MARKETING PEANUTS 
13 
The grower who is able to hold his crop may haul or ship his 
peanuts to the warehouse as the weather permits, and receive a ware- 
house receipt. As the modern warehouses are well- ventilated and 
practically fireproof and rat-proof, peanuts can be stored in them 
under conditions far superior to those obtainable on most farms. 
The value of the commercial storage located near a peanut factory 
or at track side is especially evident during periods of prolonged bad 
weather. At such times the condition of the roads renders it difficult 
for the farmer to haul his peanuts to market, and the mills may then 
be obliged to replenish their stocks by drawing on the warehouse. 
Further, it is only natural that mills should prefer to have goods 
delivered to them from a clean, dry storage than from the type of 
storage available on most farms. 
The warehouse receipt may be either negotiable or nonnegotiable 
and may be pledged as collateral at almost any bank for a loan of 
Fig. 3.— Farmers' stock peanuts in a commercial storage in Virginia. The use of tags assures the 
owner of having his own stock returned to him or sold for his account 
usually not over 60 per cent of the market value of the peanuts. If 
the grower or merchant does not care to handle the loan through the 
bank, he may hypothecate or surrender his warehouse receipt to the 
warehouseman, who will usually advance as much as 60 to 75 per 
cent of the market value of the peanuts at the prevailing rate of in- 
terest. Proper loss clauses are attached to the insurance policies in 
favor of those making the loans. In the event that prices decline, or 
the bank deems itself insecure for any reason, it may demand addi- 
tional collateral or a reduction in the loan. Usually however, peanuts 
having loans against them are sold through the warehousemen when 
and as directed by the grower or merchant storing them. The 
amount of the loan, interest, storage charges, and the commission 
charge of usually 2J/£ per cent, are deducted when the sale is made, 
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