American Copra Taxes

Letter to the Editor.

TIEGARDING your article, “Baffling Copra Market,” in your issue of July 23, I think you are confusing the American Processing Tax, instituted by the powers delegated under the Agricultural Adjust ment Act (which delegated powers have since been held to be ultra vires) and the Excise Tax on Oils, Fats and Oilseeds which was included in the Revenue Bill of 1934.

The validity of these latter taxes has never been in question.

I am, etc.,

H. M. F. Faure.

Leadenhall Street, London. September 10, 1935.

EDITORIAL NOTE: In the article referred to, we had commented upon the remarkable puzzle presented by the copra market. The world statistical position, and market students of emin e?ce ’, SU( as Mr. Faure, indicated that prices Should rise, whereas prices remained low. We suggested, as one contributing factor, the imposts

placed on copra imports by America, which had the effect of turning Philippines supplies away from the U.S.A. to the European market, and de pressing the latter. It is obvious, on re-reading our article, that we did confuse the two sets of taxes, as suggested by Mr. Faure. However, the effect was the same: Philippines copra was thrown on to the sick European market.

Incidentally, the position has changed consider ably since the article was written. Copra prices have improved steadily, and the critics and prophets have been justified.

Mr. George Brett, who has large coco nut plantation interests in Eastern Papua, returned to Samarai by the Macdhui from Sydney in October.