Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-27
Profit Taking Absorbed.
Washington Ticker

BY the Associated Press.
Out of three foreign government
aided control systems established in re-
cent years over important tropically
produced commodities entering heavily
into American consumption only one Is
now fiourishing. That is the Brazilian
coffee price-sustaining scheme, which
has the support Of that nations gov
eminent as well as the cooperation of
the Brazilian administration in the
Brazilian state of Sac Paulo, the great
coffee center. The British colonial
scheme for fixing crude rubber prices
went down year ago and the last ves-
tiges OF Cuban official restriction on
sugar production were withdrawn Janu-
airy /, the action being followed in both
cases by decentralization of market prices
for the commodities directly involved.
Some trade observers think that there
are ominous signs that the same sort
Of strain which broke the attempted
rubber and sugar control systems is now
coming on the Brazilian coffee organi-
cation, but the market prices show few
signs OF 1t. Figures are still in excess
OF 20 cents pound for the higher
grades of Brazilian mild coffee, both
spot and for future delivery. While
stocks of coffee on hand are slowly
rising In Brazil, people in the United
States are slowly increasing consump-
ton OF the product at present prices.
The Commerce Department calculates
that in 1928 American coffee consump-
ton was !, AL ,499, 900 pounds, while the
figure for 1927 was ], 420, 095, 900 pounds.
1t also said that the stock on hand in
creases In Brazil during the last few
months are reasonable to expect. since
this Is harvest season south of the
equator.
Possibly the most significant sign as
TO the immediate outlook in coffee-and
the terms used in it have a familiar
ring to American ears now attuned to
16 per cent call money rates--is the
Following review just forwarded from
Rio de Janeiro by government COM
mercial agent:
1.-THE credit situation continues to be
serious with no immediate prospect of
improvement. The credit curtailment
and restriction of Brazilian banks Is
precipitating difficult commercial sit
uation from which there has been much
protest. The state Of Minas Geraes has
enacted legislation for the establishment
OF coffee defense"
Under the Brazilian fixed coffee price
level production Of the crop has been
stimulated sharply during recent years
In several other Latin American states,
notably in Venezuela and territory Dor
dering the Caribbean. Producers there
get whatever enhanced price may result
from Brazilian control endeavors, with
out having to share the burden. Never
theless, Brazil is still supplying close to
10 per cent of the American demand.
Hides and leather. now items on the
free list of the customs service, are COM
modities to which business gossip now
has 1t duties will be found attached
when the House ways and means COM
mittee puts out its proposed new tariff
bill. While schedules are not yet public.
hearing records disclose the split In view
Of industrial and agricultural repre-
sentatives heard on the schedule.
Il presume that we have had every
sort OF demand for the removal of
articles from the free list" said Repre-
sentative Aldrich, Republican, Rhode
Island, who was assigned by the COM
mittee to free-list matters. But the
hearings are the best evidence of that
1t is certainly only a matter of days
until these questions will be settled BY
the appearance of the bill"