That the element of TIME is important in the jobber's business no one
will deny. He does not base his selling price on cost, but rather on
the market price. Regardless of his cost, he must sell to meet
competition. It is equally obvious that the larger his business, or the
greater his distance from the source of supplies, the more important
part TIME plays in both his cost and selling prices.
All jobbers, large or small, are obliged to assume greater risks (even
proportionately) and exercise greater care, than, for instance,
retailers buying in small quantities. A jobber's business may enlarge
by a perfectly natural process of expansion, but his purchasing risks
increase in greater ratio than his business expands.
Similarly, under abnormal conditions, jobbers located at points
requiring several weeks in transit prior to delivery, must assume
greater risks than those located at the source of supply. In the event
of serious delays in deliveries or in shipments, even buyers located at
shipping points are confronted with this problem, and the difficulties
of those located at a distance are increased immeasurably.
These difficulties tend to accentuate the importance of TIME in modern
business. As business grows, instead of decreasing--risks increase. Any
machinery which might operate to eliminate or reduce this uncertainty
or speculative element in a jobber's business, would, we believe, be
welcomed. Exchanges provide just such machinery.
Other commodities, such as raw sugar, wheat, cotton, pork and coffee
have had this machinery for years and it was provided for refined sugar
on May 2, 1921, when trading in refined sugar futures was inaugurated
on the floor of the New York Coffee and Sugar Exchange, Inc.