The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1907-06-25
WHEN TO SELL CROPS.

In theory the contract system OF
handling crops is unwise. but in prac-
tice it is necessary. We do much OF
our living in the future, or at least
govern ourselves in the present by
what we are able to determine of the
future. AS a general rule it is unwise
for man to sell what he does not
possess. and may never possess; but
since circumstances compel some men
to buy crops yet ungrown, such tran
sactions are sometimes necessarW.
says the Oregonian. The man who
operates a brewery in New York
knows that he must have certain
quantity of hops during the ensuing
year. and. unless he has a supply on
hand or feels certain that there will
be plenty for sale when he wants them.
he desires to make contract with a
merchant to supply his need. The
merchant in turn must protect himself
by making a contract through his
agent in the hopgrowing district. AMI
that agents solicits contract with the
grower
The man who invests his money in
the construction Of fruit cannery
must know that he will have a suffi-
cient supply of fruit from year to year,
so he desires to contract in advance
the crops of berries and cherries and
plums and other fruits The cannery-
man must buy his tin cans and sugar,
land employ his help in advance. He
mus therefore know in advance what
his needs Will be and he cannot know
unless he has contracts for the deliv-
cry of fruit. The prune packer is
similarly situated. The eastern jObber
wants to know what quantities of the
growing crop he can offer his custo-
mers. so he mus have contracts with
the packer if he is to do a safe bust
ness. The packer in turn must know
that he will have the quantity of cured
fruit to pack, so he seeks contracts
with growers. Each in turn tries to
fix prices which will yield a profit on
the transaction. Keen rivalry among
selling agents in irving to book orders
results in manv Of the advance con-
tracts which ultimately reach back 70
the grower. Because there is limit
to demand. and sometimes a sunply in
evcess of the demand growers may 10
we'll to make contracts long in ad-
| vance of crop ma turitv for if he de-
roand is TO he s1nnlied in pursuance
of contracts. he who loses the oppor-
| trnitv to sell when he NAV will he the
holder of the surnlus products and be
unable to sell when he would.
On the other hand. frequently it han-
mems that the demand exceeds the
SIMPLY and that after the advance
contracts have been files there is still
an active marke+ for more than re-
+he early contract figures and the pro-
9''onr who held his crop secures the
higher price
The contract system of handling
crops is necessary in some lines Of
business. but it must always be largely
speculative for everyone who engages
| in it. Whether a grower shall con-
tract his hops or his berries or prunes
must always be question upon which
each must exercise his judement and
unon which one mans Judgment is
pretty nearly as good as another's
Hopgrowers and dealers of m-,ny year
iHoDgrOwers and dealers of many
Years experience have erred in their
Judgment on the problem of contract
ING their hops. But so long as advance
sales continue to be feature of crop
marketing. the wise grower cannot re-
fuse absolutely to consider the ques-
ton of contracting. for if he does he
will often be left holding the surplus
crop. for which only a moor ma rk IT
if any at all. exists.