Sept. 2, 1901.] THE TKOPIOAL 
To the Editor. 
MK. COOKE'S RESERVE TEA SCHEME : 
A REPLY TO "PATIENCi-.' 
August 3rd. 
DfeAR Sir,— A clergyman's wife once heard her 
husband using very strong language; he was out of 
sight behind a hedge, and she called to him 
"Patience, dear John, Patience," andhehowled back 
" Would you have patience with your foot in a 
man-trap ?" 
It does not remain for me to say why simple 
reduction would be fatal. Many Brokers and 
writers on tea say that any deficiency of supply 
from ourselves or even an excessive rise in prices 
of our teas would drive the Blenders to take China 
and Japan Tea. 
In order that prices can be forced up, we have 
to limit the supply to our present markets to the 
actual requirements of our Buyers, that is to say, 
leaving them only a fair margin of profit between 
purchase and sale price, a certain addition to prices 
can be made to the customer without reducing 
consumption. 
If we can manage to get a half-penny out of 
the consumer, and the average price of tea is 18 
pence — this half -penny is l-36th of the price of the 
tea; it cannot be expected that by raising the price 
l-3Gth the same proportion of reduced con- 
sumption will necessarily be made. My idea is 
that by regulating supplies we shall be able to get 
one penny out of the buyers and dealers without 
reducing their profits too much, and a further 
half-penny or quarter-penny out of the consumers 
without reducing the consumption to any marked 
egree. 
As long as we can keep within these limits no 
China tea will be imported to fill up the vacuum. 
The reduction scheme proposed to leave the 
leaf on the bushes, and if this were actually 
doue where would the supply for new markets be 
obtained ? 
My scheme permits of a supply for this purpose, 
but the cost of manufacture has to be considered, 
and this would be obtained from a Cess of two pies 
per pound. 
The grower having paid two pies on his whole 
crop would be tlaat amount out of pocket, 
unless his action resulted in raising prices by 
two pies. 
Then he would have paid two and a halt annas 
for making the reserved tea, but, as this would 
be paid for out of the Cess, he would be repaid 
out of his own money, and would still be two 
pies per pound out ot pocket. But when there- 
serve tea had been sold and two and a half annas 
refunded to him he would be exactly in the 
same position as regards expenditure of money, 
as if he had allowed the leaf to stay on the bushes. 
"Patience" says that I have made no suggestion 
fo stimulating demand. If I have not, I will 
now say that it stands to reason that good 
average tea, placed in the hands of new dealers, 
is more likely to create a rapid demand than 
aro present system. 
The buyers reserve all our good teaforstimu- 
Iting the demand of their customers ; they are 
ontinually able to give better quality for the 
ame price; but they send on\y scouring s (tea 
hey don't want) to new markets. 
86 
AGRICULTURIST. m 
I argue that averasre Indian tea put into circu- 
lation on the outskirts of our present demand 
will prove of better effect than offscourings 
offered at a higher price. We can if necessary 
put this good tea into new hands at cost price, 
not the total cost price, including all expen- 
diture, but merely at the cost of making it, 
Neio markets are fed on skim milk, the cream 
being extracted by our buyers. I propose that 
we send the fresh milk (which includes the cream) 
direct to those who do not handle our teas. 
I do not propose to "clump" our reserve tea 
on to new markets ; that would be fatal, and it 
would simply return to our present buyers, but 
by creating a fund (a •2-pie Cess) of sufficient 
inagnitude we shall be able to place our reserve 
tea with all necessary precautions that ic shall 
not return, but stay and create a demand. 
A Cess of three pies or four pies would do better, 
because those who refuse to supply tea v/ould con- 
tribute more towards the general expenditure. 
I do not propose to reserve tea and hold it for 
a rise in prices. Having reserved the tea and 
been paid for it out of the Cess, each estate would 
keep the tea for the Association and send it ivhen 
ivanted. This would prevent the necessity of 
having an enormous storehouse. The agents of 
the "Cess Scheme" would wire for supplies to 
Calcutta and then whatever quantity was wanted 
would be collected, bulked, &c., and despatched to 
the agents. " Patience " says that neither growers 
nor Government will accept a compulsory Cess, 
Government will certainly agree if we can show 
that this course of action will allow of the ex- 
pansion of the tea industry. Germany would 
subsidise the industry and so make all the inhabi- 
tants subscribe. We are content to force a^^ tea 
owners to subscribe. 
Indian and Ceylon owners ofifered to reduce, i.e. 
to wipe out 14 million pounds, which, taken at 
five annas per pound, comes to over 43 lakhs of 
rupees. Why should they refuse to pay a Ce?s 
which would cost them less than J that amount ? 
Taken at 10 per cent, 14 millions show a pro- 
duction of 140 millions— that is to say the makers 
of 140 millions offered to pay 43 lakhs without 
much hope of return and a two-pie Cess on 140 
millions would cost them about 14^ lakhs only, 
and I have shown that this would be repaid by 
the sale of the tea itself. 1 would point out 
also that the greater part of the owners, who 
promised to reduce quantity, were getting ^ofi/iwijr 
prices and they must have made the promise 
either because they want better prices, or fear 
that they may get worse. In my opinion the 
raising of prices is the last and lowest object iu 
view. I myself am getting a price that pays, 
but I want to increase my yield so that the same 
prices shall pay more profit, Seeing the neces- 
sity for expansion, I have gone far beyond all 
other "schemers" and proposed a Cess of two 
pies per pound added on to the reduction schemin, 
A. C. 
THE PROPOSED GREEN TEA 
SYNDICATE, 
ITS ADVANTAGES SHOWN BY THK ORIGINAL 
MAKER OF GREEN TEA IN CEYLON. 
Travancore, August 9th. 
Sir, — With interest 1 have read iu your issue of 
3rd inst. your leader, and also Mr. Ryan's interest- 
ing letter on the subject of the proposed" Green 
Tea Syndicate." 
