RQ 
quantities of cheaply-marketed meat will be greater or less than 
that incurred in selling small quantities of meat handled at a 
oreater unit cost. It is not unusual in the summer months for 
supplies to be greater than demand, prices to be low and con- 
siderable losses to be made; but as the trade continues through- 
out the year, such losses are usually recouped when the market 
surns the other way. 
(iii) The part played by the Banks.—It may be convenient to 
consider briefly, at this stage, the part played by the banks in these 
operations. It is obvious that the freezing works could not go 
on operating if they had to stand out of their money until their 
goods were marketed. When a sale is made, the terms of the 
contract are usually cash against documents on arrival of the 
vessel at destination, and this may be many months later. 
Advantage is, therefore, taken of the facilities offered by the 
banks. An advance of a proportion of the value of the meat 
san be obtained in the producing country, against warrants, 
directly the goods are lodged in cold store. When the goods are 
shipped, the bill of lading, together with the freezing works 
certificate, which certifies that the goods have been properly 
frozen, and the insurance declaration, are handed to the bank, 
which then advances a further proportion of the cost which now 
includes freight paid in advance. The banker, in making these 
advances, is guided by the prices obtainable for similar goods at 
the same destination, and also by his judgment of the trend of 
the market. He endeavours, in other words, so to restrict his 
advance that he will be covered in the event of a sharp fall in 
prices. This system of marketing finance is of great value to 
the freezing works and makes it possible for them to continue 
treating. The advance is made on a bill drawn either on the 
freezing works’ representative in this country, at 30 or 60 days’ 
sight, or, in the case of a direct sale, it may be drawn on the 
buyer in this country. Frequently, an English merchant estab- 
lishes a credit in the Dominion through his bankers in this 
country and, in that case, the bills will be drawn under that 
credit. In addition, a good deal of meat is “ passed through ” 
the bank. The documents, when handed to the bank, are 
forwarded to their representative in London and the bill is 
presented to the drawee for signature.