Monday, Aug. 29, 1932

Coffee Scare

Though few U. S. coffee-drinkers knew it, a threat hung over them last week. There was a possibility that soon their coffee cups might not be refilled at the asking, even that they might not be filled at all. The blockade of revolutionary forces in the great Brazilian coffee port of Santos by the Federal Government was threatening the chief source of U. S. coffee. Slipping out after the blockade was established, the last coffee boat from Santos docked in Manhattan Aug. 4 with 13,200 bags aboard.

Biggest coffee pot in the world is the U. S. coffee pot. Into its cavernous maw is dumped nearly half the world's total average annual production of 250,000,000 bags. About half is poured in from cans and packages, about half in bulk. Out of the Niagaran spout are poured 60 billion cups a year--one and one-third cups daily for every U. S. man, woman & child. Two-thirds of the coffee for the big U. S. pot comes from Brazil. Colombia, Venezuela, Guatemala, Mexico, Java, Mocha and other tropical lands furnish the other one-third, mild coffees which are blended with the strong Brazilian. Using a million bags a month, the U. S. last week had visible stocks which would keep the big pot full for another 20 days. The Farm Board has another 1,050,000 bags which it can start to market Sept. 1 at the rate of 62,500 bags a month. Bartered for wheat, this coffee shows the Farm Board a paper profit of $4,000,000. At the instance of coffee roasters the Farm Board last week started negotiations with Brazil to modify the contract to permit larger monthly sales.

Coffee men scouted talk of a prolonged shortage. Lesser Brazilian coffee ports are still exporting. The price of Santos has jumped only 2 1/4-c- a pound in the last month. Though quotations for delivery next March would normally be higher than near contracts, September contracts now stand 2-c- above March contracts, indicating the belief of coffee men that while a shortage may develop, it will be temporary.

This file is automatically generated by a robot program, so reader's discretion is required.