Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1912-03-07
SPORT ING.

ting into coffee. Every one down in
that part Of Brazil was coffee crazy
and did not become sane until sud
denly IL was discovered at the end of
one season that I5razil had raised a
crop OF coffee 50 much in excess of the
world requirements that it WIS Il
serious problem what to do with it.
Santos, the great coffee port was
glutted with coffee. Bremen, Amster-
dam. London. HarVe and NeW York
were loaded with all they could carry,
vet the plantations still had immense
stores of the stun. WHAT made The
situation worse was the fact that the
crop of the next season threatened 10
he larger than the one that broke all
previous records. Naturally with
such an oterproductfon, present and
prospective. the price of coffee per
bag on The coffee exchanges of the
world declined but the retaa price aid
not decline SO that the English house
wife. the German housewife er the
American housewife could notice it
particularly.
To save the coffee market from ut
ter Generalization and many planters
fgem ruin and thousands and theus-
ands of the inhabitants from want the
Government of Sac Paulo took over
the whole available supply of coffee,
warehOused it and issued negotiable
paper to the planters So far THE pro-
eeedines was excellent. but It WAS not
long before things began 70 happen
that were diseraccfui. To prevent the
growing of another bumper crop many
coffee plantations we're destroyed.
I Brazil was to profit immensely. but ali
the coffee drinkers Of the world were
/ 10 be penalized, and heavily penaHzed
at that, for the coffee sac Paalo's
people ruthlessiy destroyed.
! \ coffee trust was formed. The Bra
lillian Government was the principal
member, but various great banking
concerns. foreign and domestic. in
Guiding New Yorks most famous
house We're III it. The chief function
: of the trust was 10 absolutely control
! the coffee markets Of the world and
/ dole out the supplies from Santos so
! that prices would increase steadily. 1t
would have been d matter OF only
passing notice if the price had been
stiffened 25 or even 50 per cent. and
! not forced beyond, but hungry wolf
! Is a calm and modest creature at q
feast in comparison with gentlemen
who have an opportunity TO make
money quickly by cornering some
thing Coffee was sent kiting. From
down around or 6 cents a pound. it
was raced up to {, to s, to 8, to 10, TO
Il. to u. to 13. to IA. and way beyond.
A new king popped up-Herman Siel-
cken. He became the dominant figure
on the exchanges Of the world. Right
~ or wrongly. he is credited with be-
ing the representative of the trust. the
man to put the screws to the coffee
buyers, II is said too, he was the or
iginator of the scheme for the corner
ing or tying up of the crop in the way
it is to-day.
Coffee importers, merchants and
others had lot of worry over the
sudden and tremendous advance in
the price Of coffee. Some of them We're
hit badly, having contracts 70 fil that
meant decided losses A violent mar
ket upsets trade. The coffee market
was violent. Buyers did not know
how long the soaring of prices would
last. The advance was artificial uu
natural, unwarranted, and collapse
might come any day. But it did not.
Brazil kept restricting the planting of
coffee and kept a close watch on the
amount of coffee that went out to the
markets of the world AS a consc-
quenee the price kept climbing.
The importers, merchants and 9TH
ers stood the high prices So long as
they could, which was not long, and
then they shifted the burden to the
81
ing it ever since. Millions and mill
lions OF dollars. have been wrung from
the people, especially the Ameri-
can people, for they are the greatest
coffee drinkers in the world, to salts
fy the demands of the bankers IN the
Coffee Trust and TO compensate the
planters, whose crops are destroyed or
who guarantee to let their crops rot.
The bankers, the Government otii
Gals Of Sac Paulo. the Coffee King
and the coffee planters have had a
long period of oscillation, glory and
profit in the crueifying Of the coffee
drinking world hut now they are
somewhat troubled. Some of the peo-
pie most concerned think Brazil is
likely to pay q big price for its adj
venture, for they are discovering that
in sending the price of coffee sky high
the bankers and the Brazilians forced
mary coffee lovers to quit coffee drink. |
ing
There has been Il marked decrease
in coffee consumption in America. At |
the same time there has been mark |
ed increase IN the consumption of tea. |
cocoa and the cereal substitute for
coffee. TIE decrease in the cunsump-
ton Of coffee is estimated at from !
TO Is per cent. 1t seems absurd, bat
the fact is that Brazil is teaching tho
world to quit coffee drinking Not
only that, but Brazil has done more
in the last two years to make coffee