CONCLUSION. 289 



loss that induces the banks or the Chinamen to support those who 

 would otherwise be obliged to relinquish the trade. The Chinese 

 have also a further inducement to support such firms, since it is partly 

 through them that those high prices are established in China at the 

 opening of the season which entail so much loss afterwards. As a 

 result of these prices, about 30 per cent, more fine Congou is produced 

 than (on account of the competition of the Indian growth) can be con-, 

 sumed except at the price of medium Tea. How large the excess is 

 may be gathered from the fact that, although 5,000,000 Ibs. of this 

 class of Tea was lost last July in the ' Moskwa ' and the ' Fleurs 

 Castle,' yet stocks in Russia have increased by about 30,000 half- 

 chests, and there is still so large a quantity on this market that it can 

 only be realized at a loss of from 5^. to 6d. per Ib. on the China cost ; 

 thus some Teas, said to have cost in Hankow is. 8d. to is. gd., have 

 been recently sold as low as is. 3^., and others costing is. yd. in 

 Foochow, have been sold at is. id. per Ib. 



" It is evident from the above that merchants as a rule do not realize 

 the immense change that has been brought about in the conditions ot 

 the trade by the enormous increase in the use of Indian Tea, which 

 now forms about one-third of the entire home consumption, and com- 

 petes mostly with the finer qualities of China congou ; nor the fact 

 that all engaged in the trade are becoming year by year more averse 

 to holding stock on account of the heavy charges involved, and the 

 risk of deterioration in quality. Yet, as the whole twelve months' 

 supply of first crop Tea arrives within three months of the opening o 

 the season, it is plain that some one must hold the balance, which can 

 only be done with safety if the Tea be bought at a very low price. 



" The one remedy for the present condition of things is that the 

 great bulk of the so-called fine Teas should be bought in China at their 

 present value on this market viz., at about $d. to 6d. below the prices 

 given for them in recent years. With the large accumulated stocks in 

 Russia, and consequently reduced orders from that country, the yearly- 

 increasing supply of Indian Tea, and the present prices here, one would 

 think that such a course would at once be adopted. Unfortunatelv, 

 however, so much of the Tea is bought on commission, and the 

 Russian agents seem so reckless as to the prices which they give, that 

 any such prudent action can hardly be hoped for. It would, therefore, 

 be wise for holders of shares in Eastern banks, as well as all who have 

 been in the habit of intrusting orders to buying agents in China, to 



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