A RISE IN TEA LIKELY.

New Zealand Herald, Volume XLIX, Issue 14971, 19 April 1912, Page 5

A RISE IN TEA LIKELY.

AN EFFECT) OF CHINESE WAR. NO MONET TO SHIFT THE CROP. Latest cablegrams from all tea markets report a continued firmness of prices, and there seems to be no possibility of any reduction from tbo enhanced rates whioh havo been ruling' for some low months .past. On the other hand, it is expected that there will bo further advances, for tho estimated; shortage in China, the output of which represents at least 20 per cent, of tho world's production, must considerably affect the London marketAlthough, comparatively speaking, very little China tea is used in New Zealand, practically tho whole of tho tea consumed being Indian and Ceylon, this market will feel the effect of a shortage of the China variety as readily as any other, for prices aro ruled by tho London market, and a& tho decrease in tho supply of China tea must necessarily enhance tho values of other teas, by reason of a greater demand, wholesale, rates for the class of tea sold on the the New Zealand market will in all probability see a sharp- advance. The position as summed up by one of the largest tea-broking houses, which does lousiness in tho country, is as follows: —" In our opinion, taking to. consideration the estimated shortage of the China crop, it is possible that if tho Indian tea crop should only reach the normal estimate, wo may see such a riso as has not been seen for a long time. We consider that the wholesale values will increase so much that the retail prico may advance as much as from 3d to 4d per pound." The cause of the shortage in China, according to tho report of an agent on tho spot, is that, tho Hongkong and Shanghai bankers will not advance money to the growers, against tho standing crops, considering that the risk of piracy is too great, as it is necessary to send the money in siwoie through country that is in a very disturbed state, and over-run by unpaid soldiers. Owing .toshortage of this money, growers aro totally unablo to got the tea gathered, packed, or despatched for market