AGRICULTURISr 
March  i,  1897.]  THE  TROPICAL 
stance,  Trinidad  cocoa  became  a complete  drug  in  the 
market,  so  much  so  that  the  principal  bu3ers  o 
this  description  refrained  from  purchasing  tor  nearly 
half  the  year,  and  to  effect  sales  importers  naa  to 
accept  a very  considerable  reduction,  values  toi  tne 
first  time  sinking  below  those  for  the  produce  ot 
neighbouring  islands.  Some  relief  was  experiencea 
during  the  latter  portion  of  the  year,  this  being  caused 
by  a shortage  from  Ecuador,  which  coutilry  continues 
to  be  the  principal  source  of  the  worl  I’s  production. 
Notwithstanding  an  increased  acreage  under  cultiva- 
tion in  that  country,  the  total  crops,  after  a recoid 
yield  in  18!)3,  have  yearly  diminished.  Other  sources 
of  supply,  such  as  Ceylon,  St.  Thome  and  Biyazil, 
produced  average  quantities.  The  lessened  yield  irom 
Ecuador  caused  a rapid  falling  off  in  the  accummn- 
lated  stocks,  which  at  the  present  moment  have  sunk 
below  those  of  the  corresponding  period  of  last  year. 
At  the  later  sales  of  the  year  a better  demand  was 
apparent,  and  prices  of  some  growths  showed  a tan- 
gible recovery.  It  is  worth  noting  that  a con- 
siderable reduction  in  prices  made  by  Grermau 
manufacturers  caused  an  immediate  and  im- 
portant increase  in  consumption  amounting  to 
40  per  cent  in  the  short  space  of  two  years,  as  is  shown 
by  the  official  duty  payments.  The  principal  English 
manufacturers  retain  practically  the  high  prices  based 
on  the  values  of  the  raw  product  of  years  gone  by,  con- 
sequently no  increase  can  be  seen  in  the  consumption 
of  the  United  Kingdom.  A feature  of  the  year  and  an 
object  lesson  to  home  manufacturers  was  the  inclu- 
sion in  auction  of  considerable  quantities  of  German 
and  Dutch  prepared  cocoa,  which,  notwithstanding  an 
extra  duty,  was  sold  at  price  greatly  below  those  of  Eng- 
lish makers. — II.  and  C.  4/ai7,  Jan.  8. 
CEYLON  TEA  IN  1896. 
Messrs.  Tudor,  GoodLiffe,  and  Co.  in  tlicir 
Keport  for  1896,  say  : — 
Cevlon  Te.^.— Ceylon  tea  has  during  the  year 
marked  a further  advance  in  popula,rity,  both  deli- 
veries and  production  showing  an  increase  on  the 
previous  vear,  The  colonies  and  other  countiies 
have  drawn  rather  larger  supplies  direct,  and 
Russian  demand  has  now  become  such  an^  established 
factor  on  our  market  that  many  lots  of  fine  quality 
Pekoes  ai;e  now  placed  beyond  the  reach  of  home 
trade  buyers.  TJutortuuately,  however,  the 
last  year’s  import  leaves  much  to  be  desired  m 
both  leaf  and  liquor,  some  of  the  shipments  reflect- 
ing little  credit  on  their  manufacture.  The  crop, 
generally,  ruled  thin  and  poor,  with  a low  average 
of  prices,  quality  often  being  sacrificed  to  quantity^ 
although  any  invoices  possessing  strength  and 
flavour  always  commanded  good  prices  and  brisk 
competition.  The  trade  has  received  little  encou- 
ragement even  to  buy  beyond  immediate  requirements, 
no  improvement  being  noticeable  in  the  retentive 
properties,  and  rapid  deterioration  in  quality  has 
L usual  often  deprived  holders  of  any  benefit  arising 
from  a harder  market.  Broken  Pekoes  have  been  iii 
abnormally  large  supply,  and  as  leaf  is  becoming 
more  in  request  for  packing  purposes,  the  former 
have  marked  a declining  demand.  Prices  have 
ran-'ed  from  4d  up  to  about  Is  8d.  All  grades  have 
been  comparatively  cheap  throughout  the  year, 
except  when  affected  by  the  dearer  Indian  market 
in  the  spring,  and  buyers  have  generally  been 
able  to  obtain  a fair  supply  of  leaf  under  Od, 
• — U.  and  C.  Mail. 
THE  FINANCIAL  PRESS  ON  THE  TEA 
INDUSTRY  AND  TEA  SHARES. 
The  uosition  of  the  tea  industry  is  frequently 
commented  by  on  the  several  financial  papers,  and^these 
commeuts  are,  as  a rule,  very  favourable.  We  up- 
597 
pend  recent  extracts  from  the  Financial  News  and  the 
Financial  Times  : — 
The  “ E’inancial  News.” 
One  of  the  features  of  last  year  was  the  increased 
attention  paid  to  investments  in  tea  companies,  and 
it  seems  fully  justified  by  the  statistics  that  are  to 
hand.  In  1895  96  the  Indian  output  reached 
146.000. 090  lb,  against  i:!G,009,000  lb  in  the  previous 
ymar,  and  that  of  Ceylon  106,000,000  lb,  against 
98.000. 000  lb.  Consumption,  however,  very  nearly 
kept  pace  with  the  larger  production,  for  the  home 
market  absorbed  201,000,000  lb  of  British-grown  tea, 
against  190,000,00)  lb  in  1895,  and  foreign  markets 
took  42,000,000  lb,  an  increase  5,000,000  lb  over  1895. 
The  consumption  of  China  tea,  on  the  other  hand, 
decreased  from  26,000,000  in  1895  to  20,000,000  lb  last 
year,  and  the  percentage  of  China  to  the  other  teas 
has  now  fallen  to  nine,  which  compares  with  54  for 
Indian,  35  for  Ceylon,  and  two  Java,  etc. 
The  “Financial  Times.” 
We  have  referred  to  experts  with  regard  to  the 
outlook,  and  we  find  them  agreed  in  endorsing  this 
view.  'Taking  the  question  on  the  broadest  lines, 
we  do  not  find  that  great  improvements  in  dividend 
are  to  be  looked  for  in  the  near  future,  but  it  is 
thought  that  there  is  a reasonable  prospect  of  the 
present  rates  distribution  being  maintained.  If  such 
a view  be  correct,  it  is  quite  clear  that  tea  company 
shares,  con.sidering  the  large  yields  they  give  at 
present,  must  tend  to  increase  in  market  value,  in- 
dependently of  any  increase  in  the  dividend.  The 
returns  to  purchasers  at  present  prices  are,  on  the 
basis  of  recent  dividends,  of  the  kind  which  one  only 
looks  for  on  highly  speculative  investments.  If  those 
recent  dividends  turn  out  to  be,  on  the  average,  stable, 
there  is  obviously  a margin  for  a moderate  improvement 
in  prices,  and  tea  shares  will  go  into  a higher  category 
in  the  classification  of  market  securities.  A con- 
sideration which  has  adversely  affected  their  market 
value  hitherto  is  the  limited  character  of  the  mar- 
ket, and  this  disadvantage  still  prevails  to  a consi- 
derable extent.  In  view  of  that  fact,  it  will  not  be 
amiss  to  give  a word  or  two  of  advice  and  explana- 
tion to  readers  who  contemplate  investment  in  tea 
companies’  shares.  It  may  appear  paradoxical 
to  recommend  purchases  of  individual  shares  when 
the  market  in  them  is  depressed  ; but,  nevertheless, 
it  is  the  sound  policy  under  the  present  circum- 
stances of  a limited  market,  mostly  conducted  by 
means  of  negotiation,  and  not,  as  on  the  Stock  Ex- 
change, by  a free  quotation.  On  such  a limited 
market  the  seller  even  of  a few  shares  may  very 
probably  depress  the  quotation  to  an  abnormal  extent. 
This  is  the  buyer’s  opportunity;  and  the  converse 
applies  to  the  seller.  While  the  market  is  developing 
we  should  advice  both  buyers  and  sellers,  in  the 
first  place,  to  satisfy  themselves  as  far  as  possible 
regarding  the  instrinsic  merits  of  the  company  whose 
shares  they  propose  buying ; in  the  second  place,  to 
see  that  they  buy  at  reasonable  prices,  and  not  on 
the  top  of  a rise,  brought  about  by  some  fortuitous 
circumstances;  and  in  the  third  and  last  place, 
we  would  commend  to  their  notice  the  mixed 
metaphorical  advice,  conveyed  to  us  for  the  bene- 
fit of  our  readers  by  one  who  knows  as  much 
about  this  mark.'S  as  anybody  doss  : “ Don’t  put 
all  your  eggs  into  one  teapot.”  In  ether  words, 
whi'e  believing  in  the  hopeful  character  of  the 
outlook,  ho  recoguis.o.s  the  speculative  nature  of  the 
industry,  and  would  not  recommend  pinning  one’s 
faith  upon  any  individual  company.  The  pros- 
pects as  regards  the  working  for  1896  are  that  they 
will  probably  be  better  than  for  1895,  which  was 
a lean  year,  but  that  they  will  not  be  so  good  as 
those  for  1894,  when  the  success  was  phenomenal. 
There  has  been  a good  deal  of  talk  about  the 
danger  of  over-production.  That  is  a matter  which 
will  one  of  these  days  have  to  be  seriously  faced. 
But  at  present  it  is  not  a thing  to  arouse  concern. 
The  experience  of  tea-growers  has  been  that  increas- 
ed production  has  far  created  fresh  outlets,  not- 
ably in  Australian  colonies,  Canada,  the  United 
States,  aud,  to  a lesaet’  degree,  the  European  con- 
