DUTY ON TEA 105 



would be abundant and the price low ; that is, 

 the producer would pay the duty. .To farmers 

 sending wheat to Great Britain this would mean 

 the difference between a high price for a moderate 

 crop and a lower price for a great crop, on so 

 much as Great Britain imports of that crop. 



The retailer is mentioned rather than the con- 

 sumer, because the price of British wheat is not 

 an index of the price of bread to the consumer. 

 In May 1909 British wheat was nearly 42 shillings 

 the quarter, in October 1909 about 31 shillings, 

 and in July 1910 about 33 shillings. In May 1909 

 bread sold, in the South of England, at 6lci. the 

 quartern, in October 1909 at 6d., and in July 1910 

 at 5|<f., at which price it was still sold in Febru- 

 ary 191 1, though in London 6^d. was quoted. 



On the articles of the third grade a revenue is 

 raised. Tea is an example. The bulk of the tea 

 imported by Great Britain comes from British 

 India and Ceylon. The duty is s^- the pound. 

 Tea is put on the steamer at Colombo at ^\d. the 

 pound on an average. Dividends paid vary, but 

 about 12^ per cent, seems a fair allowance on 

 most estates. A third more than this is supposed 

 to be made as profit, but kept back for improve- 

 ments to the plantations, machinery, and so forth. 

 Therefore the value of the tea free on board 

 comes to about 4^(/. the pound. Freight is a very 

 small item on a pound of tea, so that, allowing 

 for all expenses and plantation profits, there 

 cannot well have been more than sixpence the 

 pound paid out on the tea when it comes under 

 the hammer. 



