The San Francisco call., 1908-12-22
Statistical Position of the Market and
the Future Outlook

The New York circular of Henry Nordlingei
''The receipts at Santos during November
were very heavy. but since the beginning of this
month sharp falling of has been encountered.
Our estimate Of 1920, 600 bags for Rio and
Santos combined remains unchanged.
The deliveries from port stocks In Europe
and the United States during November this
year reached record breaking figures, amounting
10 a little 100000 bags. Nevertheless. the
total deliveries since the first of July are still
100000 bags behind those of last year. which
deficiency, however, may easily be made up
and it is fair TO expect that the worlds deliy-
cries for the current crop year will be fully
as large, II not larger, than they were last
year.
The visible supply statement made up by
our exchange of the 1st inst shows de-
crease of about 60 900 bags. while if sbould
have shown an increase of about 100, 900 bags
The oft repeated Gl5,000.000 sterling loan
Of the state Of Sac Paulo will shortly be Of
fered for publis subscription with the guarantee
of the federal government, which was recently
authorized by the legislative bodies of Brazil.
in this wise financed for series of years. There
is, therefore, no danger of its being thrown
the other hand we understand that the Sac
Paulo government IS bound by agreement with
the underwriters to this loan not to purchase
any more coffee, and that the coffee given as
collateral for this bond issue is to be liuui-
dated in the course Of the next 10 years. 1t is
TO be expected that favorable opportunities will
be availed Of whenever they pres n s-.nselyes
these enormous holdings but
artificial means to support advance the mar.
ket In the interim VIII probably be dispensed
with.
TRADE CONDITIONS SOUND
ut IS our opinion that the article will be
allowed to find its natural price level on the
basis Of supply and demand. We consider the
trade conditions at the present time to be ex-
ceptionally sound despite the liberal pur-
chases made by Europe and the United States
during the last few months.
Under ordinary circumstances the price rul-
ing at present for desirable qualities of Santos
coffee would be considered fairly low, but the
uncertainty prevailing with regard to the
eventual liquidation of the government holdings
prevents many dealers from stocking I'D. Con
sumption, however. is going on the same as be-
fore, and we believe this years entire crop
viii be used up before the next crop is ready for
shipment.
present indications are that the next crop
will be several million bags in excess of the
requirements for consumption. The Centre do
Commercio do Cafe Of Rio, which has always
been remarkably correct in its .orecasts esff-
mates the growing Rio crop at 4,000,0 600 to
4, 500. 900 bags.
mild conees. Influenced by the sagging tend
ency of Brazils, were neglected during the
usually active autumn months, and we have TO
record general reduction of values due to this
cause and In part also due to the desire of some
holders TO clean up before the arrival of the new
crop, which will make its appearance
in this country. The crop Of mild sorts will ex-
ceed that of last year by about 500 900 bags
which ought to bring their values even nearer
to the parity Of Brazfs than is now the case.''