The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1937-11-25
Brazil Quits
Crop Control

competitive basis. That is to say,
Brazilian coffee once more will be
sold in world market conditions. 1t
was IA years ago that crop control
was started, and now it has Topped
finally after costing the growers
losses accountable in millions and
after virtually wrecking some por-
tons of Brazil's foreign trade.
I think it might be said also that
the fallacy of the coffee control pol
icy was among the real causes
which eventuated in the dictatorship
that established itself in Brazil re-
Gently. President Getulio Vargas
succeeded in placing himself at the
head of the nation indefinitely and
he did so, he said, because of "un-
rest among the peoples" of the prov
inces. The first dictatorship in the
Western hemisphere, therefore, is
a fact.
But to get to the coffee question:
it was the determination of the Bra
lillian leaders that a policy of scar
city would force coffee prices higher
in the world market. The state of
Sac Paulo initiated the scheme. 1t
failed to work, and its sponsors
said the reason was its scope was
limited. Thus, it was expanded I'M
til the whole nation was embraced.
Still, coffee prices did not go high
enough and it was then that actual
destruction of coffee began. Mil
lions of tons were dumped into the
Atlantic ocean and other millions
were burned-even as we in this
country burned surplus wheat and
corn and killed 100000 pigs.
AS the destruction continued and
the growers found themselves tied
tighter with regulations and de-
crees, there were some increases in
prices. But the promised great
profits proved to be as illusory as a
mirage on the desert.
The whole thing was a boomer
ang. Not only were the producers
in Brazil disillusioned by failure to
gain the record returns they had
been led to expect, but they found
another sad and wholly disadvan-
tageous result staring them in the
face. There was some increase in
the price-just enough, indeed, to
reduce consumption to some extent
for the growers, but with Brazil
reducing available supplies others
got into the producing business.
Among these new coffee growing
areas, Colombia sprang into prom
inence. Maybe Colombia coffee was
not as good as Brazips, in quality.
Maybe it was not quite as accepta-
BILE otherwise. But it was cheaper,
and it was profitable for Colombia
planters to produce. They found
ready sale.
That, however, was not the worst.
When other coffee-using nations
bought coffee from Colombia and
other growing areas, Colombia was
able to buy other commodities from
the nations buying her coffee. New
trade agreements suddenly showed
up; new relationships were estab-
lished, and some of BraziPS former
business connections throughout the
world are gone with the wind. They
may never be re-established.
We, in the United States, ought to
give quite bit of thought to Bra
zil's coffee experiment for we have
had, and are threatening to have
more, experiments of a kindred ma
ture. Lessons in crop control are
right expensive, and more impor-
tant is the fact that sooner or later
all through history, they have had
to be abandoned. And when re-
fer to crop control, I include all
kinds of production control whether
agricultural or industrial. Some
body always has to pay dearly for
it and usually the cost has been ex-
tended. 1t is reflected in other COM
modities and in taxes until the &C
tual loss from the experiment is
multiplied many times over.
The Brazilian fiasco came at an
opportune time for us in this coun-
try. Congress right now is hauling
and filling, this way and that, on
the subject of crop control as an
agricultural relief proposition. The
fight is between those who advocate
compulsory control and those who
urge voluntary control. The fight
ought to be between those who
advocate any kind of control and
those who oppose any kind of con-
trol-because our own experience
and now that of Brazil ought to pro-
vide an understanding. Brazil's
case ought to be good one for con-
gress to consider because there
were few commodities so much I'M
der the control of one nation as
coffee.
Then, too, right here at home we
see Secretary Wallace campaigning
as though his life depended upon it
for his lever normal granary' plan.
At the same time, his Department
of Agriculture comes out with new
regulations for control of potato pro-
duction. The secretary is not advo-
eating destruction of potato sur
pluses by burning; he proposes to
feed them to cattle and hogs-and
pay the farmers for thus taking
those potatoes off of the market.
Speaking of congress, the way it
has started off makes me think that
the extra session
FotIttcoi was purely a po-
MoUe itical move. l am
quite sure it is 60
ing to accomplish some great good
like amending the neutrality act. OF
course, suppose l should not be
selfish. ought to consider that the
representatives and senators must
have time to make speeches for this
or that or the other so that their
constituencies back home will be
dlIly impressed with their impor-