282- 
THE TROPICAL AGRICULTURIST. [Oct. 1, 1898. 
panics now pay dividends of 8 to l"2i per 
cent,, and such liij^li dit^tiilmtions ought to 
iiiiply great caution on the part of their directors. 
It was only \ty bein;,' caiitiou« in tlii.s respect 
during tlie f)ast tliat dividends at present 
rates are possible, and we liave sehloni come 
across a board of directors whicli, wlicn all 
the pros and cons are taken into consideration, 
deliberately vote for an unnecessaiy reduction 
in dividend. And if one board were so dis- 
posed, tiie feeling of terror is not likely to have 
had a deterrent effect upon those in control of 
half-a-dozen of the best-managed concerns in 
the industry. 
Takini; into account the attitude of boards of 
companies that have witnesseil the ups and 
downs of Indian tea-growing fot twenty or 
thirty years and the general position of aft'airs, 
we fear that tea companies in general have yet 
many anxieties to go through. Pret^uniably 
there will be no loss in the near fulure froni 
another earthquake, and as harvests have been 
bountiful this year, the companies ought not to 
lose much from cost of rice, ahho\igli this will 
be a little dearer than the a\erage, and of 
course the coolies ought to work better this 
season than last. On the other liand, the ex- 
change will iirobably be screwed further up 
against the i)lanter, for wha.ever the Currency 
Committee may agree upon, its deliberations 
are not likely to interfere with the determina- 
tion of the bureaueracy to force and keep the 
rupee up at all costs. Then the ellects of over- 
production, whic'i were not exi)eriecced to any 
material extent last year, are bound to be moie 
pronounced this, so that we should not be 
surprised if the year works out with a further 
decline in the average price of tea in spite 
of the reduction in the crop estimates recently 
cabled. On the whole, therefore, the current 
twelve months is not likely to produce much 
improvement in profits, althotigli the exceptional 
loss in rice will be almost eliminated. 
Present conditions are working towards good in 
the end, for, barring a few flagrant exceptions, 
where companies are carrying the whole cost of 
extensions and their upkeep to capital account, 
the policy of expansion has well-nigh stopped. 
Then, the sudden rise in working expenses, caused 
by the advance in exchange, must lead to erono- 
niies in management, and we do not sujjpose that 
exchange can rise much above Is. 4d. per rupee, 
the now ideal standard. The industry has been 
in an unhealthy condition through the " boom " 
which was partly the result of the decline in 
exchange, and the present period of adversity- 
due to the propped rupee more than aught else — 
will bring it back to a sounder liuaucial state. 
The preposterously capitalised companies of this 
time of iiiilation have yet to exhibit tiieir true 
character, and when such concerns as the Con- 
solidated Tea and Lands, the Lungla, and the 
Amalgamated Estates have been put thoroughly 
to the proof, and their dangerous policy of 
extending and maintaining extensions entirely 
out of capital has proved to be bad for all con- 
cerned, there may be reason to expect that 
soundly-managed properties will see an improve- 
ment in their profits ; but until this policy of 
extension blindfold is stopped there can be no 
.safety for the industry from the attacks of 
unscrujiulous company promoters. 
We have not entered into the question of the 
danger of a revival of Chinese tea-growing. It 
must not, however, be forgotten that the rise 
in the Indian exchange liae placed the planler 
there at a disadvantage of 30 per cent, compnred 
with his Chinese competitor. The difference in 
can ency indeed shows 50 percent, of a handicap, 
but a considerable proportion of the expense hw 
to be met by both Indian and Cliine(*e plantein 
in gold. Improvement in treatment is also being 
applied to Cliina teas, and uudouutedly such teas 
on the whole .seem far less injurious to the human 
constitution than those of India or even Ceylon. 
But taste goes for a great deal, and we believe 
it is impossible to grow tea in China to any 
extent posseusing the distinction and now (Kjpular 
qualities of Indian tea. So long as this proves 
to be the case tliere is little danger of Cliina 
teas regaining their lost ground. To endeavour 
to replace a strongly astringent au<l highly- 
flavoured article by one less pronounceil, 
when once the former has become acceptable 
to people's tOHtes, is no light task, and so we 
think there need not be any immediate fear» of 
a return to the milder leaf of China. At the 
same time, an improvement in China tea« will 
render further attempts to dislotlge that article 
from its own niarkets all the more dilliculi, and 
upon s.ich di.sIodgment in the near future from 
the markets of Kussia and America the British tea 
planter in India and Ceylon has placed a great 
deal of hope. From various aspects, therefore, 
the prospect is not without cloud*. —/utf-rtor*" 
liicicw, Aug. 20. 
CAKDAMOMS-CHENAS -AND TOBACCO. 
(from a Planter ) 
I think the Cardamom crop generally in this 
North- Eastern district will be .short this year. We 
had too little rain in August. We are now getting 
•flight showers every day, a-id still from the S.-W. 
At present the villagers are busy Chena fell- 
ing. These lands round here contain a lot of 
young .satin, liora, mililla and otirer valuable 
woods. It is a pity Government does not con- 
serve them, and besides it is hopeless to expect 
the ordinary Kandyan to improve generally and 
be more industrious as long as he is given a 
free hand to indulge yearly in this ruinous 
system of cultivation. 
The planting of Tobacco— principally by Moors 
and Tamils— is largely on the increase round 
Teldeniya. Jaffna merchants come here and ))uy 
it very often in its green state. These traders 
like the planters feel the want of a telegraph 
station at Teldeniya very much. 
Prospects.— Much dissatisfaction I hear 
— says the Calcutta correspondent of Piwiecr — is 
expressed among tea garden shareholders at the 
present low prices obtaining for tea in the Cal- 
cutta auction room, and in view of the strou" 
position of tea as shown by the London August 
figtires, there is evidently some cause for com- 
plaint. While imports to London of .all de.scrip- 
tions— Indian, Ceylon .and China— amount to 
practically the same weight as in 1897 and 1896, 
deliveries to consumers are 2 million lb. more 
in 189S than in the two previous years while 
stocks held are 3 millions less than in 1897 and 
nearly o millions under 1896 figures. Stocks in 
London have not been so low ;is they are now 
for many years. Direct shipments to London will 
probably be made by garden proprietors in pre- 
ference to selling here, and no doubt this is the 
proiier course to follow until buyers are able to 
make up their minds to pay fair prices. 
