The Minneapolis journal., 1902-04-26
ONE FooD ARTICLE DECLINES

With food prices ranging high and pub
lie attention largely centered In the ad
vances that have been reported from day
to day, it is Interesting to note that there
is one important food item moving cons
trary to the general trend. The greatest
decline known for years is now on In the
coffee market.
In New York, where the importing bust
ness is centered. and where coffee is
traded in for future delivery in much the
same manner as wheat in the Minneapo-
lis Chamber of Commerce, a great bear
movement has occurred and the trade Is
facing crisis.
Fluctuations in raw coffee on the New
York coffee exchange are, by fye-point
variations. equal to 61sc ON bag of 130
pounds. Since Jan. values have shrunk
by $500 a bag. In the case of the De-
cember option, the low grade used as a
basis is now down to 5Ac, decline of
2asc since the first of the year. 1t will be
seen that this would be about equivalent
to decline from roc to 48c for wheat.
Three Of the largest New York holders
OF spot coffee are put down to lose about
$4,000, 900 as result of the heavy shrink
age.
Several years ago great fight began
between the American Sugar Refining
company and the Arbuckle interests,
which marked an epoch in the mercantile
trade. The Arbuckles, who had been cof-
fee men only, built a sugar refinery and
began competing with the trust: The
sugar trust, by way of retaliation, EN-
barked in the coffee business on an enor-
NOUS scale, and q bitter fight followed.
This fight, although free from the extreme
aggressiveness that marked it's early
been the suspicion that the sugar trust
was bearing the coffee market for effect
upon the Arbuckles, who are prominent
in the coffee trade, and might be supposed
to have a large stock Of coffee on which
to charge off losses for depreciation.
1t is doubtful whether the sugar trust
is responsible for the decline, and If the
sugar men have been instrumental in
forcing 1t, conditions alone have made it
possible.
Stocks of coffee are at5present 100000
bags larger than the average worlds Wis
ible supply at this time. In times of or
binary production 100000 bags has been
an average crop: Last year the yield was,
approximately r15,50O,OO0, bags, while the
indications point to yield this year OF
20,000,000 bags, which, If realized, would
break all previous records by far. 1t is
this expectation9gof phenomenal yield
coffee crop Of the world, as expected, TO-
gether with the present stocks, and the
decline in three months represents q
sbrinkage of 100000, 900. 7tsa
Unlike other products of the soil, lower
prices for coffee do not broaden the mar.
ket or increase consumption except &inae
moderate way. Nor does the price range
work automatically to increase or. de-
crease production.
Corn has sold very high this year, ant
the acreage sown on the new. crop viii
probably be the largest ever known. Lee
wheat fall to an extremely low point ant
production falls off. But coffee trees
come into bearing after about four years
and yield annually for twelve or fifteer
years. -, -
The householder need not expect an!
sweeping reduction in the retail price o
coffee, at least for time. The decline i:
largely speculative and based on pros
poets. But should the anticipated heav.
yield be realized, then by another yea
coffee at retail ought to be much cheaper