The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1926-03-05

The United States is by far the
largest consumer of coffee, and is
thus particularly concerned with the
forces underlying the extreme price
movements that have characterized
this commodity in the past and with
the outlook for the future. In view
Of the current controversy ever the
rubber situation, it is Of interest to
note that IN the recent past the value
Of imported coffee has far exceeded
that Of rubber. 1t is also the only
product involved in the present in
terraticnal discussion which enters
directly and on q large scale into
popular consumption.
Brazil produces about two-thirds of
the worlds crop and is thus in a posi-
6cn to dominate the market, states
the current issue of the Guaranty
Survey, published by the Guaranty
Trust company of New York. The
United States is the country most af-
fectcd by the Brazilian governments
plans for price regulation, the Sur
vey says, since the people of this
country consume One-half Of all the
coffee grown throughout the world.
According to the department Of
commerce, "the large artificial in
crease" in the price resulting from
the Brazilian valorizatiOn scheme
cost the American consumer more
than $82,0 900, 900 in the fiscal year
ended June so, 1925. During thai
year the average price of ccffee i'm
ported into the United States was
30 878 cents a pound, or 44h per cen
higher than the average for the pre-
ceding year. The increase in tn
price of Brazilian coffee during tn
same period was nearly 55 per cent
Institute Of Coffee Defense
In 1922 the Brazilian legislator
extended continuous protection to tn
coffee industry by providing for tn
creation Of an Institute Of Perms
nent Coffee Defense and inaugural
ing a policy of continuous limitatio
Of receipts of coffee at export point
The government had tried the po
icy of export restriction as far baC
as 1906, and had realized the need
warehouses to support it. The plan
ers need both facilities fer stOriT
the crop and money to defray the e.
penses Of growing and harvesting
By the fall of 1928 the cOnstrUctiC
Of warehouses in the interior of S.
Paulo was practically completed. !
the end Of 1924 the newly organic
Sac PaulO Institute Of Permane
Coffee Defense took over the go
eminent regulatory warehouses a
was vested with entire control of t
machinery for coffee defense in S
Paulo. ~. n
The Sac Paulo institute has al
directed It's energies toward the pl
motion Of efficient production, and
particular has carried on a fig
against an insect pest whose destrl
tive pOtentialities in the coffee
dustry correspond fully with tn.
Of the bOll-weevil in cotton gpcwi
The institute has also financed
7r campaign TO increase
demand for coffee.
Difficulties of Administration
The Ground on which the "defen
Of coffee has been criticized is {
the institute is vested with the rig
which it has so far exercised Il
moderate extent, Of entering the n
ket and purchasing coffee at its
erection. The avOwed purpose of
regulation is the maintenance o
price that viii guarantee a 'fair"
turn to the planters. The ascert
ment Of a "fair' return, however
the producer is difficult enough
any industry and particularly d
cult in agriculture.
World conditions tend to favor
ValOrization plan when exercised J