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THE COFFEE MARKET. 



The attention of coffee planters is directed to the fact that the 

 rate of exchange with Brazil has gone up in 9 months from July, 

 1904, to April, 1905, from I2d. to I/d per milreis. 



The result must be to increase the cost, reckoned in sterling 

 money, of growing coffee in Brazil. This would naturally make 

 it less easy to sell at low prices and tend to reduce production, 

 which again should enhance prices of coffee the world over. 



Planters in Jamaica should therefore extend the area of coffee 

 cultivation. Coffee planted now cannot come in for four or five 

 years, and by that time the increased consumption which has been 

 promoted by the long prevalence of low prices, added to the 

 possible, if not probable, diminution of supplies from South 

 America, may combine to make the crop once more a very 

 profitable one. At any rate it is not likely to be under any 

 greater disadvantage than at present, and it is not subject to great 

 loss by hurricanes. 



The following information on the subject will be read with 

 interest : — 



Mr. R. S. Gamble, to Director of Public Gardens and Plantations. 



Kingston Jamaica, nth August, 1905. 

 Sir, 



Referring to our recent conversation, I have now the pleasure 

 to enclose a statement prepared by Messrs. Gillespie, Bros. & Co., 

 New York, showing the statistical movement of coffee during the 

 last eleven years, including prices of " Rio No. 7" which is a 

 representative standard, and the Brazilian exchange. 



You will particularly observe that the world's consumption has 

 been steadily growing all the time, and is now 50 0/0 more than 

 it was in 1894-5. 



It will also be observed that the Brazilian exchange, which went 

 as low as 5-11/16 in 1898 is now somewhere about 17-3/18, and 

 that a high exchange has generally involved higher prices for 

 coffee, though this effect is not always immediate as it naturally 

 comes about by a decreased output from Brazil, which for a time 

 may depend on other considerations than mere cost of production. 

 The latter, however, is bound to tell eventually, and it is only 

 natural to suppose that the reduction in the Brazilian exports, which 

 has been continuous since 1901-2, will be forced further by the 

 advance in exchange. In 1904-5 it was about 33 per cent, less 

 than in 1901-2. 



This points to a more encouraging outlook for coffee, but it 

 remains to be seen if the advance will be gradual and safe or 

 unnaturally forced and but short-lived. As these are the months 

 when large deliveries are usual, let us hope that it may be 

 moderate and so fail to stimulate excessive further planting in Brazil. 



I also submit a copy of the latest market report from my New 

 York principals, which contains some interesting matter in this 

 connection. I am, etc., 



R. S. Gamble. 



