No. 81.
Mr. Partridge to Mr. Fish.

No. 274.]

Sir: In my Nos. 218 and 225, I offered some facts and statistics in regard to the export hence to, and consumption in, the United States, of Brazilian coffee, and the effect here of demand and prices there, and especially in regard to what had been, and probably would again be, the effect on prices here of a duty thereon in the United States, in support of the recommendation then (December, 1874) made by the President, of its re-establishment.

Although Congress adjourned without imposing a duty on coffee, yet, as it appears not improbable that the necessity therefor still exists, perhaps some additional facts and statistics in relation thereto, based upon subsequent prices here, amount of export to the United States, I prospect for the prices of crop just gathered, (up to 1st of July,) and which constitutes the supply up to 1st of July, 1876, may be acceptable to the Department.

I have, therefore, annexed hereto (1) a “comparative table of the clearances of coffee from the ports of Rio and Santos during the crop-years 1872–’75,” issued by Messrs. J. M. Wright & Co., on the margin of which are some annotations respecting weights, &c., and further explanations.

From the figures there given, and from those of the Bureau of Statistics (United States) of imports and exports, it will appear that from 53 to 64 per centum of the whole Rio coffee-crop goes to the United States. This will serve to explain the fact that the price here depends upon the demand in the United States for Rio coffee. That coffee (the coffee from Santos is of a higher grade and price, better prepared, and goes chiefly to the north of Europe) is, generally, of a lower quality and price than that of other countries. Its peculiar taste, which is strong, and even rank, compared with that of Venezuelan, Costa Rican, and other origin, is due, in some measure, to its being gathered before it is strictly ripe, as well as to soil and less careful preparation. It is this peculiarity, however, which makes it acceptable to consumers in [Page 118] the Western and Southwestern States; and it is there (for it is on this account not acceptable in Europe) that its chief market is found, especially for the lower grades. The highest grade of Rio coffee, (washed,) as well as that known as superior, or “first good” goes chiefly to Europe, and that, of those grades, sent to the United States is sold under a different name and for a higher price.

The great consumption of coffee in the United States, (greater per head than in any other country, except, possibly, Holland) and especially of Rio coffee, which constitutes from 72 to 77 per centum of the whole import into the United States, will also appear from those figures.

Also the further fact that in ordinary crop-years, when this is not “short,” any apprehended falling off in consumption in the United States—whether from lessened prosperity there, or from any other cause, including the imposition of a duty—is followed here by an immediate lessened demand, and a correspondingly lowered price. This was shown especially at the time of the first imposition (1861) of duty, (3 cents,) and when it was afterward increased to 5 cents; at both times the price fell here almost to the extent of the duty.. It might have been expected, then, that when the duty was first reduced again to 3 cents, and afterwards abolished, the price in the United States, to consumers there, would be lessened by the amount of the duty so abolished. This, however, was not the case; and in July, 1872, the taking off the duty inured to the benefit of Brazilian coffee-growers. These received even more for their crop, in consequence partly of the expected increase of consumption in the United States in consequence of the abolition of the duty, as well as from rumors of a short crop, and a speculative demand founded thereon. The price of coffee at that time went up in Rio; and while the Treasury of the United States gave up a revenue of some eight or nine millions of dollars on this one article alone, the consumer in the West had actually to pay a higher price after the abolition than during the continuance of the duty.

The consumption of coffee in the United States is steadily and almost regularly increasing, and does not appear to be at all affected by the recurrence of financial distress. Thus, in the twelve months preceding June 30, 1873, there were imported into the United States 293,000,000 pounds of coffee; and in the next ensuing twelve months, up to 30th June, 1874, including the nine months following the September (1873) “panic,” there were imported over 295,000,000 pounds; showing an increase of over 2,000,000 pounds, notwithstanding the lessened commercial activity and prosperity of the country during that year. And the difference in the price paid therefor is still more striking. During the year first named, (up to June 30, 1873,) the declared (custom-house) value of the (293,000,000 pounds of) coffee then imported, was $44,000,000; while during the following year, (including the effects of the panic,) the 295,000,000 pounds of coffee was valued at $55,0000!* Thus during a year of distress the people of the United States consumed 2,000,000 pounds of coffee more, and paid therefor a sum greater by $11,000,000 (25 per cent. more) than they had done during the year preceding, which is, now at least, thought to have been a time of inflation and wild speculation. During that year (1873–’74) the shipments from Brazil to the United States were only about 188,000,000 pounds, (against 215,000,000 in 1872–’73; 236,500,000 in 1874–’75,) and making only about 64 per cent. of that whole import, instead of the usual proportion of from 70 to 77 [Page 119] per cent. This falling-off, however, in coffee from Brazil during that year (while the whole import from other countries was much greater) was due to the fact of the very high price of coffee in Rio in that year for shipment to Europe, where prices had much risen in consequence of short crops in those countries (Ceylon, Java, &c.,) from which supplies for Europe came.

Experience here shows that whenever, in Rio, the price of coffee goes above 16 or 18 cents (U. S.) gold, so that to the consumer in the United States Rio coffee cannot be retailed for less than 23 or 25 cents the pound, other coffee than Rio, of a better quality, and, then, of no higher price, is used instead by a large class of consumers, while by the still larger class a compound bearing the name of Rio, or, in some cases, more aptly called “French,” (since none grows there,) takes its place. This preparation can, of course, be sold at a much lower price than that at which even the lowest grade of Rio coffee could then be imported.

The crop now (since July 1) gathered and coming to market is acknowledged to be a short one. It is variously estimated at from one-half to two-thirds the usual crop, which is about 200,000 tons; probably it is not less than 130,000; and there still remain at least 55,000 tons of the preceding crop, detained by bad roads last year or withheld in the interior. Thus it will not, probably, be far wrong to say that from July 1, 1875, to July 1, 1876, there will be, or can be, brought to market 185,000 tons of Brazil coffee. This is a great falling off from last year, when (up to July 1, 1875) 233,000 tons were exported; but it is a larger amount than was exported during 1873–’74, when only 156,738 tons were sent abroad. The price of Brazil coffee, therefore, supposing there is no short crop in other countries, will probably be lower than in 1873–’74, nor can it be expected to be higher than at present, since prices have now reached the point at which consumption falls off and imitations begin in the United States.

I do not know if it be still the intention of the President or of the honorable Secretary of the Treasury again to recommend the re establishment of the duty on coffee; but if it be, I respectfully submit the foregoing facts and figures in support of such recommendation, and in proof—

  • First, that by reason of the United States being the chief for all grades, and almost the exclusive consumer of the lower grades of Brazil coffee, the price of this last, in Rio, depends on the demand in the United States alone.
  • Secondly, the effect of any duty on coffee in the United States is not to lessen consumption there, and is felt in the price here, and not in the cost to the consumer in the United States; and that, therefore,
  • Thirdly, the effect of such duty now would be to give a large sum ($10,000,000, at 3 cents per pound) to the Treasury, without any burden or increase of price to the consumer at home.

I believe that the United States is the only country (unless Holland be excepted) which admits coffee and tea free of duty. I have appended a table, (2,) showing the duty on coffee in various countries (14) named, stating this from the heavy imposition (about 14 cents per pound) in France to the moderate tax (1⅓ cents) in Belgium. It will be-seen that the medium rate would be over 3 cents per pound. A duty of 3 cents per pound on coffee, and a (corresponding) duty of 15 cents per pound on tea, in the United States, would give a revenue of twenty millions of dollars, without any burden to the consumer; and would, probably, be more cheerfully paid than any other by those who use those articles.

I have, &c.,

JAMES A. PARTRIDGE.
[Page 120]
[Inclosure 1 in No. 274.]

A comparative table of the clearances of coffee from the ports of Rio de Janeiro and Santos during the crop-years of 1874–’75, 1873–’74, and 1872–’73.

The crop-year begins with July in each year, at which time the coffee gathered after June 24, generally begins to come to market. The clearances from Rio de Janeiro and Santos, for the twelve months then next succeeding, would not, of course, correspond exactly in quantities with the quantities received in the United States between those same dates, since coffee arriving in the United States July 1, and afterward had cleared at Rio de Janeiro about May 15, the voyage averaging 45 days.

rio de janeiro.

Months. United States, (excluding California.) Europe. Elsewhere.
1874–’75. 1873–’74. 1872–’73. 1874–’75. 1873–’74. 1872–’73. 1874–’75. 1873–’74. 1872–’73.
Bags of 60 kilos. Bags of 5 arrobas. Bags of 5 arrobas. Bags of 60 kilos. Bags of 5 arrobas. Bags of 5 arrobas. Bags of 60 kilos. Bags of 5 arrobas. Bags of 5 arrobas.
July 72,329 106,913 102,760 55,877 39,765 42,081 4,325 1,321 3,035
August 140,548 119,436 108,711 61,394 34,118 134,036 15,425 4,698 11,329
September 188,047 129,163 120,739 106,921 40,823 90,451 5,131 370 8,103
October 166,106 *44,081 136,208 177,899 10,626 113,232 15,312 982 3,892
November 149,297 113,385 158,797 131,996 57,680 94,268 3,145 6,808 7,388
December 222,329 99,367 124,395 110,469 47,991 62,992 9,271 7,343 4,333
January 188,596 90,611 102,736 79,217 70,222 85,048 7,790 1,999 4,512
February 87,786 98,977 91,761 77,523 68,819 48,867 6,221 3,774 1,796
March 158,272 67,251 85,082 96,056 87,404 86,555 9,024 6,272 8,237
April 110,464 97,149 99,082 130,759 37,977 75,016 6,479 6,533 858
May 95,741 40,231 55,661 126,255 18,687 128,341 9,190 7,058 6,982
June 204,074 72,352 94,166 98,651 36,786 103,924 4,542 11,012 1,303
Total 1,783,589 1,078,916 1,280,098 1,253,017 550,898 1,064,811 95,855 58,170 61,768
Or tons 105,434 77,065 91,436 74,070 39,350 76 058 5,666 4,155 4,412
[Page 121]

The clearances from Rio de Janeiro were divided as follows:

Crop-year, 1874–’75. Crop-year, 1873–’74. Crop-year, 1872–’73.
united states. New bags of 60 kilos, 132 lbs. Old bags of 5 arrobas, 160 lbs. Bags of 5 arrobas, 160 lbs.
New York 688,926 414,465 339,915
Baltimore 423,023 245,913 324,752
Boston 10,000 15,275
Hampton Roads, (for orders) 305,174 214,652 239,545
Sandy Hook, (for orders) 3,726 17,440
Philadelphia and Delaware Breakwater, (for orders) 3,000 3,000
Charleston 9,248 8,882 8,701
Richmond 11,400
Savannah 19,425 14,218 13,611
Mobile 49,450 31,103 64,666
New Orleans 202,354 103,503 147,063
Galveston 37,081 20,615 40,192
St. Thomas, (for orders) 27,508 3,564 21,213
San Francisco, Cal 396
Total bags 1,783,985 1,078,916 1,280,098
Or, in pounds 226,128,254 172,626,560 204,815,680
europe.
Channel, (for orders) 143,826 90,786 204,240
Harve 186,076 65,066 85,026
Antwerp 45,719 21,887 53,004
North of Europe and Baltic 245,949 87,781 200,142
Liverpool, London, and Southampton 221,303 59,593 113,792
Bordeaux 77,870 19,314 53,704
Lisbon, (for orders) 100,710 100,920 140,483
Portugal 4,360 3,884 1,811
Mediterranean 227,204 101,667 212,609
Total to Europe 1,253,017 550,898 1,064,811
elsewhere.
Cape of Good Hope and Port Elizabeth 65,096 29,075 37,192
River Plate and West Coast 30,759 29,095 24,576
Total 95,855 58,170 61,768
Total clearances from Rio de Janeiro to all countries 3,132,857 new bags, (or 185,193 tons.) 1,687,984 old bags, (or 120,570 tons.) 2,406,677 old bags, (or 171,905 tons.)
of which whole exports—
There went to the United States 100,950 tons, (or 54.3 per cent.) 77,065 tons, (or 63.9 per cent.) 43.505 tons 91,435 tons, (or 53.19 per cent.)
To other countries

Note.—Very high prices in Rio de Janeiro during the latter part of 1873 for coffee for Europe. Sudden fall in January and February, 1874.

santos.

Months. United States. Europe.
1874–’75. 1873–’74. 1872–’73. 1874–’75. 1873–’74. 1872–’73.
Bags of 60 kilos. Bags of 5 arrobas. Bags of 5 arrobas. Bags of 60 kilos. Bags of 5 arrobas. Bags of 5 arrobas.
July 9,660 4,572 14,218 80,876 13,844 8,579
August 12,715 17,421 37,497 15,525 2,726
September 6,627 4,951 22,093 11,352 8,617
October 11,530 5,048 9,332 52,703 6,733 26,194
November 10,765 4,000 36,396 32,348 8,590
December 12,169 6,165 2,268 51,015 39,637 34,729
January 4,000 22,701* 9,009 100,283 75,528 29,005
February 4,016 39,156 23,595 51,613
March 2,900 7,125 4,600 62,045 27,566 60,612
April 4,000 6,789 2,722 124,828 53,562 40,394
May 10,859 3,865 66,021 30,797 65,567
June 18,579 9,333 56,954 77,787 28,614
Total 79,569 98,072 64,298 729,867 408,274 365,240
Or tons 4,703 7,005 4,593 43,145 29,163 26,089
[Page 122]

The clearances from Santos were divided as follows:

Crop-year 1874–’75. Crop-year 1873–’74. Crop-year 1872–’73.
united sates.
Bags of 60 kilos. Bags of 5 arrobas. Bags of 5 arrobas.
New York 34,485 25,891 21,810
Baltimore 14,616
Boston 5,645
Hampton Roads, (for orders) 30,468 26,728 42,488
Saint Thomas, (for orders) 39,808
Total 79,569 98,072 64,298
europe.
Channel 263,856 122,926 123,087
Liverpool 4,866 7,364 18,260
London 40,941 598 3,414
Hamburg and Bremen 205,437 166,421 128,526
Antwerp 41 ,278 30,011 17,735
Havre 98,163 47,187 38,116
Bordeaux 46,098 33,454 13,200
Portugal 2,164
Mediterranean 27,064 313 21,433
Total 729,867 408,274 365,240
Total clearances from Santos to all countries 809,436 (or 47,848 tons.) 506,346 (or 36,168 tons.) 429,538 (or 30,681 tons.)
Of which— 4,700 tons. 7,005 tons. 4,593 tons.
To the United States 43,108 tons. 29,163 tons. 26,088 tons.
Or to United States about 8 per cent. 19 per cent. 15 per cent.

N. B.—This table does not comprehend coffee exported coastwise to ports in the empire. During the crop-year just ended the coastwise shipments of coffee from Santos amounted to 16,800 bags of 60 kilos., or 993 tons.

Note.—The steady increase of the crop and shipments from Santos, (in the province of Saint Paul’s.)

This is a better cleaned, whiter, and higher-priced coffee than that of Rio. It is sold frequently in the United States as Java or La Guayra. It goes chiefly to the north of Europe.

Totals Brazil coffee to all countries.

Crop-year 1874–’75. Crop-year 1873–’74. Crop-year 1872–’73.
Tons. Tons. Tons.
From Rio 185,193 120,570 171,905
From Santos 47,848 36,168 30,681
Total 233,041 156,738 202,586

The bottom figures show the whole (export) coffee-crop of Brazil for the years named.

Totals Brazil coffee to the United States.

1874–’75. 1873–’74. 1872–’73.
Pounds. Pounds. Pounds.
From Rio 226,128,254 172,626,560 204,815,680
From Santos 10,542,752 15,691,520 10,286,680
Total 236,671,006 188,318,080 215,102,360

The falling off of shipments of Brazil coffee to the United States during 1873–’74. (the year of the panic, September, 1873,) was not due to any lessened consumption in the United States, but to very high prices in Rio for Rio coffee, under an unexpected demand from Europe to supply what was short in crop from other countries.

[Page 123]

According to the returns of the United States custom-houses for 1873–’74 there were imported into the United States from all countries,

From July 1, 1872, to 1873 293,281,256 pounds of coffee;
From July 1, 1873, to 1874 295,271,697 pounds of coffee;
Showing an increase during the year of panic of 2,000,000 pounds 1,990,441 pounds, or nearly
The value of the former was £44,106,604
The value of 1873–’74 was 55,040,965
10,834,361

Or nearly $11,000,000 more paid in the United States for coffee during that year than during the year previous.

Note.—Of the whole import into the United States (of coffee) Brazil furnishes, generally, from 70 to 77 per cent.

Thus of the whole imports into the United States in 1872–’73 293,281,256 pounds,
Brazil sent 73 per cent., or 215,102,360 pounds.
Of the whole import in 1873–’74, (year of high prices) 295,271,697 pounds,
Brazil sent only 64 per cent., or 188,318,080 pounds.

In previous years, 1870–’71, 1871–’72, of the whole import of coffee into the United States Brazil has furnished as high as 76 and 77 per cent. This percentage falls off, as in 1873–’74, whenever the price of coffee in Rio, as in that year, goes above 16 or 17 cents. Whenever Rio coffee costs the consumer in the United States over 20 cents a pound, other coffees costing no more, or but little more, and of higher quality, take its place.

JOSEPH M. WEIGHT & CO.
[Inclosure 2 in No. 274.]

Table showing the customs-duty on coffee in the countries named.

Countries. Rate. Equal in U. S. currency to—
Per pound.
1. Great Britain 14 shillings per cent., (112 pounds) 80 03.04
2. France 150 francs per 100 kilograms Kilogram = 2,206 pounds 14. 29
3. Russia 1 rouble 50 kopecs per pood, (40 lbs): Rouble = 75 cents 2. 80
4. Germany. (empire) 5 thaler 25 groschen per centner. (101) Thaler = 74 cents
5. Austria-Hungary 8 florins per centner Florin = 48 cents 3. 84
6. Italy 52.5 centimes per kilogram 100 centimes = 95 cents 4. 75
7. Sweden 10 ore per pound
8. Norway 5 B. per pound 4⅓
9. Belgium 13.20 francs per kilogram 1. 15
10. Portugal 100 reis per kilogram 4. 92
11. Denmark 12 skillings per kilogram 3. 05
12. Holland Free Free.
13. Chili $1.15 per arroba of 25 pounds 4. 33
14. Argentine Republic 25 per cent. valuation fixed of $10
  1. This statement is from the monthly report of the chief of the Bureau of Statistics, (Treasury Department,) for June, 1874, and for the twelve months preceding included therein.
  2. The small shipment from Rio de Janeiro to United States in October, 1873, was in consequence of apprehension here (Rio de Janeiro) that the September panic (September, 1873) in the United States would lessen consumption, and sales be at a loss. These passed, and note the increase in November; the shipments were less in the following months (until January, 1874) because of the high prices in Rio de Janeiro, demand for Europe, and heavy shipments there. The price in Rio was very high in December, 1873, January and February, 1874—higher than known before—and there was a sudden fall in prices in Europe and the United States in March, and many houses suffered heavy losses. To all this succeeded the financial difficulties in Rio de Janeiro in May, 1875.
  3. During January, 1874, the price of coffee in the United States was higher than has been known for a long time; and this notwithstanding the September previous (1873) panic. Note the large exportation from Santos to United States (larger than before or since) in the month of January, 1874, in consequence and in hope of securing the very high price then in New York. It fell suddenly in February and March.