exceptional opportunity of developing a trade which 
would compete on advantageous terms against other 
exp jrting countries, having mainly gold currencies. 
As an inducement to capatilists Mr. Reinhold shows 
th-it Government might advantageously move in the 
matter, and by associating itself, with a Syndicate of 
Merchants and Zemindars, and making exhaustive* 
demonstrative experiments on a commercial scale, 
prove the adaptability of the Indian soil and climate 
f >r producing a first rate tobacco equal to competing 
with the best in the markets ot the world. Mr. 
Beinhold gives statistics to show how the price of 
tobicco has been maintained iu the face of the 
shrinkage in value of Coffee, Sugar, Tea, Wheat, 
O'tron, Si'k, Flax, Wool, and Inctigo : and bases on 
this some portion of his argument on the commercial 
advantages which would follow the development of a 
trade iu this product. 
In an appendix a carefully compi ed estimate is 
given, taken ptiucipally from the reports of District 
Officers written when Government was making 
inquiries on the subject of Tobacco cultivation. The 
estimate shows the expenditure which would be 
incurred in cultivating and curing the tobacco off 
2,000 acres of land, under European supervision. 
The paper will be discussed at the next meeting. 
THE INDIAN TEA INDUSTEY. 
There are probably few British Industries of equal 
magnitude to that of which this article treats which 
attract so little attention from the public, and the 
reasons are not far to seek. Its operations have been 
conducted at a distance, and mainly by private enter- 
prize. Few large concerns have come to the public 
for capital, and of these some have had a career 
which has not favorably impressed the public with tea 
companies : while, owing to the small number of shares 
floating in the market, and the wide margin made 
for them in the Stock Exchange quotations, buyers 
and sellers have been hindered from operating. The 
time is possibly at hand when this class of investment 
will receive more general attention (1) on account of 
the present prosperity of the industry, and the grow- 
ing popularity of Indian and Ceylon tea with the 
home trade: (2) from the recuperative power shown 
by estates whose future at one time seemed doubt- 
ful ; through the high return upon the capital yielded, 
which will be shown by many companies whose re- 
ports will shortly be published, and this, too, in a 
year when the price of tea in the London market 
has fallen to a lower level than has hitherto been 
touched. 
A few figures illustrate the growth of the industry : 
In 1876 the import was 29,5000,000 lbs., in 1881 it was 
45.750,000 lbs., and in 1886 it reached 76,500,000 lbs. 
The consumption for the corresponding years was 
26,750,000 lbs., 48,750,000 lbs., and 08,500,000 lbs., while 
duiing the current season ending May 31 the import 
will reach 78,000,000 lbs., and the consumption from 
75,U00,O00 lbs. to 76,000,000 lbs. The feature, however, 
which arrests attention is the proportion of Indian 
and Ceylon tea taken from home consumption which 
during the past four months has risen to 50 per 
cent, of the whole as against 30 per cent, in 1881 
and 17 per cent, in 1870. Indian tea, as a matter 
Of fact, is slowly but surely ous'tng its _ rival and 
obtaining command of the market. This has not 
been achieved without a lowering of price to compete 
with the cheaper rates at which China tea sells; but 
the reduction has been slow, the average value of 
Indian tea in L mdoti being about Is. ljd. per lb. This, 
linivever has been anticipated, and has been met by 
ft cons'.' lerable reduction of the cost of production 
effected (1) by consolidation of estates; (2) increased 
use of machinery ; (8) by more scientific methods of 
cultivation Mid manufacture, through which finer and 
larger yields are secured, India, indeed, having 
* Th-it the experiments would be ealwustive — 
mi tin? hoil) — there can be no doubt. Immense areas 
which would grow grain and roots for human food are 
niined by tybacco culture.— Kt). 
always beaten Ohina in quality, now competes in price, 
most estates laying down their crops well under Is. 
per lb. in London, and some under 8d. per lb., while 
it is admitted that a further reduction in cost is 
practicable. 
Among the companies known to the London market 
the largest is the Assam Company, which has 7,710 
acres under plant, an annual yield of 2,500,000 lbs. 
to 2,750,000 lbs., and which has paid dividends aver- 
aging over 16 per cent, during the last 10 years of its 
working. The next in extent is the Land Mortgage 
Bank of India, owniDg about 7,600 acres of bearing 
plant, with an annual production of about 2,000,000 
lbs., upon which a profit of £'28,000 was made 
last season ending May 1886, and which will be a 
valuable property to the shareholders The Jorehaut 
Company follows with 4,360 acres, known as 
producing some of the finest tea grown in Assam, 
and with a dividend record of 12| per cent, in 1884, 
15 per cent, in 1885, and 15 per cent, in 1886, 
while for the current season a very satisfactory 
financial statement will shortly be issued, Among 
other successful companies accessible to the investor 
are the Darjeeling, the Borelli, the Lebong, the 
Jhanzie Association, and the Scottish Assam Com- 
pany ; while as a specimen of the recuperative power 
alluded to we may mention the Luckimpore Company, 
respecting which a good report is shortly expected, and 
the Upper Assam Company, now, through careful 
management, earning large annual profits on its crop. 
It is difficult to estimate the average return upon 
the 40,000,000 or 50,000,000 sterling invested, owing to 
the large proportion of estates iu private hands, but 
the best proof that it is a substantial one is that of 
late years only one company of any size has come for 
capital to the London market. The following table, 
prepared from the latest published accounts, gives a 
fair index to the general position of the industry. 
The figures selected; as affording the best guide to 
investors, are the capital per acre, yield per acre, 
average of prices obtained for the tea during the past 
three or four seasons, and the cost of production during 
the last year (1885-6) for which accounts have been 
issued i — 
Company. 
about about 
Assam Co. ... £ 24 340 
Laud Mortgage Bk. ... 
Jorehaut Co. 
Brahmapootra Co. ... 
British Indian Co. ... 
Doom Dooma Co. ... 
Darjeeling Co. 
Jharjzie Assn. 
Lebong Co. 
Borelli Co. 
Luckimpore Co. 
Borokai Co. 
Tiphook Co. 
Scottish Assam Co. ... 
From these figures it appears that those compan* 
ies with a low capital per acre of plant, or those 
noted for the high character of their produce, are in 
a strong position, and should prosper even if the 
competition with other producing countries thould 
still further reduce the price of tea. In the annual 
reports, due in June, some will show a higher price 
obtained, many of them a lower cost of production, 
and the majority of them a return of from 6 per cent, 
to 9 tier cent, to the invester at present, share values. 
We have spoken of a possible lowering of the price of 
tea by competition of producing couutries, of which 
Ceylon and China are the chief. As regards Ceylon, 
its increased consumption is probably effected at tin 
