> Recognizing the potential profit opportunity, the Nagoya merchant bought the future harvest of his region by paying approximately 10% to the farmers and writi

> Recognizing the potential profit opportunity, the Nagoya merchant bought the future harvest of his region by paying approximately 10% to the farmers and writing drafts for the rest of the negotiated amount. These drafts were not to be presented for payment before the rice was actually sold. When the harvest came in, he stored it and after three or four months sold it with a profit of 30- 40%, as prices had climbed in the meantime.2 It is interesting that this sort of financial instrument would have been totally impossible with water logged veggies.