The grain merchant, whether in business as a dealer for himself, or a coöperative concern must have an elevator, or place, where the grain may be collected and prepared for the larger market. Fruit dealers have houses for the collection and care of the fruit. Since these commodities are collected a little from one, a little from another, or for ripening, grading, or other purposes, they must be kept usually several days before the car is loaded. After it is loaded there is quite a little time before it reaches its destination. During this time there is money invested in these products, that is, capital is required. The local banker is called upon to help finance the purchases. The elevator company or fruit company has some capital, he depends upon borrowing for more. The banks when commodities are freely moving are frequently severely taxed to furnish the required money for the movement of crops. The banks at the terminal markets are also stressed for they are furnishing money to the buyers there, and the export commodities are paid for by money from abroad. So that many financial institutions are intimately interested in the crop movement capital. Whenever a local dealer consigns a car load of wheat to a responsible merchant he can deposit the bill of lading with his banker and draw upon the merchant for some 90 per cent of the value of the grain, providing the dealer has hedged so that there is no chance of loss. The banker will honor the dealer’s checks and hold the credit of the merchant as collateral. When grain or other food commodities have been stored the warehouse receipt is considered the best possible collateral for bank loans. Mr. Forgan, president of the National City Bank of Chicago, is quoted as saying:[190] “I have seen the time more than once when high-class stocks and bonds, and even government bonds, could not readily be sold, but I have never seen the time, nor do I ever expect to see it, when anything that has to be eaten could not be sold.” The warehouse receipts, therefore, above alluded to, constitute a collateral which is always available for the payment of debts. Furthermore, if the grain or provisions represented by the warehouse receipts are sold for future delivery, that fact adds a great element of strength to the loan, because there is a third party obligated to take the grain at a certain time for a given price.... The sale for future delivery--the ‘hedge’--is the final link in the chain that makes such loans the best in the world.”