Los Angeles daily herald., 1889-09-18


in the deal. 1t is to be regretted that
such wholesale robbery should have oc-
cured, as it will deter English people
from making further investments in this
section.
Value and Importance of a Produce
Exchange.
EDITORS HERALD-In your today's it,
sue note account of action taken on
yesterday, looking to the establishment
of daily sessions OF the Produce Exchange.
Properly conducted, this is most i'm
portant enterprise, and its good effect
cannot be over-estimated. This city is
the acknowledged commercial center of
this entire section.
There is no good reason why the products
Of the district embraced with radius OF
100 miles. should not be marketed here.
Under present conditions all parties de-
string to make purchases of grain or pro-
duce, are forced to send representatives
through the country and select such stock
as is demanded by their immediate
wants. There are no established
values; nothing is sold on a fixed
grade, producers have no means
of knowing the market value of their
products. Buyers naturally take ad-
vantage OF this fact, and submit offers
and make purchases at prices which
they know to be below the real market
value Of the article. In this way east
ern merchants buy our products at
enough below their actual market value
at the time to amount to thousands of
dollars during any given season. As a
matter of right and justice, this profit.
made by buyers, legitimately belongs to
the producers the legitimate result of
his investment and labor. If there was
some organization fixing values, the pro.
Queer would get market value for his
product when sold. Values are fixed by
supply and demand. Under present
conditions the supply of any given pro-
duct cannot be definitely known, but is
estimated by each individual buyer &C.
cording to his individual information.
Hence the marked diversity of opinion
as to the supply and the consequent
diversity Of opinion as to values.
There being no authorized and reliable
source OF information, eastern purchasers
of our dried fruits and other products are
necessarily in the dark as to the supply.
and as self.prosection are forced to
offer lower prices than they otherwise
would, fearing an over production or that
an unexpected yield may be developed
from an unknown or unlocked. for source.
Buyers cannot be blamed for this course !:
it is simply reasonable business precau-
ton, and one which would not be either
necessary or employed if reliable informa-
ton or statistics were at hand. Under
present conditions, very large proper
ton OF our products are sold on the basis
OF offers, not on fixed values, az thew
should be. All merchandise has some
certain value in the market in which it is
offered, at all times. Demand and COM
petition fix such value. A Produce
Exchange, conducted as a purely
commercial enterprise, upon pure
and strict business principles, upon a
basis calculated to inspire confidence on
the part of both buyer and seller, would
develop into an institution second to
none in Importance and beneficial re-
suits.
Grain, fruits and produce generally,
should be sold by sample and grade.
Reliable crop reports should be compiled
and published regularly and daily re-
liable market report issued showing
actual values of all staple products, the
figures published to be based upon &C.
tual daily transactions. Types showing
the established grades of different pro-
ducts should be put up and distributed
to those interested. With these and the
printed market report holders of produce
would soon be able to form an intelligent
idea of the market value of their goods.
Confidence on the part of producers
once established they could
and would send samples OF
their produce to some reliable com.
mission merchant or broker here
with the view Of having it offered con
change" and sold at fixed price, or to
the best bidder for it. BUYERS would
soon understand that they could 90 con
change" and see samples of all the
products of the country ready and offered
for sale, from day to day.
A Produce Exchange, established and
conducted on like plans and principles,
would soon be recognized as the center
OF commercial transactions, az the source
OF reliable data, and would serve to con-
centrate oil the business of large Sec
ton at one central point. Its many ad-
vantages would be shared and felt by
every business man and producer within
Southern California. Its influence, in a
commercial way, would be felt and
recognized in all markets in which our
products are handled. The promoters of
it should be encouraged by every busi-
ness man in this section, whether d.
rectly interested or not. Our whole COM
mercial systems in this section are in a
state of confusion. There are no rules
governing barter and sale. In fact.
there do not exist even established
customs; everything is done in go-as-
style. This is reflection on
US as business men, but that it is fact
will not be denied. 1t is natural re-
suit OF lack Of organization and associa.
ton. Our commercial importance and
demand fixed rules and prin-
ciples upon which to operate. All bust
ness men realize the Importance of it.
We want an organization Of business
men Tor business purposes and ends,
pure and simple. Eliminate all adver-
Using and emigration schemes; encour-
age them, if wise to do so, but don't mix
them with our purely commercial mat
ters. We not only want an organization
Of this nature, out our individual and
interests demand it. As
business men, and as q commercial
center, We can't afford to be without it.
AS direct result OF each business firm
acting for itself. our commercial import
ance and the value of our products are
lar lower in the business world than