THE TEA TRADE.

New Zealand Herald, Volume XLIV, Issue 13605, 26 November 1907, Page 3

THE TEA TRADE.

The London Times publishes in its Financial and Commercial Supplement of October 4- the following interesting article on the tea trade from Messrs. Brooke, Bond, and Co., Ltd. :—

" Statistics are generally considered very uninteresting reading; indeed, why they should ever be published is a puzzle to many. And yet there are some statistics which, to every truo.lover of his country, should be intensely interesting, for as surely as the condition of a man's pulse tells the state of his health does the consumption of certain articles of diet tell the state of a nation's prosperity. Tea is one of thesearticles.

"When this country is prosperous tea is freely consumed, and a good'price is paid for it. When the- consumption goes down, or is confined to the pooror kinds, something is wrong; either the country is not in a healthy condition, or too great a strain has in some way been put upon its powers. During the last depression in the cotton trade the demand, in tho counties affected, was greatly for the poorer kinds of tea, because the prosperity of that part of the country was at. a low ebb. When the cotton operative is doing well he drinks really good tea, and declines the inferior sorts. From 1901 to 1905 consumption went down, not because the country was in an unhealthy state, but because the increased duty had put. too great a strain upon its powers. Since 1905," when the duty was reduced from 8d to 6d, consumption has steadily increased, till now, with the duty at sd, it is 6.181b per head, slightly higher than before the War Tax was imposed. "When we. turn, in. this our annual review of the state of the tea trade, to consider its history throughout-thc year all over the world, one fact stands out as the salient point in the annals of 1906-7: the important fact that consumption has at last overtaken supply. This fact makes the history of the year unique, and has produced a very curious condition of the market. When, at the end of the year 1906, consumption overtook supply, prices naturally began bo rise. Some .traders thereupon left off selling very lowpriced teas, but many continued selling tea

at Is and Is 2d a pound retail. The supply not being equal to 'the demand for the lowest grades their price rose in a most astonishing manner. In February, 1907, the price of common leaf tea was double what it was in February, 1906. At. the'same timo there was but little demand for the better sorts, so that good tea could bo bought within a penny a pound of tho price of the commonest kinds. It was feared tho high prices would afFeot the quantity of British-grown tea used in foreign countries, driving them to take cheap and common China tea instead. Though this nwiy.have been the case toa certain extent, yet the consumption of British-grown tea has increased enormously. Indeed, the fact of demand having overtaken supply is principally due to the increased consumption abroad, 155,000,0001b of Indian and Ceylon tea having been shipped to countries outside tho United Kingdom during 1906, against 129,000,0001b in 1905. "During 1906-7 exports of Indian tea to Russia rose to 22,000,0001b. Russia is India's best customer. Large quantities were also sent from Colombo, to Russia. Imports of Indian tea into' Germany increased 20 per cent, in 1906. An interesting article appeared a short time ago in the Gartenlaubo, a Well-known Gorman paper, on 'Attention to Health.' Tho writer shows that tea is a. much more healthful drink than alcohol, and advocates the establishment of public ten-rooms, where a good cup of sweetened tea could bo bought for five pfennigs (Id), which sum would bring a fair profit. Direct shipments to Continental countries other than Russia and Germany have increased 120 per cent. In most of these countries 'afternoon tea' is now a recognised institution. Fronch ladies adopted it some timeago, and their oxamplc is being followed ! in Italy. It is also becoming popular in Spain, where, no doubt, the presence of an English Queen tends to make English customs fashionable. "Australia took 26 per cent, more Indian toa in 1906 than in 1905. She is India's second best customer. "North America (the United States and Canada) took about a-quarter of the whole quantity of British-grown tea used outside tho United Kingdom— 40,000,0001b, against 32,000,0001b in the 1 preceding year. There is no doubt that British-grown teas are gradually displacing Chinese and Japanese in the States. This is probably partly owing to tho immigration of peoplo accustomed to Indian and Ceylon teas, but chiefly to the persevering way. in which tho sale of these teas has been pushed. " "Political disturbances very much upset trado -with Persia last year, but now that things are more settled imports of tea are increasing. The Persian likes good , tea, Yielding a nalo straw-coloured liquor ana having a delicate flavour. The poorer classes drink a great deal of tea, those who are addicted to opium smoking taking enormous quantities of it. " Consumption by the natives of India increases steadily. Tea seems to satisfy the. native's craving for some stimulant, and keeps him from resorting to the grog-shop. " Reports from Tibet are very interesting. Almost the whole of the immense quantity of tea consumed there, has been supplied, hitherto, in the form of bricks by China. The Indian Tea Cess Committee has, however, turned its attention to this market, with tho result that a trado has been established with Tibet, which is most valuable to the British planter. There have been great complaints lately of adulteration of the 'bricks' mad© by the Chinese and Japanese. It seems likely that if British planters will supply 'bricks' of puro tea at a moderate price they may get almost tho whole of tho Tibet trade into their hands. "Turning from tho question of consumption to that of supply, we find that India, has exported 18,000,0001b more in 1906-7 than she did in 1905-6. The surplus has been easily absorbed by the increased consumption at Home and abroad. > ~ . "During the year 1906-7 Ceylon has produced very little more tea than in 1905-6, and has exported loss to the United Kingdom. A good many Ceylon planters are turning their attention to rubber, which may eventually provo ft more profitable object of cultivation than tea, though, as tho demand for Ceylon • tea is • increasing so much, it is unlikely that all growers will give it up in favour of rubber. " Great efforts have- been made lately to provo that Chinese tea is more wholesome than Indian and Ceylon, and to push its sale; but in spite of, these endeavours consumption of China tea in Europe, America, and Australasia steadily declines. Tho percentage of China tea consumed in tho United Kingdom is lower than ever, being only about 2.2 per cent. , ,\ ''Exports from Japan have on the whole decreased, particularly to .North America. Tho Japanese are riot, however, letting their trade slip out of their hands without making strong efforts to retain it and to develop it in other directions.-They are endeavouring, with the, assistance of Government, to improve their methods of production. ■, "Tho production of tea in Java makes steady progress. In ton years it has increased 190 per cent. ,v ~ 'The amount of tea produced in other parts of the world than those already mentioned is still very insignificant. r "Wo have ventured tho opinion that the consumption of tea may be taken as a test of tho prosperity of the country. It is also clear that its expanding consumption by other countries increases the prosperity oi our fellow-country in India and Ceyion. Tho British planter has for some-years had a hard struggle for existence, but his prospects are brightening now.. With a somewhat lighter duty at Homo and increasing consumption abroad (the latter being entirely duo to his Own untiring oxortions in exploiting new markets) he may hope in the future for a fairer roward for his labours than has been his lot of late, and no one will deny that he deserves it."

NEW ZEALAND LOAN AND MERCANTILE AGENCY. By Telegraph.—Press Association.—Copyright. (Received November 25, 9.35 p.m.) London, November 25.

\Uer paying debenture interest, and adding £58.000 to reserve, the New Zealand Loan and Mercantile Agency report shows a credit balance of £6562. A dividend of 5 por cent, has been declared, and the sum of £133 carried forward. The directors report .that a number of the company properties realised above the valuations of 1897. If is proposed to transfer £100,000 of the surplus to the capital reserve account. The directors announce that the trustees agree to the continuaneo of the New Zealand Land Association as a separate company. -

WELLINGTON PRODUCE MARKET. ■ [BY lELEOBAPH. —OWN CORRESrONDKNT.] Wellington, Monday. High prices have continued to rule for all lines of fruit forwarded during the week, and prospects are excellent. Lemons realise 3s to 4s per case; apples, 15s to 16s per case; Strawberries, choice, Is to Is 3d pea* box; prime, 9d to lOd per box; gooseberries, to 6s per half-case; grapes, 2s to 2s 6d per lb. A strong demand is expected for Island and Californian oranges, due on Tuesday. Hothouse tomatoes have weakened owing to supplies of Nelson being heavier. Choice realise 9d to lOd per lb; others, 6d to Bd. Asparagus brings 4d per bundle; cucumbers, 4d to 6d each; French beans, oil per lb- new potatoes, choice, 16s to 18s per cwt; others, 12s to 449 per cwt. Old potatoes have slumped owing to over supply, to 4s and 5» per cwt. Onions realise 9s to 10a per cwt.; lettuce, 4s to 5s act per case; green peas, 5d to 6d per peck- cabbages, 5s to 6s per sack; cauliflowers, 7s to 9s per sack- fresh eggs, Is Id. HIGH COMMISSIONER'S MARKET CABLEGRAM. .-'- £:;. [BY TELEGRAPH.— ASSOCIATION.] Wellington,' Monday. The High Commissioner cables from London, under date November 23, as follows:— The mutton market is quiet, but holders are firm. There is better demand for mutton for forward delivery and general confidence in themaintenance of present ices. Canterbury is quoted at 3Z<i; -North Island, 3gd. The lamb market is a shade weaker and the demand is falling off. Canterbury lamb realises 52d; other than Canterbury, s£d. Tho beef market is quiet, but. rather steadier. Hindquarters realise 3Jd ; forequarters, 2£d. The butter market is linn, with improved demand, and good inquiry is expected until Christmas. Choicest New Zealand is quoted ok 118s; Australian, 117s; Argentine, 118s; Bullish, 1225; .Siberian, 110s. * •'■ The cheese market, is quiet, with a tendency in favour of buyers. Canadian manufacture realises 625. -' , The hemp market is rather unsettled, on account- of Manila being offering freely at- lower prices, flood fair grade, on spot, is quoted at £29 10s; fair grade. £28 10s; fair current' Manila, £30; October to Dec-ember shipments, good failgrade, £28 10s; fair grade, £27 10s; fair current Manila, £29 January to March' shipments, good to fair grade, £28; fair grade, £27; fair current Manila,' £28 10s. -' *. ',;' The cocksfoot, market is quiet, but. holders are firm. There are light, stocks on hand and no pressure to sell.' Bright clean 171b seed Is worth 75s per. ton. LONDON. By Telegraph,—Tress Association.,-Copyright. '■•-,*/ London, November 24. ■■'■} ' ' METALS. ■■- ;- Copper: On' spot, £59 15s; at three mouths, £59 12s 6d. ;-..-■■■. Tin : On spot, £156; at, three months, £137 10s. Iron, 49s Od. ' Antimony, £11 to £12. Stiver, 2s 3 l-16d per, ounce. -■•:, SHARES. • --.' Waihi: Buyers, £8 6s. 3d ; sellers, £8 8s 9d. Wajhi Grand Junctions: Buyers, 30s; sellers, ~,32* 6d. ■, .- > -": • :■- ■-.' ,i

COPRA, LINSEED OIL, AND HEMP. Tho copra market is slightly easier, with fair business. A South Sea (shipment sold at £19. Linseed oil, £25 10s. The New Zealand hemp market is dull. An October-December shipment sold at £28 10s. RABBITS. The market for rabbits is unchanged and is clearing well. " • • HIDES,, ~ At the, hide sales there was poor demand and prices were a shade easier. Leather is neglected and prices are unchanged. Basils generally declined id. First Wellingtons Bold at 21id. FROZEN MEAT. .'..- Mutton Canterbury, medium 3Jd; other sorts, unchanged. Lamb: Canterbury, light sid, medium sgd, heavy s|d; Southland, 5 5-16 d ; North Island, unchanged. New Zealand beef: Ox tores, 211-16 d; ox hinds, unchanged. River Plate -sheep, unchanged; beef, ox fores 29-16 d, hinds unchanged. WHEAT AND FLOUR. The wheat and flour afloat for the United Kingdom is 2,080,000 quarters; for the Continent, 1,255,000 quarters. Atlantic shipments, 445,000 quarters; Pacific shipments, 100,000 quarters.