The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-04-19
UNCLE SAM IS BACK
OF BONDED ELEVATOR;
RECEIPTS NEGOTIABLE
BY WILLIAM r. SANBORN.


vantages offered by dealing and stor.
ing with elevators which are duly Ii
censed by the government, it is moi
unlikely that many will insist on hav-
ing farm elevators take out the nee
essary papers.
The four commodities for which ele-
are: Grain, cotton, tobacco and wool.
Flax seed is considered grain" and
not classified as a seed. in this sched-
ule, we are told. And it is because
all of these can be graded and CLASH
fed that they. are listed among arti-
Giles for which negotiable warehouse
receipts can be issued. upon which
money may be borrowed from Federal
Reserve banks, or upon which any
banker may make loans suject to re-
discount by his regional reserve bank.
The advantage of holding such re-
ceipt is apparent. 1t enables the hold
er to borrow according to the market
value of his grain at the time the
loan is made. He cannot borrow the
full market price at any time, and
should grain fall low enough to en-
danger it's loan value. the borrower
can put up margin" or the holder
of the receipt can market the grain, ii
he desires, returning the surplus over
the face of the loan and interest to
the borrower. Such procedure is
seldom likely to occur.
An Inspector Visits Wayne.
A government licensed warehouse
inspector has been looking over the
grain storage facilities of the Rich
mond district during the past few
days, botn in Wayne and adjoining
counties. At this writing there are
no such warehouses in this section of
Indiana There are. however, four or
five licensed flourmill elevators in the
state, and from fifteen to twenty Ii
censor mills and elevators in Ohio
The Ohio farm bureau has opened the
cooperative marketing ball by the
lease of a large terminal elevator at
Cleveland, into which the surplus
stocks of the little cooperative ele-
vators may be dumped while awaiting
a time which owners of the grain may
consider opportune for selling.
How the Plan Works.
In a conversation with the inspector
we were informed that any individual
farmer can ship his grain to any
licensed elevator at any point desired,
have it graded and the receipt mailed
him. He can further mail that receipt
to said warehouse or elevator and
have his product sold, according to
his instructions If loan has been
made on the commodity the receipt
will show that, as it will then be held
bv his banker, with whom he can ar
range for such sale.
Now it is very probable that his
grain, tobacco or wool will have al
ready been sold But his receipt calls
for so much of that certain grade and
there is a sufficient supply invariably
on hand, duly insured for full value
to cover his wants. The government
sees to that through regulations and
inspection. for the warehouseman must
notify the Federal Reserve of receipts
issued and quantities shipped, and
must show cancelled receipts to bal
ance stocks received, sold and shipped,
and also outstanding receipts.
This measure has been in effect
since war days, say for past three or
four years. possibly. 1t was designed
primarily to help the farmer, but the
stress of war activities prevented the
completion of the work for long time,
though there are now elevators in the
corn belt which put this system into
effect about year ago, as this inspect
or stated. Now that farmers are ask
ing legislative action, and because the
farmer needs help in his marketing
the government is taking steps as
above.
Where the receipt is not cucumber
ed with a loan it can be mailed, to
any broker in any market selected,
for the sale of the quantity and kind
Of grain called for, and to whom that
quantity can be shipped.
Will Help Farmers.
This plan of dealing with licensed
warehouses will permit large growers
of grain. for instance, to ship direct
to terminal points and to receive ne
gotiable and transferable paper for
car lots. The small grower will be
accommodated at home and retain all
the advantages the plan offers.
This marketing plan is likely to
meet with favor, in general way, and
should prove helpful to cooperative
marketers. Such warehouses must be
bonded to cover capacity, or to cover
special bonded bins and ware rooms.
The government license and inspec-
ton fee is but 81 per year for ele-
vators having a capacity of 5000
bushels of grain and up to 100000