COMPETITIVE CONDITIONS IN SOUTH AMERICAN TRADE. 189
of varjous kinds could and should be handled by any organization
taking up the trade in salmon. Concerted action by coal operators
could do much to increase the exports of American coal to the east
coast, and a cooperative organization of Portland-cement manufacturers
 should materially increase the sales of American Portland
cement in South America, where the individual manufacturer must
meet the vigorous competition of the strong alliance of British cement
manufacturers.

SECTION 8. COMBINATION OF PRODUCERS IN SOUTH AMERICA.

In certain important South American industries the producers
have formed effective combinations for the control of output and
prices. Of especial interest in this connection are the coffee valorization
 arrangement in Brazil, the quebracho combination in Argentina,
the iodine combination in Chile, and the cacao agreement in Ecuador.
The United States is a heavy consumer of Brazilian coffee, Argentine
quebracho (used in tanning), Chilean iodine, and Ecuadorian cacao.
The combination of the producers of each of these commodities is the
result of their attempt to take advantage of a great natural resource,
largely peculiar to their own country, and through combined effort
to secure the maximum return for their product in the markets of the
world.
THE CACAO ASSOCIATION.

Cacao is the name for the bean from which both cocoa and chocolate
 are manufactured. Ecuador and the Dominican Republic are
the chief sources of cacao supply. The exports of cacao from Ecuador
normally constitute from three-fourths to four-fifths of the total
value of that country’s -exports. This single commodity is its
chief product and its chief export. The United States annually
imports large quantities of cacao, cocoa, and chocolate, approximating
 $20,000,000 in value.
The prosperity of Ecuador is largely dependent on that of the cacao
growers. The latter in 19M formed an association, which was approved
 by the President of Ecuador on January 25, 1913, to unite
their interests against speculators, to maintain more profitable prices,
and to promote the consumption and production of cacao. For this
purpose it is authorized to enter into agreements with associations of
producers in other countries. The organization has the support of
the Government and is semiofficial in character to the extent that it
is permitted to collect a tax of 1 sucre (48 cents) per 100 pounds
exported.
The association does not attempt to handle all the sales or exports
of cacao, but in periods of low prices uses its funds, credit, and authoritv
 to obtain and hold off the market the excess supplies of cacao. It