Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1912-06-14

tnat hltle colIee perry that cn6eB
millions Of Americans at their meals
daily and keeps other millions from
sleep at night, is responsible for a
disagreement in President Taft's cab
met, an antitrust suit, fears of inter-
national complications with Brazil and
a valorization scheme that has taken
millions Of dollars from the people Of
the United States. Since the institu-
ton Of the governments civil anti
trust suit against the coffee trust"
last week there have been numerous
rumors Of possible bitches in carry
ing 1t through the court, and now
these rumors are confirmed by the
announcement that Secretary Of Sta.e
Knox has recommended to President
Taft that the matter be dropped be-
cause Of possible complications with
Brazil. Secretary Knox assumes that
the coffee valorization scheme should
be settled by diplomacy and not in
a court of the United States. as it
concerns foreign taste.
Almost all Americans are deeply
interested in this coffee suit. The
valOrization scheme which the United
States government is attempting to
break up has cost this country too
much money to be permitted to con-
tinue unmOlested. The United States
consumes more coffee than any other
country and so per cent as much as
the people of all Europe It's position
as the greatest coffee consumer, it
seems, should give this country the
power to dictate prices. But instead
the United States is paying for its
coffee practically the prices set by
the Brazilian, American and Euro
pean valOrizationists. This is accom-.
plished through the valorization
scheme created by the state of San
PauIo of Brazil and leading bankers,
by which Brazil's exports of coffee
and the quantities of that country's
surplus placed on the markets are
regulated. This scheme was financed
through loan of 500 900, 900 arra,g-
ed with American and European
bankers. AS Brazil is the worlds
leading grower Of coffee, producing
$3.50, OOO,OOO pounds Of the worlds
supply of S,OOO,OOO,OOO pounds in
1909, the valorizationists, against a
number Of whom the United States
government has brought suit, are vir-
tually in control Of the worlds coffee
markets
Originally, the valorization scheme
was started to save the coffee grow
ers of Ssn Paulo from bankruptcy,
their production having increased to
a point far in excess Of consumptive
requirements, resulting in very low
prices. The cost of the S75 100000
pounds of coffee the United States
imports en- an average each year was
only 1-2 cnets a pound in 1903, but
since the creation Of the valorization
scheme the cost advanced to s cents
in 1910, 10 cents in 1911 and to ap-
proximately 19 cents in the curuemt
fiscal year. Advances to consumers
have been relatively greater. And
yet the valorizationists are holding
millions and millions Of bags of cof-
fee out of the market. The United
States government is attempting to
force the sale of $4,000 bags stored
in New York as a part Of the scheme
to bolster the market There has
been little decrease in Brazilian cof-
fee production, American consumption
has declined as a result of the high
prices, and the valorizationiSts prob
ably do not know when or how their
scheme will end.
The South occupies the same posi-
ton in the worlds cotton markets as
does Brazil In the coffee markets.
When the South found last year that
it had produced an enormous crop,
some Of the planters sought to es-
tabhsh a cotton valorization scheme,
but the plan was not countenanced
by the United States government. In
stead, the cotton growers sold their
crop at the prices the markets Offer
ed and the government and others
urged diversificatiou Of. crops in the
South, not unnatural control Of the
market. The United States is fair
to the world in marketing its cotton
and why should Brazil not be fair
in disposing Of its coffee?
The United States government, it
seems, can we'll afford to risk COM
ni;nnainrnr .i4h BRAZIL In &c affamrA