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Show creasing each year, and the finer grades from the East Indies may go up next, said a coffeeman. "The cause is this, the Brazilian planter was selling his coffee at a price which left him no profit because of the overproduction in that country. This eventually meant that other lines of industry would be followed, the coffee industry neglected and fall off in importance. "The Brazilian government two years ago borrowed $150,000,-000, $150,000,-000, took over tho coffee crops of the planters at market prices, clapped a half-cent export duty upon coffee, and after selling to foreign nations at an advance and extracting the cost of handling the product, turned the surplus back to the planters. "The export duty goes to pay tho interest on the $160,000,000 debt. At the time this action was taken the government stopped the establishment of new coffee plantations or setting out of new coffee trees. The government immediately limited the allowance of coffee to each country. This country was limited the first year to 9,000,000 bags, whereas it needs about 18,000,000 bags. The coffee dealers had a surplus on hand, and got through the year with that. This year the allowance to this country was 10,500,000 bags. The government govern-ment put an extra 20 per cent export duty upon all coffee over this limit, and as a result there has been a scramble by the biggest coffee concerns of this country to get in on the 10,500,000 allowance. allow-ance. One of the largest concerns, it is said, took $1,500,000 worth of coffee in order to make a windfall. "The result of the Brazilian government's action will be to cut the production of coffee, while the demand for it is increasing. It takes five years to raise a crop of coffee. The trees, if set out this year will not bear until 1915. That is why the situation is so serious No one knows how long the prohibition against setting out new trees in Brazil will last. The East Indies may increase their production." COFFEE IS GOING UP. The Brazilian government has gone into the coffee business to protect its planters, and, as a result, consumers of other nations must pay more for this most popular of drinks. In America, the coffee drinking nation, coffee has doubled in cost. Owing to keen competition, jobbers say, the price to the consumer during the present pre-sent year has been held down, but a jump in the price may be expected ex-pected very soon. Whether this wilt be great enough to affect the price of a cup of rostaurant coffee and force it to 10 cents is somewhat some-what speculative, but it will increase the prico in the American home. Coffee dealers say the situation is extremely serious. Brazilian coffees are the only ones affected, but the demand for coffee is in- |