0 bags held by the
Sao Paulo government. Thus there was little reason to fear a coffee
shortage. That coffee should be permitted, with this large amount in
view, to run wild as to price, was certainly not the intention of the
food administrator, whose purpose was to keep foods moving to the United
States forces and allies, and as far as possible, to keep reasonable
prices for the United States consumers. Steadily advancing prices of
foods meant increasing cost of labor, general unrest, and a difficult
situation to meet at a period when the situation as a whole was most
critical.

Trouble for the coffee trade was imminent early in 1918, when the
shipping board, backed by experts, decided, or attempted to decide, that
coffee was not a food product; that no vessels could be had for its
transportation; and that it must be put on the list of prohibited or
restricted commodities. Mr. Hoover, however, insisted that coffee was a
very necessary essential, and that tonnage must be provided for an
amount sufficient at all times to keep the visible supply for the United
States up to at least 1,500,000 bags of Brazil coffee; and this figure
was ultimately accepted and carried out by the shipping board.

These figures, based on the deliveries of the two preceding years, and
with dealers limited to ninety days stock in the country, were deemed
ample to care for all requirements. It was figured that by November 1,
1918, the freight situation would be relieved to such an extent by the
new vessels building, that the amount could be increased should it be
found necessary. The food administration, through the war trade board,
offered steamer room to importers of record of the years 1916-17 at
$1.70 per bag. The first few vessels were promptly filled on a basis of
nine and one-quarter to nine and five-eighths cents, c. & f., for Santos
4s, well described. About the same time, our army and navy were able to
buy at eight to eight and three-eighths cents f.o.b. Santos, for
shipment by their own vessels. After the first few vessels offered by
the War Trade Board were filled, the trade became indifferent. The
warehouses in Brazil were loaded with stocks; vessels to carry coffee
were assured buyers at a fixed rate (profits limited); and, as there was
no apparent reason for an advance, buyers were willing to let the
producing countries carry the stock.

The last week in June brought very cold weather in Sao Paulo, and cables
reported heavy fros