Show CORNER GORNER IN COFFEE GOFfEE Ai 1 f fIS IS FINALLY BROKEN Brazil Brazi Abandons Costly Costy Effort Efort f to Control Worlds World's Trade MILLIONS ARE SQUANDERED Surplus Would Knock Prices Way Down Dow If Unloaded at Present Now New York Oct Oct- Oct I- I After ACer After h having sustained n a loss of or Brazil tho abandoned inv J Its ts attempt to corner w worlds world's s coffeo market market For two years ears the tho government o of Sao P Paulo ulo tho chief state Io of oC Brazil tins hns been n purchasing coffee coffeo from Its planters rs with wih the avowed Intention Is of ot keeping up toe the price now after aCer ha havIng haying hay hav- Ing and having on its Is nanda ianda bags of coffee coffeo the Valorization scheme as ns as tho at attempted attempted at- at tempted corner was called called is Is cled-Is Is to bo be definitely renounced At the he same samo time according to a advices ad ad- vices received toda today from Crom abroad a loan of which had been negotiated u for some time to hat take cake ac cas care Ul ui mo Lit present nU nuge e accumulation Is la to be bc offered for Cor public tion cr n Tho TiRO end of ot this attempted corner ends w.-mt w. is regarded d as ono ane of or tho h most interesting but foolhardy than finan financial i cial experiments ever attempted Tho The valorization scheme had Its Ia origin ln or six siz SiM years oars ago aKO when an enormous Brazilian Bra Dra- lan coffee crop sont sent prices down don violently vie vio 10 to a a pound In the tho New York market actually below tho the cost of ot production Prohibited Tree Tee Planting tn Sno Sao Paulo Immediately Imposed a n i tax to prevent the plantIng planting plant plant- ing lug of or new trees but tills tiis had no ef effect of- of feet on crops as 8 tho the coffee coffeo coree plant does docs not begin to produce marketable berries berries herries ber her ries for five Clo years cars and does docs not reach roach I full Cul maturity until It i Is ten years rears old Bumper Dumper crops followed one another and In 1905 tho the was genuinely Alarmed when the harvest returned bags a surplus over tho the on- on tire Ure worlds world's requirements requirement of ot something something some some- thing like bags It I was wa then that the tle scheme of or cornering the tho market markot markot mar mar- kot ket was planned ruce states of at Brazil Sao o Sao Paulo Rio and Minus Minas et act out to restore the price I of at coffee to Its 11 old profitable level Besides Imposing ImposinG a largo large surtax on exports the states began buying with wih I borrowed mone money all al cot cot- fee In two years Sao Soo Paulo had haJ purI purchased purchased pur pur- chased from the tho planters no less than bags bas at an nn avera average e cost of ot I 10 no 0 a ba bag was moro more than double the tho ruling market price price Spent Money Ione Recklessly I I IThe The money thus recklessly had been secured at home In the United States Germany German and elsewhere at a high cost coat Now No that It I h has all al been leen used In valorizing coffee tse se vanous various various vari van ous loans loons are to bo be consolidated into I one one Undisguised satisfaction was manifest mani mani- test feet In the coffee coree tra trade e over tho the endot end of ot the corner conner but tho question Queston most often oren asked was what is to become of ot the tho bags The foreign reports state that the they benefit of ot ore are to be bo for tor the tue tho the purchasers of the new bonds but local merchants desire particularly to know lenow whether they will wil be sold or nd nold Indefinitely A sudden unloading of bugs bags on the Uie market would doubtless have disastrous results prices which are aro now flOW around Re and ant pound might experience a violent violent vio yb- 5 She c a lent decline However However- such a contingency con con- Is not expected |