No. 64.
Mr. Partridge to Mr. Fish.

No. 221.]

Sir: Referring to my No. 218 (by the last packet) in relation to the probable effect here of the proposed re-establishment in the United States of the duty on coffee, I have the honor to transmit hereto annexed a translation of a note I received from the Viscount de Caravellas in relation thereto, in which he expresses the hope that the exemption of coffee from any duty will be maintained; and copy of my reply thereto, in which I have stated that in case Congress should deem proper to re-impose a duty on tea and coffee, it would be done because of the necessity of additional revenue, and not at all by way of retaliation on Brazil for not having abolished or sufficiently reduced her import-dues on articles of American production.

I am, &c.,

JAMES R. PARTRIDGE.
[Inclosure 1 in No. 221—Translation.]

Viscount de Caravellas to Mr. Partridge.

To His Excellency James R. Partridge, &c.:

The minister of finance has called my attention to the statement lately appearing in the papers, that the Government of the United States intended to re-establish the duty, and a heavier one, as it seems, than before, on coffee, from which it was taken oft not long ago.

The conversations we have had on this important matter had left me with the conviction that you, entertaining liberal views, had expressed the wish that the productions of your own country should not be heavily charged here, as was natural, and would therefore (admit) recognize that the American Government should continue to Brazilian coffee the exemption it now enjoys from any duty.

There is no necessity, therefore, that I should enlarge upon the subject, and I am sure you will do all in your power to promote the commercial relations between the two countries.

I embrace with pleasure the opportunity to renew to you the assurances of the cordial esteem with which I remain your excellency’s most obedient, humble servant,

VISCOUNT DE CARAVELLAS.
[Inclosure 2 in No. 221.]

Mr. Partridge to Viscount de Caravellas.

To His Excellency the Viscount de Caravellas:

In reply to your excellency’s note of the 21st instant, in relation to the duty said to be proposed in the United States on coffee, I beg to say that I have yet received no information in regard thereto other than what has been sent by telegraph. It is not, therefore, possible for me to give you any reliable information. I may state, however, that in view of the diminished receipts into the Federal Treasury during the past year, in consequence of the financial crisis of September, 1873,1 think it extremely probable that the President may have recommended to Congress the propriety of restoring a portion, at least, of the duty on tea and coffee; both of which have been entirely exempt since July, 1872.

Since additional revenue must be had, it would seem to be only just and proper that such articles of universal consumption should bear some portion of the general charge. In case such a duty should be imposed by the Congress, (which is, however, quite [Page 103] uncertain,) it could not be regarded or be at all designed as in any way retaliatory, or as directed in any way against the productions of any country. It would be simply a measure of necessity, intended for a time, designed to be but temporary, and to be relieved as soon as the necessity should disappear.

I need not remind your excellency that the policy of the United, State3 in respect to duties on foreign products has been, so far as Brazil is concerned, one of the greatest liberality. Before 1862, coffee was free of all duty; and in consequence of the necessities of our civil war, a moderate duty was first imposed, which, when increased, did not exceed 5 cents, or 95 reis, the pound. This was again reduced, at the first opportunity, to 3 cents a pound, and this last has been entirely abolished since 1st July, 1872. When it is remembered that in every other country—I believe without exception— coffee is charged with a duty varying from the very moderate one which existed in the United States, up to the very heavy rate now exacted in France, it will be seen that in the United States, even under the pressure of necessity, the tariff has been one of extreme liberality toward Brazil. Your excellency may be assured that such policy and desire continue in the United States, and that if a duty shall be imposed on coffee, it would be moderate, probably far below any rate elsewhere exacted, and would, from its necessity, be only temporary.

Your excellency rightly states the interest which both of us have felt and expressed in regard to the further development of the commercial relations between the two countries; I trust that the disposition shown in this respect, and the progress already secured under it by the imperial government, will continue, and lead to still further extension. This empire, under the present enlightened administration, has made great advances in this direction, and has been able to reduce many duties which restrained commercial activity. The United States have pursued the same course, and they have not only reduced, but have actually abolished—prematurely, as it now seems—the duty on some articles, which, without being so much charged as to lessen consumption ought rightly to bear some portion of the general burden. Should it be found indispensable in the United States to restore the duty on some such articles, now unduly exempt, I am persuaded that the imperial government will see in this measure only a necessity imposed on the Government of the United States by circumstances fortuitous, temporary, and probably beyond its control. And as the duty on coffee, established at first under such pressure, was quickly reduced when the necessity lessened, and was wholly abolished when it was thought to have passed away, so it will be now, in all probability, a temporary measure of relief, to be withdrawn when no longer required. You will be able, I trust, by these considerations to convince his excellency the Viscount do Rio Branco that this measure, recommended, as it is said, by the President, will be, if adopted by the Congress, in the first place, a duty of moderate amount, probably much below that exacted in other countries; secondly, that, far from diminishing or being intended to diminish the consumption, it will have only the effect of giving a moderate but indispensable revenue; and lastly, that from both these results it cannot, to any appreciable extent, work injury to Brazilian interests, or tend to diminish the commercial activity between the two most important nations on this continent. I embrace the opportunity to renew the assurances of the esteem and consideration with which I remain,

Your excellency’s obedient servant,

JAMES R. PARTRIDGE.