THE PRICE OF TEA.

Press, Volume LIX, Issue 17814, 13 July 1923, Page 10

THE PRICE OF TEA.

A STATEMENT OF THE POSITION (SPECIAL TO ''THE ?E883.') WELLINGTON, July 12. It was asserted a clay or two ago that as a result of the reduced tea duties, there would be a lesser charge of 2d per lb wholesale in Auckland, and 4d per lb in "Wellington and Christchurch. That, says the "Dominion," is hardly a true statement of the position. One of the best informed and largest tea importers said:— "One has to go back some time to realise the position. In 1901 the price of tea in Ceylon was 33 cents per lb. In 1917, when the ta duty was put on here, the average price of Ceylon tea was 57 cents. In May of last year it was 73 cents, and last May it was 94 cents. As a matter of iact, the price of tea in Ceylon is 2d per lb more than it was six month ago ; indeed, but for the reduction of duty an increase iu the selling price would have been inevitable. The position of the tea market in the growing districts is very strong at the present time, and owing to the reduced production and increased consumption, there is little prospect of any larger output for two or three years. During the war the British Government took control of tea import, rationed the consumers, and thus enormously reduced consumption. The result was that many growers could not get rid of their output, and ceased growing operations. It would take some years to get the plantations to produce their old output ? and meantime the world's demand as going up by leaps and bounds. "In regard to prices, eight or nine standard proprietary brands in New Zealand hare been reduced the full 3d. In some cases a reduction of 4d per lb has been made and in others even as much as 6d, these reductions applying from the North Cape to Bluff. A condition was imposed that an equal reduction must be made to the public. The reduction in bulk tea is difficult to control. The amount has to be left to the retailer, and that is governed a great deal by As a matter of fact there were no old stocks, and the trade was at a standstill until the duty was abolished. Such timely notice had been given of the reduction thai everyone kept, their supplies down in anticipation. "It is as certain as anything can be, ialtini cable advices as a jrnide, that in the course of a few months, when new stocks arrive, there will be a substantial rise in the price of tea." TRADE WITHIN THE EMPIRE. In the course of a brief address at the Commercial Travellers' and Warehousemen's Association, Mr N. Elmslie, his Majesty's Trade Commissioner, remarked that there had never Jbeen a time in which closer trade relations be-, tween the various parts of the Empire was of more vital concern than at the present moment. The day would come when each of the Dominions of the Empire would become a nation able to look after itself, and he hoped when that time came we would not think it necessary to break up tire Empire, but would continue as a. commonwealth of nations to assist each other. If we did that, there was no doubt the British Empire would be able to, hold its own everywhere. At the present moment New Zealand was in a somewhat difficult position. The prosperity of the country depended upon the exports of its primary Eighty-five per cent, of the whole of the products of this country went to the Old Country. But England-, he pointed out, had a colossal burden of unemployment and. taxation, and naturally its consuming market must decrease. Unless conditions improved at Home —and he was glad to say they were slowly improving —New Zealand would lose its principal market. Therefore it was in the interest of this country, as of the other Dominions, to help the export trade of the Old Country—to transfer as much of our business as possible to the British market. He alluded in appreciative terms to the patriotism of the people of this country, but urged that still more could he done" in the way of reciprocity in trade and increased trade relations between this country and the heart of the Empire.