You will present the subject for the consideration of His Majesty’s
Government, according to your best judgment.
[Inclosure in No. 56.]
Crenshaw & Wisner and
others to Mr. Bayard.
New
York, March —, 1887.
(Received April 9.)
Sir: In compliance with your suggestion, made
to the committee who waited on you personally in February last,
regarding the proposed establishment of extensive flouring-mills in Rio
de Janeiro, they beg respectfully to submit the following facts for the
consideration of your Department:
I.
The Empire of Brazil is the largest foreign consumer on this hemisphere
of flour manufactured in the United States, ranking second only to the
United Kingdom, its imports for the last five years averaging about
700,000 barrels per annum.
II.
It is only by strenuous effort and the use of the most improved machinery
in manufacturing that this trade, giving employment to a very large
number of persons, has been held, in the lace of sharp competition from
Hungary and the South American States of Chili and the Argentine
Republic. Its loss would be disastrous, particularly to the great
milling interests of Richmond and Baltimore, which have for many years
chiefly supplied it.
III.
This industry is now threatened and imperiled by the formation of
companies with British capital of about £500,000 sterling, proposing to
build and operate large flouring mills in the city of Rio de Janeiro,
under concessions and privileges from the Brazilian Government, and with
the avowed design of keeping out the product of American manufacturers
from that country.
[Page 66]
IV.
This is only rendered possible by the fact that American flour pays an
import duty in Brazil of about 75 cents per barrel, while wheat is
practically admitted free, there being only a small custom-house charge
exacted on it. As the greater nearness of the wheat-growing countries,
Chili and the Argentine Republic, enables them to introduce wheat into
Brazil at a less cost than the United States, this discrimination
against the manufactured article, flour, threatens the loss by this
country of this important trade.
The prospectus of the English capitalists, proposing the erection of
mills in Rio de Janeiro, contemplates no benefit to Brazil or its
people, but very large profits, estimated at 25 or 30 per cent., to
their shareholders, predicated largely on the exclusion of American
flour by reason of the duty upon it.
V.
The average annual exports from this country to Brazil for the past five
years are in value about $6,000,000, of which flour has constituted
nearly one-half, and of the remainder lard, lumber, oil, and naval
stores are the chief articles in value. All these staple articles pay
heavy duties at their port of entry in Brazil, said duties having
recently been increased.
VI.
Our imports from Brazil, consisting chiefly of coffee, rubber, sugar, and
hides, average for the past five years about $60,000,000 in value, and
with the exception of sugar are admitted free of duty in the United
States, although paying a heavy export tax in Brazil.
The import duty on coffee, which was taken off by the United States, was
promptly reimposed as an export duty by Brazil, the result being merely
the diversion of that large revenue from the United States Treasury into
that of Brazil.
VII.
The exportation of flour to Brazil is chiefly carried on by American
vessels, a large number of which, known as “Rio traders,” are owned in
Baltimore, and have been employed for many years in this special
service, and bringing return cargoes of coffee. Depending mainly for
their outward cargo upon flour, of which the destruction of the Brazil
trade would deprive them, these vessels would become unprofitable and
comparatively valueless. The American line of steamers to Brazil would
be similarly affected, flour having also formed an important part of
their outward cargo, and there being no other article of sufficient bulk
and value as freight to compensate for its absence, the line conld
hardly be maintained, and most of the carrying trade would be done by
foreign vessels.
In view of the threatened loss by the United States of the largest
article of export to Brazil, and of the importance of that trade to the
manufacturing, commercial, and shipping interests of this country, the
foregoing statement is respectfully submitted, and your memoralists beg
for it the attention of your Department, and that representations be
made to the Brazilian Government looking to the removal of the
discrimination against flour which its existing import duty presents, or
such other action as may be deemed appropriate.
Appending a few statistics which partially indicate the proportions of
the commerce between this country and Brazil, we are, Mr. Secretary,
etc.,
Crenshaw & Wisner, and
others
.
