Evening journal., 1919-10-25
BY FREDERICK NJ KERRY.


NEW YORK, Oct 25.-The Brazilian
government is holding back 39O.OOOOOC
pounds Of coffee for higher prices in
the United States
Certain American coffee men are aid
ing the holdup.
Coffee at a dollar q pound Is a prob
able result
A fund Of 100000 has been turned
over by Brazilian coffee growers to the
Joint Coffee Trade Committee for
propaganda.
The plan is to send coffee prices way
up, and to make the people Of this
country like it,"
Here are the facts; as I gather them
in the "coffee district" Of Wall and
Front Streets, from men who know the
coffee situation thoroughly.
The National Coffee Roasters' Asso-
citation OF which Mr.. Carl Brand, OF
Cleveland. o.. is president, is doing
nothing TO stop the holdup. The green
coffee men are doing nothing. And
members Of both branches OF The trade
green and roasted coffee men-have
Joined in what is known as the Joint
Coffee Trade Committee, whose chair
man is Mr. Ross w. Weir. and have ac-
cepted the sum of>Si,000000 from the
Brazilian coffee planters 10 use in adj
vertising coffee in the United States at
the present high prices
The American and Brazilian specu-
lators together have forced.up the price
OF coffee 10 levels unreached since 1871
During the past year the wholesale
price Of coffee has been advanced about
100 per cent. rising from fik cents on
June 30 1918, TO 30la cents on June 30,
1919 Retail coffee OF good grade has
risen as much as 50 and GO cents a
pound. in some cases.
And in spite of The fact that since
July 30 Of this year. the wholesale price
has fallen Off between ; and cents,
there has been no lowering in price TO
the consumer
Talk OF coffee az one dollar a pound
has been freely INDUCED in by certain
coffee speculators.
We are the largest consumers OF
coffee in the world; Brazil Is the largest
producer: s. per cent. OF the Brazil
output comes to the United States, and
- per cent. Of all the coffee consumed
i'm the United states is Brazilian. We
drink over one billion pounds OF c0f
fee a year.
The purchase and storage by the
Brazilian government Of 100000 bags
Of coffee follows the lines Of the world
hold-up known as the "Valorization"
scheme. started in 1903 Herman Sielck-
en-. a German coffee speculator, was
The originator Of this plan. by which
g -rr..-t--. .--f4h 1w.-fffnr rrov-ourt
ment. enormous quantities OF coffee
were stored at different eenters, in
cluding New York. Hamburg. Havre.
etc. financed by bankers in New York
Germany. France. Belgium and Eng
land. The National City Bank OF New
York backed the scheme here. Under
The plan the price Of coffee was doubled
IN Two years. notwithstanding that The
average production was fully main
iained Senator George w. Norris. OF
Nebraska. forced a government invesli-
gallon The United States Department oN
Justice proceeded against the prOlieers
The stored coffee was seized and sold
and a Federal law passed making
"val0rization" impossible so far rs this
country is concerned.
But 20 was impossible 70 reach The
government. which Is work.
ing the hold-up game on IFS own ac-
count
frost occurred IN the spring o.
1918 in Brazil and when prices rose 10
unhe4rd-of heights IN the United States
belated efforts were made by certain
coffee men to explain &c as due to the
"frost."
W. II. Aborn. one Of The largest cof-
fee dealers in New York has suggested
a way TO bring down the price and
bring the Brazilian government 10
terms. He advocates a G0-day boycott
by American coffee drinkers
Representative Igoe NJ Missouri ha;
a resolution in the House d.
recting the Federal Trade Commission
10 inquire into the high cost OF cof-
fee The resolution sleeps IN the
on interstate and foreign
commerce.