The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1912-03-27
OF COFFEE
MAY GO HIGHER
CORNER ON THE BRAZILIAN OUT,
PUT is GETTING IN ITS
WORK THROUGHOUT
COUNTRY.

COUNTRY.
.The price OF green coffee has been
advancing during the last few days.
said a coffee dealer today. Il be-
lieve IL is going still higher ! should
not be surprised 20 see the retail price
20 higher. before we get through with
the present upward movement. At the
same time. j DO not see how the retail
price can be advanced very much. II
anything is, 10 be left of the coffee
business. When you get coffee TO a
price that seems unreasonably high.
people quit using It.
AS nearly as l can Judge from what
our own customers tell us, the con-
sumption OF coffee in the United
States has fallen or 20 per cent from
what it was two years ago.
Coffee that in 1910 retailed for 20
cents pound now brings 80 cents a
pound. Coffee that two years ago sold
for 80 cents now brings 50 10 a. cents
end what was 3j-cent coffee two years
ago is now accent coffee. The larg-
est advance has been on the lower
end cheaper grades Of coffee. The
finest conees have gone up too. but
not so much The bulk Of the trade is
in the cheaper grades.
The retail price Of coffee has been
about The same ever since November.
since that time the wholesale price.
or rather the price OF green coffee.
has been easing of a little but not
enough 10 affect the retail price. Cof-
Zee tina; we bought for 17la cents last
November we got last week for 1854
cents. but John Arbuckle is now bid
ding 1919 cents for the same coffee.
! look 10 see IL go still higher. and j
should not be at all surprised If IT,
should go high enough to affect the
retail price.
"The scheme whereby coffee was
boosted has certainly worked admir-
ably thus far. The coffee for which
MIR. Arbuckle is now bidding 1Gik cents
was selling in August. 1910. for 9A tot
9is cents. At that time. the valoriza
ton deal between certain American
capitalists and the government Of
Brazil had been perfected. but its ef-
feet has hardly begun TO make itself
felt By the people OF the United States.
The Coffee Corner.
"When the deal was put through.
a few years before that time, coffee
was very cheap. so cheap that the price
sid not pay the planter. Among the
American capitalists who pushed the
game through was Herman Silcken,
chairman of the valorization committee |
which took charge of 100000 bags OF
coffee. which were bought at Sk cents
4 pound. There are now 100000 bags
II that coffee left Under the agree
nent with the Brazilian government. |
no more Of that coffee can be placed |
ipOn the market until 1913. That cof-
zee has been bringing Is 10 Il cents
/ pound. Pretty fair profit. is il not?
THE present high price of coffee
would probably cause the planting Of
'ast numbers of coffee trees i'm Brazil |
{ the Brazilian government would |
lllow. II. But part OF the deal was the
PROVISION that a prohibitive tax should !
Dc imposed on the planting of the cof-
ee trees So the old trees were al
owed to stand. but no new ones have
,een planted. Excellent care has been
aiken by the coffee planters Of their
rees. and / have no doubt that the
'ield per tree is much larger than #
vas before. Yet the output of coffee
las been so curtailed that the scheme
s great success.
"Thc American government, would
lot stand for any such "A combination
8 Mr.. Sllcken. Mr. Arbuc.<le and 9TH
RS have carried 20 such a startling
egree of efficiency but the American
government cannot govern Brazil. or
ictate to the brazilian government
hat sort Of laws ii must pass to
overn that country. Here is about the
lost successful corner ! ever knew
} heard Of.
There was far more profit in the
usincss of roasting and selling coffee
, fctall dealers before the price was
ooste1 than there Is now. In fact
lere is scarcely any margin in it now.
he trade would not stand such prices
2 would have To be charged in order
> keep up the old margin A coffee
1aster these days gets little besides
eing paid for his own labor. He gets
,arcely onything on his capital.
we are now getting reports from
rail that this years coffee crop.
hich viii be harvested i'm July and
ugust, IS short. These are the same
Ictics that were used when the price
as being boosted a year ago. Wheth-
r the crop is short or not, | do not
link there is any doubt that II means
.ore expensive coffee. The Brazilian
reen coffee market is very firm"