Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-06-12
ITO MEET THE DEFICIT
Small Duty on Coffee Pro-
posed in New York.
PLAN OF Mr.. BLAINE
RECIPROCAL RELATIONS WITH
SOUTHERN COUNTRIES.
This Country the Greatest Consumer
Of the Beverage Of Any in
tho World.
BY WILLIAM e. CURTIS.

BY WILLIAM e. CURTIS.
Special Correspondence Of The Star and the Chicago
Record Herald.
NEW YORK. June 1et 1905.
AS wrote you the other day. there is a
strong sentiment on the coffee, exchange
and elsewhere among business men Of New
York in favor OF small duty on coffee to
replenish the treasury and meet the deficit.
ours Is the only country of any account
that admits coffee Free said one of the
largest importers the other day, land 1t is
ridiculous that we should admit all Of the
products Of the Latin-American countries
free. while they impose export duties on
these same products and import duties on
everything they get from the United States
"A duty Of cents a pound on coffee would
produce an enormous revenue. and would
not make the slightest difference in our
trade. 1t is my personal opinoon that the
consumers would never know a duty had
would oppose it and the demogogues would
revive the old cry Of free breakfast
table, which was SO influential in taking
the duty OF coffee years ago. but you will
remember that the moment we took that
duty of Brazil clapped on an export duty
which today Ia IL per cent of the value Of
every bag Of coffee we buy from that coun-
try, and that amounts to many millions Of
dollars year.
Mr.. Blaine's reciprocity plan was SEN
sible and practicable, and would have been
of great advantage to this country In many
ways IL 1t had been adopted. He proposed
to put duties on coffee. sugar. rubber. hides
and other raw materials from the other
American republics. and then remove them
whenever those republics were willing to do
the square thing and take the taxes of our
them ad0nf
that plan. and / would be in favor of a j.
cent duty on coffee to raise the revenue we
need, and then reduce or remove 1t the
coffee countries are willing to reciprocate."
Suffer From Low Prices.
The situation of the coffee growers of
Brazil and other countries Of Central and
South America is very much like that Of
the cotton planters Of the United States.
They are suffering from overproducton
and low prices. A congress of delegates
from the various Latin-American countries
met in New York a couple of years ago to
consider the subject, but could not do any
thing except report to their governments
facts that were already known. Brazil Is
responsible for the excessive supply, and
after discussing various measures that gov
eminent decided to restrict further planting
by placing tax of $50 an acre upon all new
coffee orchards. That has effectually stop
ped the planting Of trees. 1t will take a
of that law. but the volume Of the crop has
already been affected by the neglect to take
care of old trees and other reasons.
The high prices of coffee which prevailed
In 1887 were tremendous stimulus to plant
new orchards. and the planters of Brazil
extended their acreage very largely. High
prices kept up until 1895, when overproduc-
ton brought them down, and they have
continued to fall until the minimum price
of history was reached during the season of
1904. when coffee sold for 3.55 cents a
pound on the docks of New York In 1891
1t sold as high as 1885 cents a pound and
1t Is now worth nearly s cents, which gives
the planters Of Brazil and other countries
great satisfaction.
That is the wholesale price of what is
known as No. Rio, the standard on which
all operations In this country are based
There are nine different grades of coffee
higher and lower, of superior and inferior
quality, but when you see quotation on
the New York market it means No. IsRio
Even now some of the fancy grades are
selling for Is and 16 cents a pound The
production of that quality is limited The
demand Is regular and the price is not
much affected by the variations in the
lower grades.
The following statement will show the
highest price and lowest prices reached by
No. Rio during the years named: