The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-01-17

collateral. The bonds were handled
in this country by J. P. Morgan &
Co. According to q statement pub
lished Nov. IS last, by the Interstate
Grocer of St. Louis, over the signature
OF Mr.. Sielcken. he and Arbuckle
Brothers. the Brooklyn coffee grinders
had taken over the valorization coffee.
I'VE are fully secured he said, ION
the advances we have made. MY firm
(Crossman &Sielcken) will gladly
take over all the coffee at the advance
made ON It,"
And now, when the "valorization"
plan is just nicely arranged, comes the
strong cry before the ways and means
committee of congress for the imposi-
ton of an import duty on coffee of 3
cents pound. 1t is regarded as deeply
significant that no protest is heard
from Brazil against this proposed tax.
Under ordinary circumstances coun-
tries are quick to protest when the
American government proceeds to lay
tax on their imports. But in the case
of Brazil there has been no protest.
The reason according to Information is
as follows:
The visible supply of Brazilian cof-
fee is now, approximately, as follows:
Bags
At Santos. Brazil. .. .. 100000
At Rio, Brazil. .. .. .. 100000
In European warehouses. .5.OOO.OOO
In U. s. warehouses. :. :. ID, 200 goo
Afloat, enroute here. =. .. .. 100000
Total. :. :. =. :. >. 49,. IL. 100000
A bag of coffee averages 1872
pounds. Therefore the duty on bag
at 5 cents a pound, would average
$500, and the total duty on the II, 7OO,-
GOO bags would be about $77,2OO,OOO.
OF the coffee in the warehouses in
this country and afloat consigned to
America, 100000 bags belong to the
Brazilian Government, but are held by
the spectators as collateral for the
loans growing out of the valorization
plan Of Sac Paulo now guaranteen by
Brazil OF the 100000 bags of COT
fee stored abroad in the warehouses at
Havre, Bremen, Hamburg and else
where, practically all Is "valorization"
stock. held by the spectators, who are
guaranteed five per cent. interest on
their risk. A considerable portion of
the coffee stored in Brazil is also wal
orized."
Could Be Rushed Here.
All Of this immense stock Of coffee
could be shipped to the United States
and put in the warehouses here on
thirty days notice of a flve-cent tariff
impost. That 1t would be shipped is
the positive statement of leading cof-
fee brokers here, who unite in saying
that In this quick and easy way sup
ply of Brazilian coffee sufficient to
last the American consumers nearly
two years would be rushed here on the
very eve of the imposition of the tax.
The coffee consumption in the United
States in the year ending June 80,
1908, was 7,043,0O0 bags.
The result would be that the Unit,
ed States would lose at least 81, 00O,-
900 in coffee duties. Nor is there any
doubt, according to leading coffee
brokers, that coffee would advance
i've cents pound as soon as the i've
cent duty was imposed thereon. Thus
the American consumers would put
up the $77,0O0.000 which the Ameri-
can Government was losing-and the
whole vast sum would fall into the
hands of the coffee SPECTATORS
The fact that the ''valorized" coffee
is held as collateral for money adj
vanced to the Brazilian Government
would not interfere with its quick
shipment here, it is pointed out, mas
much as quick sales at an advanced
price are the very things the valorizers
are after. BY that method only could
the whole gigantic deal be rapidly
iquidated.
What the valorizers want" said
big coffee broken, lis a good cash
price for their product and an Ameri-
can import duty to boost the price is
the very thing they want. The Bra
zilians are not worrying as to whether
Uncle Sam gets the tariff he thinks he
is going to get. In most cases Uncle
Sam collects his tariff from the con-
sumers. This time he will not get it
from anybody"
Mr.. G. Arndt, of No. So Wall street,
was unable to say yesterday what the
penalty would be or how the deal
could be stopped il the holders Of the
coffee as collateral were to simply
ship it, the Brazilian Government &C
Quiescing. He admitted that the terms
of the alleged contract under which
the bonds were issued would not be
violently restrictive.
j. g. L. LLOYD. OF Arhuckla &. Co