Evening star., 1931-05-23
u. S. TAKING PART
IN COFFEE PARLEY
Solution Is Sought at Sac
PauIo for 0verproduction
in Industry.
BY LOUIS E. VAN NORMAN.

Now that the worlds principal sugar.
| growing countries have come to some
sort OF understanding to save themselves
from the woes OF overproduction and,
In number Of countries, investiga-
tions into milk prices are in progress,
it is in order to get down to the main
ingredient IN our morning drink-the
coffee itself.
There is now in session In San
Paulo, Brazil, an international coffee
conference. The meeting was opened
this week under the chairmanship of
the Brazilian minister of labor and
there were representatives present from
the United States, Colombia, Venezuela,
Ecuador, Mexico, Salvador. Guatemala,
Panama, Great Britain, Holland and
Portugal
The problem which the conference
Is facing Is that Of overproduction in
cohee, with consequent low prices.
Coffee prices have declined from "a
cents q pound in January, 1929, to 9h
cents q pound at this time This af-
fects the coffee industry all over the
world. In eight or nine Of the Latin
American countries, however, the coffee
situation is the key to general eco
nom1c conditions. Planters, brokers
and banks are affected. American
trade with o of the 20 republics of
this hemisphere is largely dependent
upon the course OF world coffee prices.
American Delegates.
Government circles In Washington
have been rather reluctant to discuss
the program Of the gathering at Sac
Paulo. 1t was learned today, however,
at the Departments Of State and
Commerce that the American delegates
without power to commit this coun-
try-are c. r. Cameron, consul general
at Sac Paulo, and David S. Green,
trade commissioner of the Department
OF Commerce at the same city. The
trade" Is represented by Armand Le-
gendre, a representative of the New
Orleans Green Coffee Association, ap-
pointed while on a business trip in
South America.
Brazilian coffee has been one Of the
products Of the Western Hemisphere
most affected by the worldwide busi-
ness depression. This has added TO
Brazils difhculties under the so-called
valor1zation plan. The retention of
coffee in warehouses under this ''coffee-
defense" plan, by maintaining prices,
has operated to encourage production
in other parts of the world, thus en-
abling Colombia and other producing
countries to market their coffee to such
an extent that Brazil's percentage of
world exports to consuming countries
has dropped from 10 per cent 0o09 to
1913 average) TO 81 per cent 0924 to
1928 average). just now, moreover,
the stocks retained in Brazil have a re-
verse effect, tending to depress prices
for all coffees, but for Brazilian in par
ticular. With the exception of Brazil,
exports have approximately equaled
production, aside from local consump-
ton, so that Brazil is the only country
where stocks on hand are suficient to
affect the market situation.
BraziI's Huge Surplus.
Brazil, in fact, has on hand a surplus
OF coffee that is more than the world
can drink At present she has more
than $4,000, 900 bags from crops Of pre-
ceding years held in storage. To get
rid Of this surplus Brazil needs money.
One Of her plans is to impose an export
tax, but this would give competing pro-
ducing countries an advantage In price,
or, on the other hand, lower the price
obtainable by her own producers. An
alternative Is for an agreement on
quotasAwhich other countries may not
approve so long as Brazil wants as
high a quota as Is reported In the
rest Of the world there is at present
scarcely more than the normal surplus
in both the producing and importing
countries.
The Brazilian proposals, suggested to
hold for five years, are reported to in
clude q fixing Of quotas based on the
last five years of production, an agree
ment on price, tax for IAN interna-
tional coffee advertising fund" and the
appointment Of commission to study
prices.
It Is interesting to note that the
consumption Of coffee in the United
States has increased from 8.9 pounds
per capita in 1918 to 1915 In 1880.
Americans now consume approximately
a billion and half pounds year.
ICnnyririf 1hai i