Aug. 1, 1900.] 
THE TROPICLA AGRICULTURIST, 91 
THE TEA MARKET. 
ANNUAL REVIEW. 
38, Mincing Lane, June, 1900. 
The issue by tha London Brokeis' Association of 
statistics for the twelve months ending Slst May brings 
an opportunity of looking into the position and pros- 
pects of tea, and of trying to find out wh;it light the 
past season throws upon the future. 
The task is rsndersd difficult by the unusual events 
which have occurred to disturb the regular course 
of biisiuess and to place the figures relating to con- 
sumption in a position which makes them for a time 
of little value for the purpose of comparison with 
statistics of previous years. 
At the beginning the position was a strong one. 
The increased use of Indian tea during 1898-9J had 
reduced stocks to a low point ; had raised prices for 
both Ceylon and Indian to a \e\el which promised 
well for growers; and had male it evident that 
larger supplies could be taken here, and were 
necessary in order to sati-;fy the demands of other 
markets, For reasons connected with the nature of 
the competition among distributors, which we ex- 
plained at the time, prospects were then espscially 
good for planters v/ho couid secure heavy crops at 
a low cost price, and for those who could produce 
tea of fine quality. These prospects have for ths 
most part been realiz3d ; but results hive been very 
irregular, and the unequal distribution of the good 
profit attaching to the production of tea has caused 
embarrassment, and disappointment to many who 
have been accustomed to rely upon the security 
pf an average yield of good medium quality. 
The hope of an active business at the outset was 
deferred by the dispute arising from the proposal to 
do away with the 1 lb. draft. A settlement based 
upon a compromise was agreed upon, but when this 
was found not to be acceptable to all concerned. 
Her Majesty's Customs declined to carry it out in 
face of the objections raised. 
A new and more eqnitable method of 
WEIGHING THE CHESTS 
has however, at length been adopted, which 
should to some extent lessen the loss in weight sus- 
tained by Importers. It is a difficult matter to reconcile 
conflicting interests when touching customs of trade, 
especially when, as in this case, they have the pre- 
scription of nearly a century's usage, being based 
upon the " East India Conditions " prevailing in the 
days of the old Company. 
The friction caused by the dispute subsided, but 
business was interrupted and a counter-combination was 
organised by the buyers. To meet this, concerted 
action on the part of the Indian Importers followed, 
in order to control the quantity brought to Auction 
—while the Ceylon Importers, having to I'eal with a 
crop arriving all the year round, preferred to go on- 
selling as before. 
Opinions differ whether the regulation of the 
INDIAN AUCTIONS 
has been beneficial. It was probably instrn 
mental in maintaining quotations for common teas, 
notwithstanding the great increase in their production 
;vhich is held by some to account for the decline 
in the value of good medium grades— but it has not been 
altogether agreeable to those who had to keep back 
tea that it was inexpedient to hold. We doubt, how- 
ever, if the average value of the crop has been affected, 
for subject to variation in quality this must always 
depend upon the rplation which the total supply bears 
to the total requirement, and not upon mecha- 
nical arrangements governing a week's or a month's 
sales. 
When free supplies were eventually brought to sale 
the usual active autumn trade developed, marked by 
the high prices paid for a while for fine tea, »ud by 
the anomaly of declining prices for good medium kinds 
whilst common sorts were rising above the level of 
last season. Later on came the unfortunate catas- 
trophe in Darjoeling; the signs that production, stimu- 
12 
lated by the high price of common tea, was exceed- • 
ing estimates; and the sharp advance in the Bank 
rate — affecting the stability ol ihe market. 
In January and February the large purchases 
made by those who anticipated an increased duty 
enabled importers to sell freely though prices were 
gradually weakening: but they had not sold enough 
when the premature announcement of the BuJget 
brought business to a standstill. The incidents con- 
nected with the Budget are too. recent lo need re- 
capitulation, bayond recordiug th.it the strain upon the 
Trade's resources entailed by the clearance of some 
40 million lb. in advance of requirements left th<5m un- 
ready buyers and was. followed by changes in price 
adverse to holders. 
Some time may pass before the effect of the 
ADVANCE IN DUTY 
becomes clear. The fall in the valii^ of in- 
ferior kinds since the Budget i-^ a ii itural 
result of superabundant supply, and has, we think, 
no connection with the higher duty, which would be 
more likely to increase tiie dem.ind for s cheaper 
sorts if, as we fear may be thf; case, distributors 
find that owing to the advance in the retail quota- 
tions their sale of low-priced teas increases at the 
expense of those of higher value. 
It is so difficult to find a reason for taxing to 
the extent of 7.5 per cent of its value a product of 
Biitioh industry now regarded as a necessary of life 
to the working classes, that reduction of the tax will 
naturally be expected when the emergency is past ; 
we must, therefore, be prepared for interesting if 
somewhat restless markets in the future before each 
successive Budget day. 
In the meantime we do not fear any serious reduc- - 
tion in the quantity actually used here, because tea - 
ls such a cheap and wholesom^^ beverage, — but hand- 
to-mouth trading will be more than ever the retailers' 
policy, and may cause some shrinkage in the quantity 
cleared. The range of value will depend upon the 
character and dimension of the crops. It will be 
well if they are of somewhat hig'aer class than the 
last crops, for if the supplies show a large inci-ease two 
years in succession, failing the attraction of better 
quality, lower prices will be needed to draw buyers 
and stimulate trade. It must not be forgotten that 
every producing country has increased its contribu- 
bution to the world's requirements -the total increase 
being more than 50 million lb. — and ttiat no market 
is now likely to be short of stock, 
Writing a year ago we intimated that we could use 
a total of 275 million lb. Had our importations been 
confined to that or a little more, producers would 
have done extremely well, notwit'astaoding high rates 
of exchange and freight ; but 300 millions have been 
sent (weighing in Lindou 9,93 millions), an increase 
of 32 millions upon last season's supply, which has 
proved to be more than the market could absorb 
without a reduction in the average value. 
It is not certain to what extent 
HOME CONSUMPTION 
has expanded during the year, the increased 
clearances since 1st January being misleading. 
Taking the Board of Trade retutns, as the most 
complete, it is seen that from 1st .Tune to Slst 
December there was an increase of four million 
pounds in the quantity duty paid, being at the rate of 
about seven millions per annum ; but during that 
time common teas were so dear th^t retailers were 
working on the smallest stocks possible, we, there, 
fore, think that the increase may have been as much 
as ten million pounds during the year, an opinion 
to which the very prosperous condition of trade and 
industry lends support. On this assumption, had 
nothing occurred to disturb the figures we should 
now be recording that about 278 or 280 millions had 
been used at home or sent abroad, and that in place 
of the inadequate stocks held a year ago we had now in 
hand only the supplies necessary for working a trade of 
the large dimensions now reached. 
Believing this to be a reasonable estimate of the 
position, we cgutemplate with composure a total itn- 
