Evening star., 1923-07-19
BRAZIL LIMITING
COFFEE SHIPMENTS
Trade Here Watching Effect
on Prices and Supplies
With Deep Concern.
BY j. c. ROYLE.

Special Dispatch TO The Star.
NEW YORK, July l9.-The mireis Is
sull floating on the surface of the
coffee cups of America. Whether the de-
mand for coffee to fill those cups is
strong enough to hold up the standard
of currency of Brazil. or whether II
will sink owing to the struggles of that
government to regulate and stabilize
the price of coffee, Is a question that is
being fought out between the South
American authorities, the growers and
the American roasters and grocers.
Brazil Limits Shipments.
Brazil has limited shipments of coffee
to $4,000 bags a day at Santos and H.
900 daily at Rio de Janeiro. The trade
Ia America has countered by declining
TO buy. So far as known here, the
Brazilian government has been unable
to negotiate loan which would permit
1t to finance the growers through a
period of waiting, and allow them to
hold their product for higher prices. On
the other hand. the statistical position
OF coffee is extremely strong and in
visible supplies in this country and
stocks in the hands of the dealers are
small.
Have Sold Futures.
Brazil, in issuing paper currency,
according to II. ]. Fallon of Lamborne,
Hutchings & Co, large coffee dealers,
is skating not on thin ice, but on the
very bubbles of the coffee pot. The
Brazilian growers, as a result, are
holding the coffee bag in more ways
than one They have been restricted
from shipping spot coffee, and they
are in dire need of ready cash, many,
therefore, have sold coffee futures"
in the New York market, against
which they must deliver the actual
coffee when due. This has weakened
the regulatory efforts Of the Brazilian.
All Eyes on Brazil.
The Brazilian crop, moreover, prom
lses to be a bumper one. according to
Mr.. Fallon, although il will not be
quite so large as the estimates made
Two months ago indicated. Yet, one
OF the outstanding features of this
knotty situation" he added, "is that
conee in the United States now is
selling well below the cost of replace
ment, and it is impossible to go to
Brazil and buy coffee for the prices
now quoted in local markets. Stocks
In the hands of the jobbers and re-
tallers are small, but roasters in the
middle west and the trade in general
are out of the market. They are
waiting to see what move the Bra
lillian government will find it possible
to make next"
Lower Prices for Canned Goods
There is every brobality that a
half dozen of the largely consumed
varieties of California canned fruits
Will come to the consumers table
next fall and winter at largely re-
duced prices. Big Gamers have
siashed prices paid producers of
peaches and apricots and material
reductions below 1922 prices are ex-
pected in pruneS, figs, raisinS and
pears. Lower retail prices for can
ned cherries are forecast, as pro-
ducers are receiving one-third less
than they did last year. Subnormal
heavy carry-over of many varieties
of canned vegetables
Expect Reduced Stocks of Goods.
The fact that there has been no
accumulation of large stocks of man
ufactured goods is being estima ted
at its true worth by business men in
viewing the prospects for the re-
mainder of the year. Curtailment of
orders has been almost entirely con-
fined to wholesale purchasers. Re-
tail sales have held up in sympathy
with the mid-year slump.
Manufacturers take the view that
what is consumed must be produced
and as surplus stocks are low, and
retail buying high, continued manu-
of the largest silk manufacturers in
discussing his own line today, de-
clared that as the vacation period
drew to a close retailers would be
forced into the market again.
Silk is highly popular with Amer
the money with which to buy it. |
believe there will be wholesome de-
mand which will call for all that
can reasonably be produced