Papers Relating to the Foreign Relations of the United States, Transmitted to Congress, with the Annual Message of the President, December 6, 1875, Volume I

No. 65.
Mr. Partridge to Mr. Fish.

United States Legation,
Bio de Janeiro, January 22, 1875. (Received February 25.)

No. 225.]

Sir: I have the honor to present herewith some important facts and statistics, set forth in the annexed table, in relation to the export to and consumption in the United States of Brazilian coffee. I hope this may yet arrive in time to be useful possibly in the consideration of the proposed re-establishment of the duty on coffee, the propriety of which it will tend to show; for these figures present a remarkable fact, namely, that there was a larger consumption of Rio coffee in the United States while it was there subject to a duty (3 cents) than there has been since the duty was taken off. I do not mean, of course, to assert from this that a duty (which is certainly an element in price) can make no difference in consumption; and that this last will in all cases be as great of an article when charged with a duty as when it is free. But consumption depends not only on cost of production, to which the duty is to be added; it depends still more on the general welfare at the place of consumption, which enables a larger use. And this table shows that in the years 1870–’71, when there existed general prosperity in the United States, there was a larger consumption of coffee, notwithstanding a duty on it then, (3 cents per pound,) than there was in the following years 1872–’73 and 1874, when coffee came in free.

The price of coffee in the United States went up in 1874 to 25 or 26 cents a pound, although then free. This was nearly double its price (13 or 14 cents in gold) in 1871, while there was a duty of 3 cents a pound. With a higher price, therefore, though without duty, there was a larger consumption in the United States than when the duty, still existed. It will also be seen from the table how the exportation here fell off during our civil war, and how it recovered and increased in 1870 and 1871, when there was great prosperity at home and a duty, to four times what it was in the black year of 1863. It also appears that it fell off somewhat in 1872 and 1873, and did not entirely recover in 1874, notwithstanding the abolition of the duty exacted up to July, 1872.

I submit that these facts and figures support the recommendation of the President—

1st. Because a needed revenue can best be raised on articles of general consumption, and especially on such as may have been prematurely or are still unduly exempted.

2d. Because consumption of coffee in the United States does not fall off because of a moderate duty thereon, unless in time of civil war or great distress, and then because of the distress, not because of the duty.

3d. Because the effect of a duty in the United States would be to lower the price in Brazil, (see my No. 218;) so that, with the addition to the lowered cost here of a duty in the United States, its price there would not be augmented nor its consumption diminished. There is another reason, not shown by this table, which I believe to be as true as any there, and it is this: Whether patriotic feeling can be included among the reasons for any rule of political economy or not, experience at home has shown that the American people will continue, in times of ordinary prosperity, to use those things to which they have been accustomed, including the general luxuries, after a moderate duty has been imposed, as well as before. Nor will the consideration that such duty has become necessary, whether for the purpose of maintaining the country or the public faith, diminish their use during ordinary prosperity to the extent of a single pound.

I am, &c.,

JAMES R. PARTRIDGE.

(Inclosure in No. 225.—Translation.)

exports of coffee from rio.

Exports, estimated in bags of 60 kilograms (132¼ pounds) each,^* during the last twenty-seven years, from 1st of January to 31st of December, in each year, from 1851 to 1874, both included; showing, also, the quantity exported to the United States and that sent to all other countries together: thus demonstrating the comparative importance to Brazil of the consumption in the United States and the consumption in all other countries; showing also a larger export from Rio to the United States, while the duty existed there, than since (July 1, 1872) it has been free.

Year.	To Europe.	To United States.	Total.	Year.	To Europe.	To United States.	Total.
1851	$1,277,278	$1,221,717	$2,498,995	1863*	$1,195,553	$456,706	$1,652,259
1852	1,152,931	1,180,908	2,333,839	1864*	1,140,540	671,389	1,811,929
1853	963,804	1,041,637	2,005,441	1865	2,333,504	863,960	3,197,464
1854	1,358,195	1,075,889	2,434,084	1866	1,339,892	1,028,743	2,368,635
1855	1,554,408	1,303,699	2,858,107	1867	1,754,374	1,501,606	3,255,980
1856	1,322,746	1,247,270	2,570,016	1868	1,368,800	1,404,129	2,772,929
1857	1,492,850	1,077,630	2,570,480	1869†	1,613,415	1,526,374	3,139,789
1858	853,709	1,377,050	2,230,759	1870†	1,024,473	1,680,269	2,704,742
1859	1,077,072	1,408,312	2,485,384	1871†	1,227,782	1,656,844	2,884,626
1860	1,416,845	1,408,312	2,825,157	1872‡	1,077,158	1,383,193	2,460,351
1861	1,626,241	907,293	2,533,534	1873§	1,007,909	1,425,800	2,433,709
1862	1,346,266	473,390	1,819,656	1874§	1,151,782	1,521,499	2,673,281

1. Until within a short time coffee was sold and the prices quoted by the arroba, (32 pounds,) and was exported in bags of 5 arrobas (160 pounds) each. It is now quoted at the price for 10 kilograms, (22 pounds,) and is exported in bags of 60 kilograms (132¼ pounds) each.
2. 5 cents duty.
3. 5 cents duty.
4. 3 cents duty.
5. 3 cents duty.
6. 3 cents duty.
7. 1 per cent. free.
8. Free.
9. Free.