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Coffee in Retrospect: "U.S. to Exchange Wheat for Coffee"

Ed's Note: Coffee in Retrospect is a column prepared by Coffee Monitor and Poor Farmer blog to provide context for the current global coffee trade by republishing news articles from the past. In this column, we intend to reprint archived prints by converting images into electronic file formats with careful conformity to originals and, whenever applicable and possible, we provide links to the sources of the information. Meanwhile, responsibility for the contents lies solely with the authors and the views expressed in the articles do not necessarily reflect our opinions.
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U.S. TO EXCHANGE WHEAT FOR COFFEE

Agreement With Brazil Signed by Farm Board Official


Aug 22, 1931

Washington, August 21 - Two nations oppressed by excessive agricultural production today sought a partial solution of a mutual problem by the simple expedient of exchanging portions of their surplus crops.

An agreement was signed under which 25,000,000 bushels of Farm Board wheat will be bartered for 1,050,000 bags of coffee held by the Brazilian Government.

Just as a huge surplus of wheat has accumulated in the United States a tremendous supply of coffee has piled up in the South American country.

The wheat which is to be exchanged was bought by the Farm Board's Grain Stabilization Corporation in the open market as part of a plan for maintaining wheat prices at a level which would return a profit to the farmer. The Brazilian coffee involved was acquired by that Government in similar effort to assist the planters.

The agreement was signed at the Brazilian Embassy by Ambassador Do Lima and George S. Milnor, president of the Stabilization Corporation, concluding negotiations quietly conducted for several months.

The Farm Board has been hard pressed to find markets for the 200,000,000 bushels of wheat acquired in its stabilization operations. Yesterday it authorized negotiations with the Chinese Government for the sale of 15,000,000 bushels of wheat for relief of flood sufferers in the Yangtze Valley.

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Importers Are Alarmed

New York, August 21 - Some concern over the announcement from Washington of the proposed exchange of Brazilian coffee and Farm Board surplus wheat was shown by New York coffee importers today.

The Green Coffee Association of New York City, representing a majority of the metropolitan coffee importers, has called a meeting for next Monday or Tuesday to consider the situation.

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