MARKETING PEANUTS 41 
vailing in the South on that day, plus freight charges to his city. 
This method of purchasing is more expensive to the consignee than 
buying direct from the mill in car lots ; yet when the market appears 
weak the trade is often willing to pay a higher price for a few sacks 
of peanuts, rather than buy heavily on an unsettled market. 
TERMS GOVERNING SALES BY CLEANERS AND SHELLERS 
Peanuts in the Virginia- North Carolina district were formerly sold 
by cleaners and shellers on the basis of cash in 30 days less 1 per cent 
for cash in 10 days from date of invoice. In recent years when, 
because of high prices, a large volume of money would be tied up in 
accounts by the 30-day credit plan, the basis on open billings has been 
changed to net cash in 10 days. Another strong reason for this change 
was that many purchasers would wait the full 30 days and then send 
in the remittance less 1 per cent, causing considerable correspondence 
in straightening out accounts. No discount is now allowed for cash 
by most of the cleaners. 
Several of the cleaners have endeavored to insist that their bills 
always be honored within 10 days of the date of the invoice, but with 
only partial success. The shipper, having sold the peanuts f. o. b. 
shipping point, disclaims further responsiblity after the transporta- 
tion company has receipted for the shipment, and expects payment 
within the time specified. A long-distance shipment, however, is 
often over 10 days on the road, and the buyer sometimes prefers to 
defer payment until he has an opportunity to inspect the goods. If 
the shipment does not come up to the contract specifications he may 
deduct from his bill the adjustment amount agreed upon before 
remitting payment. This throws upon the shipper the burden of 
collecting any railroad claim that may be filed. 
Fully three-quarters of the shipments from the Virginia- North 
Carolina territory are billed "open," on straight bills of lading, on 
terms of net cash in 10 days. The remainder of the shipments are 
made on order bills of lading, on terms of net cash demand draft with 
bill of lading attached. In such cases the purchaser must pay the 
draft, which is for the amount of the invoice, at the bank, before he 
can obtain the bill of lading which entitles him to the possession of 
the car. Frequently banks allow the shipper to take credit for all or 
a portion of the invoice value of the shipment against which a draft 
has been drawn, which assists him in financing his business. 
Many shellers in the southeastern and southwestern sections, who 
had become accustomed, through their cottonseed oil activities, to 
sell on the " usual terms" basis of draft attached to the bill of lading 
and payable on the arrival of the goods, have preferred to sell peanuts 
in the same way. Although their regular credit terms would appear 
less liberal than are those extended by Virginia- North Carolina 
shippers, more lenient terms are sometimes allowed. Few shipments 
from the Southeast are billed "open" on straight bills of lading. 
CAR LOADING AND TRANSPORTATION 
The quality of the peanut is not likely to be adversely affected 
while in transit. Its high oil content insures it against freezing 
injury in winter, and its composition is such that it does not readily 
deteriorate in warm weather. Thus the use of box cars instead of 
