You probably expect to see a green berry or bean at this time but they are still covered with a parchment-like skin. When they are finally dried this parchment skin is removed by passing the beans through heavy rollers, and the chaff is cleared away by machine work similar to that used for similar processes in wheat threshing and cleaning. By a continuous process the beans are passed through machines which husk, fan, polish and sort them according to sizes. The berries are now a light olive-green colour. The little round beans are classed as “Mocha” and another size as “Java,” etc. The various grades are then sacked in coarse sacks, labelled with the name of the fazenda and the grade, and shipped to Rio de Janeiro, or Santos, where the great commission houses are located.
The commission houses are important institutions and practically own many of the fazendas through advance loans, and the planter is helpless against charges that are oftentimes excessive. In the warehouses the coffee is all emptied out in great piles, and repacked in new sacks, often being regraded by the commissionaires. The planter is burdened with a great number of expenses. The net price to him the past year was only a little over four cents per pound. Among these expenses the following is a fair list as taken from an official publication, and verified to me by a leading planter: transportation to the railroad station, transportation to Santos, municipal export tax, resacking charges, shipping old sacks back, brokers’ commission (should be three per cent., but is in fact much higher), a special tax of $1.00 per sack and an ad valorem export tax of nine per cent., and a number of other minor charges. In the end it is the commission man who has the smallest amount of work and least risk, who makes the big money at the present price of coffee. It used to be when the planter received ten to twelve cents per pound for his coffee that the fazendero rolled in wealth, and no extravagance or luxury was beyond him. At the present time only those who have the latest improved machinery, so that the cost of preparation is reduced to a minimum, are making much money. A rise or fall of a cent per pound often means prosperity to the coffee producer or the reverse. The price to-day is not more than one-third of what it was a number of years ago. It is probably quite possible to simplify the cultivation of coffee trees so that there would be a considerable margin of profit at the present prices. One progressive planter looks after forty thousand trees with one man, four mules and two machines of a recent pattern, according to a report that I saw.
The steady decrease in the price of coffee during several years led to a new departure in economics, by the three great coffee producing states of Brazil. A sack of coffee (one hundred and thirty-two pounds), which in 1895 was worth almost $20.00 in Europe, had fallen to $8.00 in 1905. The coffee planters were almost in despair over this low price, which threatened to spell ruin for many of them within a short time. Among themselves they had attempted various measures, but all of them had failed. An attempt had been made as early as 1901, by the state of São Paulo, to remedy this situation, by a practically prohibitive tax upon new plantations, allowing each planter to set out each year only five per cent. of what he already possessed. This would not much more than replace the natural decay. This order was originally made for a period of five years, but has since been continued for another period of the same length.
This measure failed to bring about the desired result. Finally, when the crop of 1906-7 promised to be such an unusual crop, the planters appealed to the government for further relief. The state was equally interested, since by far the greatest part of the revenue of the state, and the various municipalities as well, is derived from its tax upon coffee, and they were afraid that the planters would become panicky and abandon coffee cultivation. Because of this alarm the governments of the three states of Rio de Janeiro, Minas Geraes and São Paulo entered into an agreement, known as the Taubaté Agreement, by which these states, acting through São Paulo, agreed to buy up on the market the surplus production and store it until such time as, in the judgment of the commissioners, conditions warranted its sale.
This judgment was based upon the observation that coffee trees exhaust themselves by such an extraordinary crop, and yield only average crops for the next two or three years. They figured that by that time the natural increase in the consumption would give a market for this coffee. Further, it was known that coffee improves, rather than deteriorates, with age. A special export tax of $0.60 to $1.00 per sack was established at the ports of Rio and Santos, and the government of São Paulo was authorized to borrow not to exceed $45,000,000 to raise a fund to purchase the coffee, each of the three states jointly binding themselves in the obligation. As a result of this agreement that state purchased eight million sacks of coffee in the market, and these were stored in a number of central points in Europe, as well as in New York. Money was borrowed at comparatively high rates. Both the state obligation was given and the stored coffee pledged as collateral security. At that time it was estimated that there would be, including the new crop, a surplus stock of fourteen million sacks of coffee, representing almost one year’s consumption.
The result of this action of the coffee producing states has not been what was expected. The price has not increased as was predicted, and the interest and other expenses have been a great drain upon revenues. Another part of the scheme was to limit the exportations from the country; nine million sacks being fixed for the year 1908, nine million five hundred thousand for the year 1909, and ten million for the following years. All coffee exported above that amount would be subject to an additional tax which made it prohibitive. Furthermore, the crops were rather larger than was expected, so that the surplus stock had not appreciatively decreased. In the winter of 1909-10, the time of my visit, there was a movement on foot, which gained a great many adherents, to arbitrarily destroy ten per cent. of the previous season’s crop, but this was not done. Within four months after the new crop came in, the limit allowed for export had been reached, and the export trade was at a standstill. It was a new attempt to get around the law of supply and demand. The final result of this attempt is as yet problematical, and remains to be seen. It was a bold and original effort that has many defenders, and many critics as well, right among the Brazilian people.
If not the best, the Brazilians make one of the best cups of coffee in the world. Never have I tasted such delicious coffee as I did almost all over that republic. The Brazilians understand fully the art of preparing this delicious beverage, and make it fit for kings and queens. They generally choose a coffee berry at least two years old, as they say that age improves the aroma. Some even say that five or six years’ storage in a dry place is still better. Another essential, they say, is to roast and grind the coffee fresh every day. The roasting process is very thorough, for it is roasted until the average American housewife would call it burned. The black roasted coffee is reduced to a fine powder, and then placed in a woollen bag through which hot water is poured. It is never allowed to boil, so that their coffee is rather a percolation than an extraction. I am not a cook, but I do know that the coffee as prepared by the Brazilians is delicious, and seems to be free from the harmful effects. In the morning it is served in about equal proportions with hot milk, but at all other times clear. Little dainty cups of black coffee with plenty of damp sugar are always served at social calls, at nearly all public offices and in many other places where one visits. In fact, if you called on a Brazilian family, and coffee or some other refreshment were not served, you would almost be justified in believing that your call was not especially welcome. I drank coffee many times, and at all hours, when offered, and often feared the consequences, but never felt the slightest ill effect.