El Paso herald. (El Paso, Tex.) 1901-1931, 1911-12-06

fee and to remit weekly the cOllec-
lions of this tax to the bankers com
mittee, the money to go toward pay
ing the interest and the princlpal OF
the bonds 1t was further agreed Dy
the Brazilian government that the u
ture supply of coffee should be torctoIy
limited by prohibiting the planting OF
any more cOf1ee trees, except 70 take
the place of trees actually dead In
spectOrs were sent through all the COZ
fee producing region, q strip OF terri
tory about $50 miles wide and 700 miles
long, and all new trees planted since
the contamination Of the val0rization
scheme has been destroyed. 1t ought
to be said in this connection that the
short crop of the current year is due
to frost. but as a frost killed crop is
nearly always followed by huge crop
such as that Of 19G6-and as trees
planted before valorizatiOn are Just
beginning to come into bearing, the
shortage cannot be expected to con-
tinue. The valOrizatiOn scheme win
continue in force until 1913
Proposal to Destroy Surplus.
It was seriously proposed. IN Brazil
to levy an export tax OF 10 percent
on all coffee shipped out Of the coun-
try, the tax to be payable in kind
that is that One-tenth of the coffee
be destroyed by sinking it in the sea
or by burning It. This part Of the
scheme did not go into effect
How perfectly the valorization
the fact that in New YOrk-the prin-
cipal coffee port OF the wOrld-the
price Of coffee has been gradually put
surely rising day by day. week by
net increase on the principal grades
is now considerably more than 100
percent
The burden of this increase falls
more heavily on the American people
than on any others, because of the
fact that the Americans consume more
coffee, both absolutely and in proper
tiOn to population, than do any others.
The average American consumes from
II to - pounds Of coffee each year, as
compared TO the record Of only one
Great Britain, Canada and Australia,
all other countries coming in between
these extremes
The United States imports about
1000, O00, 900 pounds Of coffee a year.
If the increased price to the con-
sumer were Only cents pound the
total cost would be $40 Goo 900 a year
If, as is estimated. the actual average
increase Of the retail price is cents,
then it costs so, 600, 600 a year. If the
total increase Of s cents be extended
on to the ultimate consumer it means
an annual increased expense Of $50
100000, or nearly 81 for every man.
woman and child IN the country
Felt In All Grades.
This increase OF cents applies to
the No. grade which Is the basis Tor
most package coffees and is the staple
Of the trade. The increase has not
been so great on the higher grades
Of coffee, but has made itself felt in
every grade from I to TO- 1 being the
highest and 10 the lowest
In defence Of the ValOriZatiOn
scheme it Is asserted that there was
no other possible way to save the Bra
LILLIAN coffee industry, that the big
crop Of 1895 would have wrecked the
market; that the planters would have
been bankrupted the plantations
abandoned and that Brazil would have
been eliminated as coffee producing |
country. The effect Of this would have I
been 10 make the present price Of COT
fee. on account Of the reduced prOduc-
tiOn, even higher than il is now under I
valOrization.
OF coffee experts that coffee may be /
prOfitably produced IN Brazil for
cents pound and that the big crop
would not have permanently wrecked |
the industry.
Grocers and other retailers OF COT /
Zee IN this country are engaged in |
forming q national association to com (
bat the coffee combine. and there is /
considerable agitation in the trade for I
some governmental action. It is de- I
clared that grOcers are bound by fixed ]
prices Of package gOOds-cereals and .
so fOrth-tO sell at a negligible profit /
sugar, and that nov coffee is being /
sold practically at cost
Inc department or justice, in re-
Spouse to a resolution Of congress. I
by representative George I
W. Norris of Nebraska is fnvestigat- (
ing the matter with specific reference /
to the participation in the scheme of J
any American citizens
What is to be done about it nobody 4
can say. Even II the most rabid trust I
buster were in control Of the govern
ment he would be unable to put Brazil 4
in jail In it IS a unique factor in \
the great problem Of modern com
merce.
Tomorrow-"The American Civic
Association"