The Archive · 1896

The Demand for a Duty on

TEA IN 'THE UNITED STATES

To the Editor of the Nonrs-Cnixa Datty News, S1n,—By the last mail we were favoured with a copy of the recommendations of the Committee, svi disuxt representatives of the tea trade of the United States, on the subject of imposing a specific duty upon importations of tea. This specific duty, according to the document, will not only have the effect of increasing the consumption of tea, but will be a specific to correct certain evils which cannot be avoided under present regulations. It is almost impossible to suppose that any body of shrewd business men could deceive themselves with such crude ideas of cause and effect, and it shows a lamentable ignorance of the history of the trade which is thoroughly opposed to their arguments. They regret the decrease per capita in the consumption of tea in the United States, where it is a free article, and they attribute the increase of consumption in all countries where the article is taxed to the effect of the fix. The tax no more causes the in-grange in consumption than the building of Tenterden Steeple caused the flooding of the Goodwin Sands. In fact, any change which tends to increase the cost of an article to the consumer must per se tend to decrease the use of that article. The consumption in England has increased as the duty has been diminished, and success sive Chancellors of the Exchequer have alivays reckoned on the fillip given to the trade by reduced taxing to replace in part the money lost by the reduction of duty per lb. In the old East India Company's time the duty was cent per cent ad rdlorem, Afterwards it was reduced to 1s. 3d. 34 cents, then to 1s.=24 cents; now it is 4a=8 cents. With every reduction of duty the consumption has increased rapidly, and if the duty were abolished the consumption would probably increase more.

The Committee argue that duty is the only safeguard against the importation these British grown teas in Eng of adulterated and exhausted tea, quite a marked improvement were made in the ignoring the fact that all or nearly processes of curing teas in China. The raw all the adulterated teas which have material in China is the best in the world. been shut out" by the United States The only possible benefit of a duty on Government Inspectors have found a an article is to the government of a coun-market in England and other countries, try. Duty will not increase consumption, who enjoy the supposed blessing of a will not prevent adulteration, will not raise specific duty. Russia, which takes the the average quality of a crop. All these cream of the China Congous also takes a come from the energy which is displayed huge quantity of brick tea, much of by those in the trade itself, and quality which is of lower gade than any tea depends solely on demand' for a good shipped to the United States, article. The removal of the duty on tea The only safeguard against the impo: tahas been no injury whatever to the contion of adulterated tea is strict and sumer, but on the other hand has almost impartial government inspection. 'Tea invariably proved a benefit. which is unfit for human food should be Tam, ete., treated the same as unsound butchers'

A Suen. meat or rotten fruit: it should not only be 22nd February. "shut out," it should be destroyed. So 1} far from duty being a safeguard it would probably have the entirely opposite effect retailers being unwilling or unable The following is the memorial referred to in "A Shipper's" letter to raise the prices to their customers "We, the undersigned Committee, repre~ would buy a lower priced article to senting the tea trade of the United States, enable them to retain the present high beg to make the following recommenda: scale of profits. The teas sent to Great tion: That a specific duty be imposed Britain from China are similar in quality to those sent to the United States, though upon importations of tea sufficient to correct certain evils which cannot be the latter country uses more of certain avoided under present regulations. Here-descriptions than the former consumes. tofore, when the subject of duty on tea has The memory of some members of the been suggested, ib has generally been op-Committee carries them back to the tea with the fiction of the free break-of 1873, but like most memories of the fast table" by some who have not under-sortie is defective and remembers the good. stood the subject and the conditions which 'The experience of most buyers, in the North affect the production, distribution, and of China at any rate, is that there are just consumption of tea.' The fact is, the teas obtainable now as ever existed, removal of the duty on tea has been a posi-one had to go back to the "Maloo tive injury to the consumer, because of the Mixture" and other trash which was shipped in the early seventies one would poorer quality which hus been imported sce then. The Bureau of Statistics at Washington wonder how tuck filth was ever bought for shows that in 1873 the average import price ts good for drinking purposes now aa. ever man food. The ave mn tea is just of tea was double the price of to-day, and the consumption per capita 1-bulbs., since it was, though one often misses the perfect make of earlier days, which pleased the which time the average quality and price have steadily declined, together with the eye but was worthless in the tea-pot. consumption, which is now only 1s4lbs., The price which the retailer requires in per capita. The consumer pays the retailer the United States has much more effect, in nearly as much to-day for a pound of tea ay restricting the consumption than anything he paid in 1873, and receives a much else. The average price at retail through-inferior quality, which accounts for the out the United States is about 50 cents falling-off in consumption. In_ contrast

of 4d.'or say 8 cents alb., the average at per Ib,, whereas in Englund, with a duty with this. we tind that in all countries where there is tax on tea, the consumption retail is about Is, 7d.=38 cents gold. per capita has increased, most notably The average price paid to the exporter Englind where the consumption has in-from China to the United States this year creased within the last twenty-five years will probably not exceed 15 cents, and it from 3°63 to 5°53 Ibs. per capita. is this enormous percentage of profit made "In England, where the duty is eight by the retailer and middleman that checks cents per pound, and the consumer gets consumption. better value for the same money, the con-Tt is to a certain extent unfortunate that sumption is four times greater than in the the taste of consumers in the United States United States where there is no duty. runs upon teas which are artificially The average price of tea at retail through-coloured, and which therefore must of necessity contain a certain quantity of out this country is about 50 cents por pound, and considering that one pound of extraneous matter. This colouring makes the tea a little more attractive looking, good tea will make over 200 cups, giving 4 cups of tea for 1 cent, it will be seen that but it also enables the producer to cover good tea is an economical beverage. The up a quantity of perished leaf which would difference in value to the consumer be-prefably not be put in if the teas were not tween good tea and poor tea is very much coloured, as they would be easily detected greater than the public realises. by the least practised eye. The colour is "Some twelve years ago, Congress, upon not injurious to health, but it is a relic the recommendation of the tea trade, passed of barbarism" which would be better abo-a Bill excluding adulterated and exhausted lished. All Japan teas and green teas are tea. Although' the Bill has been of ad-coloured. Congous, Souchonys and China vantage, it has not prevented the imand Formosa Oolongs are uncoloured.

Duty is the only' real safeguard; its tation of large quantities of poor tea.

Reliable statistics of stocks, deliveries, ete., are more easily obtained where _bond-imposition, as has been proved by exed warehouses exist, but reliable figures perience, would retard the importation of might easily be obtained by Chambers of poor quality by American merchants, and Commerce or Brokers' Associations collect-at the sume time prevent native shippers ing particulars of stocks, ete., from the in the producing countries from exporting trade under guarantee that no individual's to this country, where there is no duty, the holding be revealed. inferior and trashy teas they cannot send Besides the lower price charged by re-elsewhere tailers in England the commanding cause of The Russian Government imposes a the increase in consumption in England is duty of 45 cents gold per pound, and it is a the plentiful supplies of pure teas from well-known fact that the people of Russia India and Ceylon, which have been forced on public notice by all means possible. To receive the best tea of any people in the world, The duty on tea in France is equal many people these teas are unpalatable and to 21 cents, Germany 11 cents, Austria-indigestible, but it is doubtful if China teas Hungary 20 cents, Spain 28 cents, Portugal could ever have attained the po) larity of 48 conta, Norway 94 cents, and England, 2 less free-trade country, collects 'a duty of 8 cents

Text read from the printed page and cleaned; old type leaves the occasional error.

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