The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-03-25
WHAT DOES THE COFFEE
DUTY IN THE PAYNE
BILL MEAN7

BILL MEAN1
The whole country wants to know
what will be the effect if the Payne
bill shall pass with the complicated and
uncertain countervailing duty on coffee
which is provided in the present draft.
t is estimated all the way from
fraction of cent to a Accent tax on
the coffee which the whole country
uses every morning. There Is only
vague information about tie present
export duties and other charges impos-
ed by the Brazilian provinces. 1t IS
uncertain whether the tax imposed by
the great coffee state of Sac Paulo
would be something like 21z cents or
4 cents. 1t seems to depend on the con-
struction which the customs officials
should place on the eountervailing pro-
viso of the Payne measure.
AS most of the country's daily eof
fee comes from Sac Paulo, this Is a
most important question 1t looms
larger when it is recalled that the cost
OF coffee to the consumer Is about six
times what the raiser of it, on the
brazilian plantation, gets. To in
crease the initial cost by any such
figure would assure the addition OF
vastly more than this figure to the con
sImer's cost.
1t is useless to assume at this stage
of the matter that the imposition OF
the countervailing tax would bring the
Brazilians to terms, and induce them
TO take off the export tax. 1t would
probably have no such effect. Their
coffee business is one Of the worlds
natural monopolies. The coffee isn't
raised anywhere else, and It takes years
20 develop a coffee plantation, under
the most favorable circumstances, to
The point of producing berries. Money
enough has been squandered in the eff
fort 10 develop coffee TO a profitable
basis in Mexico and Central America to
serve at least as a handsome object
lesson in the futility of such hopes.
The fact is that Brazil stands in the
same relation to the worlds coffee sup
ply that the United States cotton belt
does to the worlds cotton supply.
1t is not the purpose of the tariff to
punish other countries for refusing
such terms to us as we would like.
Rather, the purpose OF the tariff is to
protect American industries which need
protection, and to afford opportunity to
make trade dickers with other nations.
Brazil ought TO become one OF the great
consuming markets for American goods.
1t never viii become that if this coun-
try is 10 seek out means TO punish
Brazil.
Even If the Brazilians were disposed
TO do it, they could not Immediately
make concessions TO the United States
in this matter Of their export duty, be
cause the business Of financing the
valorization plan is a big and compli-
Gated affair, tied up for a term Of years
with n rigid series of regulations which
the financial interests would not per
init 10 be overturned
To impose a heavy duty on Brazilian
coffee, under all the circumstances
would be TO cut of the national nose in
order to spite the national countenance.
II would be an invitation to the Brazil
ians 10 take elsewhere the trade NC
want, and they would accept the invi-
tstion with the greatest promptness.
Ex-Secretary Root, according to com
mon report, is greatly concerned about
he tendencies in this bill, and especial
is in this coffee provision, 10 undo the
work he has carried on from the State
department, Of promoting better trade
relations among the countries Of the
three Americas IT j. no wonder that
he Is concerned. 1t is no wonder il
the present administration of the State
Department Is worried about the pos
sibility Of uHdoing much that has II
recent years been accomplished toward
general improvement Of trade condi-
tions abroad.
But down underneath all these con
siderations lies that Of the American
consumer. There stands the general
policy of keeping the necessaries of life
subject to the lowest possible dues, in
order that the people may live as well
as possible for the least cost possible
The whole social fabric of the country
is based on that policy.
And, with that traditional policy il