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a little ; the world's visible supply on July 1, 1904, was 12,361,000 
bags, almost a year's requirements ; and another crop ready to 
pick. Then came the record-breaking crop of 1906-7, and pro- 
duction was increased to 6,241,000 bags over consumption in 
one year. When they were expecting a 15,000,000 bag crop, 
they found they had 24,000,000 bags to market — Brazil's crop 
alone this year being 19,500,000 bags. In December, 1907, 
prices being still low, the American Consul-General at Rio de 
Janeiro wrote home: "Perhaps even now it would be an actual 
saving of money to the backers of the coffee syndicate, certainly 
to the planters, and to every one but the consumers, if this im- 
mense store of coffee were burned or thrown into the sea." 
(There were then some 8,000,000 bags in the hands of the syn- 
dicate, and another bumper crop in Brazil threatened.) ''Al- 
though the Sao Paulo government had placed very heavy taxes 
on the extension of coffee plantations, and it is frequently said 
this will curtail the size of future crops, the effect is almost 
certain to prove otherwise," he said. A little later, the govern- 
ment of Brazil seriously proposed that the law then pending for 
a surtax on coffee shipped out of the country should be changed, 
and instead of taking a tax payable in money, the government 
should take one-tenth of the coffee, load it on barges, take it out 
to sea and sink it. Only the fear of criticism throughout the 
world prevented this wanton destruction of coffee. This was 
actually agreed to at a meeting of the committee representing 
the holders of the coffee in London April 26, 1909. 
But many factors conspired to interfere with the success of 
the scheme. A new government was coming into office in Brazil. 
What would its attitude be? Continued overproduction was 
threatened. Prices were still low. It seemed that those who had 
predicted failure were to have their predictions realized. Some- 
thing had to be done to interest further loans. At this date the 
Saturday Evening Post published the following: ''Dispatches 
announce the utter collapse of the coffee 'corner,' at a loss to 
the Brazilian government of $15,000,000." 
But it was not to be. When the scheme had been in operation 
two years, it did not look promising, and Sao Paulo discovered 
she had more than she could carry. Brazil now came to the 
rescue of the four States which had originally undertaken to 
corner the crop alone, and in December, 1908, a new agreement 
was entered into. A new loan of 15,000,000 pounds sterling was 
made, the government of Brazil now guaranteeing principal and 
interest, and the bonds were issued for the amount. One-third 
of the bonds were taken in London, one-third in Paris, $10,- 
000,000 in New York, and the balance went to the money cen- 
ters of Europe. A committee of seven was named to handle the 
coffee, six by the firms that furnished the money, and one by 
the Brazilian government. The coffee was to be shipped to the 
