as a general
order, and if they stand there unclaimed for a year they may, at the
expiration of that time, be sold by the government.

The capital of a warehouse is its storage space. The rates vary from
1/4 to 3/4 of a cent per cubic foot. The charges may be based on the
amount of space consumed and the weight of the merchandise. The latter
often determines the floor elevation to which the goods may be
assigned. The more convenient of access the storage location is, the
greater the cost. Warehouse receipts are issued as evidence of
storage. All merchandise is conveniently bulked for numbering and
marking, and these distinguishing marks appear on the receipts.
Negotiable and non-negotiable receipts are issued as the needs of the
owner may require. The former permit advances to be made by bankers
upon the merchandise as collateral security.

FREE WAREHOUSES

These differ from bonded warehouses only in the fact that the
government has no control or interest in them. They are only for the
storage of imported goods on which the customs duty has been paid or
for goods imported free of duty or for merchandise of domestic
production and manufacture. They are managed entirely by the
proprietor, and the contracts for storage are, of course, between the
proprietor of the warehouse and the owner of the goods. The storage
rates in free warehouses are considerably lower than for goods stored
in bonded warehouses--the latter being a much more expensive business
to conduct. There is no time limit in free warehouses. Goods may
remain indefinitely. When they remain from six months to a year the
charges are collected usually at certain periods to avoid
accumulation. Experience shows that goods in free warehouses do not
stay so long as those in bond. The articles commonly found in these
houses are domestic and imported wools, cotton, canned goods, peanuts,
yarns, cotton piece goods, mattings, dry goods, etc. Perishable goods,
of course, do not find their way into bonded or free warehouses. These
are placed in cold storage.

BANKING FEATURES OF WAREHOUSING

Many of the warehouses find it advantageous to do a banking business
in connection with the storage features. Very frequently, for the
convenience of the importer, goods are consigned to the warehouse and
sent subject to a sight draft for the amount of the invoice. The
warehouse company will pay the draft with the exception of about
twenty per cent., which the importer is expect