FUTURE OF TEA

New Zealand Herald, Volume LXXIV, Issue 22700, 12 April 1937, Page 5

FUTURE OF TEA

KISINC RETAIL HtICES POSITION OF DISTRIBUTOR RESTRICTION STILL NECESSARY "The year 1937 lias opened with a startling change in conditions and tea averages already show an advance of approximately 2d per pound over the closing sale in December," states Brooke, Bond and Company, London, in a- recent review of the tea industry. "The outlook," it says, "is certainly very much brighter for the grower, but for the distributor tho future seems less encouraging—retail prices have been gradually advancing over a period of years owing to rising tea prices and increased duty.

"it would appear that very soon the lowest retail price must be raised to 2s a pound; this obviously would not help to increase consumption. Any further increase in the British tea duty would be disastrous."

.Reviewing conditions in 1936, Brooke, Bond and Company says that all sections of the trade required infinite patience. "Markets remained apathetic and prices showed very little variation," it states. "Compared • with 1935 the price of common tea showed a moderate advance, but to the growers of the finer grades, mainly from Assam, Darjeeling and Ceylon, results were most disappointing. The totally unexpected announcement in the 1936 Budget of 2d a pound increase in the duty on all tea was largely responsible for this feature.

"Continuation of crop restriction must be looked upon as a foregone conclusion —it is absolutely necessary ior the salvation of the industry,' 1 the review goes on. "The lag in bringing down stocks to a reasonable figure was much more than anyone anticipated, and probably this influenced the committee in deciding not to increase the 1937-38 quota, in the new scheme, British-grown African teas will probably, be included in a modified form, as the industry in these colonies is young and requires nursing. "it is almost churlish to criticise the Tea Market Expansion Board when export figures are so formidable, but we still maintain that concentration on selected areas would be preferable to the very widely-spread and often inadequate propaganda which is the policy to-day." '■ BANK OF ENGLAND GOVERNOR'S 18TH TERM CONTINUITY OF CONTROL On his re-election as Governor of the Bank of England this week, Mr. Montagu Norman commences his 18th year of office as Governor, a length of time virtually coinciding with the postwar years, a period characterised by innumerable difficulties and problems in almost all parts of the world. Throughout the 18 years there has been continuity of governorship and also a considerable degree of continuity in the holding of the chief offices of the bank. Sir Ernest Harvey, who retired early this year, had held the position of Deputv-Goveriior for a number of years, while Mr. B. G. Catterns, who has just been reappointed Deputy-Governor, took up that office on the retirement of Sir Ernest Harvey. Previously Mr. Catterns was chief cashier. SHILLINGS, LIMITED EXPANSION PROGRAMME MAIN STORES SECURED The board of directors' of Shillings, Limited, is now planning the second expansion programme of the company. Shillings. Limited, was incorporated in April last vear, with a nominal capital of £200,000. of which £125.000 was issued to the public as ordinary shares, the balance, £75,000, being reserved for future issue, to carry out the second expansion schedule. The company's flotation through the New Zealand Stock Exchanges was a great success, there being £311,000 subscribed in less than 21 days. The first six months of the company's efforts were devoted to organising and assembling stocks, training staff and securing retail premises in good key positions at Auckland, Wellington, Christchurch, Dunedin, New Plymouth, Hamilton, Palmerston North and Masterton, this being the first schedule. Four branches are in full operation, and the remainder will be open before Julv next. The directors report that the results are. most satisfactory, sales being considerably in excess of their anticipations, and progressively increasing in volume. GOLD , AND SILVER QUOTATIONS IN LONDON (Received April 11, 5.5 p.m.) LONDON, April 10 Fine gold is quoted to-dav at £7 Is 8d an o/.., compared with £7 Is 9Jd yesterday, and Sit Is 11 Id on Thursday. Silver was quoted yesterday at 21 1-lGd an oz spot and 21 id forward, compared with 21d and 21 l-16d on Thursday. The quotation for silver at per fine 07,. yesterday, was 22;|d, compared with 22 11-lGd on Thursday. NEW COMPANIES REGISTRATIONS IN SOUTH Registration of the following new companies in the South is contained in the Mercantile Gazette: PUBLIC Collins (Reginald), Limited, brewers, Wellington. Capital, £15,000, in 15,000 shares of £1 each. Subscribers: Wellington —A. Simnij H. W. Harris, W. H. Randell, E. P. Duncan (Taihape), F. E. Ward, P. R. Stansell, S. It. J. Maiden, 1 share each. Investment Registry (Christchurch), Limited. Capital, £20,000, in 10,000 ordinary and 10,000 preference shares of £1 each. Subscribers: G. W. Lawrence, 2000. Christchurch — J. R. -Torn pi in, 1; H. Mcllraith, 1; H. Bicknell, ]; W. H. Carson, 1; A. JO. Kincaid, 1; B. M. Field, 1. PRIVATE Trumans, Limited, drapers, Christchurch. Capital, £15,000, in shares of i;l each. Subscribers: Grcymouth—G. M. Truman, 10,100; E. J. Truman, 400; R. <r. Truman. 1500; W. E. James, 1500; M. E. James, 1500. United Service Hotel, Limited, Christchurch. Capital, £2500, in shares of £1 each. Subscribers: Christchurch —E. Boulton, P. B. Boulton, 1250 each. Wellington Bottle Company, Limited. Capital, £2OOO, in 2000 shares of £1 each. Subscribers: Wellington—T. H. W. Callingham, 1500; Agnes Callingham, 500. BRITISH WAR LOAN British Wireless RUGBY, April it War loan, 3£ per cent, was quoted j to-day at £lO3, same a§ yesterday,.