Produce
Exchange are the three great agencies for dealing in grain in the
United States. Buffalo, Duluth, Baltimore and Philadelphia are also
important markets. Adjuncts to these markets are the great terminal
elevators capable of holding almost indefinitely enormous quantities
of wheat and other grain. On the Pacific Coast all the wheat is
handled in the bags, as is the custom in the other markets of the
world. Canada and the United States alone have recognized the
principle that wheat and other grains will run like water, which has
been a prime factor in their competition with other nations.

Country elevators charge two cents a bushel for storage during the
first 15 days and 1/2 cent for each additional 15 days. The charge for
storage at terminal elevators for the first 15 days is 3/4 cent. The
farmer may thus store his wheat in an elevator in place of his farm if
he chooses so to do, although the wheat he thus puts in storage may
have been made into flour and consumed before he sells it. This may be
looked upon as a sort of intermediary step between storing wheat in
one's own granary and dealing in futures.

The country shipper pays 1/2 cent a bushel commission for the sale of
wheat. There is also a charge for inspection and insurance, and, in
case there is an advance payment, for interest. After five days there
are storage charges. This has given rise to the expression, gilt edge,
regular and short receipts, depending upon the length of time there
remains before storage charges must be paid. Every market has a grade
known as contract grade, meaning the quality that must be furnished
when wheat or other grain is sold without specifying the grade. In
Chicago No. 2 red winter wheat is the contract grade. Where grain is
sold or purchased by a broker, the brokerage is usually 1/8 cent per
bushel.

HAY MARKETS

At least twenty cities have adopted the rules of the National hay
association as to classes and grades of hay and straw. The southern
states constitute an important market for the hay of the north central
states, while Boston, New York and the mining towns of Pennsylvania
are important markets for the northeastern states. The size of bale
varies from 75 to 200 pounds. Small bales of 100 pounds each are
preferred in Baltimore, medium bales of 110 to 140 pounds in
Philadelphia, while New York and Boston usually deal in the larger
bales. The commission charges vary from 50 cents to $