Evening star., 1924-12-10
u. S. TO FIGHT COST
Of BRAZIL COFFEE
Hoover to Hold ParIey in Ef.
fort to Terminate Price
Fixing Policy.
BY FREDERIC WILLIAM VILE.

BY FREDERIC WILLIAM VILE.
Every housewife and coffee drinker
in the United States will be inter
eSted in a conference to be held un-
der the auspices of Secretary Hoover
in Washington within the next few
days. The conference has been called
to devise ways and means of break
ing the monopolistic grip of Brazil
on the coffee market of this country
Prices of the popular household
beverage have been steadily rising
Official figures indicate that the
average yearly retail price OF Bra
lillian coffee in the United States has
increased from 80 cents Il pound in
1914 to 1ls cents a pound in 1924
Many grades of coffee are now retail
ing at so cents a pound and over.
Uncle Sans retail coffee bill this
year will be in the neighborhood of
$601, 100000 In consequence of Bra
lillian price fixing Americans will
pay in 1924 a coffee tribute of
about S55,000,000 more than their
retail bill in 1923. This represents
an additional cost of $15l,129 day.
or about so cents per capita per an
mum.
viii Fight Price Fixing.
The forthcoming conference at the
Department of Commerce was insti-
gated by the National Association of
Coffee Roasters and by other leading,
groups of wholesale and retail deal
erS. Their purpose is to consult with
Secretary Hoover as to how the So
called ''ValoriZation" of Brazilian
coffee-the technical description of
the price-reEulating system-can be
combated There is a proposal that
Sh
on a buyers strike as far as Brazilian
coffee is concerned. Some authorities
think the mere threat of such q
strike would bring the Brazilian
coffee barons to terms. Others be
Iieve it may be necessary for this
country to begin Systematically to
import coffee from various Caribbean
countries like Haiti, Guatemala, Costa
Rica, Colombia and Jamaica. There
are connoisSeurS who think certain
blends of Costa Rican and jamaican
coffee are the finest in the world. But
the Brazilian bean has held prac-
tically undisputed sway in the United
States.
Pressure Held Effective.
The Hoover conference will be told
that Brazil could not easily resist or
ganized pressure from the United
practices. Roundly, three-quarters OF
Brazirs entire coffee output is sold
to this country, which for the past
few years has depended upon Brazil
for SO to 20 per cent of all the coffee
consumed here. II is estimated that
our total coffee imports this year will
total 1,447,97474S pounds. The aver
age retail price in 1928 was 3I,7 cents
a pound
"Valorization" is the device where
by the Brazilian government enters
into its own coffee market on a scale
which enables IT arbitrarily to con-
troll the price of that commodity.
This is accomplished by the effectuaI
official fixing OF prices at a point
higher than the prevailing market
prices, and by regulating shipments
from the interior into the principal
ports of export. Thus there is no con-
gestion Of stocks to depress the
price Of coffee and prejudice the
smooth working of the operation.
No Coffee Shortage.
y United States Government au-
thority, well posted on the methods
of coffee manipulation in Brazil, says
that the Brazilians took a leaf out
Of the system OF the Kimberley dia-
mond mines III South Africa. For
= =
dicate that has the worlds diamond
has kept up the price of
diamonds by vigorously reducing or
the supply Is its inter-
ests from time TO time demanded.
Agents of the United States have as
certained that there is no shortage
of coffee in Brazil.
It was boarded and warehoused eX-
for the purpose of market
control and price fixing. The Bra
zilians before the war pursued the
warehousiug system in Europe.
They had big supply depot crammed
with bags Of coffee at Antwerp. IT
was one of the first things pounced
upon by the Germans when they
captured Antwerp in October, 1914.
The litigation over recovery of their
by the Brazilians was only
recently terminated.
Various recourses are available to
the United States for inducing Brazil
to reform her coffee policy. Once
the land of Dom Pedros was the
great source of the worlds rubber
supply. The valley of the Amazon
was incomparably rich in raw ma
terial. But now the rubber trade
has passed exclusively to the Far
East. The American Congress in the
last war appropriated $500,000 for
the cost of an inquiry into new
Sources Of rubber supply. There are
in Washington who are
convinced that a prospect of the in
vestment of American capital in the
of the Amazonian rub
Der region might tend to bring about
coffee reform" in Brazil.
Copyright. 1924.l