the 3 strict good middling 
bales, or a total of $13.80 above the price of middling for his 6 bales, 
instead of the $1.50 which he actually received. 
