culties
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.

Where Buyers and Sellers of Sugar Meet

The Sugar Exchange is a market place, where buyers and sellers of sugar
or their representatives meet to trade.

The Exchange provides a concentration point, where, under any market
conditions, sugar may be bought or sold _at a price_.

What that price is, is determined by how much sugar is for sale and how
many people want it. If the supply is large and buyers are few, the
price will be low. If sugar is scarce and buyers are numerous, the
price will be high. Or, to put it in another way, when there are more
sellers than buyers, the market declines; when more buyers than
sellers, it advances. If the supply and the number of buyers are
normally well balanced, the price will be determined largely by the
cost of production and transportation. If events or circumstances
operate to increase or curtail either the sugar supply or the number of
buyers, and such events or circumstances follow one after the other
alternately, the price will fluctuate.

These are the results of the operation of well-known economic laws.

In the case of all commodities which cannot be bought or sold at a
common market place (or exchange), price fluctuations are usually wide
and frequent, because no large group ever has common knowledge of
supply, demand and other factors that govern prices--purchases and
sales are made direct between individuals, and knowledge of the amount
asked or paid is restricted to a limited few.

Through the common market place provided by an exchange, on the other
hand, market conditions and prices become common knowledge almost
instantly over the entire country. This tends toward stabilization--a
fact which, alone, helps to eliminate risks, and enables merchants to
buy at lower prices than if forced to dea