14 BULLETIN 1401, U. S. DEPARTMENT OF AGRICULTURE 
During the past two or three years the charge for storage in com- 
mercial warehouses in Virginia has been about 4 cents for a 4-bushel 
bag for the first month, and 4 cents for succeeding months, with a 
minimum charge of 9 cents per bag. As the storage charge includes 
the cost of unloading, handling, reloading, and insurance, it will be 
seen that the cost of storing peanuts is only nominal. 
The warehousemen frequently obtain from the local banks the 
money needed to carry them. The usual arrangement is on a straight 
note up to a definite amount, after which the peanuts, as represented 
by warehouse receipts and insurance policies with proper loss clauses 
attached, are pledged as collateral for further loans. As some of the 
bankers and cleaners are stockholders in warehouses, and some of 
the cleaners and warehousemen are also stockholders in local banks, a 
close interest exists between them. 
UNITED STATES WAREHOUSE ACT 
In September, 1923, peanuts were named as a storable product 
within the meaning of the United States warehouse act, which is 
administered by the United States Department of Agriculture. 
The primary purpose of this act was to establish a form of warehouse 
receipt which would be acceptable generally as collateral for loans. 
Growers, merchants, cleaners, or shellers who store peanuts in ware- 
houses under this act, are afforded security from loss, as the ware- 
housemen are licensed by and bonded to the Government to preserve 
carefully and return the goods stored with them. Identical bags 
are returned if the peanuts are sacked ; but if in bulk, any peanuts of 
the same grade and quantity can be delivered, unless definite arrange- 
ments were made to preserve the identity of a special lot. The 
licensed warehouses are subject to Federal inspection at least four 
times each year. 
The warehouse receipts furnished by warehouses licensed under the 
warehouse act are accepted by banks generally, and in all cases by 
the Federal Intermediate Credit Bank, as collateral for loans. 
Up to September, 1925, a number of warehouses had been 
licensed by the Department of Agriculture for the storing of peanuts 
in the States of Georgia and North Carolina. Complete information 
on the subject can be obtained upon request to the Warehouse Divi- 
sion, Bureau of Agricultural Economics, United States Department of 
Agriculture, Washington, D. C. 
GRADES FOR FARMERS' STOCK PEANUTS 
One chief obstacle to the marketing of peanuts has been that well- 
recognized, definitely-established grades for farmers' peanuts have 
been lacking. For the Spanish type this condition has recently 
been corrected, by the offering of tentative grades by the United 
States Department of Agriculture. (See pp. 17 and 18.) Definite 
grades are also needed for peanuts of the other types. 
GRADES IN VIRGINIA-NORTH CAROLINA SECTION 
Peanuts of the Virginia type reach the consumer both in the shell 
and as shelled goods. When there is the customary price ratio 
between these two classes, it is more profitable for the cleaner to sell 
in the shell all peanuts that have the necessary size and appearance. 
