Daily press. [volume] (Newport News, Va.) 1896-current, 1909-01-10

| tically none OF the import duty which
it is planning to levy.
On the contrary the import duty. or
its equivalent. will flow into the hands
of the syndicate. and the State Of Sac
Paulo in Brazil will have carried Its
famous 'valorization" coup to a sue
cessful conclusion at the entire ex-
pense Of the hoodwinked American
coffee consumers.
Inside History Of the Scheme.
The inside history Of the whole
scheme-one Of the biggest and clev-
crest ever put up. it is said IN Wall
Streets in brief as follows:
Brazil produces nearly so per cent.
of the coffee drunk in this country.
Practically all Of the Brazilian coffee
used here is grown in the State OF
San Paulo. There was an enormous
crop in Sac Pau'o in 1901. It demon
allied trade. Early in 1906 there
were indications that Sac Pauio would
again be glutted and prices reduced
to ruinoIs level. The State CT Sac
Paulo decided to "valorize"-in ehect.
to equalize the market prices. by buy
ing and storing the surplus crop. The
idea back of the scheme vas that
lean years would follow fat ones AID
that tn stored b"rr'es could then be
fed into the worlds NAV judiciouSly
and prices maintained.
But nature disposed otherwise
Normal crops followed the abnormal
one. and the stored coffee could not
command the price necessary to mest
the debt which Sac Paulo had con-
tracted in order to carry the surplus
Shrinkage and storage charges ard
other expenses began to cat In meas
urably and troTb'e was ahead. The
BRAZILIAN Government thereupon came
to the aid of Sac Panic and agreed TO
assume that States "vaiorization
debt and also to feat the whole
scheme on its own account.
Herman Sieicktn n. the millionaire
coffee importer. of New York. Is cred
ted with having originated the Sac
Paulo valorizating scheme. and 1t IS
said he was largely instrumental in
inducing the Brazilian National Gov
eminent to assume the plan. Accord.
insly. the original indet' edness oil
Sac Paulo. AGAINST which the exec IS
coffee had been put up rs collateral
was refunded through the Roths'
chiIds' Schroedt RS and other foreign
bankers
! Bonds Issued by Brazil.
! Under the enlarged plan the Brazil!
ian Government issued $75.000.000 In
aonds pledging $40 Paulo coffee as
collateral The bonds were handle
in This country hy !. p. Morgan Co
) According 10 statement published
! in Nov Is last nv the Interstate
Grocer. Of 81 louis. over the sigma
rure Of Mr.. Sleicken. he and ArbucSt
Brothers. The Broc kiyn coffee grind
crs. had taken over the yalorizstion
coff"cs.
We are FULLY secured he said
on tire advances We have made. VI!
firm Gresham & Sielckeu) will glad
" tab. over ali h" coffee al the ad
vance male On IL.
And now. when the "alorizatiSn
plan il ju,t nicely arranged. comes
To strong Cr' h".ore the Ways an,
Means Commit" az Congress FOL
b" imposition az IN import duty or
E H." 81 Nv" cents pound. u Is ~
garGed a. dccpiv significant that NJ
pro'Cs: y heard from Brazil sgains
his proposed 'aV Gadcr ordinary
circumstances countries are quick Il
protest whom ~ American Govern
TCTi proceeds '" lay tax on then
imports I'u' ;" The case Of Brszi
Their" has been 70 T=otes' The rea
en-. acs riding % information giver
20 The World i - follows:
The visible sgrply 81 Brazilian col
f." Is now. approximately. as follows
Bays.
u Santos RrazI ..... $3.50 90
T. Rio. Rrazii ....... goo. 90
n Er5os- an varchouses s.se0. 30
n I warehouses .... 5000. 90
Aaos cnrou,r here. 10e..c'
T,;aI ..... ..... ii.7co &c
A bag Of cogcc averages u.