Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1924-12-21
COFFEE TAKES
RAPID ADVANCE
y
Short Crop in Brazil One
of Reasons for High
: = Price
by The Associated Press.)

oN, ~lc&.. Zee. -U.-bretH
coffee has made an almost unpreccdeni-
ed price advance in the markets OF the
world which is reflected in an i~ncreas-
ed price Of the roasted product to The
consumer, until the better grades can
not now be bought in Texas or any
where else in the United States a; less
than so to GO cents a pooad.
This is an increase within six months
of about 40 per cent. Even low grades
have not escaped a grcaS advance, one
variety going from IA 10 ID cents a
pound wholesale in July to 25 cents in
November. In contrast to these. prices.
1t has not been many years since sew
erai ~well-known brands Of good coffee
sold over the counter retail from Is to
35 cents.
When asked a reason for The present
advance, William B. Clarke. manager
of IA large coffee roasting plant in
Houston, stated:
Short Crop
Several factors enter into the pre-
sent situation, the principal one of
which is The law of supply and demand
Frem reliable sources We learn that
this: years Brazilian crop of coffe is
a short one, and when it is considered
that the per capita consumption of cof-
fee has increased in this country dur
ing the last -four years from nine and
four-,enths pounds to ~ - pounds, it
is easy 10 understand why a shortage
in the normal supply would cause an
advance in prices.
Another factor which has material
l. l-l--l 4.
tom of the Brazilian government in
regulating the amount CT coffee which
may be shipped each day from the in
terror 10 seaport. to a certain number
Of bags, based on the worlds daily
requirements. Formerly with no regu-
latien the crop was thrown .on The mar
ket latgely at one time and as the
amount was greater than could possibly
be consumed for many months it
brought only such prizes as the large
interests who could finance ii were
willing to pay and which resulted over
a long period of years in cheap coff,a.
The result of government regulation
has been 10 stabilize the price. and as
sure fer the grower a larger. le,ufn
for his crop.
Option Markets
As we see it. these arc the two
basic reasons for the advance III cot
fee. but any consideration Of the sub
ject would be incomplete without TAX
ing into account the opera; ions Of the
SPECTATORS rs evidenced by The qu Ia
tions on the options market. IL mGkc>
little difference what staple commodity
maE-h@ co1sidP red. if Legitimate rea-
son appears for THAI article to be high
er in price, operations on the options
market are likely 10 carry still higher.
In my opinion, this last factlr acS ounts
for par, Of the advance in coffee. Dur
ing the Latter part Of November prices
declined several cents a pond from
the Top and many think that tic spc-
cufative, interest has beer LARGELY eli
minstt d and that present quotations re-
present a. Legitimate, price level. for it
seems certain that if reports of cron
shortage were untrue and Their existed
a plentiful supply Of coffee, prices
would have declined much be.ow pre-
sent figures.
Mostly Labor
Entirely apart from III, causes re-
sponsible for present prices. j, Is quite
likely that along with many other com
modities We must accuStom ourselves
10 the new price level for eoff1e.
,"Coffce. it should be understood, is
largely labor, and the price we have
been Gecustemtd TO paying is. simpii
4 REFLECTION Of pcon labor III Brazil
ranking with the Lowest paid in he
world. As an illustration. should the
BRAZILIAN planter be obliged TO pay his
labor the same price that is paid com
mon lator in, the United States. coffee
would sell here al no less than S1.50 q
pound. Already wages have advanced
in Brazil and it is only a question Of
time until The world will &c reqniHtl
to pay such a price for its favor!tc
beverage as will allow reasonable
wages 10 those who produce it,
Mr.. Clarke pointed out that The COT
fee rOa>terS had no control over en-
ditions Is thy exist and that The
price will 30 still higher when the
cheaper coffee j.. used up and the
rcasters 1Cpitnish their stocks.
1t is estimat, d one pound OF coffee
will make 40 cups, which, on 4 basis 81
12t1-2 pounds per capita indicates that
persen consumes On an average
about 500 cups Of coffee annually.
Texas, with its 46is,00B population,
spends around 81 4 person fer its cof-
fee, or a total Of about So, 00G. 0C0 A
year.
FRANCE CHOOSES HER VISITORS