Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1919-02-06
He Yesv Cs1ts &n
Iacresssi7 Reasons Why
The Price Has Coas Up


Have you noticed that your coffee
bill has Increased? Whether YOU have
ed 10 or 10 cents "a pound for 30 and
35-cent grades. The increases have
been recent ana the prices will prob
ably go still higher before they drop
The reasons are the United States
governments control of shipping, the
cornering OF the Brazilian supply 10y
the government Of Brazil and dis
astrous freeze in Brazil last summer
These reasons are explained below
by r. w. McCreery. manager of tn,
Western Grocer Mills.
For a number OF years past. includ-
ing the war period and up to and in
Guiding June OF 1918, the established
prices on various grades and blends
of roasted coffee, ranged from IS to
80 cents per pound. Very little of tn,
25-cent grade was used In Iowa and
the northern states as the cup merit
of this grade Is OF inferior quality. The
great bulk of the coffee used was In
the 30 and 35-cent. grades,
Soon after the United States en-
| tered the war coffee among the last
food products to come under the food
administration control, finally was
taken over Ii was taken over to
avoid speculation and To secure for
war purposes many ships then en-
gagged in the coffee trade with South
America
Brazil produces over three quarters
af tIn 4
consequently her yearly production,
whether large or small, lowers or
raises the price according to supply
and demand The coffee crop of Bra =
I'll is harvested May and June OF each
year and in ordinary times immedi-
ately begins to move to consuming
countries. Normally by the following
October or November consuming
countries would have acquired sur
plus sufficient to carry them for from
six to eight months.
The members of the food admins
tration. however. in making their call
culations and regulations prior to
June, 1918, decided they would not
permit over ninety-day supply Of
coffee to be carried in the United
States. They figured Brazil had n
large stock of green coffee on hand
which together with the growing
crop, would give an ample supply for
the worlds need with a good margin
to spare. They must also have fig
ured that to limit the stock in this
country would force Brazil to carry
the financial load and thus keep the
prices Of coffee on the low basis.
If their calculations had worked out
all might have been well but provi-
dence interviewed and Brazil was Wis
tied in June with the most severe
freeze she has ever known. Much of
the crop which was still on the trees
was badly injured. Millions Of young
trees were killed and many of the
older ones badly damaged. Brazil
claims the, damage will be felt for
from two to four years.
Brazil immediately realized this
fact, that while she had a liberal stock
on hand from 1917 and about one half
crop for 1918. the only way she could
save her income from coffee over a
period of the next two to four years
was to advance her price on what she
had. Accordingly almost over night
the price on coffee in all producing
countries advanced 10 to Is cents per
pound. This advance still holds, prob
ably wilEhold and may go higher, with
but slight chance for a decline. All
depends finally on Just how much
damage was done by the frost in June
Coffee roasters the country over
have reluctantly been forced to adj
vance their prices on well-known es-
tablished brands or go out of business.
Many of them did not have a sixty
day stock and Lut few the ninety day
supply permitted by the food admin
istration. Brazil had the coffee, still
has it, and proposes to keep it unless
she gets her price. The Brazilian gov
eminent owned 100000 bags of 1872
pounds each when the advance came.
She had bought this coffee to help her
farmers financially and to sustain the
market. She now finds herself with
a profit on her 100000 bags of about
$40. 900, 900. and she will use this profit
to sustain the market and help her
farmers who have been frozen out re-
store their plantations. Coffee is to
Brazil what wheat and corn are to
us and we cannot blame them if they
make the most of the present situa-
ton.
The coffee roasters of this country
have sold their stocks of low-cost cof-
fee to the dealer without any specu-
lative profit and the dealers have done
likewise All consumers may now eX-
pect to pay As cents per pound for
all grades which formerly, sold at 80
cents and 40 cents for all former 30
cents grades. Even with this advance
the importer and rooster as we'll as
the retail merchant will not receive
their legitimate pre-war profit. The
severe frost, together with the fact that
Brazil owned and still owns the cof-
fee surplus of the world, and the still
further fact that all consuming coun-
tries have short supplies, are the sim
pie but powerful factors which have
brought about the present advance
and may force still further advances
in the near future.
o. e. Tuttle, jeweler ana opttcian.