Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-22
j. S. FARM BOARD,
WILL HOLD COFFEE
Supply Obtained in Wheat
Exchange to Be DoIed Out
Monthly in 1882.

The Federal Farm Board anticipate,
no difficulty in selling to the American
trade the lose, 900 bags Of coffee OBJ
tanned through yesterdays exchange
with the Brazilian government, CHAIR.
man Stone said today.
Outlining further details Of the trade
whereby 25.e0O, 900 bushels OF the
wheat store held by the Grain Stabtli.
zation Corporation are TO be sent T.
Brazil, Stone explained that none Of
the coffee is to be disposed OF until the
Fall of 1892.
At that time. he said, it will be dis
posed Of in monthly allotments OF
$1,000 bags to avert any unfavorable
effect to this country's coffee trade. A
bag averages 132 pounds.
Meanwhile, the Green Coffee Associa-
ton OF New York will meet Monday tc
consider the effect of the deal on regu-
lar trading operations. Some concern
was said to be felt by New York I'M
porters.
Based on Current Price.
The barter was based on the current
market prices of the two commodities
or about cents o bushel for the wheat
and Sl2 cents for pound Of coffee.
Under the terms Of the agreement
Brazil is to turn over to the Bush
Terminal Co. of New York an add.
tional 225,000 bags Of coffee for theti
services in grading, handling and stor.
ing the coffee without expense to the
Sterilization Corporation.
On the other hand. the Farm Boarc
subsidiary is to lay the wheat down al
Atlantic seaports I. o. b. and the Bra
tation charges. Shipment will be In
monthly installments, beginning ir
September or October. The coffee now
Is stored at regulatory warehouses ir
Sac Paulo. The coffee Is exempt from
the Brazilian tax. as the trade does
away with exchange rates. Stone said.
Agreement Signed.
The agreement whereby the two gov.
ernments resort to the barter and trade
practices Of another era to dispose Of
SURPRISES that have been stu1tifyine
commerce was signed yesterday at the
Brazilian embassy by Ambassador d.
Lima. George s. Minor, president oil
the Sterilization Corporation, previously
had affixed his signature.
Negotiations had been under way fol
several months, as both countries hae
hoped through the disposal OF a portion
of their surplus commodities prices Il
their respective growers might be i'm.
proved.
The announcement was made alrncsi
simultaneously with that by President
Hoover. In which he said the amount
Of wheat that might be sold by thu
board to the Chinese government fol
flood relief was unlimited. The Ma.
tionalist government had inquired II /,
might purchase on long-term credit
Is 100000 bushels of the 200, 100000
bushels of wheat held by the Stabilize
ton Corporation in an effort to uphold
prices Of the grain.
Would Tend 10 Develop Market.
Although the Farm Board previously
had authorized the disposal Of 81, ZOO,
900 bushels Of wheat in foreign mar.
kets, the Brazilian trade was the first
Of its kind Chairman Stone pointed
out that Brazil normally imports little
wheat from the United States, but thai
this transaction would tend to develop
further q North American grain mar
ket In that South American country.
For many years the Brazilian govern.
ment has sought to aid its principal az.
ricultural crop by purchasing coffee fol
sterilization purposes. It went 20 far
once to dump some coffee In the At.
lantic Ocean and later to place q tar
on overproduction. The Farm Board
expressed belief the move by the two
governments would be beneficial to both
countries.
Brazil has provided the United State.
coffee market with IS to 10 per cent
Of Its annual demand for years. Last
year it sold to consumers In this coun-
try 1.728,569, 297 pounds Of coffee val
ued at 1892 1883. Last year 2,o37, 00C
bushels Of American wheat were sold tc
Brazil consumers