A written evidence issued by a warehouse company showing that certain commodities have been stored with it. Suppose that a merchant imports a quantity of wool. He is allowed to keep the same in what is called a " bonded warehouse " for a certain length of time, without paying duty; or the distiller of whiskey may store therein goods subject to internal revenue taxes for a limited time, pending the payment of the taxes upon same.
All transactions upon the Chicago Board of Trade for future delivery are based on the delivery of " warehouse (sometimes called ' elevator') receipts," covering the property stored in a regular elevator or warehouse, licensed by the State and under control of the State Public Utilities of Illinois.
All " elevator receipts" for grain must be registered by the State Grain Registrar, and all "warehouse receipts" for provisions, i. e. pork, lard, and ribs, must be registered by the Board of Trade Provision Registrar.
All regular grain elevators and provision warehouses are bonded to the Chicago Board of Trade for the faithful performance of their duties as prescribed by the laws of the State and rules of the Exchange.
In distinguishing between the terms "warehouse" and "elevator receipts," the former is the proper term, although the latter is often used by the trade to designate receipts covering grain on storage. Deliveries on provision contracts, however, are always designated as "warehouse receipts."
1 The name Wall Street arose from the fact that in the 17th century, when New York was settled by the Hollanders and known as New Amsterdam, there was a stockade, or wall, built across Manhattan Island near what is now Wall Street. This was to protect the inhabitants from Indian attacks.
In speaking of receipts covering grain delivered on contracts, the terms " warehouse receipts" or "elevator receipts" are understood to mean the same thing in the Chicago market.