56o 
THE TRDFIOAL A-efRimJl-TUFflST- 
[February i, 189^. 
Further, it may be stated that, excepting for fnncy 
trifling lots of gold and silver-tipped teas, prices of 
which are artificial, it has been quite a rarity aod a 
wonder to see a line of Oeylon tea knockea down in 
public sale above 2s as the highest range of value for 
best qualities has mostly been from Is 6d to Is lOd per 
lb and even at these rates the parcels of teas realised at 
one time and another have been comparatively few. A 
principal cause of the larger proportion of inferior 
grades in this season's crop has been the continuous 
rains in Oeylon daring the gathering and manufac- 
ture of the teas, which, besides adding to the diffi- 
onlties of drying and withering the tea, have partly 
spoiled the quality of the same, and left in many 
gardens and estates little else but rnbbish to be ex- 
ported to England. From the latest information we 
can glean, however, it is expected that these adverse 
conditions of preparing tea for the Loudon market will 
soon be overcome, and if so a decided improvemont in 
the assortment of Ceylon teas will probably follow, 
and then this branch ot the trade will be in a stronger 
position than ever to compete with the low-priced 
growths of India and Obiua. In the meantime stocks 
on ibis side are excessive, embracing 14,966,000 lb. 
as contrasted with 8,505,000, lb. in December last, and 
until the extensive surplus here apparent is worked 
down, quotations generally may be reckoned to rule 
as mach as ever in favour of both retailers and con- 
sumers. — Ut and C, Mail, Dec. 18th. 
THE REGULATION OF INDIAN TEA 
SALES. 
TO THE EDIXOH OF THE "HOME AND COLONIAL MAIL " 
Sir, — In the letters addressed to you by Mr. Shii- 
lington and " Observer," a subject has been broached 
which seems to merit moro thorough disonssioa than 
it has yet received. Prefacing what I have to say with 
the remark that my interests are bound up with those 
of producers as oloaely as any man's can be, and that I 
do not write with a controversial object, I will briefly 
oaalyse the substance of their last letters. 
In them, the following propositions are as- 
Bumed :— 
1. — That supplies of Indian tea are being unduly 
forced on the market. 
2. — That the value of tea would be raised by reducing 
the sapply now, and reserving some of it for sale 
during the summer months. 
3. — That it is possible for sellers to combine here 
to regulate supply. 
4. — That the brokers are answerable for this not 
being done. 
For propositions 1 and 2 Mr. Shillington is 
responsible. His opinions always deserve considera- 
tion ; but in this instance they do not accord with the 
judgment of the greater number of those engaged in 
the trade, whether as importers or buyers. It is a 
matter of common knowledge that each succeeding 
year finds buyers lets willing to take tea of the old crop 
after April, o r May at the latest. The loss to those 
who have held for the summer demand — whether pro- 
dacers, dealers, or speculators — ia as well known as the 
reason for it is obvious — viz., the inflow of heavy sup- 
plies of fresh tea from Ceylon after March. The bear- 
ing of this is so fully appreciated that in f nture every 
producer of Indian may require his crop closed by 
April, just as every grower who sells in Calontta elects 
to wind up his sales before March, if he can. 
This being so, the realisation of the great bulk of the 
imports muet take place between September and April. 
By the use of simple arithmetic, anyone who knows 
what the total supply will be can find that to dispose of 
the crop it is needful to sell some 40,000 packages per 
week from Sept, 1 onwards, and a reference to the 
circular file will show that the average since that date 
has been not more than 38,000 packages per week, 
But apart from the arithmetic problem, is it really 
the cahu that prices can be raised, except to the most 
temporary aud trifling extent, by the process of feed- 
ing the market ? Hurely the value of a large article 
gf commerce like t«a (tepeuds upou the relation of 
total supply to the total requirement. Those who 
think otherwise forget that in these days the buyers 
have the same opportouiSies of obtaingiug informa- 
tion as the sellers have with rtspect to supplies. 
They are able to calculate for themselves the proba- 
bility ot exoees or deficiency ; they know how many 
chests arrive each day, and how much of it is held 
and how much sold. Nothing destroys their con- 
fidenoe in buying so much as the Knowledge that sup- 
plies are being kept back, hanging like a cloud over 
the market ready to come down, as the rain does, it 
may be when least wanted. 
Your correspondent " Observer," having assumed the 
soundness of Shillington's propositions, adds to them 
two of hia own. Let me breifly examine them. He 
asasumes that it is possible for importers to act in 
concert. Those who have earnestly tried to effect 
this know the exceeding difficulty. Ooly a few weeks 
ago the brokers mot in solemn conclave, and passeda 
resolution doclaring that it was desirable that only 
35,000 chests per week should be put on the market. 
What followed ? Within a fortnight the maximum 
was largely exceeded. Why? Because no machinery 
can be devised to carry oat what is aimed at. Why 
not ? Because every importer wishes someone else to 
hoi'.', in order that he may sell to better advantage; 
but as for holding off himself, well he is not quite 
sure that this would be wise ! — and so the brokers' 
deliberations ended in a farce. 
Now let us go a little deeper beneath the surface. 
Run through the names of the great agency houses 
which manage the affairs of the industry in London, 
add to them the experienced managers and direc- 
tors of the large companies whoso headquarters are 
here, and you will find among them men of tha 
highest business capacity and foresight — men who 
know how to manage their own affairs, and prefer 
to manage them in their own way, declining to limit 
their freedom of action by entering into combinations. 
Is it for the broker to go to such men and say, 
" We advise you not to sell, Messrs. .4., B., and C. 
are offering large quantities this week and next, hold 
yonr teas for awhile?" Why, Sir, any broker who 
did that would speedily find himself atnong the ranks 
of the unemployed, and deservedly so. A broker's 
business is to oboy orders, and carry out his employer's 
instructions as honestly and carefully as he can. Re- 
member too, that one-third of the supplies are im- 
ported by speculators who buy in Calcutta ; in no 
possible combination of products could thoy be included. 
A friend at my elbow suggests to me that I 
should say something about Observer's " warning 
to the brokers that if they do not succeed in raising 
the price of tea the importers may dispens* with 
their services and " broke " for themselves ; but I 
am loth to refer to such an uncalled-for threat, 
except to place it in the same category as another 
rumour which is current to the effect that certain 
enterprising firms are only seeking an excuse to add 
the functions of grower's agent to that of broker, and 
ell for 1 per cent. ! May each prove the antidote to 
to the other ! A'e sutor ultra crepidaai, said Apelles 
to the shoemaker who daubed his wall with paint, 
and thought he was an artist. Fortunately there are 
still old-fashioned folks who respect the recognised 
boundaries of their several callings ; but if the struggle 
for existence is to be carried to such a point as " Obser- 
ver" hints at, well, I suppose the fittest will survive. 
But can we do nothing to help each other out of tbe 
ditch into which we have fallen together ? " Observer's" 
most valuable letter in your issue of the 13th, points 
to one way : let me indicate another. London is 
too large a place for combinations, but what is not 
feasible here may be possible elsewhere. Go to the 
source and fountainhead, India ; and here a dozen more 
or less conflicting home interests are concentrated in a 
single focus, and if concerted action be possible at all, 
unite not to manipulate supplies, but to shorten the 
output. Let us have the courage to face the facta 
We are suffering from over-production, and if growere 
would agree to make 10 per cent, less tea in India 
and in Ceylon, we should soon see a very different state 
of things, Too many were mislead by the infloted 
