•.% Corttf U InterBttg BItbrarg BOUGHT WITH THE INCOME OF THE SAGE ENDOWMENT FUND THE GIFT OF 1S91: A:M^-33Z. Z^l/717 sa"* RETURN TO ALBERT R. MANN LIBRARY ITHACA, N. Y. ! Cornell University Library HD 9049.W4G78 East India (Wheat ; reports and papers o 3 1924 013 848 902 V, Cornell University Library The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924013848902 BAST INDIA (WHEAT). REPORTS AND PAPERS ON IMPTIRITIES IN INDIAN WHEATS, 1888-89. Vvt^mWO to bot^ lBiomt» of PArltanteitt 6s r w T- 1 TT- .L o *^® ma^in,* and inquired whether they would ''T'Str2^l™th^ ^l^^rantee a higher price t^ clean wheat for „ Baffi Brothers. t"^ same quality of grain mixed with 5 per cent. of dirt. It wiU be seen, from the correspondence which is annexed, that none of these firms were at that time in a position to offer higher prices for clean grain than for the same grain mixed with 5 per cent, of dirt ; but they expressed their TwUingness to send samples of pure wheat to England, if supplied with it by the Manager of the Dumraon Baj or Government, with a view to ascertain whether it would there fetch an adequate price. Messrs. Marshall, Sons, & Co., Gainsborough, England, about this time proposed to bring one of their steam wheat-thrashing machines from Bombay, and Jiy means of it to clean wheat down to 2 per cent, of impurities, and also to purqhase some wheat thus thrashed and cleaned, and send a small consignment of 2Q0 tq WO tons of it to England, in order to ascertain whether it would command a hioher price than ordinary Indkn wheat mixed with dirt. They asked Government to 1:o-onerate B 2 12 by making a grant of Rs. 1,000 towards defraying the charges of carriage of the machine. This grant was made, and the machine was accordingly brought from Bombay and tried at Dumraon in May last, 7. It was found that the machine failed to separate wheat from hhut or gram, and it was then too late to obtain a sufficiently large quantity of wheat whicli had been grown alone to permit of the original plan, of sending two or three hundred tons to England; being carried out. Experiments were, however, made on a limited scale, and samples of the steam-thrashed grain were sent to the Chamber of Commerce, to the Agri-Horticulttiral Society, and Messrs. Ralli Brothers, for appraisement. The reports of the Chamber of Commerce and of Messrs. Balli Brothers are annexed. According to the report of the latter, the grain thrashed in the ordinary way contained 5| per cent of impurities, the steam-thrashed wheat contained only 1|. But the steam-thrashed wheat, on the other hand, was to some extent chipped and broken. Messrs. Bain Brothers point out that it is impossible to fix the relative values of the two samples, and add that if the steam thrashed sample were delivered against a contract, allowing 5 per cent, refraction, the seller would derive no advantage from the superior purity of the sample. The Committee of the Wheat and Seed Trade Association say that the bullock-thrashed grain contained 9 per cent, of foreign matter, and was practically unmerchantable, while the steam-thrashed wheat refracted only 3f per cent. The value of 100 maunds of the former they put down at Rs. 279, and of the latter at Rs. 290. 10. 8. It' will thus be seen that these experiments, though they show that wheat can be cleaned down to 2 or 3 per cent, of refraction, yet are not decisive on the question whether wheat so cleaned will command an adequate price. 9. It will, however, be satisfactory to Government and the public to learn that Messrs. Ralli Brothers have, as will be seen from their letter dated 21st July 1887 (reproduced as an annexure to this letter), lately shipped to Marseilles two samples to be there sold on their merits, one with 6 per cent, refraction, the other cleaned down to*3 per cent. The former cost Rs. 2. 14. 4 per maund, the latter Rs. 2. 15. 11, including cost of cleaning at three pie per maund ; and it remains to be seen whether the latter will command such a price as would make the repetition of the experiment on a large scale profitable. I entirely agree with Messrs. Ralli Brothers " that " improvement in the condition, or rather impurities which are contained in Indian " wheat, will result in accordance with the requirements of the consuming countries ; " if they wish to receive cleaner wheat and pay for it accordingly, cleaner wheat will " be exported, because exporters will adapt themselves to the requirements of " consumers." But I differ from them when they say " at the same time this result " will also be obtained by the endeavours of the Agricultural Department in the way " of impressing on cultivators the necessity of supplying wheat as free of the " admixture of other grains as tliey possibly can." I think there is a tendency to attach too much importance to the influence of Government officers in such matters, at least in Bengal. Ryots, if urged by Government officers to do anything which it is their interest or inclination to do, are only too willing to accept such advice, and to shield themselves behind it ; but when there is a question of doing something which it is not their interest or their inclination to do — for instance, payment of public cesses — ^the advice of Government officers goes for little, and their interference in matters which do not fall within their province, when not necessary, does more harm than good. Concerning the question under discussion, I have heard of a case in point in which ryots having been urged by their Sub-divisional Magistrate to sow wheat without mixture of other grains, showed their appreciation of his interference by dropping the cultivation of it altogether. 10. It appears to me that it is as unreasonable to dictate to the growers of wheat in this matter, as it would be to dictate to the shippers in Calcutta what their pecuniary interests may be, or to expect them to act in a manner opposed to those interests. But it is also as futile 'to blame the producers for growing other crops with wheat if they find it profitable to do so, as it is to impute blame to merchants in Calcutta for purchasing and shipping wheat mixed with dirt so long as there is a demand for dirty wheat in Europe, and adequate profit cannot be obtained by shipping clean grain. The experiment now being made by Messrs. Ralli Brothers will tend to show whether such profit can be obtained. If it should turn out that a remuner- ative price can be got for clean grain, then there can be little doubt that 13 Messrs. Ralli Brothers woulS ship clean wheat, that the example set by them would »,„,... „ .,.,..,. .be followed by others, find that *" The report IS in answer to a Govermnent circular, in which, amongst ,, j- j.- 1 1 -t-Vi Vi other things, attention was directed to the necessity of ohtaining clean grain tQe retraCtlOn WOUlCl tnUS 06 d for export. It appears that at present the grain is mixed with dirt, &e., and sOOn rcduced. If OD the Other it has also been ascertained that this is a fault that could be rectified were it , i •! ■ p j iU j- not for a peculiar trade custom. The Calcutta merchants (who in their turn XXanCl, it IS lOUnd tnat COnSUmOrS declare that they act under tho compulsion of the merchants in England) j-^ EurOOe VVOfsV dirtv wheat insist, when buying wheat, upon making a, 5 per cent, deduction for im- . „." ^ j! i ' purities, no matter how clean the samples may he. Cdnsequently, the inter- and. Will nOt pay lOr 3 Clean mediary who sells takes good care that this percentage of impurity is attained, article then aS the " EcOnO- and if it should be the case that the grain he has to dispose of comes to him •!})' "i'l +• a clean from the cultivator, he at once sets about to adulterate it by mixing two miSt pointed. OUt in 8, notO in maunds of earth with every hundred maunds of grain. Although this result •J+g igg-no dated 16th Octobcr of their rule has been pointed out to them, the Calcutta merchants have the -,oon £ i.- i. j. l • boldness to ask that the Government should come to their assistance. lOOD, irom WBlCIl an CXtraCt IS Speaking for themselves and for the Committee of the Wheat and Seed quoted in the marsfin,* the fault Trade A ssociation, the Bengal Chamber 01 Commerce ask that ' Government -..o i? ij. -j. r, \ mi r, u ' ofiioers should be instructed to impress upon the cultivators and middlemen (It lault it uGj Will naVe been • the importance of keeping their wheat as clean as possible.' brOUffht homO tO the riffht par- "And no doubt it would be very pleasant for the members of those j- j •!> j. • i. Associations, and for merchants here as well, if they were enabled to get their tiCS, and II remOnstrance iS tO full 100 per cent, of clean wheat while paying only for 95 per cent, of wheat >.„ orlrlvooaofl ny rii-ootmi^Q lo 4-n \\a and 5 per cent, of dirt. The cultivator or Native dealer, however, naturally P® aaareSSeU Or prCSSUlC IS tO 06 takes a different view of the transactions. If you want wheat, he says, yon brOUght tO bear by Govemmont must pay for it, and if you only pay for dirt, then dirt you will have. This on anv nf tVlP navHp<5 pnufprmprl is only reasonable, and Mr. Knucane is quite rigtt when he expresses the "" f^J ^^ ^^^ ycLlWi, UUUCeiueu, opinion that, so long as the rule of the merchants remains as at present, ' if SUCh remOnstrance WOUld haVO « Government officials interfere at all in the matter, it should be by explaining f„ y.^ aArlvoaaaA Itit- TTq« 'MTaAad-n-'o ' to the cultivators that it is in their interest to mix at least 5 per cent, of [*' "^ d'UUiebheU Oy Jier JViajCSiy S ' foreign matter with clean grain before offering it for sale.' It is a pity. Secretary 01 State tO merchants however, that the Indian wheat trade should be hampered by such absurd .:„ "Rnvn-np Tf rvmof Vi a-rr rules, and it is desirable that it should be clearly understood here where ^ JiUluptJ. J.L mUSt, nOWeyer, responsibility in the matter mainly rests." — " Economist," of 16th October bc remembered that it WaS not ^*®®' Government or any of its officers who first moved in this matter, but that it was the Bengalf Chamber which drew attention to the evil complained of, and requested t ride their letter, dated the 24tb July Government to take action, and that all Govern- 1883, to the address of the Government of ,^^„4. i,„„ j„..^„ ;„ „«v,Ut ,•„ +« • .*• .l j--u i j.t- India, Revenue and Agricultural Depart- ^^ent has done in reply IS to point OUt that the ment. action suggested is not legitimate, and that the remedy for the evil lies in the hands of the merchants either here or at home, or in the hands of the consumers in Europe. In this connection I would take this opportunity to remark, that when in a former report it was said by Mr. Allen that the employes of Messrs. Ealli Brothers had told the Manager of the Doomraon Raj to mix two maunds of dirt with every 100 maunds of wheat, it was not meant to imply that Messrs. Balli themselves, or any of their European assistants, recommended anything of the kind, though some of their subordinates certainly did so. So far from imputing any objectionable practices to the Messrs. RaUi or their principal asistants, I have to acknowledge my thanks to them, as well as to the Chamber of Commerce, for valuable advice and information in my inquiries on this question. With regard to the experiment in shipping clean samples, now being made by Messrs. Balli Brothers, it may be here observed that as nineteen twentieths of the wheat shipped is sold before it is bought by Calcutta shippers, the result of the sale of a small parcel of clean wheat ctfter arrival in Europe must not be too readily expected to upset the conditions under which the trade has hitherto been worked. As all shipments of Indian wheat are now either approved or disapproved by home buyers after a comparison with a standard sample of average shipments made up monthly by the London Corn Trade Association, the sales of clean wheat must either be made on small samples sent home from here, or wheat, like seeds, must be a^ialysed at home. In either case, it will be slow and difficult work to introduce a marked and sudden innovation into a well established trade. 11. With a view to test the relative merits of steam threshing and threshing by having grain trodden out by bullocks, in the ordinary Native fashion, one ton of wheat was carefully weighed and passed through the steam threshing machine at Duinraon. It took 40 minutes to pass through, but the engine was not working with full power. Mr. Scott, the mechanic in charge, was of opinion that with full power the work would have been finished in half an hour. Besides Mr. Scott, a Native mechanic and six coolies were employed in working the steam thresher. When threshed the crop was weighed, and the results were, — . Cwts. qrs. lbs. Of clean gram - - - - 8 3 3 Of cattle food - - - - 1 13 Of straw - - - - 5 3 14 Of chaff - - . - - 4 3 20 19 3 22 B3 14 12., One ton of tl|uB same wheat was next threshed in the Native system. iWi^h 10 bullocks this work took eight hours to complete. Four coolies were employed in threshing for eight hours, and the same number, in winnowing for four hours. The cost of threshing in this case came to lie. 1. 11. Thus, — K. Hire of 10 bullocks at 1^ anna each - - Wages of 4 coolies for 8 hours - - - Ditto, ditto, for 4 hours - - - 1 11 Or, say, two annas per maund of threshed grain. When threshed the weight of grain and straw was as follows : — Cwts. qrs. lbs. Grain - - - - - 9 2 16 Straw - - - - - 9 3 A. V. 15 8 4. 19 1 15 Taking the value of the steam-threshed grain, as estimated by the Chamber of Commerce, at Es. 290, 10 per 100 inaunds, and the bullock-threshed grain at E/S. 279 per 100 maunds, the financial results stand thus — ' _ ' 100 tons of unthreshed corn if threshed by steam machine will yield — 1,200 maunds of grain with 3f per cent, refraction, valued at lis. 290. 10 per 100 maunds by Chamber of Commerce Es. (omitting fractions) ------ 3,487 100 tons of unthreshed corn if threshed by bullocks will yield — 1,316 maunds of grain with 9 per cent, refraction, valued at Es. 279 per 100 maunds ------ 3,671 Difference in favour of bullock threshing and dirt per 100 tons of unthreshed corn - . - . - E s. 184 Against this balance in favour of bullock threshing must, however, be set off : — («) Cost of carriage of 116 maunds of extra dirt from Dumraon to Es. Calcutta, at Es. 39 per 100 maunds - - - - 45 (6) Extra cost of bullock threshing as compared with steam threshing, - at 1 anna per maund, on 1,316 maunds < - - - 82 127 TJie difference in favour of bullock threshing is Es, 67. It thus appears that even after making all reasonable deductions for carriage of dirt and for saving of labour by steam threshing, the balance of advantage to the ryot, according to the figures furnished by the Chamber of Commerce, would still be on the side of bullock threshing and admixture of dirt. I have taken the cost of steam threshing at 1 anna per maund, as estimated in Bombay; but as labour is cheaper in Behar, this would possibly be above the mark there. It is, however, to be remembered, on the other side of the account, that the initial cost of the machine, the .interest on the capital outlay on it, the difdoulty of obtaining skilled men to work it, the difficulty of providing other suitable employment for such men when lihe )n.echjne is not at work, have all, been left out of consideration. 13. These results are only of interest in making a comparison between the relative merits of steam threshing and threshing by bullocks, and do not affect the question of refraction. As regards the latter point, it is immaterial whether clean wheat is produced by steam threshing or ^ny other , way. The crucial question is — will clean grain,, however produced, fetch a remunerative price as compared with unclean grain, and the. aiaswer would appear to be in the negative, so far as wheat threshed with Messrs. Marshall and Company's machine in. Behar is concerned, at least so long as the present' system of refraction continues. Purther experiments with the steam thresher will, however, be made under more favourable conditions next year, and meanwhile it is hopigd that improvements will be made by which, with suitable arrangement of sieves and screens, the machine will separate tvheat; from gram and oilseeds. There is not, however, in my opinion, the remotest chance of these machines coming into general use by ryots Individually or collectively, though it is possible 15 that large landholders here 'and there may purchase a few of them if a portable machine, carefully adapted to the conditions of Indian agriculture, can be supplied. Indeed, one such landholder, who grows wheat largely in Bhagulpore, has expressed a strong desire to obtain a machine of i\m kind, and has explained that the loss he suffered this year, by being unable to have his wheat threshed in due time before it became damaged by a fall of rain, would more than pay for one of M^srs. Marshall and Company's machines. 14. " Connected with the question of the condition in which wheat reaches this " market is," the Chamber went on to remark, " the very important question of the " accommodation for it provided at up-country stations, especially on railways " other than the East Indian line. It is hopeless to expect to improve the hold of *•' Indian wheat on European market so long as there is nothing at certain times to " prevent its reaching Calcutta weather damaged. The absence of proper and " sufficient accommodation at railway stations for receiving wheat has mulcted " shippers in very heavy allowances, and is one of the main causes of bringing Indian " wheat into disfavour with home consumers. The wheat season extends from April " to October, and as soon as the rains set in the lack of proper accommodation " results in a portion of nearly every parcel arriving damaged. Not only is the " shelter insufficient, but in many cases the railway platforms are not raised to the " point of safety from casual inundations. The railways endeavour to protect " themselTes by granting to a consignor clear railway receipts against Ms indemnity " note. This practice, when regard is had to the short time allowed at Howrah for " the examination of wheat by consignees, and also to the limited facilities they enjoy " for such an examination, results in large quantities of damaged goods passing " undetected, to the manifest and serious 'loss of shippers. " The Conmiittee of the Chamber of Commerce would in the best int-erest of the " wheat trade bring this question of the accommodation at up-country stations " very strongly to the attention of His Honour the Lieutenant Gfovernor." 15. The complaints to which reference is here made relate, I believe, principally to ' up-countiy stations beyond the territories subject to the Lieutenant Governor of Ben^ ; but it would no doubt be very desirable to provide further accommodation at Howrah and to allow greater facilities there for examination of wheat by con- signees. The authorities of the East Indian Railway are fully aUve to the importance of this question, and are, it has been ascertained, in correspondence with the Grovemment of India regarding it. 16. In my report, dated 7th July 1876, attention was called to the superiority of Buxar wheat to that locally grown in Bhagulpore. Buxar seed was accordingly tried in many districts, and samples of the grain thus produced were sent to the Chamber of Commerce, together with samples of local grain, and their values were appraised. The results are not everywhere as satis- factory as might have been expected, but the quality of the Buxar grain is almost everywhere superior to that locjJly produced. Eurther supplies of this seed are now being asked for. The best grain produced in B^igal and Behar is that sent by the Manager of the Deo Raj in Gya, who will be asked to furnish more of this grain for seed. I have, &c., M. EnnjCA:NE, Director of the Agricultural Department in Bengal. From M. Finucane, Esq., to Messrs. Balli Brothers, Messrs. Vale King & C0.5 and Petricochino & Co., dated Calcutta, the 2nd April 1887. It has been proposed to introduce wheat steam threshing machines in Doomraon by which clean wheat can be produced. The Manager of the Doomraon Raj is willing to try one of these machines and produce pure wheat, if he can obtain a higher price for it than he would receive for the same grain mixed with dirt. I beg to inquire whether you M*e prepared to give a higher price for perfectly clean wheat grain than for the^same quality of grain with an admixture of 5 per cent, of dirt. I should be glad to discuss the subject with any person whom you may depute to my office to-day between 3 and 4. B 4 16 From Messrs. Ralli Brothers to M. Finucane, Esq., Director of the Agricultural Department, Bengal, dated Calcutta, the 2nd April 1887. We are in receipt of your letter of date, and in reply beg to inform you that the Manager of the Doomraon Raj had a long interview with us two or three months ago, ■when we explained the matter fully to him. We told him that the most practical way for him to dispose of this question is to send us large samples of wheat with various admixtures, when we would make him our offer for each quality. In a general way, we say that the clean wheat could obtain a higher price than the dirtier one ; but the price paid will • also depend on the special outlet which may exist at the time for the clean wheat. If the Manager of the Dumraon Eaj is ready to offer us to-day clean wheat, stating the admixture and quality, then, if the price asked for is not too high as compared with the price asked for 5 per cent, stuffy we might see with our home friends whether there is any chance of doing business in wheat thus cleaned down. From Messrs. Vale King & Co. to M. Finucane, Esq., Director of the Agricultural Department, Bengal, dated Calcutta, the 2nd April 1887. In reply to your favour of date, we shall be pleased to forward to London a sample of pure wheat, with the object of being able later on to offer you a better price for such wheat than we can at present. We must either sell in London on standard sample of No. 2 Club, &c, or, for a specially good quality, on a sample submitted by the seller. Our experience goes to show that the home buyers prefer buying on the ordinary standards to paying an extra price for a special quality ; but we shall willingly try and introduce the better quality you propose into the London market. We regret that Mr. Petrie cannot wait on you to-day ; but if you will appoint a time next week, other than on Tuesday, Wednesday, or Friday afternoon, he wiU be happy to discuss the subject with you. [Mr. Petrie afterwards did discuss the subject, and informed me that he could not guarantee a higher price, and added that Government might do something towards getting merchants in England to give higher prices for clean grain by introducing a new brand of wheat cleaned to 2 per cent. Messrs. Petricochino referred me to the Chamber of Commerce, and gave no further reply.— M. F.] From Messrs. Ralli Brothers to M. Finucane, Esq., Director of the Agricultural Department, Bengal, dated Calcutta, the 23rd May 1887. We have received the two samples you mention in your letter dated 18th May, and have to report on them as follows : — 1st. Wheat threshed by the ordinary Native method. — ^This sample contains too many red grains, viz., 35 per cent, and 65 per cent, white, whilst good Buxar quality should contain about 20 per cent, red and 80 per cent, white. This sample would be worth to-day Rs. 2. 13. 6 per maund, whilst good quality wheat would be worth about Rs. 2. 14. 6. The refraction of this sample is 5^ per cent., so that if a seller delivers such wheat against a contract with 5 per cent, refraction, he would have to pay an allowance for the \ per cent, excess refraction. 2nd. Steam-threshed wheat. — This wheat is spoiled by the machine, many grains being broken, and we would not ship such wheat, as it would pay an allowance at home. The refraction is If per cent. ; but if this wheat were delivered against a contract allowing 5 per cent, refraction, the seller would obtain no advantage from the lower refraction it contains. If, however, the wheat were sold on a sample, and it did not contain the broken grains above referred to, it would obtain a higher price than the sample containing b\ per cent, refraction. It is impossible to fix exactly the relatively higher value of the clean wheat until the requisite records have been received from the consuming countries ; and all we can say at present is that, in a general way, the wheat,if not broken, would fetch a 17 better price if sold on a gua^nteed sample, or if the seller gaaranteed by coatracfc the lower refractioa which the sample coatains. We do not know what opinion you will receive from the Association, as we are not %iembers. The above is our opinion. From 6. M. Barton, Esq., Assistant Secretary, Wheat and Seed Trade Association, to M. Finucane, Esq., Director of the Agricultural Department, Bengal, dated Calcutta, the 2nd June 1887. I am desired by the Committee of the Wheat and Seed Trade Association to acknowledge receipt of your letter of the 18th ultimo to Mr. Clarke, and also receipt of the two bags of wheat produced at Doomraon, in the Buxar sub-division, one steam-threshed, and the other the same grain threshed by the ordinary Native process. In your letter you ask the Committee to appraise both, and to let you know their relative values, with their opinion on them generally. In reply, I b^ to say that the Committee have carefully examined the wheat in each of the two bags, and I am directed to send you the following report, which embraces their opinion upon each of the two descriptions. The bullock-threshed sample refracts 9 per cent., of which 8£ per cent, is mud and other grain, and ^ per cent, damaged and withered grains. Wheat with such an admixture is practically unmerchantable for export, and it is difficult to put a value on it as it is. The sample of steam-threshed wheat refracts 3f per cent, according to the usual system of refraction, but of this 1^ per cent, only consists of damaged grains and substances other than wheat, and 2^^ consists of grains crushed and broken by the machinery. This broken and crushed wheat is very unsightly in the sample, and would probably detract considerably from its value in the home market. The colour is considerably inferior to good Buxar No. 1 Club, being very yellow, and the sample is much mixed with red grains. This wheat would not pass in this market as averse Buxar No. 1 Club, and it is difficult to place an exact value on it ; but, if sold on sample, it would probably fetch about 1 anna per maund less than average Buxar, or say, in the present market, lis. 2. 14. 6 per maund. It is doubtful whether, with its present admixture of crushed and broken, grains, this wheat would sell for a better price than the same quality with an ordinary admixture of 5 to 6 per cent. With reference to your inquiry as to what difference in price would a htmdred maunds of the steam-threshed grain fetch over the sample threshed in the ordinary way, I am directed to give you the following figures : — R. A. p. 100 maunds steam threshed, at Rs. 2. 14. 6 - - - 290 10 100 maunds ordinary threshed, at lis. 2. 14. 6. Less 4 per cent, excess re- fraction - - 279 Difference - - - Rs. 11 10 per 100 mds. I return the bag of wheat as requested, and I also send you, by desire of the Committee, a sample of a good delivery of Buxar No. 1 Club, and a sample of the Committee's standard of May shipments of No. 2 Club, Cawnpore-Lucknow quality, which may be of use for purposes of comparison. From Messrs. Balli Brothers, to M. Finucane, Esq., Director of the Agricultural Department, Bengal, dated Calcutta, the 21st July 1887. In reply to your last inquiry, what we have done is this : — We wished to see in a practical way the comparative value on this side and at home of cleaner wheat as compared to the average run of the dirtier stuff which is procurable. / 58411. Q 18 As this cannot be so satisfactorily aseertaiAed by bulky samples only, we instructed our Agency at Buxar to purchase a parcel of wheat and despatch to us one portion of it in its natural uncleaned state, and the other portion after having reduced the refraction contained in it (viz., everything which is not wheat)- as much as they could. Our Agency has done this, and they sent us down two parcels, thus handled, of some 100 bags each. At the same time we have received the respective invoices, and the result is the following : — The wheat bought contained about 6 per cent, refraction. The parcel despatched in its original state, viz., with 6 per cent, refraction, costs us, arrived at Howrah, Rs. 2. 14. 4 per bazaar maund The parcel despatched after having been cleaned down to about 3 per cent, costs us, arrived at Howrah, lis. 2. 16. 11 per bazaar maund. The extra cost, therefore, of the cleaner wheat came to 1 anna 7 pie per maund, which is equal to about lO^d. per quarter at home. The expense of cleaning, taken by itself, is not a very heavy one, because it comes to about 3 pie a maund ; but the final expense is so very much enhanced on account of the incidental expenses in the shape of importing into godown, storing, repacking, exporting, &c., &c., which are incurred, and which, but for the cleaning, would be saved, and of course also by the lost of weight incurred, viz., 3 per cent., whilst the expenses saved by not shipping this 3 per cent, are small only. The original parcel was cleaned by hand labour, and was cleaned twice; but in spite of this the refraction was not reduced to less than 3 to 8^ per cent, on account of the food grains which ifc contained, chiefly kessary and mussoory, which cannot be got rid of because they are of about the same size and weight as the wheat. if we were to apply extensively the system of cleaning wheat, we might be able to improve matters somewhat, but not to any really appreciable extent. The .above parcels we are shipping to Marseilles, and when they arrive there they will be sold on their merits, a,nd we shall know then what the actual result of the experiment will be ; but as the extra cost of the cleaned wheat, which I give you above, is equal to quite half a franc per 100 kilos, we do not expect to obtain in Marseilles a higher price such as to compensate for the higher cost, and besides this, though the experiment made is a very practical one, it would require to be repeated so as to form a definite conclusion. Besides, we cannot depend on having always a regular outlet for this wheat. , As I know that you take much interest in this question, I thought that you would like me to explain to you what we have done in a detailed way. As regards the general question of Indian wheat on this side of India, nothing fresh has been done lately, and wheat continues to be shipped in the same way as previously. As you know, my opinion on this subject is that an improvement in the condition, or rather in the amount of impurities which are contained in the wheat shipped will result in accordance with the requirements of the consuming countries, viz. if thev wish to receive cleaner wheat and pay for it accordingly, cleaner wheat will be exported, because exporters will always adapt themselves to the requirements of the consumers. At the same time, however, this, result will also be obtained by the endeavours which the Agricultural Department will continue in the way of impressing on cultivators the necessity of supplying wheat as free of the admixture of other grains, &c., as they possibly can, because, as you will see also from what I write above of the experiment we made at Buxar, it is quite clear that whilst dust and such like matters can be extracted from the wheat, the edible grains, &c., which the wheat contains cannot be equally so, and these grains constitute a great proportion of the admixture. In conclusion, my opinion is that the supplying of cleaner wheat cannot be forced upon- either shippers or cultivators; but that whilst the former will conform them- selves to the requirements of trade, the tendency of which is to receive purer wheat the latter should continue to be urged by Government to bring down their wheat in 19 a purer condition by restrictmg, as much as possible, the present system of sowing mixed crops and the like. I shall be obliged by your informing me whether the information I give you is all that you require at present. Report on Impurities in Indian Wheats. No. 2. Clifton House, GreenAvich Park, S.E., Sir, 13th November 1888. In continuation of my letter of the 22nd August last, and with reference to your letter of the 22nd September following, I have now the honour to submit the accompanying tabular statements, showing the percentage of admixture of white and red grains, and of dust, dirt, and seeds, and also the amount of weeviUed and otherwise damj^ed grain in the monthly average samples of the various denomi- nations of Indian wheats imported into England last year. Similar analyses of other wheats are also added for the purpose of comparison. (See Appendix A.) I was most kindly supplied by the London Corn Trade Association with their monthly standard samples, which are drawn from the Indian wheats arriving in Great Britain, and forwarded to London for this purpose; and I was also kindly supplied by the Liverpool Corn Trade Association with their sample of choice white Bombay wheat. I have carefully retained all the samples and the separated portions, and shall be prepared to submit them for your inspection. The white wheats, when separated from aU admixture, are of a very fine quality, equal to the finest in the world, and if they could be so shipped, would command the highest price. The importance of shipping wheats free, from adulteration cannot be expressed in better terms than in the letter of the Honourable F. Forbes Adam to Lord B/Cay, and I wouM suggest that it should be published with this Report. (See Appendix B.) Buyers of Indian wheats are under the impression that they cannot obtain them otherwise than in their present^foul condition, and many supply themselves with early shipments only, by steamer, for their immediate requirements, and via the Cape to arrive later. Thie analysis points to the intentional admixture of impurities in the later months of the year. I have heard it stated that French buyers obtain Indian wheats in a superior condition and at a higher price than we do. I would suggest that inquiries be made and samples obtained from Marseilles to ascertain if this is so. I am. Sir, Tour obedient Servant, John M'DottgaiiIj, F.C.S. The Under Secretary of State for India. C 2 20 APPENDICES. APPENDIX A. Table No. 1. Indian Wheats imported from Calcutta. Date. Bed. White. Admixture. Weevilled. Damaf^ed. Description of Wheat. Barley, Total Loss. Dust. Dirt. Seeds. Oats, or Eye. Total. 1887. No. 1 Club Calcutta (White) May 16-4 80-4 •9 •7 1-4 ■2 3-2 ■1 •2 3-5 j> > 1) June 19'1 77-1 ■1 1-4 1'8 •5 3-8 •8 •3 4-9 No. 2 Club Calcutta (White) - March 21-3 77-1 •5 — •6 •5 1-6 2-3 3-9 )5 » >i April 31-1 66-2 1-1 — •6 1-0 2-7 — 4-1 6-8 JJ J> J> May 25-8 71-0 •4 •4 •9 1-5 3-2 •3 1-2 4-7 » 9i n June 35-1 62-0 •8 — ■9 1-2 2-9 — •9 3-8 » a )) " July 44-8 50-0 1-6 •5 1-9 1-2 5-2 •7 — 5-9 »j j> »• August 42-8 50-2 3-0 •2 2-2 1-6 7-0 2-0 1-3 10-3 » » >5 September 39-) 56-2 ■9 •5 1-7 1-6 4-7 3-5 •6 8-8 t> ?j >j October 37-5 58-0 1-.5 ■4 2-0 ■6 4-5 2-2 ■8 7-5 S3 J» J' Novembei 35-0 59-1 1-7 •8 2-2 1-2 5-9 5-1 1-4 12-4 Hard Calcutta April 37-8 58-8 •7 1'2 •6 •9 3-4 — •4 3-8 J> 3» " May 41-5 55-0 •8 1-1 •8 •8 3-5 •1 •2 3-8 >> S? " June 39-4 58-4 •3 •4 •8 •7 2-2 •7 •8 3-7 J) 5» " ~ October - 31-2 63-2 3-9 •4 •9 •4 5-6 2-2 •3 8-1 'J >J November 38-2 53-3 6'6 •6 •9 •4 8-5 4-2 1-4 14-1 >S 3J December 31-1 66-0 •5 •4 •9 1-1 2-9 5-7 1-0 9-6 Soft Bed Calcutta April 93-8 1-8 1-3 1-2 1-1 •8 4-4 •4 4'8 >? H May 90 ■.'5 6-6 ■9 ■8 1-3 •9 3-9 •2 •6 4-7 » js ■" June 87-7 7-4 1-7 •6 1-1 1-5 4-9 1-3 •8 7-0 July 89-9 2-7 4-8 •5 •7 :-4 7-4 •8 — 8-2 J» S» August 90-5 3-8 1-6 •5 1-2 2-4 5-7 3-2 •2 9-1 f) 97 September 91-3 4-2 1-3 •6 1-0 1-6 4-5 3-7 •7 8-9 9} 99 November 88-8 5'1 1-5 •7 1.-8 2-1 6-1 6-1 ■5 12-7 99 99 December 91-3 4.8 ■8 •8 1-3 1-0 3-9 5-3 ■4 9-6 Table No. 2. Indian Wheats imported from Bombay and Karachi. Date. Red. White. Admixture. Weevilled. Damaged. '!( Description of Wheat. Barley, Oats, or Total Dust. Dirt. Seeds. Total. Bye. ;| 1887. :i Choice White Bomhay February - 4-5 94-1 •1 1-1 •2 — 1-4 — •5 r9 No. 1 Club Bomhay (White) - April 10-1 87-2 •7 1-3 •7 2-7 ■X ■4 3'2 ,7 „ „ May 11-5 86-4 •4 1-4 3 — 2-1 •2 2-3 June 10-6 86-8 •4 1-8 4 2-6 •6 3-2 Jf /, »> July 11-6 84-8 1-3 1-4 9 — 3-6 ■5 •7 4-8 August 11-1 86-5 •9 •6 1 — 2-4 •5 •4 3-3 JS 73 » September 10-5 87-7 ■7 •6 5 — 1-8 2'4 •8 5-0 October 12-0 86-4 •6 ■9 1 1 — 2-6 4-2 •9 7-7 J) >J >» November 12-6 82-9 2-1 1-5 9 4-.5 1-4 •4 6-3 „ JJ il December 10-9 86-8 •4 1-1 •8 — 2-3 •7 •6 3-6 Soft Bed Bombay April 97-8 •4 •4 1-4 _ 1-8 1-8 ; 99 99 May 97 -6 •9 •9 •7 1-6 1-6 99 99 June 96-2 1'5 1-1 1-2 — — 2-3 — — 2-3 Hard White Bombay - April 21-1 77-8 •2 •8 •1 1-1 1-1 )» 99 " " August 16-8 81-7 •4 1-1 — — 1-5 •6 — 2-1 Hard Bed Bombay March 97-4 •8 •8 1-0 1-8 •3 2'1 99 99 April 96-7 1-7 •4 I'l •1 — 1-6 — •6 2-2 99 99 - July 96-7 1-6 •3 1-9 •5 — 2-7 — •5 3-2 Bed aub Bombay June 73-2 24-0 •4 1-8 •6 — 2-8 •2 •6 8-6 21 Table No. 2 — continued. Date. Red. White. Admixture. WecTilled. Damaged. Description of Wheat Barley, Total Loss. Dust. Dirt. Seeds. Oats, or Eye. TotaL White Jubbnlpnr 1887. July 15-0 81-8 •6 ■■' 1-6 3-2 ■4 8-6 White Delhi - May Jtme July 23-2 19-0 15-9 73-7 77 1 78-6 •9 1-0 •5 •2 •3 11 •8 1-1 •7 1-2 1-5 3-2 3-1 3-9 5-5 •2 •5 •4 •5 ■6 3-5 4-6 6-6 Bed Delhi July 93-4 ■9 •9 •7 •6 3-5 5-7 •5 •7 6-9 AtbaraCRed) n n Febmaiy - Match ^pnl May 96-8 95-4 94-8 970 ■6 1-0 11 •3 ■6 1-5 2-1 5 1-4 1-6 1-5 1-r •6 •5 •5 ■5 — 2-6 3-6 4-1 2-7 3-4 1-9 •4 7-9 3-6 4-5 2-7 White Karachi July October December 17-1 34-3 19-2 78-3 58-2 70-5 ■8 1-2 •8 •7 ■4 "5 •8 2-3 5-1 8-6 4-6 7-5 10-3 •3 1-7 1-3 ■7 •6 •6 5-6 9-8 12-2 Bed Karachi n » July December : 86-0 79-4 6-6 12-1 :| •6 ■6 10 5*2 7-7 7-4 8-5 •2 •8 •3 r-9 9-3 Table No. 3. European Wheats. Date. Bed. White. Admixture. WeeviUed. Damaged. Description of Wheat. Barl^, Total Loss. Dnst. Dirt. Seed. Oats, or Eye. TotaL English White „ Bed - - 1888 2-4 97-0 97-5 2-7 — •1 -3 — -1 -3 •3 •a -4 -5 Konigsbnrg (Bed) Danzig (White) J» ■ 98-5 27-4 •2 71-3 •1 •1 -4 •5 •9 •6 1-3 1-3 — 1-5 •8 2-8 2-1 Bnssian : — St. Petersburg (Bed) n 98-2 — •1 — 10 •7 1-8 — 2-8 4-6 Taganrog Azima (Bed) n >t if Hard „ - Ghirka „ - - Ck>mmon Odessa „ 1887 95-8 89-8 52-8 98-1 91-2 •3 44-1 ■I •2 ■5 •2 •1 •4 •2 •1 •5 •2 •9 1-6 3-6 9-6 2-4 •6 6-7 39 10-2 3-1 1-9 8-8 — -3 •5 -6 1-3 3-8 4-2 10-7 3-7 3-2 12-6 Egyptian Saida (White) - a 46-0 42-2 •3 6-4 •6 4-5 11-8 •5 -1 12-4 C 3 22 Table No. 4. American and Australian Wheats. Date. Red. White. Admixture. Weeyilled. Damaged. Description of Wheat. Barley, Oats, or Rye. ' Total Loss. ' Dust. Dirt. Seeds. Total. American : — No. 1 Hard Duluth (Red) - Duluth „ Red Winter - „ No. 2 - „ Chicago No. 2 „ Hard Spring No. 1 „ . Springs No. 2 Red North West Springs No. 2 „ Milwaukie Springs No. 2 - 1887 98-5 98-1 98-7 98-7 96-7 98-8 97-8 98-6 97-0 ■2 ■4 •2 •2 2-0 •3 1-0 •1 •8 •3 ■6 •3 •2 •6 •2 ■3 •3 •8 — •8 •9 •8 •6 •5 ■6 •6 •5 l-O ■2 •3 •2 •1 ■3 ■5 •4 1-3 1-5 1-1 1-1 1-3 •9 1-2 1-3 2-2 — •9 •2 10 1-8 •4 ■2 I-l ■8 2-1 2-2 1-7 2-1 2-9 1-7 1-1 2-3 2-1 4-3 Oregon - (White) Califomian No. 1 - „ No. 2 „ Amber No. 1 „ „ No. 2 „ 2-3 5-3 6-5 3-0 9-2 97-0 93-3 87-8 92-9 81-7 — ■1 •2 ■7 2-8 •8 2-5 •5 •7 2-9 3-3 6-5 ■7 1-4 5-7 41 9-1 •1 •1 •5 •2 •4 •7 1-5 6-3 4-3 9-5 Chilian „ )i 15-5 82-5 •2 •1 1-7 — 2-0 — 1-1 3-1 Australian Melbourne - „ „ South Australian „ 1888 1-4 1-2 97-8 97-9 ■1 •1 •7 •8 — •8 •9 — •3 •2 1-1 1-1 New Zealand : Round „ Long >» 27-7 2-4 72-1 96-8 - — •8 •2 •2 ■8 — •1 •3 ■8 APPENDIX B. Letter from the Honourable E. Egrbbs Adam to His Excellency the GrOVEBNOB, OE BOMBAT. Bombay. Dear Lord Eeay, 25th August 1888. As regards wheat adulteration, about which you write, I regret to say that little progress has been made in the right direction since I first pressed the matter on the attention of the Chamber of Commerce somo years ago. We have within the last few months moved forwar4, bat the position is not yet satisfactory. The fault lies not at the door of the Bombay exporters, but with millers, buyers, and corn trade associations in England. The truth is people in England do not and cannot be expected fully to realize the drawbacks caused to the India wheat trade by having to ship dirty wheat, nor can they understand the importance to India, in her competition with other exporting countries (America aad Russia chiefly), of getting- rid of what is actually a tax, and which operates in the same way as an export duty, or nearly so, — I mean the railway carriage from the interior to the sea coastj and the sea freight from the port of shipment to the consuming country, of 4 per cent, of purely useless dirt. I showed by figures that in 1885 the tax was equal to about 1^ per cent, on the value of the wheat shipped! But the importance is brought home to us here, and I am satisfied that all leading export houses would heartily welcome a change to a healthier basis of operation^.' Practically Indian wheat, under present circumstances, cannot be shipped quite free from dirt and impurities, but it would be quite possible to conduct the business on a 2 per cent, basis, and this I have been endeavouring to bring about. At a_ meeting of the Chamber of Commerce on 9th April last, the subject was very fully discussed, and it was resolved again to address the London and Liverpool Corn Trade Associations, begging them to fix the refractions on all sale contracts of wheat if "not over 2 per cent," as Bombay shippers were anxious to improve the name of India wheat, and also remove the disadvantages that accrued from shipping large admixtures of dirt, &c. The Associations were urged to assist us in the matter. The reply from the London Association reached us in May last. It was to the effect 23 that members having lully considered the representations of the Bombay Chamber were Bot able to adopt the proposals made, as buyere in England had made no objection to the existing form of contract, and sellers were divided in opinion. Che response of the Liverpool Association was, I ara happy to say, more satis- factory. It arrived only a few weeks ago, and is dated 12th July. It said that members were desirous of meeting the views of the Bombay Chamber, and had decided to alter the standards of wheat on which sales were made, and that these standards would in future contain only " 2 per cent, of dirt, seeds, and grain other than '•' wlieat" This is how the trade stands to day, so far as Bombay is concerned, and I am not without hopes that before long the London Association will reconsider their decision and follow the commendable example of the Liverpool body. As you know, exporters have to ship quality equal to what is sold. If the English Association 4ecided to buy only pure wheat, the Bombay merchants would have to ship it. But as, unfortunately, the Associations seem to prefer to buy wheat with 4 per cent, of dirt in it, the Bombay merchant has no say in the matter, but must supply what is wanted or stop his business. Any other information you may wish I will gladly supply. Believe me. Tours sincerely, (Signed) E, Forbes Adam. Report on Impurities in Indian Wheats. No. 3. Greenwich, Sir, 25th March 1889. I have to acknowledge the receipt of your letter of the 25th Eebruary, stating Appendix A. that you have received replies from the miUers and Chambers of Commerce to the questions issued with my last report on the impurities of Indian wheats. Sir George Birdwood has forwarded these replies to me, together with an analysis of them. The Circular Letter of Mr. J. A. Grodley, C.B., of the 31st December 1888, enclosing a copy of a form of six questions (Appendix B), was addressed to 732 of the principal millers in the United Kingdom ; up to the date of this report 510 miUers (Appendix C) have returned the forms duly filled up, and Mr. B. J. Hose's very carefully prepared analysis of their replies is given below. " Question 1. Do you use Indian wheat in quantity ? 249 millers state that they use Indian wheat in quantity. 259 millers only use Indian wheat in limited quantity. 2 do not reply to this question." " (Ration 2. If not, are you prevented from so doing by its impurities ? 348 millers state that they are partly prevented from using Indian wheats in consequence of its impurities. 41 millers havii^ the necessary machinery to deal with the dirt, '&c., are not prevented from using Indian wheat. 121 do not reply to this question." " Question 3. Would you use larger quantities if free from admixture and impurity ? 461 millers state that they would use a much largier quantity of Indian wheat if they could obtain it in a clean state. 27 millers state that even if clean they could not use a larger quantity of Indian wheat, 22 do not reply to this question," " Question 4. Is the admixture of red wheat with white wheat of serious consideration to vou ? 229 millers state that the admixture of red (or hard) with white (or soft) wheat is of serious importance to them, as the red hard wheat can only be reduced by ' roller nulls.' 256 millers, most of whom have " roller mills," are indifferent as to the admixture. 25 do not reply to this question." C 4 24 " Question 5. The shipments in the later months of the year show considerable increase of impurities. Do you in preference secure the earlier shipments ; and, if so, do you pay a higher price for the same ? 322 millers state that they prefer the early shipments and pay higher prices for them. 16 state that they are indifferent, it being merely a question of relative values. 172 do not reply; most of these millers dealing indirect with merchants are unable to give an opinion." " Question 6. Would you approve of a form of contract limiting the admixture of dirt, seeds, and grain other than wheat to 2 per cent, in preference to the present ' F. A. Q.' form ? 429 millers express their warm approval of a form of contract limiting the admixture to 2 per cent. 4 millers are against any alteration. 77 who do not reply are mostly millers unacquainted with the form of purchase ; they buy locally from merchants." A number of interesting extracts from the more important general remarks made by the millers after the answers to the questions are given in Appendix D. It can now no longer be stated that buyers in England have made no objection to the existing form of contract. I have made diligent inquiries on the market, and have to report a very general desire for a change of form of contract, to secure a supply of clean wheat. Great pleasure is expressed that Viscount Cross and the Indian Council have taken up the matter, and the opinion is largely held that it should now be pressed to a satisfactory conclusion, even to the extent, if necessary, of an Act being passed to make it a fraud to deal in wheats containing an excessive amount of seeds and dirt, as was the case in cotton. Clean Indian wheats are particularly useful to English millers. Damp English wheats can readily be put into condition by mixing with the dry Indian wheats which absorb the excessive moisture a,nd so benefit both. There is an important national reason why wheats from India should be shipped in a clean condition, viz., that, in case of war, all sources of European wheats might be stopped, and it would be desirable that wheats should be shipped from our Colonies in a condition fit for immediate use. It would be quite impossible to grind for human food the dirty wheat now shipped from India by itself uncleaned. It has been stated that those millers who have already provided themselves with extensive machinery for cleaning wheats would object to the change, but on looking through the replies I find, with hardly an exception, that they express a strong wish to have clean wheat. Most other products from India are shipped in a better condition than wheat. nice is pertectly tree from all admixture, except its own husk. Linseed, some years ago, arrived mixed with a large percentage of dirt, but a new contract form, limiting all admixture to 4 per cent., was adopted, and now linseed arrives in a clean condition. Cotton was shipped in a very dirty condition until the authorities interfered to prevent the admixture of impurities, and passed the Bombay Cotton Frauds Act of 1863 and 1878 ; this Act has since been repealed, and I have been informed by a cotton broker that he could tell by the altered condition of shipment the month that the Act was withdrawn. The replies from the Chambers of Commerce show that they do not take a very direct interest in grain. Those wJio do reply approve of the effort now being made to import clean wheat. The reply from the Cardiff Chamber expresses the conviction that " the present fair average quality forin is a direct incentive to ship impurities, " and that the only solution of the difficulty is a permanent percentage standard, " which the quantities of extraneous matter must not exceed." This view is undoubtedly the correct one, and is the cause of all the admixture being made. In looking through the grain contract forms from other countries I find that Australia and New Zealand are the only countries which ship entirely upon the fair average quality system, but there has never been any adfnixture of dirt. California ships equal to official sample, in good condition. Chili ships equal to official sample, in good, condition. America (Atlantic States) ships on graded sample, in good condition. 25 La JPlata ships, upon marked sample, in good condition. The Black Sea is nearly all upon sample. The Baltic is all upon sample. » Bitissian harley is now sold upon what is known as the Bristol clause which limits the amount of admixture to 3 per cent. The very interesting letter addressed to Viscount Cross by Messrs. Marshall Sons & Co. (see Appendix E) veiy fully confirms the information we have as to the actual mixing of dirt with wheat, and it was admitted to me a few days ago, by a shipper of wheat from India, that they bought wheat in the latter months of the season with 6 per cent, of dirt, and relied for their profit upon this percentage of dirt. The replies now received conclusively prove, — 1. that the impurities in Indian wheats greatly restrict their use ; 2. that clean Indian wheats are much desired, and would cause a largely increased demand and a higher price ; 3. that millers earnestly desire a new contract form limiting admixture to under 2 per cent. And I have now to suggest several means which would ensure the object aimed at: — 1. by the mutual consideration of the subject by the Indian Coimcil and by representatives from the various com trade Associations ; 2. by tiie formation of a syndicate to purchase and export clean Indian wheats ; 3. by the intervention, should it be found necessary, of the Government of India, to make it fraudulent to deal in or export grain to be used for human food in any way adulterated. I am sanguine that the first of these suggestions may of itself prove successful in bringing about the desired reform, as I cannot but think that the selfish interest of a few large firms must give way to the unanimous desire of the millers of this country, and to the great ultimate benefit of all concerned. But, if not, I do not hesitate to strongly advise that the third of these suggestions should be promptly adopted. In connection with this inquiry, I think the fact should not be overlooked that Italy, France, and Belgium are buyers of the better class Indian wheats, and if these wheats were clean there is no doubt this portion of the trade would receive a great impulse, as on the Continent they are less able to deal with the impurities than we are here, and consequently only the high class wheats are in demand. I am, Sir, Tour obedient servant, John M'Dotjgali,. The Under Secretary of State for India. APPENDIX A. lietter from the Under Secretary of State for India to John M'DougaU, Esq., C.C. India Oflace, Whitehall, S.W., Sir, 25th Eebruary 1889. In continuation of my letter of the 15th December last, I am directed by the Secretary of State for India in Council to inform you that the replies of the millers and Chambei-s of Commerce of the United Kingdom to the questions prepared by you on impurities in Indian wheats have now been received ; and Sir George Birdwood has been directed to submit them to you for report before they are forwarded to the Grovemment of India. I am, Sir, Your obedient servant, J. A. GoDiiEsr. D .26 APPENDIX B. Copy of Circular Letter of the Under Secretary of State for India addressed to 732 Millers. •R sj Jirrim9 India Office, Whitehall, S.W., B,.. fc,., & U IbUA 31st December 1888. ""' I am directed by the Secretary of State for India in. Council to f^^^^d tayou the enclosed copy of a Report by Mr. John M'Dougall late of ^^««^r«;, ^^^^^^ Brothers, 10, Mai Lane, on Impurities in Indian Wheats ; and to say t^^tj^jo^^^ Cross will be greatly obliged by your replying to the accpmpanymg question relating to the same, and for ani further remarks on the suboect with which you maybe pleased to favour His Lordship. ^ I am, Sir, Your obedient servant, J. A. GOBLBY. Enclosure to Mr. Godley's Letter of the 31st December 1888. Impurities in Indian Wheats. Question 1. Do you use Indian wheat in quantity ? Answer. Question 2. If not, are you prevented from so doing by its impurities ? Answer. Question 3. Would you use larger quantities if free from admixture and impurity? Answer. Question 4. Is the admixture of red wheat with white wheat of serious considera- tion to you ? Answer. Question 6. The shipments in the later months of the year show considerable increase of impurities. Do you in preference secure the earlier shipments ; and, if so, do you pay a higher price for the same ? Answer. Question 6. Would you approve of a form of contract limiting the admixture of dirt, seeds, and grain other than wheat to 2 per cent., in preference to the present E. A. Q. form ? Answer. Remarks. Address (Signature) Date 27 APPENDIX C. Number and Distribution of the Millers to whom Mr. M'Dougalls Report No. 2 was submitted. England and Wales. NuDiber of Number of Number of Number of Coanty. JTorms Forms County. Forms. Forms sent. returned. sent. returned. Bedford 5 5 Leicester 6 4 Berkshire 11 7 Lincoln - - 22 18 Bucks 3 2 Merioneth 1 1 Cambridge ."» 4 Middlesex - - 10 6 Carnarvon 6 3 Monmouth 7 3 Cheshire IV 13 Montgomery 1 1 Cornwall 9 H Norfolk 10 S Cumberland 9 7 Northampton 10 6 Denbigh ' - 3 - Northumberland 7 6 Derby 16 ' Nottinsiham 15 It Devon 15 Oxford 7 1 Dorset .> •5 Rutland 1 1 Durham 25 16 Shropshire s 5 Essex 15 9 Somerset 10 6 , Flint 3 2 Stafford 19 12 Glamorgan 3 1 Suffolk 8 5 Gloucester 24 21 Surrey 14 ■10 Guernsey 1 1 Sussex 7 6 Hampshire 12 9 Warwick 16 11 Herefordshire 8 S Wiltshire 15 12 Hertfordshire 6 2 Worcester 13 7 Huntingdon 4 4 Yorkshire 103 77 Isle of Man Kent \ ^ 18 U Total 597 428 Lancashire 63 50 Scotland. County. Number of Forms sent. Number of Forms returned. County. Number of Forms sent. Number of Forms returned. Aberdeen Ayr - Banff Edinburgh Fife Forfer Haddington i 1 4 1 6 3 2 I 1 / 2 1 5 3 1 1 Lanark - - - Renfrew ... Roxburgh - - Stirling Total 11 3 1 2 10 1 1 35 26 Ireland. Number of Number of Number of Number of County. Forms Forms County. Forms Forms sent. returned. sent. returned. Antrim 10 S Louth . . - 3 1 Armagh 2 2 Mayo ... 1 Carlow . . - . 1 1 Meath 6 2 Clare 1 Queen's County 3 1 Cork 17 7 Sligo 1 Down ... 3 3 Tipperary 5 1 Dublin 12 10 Tyrone 2 2 Gtalway 1 Waterford 3 1 Kerry 1 West Meath 2 Kildare 5 4 Wexford 3 2 Kilkenny 4 2 Wicklow 5 4 King's County 2 2 Limerick 3 1 Total 100 56 Londonderry 2 ^ ■ / 58411. B •28 APPENDIX D. A Selection of Extracts from the more important General E-emarks made by Millers. Ebmarks. No. 10. Belfast. — Using 9,000 tons a year of Indian wheat. States stones are the worst and most troublesome impurity. Red and white wheats would fetch more if separate. Belfast is one of the largest importers of Indian wheat, its flour being liked in the north of Ireland for making bread with soda and buttermilk, instead of yeast. No. 20. Bedford. — Suggests that all corn having over 2 per cent, admixture should be. compulsorily cleaned at port of entry before being offered for sale. No. 34. Berwidk-on- Tweed. — Indian wheat having to be washed before use renders it useless for mixing with damp wheats. No. 43. County Gai^low. — " When we can get Indian wheats free from impurities, " they will rise in value in our markets and will be worked in much larger quantities " by most millers," No. 46. Bangor. — Indian wheats are principally used by the larger mills, but it must not be forgotten that in the aggregate the smaller mills, spread over the country,; form a considerable portion of the grinding power of the country. No. 58. Chester. — Used 5,500 tons Indian wheat 1888. Would, use much larger quantities if clean. No. 65. Stockport. — A large user of Indian wheat. Considers any arrangement of, form of contract which would improve matters is very desirable, and would materially assist development of the trade. No. 88. Benzance. — Considers the present P. A^ Q. form an instrument to legalize fraud on millers. No. 121. Derby . — " The millers can take care of themselves, please let them alone. " I buy wheat for what I think it is worth, dirt and all." No. 131. Tiverton. — Prefers the flour from clean Indian wheat to that of any other foreign white wheat. No. 138. Devon. — Has not used Indian wheat for past three years in consequence of.the dirt, &c. The quality varied as much as 4s. per quarter between one bag and another. No. 149. Dublin. — Is of opinion that a competitive trial of wheat cleaning machinery would be of great advantage. No. 151. Dublin. — States that stones and clay are the worst impurities in Indian wheats. Also states that they are greatly pleased to see that the Government ai'e interested in this very important matter. ,, , No. 153. Dublin. — " I am most anxious to support any colony of the British " Empire in preference to America, and am convinced if the India wheat was as "pure and free from dirt it would get a great sale in Ireland." No. 154. Dublin. — No direct imports into Dublin port. Preight from Liverpool brings price of Indian wheat high, and its use has always been obstructed by the necessity of washing before use. No. 161. Darlington.— Divi and dust gets intp the weevil holes and it cannot be removed. This injures quality of the flour. , , No. 167. Da/rlmgton. — Thinks that Indian whejits if sent clean would show a clear saving to the sender of fully 2s. per quarter. No. 174. Durham. — Would approve of any measures tending to bring wheat in a cleaner condition. ^ No. 180. Stockton. — Indian wheats would have been of great service last year, on account of the excessive moisture in our English 'V'^heats, had they been clean. • No. 186. Edinburgh. — If the Indian wheats were shipped clean they would be largely used. Washing affects their baking qualities, and prevents their use. No. 207. KirTccaldy — If we could get the fine white wheats clean we could use a considerable quantity. No. 217. Cardiff^. — " In order to place the trade on a really satisfactory basis, we " hold that the Corn Trade Associations in London and Liverpool should make up " standards of all the different grades of wheat at the beginning of the season, and 29 " that all contracts should he made for quality equal thereto, instead of as present ^' for fair average quality. The Californian trade is conducted on such, a contract, " which gives satisfaction to both buyer and seller, and it is well kaown to what vast '•■proportions this trade has grown. We have for some time past urged the Corn " Trade Associations in London and Liverpool to take action in this sense, and with " such a contract and guarantee of not more than 2 per cent, admixture of foreign " matter we should predict a vast increase in the general demand for East Indian •' wheats." No. 235. Gloucester. — Many country millers are prevented from using Indian wheats, not having the necessary machinery to remove the dirt, and other impurities. No. 211. Gloucester. — " If Indian wheat was free from stones and dirt, I should " use 5,000 quarters a year." No. 248. Basingstoke. — ^Millstone millers are almost prevented from using Indian wheats, on account of the impurities. No. 270. Huntingdon. — Have used from 4,000 to 5,000 tons a year of Indian wheat ; would use much more if clean. No. 271. Htmtingdon. — The early shipments of Indian wheat are ahrays worth more than the late, they are used as baits, the shippers knowing that the average of the earlier months will not affect the quaUty they are bound to deliver. Large shippers are able to ship so much bad wheat that they can affect the standard by which the contract is fixed, and so cheat their customers. If A can manage to ship half the wheat of one month of a quality 2s. per quarter beJow other shippers, the standard of the month will be lowered Is. per quarter, and he will only have 1*. per quarter deducted from him for bad delivery, whereas he has saved 2*. per quarter in the cost of the wheat shipped. Of course this is an exaggerated case, but it is always in a degree true. No. 274. Isle of Man. — Would use Indian wheat extensively if properly cleaned. No. 286. Gravesend. — Indian wheat is of excellent quality, and if clean it would compete successfully with American and Russian, which millers cannot at present dispense with. No. 296. Kildare. — Indiaji wheat would be more largely used in this district if it was free from clay, &c. " Having at one time used a large proportion of Indian " wheat for flour for the Government Bakery, Curragh Camp, it was objected to by " the supply officer, on the ground that the loaf was too small." No. 301. Eilkenny. — States that it would be of immense advantage to English and Irish millers to be able to procure Indian wheat in such a conditon that ordinary cleansing machinery would be sufficient to render it fit to manufacture. ;^ o. 304. King's County. — " We have used so very little Indian wheat, owing to " its impurity, that we cannot give as full an opinion as we should wish." No. 307. Glasgow. — Indian wheats, if freed from impurities, would be invaluable for admixture with native Scotch wheats, and would soon be appreciated here. No. 309. Glasgow. — ^If we had a regular supply of clean, fine Indian wheats, we are convinced that they would largely take the place of both Russian and American wheats. No. 319. Blackburn. — ^The admixture of dirt, &c., in Indian wheats causes nothing but loss to all concerned, and discomfort to all who work in or about it, and in many places the miller dare not use Indian wheat, for fear of creating a nuisance, to his neighbours when cleaning it. No. 321. Liverpool, — States that the mixture of heated and damaged grain with wheat is the most serious difficulty which the miller has to contend with. Modern wheat cleaning machinery will eliminate the dirt and most of the foreign seeds, but it is impossible by any process to separate damaged wheat from sound. No. 334. Accrmgton. — If Indian wheats could be delivered in the same clean con- dition as those from America and aU our Colonies, there would be an immense impetus given to its use. No. 335. Liverpool. — Uses an average of 26,000 tons a year of Indian wheat. Considers the present E. A. Q. form a moveable standard of quality, and therefore unsatisfactory to the consumer. No, 336. Manchester. — Uses Indian wheat almost exclusively. Are not bread flour miUers, but size flour makers, and often buy wheats that cannot be used for food on account of the • impurities. Only on this account are the impurities an advantage to tis. E 2 30 No. 339. Bolton. — If Indian wheats could be supplied as free from impurities as grain from other countries, we should use a much larger quantity, probably 10 to 20 per cent. more. No. 348. Manchester. — " I think I am one of the largest consumers of Indian " wheat, say about 50,000 to 70,000 qrs. per year. I would suggest that all wheat " for shipment via the Cape after June should be placed in bins before shipment, " and subjected for a few hours to the vapour of burning sulphur, to destroy the " weevils, which are very destructive in Cape cargoes." No. 357. Liverpool. — " There is one point nowhere named in Mr. McDougall's " report, nor have I seen it elsewhere, but which has struck me very forcibly. It is " that the use of Indian wheats by English millers has caused a sensible increase in " the demand for English farmers' wheat for the sake of the mellowness and flavour " needed to counteract the ricey tendency of even the best Indian wheats." No. 373. Cheshire. — Would use 20 per cent, more Indian wheat if it was clean. No. 376. Barrow-in-Furness. — Uses from 8,000 to 10,000 tons of Indian wheat a year. A great number of small mills are prevented from using Indian wheats on account of the costly machinery needed to clean them. No. 388. Boncaster. — If anything can be done in favour of importing Indian wheat in a purer state, it would receive support. No. 389. Boston. — If Indian wheats could be imported as clean as the Californian or American red wheat, would hardly ever buy any other kind of foreign wheat. No. 393. Carlow. — Tried Indian wheat, but found it would not work satisfactorily after receiving similar cleaning to that given to Hussian and American wheats. No. 398. Lincoln. — Pound the dirt in form of dust very injurious to the health of wheat porters and millers. There is great need of improvement. No. 400. Lmcoln. — Would use our own colonial wheats in preference to others, if they could be obtained clean, but at present the waste is too great. No. 403. Lincoln. — " We prefer Indian to Russian wheat, but we want less dirt." No. 405. Lincoln. — " We are exceedingly pleased to see that this matter is receiving " attention, and we trust results will be beneficial. We think the Indian wheats are " worse this year than last." No. 411. Londonderry. — Indian wheat, if shipped clean, would be of advantage to the growers, and all others concerned. Indian wheat would then compete on more equal terms with American, Australian, and Russian. No. 425. Isleworth. — State the flour made from Indian wheat has an unpleasant earthy flavour, in consequence of the clay with which it is mixed ; the removal of this would cause an increase in its value and lead to its more extensive use. No. 441. Norfolk. — "I have 100 tons now unloading, 10 lbs. per bag of 16 stone " entire waste, and besides the loss in impurities I have to pay the Great Eastern " Railway 8s. per ton freight for the rubbish." No. 444. Oreat Yarmouth. — If Indian wheats were shipped clean, would use a large quantity. No. 450. Great Yarmouth. — " I was the first to introduce Indian wheat in the " Eastern Counties, and used about 2,500 tons annually; but, owing to the increasing^ " impurities, I have had to discontinue using them." No. 466. Northampton. — If Indian wheat was sold in sacks, the same as Russian and American, it would be a great advantage. No. 467. Northampton. — As an instance of the effect upon the price of Indian wheat of the impurities mixed with it, mentions the fact that Persian wheats in clean condition are worth 2«. per quarter more than wheat from Indian ports of equal quality, but with an admixture of impurities. No. 466. Newcastle-on-Tyne. — ^The question of weevil should also be dealt with. No. 466. Alnwick.: — If Indian wheat was sent to this country clean it would at once command the attention of many millers who do not at present use it. No. 473. Nottingham. — The impurities prevent the use of Indian wheats by the general trade, who cannot deal with them for want of machinery. The loss falls on the Indian cultivator, whose market is restricted. No. 485. Oxford. — Believes the wheats from India will in future play a very important part in our trade. When properly cleaned, few wheats equal the Indian for colour and strength. No. 490. Queens County. — " I cannot too highly commend the adoption of this " course of having information direct from the users of the wheats, and ' of seeking " to promote the growth of colonial, specially of, Indian wheats. In Ireland they are " very little used, the Indian sorts, and I know of no reason save the impurities." 81 No. 498. Wellington, Salop. — Prefers ludian to Oaliforniaii wheat, and it is only the dirty condition of the Indian that prevents a larger consumption. No. 508. Ludlow. — " I had one lot of Indian wheat to try, and found it quite " impossihle to work on account of its impurities." No. 507. Bath. — Have almost discontinued the use of Indian wheat, on account of the large admixture of dirt and stones. No. 522. Burslem. — States that there is no doubt as to the quality of Indian wheat being second to none in the world, and that no wheat has suffered so much from the admixture of impurities. No. 528. Lichfield. — The weevil in Indian wheat is even a greater drawback than the dirt. Only water will kill the insect, which remains in the interior of the grain, is ground up, and injures the colour of the flour. No. 544. Suffolk. — Has used considerable quantities of Indian wheat, but has now discontinued vsing it on account of the impurities. No. 545. Lowestoff. — " We should think the trade would be only too pleased to " have some alteration that will lead to a fair business between buyer and seller." No. 566. Brighton. — States that small millers will not put up expensive macliinery to deal with the dirt in Indian wheat, and it is to the interest of the largest millers, who have put up machinery, to keep the wheat dirty. No. 572. Qounty Tyrone. — Cannot see why Indian wheat should not be, shipped as clean as Californian or Australian, which we use, and pay a higher price for. No. 575. Birmingham. — If the P. A. Q. form is abolished, thinks it would be necessary to have some standard of quality, as otherwise the quality might be let down very considerably, although the dirt clause tras introduced. No. 685. Birmingham. — Thinks the 2 per cent, clause should be carried out in the interest of the seller as well as the buyer, as it would increase its value. " Am " pleased to receive this paper ; you are doing good work for England and India, and " I beg to thank you." No. 591. Waterford. — Indian wheat, if free from clay, dirt, &o., would be much more used. No. 595. Wexford. — Millers object to the large proportion of clay, stones, &c., contained in Indian wheat, and which can only be dealt with by expensive machinery. No. 596. Wexford. — ^The large quantity of impurities in Indian wheat is a great drawback to its use in quantity. No. 599. Wichlow. — Suggests that the wheat before being shipped should be put through proper screening and fanning machines. No. 603. Bray, Ireland. — ^The chief impurity is not the admixture of seeds, &c., but its impregnation with animal matter, urine, &c., which, is caused, no doubt, by the cattle treading out the grain. No. 605. Wilts. — English farmers in a damp season like 1888 could use large quantities of Indian wheat if clean, but as they require so much preparation, even in milJs possessing the necessary machinery, the trouble and wear and tear almost prevents its use. No. 621. Worcester. — Would use a much larger proportion of Indian wheats for blending with local wheat, if the former were not so wasteful by reasons of their impurities. No. 626. Tewkesbury. — " My mill is a small one, and it is not worth my wiiile to " put up the necessary cleaning machinery to deal with the impure Indian wheat. " I am therefore unable to use it." No. 641. Thornton Dale. — " Eegrets that lie is unable to use more Indian wheat " on account of its impurities." No. 646. HMdersfield. — The Indian wheats would be more largely used if shipped free from dust, «^c., and would sell for a much higher price. No. 648. Bimgley. — Does not find it pay to use Indian wheats unless considerably cheaper than .others, owing to the elaborate cleaning process needed to rid them of impurities. The large quantity of earth some varieties contain is very diflBcult to remove, and causes specky flour, which retards their free use. No. 652. Leeds.—" We find Indian wheats both useful and profitable, and trust " you will do all you can to promote the sending of them in a clean condition." No. 654. Castleford. — Eully endorses Mr. Eorbes Adam's letter, and holds Indian wheats in high esteem, and looks upon them as capable of being used in this, country to advantage. E 3 m No. 665. Sheffield. — "The dust and dirt increases in percentage as the season " advances, and the rule to buy F. A. Q. is very unreasonable, as to-da;y I might buy " a *parcel of wheat, February shipment, F. A. Q., and expect it to be similar to wheat " I am now receiving, but I might get it 3*. per quarter worse, although if it was " equal to the average for the month I should have no remedy." No. 670. Birstall. — Is in favour of a 2 per cent, form of contract, and will urge the subject upon their Chamber of Commerce. No. 671. Driffield. — Would be pleased for the 2 per cent, contract to be made binding, the present F. A. Q. form is a great source of annoyance. No. 673. York. — Considers the choice white Bombay one of the finest quality wheats obtainable, its worst feature is the mixture of stones, which are more difficult to extract than any other impurity. No. 680. Great Driffield. — States that the condition in which Indian wheats are delivered depreciates their value fi-oiu 2s. to 3s. per quarter on the average. No. 681. SuU. — " We use 8,000 to 9,000 quarters annually. The admixture of " dirt is only one obiectionable feature in the F. A. Q. form. A much worse is " that the shippers sometimes ship a bulk largely mixed with unsound and heated " grain, making it utterly unfit for use. This unsound wheat is by far the greatest " source of loss to us ; dirt we can calculate, but treachery we cannot. We cerlainly " think, to ensure confidence, the contract should read, limiting the admixtwre of dirt, " seeds, Sfc, and grai/h, other than sound wheat to 2 per cent." No. 685. Elland. — Uses about 1,000 quarters per week ; if clean would use 1,500 quarters of Indian wlieat per week. No. 688. Wetherby. — "The Indian wheats are very good in quality, but come in " such an unclean state that we do not use a fourth of what we should use if in " a projier condition." No. 691. Doncaster. — "If Indian wheats were shipped free from impurities it " would render useless the vast and expensive plants of machinery designed, manu- " factured, and erected for the purpose of cleaning and purifying Indian wheats. " We think this demands some consideration. The manufacture of wheat cleaning " appliances is, as a matter of fact, a very important industry." No. 695. Hull. — Millers in buying Indian wheat do not buy the dirt, &c., they reckon so much off for waste in buying. If they were shipped cleaner, there is no doubt they would fetch more money, as they would compare more iavourably with other foreign and home wheats. No. 698. Keighley. — If the various kinds of Indian wheat were sent over separately and clean, an increased quantity would be used. No. 699. Leeds. — Indian wheats would be much more generally used if clean, none but the best fitted up mills can use them (as they are) to advantage. No. 710. Leeds. — ^The immense quantity of stones in. Indian wheat is a great detriment to their use, as they cannot be all got out. No. 712. Sheffield.— Wiih improved culture and shipment Indian wheat will become very popular in England, and a wholesome competitor with America. No. 722. Botherham. — Some of the Indian wheats are the best wheats on the market, and if they were sent free from dirt they would command a better price than many of the foreign. No. 731. Batley. — The grit, ironstones, and heated grains are most serious objections to Indian wheats. APPENDIX E. Letter from Messrs. Marshall, Sons, & Co., Limited, to the Secretary of State for India. Britannia Iron Works, Gainsborough, My Lord, 29th January 1889. Knowing the interest you evince in the Indian wheat question, we take the liberty of bringing to your notice our efforts to improve the quality of Indian wheat, by endeavouring to introduce suitable and efficient machinery for the proper manipu- lation of the grain, and we venture to think a brief account of our experience will not be uninteresting to you. 33 * The advaatages possessed by India as a wheal growing country — as regards climate and cheap labour— induced us, five years ago, to send out a set of machinery with a competent mechanic to carry out experiments in steam thrashing, with the object of adapting oui' machinery to meet the requirements of the country, and to practically demonstrate to the Natives the advantages that would accrue to them by the intro- duction of suitable thrashing and cleaning machinery as used by all the other corn-growing countries of the world. This first machine did not fulfil all the conditions required, inasmuch that it did not chop up the straw into " bhoosa " as fodder for the cattle. But from experience gained on the spot, we were soon able to bring out a machine to efficiently thrash the Indian wheats, and at the same operation chop and braise the straw, and this machine is a pronounced success. We may explain to your Lordship that we did not enter upon this undertaking without anticipating many formidable drawbacks, as we know the antipathy of the Native is always at first much against any innovation of this kind, but we experienced obstacles where we least expected them. We naturally thought the merchants on the other side would onJy be too glad to be able to send home properly thrashed and clean wheats, and would help us in the work we had taken in hand, but, to our surprise, we only met with encouragement from comparatively a few firms. It is, no doubt, a question of £ s. d., and, at present, it probably pays them better to export the wheat with impurities. In no case would a firm undertake to send home a cargo of steam thrashed wheat at their own risk, although we had staked so much in the matter. But surely it is only a question of looking a little way ahead to clearly see the benefits that would eventually result to all concerned by exporting clean wheats, as it must be apparent, if Indian wheats, as at present exported, can compete in the European markets, that by sending clean and weU dressed grain India can undersell all the other corn-growing countries. Since commencing this work we have sent out machinery every season, and for the last two years our operations have been confined to the Punjab, where we have succeeded in thoroughly satisfying the zemindars. Last season we thrashed all the wheat on the estate of one of the Sikh high priests, at Amritsar, and this, as your Lordship will be aware, at once removed any superstitious objections that may have existed. So far, we are satisfied with the progress we have made, but we have not succeeded in selling any machinery of this description to Natives, and the time when we shall see any returns for the several thousand pounds we have expended seems in the remote future. Many Anglo-Indians have told us we have undertaken a work we shall never succeed in, but, from the knowledge we have been able to obtain of the Native character, we have confidence that it is only a question of time and energy. We know that when railways were first promoted in India it was thought the (fifferent castes would never mix in the carriagesj and that it would be necessary to have a separate compartment for each caste on every train ; we know how different tjie result has been. Our experience is that it is more a question of rupees with the Natives. Once convince them that there is money in an innovation of this kind, and they forthwith take it up. We have only to look at the large number of cotton nulls, cotton presses, oil mills, flour mills, &c., owned and worked by Natives in various parts of India to prove this, and as the railways continue to open out tracts of valuable land, thus enabling cultivators to convey their products to the ports from places where it has hitherto been impossible owing to want of carrying facilities, the demand for machinery of various kinds must increase every year. It has also been argued that the zemindars will not be able to afford our machinery (Rs. 6,0t)0 -to B/S. 8,000 per set, delivered on the spot), but we do not believe this ; there are a very great number of the zemindars who are well able to buy such machinery, and, in cases where the farms are too small, a few ryots can amalgamate and buy a set. This system is much in vogue in several parts of Europe. Taking into consideration the great and increasing want of steam thrashing in India, and as there can be no doubt as to its ultimate success when once introduced, one would reasonably expect a demand for such machinery at no distant date, but it has now become a question for us to consider whether it will answer our purpose to expend any more money and energy until some of the drawbacks in our path, are removed. We fear we can hardly hope to succeed until the growers know, they wiU get a higher price for clean and pure grain. The merchants in India, refusing to give better prices for clean wheats, retard our efforts, as 'well as injure the future wheat trade of India. We have frequently been told by zemindars, " Why jshould " I buy yoiu^ machinery, and produce perfectly clean wheat, when I should not get E 4 34 " a higher price for it, and should lose the 5 per cent, or 6 per cent, I have to allow " to the buyer for the dirt^&c. ?" and we cannot but think there is a certain amount of reason in those remarks. We have even had cases where we have thrashed wheat for a ryot, and produced a sample beautifully clean and bright that would have surprised the merchants on Mark Lane, and he has afterwards mixed dirt with it. We mention this to show your Lordship that the fact of the merchants not being with us is a serious drawback, and our opinion is, that if the percentage of dirt and im- purities were reduced to the same standard as for America, the demand for the Indian' article would finally increase, and our difficulties in the introduction of machinery greatly decrease. The Indian wheats do not at present realize anything like their intrinsic value owing to the admission of dirt, &c., and it is only the large millers who can aflbrd to purchase the special machinery necessary for cleaning the Indian wheats who can use them at all, and many small millers, who have not facilities or means to introduce this special machinery, are debarred from employing them. We also understand even the large millers cannot use the Indian wheats in such a large proportion as tbey otherwise would providing they could get them clean. Further, the freight on something like 30,000 tons of useless dirt would be saved every large export season. The growers would get a higher price lor their grain, and would get their produce to market quickly after harvest, and consequently get their money earlier. The cost of thrashing by machinery is less than by the present primitive mode. By the introduction of machinery there would be but little risk of the crops being destroyed by fire through incendiarism or otherwise, thus obviating a source of great anxiety to cultivators in many parts of India. We must apologise for trespassing so much upon your Lordship's valuable time, but we should like to mention that, in addition to sending out the machines with mechanics to work them, we also sent one of our representatives to thoroughly study the whole question. We have, &c., Marshall, Sons, & Co., The Eight Hon. Viscount Cross, G.C.B., H. D. Marshall. Secretary of State for India. REPORT OF THE PROCEEDINGS OF THE CONFERENCE ON INDIAN WHEAT IMPUEITIES, WELD AT THE India Office on the 8th May 1889. 9ve0attetr to bottt ^ouu» of ^avluimmt fis (itotntnanti of If^tv Muft^tV' LONDON: PRINTED FOR HER MAJESTY'S STATIONERY OFFICE, BY EYRE AND SPOTTISWOODE, . PKINTEBS TO THE QUEEN's MOST EXCELLENT JIAJESTT. And to be pnrchased, either directlj or through any Bookseller, from EYEE AHD SPOTTISWOODE, East Habding Steebt, Fleet Stbeet, ^.C, and 32, Abingdon Steeet, Westminstbb, S.W. ; or ADAM AND CHARLES BLACK, 6, Nobth Bbidge, Edinbubgh; or HODGES, FIGGIS, & Co., 104, Grafton Street, Dublin. 1889. [C— 6760.] Frice B^d. INDEX TO NAMES. Viscount Cross Mr. W. Vale King - Mr. J. H. Todd Mr. H. C. Woodward Mr. H. Coke Mr. J. H. Hubback - Mr. M. B. Manuel - Mr. J. M'Dougall Mr. E. P. Maxsted Mr. Seth Taylor Mr. W. E. Willson Mr. E. H. Appleton - Mr.. Arthur Baker Mr. J. Weston Mr. C. J. Propter - Mr. J. Harrison Carter Mr. P. T. Nicolas - Mr. A. R. Grace Mr. S. Smith Pages. 5, 6, 11, 12, 15, 16, 18, 20 6 -■ - 6,.20 - 9 - 10, 11, 12, 14 - 11 - 12 - 12, 16, 20 - 13 - 13, 14 - 14 - 15 - 16 - 17 - 17 - 18 - 18 - 19 - 19 APPENDICES. Liverpool Corn Trade Association East India Wheat Contract Forms - - - 21 Byelaws and Eules of the Liverpool Corn Trade Association - - - - 23 Clearing House Regulations of the Liverpool Corn Trade Association - - - - 25 Liverpool Standard for Bombay Wheat - - - - - - 28 Memorandum by Mr. Charles Whitehead on the introduction of Insects injurious to Corn and Corn Crops in Wheat imported from India - - - - 29 Letter from Mr. W. Gallofi on Indian Wheat Impurities - - - - 29 Letter from Mr. .J. Harrison Carter - - - - - - 32 Letter from Mr. Samuel Smith - - - - 33 Extract from Foreign OflS.ce Consular Report on the Wheat Trade of Odessa (Russia) - - 34 Memorandum of the Council of the National Association of British and Irish Millers - - 34 CONFERENCE ON INDIAN WHEAT IMPURITIES, Held at the India Office, 8th May 1889. Viscount Cross, Q-.C.B,, Secretary of State for India, in the Chair. Present : Members of the Gowmil of the 8ebreta/ry of State. Sir 0. T. Burne, K.C.S.I., CLE. Sir Alfred C. Lyall, K.C.B.^ K.O.I.E. General R. Strachey, O.S.I., P.R.S. Sir John Strachey, (J.C.S.I., CLE. Sir James B. Peile, K.C.S.L Sir Charles A. Turner, K.CI.E. Private Secretaries to SeoretaA"y of State. Mr. W. J. Maitland, CLE., and Mr. A. W. Williams Wynn. Departmental Sir Charles E. Bernard, K.C.S.I. (Secre- tary, Revenue and Statistics Depart- ment). Sir Juland Danvers, K.C.S.I. (Secretary, Public Works and Railway Depart- ment). Colonel Sir Edward R. 0. Bradford, K.C.S.I. .(Secretary, Political Depart- ment). Mr. C Lennox Peel, CB. (Privy Council Office). Officials. Mr. A. N. Wollaston, CLE. (Assistant Secretary, Revenue and Statistics De- partment). Mr. W. N. Sturt. Sir George Birdwood, K.CI.E., CS.I. (Special Assistant, Revenue and Sta- tistics Department). Mr. J. R. Royle, CLE. Mr. B. J. Rose (Technical Assistant, Revenue and Statistics Department). Delegates amd Representatives. London. John M'Dougall, Esq., G.G. M. B. Manuel, Esq. (Messrs. Ralli Bros.). H. T. Strawson, Esq. (Messrs. Straw- son & Co.). J. Ross, Esq. (Messrs. Begbies, Ross, and Gibson). Messrs. Tod and Durant. , J. Mercer, Ei^q. (Messrs. Mercer & Co.). J. E. Beerbohm, Esq. (Evening Com Trade List). G. T. Turner, Esq. (Grain Trade Re- view). Kains Jackson, Esq. London Chamber of Commerce : — J. Harrison Carter, Esq. I 69578. Wt.P, 574. A 2 London Corn Trade Association : — Seth Taylor, Esq. (President). W. Vale-King, Esq. (Messrs. W. Vale-King & Co.). R. J. Duck, Esq. P. T. Nicolas, Esq. (Messrs. Kelly & Co.). E. J. Saltmarsh, Esq. (Messrs. Usborne and Sons). J. H. Todd, Esq. Liverpool. R. T. Smyth, Esq. (Messrs. R. T. Smyth & Co.). Liverpool Chamber of Commerce: — H. Coke, Esq. (President). R. P. Nixon, Esq. J. H. Hubback, Esq. (Messrs. Segar and Tunnioliffe). Liverpool Corn Trade Association : — 0. J. Procter, Esq. (President). S. Sanday, Esq. (Messrs. Sanday & Co). H. C. "Woodward, Esq. (Messrs. H. 0. Woodward & Co.). Hull. Hull Chamber of Commerce : — E. P. Maxsted, Esq. (Messrs. Keigh- ley, Maxsted, & Oo;). F. B. Grotrian, Esq., M.P. Bbistol. Arthur Baker, Esq. (Messrs. "W. Baker and Sons). Bristol Chamber of Commerce : — A. R. Grrace, Esq. V John "Weston, Esq. Gabdifp. Cardiff Chamber of Commerce : — James Tucker, Esq. Robert Strong, Esq. COEK. Robert Hall, Esq. (Messrs. R. and H. Hall, Limited). National Association of British a/nd Irish Millers. Samuel Smith, Esq. (Sheffield). R. H. Appleton, Esq. (Stockton-on- Tees). Wilson Marriage, Esq. (Colchester). AV. E. Willson, Esq. (Birmingham). J. H. Chatterton, Esq. (Secretary). H: D. Maf shall, Esq. (Messrs. Marshall, Sons, & Co., Gainsborough). PROCEEDINGS OF THE CONEEHENCE ON INDIAN WHEAT IMPURITIES, Held at the India Office, 8th May 1889. In opening the proceedings, Viscount Cross, G-.C.B. (the Chairman) said : — Gentlemen, I am extremely obliged to you for coming here to-day upon this matter, which, I think, is of very considerable importance; and I have to thank you for the trouble you have taken in answering the request of the invitation which I took upon myself to send to you. I need hardly say that, as Secretary of State for India; I have every reason to be deeply interested in the export of Indian wheat ; and I do not think that the facts of the amount of export are really known. Therefore, I had better read the figures that I have before me, which do not refer to the last year ; and I purposely do not include the last year, because that happened to be a bad harvest in India, and it would rather upset the calculations. But you will remember that'before the ad valoj-em, duty of seven per cent, was taken off in 1873 the export of Indian wheat only amounted from British India to 17,000 tons, taking the average of the four years before the famine ; and, after the duty was taken off, that 17,000 tons increased, on an^ average, to 137,000 tons, which was a very large increase. If you leave over the famine year, and take the four years from 1883 to 1887, you will find the average of the exports during those years amounted to not less than a million of tons. In 1887-88, when the food harvest was short, that figure dropped to 677,000 tons. ' Now, if the harvests are good, and the railway communication with India is still further opened and improved, as I trust it will be, we may expect the exports of Indian wheat very largely to increase, to the great benefit of the inhabitants of this country, and, I think,/ also to the benefit of the people of India. The value of wheat in 1887 comes to Rs. 86,259,860. Now, when we consider that the wheat area of British India comes to about 20,000,000 of N acres, and that the Native States have something like 9,000,000, of a total of 29,000,000 acre's of wheat growing at the present moment, it is quite clear that this is a trade of enormous value, and it ought to be one of enormous profit. If we compare the imports into the United Kingdom from the different countries, I find from the figures which I have before me that we have an average of the years 1885-86. From the United States there were 1,946,000 tons ; from India 580,000 ton? ; froin JRiissia 395,000 tons ; from Canada 153,000 tons ; from Grermany 152,000 tons ; and from Australia 134,000 tons. I am quite aware that, owing, to the gtate of the haryest in Russia and that of the harvest in India last year, the figures between India and Russia have been very much altered in favour of Russia and to the detriment of India. I will pass that byi Now to the object of our meeting. It seems to me that it would be for the benefi.t of the consumer, and certainly .of the grower, and also I should have thought of the exporter as well as the importer, that all wheat that came into this country should be as clean as it could possibly be. We find, however, that this is by no means the case, and one very notable feature in the wheat received from India, is, that the wheat which arrives in the earlier months of the year is a good deal cleaner than that which comes in the three winter months, which is very much more dirty. You have all seen those tables which I have had prepared, and you will find there that the per- centage of dirt in some of the wheat that comes from India amounts to 7, 8, and 10 per cent. Of course those are special cases, but still there is an enormous amount of dirt which ought not to be th,ere. In fact we may say that at the present moment we are going to the useless expense and the foUy of paying for importing about 1,000,000 hundredweights of dirt every year from India. That is not a very business- like proceeding. I have had it calculated that that is equal to an export duty or tax of something like one and a quarter per cent. That is not a business-like proceeding, if it can be avoided/ A 3 Now, the question is, what remedy can be applied to this state of things ? I dare say you have all had the advantage of seeing that selection of samples in the next room, and for that collection we are indebted to Mr. M'Dougall, who has taken a great deal of trouble in this matter. I look upon these samples as being most interesting and most instructive. Looking to the cause why the wheat should come in this state to England, I am afraid that I must say that a good deal of it is due to the form of contract under which the wheat is sold. You all know what I mean by the words f . a. q., fair average quality. That is rather an elastic term, and I cannot help thinking that if a different contract was made that We should get rid of a good deal of dirt that, unfortunately, comes into the country at the present moment. One effect of this form of contract, as I am informed, is this, — that if any one takes the trouble to export from India into this country clean wheat he does not get the value of the clean wheat becajuse he sells it f. a. q. ; and it is very difficult to make a special contract for a special cargo when the wheat is sold in a different manner. I have seen that the Chamber of Commerce of Cardiff has made some observations upon this point which I think are worth attending to. The Cardiff Chamber of Commerce expresses the conviction that " the present fair, average quality form is a " direct incentive to ship impurities, and that the only solution of the difficulty is a " permanent percentage standard which the quantities of extraneous matter must not " exceed." I understand that the Liverpool Chamber of Commerce has already adopted a different way of selling wheat, that there should not be over 2 per cent, of dirt, which seems to me to be a very much more sensible state of things. This is the response 3f the Liverpool Association, which I will quote from a letter of Mr. Forbes Adam, who is at Bombay. It says, " The response of the Liverpool Association was, I am happy " to say, more satisfactory. It arrived only a few weeks ago, and is dated 12th July. " It said that the members were (desirous of meeting the views of the Bombay Chamber, " and had decided to alter the standards of wheat on which sales were made, and that " these standards would in future contain only 2 per cent, of dirt, seeds, and grain other *' than wheat." Well, I hope that we may have the advantage of some advice from the members of the trade whom I am glad to see assembled here to-day. I would refer to the question of rice, which comes here free from all admixture except its own husks ; and also to the matter of linseed, which some years ago arrived mixed with a large percentage of dirt ; but a new contract form limiting all admixture to 4 per cent, was adopted, and now linseed is said to arrive in a clean condition. That is a hopeful thing, and an example whic/h we can follow. I would also allude to the fact that from inquiries I have made I find that Italy and France refus© to import wheat which is not infinitely more clean than that which comes to this country. I do not see why we should not follow their example. I will not detain you any longer ; I simply asked you here to get your advice and assistance with reference to Indian wheat imported into this country, which should not be allowed to come in its present dirty state, so that every one may get the advantage, the grower, the exporter, the importer, and the consumer. I shall now be very glad to hear any remarks with which you gentlemen may favour us. , Mr. W. Vale King. — My Lord and gentlemen, we have read all your reports and papers with a great deal of interest, and the London Corn Trade Association have held many meetings to consider those reports and papers, and after a good deal of discussion they decided that the best way would be to have a sort of reply printed, which I handed in just now, and which Mr. Todd has very kindly offered to read. The Ghairman. — Will you be good enough to read it ? Mr. Todd. — It is rather a long document, and it was only put into print this morning. (Mr. Todd then read the following document.)* " At a meeting of the East Indian Wheat Committee of the London Corn Trade Association, held on the 7th May 1889, it was resolved that the following state- ment relating to the question of impurities in Indian wheat should be adopted as a reply to the reports and papers sent out by the India Office. " 1st. In Sir C. E. Bernard's memorandum, and throughout the correspondence with Government, whether in India or at home, IndiaiU wheats are described as containing _ — .^ . _ , — . — . * For copy of protest of the National Association of Millers against the above see Appendix G, page 34. 5 per cent, of dirt ; and the expression of 5 per cent, dvrt ia so often, and so indis- criminately, used that it conveys to the mind an erroneous and altogether an unjust idea of Indian -wheat. " If Ave refer to the analysis by Mr. J. M'DougaU of the impuritieB in Indian wheats, in no case do we find a sample idih 5 per cent, of dirt; and, even if we add to it the ' dust,' which we suppose is composed of flour dust of weevils, we fail to get a percentage of 5 per cent, of dirt and dust together, except in one or two cases of Calcutta wheats only. This admixture of dirt and dust, in the majority of cases, seldom reaches 2 per cent. " 2nd. In the same report of Sir C. Bernard's, the admixture of grain, seeds, and earth in Indian wheat is clearly shown to be the result of the mode of cultivation and threshing, and if to these we add that the weevil is an inherent defect in all Indian wheats, owing to climatic influences, we can easily account for the comparatively heavier admixture in Indian wheats as compared with that grown in countries where a higher standard of cultivation is adopted, without attributing this state of things chiefly to malpractices, and on that account invoking Grovemment interference and the enactment of a Wheat Fraud Act, as is suggested in some of the reports and papers submitted. " That the Natives do add foreign matter to their wheats to cheapen the cost is possible, and even probable ; but between this and a systematic adulteration of their wheats there is a vast difference, and the enactment of a Wheat Fraud Act, like the defunct Cotton Fraud Act, apart from its being questionable whether, on general principles, trade should be interfered with by Government Acts, could only be suggested by want of knowledge of the conditions of trade, agriculture, and general manipulation of produce in India. " 3rd. It is suggested, in the reports and papers under consideration, that the fact of the shippers contracting for wheat with an admixture of foreign matter of 5 per cent, in Calcutta, and 4 per cent, in Bombay, and refusing to pay a higher price for cleaner wheats, prevents any improvement in that direction. This is correct as far as it goes. At the same time, seeing the way in which wheat is grown and manipulated in India, as set forth in Sir C. Bernard's report, we must come to the conclusion that shippers have accepted the above basis because they thought it was warranted by the normal condition of wheat as grown, which contained such an admixture. Merchants must be credited with knowing their business too well to suppose that they have fixed upon such a basis in a fanciful way, or in order to allow Natives to adulterate their wheat. "It is suggested by Sir C. E. Bernard and Mr. F. Forbes Adam that the business in wheat, i.e., the buyirtg in India, should be conducted on a basis of 2 per cent, of admixture ; and by Mr. M'DougaU that a Syndicate should be formed to purchase and export clean Indian wheats, which latter we take to mean about the same thing, viz., the reduction of the present basis of 4 per cent, admixture in Bombay, and 5 per cent, in Calcutta, to 2 per cent. " As the natural condition of Indian wheats is to contain about 5 per cent, of admixture of foreign matter on the Calcutta, and 4 per cent, on the Bombay side, the reduction of the basis to 2 per cent, of admixture will resolve itself either, first, into a discount of 3 per cent, and 2 per cent, respectively in the price agreed upon in taking delivery of the wheat from the Natives, and shipping it in its natural state ; or, secondly, it would necessitate cleaning the wheat down to 2 per cent, either by the sellers before delivery or by the shippoi-s before shipment, thereby enhancing the cost, through loss in weight and extra cleaning expenses, by about lO^d. to Is. per quarter on a price of about 34s. ' " Notwithstanding, however, the replies of the English miUers, as given in pp. S4r^ of the papers under consideration, experience has proved that buyers in this country are not prepared to pay the above premium, and when the offer is made ■ to them of a lot of wheat at, say, 34s., f. a. q., or 34s. lO^d. in a cleaner state, the sale is invariably concluded on the f . a. q. basis. " 4th. When the question was first agitated, an Indian firm prepared and showed in the market a superior sample of No. 1 Club Bombay wheat, which they offered to sell, on a guarantee of its containing 94 per cent, of soft white wheat, not more than 4 per cent, red wheat, and the admixture of foreign matter not to exceed 2 per cent., at a premium of 9d. per quarter, and at times they have even offered it at only 6d. above f. a. q., but, with the exception of two cargoes sold for Ireland, they have never succeeded in selling more. Other shippers can speak of similar experiences, which ' A 4 ' " would tend to prove that tlie impression of the trade is well founded, viz., that buy'ers will give the preference to clean wheats, but will pay little or no premium for them. "Whilst on this point, we may remark that the questions put to millers' were of too vague and general a character to elicit replies much to the point.. We venture to think that the replies to Question No.. 3 would have been rather different if after, ' Would you use larger quantities if free from admixture a/nd imfurities f ' it had been added, ' Would you^ in such a case, pay a higher price in proportion to the lower admdxture, ' and also to cover clea/ning expenses ?' "We have it from millers themselves that they can clean wheat cheaper' than shippers would charge them for doing this work, and that, however clea/n the wheat may he delivered to them, they still hai^ to clean it over again. Besides, in buying f . a. q.^ they know about what they have to expect, and, whilst ;they are protected by arbitration fron\ any inferiority in cases where they may be tendered parcels inferior to f. a. q^, they have also the chance (not an infrequent one by any means) of getting delivery of a superior parcel without paying anything extra for it. " It is also suggested, as a means of securing greater cleanliness in Indian wheats,— " That wheat might be sold at home on analysis like seeds (Mr. Finucane's Eeport, p. 13). That the Com Trade Associations might be asked to fix the refraction on all sale contracts of wheat at not over 2 per cent. (Mr. Forbes Adam's letter to His Excellency the Governor of Bombay, p. 26.) " This 'question of selling wheat on a percentage rate of refraction has on various occasions occupied the attention of the Sub- Committee (Indian section) of the London Com Trade Association, and has also been discussed by the Greneral Committee of the London Corn Trade Association, but the principle so far has been considered impracticable. " There, is a great difference between selling seeds and wheat on analysis. " 1st. The quantity of any description of seeds sold is very, considerably smaller than that. of wheat. "i2nd. Seeds, especially linseed (by far the largest trade in seeds), shpw little variatiqn ;in quality, and hence it is practicable in large parcels of linseed to have the analysis made on one average sample to determine the whole shipment. This, with the variations in quality, admixture, &c., &c., in wheat, almost from bag to bag, is impossible, and therefore it would be necessary, for every small parcel of 50 tons or 100 tons to have separate average samples drawn, and have them analysed. " 3rd. In seeds, owing to the above slight variation in quality, a comparatively small sample is analysed ; whilst in wheat a considerably larger sample will have to be analysed, and thus the cost will be greatly increased. " The charge for analysing a sample of linseed is 5s., whereas on wheat we believe it has not yet been done under 2Z. 2s., a very heavy charge on 50 tons or 100 tons of a poor article like wheg-t. " 4th. The quantity analysed being larger, it naturally will take much longer to analyse, and when in a large parcel of 2,000 to 2,500 tons of wheat something like 20 or 25 analyses will have to be made, itj can easily be understood that delay must follow, rendering the final settlements protracted and unsatisfactory. "5 th. Lastly and chiefly, seeds are not liable to weevil. Wheat is, and sometimes it suffers most severely from this inherent defect. How would the advocates of analysis deal with the weevil flour dust 1 If they take it as refraction it would be very unjust to the shippers^ who, although they may^ have cleaned down and shipped in India a parcel^ containing only 2 per cent, refraction, may be called Upon, through the wheat being attacked by weevil during the voyage, to allow oh final settlement 5 per cent., and even 6 per cent, or 7 per cent, on refraction, besides making an allowance for quality, in consequence of the excessive wefeviled bohditioh of the said pai-cel. If, on the other hand, weevil flour dust is admitted fiot to be an heterogeneous substance, how- ls it to be separated from the fine earth,' sand, or other impurities ? " The selling, therefore, of wheat on the basis of percentage refraction is tedious' costly, and impracticable. " One of the reasons of the present discussion is the desire to improve the condition of the Indian wheat trade; but whilst we believe that any sudden or violent change or Government interference would be injudicious and unadvisable under actual circum- stances, we have every faith in the slower and more gradual but surer improvement which every trade works for itself; and we believe that if a comparison were made of the condition in which wheat is now shipped from Bombay and Kurrachee, and that t)f ten to fifteen years ago, a very satisfactory rat6 of improvlement would "be perceptible in the cleanliness, grading, and general manipulation of present shipments of wheat. " We- cannot say the same of Calcutta, but the reason in this latter case is not far to seek, the development of railways in India having diverted from OalcutLa to Bombay ,some of the finest qualities grown in the North-West and other up-country centres, which produce the cleanest kinds of wheat. " Another reason put forward is the desire to develop the resources of India, and make it a more iinportant wheat exporting country than at present. This would have been a reasonable view if ib were found that owing to the unclean condition of Indian wheats India is obliged to carry a large stock at the end of the cereal year, which stock increased year by year owing to want of inquiry from r.he consuming markets. This, fortunately, is not the case, as all shippers receive in about March-April from Calcutta and Bombay, and in May-June from Kurrachee, information to the effect that wheat of the old crop is exhausted, thereby proving that India is able to place all the wheat she has available for export year by year. " Seeing, therefore, that the natural condition at present of Indian wheats is to contain about 4 per ceht. of admixture on the Bombay side, and 5 per cent, on the Calcutta ; that, under the circumstances, it is not practicable to induce the Indian shippers to chunge their system of purchasing, and, instead of buying on the above natural refractions, to introduce an artificial basis of a 2 per cent, refraction ; that buyers practically are not prepared to pay a proportionately higher price for cleaner wheats ; that the system of selling on analysis here is altogether impracticable and unadvisable ; that the conditions of the Indian wheat trade, although slowly, are gradually improving ; that India ships and sells all her wheat available for export year by year, and that her development, in this branch afc least, is not prevented by the- present condition of her wheats ; that the- interference of Government in questions of contract as between seller to buyer is inadvisable ; our opinion is that it is not advisable or desirable to try and force sudden and radical changes in the natural condition of a trade, but that it is preferable to let the improvement come gradually out of the trade itself, taking it for granted that merchants, sellers and buyers, shippers and consumers, &c., are too keenly alive to their interests to allow any opportunity for improvement ia their trade, when such becomes advisable, to pass by. " W. Vale King, " Chairman." Mr. H. G. Woodwa/rd (Liverpool Corn Trade Association). — My Lord, in addressing to you a few words on this subject, I am sorry to have to admit that there is a cleavage of opinion on the point at issue between London and Liverpool. We have listened to this memorandum, but there is a strong divergence of view on dertain points of it. We ourselves, as you are evidently aware from your remarks, advocate a fixed standard for Bombay wheat more especially, and also of other kinds of wheat shipped from India, with a view of popularizing and increasing their consumption, and generally to benefit the trade. We found that in competition with the London standard, which was simply on the average of a month's shipment, our own fixed standard did not work so easily, because it is obvious that a seller would commit himself to a comparatively easy task in shipping wheat as good or clean as his com- petitors under the London standard, while in the other case he woiild have to hold himself bound to fixed conditions of cleanliness and proportions of various kinds of wheat. Therefore, our own standard did not make very much headway. Whilst we see the advantage of London making up the standard as a convenient focus for collection of samples, still we felt that as in Liverpool we handled two thirds of the Bombay wheat shipped to the United Kingdom, and four fifths of the Kurrachee, our opinion ought to have some weight, and we ourselves see no diflB.culty, while London makes up the standard, in fixing as a refraction for the purposes of arbitration, that 2 per cent, shall be the maximum admixture of dirt and of seed other than wheat in all shipnients of Bona bay wheat. We believe that if you improved the quality here, it would very soon be raised to meet the case in Bombay ; that if the Native found that his shipper there contracted to sell here on a certain basis, he would have to fit his contract to the contract made here, and in a short time the shipments would materially improve. The refraction fixed for Calcutta shipments might have to be more than 2 per cent., especially for shipments made in the autumn after the monsoon; and in Kurrachee shipments a special allowance would have to be made for the admixture of barley which usually occurs in wheat shipped thence, but some definite maximum of impurities should be arranged for in all cases. We have found, more I .59578. B 10 especi,ally with regard, to Calcutta, tliat latei;: in the reason.: the wheat comes in bad condition — ^what is known as " country damaged," and that ought to be met by the refusal to admit any parcels containing bountry dainaged wheat into, the London standal-ds on any basis whatever. The basis of the standard ought to be sound wheat. It has rendered later shipments of Calcutta wheait, especially, extremely unpopular with our millers and buyers. As the Cardiff statement puts before; yon, " they don't know what they are going to get." If they buy for September or October shipment they find ainuch inferior article, and they are compelled, to buy on the spot where they can select special parcels. We also think that the statement that buyers will not pay a better price for cleaner wheat is a somewhat exaggerated one, looking at, the transactions on the spot. We quite admit for sales ■" to arrive," and a?goqd deal is on that basis, it is not so easy to sell wheat on; a spepial sample as it cannot be conveniently passed. from hand to hand— and if you have a-term like " No; 1 Bombay wheat," which is a .recognized: standard-r-it] is, easier to sell. But we maintain that there is a very large difference in the quality,- and a very great many millers would give a preference to a, clean wheat, and pay more for it'. , Our feeling is, that as you put it, my Lord, the f. a. q. is a very, elastic term-.- We want to make f. a. q. a li^ttle ti^htfer. The London Corn Trade Association in their memorandum on behalf of the shippers complain ihat. they cannot get any higher price for parcels of clean wheat; we desire to frame such a contract as will provide that they shall atv all' events get rather a 'lower price for very, dixty wheat. , As the percentage of dirt will be less it will require' rather more care in shipping, but in the interest of the miller, and in the long run the interests of the miller and of the merchant who handles' the wheat are identical, the ; thing would be more satisfactory. We think that ' the objections to the raising of the standard on the part qf the London. Association are not well founded, and we think that the raising of the standard is both feasible and practicable. We doubt whether interference of the Government might be made available in this jcase. ' The only point is, whether an i Adulteration Act should be -adopted on the same principle as a man is punished who sandsr his sugar, so a, man who puts soil into his wheat should also be punished- But we doubt the wisdom of that from a commercial point of view. That is, however, more your province th?.n ours, but we think that the raising of thei. standard will improve and consolidate the business. Mr. H. Golce (President of the Liverpool Chamber of Commerce). — Mr. Woodward has said many thitags 'of 'the Liverpool trade which I would have said, and which I need not now repeat. -With reference to this interesting document which has been read, it contains much that We can agreeto, especially the last, clause, which recommends that the trade should -be allowed to settle this matter, for itself. I, am able from my personal experience to give the- corn trade as assembled, here, represented by the millers, the brokers, and importers of Liverpool, and the brokers and importers' of Londouy a very important example of,' the same difficulty in the matter, of cotton. Youir Lordship, will remember that, . during the American war, Lancashire urged the Secretary of State to do everything that could ; possibly be done to make India supply clean cotton for the mills of Lancashire in > the event of any such calamity occurring again' at' the American war ; ,the first, point that was brought to the notice of the Government wals, that it was necessary for the Government to interfere, and insist upon the' cotton being properly cleaned and properly shipped ; so great pressure was brought to bear upon the Government at that time in the interest of the spinning trade of this 'country that your Lordship will remember aCotton Frauds Act was passed. "It gave rise to a great (ieal of irritation. All the reasons which may'now bei advanced why the Governtnent should not interfere in the matter of adulteration of wheat were also urged at, that time with regard to cotton, and eventually the Govern- ment repealed the Act. But< what happened immediately after the. Act was repealed ? Tlie trade took up the matter, saying, " We must protect, ourselves from this fraudulent "t. mixture, and 'from this 'shipment of dirty cotton.", • The principal cause of the shipment' of dirty cotton at ; that .time was the , form of the contract.-' The only basis upon which people would buy in this country was that' of " fair.'' ; There was a standard of " good fair," another of ."good," very seldom did you get a standard of "fine;" but, at ahy rate, " fair quality " was taken as a basis for all' contracts. That "fair quality " was a very inferior quality. n,, i , .-yj-^ ' ! As I have said before, there-were three grades known to the trade, but the onlyiway in which we could make contracJts for arrival business was- on the basis ofc " fail-," so "t&at.if you sMppeel!' cotton itd Liverpool a halfpenny oral penny pern pound better^ >it 11 had to be delivered on the basis of " fair," and the seller got no allowance for it. The consequence was that if a merchant shipped to this country large quantities of good cotton, he could not sell it to arrive except at a great sacrifice. The better cotton had to be held, as the same class of wheat is now held, to sell on its own merits, and the trade lost the benefit of the arrival business. "Wheat is now in exactly the same case. The importer who has encouraged his constituents to ship the best wheat loses the advantages of selling " to arrive," because, if he sells it, the contract must be on the " fair average quality," which is the basis of the trade. A very large- quantity of our own wheat comes to Liverpool, and is sold on the spot at the price of Calif omian wheat, which is very nearly the best in theanarket; we cannot trade in wheat " to arrive " because the basis of trade is " fair average quality." This basis offers exactly the same premium on shipping poor wheat that the basis of " fair " offered on the shipment of bad cotton. What happened ? The merchants, represented by an old Association called the India and China Trade Association, discussed this very point which we are discussing now, and agreed that the basis of the contract was wrong, but we could not get the trade to agree to any change in the form of contract. In fact, we were in much the same position as we are now in with the Com Trade Association of London. However, a time came when the cotton crop turned out exceedingly bad, and sellers were " slated'," by very large allowances. Exporters of cotton then came together and said, " We will have no more of this ; we will bind " ourselves to sell on no other terms but mutual allowances." What then happened ? The speculators in the article could never fulfil their conti^cts, because there was no exporter to sell on the old terms, and they were obliged to come to the new form of contract. It is quite forgotten that we ever lived uilder such a barbarous system. The standard of arrival business, my Lord, is now raised, not to " good fair," which is the one above " fair," but to " good." The greatest quantity of cotton is now shipped on the " good" standard, and the quality is immensely improved, to the grCat benefit of everybody concerned in the trade. By some similar change in the form of the wheat contract we think that the same result would be obtained as regards the quality of that article. We perfectly understand that there is no intention on the part of the Grovemment to hold over us a Wheat Fraud Act. The Ghairma/n. — No. Mr. Coke.- — ^If the gentlemen who drafted this document had had the exJperidnce which we had in cotton they would not advocate the maintenance of the jireseht con- tract for wheat. Having been brought face to face in this matter, I think the com trade of Liverpool and the com trade of London will come together and continue to hammer at this business until it is satisfactorily settled. Mr. J. H. HyJbback (Liverpool Chamber of Commerce). — I have to speak to-day both, as an importer of wheat into Liverpool to a large extent, and also as representing one of the largest. local miUs; lam a member of the Board of Directors of the North Shore Mills, and have the authority of the Board to speak fpr them on this matter. We use about 1,500 tons of wheat in the week, say, 70,000 tons in the year. The quantity of Indian wheat which we use at present is from eight to ten thousand tons in an average season. There can be no doubt whatever (I have made careful inquiry from the miU manager on this point) that this quantity could easily be doubled if we were sure that jn buying f . a. q. " we knew about what we have to expect." I am quoting from the London East India Wheat Committee's reply to the India Office, just read. The point is really that, after the month of August, or at any rate September, we do not know what we have to expect, and I think it is shown by the tables with which you Jiave supplied us, relative to the admixtures in Bombay wheat, that, from an average of 2 per cent, in the months of August and September, the average goes, down suddenly to 4 per cent., or ratjier over 4 per cent, in November. It is just this uncertainty wMch prevents millers, both the North Shore Mill and others whose opinion I am also expressing, from buying Bombay wheat " to arrive " after August; or September. I would put it to the sellers of Bombay wheat whether they are not shuttiiig themselves up to deal only with speculators. Speculators are, no doubt, a very desirable class of people,_but they are only one set of buyers, while shippers could secure two sets — millers and speculators — ^if they cleaned their wheat more carefully. Further, I would say that I do not see any reason why good Bombay wheat, not only B 2 12 the choice, should not fetch approximately the price of Oalifornian wheat, taking one season with another, if properly cleaned, and free, not only from earth, but from stones, which are also a great drawback. I may say here that I think there is one omission which has not been touched upon ; I believe the Liverpool form of contract is not mentioned in the London reply, nor even in the India Office reports.* j^ great many of the questions dwelt upon in the London reply are settled by the Liverpool contract ; for instance, the Bombay shippers know very well that when they sell on the Liverpool, contract they undertake to deliver the wheat in fair merchantable condition, and that engagement is very largely made by the shippers having houses in London as well as in Liverpool. Under these circumstances the weevil dust, and so on, is a seller's consideration. When the London Bast India Wheat Committee speak of " lastly and chiefly " they must be aware that the question of the wheat being attacked by weevil is dealt with under the conditions of the Liverpool contract, and that those conditions are largely accepted. I must unhesitatingly adtocate 2 per cent, refraction as being a fair basis of settle- ment./ I think that all we want to do is to raise the basis ; the basis is fixed in London, and on London standard, and if the basis is raised the whole question is settled. The Ghairmam,. — I understand that Mr. Manuel (of Ralli Brothers) cannot stay very long, and I therefore ijow call upon him. Mr. M. B. Manuel. — My Lord, I have listened to the remarks made by the gentlemen of the Corn Trade Association, and I have also listened to Nthe gentleman from Liverpool, who remarked, amongst other things, that if those people who penned the report of the Corn Trade Association had had any knowledge of cotton they would not have penned it. I happened to have been in Bombay at that time representing the firm with the largest interest in cotton, and although I may not agree with what the Liverpool gentleman has said, I think that he has proved the case of the London Corn Trade Association, which simply says, " Our opinion is that it is not advisable, " or desirable, to try and force sudden or radical changes in the natural condition of " a trade, but that it is preferable to let the improvement come gradually out of " the trade itself." I think that it has been proved that the improvement in the cotton trade has come out of the trade itself. The Ghairmcm. — I hope that it was never understood that we intended to press legislation, or to enforce it upon the trade. My wish is to see what can be done in the trade amongst themselves. Mr. Mcmuel. — There is a great desire that Indian wheat should come cleaner into this country, and that is the desire of everybody. If the gentlemen who deal in wheats want cleaner wheats, they can have them. What we say is that we ought to have the question widely canvassed and faced from all points. We find that, practically, when cleaner wheats are offered, they do not get the value, and if the trade is prepared to pay, as it has done in the cotton trade, they will get it finer — if they agree to pay more for it. Ralli Brothers constantly offer fine wheats, btit we can never sell them. Mr. Coke. — Mr. Manuel must have misunderstood what I said. His idea as to how the matter' should be settled seems to agree exactly with the course that I recommended. I thanked your Lordship for bringing the trade together, and I added that when we had discussed it fairly in all its bearings we should get it satisfactorily settled. Mr. John M'Dougall. — My, Lord, I am disinterested in this matter. I neither buy wheat nor sell wheat, and I simply analysed the wheat on your behalf. But I should say that the recommendations that I put at the end of the Report were simply my own ideas in the matter. I was requested by you, my Lord, to suggest any means that could be used for causing clean wheat +iO be brought here, and I suggested three courses, — one was the mutual arrangement between the trade that they should agree to a basis, and 1 suggested 2 per cent.; that there should be others who should buy clean wheat as a Syndicate, if that was desirable, or that dirty wheat should not be allowed to_ come here. From the analysing of these samples, I should like to call your attention to one or two points which somewhat tend to show that it is not simply a matter of what the Native arrangements are, the harvest must be taken at one * For copy of the Liverpool Corn Trade Association East India Shipment and Delivery Contract Form and other papers, &c., see Appendix A, pages 25-42. 13 time, and therefore theC quality for the season would be as the harvest was, but I find that the later shipments are altogether different in quality from the earlier shipments in the matter of dirt. I find that as to the quality of wheat, if a white sample is sold with a proportion of red, the proportion of red is very largely increased in the later shipments, and in many cases it is almost doubled. The proportion in the first months up to March was 21 per cent, and in July it was 40 per cent ; so that red grains have increased 19 per cent, iu a very few months ; but I do not find that when a red sample with white is sold, that the white berry, which is of greater value, is increased in the later shipments. I say there is no reason why this state of affairs should not be altered. The gentleman who has just sat down has said that if there is a demand for clean wheat the clean wheat will be sent. The gentlemen from Liverpool and London who are intimate with the trade know that there are two ways of dealing with wheat, one is the f . a. q., wheat to arrive, where I can quite see that there is a very great deal of difficulty in selling a special sample, because wheat bought forward is, as a rule, bought for cover, and it is desirable that the sale should be immediately completed as soon as the seller wishes to take his cover to avoid a loss. But if a wheat is put upon the stand with 1 per cent, or 2 per cent, of different percentage of admixture it makes aU the difference. A miller puts his hand in the bag and criticises its value to Sd., and will give the increased value without the slightest doubt upon the increased quality or cleanliness. But if it is buying the special sample on the c. i. f . terms, so that the sample has to be passed and the buyer knows that he may have t-o sell by wire, and that the sample would have to be sent with it, there is therefore a great difficulty. In the matter of quality, the miller knows what is just the price, and nothing more or less, and he calculates his dirt ; but iu the c. i. f . parcel it is necessary that he should buy whatever quality is going, and therefore he does not buy the odd sample. From the present position of matters, how can the trade improve unless some action is taken to alter the terms of the contract I do not know, because if the fair average quality principle is to prevail there never will come a time when the matter can improve. It is to the disadvantage of the importer that he should ship for one season gradually improved qualities, because he has to deliver to his sellers without an increase in price, so that imless the terms of the contract are altered, I do not see how the gi-adual improvement is to come. Mr. E. P. Maxsted (HuU Chamber of Commerce). — My Lord, I rather lost the point of the gentleman here on the right, Mr. Manuel. " If you bring the proper quality of " wheat to the market you will get your price for it." It has been my experience, and a very long experience, that those admixtures ai;e simply made in order that the shipper may reduce the wheat which he receives from the Natives down to f . a. q. point ; that is, we have found in Egypt, and in the Black Sea, and in other places, years and years ago, that dirt was actually put in cargoes in order to have them passed as fair average quality before the Associations existed of having it defined as to what the percentage should be. Mr. Manuel has stated his side of the matter. I remember, some 30 or 40 yaars ago, his principal, Mr. RaUi, coming down to Hull and advocating the question that linseed should be sold with a guaranteed admixture, and that has been adopted, and has worked exceedingly well ever since that time for the whole trade. I think that the millers who are here present, and who wiU tell you very much better than I can, that they would advocate cleansing the wheat on the other side, labour being very cheap, and thus save the expense of freight, as well as deterioration of the quality caused by admixture of dirt and odier substances ; and Aus the trade would be carried on very much more smoothly than it is at present. We all know that when a parcel of wheat arrives and is fuller of dirt than the buyer expected, and especially if the market has gone against him, that there is a great deal of trouble to get it passed. If the basis of 2 per cent, were adopted it would be fair both to the buyer and to the seller. There is no necessity to have such a large difference as 4 per cent, in wheat, and I think that my friends, the millers, will bear me out in that. There is no reason, except in a very few districts in India where they thresh out on the ground, why there should be such a large percentage ; and I, on behalf of Hull^ — and we import no small quantity of grain from India— will go heartily with the Liverpool people in trying t-o get the basis raised to 2 per cent. Mr. Seih Taylor (President of London Com Trade Association). — My Lord, I am quite sure that we appreciate the fact of your calling us together, not only in the interest of ourselves but also in the wish that you have to improve the growth of wheat in India. We accept your disclaimer that you are not going to dictate between the B 3 14 buyer aaid' sd^ierj-wrhicHj I think, would beibeyonditlie scope of our Legislature, wliate^rer may b® done im other icoia^tries, but I think that the limit toiW^hioh the Groverfanent might interfere with .advantage would be the prevention of wilful admixture offonfeign substances in wheat in India. "We must discriminate between what is naturally grown and is necessarily harvested' with the wheat, and the system of mixing dirt with i the wheat to, bring it down to a standard below that which should come here. That, of course, one feels is a practice which might very fairly be made a penal oflfence. ' But that rests with your Lordship and the G-overnment. I am quite sure that it would be to the ikterest of everyone if such an enactment could be passed. The difficulty; there is in fi±ing a limit of 2 per cent, refraction is owing not only to dirt, but to the seeds of various kiiids that' are grown amongst the wheat. "We have not only from India but from other countries foreign elements grown in the wheat;' and to have a system of cleaning wheat at the port of shipment would add more to the cost of whearfc' than the buyer w^ould give on the other side. However well it might be cleaned, in India th^re would ■ be still a necessity to clean it again on this side, and whether there were more or' less dirt, we should i still have to clean it here: Of course there are a rtamber^of" smaller millers who have not 'the necessary machinery, and they would like to ^'have wheat which they ! could more easily use; and, speaking for both the London- and Liverpool Associations, we shall only be 'too glad to consider the suggestions your Loriship; has 'made, and to introduce any clause we feellwouldibe. practicable into our'icontracts which would attain the end of 'improving the growth of wheat in India and of giving greater satisfaction to the biSyersi The admixture of red wheat with white is not such a' serious matter. That of course is merely a question of. diflferent value. If we get more red the value of the wheat is diminished in. proportion. You referred to the diflferent amounts of exports from India from time to time. There is' no "doubt that the growth of wheat 'has increased very largely in India, but the afflount' of ' e:kports for any particular year depends upon the goodness or badness of the crops. '^ From America we have had Very little indeed this year, and you cannot tdQ from a particular year what the averag© growth may be. The gentleman from^ Liverpool, the 'President of the Chamber of Oommerce, spoke of the analogy of cotton- with wheat. They are analogous only to a certain extent, as the value of cotton and wheat is so 'very different. The question of mutual allowance which he suggested^ would be too vexatious and too troublesome, as it would involve the analysis of everything thato^me, and would be beyond the reach of practical politics and practidal business. . -'; m. -i t ^- '. . , . . -;,, ■iMriObiei-^ I did not propose that. ' ' Mr, Seth Taylor, — The ' degeneration of 'quality was spoken to by Mr. M'Dougall. "Well, the good wheat comes first, and as you get to the bottom of the pits, and as the stocks get shorter as the season advances, the inferior qualities get sent oflF. There is a certain allowance for this even 'from the best exporting countries, and we cannot avoid it altogether. ' , .'•1 . ' :■ ! ' ' ' ■ ■■ ' , -i. ■-Mr. W:'E:Willson (Birmingham). — My Lord, I come from Birmingham, and have the honour 'of representing a large number of millers' in the Midland counties, and I haive to say 'that this is tons a' matter of very deep interest, and the more so ta millers away from the seaports, for this geographical reason, — -we being in the centre of England have a very heavy rate to pay before we can get wheat from the seaports into Gur. mills. The railway ■ rate from London by all the railways is 13s. \0A. peP ton to Birmingham, and 14s. ' 2cZ.' to '"Wolverhampton, I -speak under correction, but olily perhaps to the extent of Ad. per ton- The rates from Liverpool are lis. ^d. and 12s. 0(^. respectively, the rate from Hull is 13s. IGc?, or 14s. 2f/-. Now it needs no advocacy on my part to say that it is a positive necessity to have the purest wheat that we can lay our hands on, sa that we shall not have to pay carriage iwhich amounts to twO-thirds of the aVeriage rate from Bombay-' to this country. • 20s. may be taken aS ail average rate to' this country, and yet for the 112 miles distance from London, and the greater part of our Indian wheat comes through London, twe^have to pay 13s. iOc?., the same rate which is levied tipton the finer description of flour from Yienflaj TtieBte,^ America, or any part of the world'. We do feel it a very great hardship that we should ha'Ve to- pay for this- jje^centage of dirt, when we have to pay this high rate ' of ' 13s. lOd. pe*' ton. To some people it may seem. 'a sniall matter, but every 2^ per cent* of dirt meahs' I'i.' per quarter -to us in o^lriage only. I have heard irith. much paifi- that milMs' do not- understand their business. Ido liotlike td'have it 'said that I know 15 SQj^ttle of my business that I am not .willing to giye more f or a clean eainple than a dirty one. If •gentlemen choose to confine their business transactions tojbuyijQg montl:^ and months in advance, I grant that a different state of things i comes in, but Tve as millers buy our wheat beforehand to manufacture a certain grade of flojir, and .we find that the whe it is at times of such an inferior quality that we caimot manij- factiire the flour out of it. "We in the Midlands are not like Mr. Taylor, who i&a merchant as well as a miller, and who can deal in Mark Lane just as easily lin wheat as flour, whereas we should have to pay a commission for a sale in the market, and have to go to the market again to replace the wheat that came in unfit for the purposo for which we buy it. There is another matter alluded to in the report of the London Association, amd that is with regard to the weevil. We know that it is a, most noxious insect, and every one connected with the grain trade has had a great deal to do with the weevil. But the best way is to clear us of the ravages of the sveevil, as weevils are shipped in the bags of wheat. The percentage of weeTil in the wheat has grown so enormously that the value of wheat has deteriorated, not 2^ but 5 or 10 to even 15 or 20 per cent., so much so that we cannot use wheat which has been weeviled, not only on account of the loss of flour out of it, but also on account of the condition of the wheat, for we find that the weevil ihas eaten the grains* • It is not a shipper's qmestiesfr ; we do not buy the wheat free on board, we btiyit.to arrive here. Messrs. Ralli should not complain, but do their best to clear us of the ravages of the weevil (langhter) ; and I say -that this diflSculty, with regard to the inferior quaKty of- ^e later arrivals, precludes a great number of millersi most certainly in the Midland counties, from entering into contracts which they otherwise would desire to do, because no amount of compensation which ihej get from arbitration makes a sample of wheat which comes up unfit for their particular manufacture of equal value to them as what they bought. The Chairman. — I should like to hear Mr. Appleton, who is here On behalf of tlie Millers' Association. Mr. B. H. Appleton (Stockton-on-Tees). — My Lord, on behalf of the National Association of British and Irish Millers, I have pleasure in responding to your call. In the first instance, my . Lord, you thanked the gentlemen here present for attending on an occasion of this kind, but I think we ought to thank you' fOr calling us together on such an important subject as that of Indian wheat. Oitr wheat Supply is a question of deep importance, not only' to yonrself and to the gentlemen present, but also to the nation at l^^rge. If you look ;^or a moment at the presispLt position of our agriculturists you will see that, year .by yeai"i they are growing lessj and our wants are growing greater, and the question is how is that interregnum to be filled up. ,ilt is very natural to look tp our own colonies for wh^ we; requi;re to, ^s ^reat an extent as possible, and we have been looking for a great number; of. years to India as the most likely country to supply wheat for England. With regard to the quality of Indian wheat, having used it personally -from the begimnng^'J. ckn safely say it would be a great deal better if it were better cleaned..'' There is a very grdAt loss to the millers in the way that it is now so filled with dirt. You must know, my Lord, that there are about 7,000.to 8,000 millers in the United-Kingdom ; bat, owing to the foul state of the Indian wheats I do not think there are above -700 or 800 millers who use it. It is v^y unsatisfactory to the smaller miller, because he cannot grind Jndian wheat, and he cannot sell it^ simply on account :of its. foul state. If the wheat was in a better condition every miller in England would then use it, which he cannot do at the present time. There is no difficulty at all in sAyingttb the shippBr, you shall not ship more than two per cent, of foul- matter with '^he Indian whea* ; if that were done it ^o^ld come very much more into general use among the Smaller millei», who, I believe I am correct in saying, are doing a* large proportion of the business of the country. There is another question, and it is a most important one, that is, you cannot clean a great portion of Indian wheat, except through water. If -you put wheat through water, you, to^ a certain extent, destrcsf ^arfe> of its prpp^rties;- Some wheat you; may clean with screens, but others you baniiot, arid tiierefore it would be an immense advantage if in aiiy way it could be mariaged ■ so as to ship the wheat from India in a better and cleaner state. I do nob wish at all to outer into controversial points' about the^ charters and those otherquestions, bat simply as a miller. I have to thank you most heartily for bringing this matter before the merchants and millers of Bi^laHd, and I do hope that beneficial results will -accrue from this meeting to-day,. >:; d.iii. 1 -•. ■' •...,/ 'h .., !u:. .,, •, .^xav .vOid B 4 16 Mr. Arthwr Baher (Bristol). — My Lord, I am sorry to have to stand up to dispute the reasons for not using Indian wheat which have been given by the gentleman who comes here as representing the Millers' Association of England; but, for my own part, I am bound to say I do not at all agree with all that Mr. Appleton has said. I do not wish now to enter into the controversial subjects as to the modes of cleaning Indian wheat, or as to the advantage or disadvantage of washing wheat. It is a subject on which apparently I should not agree with Mr. Appleton, but I would merely state this, that my firm are large users of Indian wheats, and, however clean the wheat of India came to this country, we should not be able to use any more of it. The use of Indian wheat, as far as England is concerned, is restricted by the want of proper provision for cleaning it, and, if the mills are properly furnished for dealing with Indian wheat, other English millers will find no more difl&culty in using it than we do. There are conditions appertaining to Indian wheat which prevent its beiijg used in some districts of England to so large an extent as in others. I refer to its quality for use in baking. It is well known that Indian wheat differs very largely in quality, and very largely in nature, and the wheats that suit the public of one part of England do not suit the public of another part of England. My own experience is, trading as I do over a great part of the South and Midland counties of England, that flour which is suitable for one portion of my trade is utterly unsuited for another portion of it, and it is this consideration, more than any other, that restricts the use of Indian wheat in my own mills and in other large mills. My Lord, I quite agree with the remarks that have been made by Mr. Seth Taylor, and I do not think that I can add anything that will give force to those remarks. • But there are one or two points which have not been noticed that I would ask your Lordship's attention to for a moment. I think, my Lord, you yourself stated — it is stated in some of the papers before us — that the Indian wheats that are sold in this country are not saleable in France, and in other continental countries, by reason of their impurities. If I know anything of the corn trade, that is not the fact. My knowledge of the corn trade goes to show that Indian wheats that are easily saleable in England are- just as easily saleable on the Continent. The Chairman. — I do not think that I made such a remark. Mr. A. -Baker. — I beg your pardon if you did not, but it has been stated here to-day. I think I am right in saying that it has been stated that Italy and France did not take Indian wheats by reason of their impurities. Mr. JoJm M'Dougall. — I have made the statement that Italy, France, and Belgium are buyers of the better class of Indian wheats. The Ghairmam,. — I find that I did make the statement, and I am quite willing to give my authority. Mr. A. Baker. — I think further inquiry will prove that that is not the case> that the same qualities saleable here are dealt in equally largely on the Continent. My own experience is this, in buying a cargo of Indian wheat I take care to have in my contract a stipulation for continental option because, if I wish to resell, the continental buyer is as free and eager a buyer as any we have in England. Then the depreciation in quality towards the end of the season, has been spoken of as though it appertained only to Indian wheat. Mr. Taylor pointed out, and I wish to emphasize the fact, that that deterioration goes on, not only in Indian ,wheat, but in wheat from every country of the world. I do not think that you can point to a single country from which we obtain wheat where the quality does not go down at the end of the season. Mr. Willson spoke of cleaning wheats at the port of shipment to prevent them being weevilled. Now those who have handled weevilled wheats, andAND DELIVEEy CONTRACT. Liverpool .SiANrAitDi Muiual Allowances. TflE LivEEPOoL CoKN Trade Asso'ctATioN, Limited. ,,Iiiverppol,_ on We have this day bflught froni_ 188 on the terms of the Printed Rules of the Liverpool Com Trade Association, Limited, and the, Clearing House : Regulations relating to Margins. , .. . . - ' . ■ • r ,' ' r . per 100 lbs. ^ at J ^— ^ To be equal to the Official Standard ,_^ adopted by, and 4n force with, the Liverpool Corn Trade Association, Limited, at this date: :_ shipment from via J i:_ to,Liverpo,Ql, per steamer or steamers and , To be delivered, ex quay '""' store, at Seller's option, in fair merchantable condition ; a slight dry warmth, and slight weevilling not to be objected to, Importer's bags for Seller's account. 'Particulars of shipment shall bedeolared by the Qish, Seller to his Buyer before the vessel named has appeared in the Bill of Entry, unless the vessel brings its own ad-vioefij in which ease an -extra day shall be qillowed. All declarationsr shall, be made for shipments, by.. steamers within thirty-five days, and for shipments by, sailing vessels within fifty A^J?> after th^ date or month of shipment named in the Contract, or if more than one- monlfh is named, then after the actual month of ; ship- ment. If the Seller shall make default of declaring within, the period , above named the Bayer shall have the right of closing the Contract by invoicing the graip. back to the Seller, at , its market value, such market value ( to be settled by arbitration, an4 it sh^U also be in the discretion of the Arbitrators to award daipages, if any, not exceeding ■ 6 per cent, of such value, according to the special circumstances of the case. There shall not be more than two separate declarations on leaoh 2,500 centals , of ,Gra|n. , In case of re-sales, a copy of first declaration shall be acceptedby Buyers if passed oh in due course. , , ' Ship damaged or sea-'v\ater damaged Grain may by rejected, and the Contract, so fas as regards the quantity rejected,!shall be atan end. ^-r,, , . . ■■ lEn theeveht of the Grain declared, or anypart thereof, bein^ prevented 'from arriving by peril?, of the seas, the Contract^ so' far as regards suoh; Grain, shall be at an end. ' 1 . ' 1; ,,. ,■■■■" ... I In case of prohibition of export,- blockade, or hostilities preventing shipment, this Contract, or any , unfulfilled part thereof/' shall be at an end. Seller to pay • ■ ' ' r r.B rofcgrage of. per cent., Contract cancelled,in! par,tiaJ„exeiQfl,tioa of this Contract shall be' considered as if, shipped under.ra separate Contract. , -•'. ,.,'■:■,.' i „r - ,.,. ,,,, If the Grain .tendered, or any. : pari, thereof is, a^ regards quality ^^ cohdition' ^'aldmisturt^df 'fliiftt inferior to the Standard, the Arbitrators shall award either-th^it the Graiio. be taken witl^ an allowance, or be invoiced baoJs to' the Seller at the miarket price df thj? 23 tioii.Ao- ceptance, sndBejeo- tionof Balk. Tenders. Grain contracted for on the day of arbitration, in either oaee trith or wilihont a penalty aot eseeeding 5 per cent. on BQch price according to the special circumstances, . A differeaiceiii.Talne of one penny per cental, or lees, BhaU not entitle Buyer or. Seller to any allowance, bnt this stipnlatioil shall not be taken hxto acconnt sbonld t he difference in value exceed one penny per cental. Should the qnality of the.Grain tendered be superior to the Standard by more than one penny per cental, the Seller shall be entitled to an increase of the price, such increase not in any case to exceed twopence per oentaU Payment, as per Bule 8, allowing interest equal to three months from date of being ready for deliyery.. This Contract is made between yourselves and ourselves and not by or with any person, whether disclosed or not, on whose instructions or for whose benefit the same may have been entered into. • ' Adopted 7th December 1887. Entered at Stationers' Hall, and sold only at the Clearing House of the Association. Holidays. Btexaws (induding Rules) of the Ln-ERPOOL Corn Trade Association, limited, in force on and after [Amended Olwuse, adopted 23rd May 1888.) 29 Constittt- tion o{ Clearing House Committee. Duties and Vowers. Settlement of Disputed. Special Imposition of Fines. Secretary. Secretary to act for parties to Contracts. Official receipts' binding. Bank. Indemnity." l^orms. .fi(!e for tices. JLUB iilVBBPOOL UORN XBADB ASSOCIATION, Limited, Clearing . House ^Regulations, in force on and after 1st October 1888. Section A. General Regulations. I 1. The Clearing House Committee, herein-after called " the Committee," shall consist of the President, Vice- President, and seven other Members of the Association, to be elected annually by the Directors. Directors shall be eligible. Casual vacancies shall be filled up by the Directors as they occur. The Committee shall elect their own Chairman, and two Members shall form a quorum. 2. The duties of the Committee shall be to make all necessary arrangements and regulations for periodical settlements, declarations, tenders, clearances, payments, deposits, and interest or discount to be paid or allowed thereupon, &c., in connexion with the future delivery basiness. 3. All disputes arising oat of the settling or clearing of Contracts, or out of any matter connected with the business of the Clearing House, shall be settled by the Committee, and their decision, signed by the Chairman or acting Chairman, shall be binding on all parties, subject to the right of appeal to the Directors in manner provided by the prmted Bules of the Asso- ciation.* When the Committee consider it advisable, a fee shall be charged by them for deciding cases of dispute brought before them. 4. The Committee shall have power to deal with and regulate all cases not provided for by the existing regulations, and arising out of any clearance or settle- ment, but any party dissatisfied with the mode in which the Committee have dealt, or propose to deal with any such case, may appeal to the Directors, who shall then deal with and regulate the case. 5. The Committee ghall have power to impose fines for breach of regulations, neglect of attention to notices, or carelessness in the making up of cash statements or other documents, when delay, loss, or inconvenience has, in their opinion, been thereby occasioned. A charge may be also made for each time a messenger is sent to obtain corrections of statements, &c., or for sending out corrections of same. 6. The Secretary of the Association shall be ex, officio the Secretary of the Clearing House. 7. The Secretary shall have power to act for, and shall be deemed the agent of each party to a Contract in receiving and passing on declarations, tenders, notices, money, and delivery orders, but this shall not affect the liability of the parties to each other on their Contracts, 8. An ofiioial receipt shall be a valid discharge for payments made through the Clearing House, and shall be accepted as such by the parties to the Contract. 9. All moneys which are to be retained by the Clearing House shall be paid into a Bank , to be nominated by the Directors. 10. The Committee shall not be responsible for the acts, receipts, neglects, or defaults of any officer of the Clearing House, or of the Association, or Of any Banker, or of any person with whom or into^ whose hands any moneys may, in connexion with the clearance or adjustment, be deposited, or come, nor for any loss whatsoever which may happen to any person in con- nexion with any clearance or settlement. 11. Only the form of Calls, Declarations, Tenders, Notices, &c., sanctioned by the Committee shall be used, and all parties shall carry out the instructions printed thereon. 12. Any party to a Contract, Declaration, or Tender having no office within a radius of 500 yards of the Corn Exchange, and having no Broker or Agent authorised to represent him whose office is within such radius,t shall name to the Secretary, as soon as possible, an office within such radius for the reception of all notices and statements (Default Notices ex- cepted) relating to such Contract, Declaration, or Tender. 13. Every pai'ty to a Contract, Declaration, or Tender shall furnish the Secretary. with such information in. regard thereto as may be required for the proper conduct of the business of ihe Clearing House, 14. The Clearing House, to which all necessary communications can be sent, shall be open on all business days from ten until five o'clock, except on Saturdays, when it shall close at one o'clock, or so soon thereafter as all Tenders shall have ceased to circulate. 15. In all places in these Begalations where the word Secretary occurs, it shall be read as Secretary or Acting Secretary, and all Sellers and Buyers may be represented by their Agents. 16. The Committee shall have power from time to time to rescind, alter, or add to the Clearing House Regulations, whether general or relating to Margins, Declarations, or Tenders, or to any of the matters mentioned in Clause 2, but no such rescission, altera- tion, or addition shall have any force or effect until confirmed by a majority of a meeting of the Directors specially summoned to consider the same. Hours of business. Meaning of word Seotetary. Power to vary and add to Uegula- tions. Section B. Regulations relating to Margins. Part I.— GtENEbai.. 1. Each party to a Contract shall have the right to Original call an original margin at a rate not exceeding 501. on Margins, each 5,000 centals of Wheat, or 25?. on each 5,000 centals of Com, upon the deposit by the Caller of an amount equal to that called, provided such call be made before 11 o'clock on the next business day after sale ; and a further margin may be called from time to time to the extent of any difference between the Contract price and the market value. 2. When no original margLd has been deposited, calls for margins may be made from time to time, to the extent of one penny' per cental more than the difference between the Contract price and the market value at the time the call is made. 3. For the purpose of calling margins, the quotations of the Committee shall be conclusive as to the market value until 4 p.m. on the next business day, or until any earlier meeting of the Committee at which any quotations shall be fixed. 4. All margins shall be deposited to the credit of the Clearing House with such Bank or Banks as may be determined by the Directors, and the Deposit Eeceipt shall be registered at the Clearing House during the business day following that on which the call is made. Calls made after 5 p.m., or on Saturday after 1 p.m., shall be deemed to have been made on the following basiness day. 5. Should either party to a Contract fail to deposit in accordance with this Section, the other party shall have the right to close the Contract forthwith, either at the market price then current for similar goods, or at a price to be ascertained by re-purchase op re-sale before the expiration of the following business day, and the difference between the Contract price and the closing price shall be the measure of damages payable under the^Contract. 6. No party shall be entitled to interest on any Interest, deposit made under this Section. 7. Unless otherwise stipulated, either party to a Eegistra- Contract shall have the right, at any time daring its " currency, to register it at the Clearing House. No original Margin. Market value. Time allowed. Failure to Deposit. • See Rule 17. 1 59578. t See Kule 2, Umegistered Contracts. Paui II. — Applicable only until Eegisibaiion or THE Contkact. 8. Deposits shall be applicable as security for all Contracts made subject to the Regulations of this Section between the same parties, and current while the Deposit remains. 9. Deposits shall be returned by the Clearing House, as instructed by both parties to the Contract. Retui-n of Deposits. D 26 Votifica- tion. Tees. In case of dispnte as to tte amount due to each, the matter shall be referred to arbitration as provided by the Bules of the Association,* and the Clearing House shall return the deposits in accordance with the award of the Arbitrators or the Directors as the case may be. If either party shall suspend payment, or become bankrupt or insolvent, or be declared a defaulter by the Committee, the Committee shall have discretionary power topay to the other party so much of the deposits as in their opinion he is entitled to. _ The Association or the Committee shall under no circumstances be liable for any over payment made under this Clause, and the remedy in respect of any such over payment shall be solely against the party to whom such payment has been made. 10. The Secretary shall, as soon as conveniently may be after the Deposit Receipt is' handed to him, notify the party for whose security the deposit is made. 11. Each party to the deposits shall, as the deposits are withdrawn or transferred, pay to the Clearing House such fees as may from time to time be fixed by the Directors. Method of Oalculation. Differences. First Seirei-s and LoiSt Buyers. JJifferences. Interme- diate Parties, Non- Hembers. Exception to Rule 9. Begistered Contracts. Part III. — ^Aepucabie to Registered Contracts ONLY. 12. For the purposes of registration and the calcula- tion of Margins : — (a.) Each 6,000 centals of grain, or 2,500 centals of Elour or Meal, shall be considered as a separate contract. (&.) Margins shall be calculated on quantities of 1,120, 2,240, 3,360, and 4,480 centals, at the rate of 181. per 4,480 centals for every penny of difference in the price, and farthings in proportion, and on other quantities at the rate of 21. per 500 centals lor every penny of difference in the price, and farthings in proportion. Margins on quantities which are not multiples of 500 centals, other than those named above, shall be calculated on the basis of the multiple of 500 centals next above such quantity. (c.) In the calculation of margins, no deduction from the price, or allowance of any kind, and no fraction of one penny which is not a farthing or a multiple > of a farthing, shall be taken into account, but the exact price shall be stated in registering the Contract. 13. The difference between the contract price and the calling price shall, subject to Clause 14, be the amount to be deposited in the Clearing House on account of the Contract. 14. Every party who has bought and sold the same goods, being a Member of the Association, or being a firm or incorporated Company entitled to the services of the Association under Clause 2 of Section A of the Byelaws, may instruct the Secretary to arrange the Contracts in a String, and such party shall appear_ as an intermediate, and the difference between the buying and the selling prices shall be the amount to be paid by such party to the Clearing House, or to be retained by the Clearing House on account of his Contracts, as the case may be, and no further action need be taken at future adjustments in regard to such Contracts unless the String shall be broken by such party in the manner provided for in Clause 20, or his Seller or Buyer should fail to deposit. Any other party may be registered on a String, either as intermediate or otherwise, on such con- ditions as the Committee may from time to time prescribe. 15. Notwithstanding the provisions of the printed Rules of the Association,t the suspension of payment, bankruptcy, or insolvency of an intermediate party on a String, or his being declared a defaulter by the Committee, shall not enable his Buyer or Seller to close the Contract, provided such intermediate party has paid any difference |)ayable by him on such Contract, but if the Committee are satisfied that the Seller to or Buyer from such party has suffered loss by the Contract not being closed, any difference due to such party shall be applied in or towards satis- faction of such loss, the amount of which shall be fixed, for the purposes oi tins Uiause only, by the Committee. 16. Original margins deposited by intermediate parties shall be released on the deposit of a similar margin by a previous Seller or subsequent Buyer, as the case may be. 17. Intermediate parties, as well as first Sellers and last Buyers, may call for an adjustment. 18. Each party to a Contract shall pay, in Clearing House stamps, such fees as may from time to time be fixed by the Directors. 19. The Secretary shall communicate to all parties the registered number of their Contracts, and all Con- tracts in a String shall have a String number in common. These numbers must be marked on all communications relating to the Contracts, and, when the Declaration or Tender is made, must be marked by the first Seller on his Docket. 20. The Committee shall have power to allow an intermediate party to break or alter the course of a String on his making deposits on the basis of the adjustment immediately preceding, or on the basis of the quotations of the Committee for the time being in force, in accordance with Clause 13 or Clause 14, as the case may be. 21. In the event of a Tender being made in part ful- filment of a Contract, the Deposits shall be apportioned in an approximate ratio of the fulfilled and the unfulfilled portions of the Contract. 22. Should any party to a Contract fail to deposit any amount due by him under these Regulations, the Secretary shall report the matter to the Committee, and shall notify such party in writing that he has failed to make such payment, and if the payment be not made within twenty-four hours after such notice (Sundays and holidays as defined in the printed Rules of the Association* not to be counted), the Committee shall have power to declare him a Defaulter, and to post his name as such in the Clearing House and in-the Room. In case of non-payment by a Seller, the Secretary shall notify the following Seller, who shall thereupon be considered the first Seller, and shall make his deposit, if any, accordingly. In case of non-payment by a Buyer, the Secretary shall notify the preceding Buyer, who shall thereupon be considered the last Buyer, and shall make his deposit, if any, accordingly. 23. Where the terms of Contracts are identical, ex- cept as to price, all arbitrations shall be held in accord- ance with the printed Rules of the Associationf as between first Seller and last Buyer, or between any intermediate party calling for adjustment and the first Seller or last Buyer, as the case may be, as though they were contracting parties, and the award made in pursuance thereof, subject to the right of appeal as provided by the printed Rules of the Association,-}- shall be binding on all intermediate parties. Should the terms of Contract not be identical, such arbitration shall in like manner be held as between the first Seller and last Buyer whose Contracts are identical. 24. Calls, Notices, Deposits, Payments, Releases, and Adjustments made between the first Seller and the last Buyer shall operate as Calls, Notices, Deposits, Pay- ments, and Releases between all intermediate parties. 25. All amounts deposited under Part III. of this Section shall (subject to Clause 13) be retained by the Clearing House as security for the relative Contracts, or, in case of a String, for all the Contracts on that String, until such Contracts have been fulfilled or closed, and the amounts shall then be paid over or credited to the parties entitled to receive the same. Belease Original Margins. Interme- diates may call. Fees. Begistered Numbers. Breaking the String, Tenders in part. Default. Arbitration between first Seller and last Buyer. Deposits, Secmon C. Begulations relating to Declarations and Tenders. 1. No Declaration or Tender shall be for a greater Declara- quantity than 5,000 centals of Grain, or 2,500 centals of ^^^^fi™* Flour or Meal. Should any Seller desire to declare or tender at one time more than the above-named quan- tities he must do so on separate Forms or Dockets. If the separate Tenders remain with separate last Buyets, Tenders. • See Bule 17. t See Bule 9. • See Rule 3. t See Rule 17. 27 Dedanr tioas. Formal Teudere. Piuoednre. Office tor Jfotlces. TOvided Tcaden. Continaed Tenders. the Tenders in the hands of each last Bnyer shall be considered as made under a separate Contract, so far as regardB the quantity deliverable per day nnder the printed Bnles of the Association.* 2. Declarations against registered Contracts shall be handed by the first Seller on the String to the Secre- tary to be registered and signed over to the last Buyer, and shall be debVered to the last Buyer within half an hour after being signed over, and on being so delivered tLe Declaiiitioii shall, subji ct to withdrawal as herein- after provided, be biuding on all intermediate parties. The Committee shall have power to allow any party to the Declaration to withdraw it at any time before the expiration of the period allowed by the Contract for Declarations, on his breaking the String and making necessary deposits, ui accordance with Clause 20 of Section B. Declarations against unregifiteied Contracts may be made through the Clearing House by the first Seller registering the Declaration before delivering it to his Buyer. Such Declarations may be passed on to suc- cessive Buyers in accordance with the Contract. The last Buyer shall deposit the Declaration Form or Docket at the Clearing House on the expiration of the period allowed by the Contract for Declarations. 3. Tormal Tenders, made with the consent of all the parties concerned, may pass through the Clearing House without a Sampling Order attached. 4. The party originating a Tender shall register it at the Clearing House before delivering it to his Buyer. After being registered it shall be passed on in accord- ance with the provisions of the printed Bnles of the Association,-}- but if the Contract or Declaration against which it is made be registered, the Seller^ shall hand the Tender to the Secretary, to be signed over to the last Buyer on the String or Declaration, and shall deliver it to such last iiuyer within half an hour after it has been signed over, and on being so delivered the Tender shall be binding on all intentiediate parlies. The Secretary shall, as soon as conveniently may be, notify the intennediate parties that the Tender has been made, specifying all necessary particulars. 5. If a Buyer neglect to name an office for the receipt of Declarations, or of Tenders, as required by the printed Bules of the Associationf or of notices under Clause 11 of this Section, the Seller, when he makes a Tender, shall be entitled to sign the Docket on behalf of the Buyer. After signing the Docket, the Seller shall deposit it at the Clearing House, and shall be deemed the Agent of the Buyer for the receipt of notices and state-ieuts issued by the Clearing House (Default ITotices excepted^, until the Buyer shall have named an office for the receipt of such notices under Clanse 12 of Section A, and notices under Clause 11 of this Section shall be considered as delivered if deposited at the Clearing House. 6. If the receiver of a Tender wishes to divide it into two or more pait8,f he must fall up a Sub-Tender Form for each part j assed on, and register the Dockets at a Clearing House within fifteen minutes after receiving the Original Tender, and must deliver them to his Bnyer or Buyers imiacdiately after registration. The Original Tender and the Divisions shall in all respects be dealt with as separate and distinct Dockets, except that when the Sub-Tenders are cleared at the same time as the Original Tender it shall not be neces- sary for the Divider to pay the amounts for which his Buyers are liable, and that in all cases of Divided Tenders it shall be incumbent on the first Seller on the Original Docket to give a separate delivery order for each division or snb-division of his Tender ; but the Divider shall procure the necessary certificates of quantities delivered and other customary statements. 7. When the last Buyer on a Docket wishes to re- tender the same goods in whole or in part under a new Docket before the Oi iginal Docket is cleared, he shall use the Continued Tender Form, and if the Oi iginal Docket and the Continuation Docket be cleared at the same time it shall iiot be necessary for him to pay the amount for which his Buyer is liable; but he shall procure the necessary certificates of quantities deli- vered and other customary statements. In other respects the Continuation Docket shall be treated as an Original Docket. • See Uvie 10. t See Snle 2. t TliU applies to every first Seller on a String, or registered Declarar tion, whether he be first Seller on the Tender or not. 8. On the last day of each month the only place for Prooedure the delivery of Tenders against Delivery, or Shipment ^",^.°'' and Delivery Contracts shall be the Clearing House, tracts, and it shall be obligaitoiy on all parties interested in such Contracts to be there represented from 11 a.m. until all their Contracts have been fulfilled, or until all Tenders have ceased to circulate. Original Tenders, having been previously registered, must be delivered to the first Buyer, or to the Secretary,* as the case may be, at or before 11 a.m., and no Tender shall be retained by any Buyer for more than five minutes. At the end of the Clearing, if any intermediate Buyers shall satisfy the Secretary that they have failed to fulfil their Contracts owing to the default of their Sellers, on application being made not later than fifteen minutes after all Tenders have ceased to circulate, the applicants shall be supplied with special forms of Tender, which they shall pass on to their Buyers, by delivery at the office of the Buyers or their Brokers, or by delivery to the Secretary, as the case may be, not later than half an hour after the circulation of all duly originated Tenders has ceased, and such Special Tenders may then be passed on to successive Buyers, by delivery at the office of the Buyers or their Brokers, or by delivery to the Secretary, as the case may be, until 3 o'clock, or such later time as the Secretary may, in case of need, fix, no Buyer being allowed to retain the same for more than fifteen minutes. In case of a King, Formal Tenders shall pass. This clause applies also to the last day of the currency of any Delivery Contract. 9. All parties to a Tender shall pay, in Clearing Begislra- House stamps, such fees as may from time to time be tionFees. fixed by the Directors. 10. If the goods tendered be rejected, the first Seller Eelnim of shall pay to the Clearing House the equivalent of one F ees. 'lender Fee for each Party to the Tender, not exceeding in all the equivalent of five Fees, and all Parties who have paid their Tender Fees by Clearing House Stamps affixed to the Docket shall have the Fees rettu-ned to them provided they apply for the same during the hours fixed by the Committee, and within one week after receipt of notice of rejection, and all Parties whoae Tender Fees are included in a Registration or Declara- tion Fee shall be entitled to pass a re-Tender without Fee. 11. All notices of rejection of goods tendered, and all notices bj the last Bujer claiming arbitration on goods tendered, shall be handed, before 11 a.m. on the business day next loUowing the day of tender, to the Secretary for the purpose of being signed over by him. The first Seller shall be deemed to have accepted the rejection unless he shall, before 3 p.m. on the business day next following the day of tender (or, if such busi- ness day be a Saturday, then before 1 p.m.), have handed to the Secretary, for the purpose of being signed over by him, a notice claiming arbitration and naming his Arbitrator ; and should the last Bnyer fail to hand to the Secretary, for the purpose of being signed over by him, a notice naming his Arbitrator before 11 a.m. on the second business day following the day of tender, the matter shall stand referred, upon application by either party, to Arbitrators to be forth- with appointed in the manner provided by the printed Bules of the Associationf in case of failure by a party to appoint an Arbitrator. All notices given under this clause must, within half an hour after being signed over by the Secretary, be deliveied to the proper party, and on so being delivered shall be binding On all intermediate parties. 12. Where the terms of Contracts are identical, except as to price, all arbitrations shall be held in accordance with the printed Rules of the Associationf as between first Seller and last Buyer, as though they were con- tracting parties, and the award made in pursuance thereof, subject to the right of appeal as provided by the printed Rules of the Association, f shall be binding on all intermediate parties. Should the terms of Contract not be identical, such arbitration shall, in like manner, be held as between the first Seller and last Buyer whose Contracts are identical. 13. All payments by the first Seller to the last Buyer, or out of moneys retained by the Secretary under Clause 23, made in respect of allowances under any award in ptirsuance of Clause 12, shall operate as pay- ments and settlements between all intermediate parties. Rejections and Arbi- trations. Arbitratiou between first Seller and last Bnyer. * See Clause 1 hereof. t See Eule 17. 59578. E 28 Tenders rejected after expira- tion of time. First Clearing, Defoult (see Association Bule IX.) Payments to First Seller. Inter- mediates' Clearing. 14. Where the terms of Contracts are identical, except as to price, and a Tender has been made in due time, but such Tender has been decided by arbitration to be not in accordance with the Contract, and the period specified in the Contract for Tenders has expired , the goods shall be invoiced back by the last Buyer to the fii'st Seller at the price of the last business day of the said period, together with such penalty (if any), not exceeding .5 per cent, on such price, as may be decided by arbitration, and all intermediate parties shall settle their differences as if a valid Tender had been made. 15. The Secretaiy shall fix a time for the first clearing immediitBly'bn receiving notice from the last Buyer that he is prepared to make payment and take up his d'elivetty-^orfier. Two hours' notice of such clearing shall bel given to all parties interested, but the date shall not be later than that provided by the ;^rinted Rules of the' Association.* ^16. The first Seller sjiall in all cases baud to the Secretary a, delivery order for the goods at or before the first clearjng. ^At the time fixed, the last Buyer shall present his deposit I'eceipt for the amount of his invoice, and all intermediate parties who have differences to pay shall pay the same, or present their deposit receipts for tie amounts payable, any deposits made under Section B being allowed for. The Sepretary shall then hand the first Seller's delivery order to the last Buyer, who shall give in exchange his delivery order to be ;retaihed in the Clearing House. ,17. When goods are tendpred with the, word " about " preceding quantity, payments shall be based provision- ally on the quantity named. 18. Should any party to a Contract, being an inter- mediate party, fail to pay his difference, or .being last Buyer fail, to. pay his invoice amount, the Secretaiy shaJl report 'the matter to the Committee, and shall also notify such party, in writing, that he" has failed to make such payment ; and if the paynient be not made within twenty-foTir hours after such notice (Sundays and Holidays, as defined in the printed Rules of .the Associationf not to be qpiunted), the Committee shall have power to declare him a defaulter, and to post his name as sijoh in the Clearing House and in the Room. In case of non-payment by an intermediate party the Secretary shall notify the Seller to and the Buyer from the interinediate party, and the Seller and Buyer shall each deposit the' whole difference unpaid at the time specified in the notice. Such deposits shall be adjtisted by the Comiliittee in the proportion due from the Seller and the Biiyeir respectively. In case of non-payment by a last Buyer the Secretary shall notify thd preceding' Buyer, who shall pay his own invoice amttunt at the time specified in the notice. 19. The amount due to the first Seller shall be retained by tjie Clearing House until delivery of the goods, but he shall, subject to the provisions of Clause 23, be entitled to receive payment on account as delivery proceeds, such payment being calculated on the quantity delivered during the preceding day, as certified by hiinself and the last Buyer. The amount due to intermediate parties shall, unless good reason to the contrary be shown, be paicl to them not later than six business days after the first clearing, and if the stateinent of actual weight delivered be not then in the hands of the Secretary, settlement for, any difference l?etween the quantity named on the Tender and' the quantity finally delivered shall be naade between first Seller and last Buyer on the basis of the market value of the goods on the third business day after the Tender, and each Tender so settled shall be cousidered as made under a separate Contract. ' 20. The first Seller shall not be entitled to interest on interest ou cash deposited until the expiration of three business Deposits, days from date of such deposit, but after that time the last Buyer shall pay interest to the first Seller at the rate of 5 per cent, per annum until the money is paid over, unless, in the option of the Committee, the Seller has been in default. 21. Intermediate parties shall not be entitled to interest on differences due to them, unless fiilal settle- ment be delayed beyond the tenth business day after the day of Tender. If the final settlement be 'so delayed the first Seller and last Buyer shall be jointly and severally liable to intermediate parties foi' interest, to be reckoned as pier Clause 20, on the diffej^enCes which such intermediate parties are entitled to receive, together with such other damages as the intermediate parties may prove to the saliisfaotion of the Committee. The amount of such interest and' dainages sba,ll Be deposited in full by both first Seller and last Buyer, together with such fee as the Committee may charge for the investigation, and the deposits Shall be adjusted in' the proportion due from firsts Seller and last Buyer respectively, by the Committee. 22. A statement showing actual weight delivered, and llaal signed on behalf of last Buyer and first Seller, shall be Clearing, handed to the Clearing House within three days of completion of delivery, when a final clearing shall be called by the Secretary. 23. When the last Buyer has claimed arbitration, but Dt'oy of such arbitraiiion cannot immediately take place owing Arb.tratioii, to the proper standards hot being made tip, or other sufficient Cause, the last Buyer shall direct the Secretary to retain out of the amount due to the first Seller a reasonable sum (to be fixed, in case of need, by the Committee) to be held as security for any allowance which may be awarded, but all intermediate p'Etrties shall receive paynient of their differences in full. '' ' 24. When, the goods tendered are awarded to, be invoiced back to the fixst Seller,, but the price, at. which they are to be so invoiced stands over, a provisional settlement shall be made, in accordance with the printed Rules of the Association,* at a price to be agreed upon, or, in case of need, to be fiied by the Committee, and the first Seller and the last Buyer shall each, oh the application of any party to the Tender, deposit a reasonable sum (to be fixed, in case of need, by the Committee) to be held as security for any difference between the provisional settling price and the price at which the goods are invoiced Dack ; but all interniediate parties shall receive payment of their differences in full. The 'Liverpool Cokn TBade Association, Limited. Resolution adopted 21st March 1888, as amended 4th July 1888 :— ' " That the words ' Liverpool Standard ' as applied to Bombay wheat shall mean, — ■ " (a) In the case of Choice White Bombay, not less than 93 per cent, of soft white club wheat, not more than 5 per cent, of soft red and hard wheat, and not more than 2 per Cent, of dirt, seeds, and grain other than wheat ; 'and— "(6) • See Bole 8. t See Bale S. In the case of No. 1 White [Bombay, not less than 85 per cent, of soft white club wheat, not more than 13 per cent, of soft red and hard wheat, and not more than 2 per cent, of dirt, seeds, and grain other than wheat." •See Rule 8. 29 APPENDIX B. Memorandum by Mr. Charles Whitehead, Agricultural Adviser to the Privy Council, as to the Introduction of Insects injurious to Corn and Corn Crops in Wheat imported from India. It is well known that the wheat that is imported from foreign countries is frequently brought to Grreat Britain in a very dirty state, and containing other seeds, dirt, and much heterogeneous rubbish. In some cargoes arriving from Australia, Sossia, and India, the condition of the wheat in these respects has been particularly bad. The presence of other seeds, dirt, bits of chaff, straw, and rubbish is in many cases due to careless- ness in screening the wheat, or from the want of any screening at all, when it is taken direct to the ports from the "godowns" or granaries, or from the village pits where the wheat is shot and covered over with earth. There appears to be no Government inspection of wheat in India. In the United States offers are appointed in every State to inspect and "grade" wheat, according to its quality and cleanness. But, besides that which may be termed a more or less natural dirty state from insuflBcient screening, or from no screening at all, there is a practice prevalent in India of deliberately mixing dirt, rubbish, damaged seeds, as linseed and rice, with clean wheat, to add to its bulk. ,, This causes much loss to wheat importers and mer- chants, and millers, necessitating the employment by these last of costly machinery. Not only this, but the foreign matter mixed with wheat imported from India into , this country serves as a medium for the wholesale transportation of insects injurious to crops. From the cleanings of Indian wheat several categories are formed at the flour mills. One consists of short pieces of straw of from 1 inch to 2J inches long, with pieces of wheat ears. This is sold for litter, and is distributed among various farms in the neighbourhood of the mills. In this straw the most dangerous corn insects might be introduced, insects of the type of the Hessian fly, which was without doubt brought into this country in this way ; and of the type of the Isosoma hordei, the ' ' joint worm," whose appearance in Great Britain is feared by agri- cultural entomologists. Another comprises light and misshapen grains of com with weed seeds, known in this country as " screenings," and which ought to have been taken ou^ of the bulk by the Indian producers. This is purchased for pigs and for chickens' food, being therefore scattered over the face of the land. , In this corn, weevils especially, and other insects may easily be conveyed. It is well known that weevils are most destructive to wheat and other grain in Indi^. ^b is also equally well known that they are brought over to British ports and granaries in abundant quantities with Indian wheat. , . , One species of weevil, the Galand/ra oryzce, the rice weevil, does enormous harm to wheat in Indian granaries, and to wheat while it is being transported in vessels to this country. The admixture of dirt, seeds, and rubbish causes the wheat to heat, which of course is detrimental to its quality, and at the same time causes the weevils to propagate unusually and to materially damage it. Sometimes the cargoes of wheat that have heated are nearly alive with weevils, entailing - enormous wast© and heavy losses upon importers^ This loss continues when the bulk is taken „ to granaries or warehouses, while the heat, is still evolved, and the weevils revel in it. , According to estimates furnished by Messrs. Ealliy the well known Indian wheat shippers,, the amount of loss occasioned by weevils is put at an average of 24 per cent. Takmg the value of wheat exported at 6,000,ODOZ., the amount of loss due to. this insect.^ in exported wheat alone equals 150,006i. Another weevil, the Calandra grana/Kia, closely allied to Calandra oryzm, is also brought over with Indian, wheat..- This weevil is known in British and otb^er European granaries,, but it is presumed that, the heat and surrounding circumstances of cargoes of Indian wheat favour its development and stimulate its powers of destruction. As it breeds freely in this country the danger of its distribution is very great. ,, Besides the actual money loss occasioned, by, these weevils, it is stated that the flour made from wheat muck infested by them is- injurious to health. Mr. B. p. Cotes,* the First Assistant, to the Super^ inteudcnt of the Indian Museum at Calcutta, ^ssEsrt^-thifL; maintaining that ," the weevils pontain cprtam Vesicant " properties which are known to be powerful irritants " to certain organs of the body, even in. extremely " minute doses." And in the ," American, E^nloniQ- logist" it is recorded that Gdkundra grana/rialhai been successfully used as a substitute for cantharis in blisters. With regard to the dirt in Indian wheats which is described as small, hard lumps of dirt and clay, it is sometimes absolutely necessary to wash and soak the ' bulk of wheat to soften the lumps. Little flies are often noticed coming from the wheat thus treated. These, flies may or may not belong to injurious species, but it is clear that flies are intro- duced in this manner, and insects of this description are among the most formidable enemies of many kinds of crops. Most serious danger may arise to the crops of this country, and must be apprehended, from the insects that can so easily be brought into it with imported griain from India as well as from other countries. The ravages of insects upon crops of all sorts in all climes increase year by year. New insects are con- tinually observed by the perplexed cultivators in every part of the globe?. The facilities of international intercommunication have widely disseminated species of insects. In this country economic entomologists are always expecting some fresh arrival, some new insect scare, and they joiti always most hearfily in any practical representadon that may be made to the Government to take steps to prevent the introduction of hew "pests. Realizing completely the danger to be feared from the present system of importing Wheat, especially from India, they mrtst hold that it is essen- tially important that the " dirt, rubbish, seeds,' antf " short straw," perfect vehicles for destructive insects; should be left in Iildia. * See "Notes on Economic Entomology," No.. 1. A pnjiminary account of the Wheat and Rice Weevil in Ind^, by E, C. Gaf>es, Calcutta, 1888. . ^ ' APPENDIX C. Impurities js Indian Wheats. Sheffield, Sir, 2nd May 1889, In submitting the result of personal experience and observation in India with regard to the dirty condiiion in which Indian wheats are exported* to be intelligible, it is necessary to begin at the beginning, and to traverse the whole subject, though no doubt much that follows is merely a repetition of facts already in your possession. ■^' ■ "■ E There are two kinds of impurities found among Indian wheat, viz. : — 1. Different varieties of grain, and smaller seeds, such as barley, .gram, rape, linseed, &o. ..,, 2. Dustj, small pellets of eEurth or clay, ah^ small stones. ' '. .' ' ' \ The "r^ot" or cultivator is entirely responsible for the presence of the first of these, and- generally, to some extei\t, for at least a portion of the second. 1 In order to ensure a crop of some description, h?| deliberately sows a mixture of wh^atjjugram, !a|iid 2 80 perhaps several other kinds of seeds, in the hope and belief that if the season should turn out unfavourable to wheat growing, it may be favourable to some one or other of the mixture of seeds sown. The mixed seeds grow up, ripen, and are gathered in and threshed together. As the " ryot " has no mechanical appliances for winnowing and cleaning, the primitive method of letting the grain and chaff fall from a sieve in the wind fails to separate and remove the gram and other foreign seeds from the wheat. I A portion of the earth and small stones present is due to the mode of threshing in use in India from time immemorial. A flat space is chosen for a " threshing floor " in the vicinity of the gathered and stacked grain, this selected area is plastered over with mud, which is trodden, beaten, and dried by the sun, to a tolerably hard even surface. A stake is driven into the ground in the centre of the prepared floor. Round the stake on a circular area, varying in diameter with the number of bullocks employed, the wheat aa taken from the fields is spread to a depth of about two feet ; three, four, or more bul- locks connected to each other are driven abreast in a circle over the wheat ao spread, the inner bullock being usually attached by a rope to a ring or noose, which revolves on the stake. In this way the grain is released from the ear, without being damaged, and the straw is crushed, or bruised and broken, into what is called "bhusa" or into what the " ryot " believes to be the only condition in which it is fit to be given bo his bullocks to eat. The prepared floor gets broken up, more or less, during the threshing proaess, and in taking up the grain, dust, small pellets of earth or clay, and small stones get taken up along with it. Winnowing in the wind, however carefully done, though it may remove the dust, cannot entirely eliminate the small stones and small pellets of earth or clay thus taken up A further source of admixture of dirt is found in the storing of wheat in pits, resorted to in India. When prices are low the "zemindars " who can afford to wait for a probable " rise " in the market may decide to store their wheat for a time. This is done in the. following way : — A hole eight or ten feet deep, and about five or six feet in diameter, is dug in a carefully selected suitable place, this is lined with chaff or "bhnsa." and the wheat put into it, and covered up, first ,with chaff or "bhusa" and then with earth; the manner of storing is in fact almost precisely similar to the way in which potatoes are stored in this country, only the pits are deeper. It is, of course, impossible to remove the grain from a pit ,of this description without some earthy im- purities being added to it, and it is chiefly while stored in the manner described that Indian wheats get damaged by insects and become "weevilled." The smaller cultivators are, however, much too poor to wait for a rise in prices, indeed in many cases their wheat crop is mortgaged to the local " bnnniah " before it is gathered in from the field. So far the- introduction of a variable proportion of the foreign matter found among Indian wheat is a natural and innocent consequence of the "ryot's" endeavour to ensure a return for his labour, together with possible carelessness as to the condition of his land, and the result of his primitive threshing, win- nowing, and storing arrangements. Any further addition of dirt, whether such addition be made by the " ryot " or by the " bepari" or middle- man, is diie to the premium placed on dirty wheat by the system or basis of purchase which buyers for the European market have adopted. It is assumed by the export houses in India that all Indian wheats contain a minimum of 5 per cent, of foreign matter, or, as it is called, "refracts" 5 per cent. How&oer paradoadcal it may appear, it carmot be Mspwted that, im, consequence of tnds fixed mitdmwm " refraction," the " ryot " is a loser if he sells clean wheat, amd must also lose by selling dirty wheat. The exporting buyers and the " bepari " or middle- man, by means of this 5 per cent, "refraction," play a "heads I win, tails you lose," kind of game with the Native cultivators. In effect, they are mulcted in a penalty increasing up to 5 per cent, the nearer their wheat approaches to a elean condition. That is, other things baiug equal, th3 cultivator who sells wheat with a less percentage of dirt mixed with it than the fixed minimum loses the difference between 5 per cent, and the actual percsntage of dirt present, or, in other words, if there, is only IJ per cent, of dirt in the parcel of wheat which he sells, he loses 3J per cent. _ , Practically, the custom of buying subject to a fixed minimum "refraction" has established a standard of impu?-ity, which there is neither fraud nor rascality in adulterating to, as, should an analysis ' of samples show the "refraction " to exceed 5 per cent., a deduc- tion is made pro rata from the amount to be paid to the seller. It would be placing the "ryot" much lower in the scale of intelligence than he actually is, to suppose him incapable of comprehending that it is he who pays the cost of carrying 5 per cent, of foreign matter mixed with his wheat by rail and steamer from India, and up to the point of delivery into, the hands of the miller, and also for the separation and removal of such foreign matter by washing and soreening. But while it continues customary to buy on a fixed percentage of " refraction." it is clearly to his injterest to supply 5 per cent, of dirt. ' As excess " refraction " is deducted from whatever price may have been agreed on between buyer and seller in India, there does not appear to be any good reason for having a fixed standard of impurity. If the deduction for impurity was made variable with the percentage found, the direct inducement to adulterate would be done away with. A great reduction on the quantity of foreign matter now found in Indian wheats could undoubtedly be made by the "ryots" sowing clean seed wheat and exercising greater care in threshing and winnowing it, but so long as the present modes of threshing and storing continue, absolutely clean wheat cannot be produced. Supposing it possible to remove all particles of dust and dirt, there would still remain the question of its being necessary to wash Indian wheats, because of possible defilement from the urine and droppings of the cattle employed in ^threshing, or, mora correctly, treading it out. The mixing of white and red varieties of wheat together is not an unimportant matter as regards the valine and general suitability of Indian wheats for both stone and roller mills. But whether admixture is solely due to the sowing of mixed seed wheat, or to this coupled with carelessness on the part of the " bepari" or middleman, its tendency is to lessen values, and as there is no compensating advantage, such as payment for dirt affords, it may be regarded as a minor evil calculated to work its own cure. The continuance of an objectionable tax on the Indian wheat export trade is necessarily a hindrance to the further development of India's vast resources as a wheat producing 'country, as yet only to a small extent utilized. The tax is discreditable to both parties most directly concerned, that is. to shippers and cultivators, but in a greater degree to the former than to the latter, since they are clearly chargeable with having introduced and fostered it for their own possible advantage. It has been shown that it is impossible for the " ryot " to benefit by it. That being so, it cannot be fair dealing, or the loss would not thus inevitably be all on one side. If the "shipper" inoun-ed a risk of loss from shipping dirty wheat, it is reasonable to suppose that his infiuence would be exerted to remove such risk. The writer's experience, when engaged in an endea- vour to introduce steam threshing machinery into the Bombay Presidency and Central India in the early part of 188.5, showed that " shipping houses " could not be induced to take any active part, or make any effort whatever, to promote the export of clean wheat from India. Collectively, and as an abstract thing, merchants expressed warm approval of the principle of exporting clean wheat. The Bombay Chamber of Commerce passed resolu- tions eulogizing and approving samples of clean wheat threshed by the steam threshing machine, and sub- mitted to them by the Director of Agriculture (Mr. Ozanne), and condemned the shipping of dirty wheat to Europe. But, when it came to talang a step out of the customary groove, when one of the largest "exporting houses" was asked to buy a parcel of absolutely clean wheat, threshed by the steam threshing 31 machine in the Nasik district, the reply was a coarteous refusal to purchase, on what was probably the most convenient and plausible pretext at hand, that " they " never bought grain except where they had an agent " establishftd." One member of an important " shipping house," in conversation with the writer, said frankly, "Why " should we trouble ourselves on this matter? We " do not come here to do business for the beneftt of " the ' ryot,' but for our own benefit, and, if we can " do business to our own satisfaction and profit as " things are, it is no concern of ours that the ' ryot ' " does not secure a fair price for his grain." The cuBtum of "selling forward," that is, selling a shipment of wheat in England before it is bought in India, and the method of adjusting prices on averages of samples adopted in this country, are both difficulties in the way of the exportation of clean wheat from India, but they could probably be more easily sur- mounted than the self-interest, apathy, and indifference of Indian wheat exporting firms. The reforms necessary before any reduction can be efi'ected in the quantity of dirt shipped with Indian wheats are, — 1. fieform of trade customs. 2. The " ryot " must sow clean wheat in clean land. 3. The " ryot " must adopt some method of threshing and cleaning his wheat which will not neces- sitate its being brought into contact with the earth. 4. An improvement must be made in the mode of, or in the arrangements for storing. A reform of trade customs should be the first step to be taken, and this should begin by the repeal of the fixed minimum ' ' refraction." Wheat is purchased in India by measure, a.nd sold in England by weight, and as earth and stones are, bulk for bulk, much heavier than wheat, the shipper obtains a slight advantage here also from " dirt." In this connexion it may be mentioned that the adoption of one standard of weights and measures throughout India would simplify and facilitate business. At present there are three or more. 'rtiere can be do doubt that, given an inducement to supply clean wheat by the offer of a higher price, that is, by the purchase of wheat on its merits — the only fair basis of purchase — clean wheat would be forth- coming. Though the "ryot" may truthfully be described as foolishly conservative in many things, adhering to the manners and customs of his forefathers, with a perti- nacity and determination which might often be more usefully directed, he will adopt an improvement readily enough when he sees clearly that it is to his interest to do so. One of the principal reasons for his contmmng to tread out the wheat on a threshing floor by means of "bullocks is that, as already stated, he believes there is no other way in which the straw can be made mto "bhnsa" nr fodder. He might, however, be shown that the straw could, if necessary, bo trod into "bhusa." after the removal of tbp grair, by some such means as are now in use for threshing rice. Winnowing and cleaning machinery would nn- doubtedly. enable the "ryot" to produce m, better sample of grain, bnt such machinery is not indis- pensable to the obtaining of clean wheat from India. Provided that clean seed wheat is sown in clean lanrt, and that the resnlting product is not afterwards brought into contact with the rarth during threshing or cleaning, or stored in pits of the description at present in use, it is quite possible for the ryot to produce clean wheat with bnt a small and com- paratively inexpensive addition to hie present primitive ^''if'the wheat was kept from contact with the earth by a sheet or sheets, made from the material used for "gunny bigs," during the threshing and leaning processes, one of the foresomg conditions would be complied with at a very small cost to the ryot. The general introduction and "«^ "fj^f °^„*\'^^,«^;^f machinerv in the wheat growing districts of India is ZTfZard as a soluHon of. that pj.rt of the problem m hand connected with threshing and cleaning While there is much to be said in favour of the employment of steam threshing machinery m India^ WB^ntVoduction must necessarily be gradual, and to wait for its efl'ect would be to postpone the desired improvement to an indefinite period. The opinions and prejudices of the "ryot" are probably the least obstructive of the many difficulties in the way of a general introduction of steam threshing machinery into India. Objections raised by the " ryots " to the working and to the result of the working of a steam threshing machine in 1885 were such as could be readily overcome. The fact that the threshing machine did not bruise the straw and make it all into ' ' bhnsa " or fodder was the main objection raised against it. A good deal of importance was attached to this alleged short- coming, and it was urged that the cattle could not eat the straw and chaff as produced by the threshing machine. Believing the "bhnsa" or fodder obtained in the ordinary way to be more or less tainted and defiled by preparation, the writer determined to submit the question to the bullocks themselves, as being the best judges of the qualities of " bhnsa." Some broken straw and chaff produced by the threshing machine was therefore laid side by side with about an equal quantity of " bhusa " trodden and bruised by bullocks in the usual manner. Several bullocks were driven near the heaps and allowed to choose for themselves. In every instance, without exception, the bnUocks, after sniffing at both the "bhusa" and the straw and chaff produced by the threshing machine, showed their preference for clean food by feeding greedily on the latter, and rejecting the native " bhusa." The "ryots" who witnessed this appeal to the discrimination of the bullocks were manifestly surprised and disappointed that their opinions were thus contradicted, and had but few remarks to make on this point thereafter. It must, however, be acknowledged that, in conse- quence of the hard brittle nature of the most of the wheat sti-aw grown in India, crushing and bruising renders it more suitable for fodder, — ^less liable to cause injury to the animal's mouth and throat. Wheat straw is not always used as fodder in all the wheat growing districts of India, but it is resorted to when other more desirable fodder is wanting. When necessary, the attachment of a straw crushing and bruising apparatus to the threshing machine re- moves all possible objection as to the unsnitability of the straw produced by it for fodder. The only other sensible objection against the working of the steam threshing machine was that a small proportion of the grain was chipped. Owing to the extremely dry, hard, brittle nature of the wheat straw, already alluded to, and the dry hard condition of the wheat, this defect will be found very difficult to entirely eliminate. Superstitious ideas respecting the introduction of any, to the Natives, new-fangled inventions would be outweighed by a clear proof of pecuniary advantage to be reaped from their use, and the same may be said with regard to the objection that the "ryot" would have no employment for himself, his family, and his bullocks during the period of the year now occupied in threshing and cleaning his wheat. Supposing the "ryot's" personal objections to be entirely met and overcome, however, the only way in which the vast majority of Native cultivators could obtain the use of a set of steam threshing machinery is by hiring, or by some form of combination to purchase, which has yet to be taught them, as the first cost is far beyoiid the resources of the individual " ryot." Koads which would permit a set of steam threshing machinery to be drawn by bullocks across the country, have in many parts yet to be made, and any attempt to take a stsam threshing plant, of the smallest size and capacity at present made, do?m a grade of moderate inclination would probably be attended with disaster, if bullocks were employed. Facilities for loading or unloading heavy unwieldy artibles, such as portable steam engines and steam threshing machines, are conspicuously absent from Indian railway stations. There would undoubtedly be great difficulty and delay attending the execution of repairs to, or renewals of, partd accidentally damaged or destroyed, and the, to the Natives, somewhat complicated mechanism of a threshing machine, makes European management and supei-vision indispensably necessary for successful working. These, in the opinion of the writer, are much more serious obstacles in the way of a general adoption of Bt«am threshing machinery in India than the personal objections of the "ryot." E 3 32 The (question whether they are too difficult for British enterprise to surmount may be left with those who consider it to their interest to test the matter. "With regard to the storage of Indian wheat, it is probable that those who can afford to hold their wheat for, a, 'f rise" in prices could also afford the compara- tively small expense of making their storage pits clean and vermin proof, by lining them with concrete, bricks, or stone. Wheat is sometimes damaged in course of transit by exposure to wet, in consequence of no provision having been made at ^railway stations for temporary storage. This is a. matter for the Eailway Companies to remedy. If sufficient facilities are given for the examination of consignments at the railway termini, and the Rail- way Companies mulcted in penalties for failure to deliver in good cpndition as received, the needful covered, and in every way efficient, accommodation will soon be provided. Turning to the attitude now assumed by the Indian wheat exporting houses respecting the exportation of clean wheat, they practically say, — "We have tied our " own hands and those of the 'ryots' in this matter, and we cannot untie them without extraneous aid, ".or the assistance of the Government." But, while the influence, aud; if necessary, the power of the Government of India may be wisely and usefully exerted at a later stage, it does not appear: that Government interference is required for the initiatory proceedings of the desired reform, unless it should be needful to compel the abolition of the premium on impurity; , If 'a consideration of the question in all its bearings by the Indian Council, and by representatives of the various Corn Trade Associations, should result in prompt, decisive, and efficient reforms in the mode of appraising values, and the form of purchase of Indian wheat in this country, export houses in India Could no longer make the excuse they now appear' to rely on as a stifflcient reason for continuing the 5 per cent. • miniinum refraction, viz., "that it is necessary owing " to the action of merchants in this country." A trade custom wtiion gives a manifest advantage to the most influential party may, however, be expected to die hard, and it is very questionable whether a free, spontaneous, and immediate reform in the required direction by shippers of Indian wheats may be antici- pated, as a result of the expression of desires land opinions of millers and others m this country, however unanimous they may be. In the event of it being found impossible to induce export houses to forego the advantage which a 5 per cent, minimum " refraction " gives them, the formation of a Syndicate to purchase and export clean whfeat from' India is the only way in which the question can be practically dealt with. Such a Syndicate, if supported loyally by the millers in this counti^, and backed up by the influence and assistance of the Indian Government, to the extent of giving the " ryot " facilities for obtaining clean seed, and kindly counsel through their officials, could not fail in effecting the desired improvement. ' As the adulteration of wheat cannot be held to be fraudulent, being practically legalized by the trade custotn, it is difficult to s^e how any legislative ei^act- ment could be framed of a positive or prohibitory character to deal with it. It might be found possible, however, to support a Syndicate for the purchase and exportation of clean wheat by passing an Act of a negative character, which would make trading in dirty wheat illegal, and, therefore, contracts made in respept of such wheat not binding tior recognized in a court of law. In any case, no pressure should be put on the " ryot " to prodiice clean wheat until he can get a, fair price for it. Then, in all probability, the necessity for coercion in any form will have passed away. I am, Sir, Tour obedient Servant, , W. Gallon, Assoc. M. Inst. C.E. Sir George Birdwood, APPENDIX D. Indian Wheat and its Impukities. To the Editor, "Beerbohm's Evening Corn Trade ■ List." Sir, 10th May 1889. I CANNOT think the National Association of British and Irish Millers will submit to have the con- ditions under which wheat is to be shipped from India (except to the port of Liverpool) dictated to them by the London Corn Trade Association. The Hon. J. Forbes Adam says, " The fault lies not at the door of " Bombay exporters, but with millers,, buyers, and " Corn Trade Associations in England," and he adds, that " the Boiribay Chamber of Commerce resolved to " request the London and Liverpool Corn Trade Asso- " ciations to fix the refraction on all wheat sale ,^ " contracts at not over 2 per cent-" Liverpool a^eed — London declined ; and the latter followed this up with a report at the India Office meeting, ^hich I felt bouhii to denounce as a most uncompromising docu- ment, and which is really the most obstructive and no surrender manifesto which, I should say, was ever issued froih a public cominei-oial body called upon to assist in the improvement of a great national com- mercial interest. I did not think befpfe that an asso- ciation could be found in Engliand whose patriotism was so entirely confined to their pockets. 1 mentioned at the meeting that some of the largest firms in Ireland and England used very little Indian wheat, and several millers noted that a vast number of small millers cannot use it. The Government reports from millers prove this incontestably, but, notwithstanding this, I have failed to find one single sentence in the Lbiidon Association's circular which admits ivillingness to co- operate in assisting the miUers. It is suggested in the Government report that Indian wheat was probably sent to Mediterranean ports in better condition than to England, Jiut I doubt this. In Marseilles I know that, the climate being dry,apd hot, washing is one of the ordinary- operations of the wheat cleaning system on all wheats, and therefore all mills have the necessary washing and,-cleaning plants ; but the manufacture of pure semolina is a large trade there, and some sorts of Indian wheat are found very suitable, but in the very best SEimples of semolina I found traces of dirt aij.d stone. This illustrates a fact well known to millers, that, a,fter the "break flour','' the next to be damaged is the, highest qualities. Though I went to Lord Cross's meeting ,a,^ a member of the London Chamber of Commerce,. I had not intended to speak, but whilst sitting as a listeni r, a gentleman whom I dp not know came and asked me to reply /or, the London contingent, as the op\iev side had had it nearly all their own way. I did my best . (though .badly) to reply fo them, and I wish I could have more forcibly assisted the northern corn, traders and the millers. My knowledge of the milling trade enables me to say, without any chance of being contradicted, that almost unanimously the millers object to, the dirt in Indian wheat, and the same, I believe, , applie^ to the milling engineers. I believe they, would thoroughly, approve contracts being based on only 2 per cent, refraction. It is stated in the Government report that what Messrs. Ealli call the 5 per cent, ituff (how clearly they know the name to give it) is partly inade up of dirt and stones purchased hy the Native traders, and mixed into the wheat sold as " fair average quality." The practice ,pi:obably was suggested from the fact' that the' threshing flioors' g,re ; made ' bf dried mud, in which there are also stones. As it will 'take y6afs to generSlly Introduce the threshing machine, I suggest that an effort should be made to introduce cement threshing floors. Yours truly, J. HAfiEISON CaRTEB'. 33 APPENDIX B. Victoria Com Mills, Sheffield, Deab Sis, Ist June 1889. YouB report on the impurities of Indian wheat fnlly confirms the desire of English millers to purchase it cleaned. But it will be in vain to ask either grower or dealer to furnish it clean unless it is to his advantage to do so. English millers' objections to buy 'Indian wheat on terms of " f . a. q.," with dirt clause of .5 per cent, and average sample prepared in London, are manifold: — 1. That the grower does not deliver the wheat in marketable condition. 2.' That on its passage to England the wheat is being consumed and deteriorated by that abominable pest the weevil. 3. That " average sample " which is to test the quality of delivery is a monthly preparation by the London Com Trade Association over which the miller has no say. 4. That the " average sample " varies considerably, and affords no crit-erion to the millers what to expect in succeeding months. Buying this is very much like "pricking in the belt." 5. It is impossible to estimate the loss the English miller suffers by having to extract the weevil from the wheat in his mill, and so get the nuisance on his premises, instead of being extracted by the grower. In some cases this extends to 5s. per quarter,, and on tedious voyages in the hot season the wheat is rendered unfit for making flour. . That in cases of arbitration the members of the London Com Trade Association are the sole arbitrators. Without in any way doubting the integrity of those gentlemen, it is easy to see the miller is placed at a disadvantage; that re- ciprocity is all on one side. A miller, who best understands the interest t>{ millers, should form part of the arbitration to protect the buyer's interest. 7. In case of arbitration the miller, however far distant he may reside, is put to the trouble and expense of attending at die port where he bought the wheat, as there alone the arbitration must be held. 8. Indian wheat shipped with 5 per cent, of dirt in it can only be used by those English millers who have adopted costly cleaning machinery to treat it (who do not number one in twenty), thus sadly limiting the demand for Indian wheat. Were the wheat exported clean, its quality being well adapted to the English market, aU miUers would gladly use it, and thus aid the development of our Indian Colony. 9. The practice of adding dirt to the wheat is the most execrable of all. Of this admixture of dirt there is no possible method of ascertaining exactly the "5 per cent." The man who has the hardihood to mix 5 per cent, (or any less quantity), his elastic conscience wUl not scruple to mix' 6 per cent, or more, which frequently proves the case to the miller, who has no remedy. In England there is a law to punish the miller if he adulterates flour ; in India there should be a law to punish the man who adulterates wheat. . With its present rude mode of agriculture, India labours under many and serious disadvantages com- pared with those wheat growing countries who use the best appliances and facilities to lessen the cost of pro- duction. The latter could not easily be induced to return to the practice of those primitive times when it was commanded,—" Thou shalt not muzzle the ox that " treadeth out the com." It is evident that, before India can take her stand on equal terms with other countries to produce wheat for the world's market, much labour and wise fore- thought wiU have to be exercised, and abounding difficulties overcome. Amongst those things that wUl greatly conduce to this end :— , j 1. Let Government provide good railway and road accommodation, and as far as ppssible all other helps for cheap and expeditious transit; also public elevators or warehouses at convenient stations where the fai'mer can store his grain cleaned, to be properly graded by a Government Inspector, so that he can either sell or keep it, after the practice universally adopted in A,merica. In this way arbitration (so objectionable to all parties) will be avoided. The wheat having a fixed character will be sold on its merits, on terms alike to seller and buyer. I have seen in Dalrymple's farm, near Fargo, U.S.A., a wheat field of 12,500 acres cultivated by the plough and mules. The proprietor toid me he should reap the whole in 14 days % mowing machines, and thresh and winnow the whole in 28 days, and place it in trucks on the railway to be sent to an elevator at New York properly prepared for sale. 2. Let the farmer be encouraged and helped, if possi- ble, to procure and use the best threshing and cleaning machinery, to enable him to sehd his grain properly cleaned to market. To prove how cleaned wheat will bendfit him, take as an example lOO quarters wheals sold with dirt in to extent of 5 per cent., reduced by better cleaning by the grower to 2 per cent. Qrs. The English miller, or last buyer, receives of cleaned wheat - - - ' 97 Of dirt, for which he has to pay the price of wheat - - ... 3 100 £ 8. d. On this 3 qrs. dirt he has to pay carriage from the sender to the shipping port on an average, say, of 2s. per quarter - - 6 Fi-eight from Calcutta to BngKsh port (20s. per ton) on 3 qrs. - - 13 4 From English port to mills in the interior, average (6s. 8(£, per ton) on 3 qrs. 4 5 And for the dirt itself at, say 25s. per quarter, on 3 qrs. - - - 3 15 £4> 18 9 Practically, on the 97 qrs., he receives Is. per quarter, which more than compensates for the 10} per cent; reported to be lost by selling clean wheat instead of dirty. £ s. d. If the wheat was sold at 30s. per quarter instead of 25s. the amount would be - - 5 IB 9 If the wheat was sold at 35s. per quarter instead of 25s. the amount would be - - 6 8 9 Further, from machine threshing compared with bnllock threshing the former will secure more and cleaner wheat from the straw (I think by 5 per cent.), and by good winnowing he will provide wheat clean and sweet instead of dirty, and often stale, from the bullock's presence, when the bran or rind of the wheat berry from its spongy nature is liable to absorb offensive moisture, causing the wheat to heat in transit. If I have correctly estimated the advantage of steam threshing at 5 per cent., — £ s. d. 5 qrs. at 25s. will yield - - 6 15 5 „ 30s. „ - - 7 10 5 „ 35s. „ • - 8 15 This (or whatever is the correct proportion) will be profit to the farmer, as the time and labour saved will recoup him for the cost of improved means of working. The difficulties, vexation, and loss inflicted on the English miller by the present tortuous methods of selling Indian wheat would all be obviated by the grower preparing his wheat in a marketable conditign, and would more than double the demand for it. I am well aware that the needed improvements for India must necessaxily be of slow and progressive growth. A knowledge of their defects, and how to improve them, must be their first steps to advance- ment. I am, dear Sir, . _ .,. _ , Tours truly, Sawt.. Suhh. E 4 34 APPENDIX F. extkact foeeisn office diplomatic akd cobsulab Eeports on Trade and Finance. Eeport for the year 1888 on the Trade of the Consular ■ District of Odessa (Russia). The question of elevators, one of which has been snccessfnlly erected at Bletz, in the Government of Orel, at the junction of the Uslovaia-Bletz and the Orel- Verkhovie-Eletz-Griasi Railways, is now being seriously discussed by the Zemstvos, or Provincial Councils, in my district. It is felt that, if steps are taken for the proper storage, conditioning, and sorting of grain at important centres, so that it should be forwarded, as . means of transport are available, to the ports for ship- ment abroad. South Russia will be in a better position to compete with America and India than she is at present. How South Russia is pushing forward in the race of production is proved by tue enormous development of the export trade from this port, and even at the end of 1888 only half the year's crop had been exported. The stock then in warehouse was estimated at 3,100,000 tchetverts (2,232,000 quarteis), against 1,800,000 tchetverts (1,296,000 quarters) at the end of 1887. Annex B gives the quantities and values f. o. b. of the " several kinds of grain exported during the 'years 1887 and 1888, showing a veiy large increase in wheat, barley, rye, and oats, but a falling off in maize. The average prices f. o. b. during the year were as follows : — Winter wheat (Azima) e. d. Fine quality - - - - 28 6 [■25 Inferior quality - - - •< to [27 Spring wheat (Ghirka), — Fine quality - Inferior quality - s. d. 27 6 ■24 to J .26 Rye 16 Mai^e - - - - 18 6 The above prices are per Imperial quarter of 480 lbs. Barley - - - - 13s. per 400 lbs. Oats - - - l0«. Qd. per 320 lbs. Annex B. — Retiten of Principal Articles of Export from Odessa during the Years 1888 and 1887. 1883. 1887. Articles. Quantity. Value. Quantity. Value. "Wlieat Barley Bye Maize - Oats Sugar - Flour Wool - Sundry goods Tons. 1,031,768 356,660 216,251 179,280 60,539 42,406 18.733 8,208 161,628 S 6,878,960 1,548,020 741,4.W , 982,810 a93,0«) 1,156,808 , 197,445 228,730 1,491,920 Tons. 605,387 263,461 175,113 325,969 23.855 43,703 30,876 6,185 271,803 4,090,527 893,139 708,087 1,300,383 83,665 1,083,840 396,960 661,658 2,639,146 Total 2,070,462 13,514,170 1,746,312 11,867,304 APPENDIX G. National Association of Bkitish and Irish Millers. Memorandum of the Council in reference to the Conference on the Impurities in Indian wheat, held by invitation of "Viscount Cross, G.C.B., Her Majesty's Principal Secretary of State for Inuia, at the India Office, 8th May 1889. The Council is of opinion that it would greatly tend to the increased consumption of Indian wheat if it came in a cleaner state to this country, and that no good reason exists why it should not do so. Indian wheat is at present manufactured into flour by a comparatively few millers, who have large mills and sufficient plant of elaborate cleaning and washing machinery to prepare it for use. If it came cleaner it would be purchased by the smaller millers, who cannot now use it on account of its filthy condition. It appears to this Council quite absuid to defend on any grounds the useless waste of labour and money in brmging thousands cf miles a considerable proportion of dirt and other impurities, which must be eliminated before the wheat can be ground, and which could be as readily and effectually done at the port of shipment or principal centres of collection in the interior of India. The amount of dirt in the wheat has, however, another bearing on the question. The impurities largely consist of pieces of earth from the threshing floor, impregnated with offensive animal matter, and this, being packed with the wheat in bags, during the long voyage in close confinement imparts to the grain a taste and smell which is very objectionable, and which cannot be removed altogether by the most elaborate and costly cleaning and washing. There appears to be no good reason why the wheats of India should not be delivered into England of nearly as good flavour and sweetness as from other distant countries. The Council have considered the statements put before Lord Cross by the London Corn Trade Associa- tion, and wish to state that they are not at all in accord with them in this matter, nor do they agree that the views of millers are accurately given in the document in question, which is presumably written in the interest of shippers and not of the public. There can be doubt that the replies from the 510 millers in answer to the questions submitted to them by the India Office fairly represent the opinions, not only of themselves, but of the great bulk of the 8,000 corn millers of the United Kingdom. It has been argued that millers need not buy on the form of contract issued by the Com Tra(J.e Association, but can purchase on sample on arrival ; but, as a rule, millers purchase Indian wheat for forward shipment in order to cover the sales of flour made for forward delivery, and are compelled to use the form of contract or not buy in this way at all. The Indian wheat coming by the Cape is very much purchased for its convenience as "cover," and if the millers so buying are not able to clean it they have to sell on arrival. It is, therefore of great importance that the contract form should be altered, and the proportion of dirt allowed very much reduced. The Council hopes that the Indian Government will not allow the question to rest until some improvements have been effected, and insist on the wheat being shipped in a cleaner state from the ports of that country, and further trusts that any persons who purposelj' adulterate wheat with impurities may be 'dealt with by the criminal law, as the practice tends to injure the quality and flavour of .the grain, and to bring into disrepute the produce of a portion of the Biitish Empire, whereby the trade of the Empire is injured,- and the grain of foreign countries obtains an advantage in English markets from causes which are largely preventable. On behalf of the Council, R. Harvey Daw, President. J. H. Chatterton, Secretary. 61, Mark Lane, London, 15th June 1889. m ^ A)"