smaller prospective crops and the real inadequacy of present supplies, but without avail. Recent heavy losses by outside speculators have discouraged fresh operations, and hence the general dullness that has characterized trade throughout the year. Primarily this has been due to the conviction that Brazil was once more returning to a period of large crops, and the proportions of the present crop would appear to abundantly bear out the plausibility of such a belief.

The great increase in the yield of the current crop is found wholly in the State of San Paulo, the receipts at Rio having continued on about the same scale for the past few years and showing but slight variations.

The rate of foreign exchange in Brazil has undergone but moderate fluctuations during the year under review. Beginning in January at 163d, there was a gradual advance to 171d. in February, and then a downward tendency until in April the lowest point was reached, 14 d. The remainder of the year the fluctuations were quite irregular, 17d. being the highest in July and 15d. the lowest in December. The plan of valorization included the regulation of the rate of exchange by the National Government, and hence the slight fluctuations since the operation of the new law.

The retail distribution of supplies is chiefly of package or roasted coffee, a few large roasters in this and Western cities monopolizing a large proportion of the trade, and their trade marks or brands have become as familiar as household words, but, in addition, there are a multitude of small roasters, each with their separate brands and blends which are made attractive to buyers by the offering of premiums with each package, which, no doubt, has its influence in stimulating consumption of the cheaper grades.

New York continues to be the chief coffee port, by far the largest importations being entered here, while New Orleans, which within a few years has become next in importance, continues to hold its advantage, the receipts for the year 1906 having been the largest in its history, aggregating over seventeen hundred and fifty thousand bags. The increasing shipments to this port have been attracted thither by the advantageous through freight rates offered on consignments to the South and Middle West by the Illinois Central Railroad, that has a terminal in that city. Baltimore has practically lost its coffee trade, the importations having been reduced to insignificant proportions.

There has been a moderate falling off in the trading of options. owing to the general dullness of trade and the absence of any important speculative movement. The total sales amounted to 18,112,500 bags, compared with 21,242,250 bags the year previous, a falling off of about three million bags. Transferable notices were issued for 1,076,750 bags and margins were deposited to the amount of $16,101,745. The highest prices for futures was recorded in February, when January delivery sold at 7.95 cents, and the lowest in December when the same delivery sold at 5.20 cents. The following table gives the transactions in options on the Exchange for the past two years:

Supply. The importations of Brazil coffee for the year 1906 are a trifle smaller than the previous year, owing to the liquidation of large stocks held on speculative account and their distribution from warehouse. The total receipts of Brazil coffee amounted to 5,129,549 bags, compared with 5,358,988 bags in 1905, while the importations of mild grades amounted to 1,333,450 bags, compared with 1,234,905 bags in 1905. Thus while the total importations aggregate about six and one-half million bags, Brazil furnishes a little more than five million bags, and the remaining quantity consists of the product of Venezuela, Central America, Mexico and the East Indies. Only trifling quantities have been received from the Hawaiian Islands and Porto Rico. The following comparison of the world's visible supply on the 1st of January, 1907, with that of the corresponding date of 1906, gives a comprehensive view of the relative condition of the supply at that time:

Consumption. There has been a moderate increase in consump tion compared with 1905, the total quantity used up, according to the table on page 24, being 6,931,686 bags, or 410,047 tons, compared with 6,122,524 bags, or 373,330 tons, a gain of 36,667 tons, or 9.63 per cent. Although the importations were less than the previous year over 500,000 bags was taken from the stock in warehouse, beside which there was a falling off in the quantity exported of about 180,000 bags. The increase in apparent consumption is

due chiefly to the continued large addition to the population by immigration as well as to the continued prosperity that has prevailed throughout our land. The warehouse deilveries in Europe likewise showed a moderate increase compared with the previous year, the total excess being about five hundred thousand bags. The following table gives the actual warehouse deliveries for the past eight years:

Crop Prospects.-Reports of the condition, probable yield and quality of growing crops is the important factor in shaping the course of trade in all agricultural products and this is specially true with reference to coffee. It is the keynote in foreshadowing the relations of supply and demand, and hence reliable information of this character is not only eagerly sought for but when obtained is quickly reflected in the general course of trade. Notwithstanding the many facilities that exist in Brazil for obtaining reliable and accurate information of the maturing as well as the growing crops, it is extremely difficult to find an authority that is absolutely trustworthy, and whose reports and estimates are borne out by actual results. Reports there are in abundance, but so much in conflict that it is next to impossible to determine the difference between truth and fiction, and their multiplicity only adds to the confusion. The crop year is counted from July 1st to June 30th, and hence, in reviewing the crop supplies for each calendar year, it is necessary to consider two crop years, while a third crop year is involved in the prospective supply. The crop of 1905-1906, from which supplies were received during the first six months of 1906, proved to be a ten and one-quarter million crop, which was the estimate given in the previous volume of this report. The receipts. at the chief shipping ports were as follows, with comparisons for previous years:

Crop of 1906-1907.-The marketing of this crop commenced July 1st, 1906, and hence the second half of the year under review was supplied from its yield. The estimates at that time generally foreshadowed a large yield, but it was scarcely expected that it would reach the proportions that are now all but a certainty, and that makes it the greatest crop ever produced in Brazil. During

the first six months of this crop the most discouraging reports as to its condition were received, and it was claimed that estimates were much exaggerated and receipts would soon fall off, but the stuff kept on coming to the seaboard, and on the 1st of May, 1907, they aggregated 17,442,000 bags with two more months of the crop year still remaining, so that a eighteen and one-half million crop is assured.

Crop of 1907-1908.-The supply from this crop will come upon the market, July 1st, 1907. As to its probable yield there appears to be some conflict of opinion. Some are inclined to predict twelve million bags, while others are conservative enough to claim that the crop will not exceed ten million bags, because the bearing capacity of the trees has been weakened by the supply just marketed.

Prices. The following table gives the highest and lowest for each month of No. 7 Brazil, Exchange Standard. During the first three months the market ruled fairly steady with only narrow fluctuations, but in April an easier tendency prevailed, which continued through June. During July and August a slight advance was established and quotations were as high as 83 cents, but from that time forward to the close of the year the tendency was towards a lower level, and the final quotation was seven cents, or a loss of one cent and a half from the opening price in January.

RANGE OF PRICES OF BRAZIL COFFEE, No. 7 EXCHANGE STANDARD, IN THE NEW YORK MARKET DURING THE YEARS 1905 AND 1906.

REVIEW OF THE TEA TRADE OF THE UNITED STATES,

FOR THE YEAR 1906.

GENERAL STATEMENT.

RECEIPTS AT ALL THE PORTS FOR THE YEAR 1906 AND THE PREVIOUS THREE YEARS.

ANNUAL REVIEW OF THE TEA TRADE OF THE UNITED STATES.

THE moderate volume of the general distributive demand that characterized trade during the year 1905 continued with scarcely any variation through the year under review, and it would seem as though dealers had accumulated an over-supply during the hostilities between Russia and Japan, and therefore purchased only in a most sparing way until these stocks had been absorbed. The result was that although the position of the supply was, from a statistical point of view, all that could be desired, the market generally was unusually dull from the beginning to the close of the year, and buying was for the most part of a hand-to-mouth character. This was more especially the case when the possibility of further hostilities in the East as well as of the imposition of a duty became wholly eliminated as a probable factor in shaping the course of trade, and throughout the country dealers could not be induced to stock up in excess of their actual requirements.

The table of receipts given above shows that the total importations for the calendar year were 7,341,388 pounds less than the previous year, the falling off being most marked in the direct receipts from China and Japan, while those from India and the reshipments from Great Britain show a moderate increase. The

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