The Bridgeport evening farmer., 1911-02-09
E.. Fl. DILLON & co.

lated stocks will be further lessened. Some traders anticipate that in 1911 the consumption of coffee will be at least 3,o00.ooo bags more than the stocks being called upon to make good the deficit.
 As the United States is the worlds largest consumer of coffee, this reput- ed shortage of Brazil's crop is of more 1nan Wors eranaFy enps vbe s%1p of aa gae feee on January that is. coffee in warehouse ready for delivery to roast ers-was 14,165,000 bags. This seems enormous, especially as 1t ap- pears to confirm the declarations re- gently made that the worlds ware the United States there are stored D. 72S,o00 bags and in Europe three times that amount. Yet the aggregate on January 1 was in reality 2504,000 bags less than at the beginning of last year, and if, as is expected. the Bra z1lian coffee crop runs short of re- quirements this year, the surplus is likely to be drawn down to the neigh borhood of 100000 bags before the close of 1911.
 Not only this; of the surplus of 14.- 165,0o0 bags now in warehouse near ly one-half, or 6.2oo,Ooo, are held by the Brazilian government against it's valorization loan of five years ago, and cannot be touched except by per- mission of the trustees of the loan. These trustees hay given the word that 100000 bags can be sold this year-no more-so that. for all prac- t1cal purposes, the other 5,000,000 bags are as readily available for con- sumption as though they were at the bottom of the sea.
 In Control of the Market.
 The interests concerned with the valoriZation loan are in virtual con- trol of the coffeee market, and it is because of this that they are accused of having cornered the market.
 While a corner such as the general public recognizes does not actually exist. there is reason for saying that those in charge of the valorized cof- fee are responsible for the ruling high more than small part of it to be consumed in the current year. Were they to release enough to bring SUD- ply even with demand, there is little question that prices would eventually clared it to be their purpose to re- deficiency of,roughly, 1,S00, ,oo0 bags is in sight. This will have to be drawn from the visible supply of coffee ton loan, and thus the worlds sur plus supplies, exclusive of the valor1z- ed coffee, will be brought down to ap- 6,000.000 bags, sufficient to supply the world, in event of a. crop failure, for only half a year. It is plain to see that the control of the market rests with those in charge of the valorized coffee, and by those who have charged manipulation it is contended that the reason why only i 100000 bags are to be released this year is that small supplies are desir- ed, so that high prices can be exact
 Valorization has been a controlling influence of the coffee market for a of years, but only in the pres ent situation has its absolute domin- ance been fully realized. It is a blessing or curse, as you will. The Brazilian government and those who instituted it intended that it should be a blessing, and undoubtedly it has been, to some, but it threw the coffee trade into a furore a few years ago, and now is causing no end of trou. Brazilian crops of seven years ago, when prices were sent down violently in the New York market to 1-2 cents pound, actually below cost of production.
 Sac Paulo Feared Ruin.
 Sac Paulo. the principal state of Brazil, thought that it's planters faced
  immer1 ely imposed a prohibttive tax to prevent the setting out of new plants. But this had no effect on crops, as the coffee plant does not begin to produce marketable berries for five years, and does not reach full Bumper crops followed one another, and in 1905 the state became genuine Iy alarmed when the harvest returned 1 100000 bags, which was far ahead of the usual crop, and which furnish ed surplus over the entire worlds 100000 bags. It was then that, in looking about for a remedy which would restore prices to their old lev sl, the valorization plan was adopted.
 At the outset it did not appear so foolhardy as it eventually turned out to be. Three States of Brazil-Sao | Paulo, Rio, and Minas-besides inn posing a large surtax on imports, be- gan buying with borrowed money all l coffee. They thought l that only one year would produce a | freak" crop; and that in 1906 the came along with production of 19.- l 5 554, 900 bags. In two years Sac Paul ! 10 alone had purchased from it's plan ! ters fully S,000,00O bags, at an aver ! age cost of $10 a bag, which was more l han double the ruling market price. l
 
 been secured at home, in the United | States, Germany, and elsewhere, at | ] high cost.
 Finally the burden became over heavy; instead of getting rid of coffee, l he state was steadily accommodating l t. Planters came to look upon the | state as their fairy godmother, who l was ready to pay more for their pro- 1uct than they could have obtained | n the worlds markets even in pros porous times.
 But this situation could not last l forever, and finally the Federal gov was called upon, the upshot | being an abandonment of further purchases and a $75,000,00O interna- ional loan, to redeem the original | ones. The loan was issued at the | dose of 1908, with the accumulated | coffee for its collateral. Altogether, | he purchases of Sac Paulo had am- 'unted to 10,S6S,000 bags, equal to all entire years average crop.
 By the close of 1908, when the oan was issued, 3,7S1.O00 bags had l been sold. leaving 7,087,000 bags. The 1909 and 1910 coffee crops have been normal. and valorized coffee has thus been brought down to 6,310,000 bags | 1t the present time. Had the last two ,ropS repeated the performance of he earlier ones, and turned out bum Der yields, the outcome would have | been serious. When such develop nent was feared, early in 1909, Bra il thought earnestly of commanding