Bage, &c.

Bags, &c. Total packages received at New-York

Total packages received at New-York in 1885,.... 3,341,719 in 1884,

3, 136,200 Add stock, January 1, 1885,.. 545,598 Add stock, January 1, 1884,.

440,175 Total supply,.. 3,887,317 Total supply,

3,576,373 Deduct exports, .

212,355
Deduct exports,

100,099 And stock, January 1, 1886,.. 541.955

And stock, January 1, 1885, .. 385,436 7754,310

545,535 Taken for consumption in 1885, 3,133,007 Taken for consumption in 1884,.. 3,030,840 Weighing,.... .tons, 176,901 Weighing, ......

tons, 170,221 Consumption of 1884,. 170,221 Consumption in 1883,

162,711 Decrease in 1885,.. ...tons, 6,680 Increase in 1884,.. .......tons, 7,510

GENERAL STATEMENT FOR THE YEARS 1884-'85-'86.

AT NEW-YORK,...
AT BOSTON-FROM
Brazil,

50 Hayti, &c..

681 England, Zanzibar,

Africa, &c., 12,259
AT PHILADELPHIA :
West Indies,

172 East Indies,

365
AT BALTIMORE :
Brazil.

326,547
West Indies,
AT NEW ORLEANS :
Brazil,..

*

Packages.

Packages. Receipts in United States in 1885,... 4,314,993 Receipts in United States in 1884,... 4,037,102 Add stock, January 1, 1885,.. 716,525 Add stock, January 1, 1884,..

494,009 Total supply, 5,031,518 Total supply,....

4,531,111 Deduct exports in 1885,. 212,919

Deduct exports in 1884,..... 160,619 And stock, January 1, 1886, 699,813

And stock, January 1, 1883, 443,587 912.732

604,206 Taken for consumption in 1885, 4,118,786 Taken for consumption in 1882,. 3,926,905 Weighing, tons, 285,357 Weighing,....

.tons, 223,502 Consumption in 1884,. 223,502 Consumption in 1883,

202,903 Decrease in 1883, .. tons, 11,855 Increase in 1884, .......tons, 20,599

RECAPITULATION.

66

66

66

66

Stock at all Ports, 18 January, 1887.

Stock at all Ports, 1st January, 1886. At New-York, of Brazil,.... bags, 225,871 At New York, of Brazil,. bags, 366,146 of Maracaibo,

14,123
of Maracaibo,

34,793 of Laguayra,

969
of Laguayra,

2,037 of Mexican,

1,686
of Mexican,

8,183 of Savanilla,

6,747
of Savanilla,...

2,235 of Central America,... 702

of Central America,... 451 of Angostura,

67
of Porto Rico,

324 of Java,...

5,000
of Jamaica,

862 of Macassar,.....mats, 28,100

of Angostura,

3,300 of Sumatra,

57,000

of Singapore,

.mats,
of Java,

20,100
of Java, ..

7,850 of Sumatra,

61,604 Total at New York, pkgs. 360,365

of Ceylon,.... ...pkgs. 568 At Baltimore,..

33,514
of African,..

402 New Orleans,

23,916
of Macassar,

53,200 Other ports,

Total at New-York,.. .pkgs. 541,955
Total,...

.pkgs. 417,795
At Baltimore-Brazil, &c.

92,623 Total weight, ..

..tons, 21,242

New Orleans-Brazil, &c.,... 51,337 Stock, January 1, 1886,..

37.500

Other ports--Brazil, &c.,..... 13,898 Decrease in stock,.......tons, 16,258

Total,

.pkgs. 699,813 Total weight,

..tons, 37,500 Stock, January 1, 1885,..

39,285 Decrease in stock, .......tons,

1,785

CONSUMPTION OF COFFEE IN THE PRINCIPAL PORTS OF THE UNITED STATES.

1882.

1885. 175,828 20,387 31,000

5 468

1884. 169,755 16,930 26,843

TAKEN FROM 1886. New-York,....tons, 188,406 New-Orleans,....... 22,362 Baltimore,

22,654 Philadelphia,..

31 Boston,

1883. 161,977 12,417 15,210

162,715 13,659 24,770

8 496

426

966

In the foregoing statement of consumption we have included only the direct receipts at the ports, the coastroise receipts being embraced in the calculation at ihe port of original entry.

The annexed statement shows the receipts and consumption of the country for the past ten years : Receipts. Consumption.

Receipte. Consumption. 1886, ...tons, 235, 267 240,275 1881,......tons, 205,354 185,297 1885, 247,307 235,357 1880,

176,581 169,416 1884, 230,369 223,502 1879.

198,010 179,241 1883, 228,063 202,903 1878,

147,030 142.372 1882,.... 221,630 211,241 1877,

152,327 135,906

ANNUAL REVIEW OF THE COFFEE TRADE OF TIIE UNITED STATES.

The year 1836 has proved a phenomenal one for the coffee trade of the world, and in many respects the events which go to make up its history will occupy a prominent place in the records of the past. In more ways than one it has proved a succession of surprises, and has been a singular exemplification of the familiar French proverb, that “it is the unexpected that happens." With the exception of 1882, it has witnessed the lowest prices for a long series of years, with an advance from this point that has been phenomenal, the value of fair Rio having very nearly doubled in a little over seven months. Furthermore, this advance bas been the result of natural causes, which a majority of those engaged in the trade failed to appreciate or recognize at their full value until their recognition had become a necessity from the actual conditions of supply and demand. During the first four months of the year the trade of the world was virtually on the bear side, the estimates of a heavy crop in Brazil foreshadowing a yield for the 1886–87 crop of 8,000,000 bags, which created the impression that a deluge of supplies was surely on its way. The early flowering of the trees in 1885, and again in February, 1886, was said to be quite unprecedented, and these prognostications were accepted and acted upon, resulting in a steady depression of values until fair Rio sold in this market down to 8} cents, good average Santos in Havre declined to f. 45.25, and good ordinary Java in Holland sold at 251 cents. The fact that Europe had been steadily using up her surplus stocks was unheeded, for the same course was being pursued in every consuming market, the belief having become general that supplies would eventually be replenished upon a much lower basis of values. With this condition of affairs existing, came a sudden advance in Exchange in Brazil, as the result of a heavy loan contracted in Europe by the Brazilian Government, which increased the cost of importation and put a further check upon the buying operations of both Europe and the United States. Values, however, began to advance from this cause alone, for the believers in coffee comprised but a small contingent of those engaged in the trade, and this advance in Exchange was put down as "a lucky windfall for the bulls.”

a

Intimations were given out, however, that previous estimates of the crop were likely to prove over-sanguine, and the conviction slowly gained ground that the crop would not yield over six million bags. Public sentiment began to change, and with the prospect of a smaller crop in Brazil the shrinkage of stocks in Europe attracted more attention. The friends of coffee became more numerous, the trade found that no money was being made on the bear side of the market, that the tide of prosperity was steadily making in favor of those acting under the inspiration of bullish views. Europe appeared to be foremost in appreciating the situation, and the United States was forced to follow, although somewhat reluctantly. The new crop in Brazil came to market slowly, buyers held off, anxiously awaiting a more favorable opportunity to replenish their stocks, but the market kept advancing so unexpectedly that cach week prolonged the disappointment. The trade was absolutely living from band-to-mouth, but meanwhile speculation became active both here and in Europe. In August fair Rio had advanced to 10 cents, and in September to 11. The statistical position was so favorable, owing to the moderate receipts in Rio and the unwillingness to buy freely, that higher prices seemed inevitable. A temporary pause, however, took place during October with a slight reaction, but the poor flowering of the next crop was now foreshadowed, and this gave a fresh stimulus to the upward movement, and again Europe led the way, with a reluctant response from this side. That the growing crop had received serious injury soon became an accepted fact, and with early estimates that its yield was estimated at about 4,000,000 bags, the necessary impetus was given that sent the price of fair Rio up to 145 cents, with every prospect that 15 cents would be reached within a short time after the new year bad commenced, a prediction that has been fulfilled, sales baving been made since January 1st as high as 151 cents.

Another prominent feature of the trade during the year under review bas been the active speculation that has been in progress. This has been of two kinds: first, the exclusive trading in options by operators who have had no idea of receiving or delivering under these contracts, but have indulged in speculation so pure and simple that it might easily be denominated gambling; and second, there has been the buying and selling of options as against actual stock. This more legitimate side of the option market has been freely used by jobbers as well as importers to protect their stocks, and the frequent and, at times, wide fluctuations in values have increased the dealings of this character. There has been also present a syndicate of capital, chiefly foreign, that until within a short time has been avowedly operating upon the bull side, and the influence of the combination has been one of the most potent factors in the upward movement of values throughout the whole year. Furthermore, a Rio syndicate commenced operations just before the close of the year, impressed, no doubt, with the belief that a short crop in Brazil during the coming season was a sure precursor of higher prices that offered a temporary opportunity for retrieving the for

tunes of the last Rio syndicate that several years ago attempted a similar venture.

The extent to which the volume of speculations increased may be gathered from the following figures, taken from the annual report of the manager of the Exchange : The total transactions for the year aggregated 10,006,000 bags, against 5,536,000 in 1885 and 7,374,750 in 1884, an increase last year of nearly one hundred per cent. Transfer notices were issued during the year for 645,750 bags, against 245,750 in 1885.

With Exchange trading so important a factor in the market, it may be readily gathered that the Exchange has really been the arbiter of values. The market for actual supplies bas at times been influenced by local supply and demand, the wants of the distributive trade and the preponderance or scarcity of desirable goods, but the basis upon which values have been fixed has been the price that a seller could obtain or that a buyer was obliged to pay upon the floor of the Exchange,

The fact that there has been active speculation in Europe has had a tendency to draw the New-York and Havre markets into closer relations than ever before, and between the two a close bond of sympathy has necessarily existed. As a result a good deal of arbitrage business has been transacted between these markets whenever the opportunity offered.

That the year has been a prosperous one for the coffee trade need hardly be pointed out after the foregoing remarks, for prices have advanced so steadily and persistently that it has been comparatively easy to secure a good profit, especially by those who have kept on the bull side of the market.

Supply.—The total importations for the year at the Atlantic and Gulf ports are 12,040 tons less than in 1885, but the stock brought over from that year was 16,258 tons greater than the surplus at the close of 1886. The chief source of supply is the Empire of Brazil, about 78 per cent. of the total importations coming from there, and the United States absorbing nearly 57 per cent. of the entire product. As the crop begins and ends July 1st, the receipts of the calendar year are drawn from the yield of two crops, which in this case comprises the latter half of the 1885–86 crop and the first half of the 1886-87 crop. During the first half of the calendar year 1886, purchases were in some measure restricted by the conservative views of buyers in view of the supposed heavy yield of the succeeding crop, while during the latter half, the steady upward movement of prices, together with the slow way in which supplies were brought io market, resulted in stocks being replenished in the same conservative method. The receipts of all kinds of Brazil amounted to 2,702,819 bags, against 3,180,343 the year previous and 2,787,111 in 1881. Rio is the chief shipping port to this country, since it drains the largest producing provinces ; Santos ranks next, but about two-thirds of its exports are taken by Europe, and within the past year the shipments from the port of Victoria in the province of Espirito Santos have largely increased, the receipts from that