In the current paradigm there is a nontrivial bias expected in the pro
cess of galaxy formation. Thus, the observed statistical properties of
the galaxy distribution do not necessarily extend to the underlying m
atter distribution. Gravitational evolution of initially Gaussian seed
fluctuations predicts that the connected moments of the matter fluctu
ations exhibit a hierarchical structure, at least in the limit of smal
l dispersion. This same hierarchical structure has been found in the g
alaxy distribution, but it is not clear to what extent it reflects pro
perties of the matter distribution or properties of a galaxy formation
bias. In this paper we consider the consequences of an arbitrary, eff
ectively local biasing transformation of a hierarchical underlying mat
ter distribution. We show that a general form of such a transformation
preserves the hierarchical properties and the shape of the dispersion
in the limit of small fluctuations, i.e., on large scales, although t
he values of the hierarchical amplitudes may change arbitrarily. We pr
esent expressions for the induced hierarchical amplitudes S(g,j) of th
e galaxy distribution in terms of the matter amplitudes S(j) and biasi
ng parameters for j = 3-7. For higher order correlations, j > 2, restr
icting to a linear bias is not a consistent approximation even at very
large scales. To draw any conclusions from the galaxy distribution ab
out matter correlations of order j, properties of biasing must be spec
ified completely to order j-1.