They were saved by Russia, the only country which had no surplus stock of tea, The All Russi: ment or semi-government organizations all buying through Soviet official channels and the Asiatic Trading Ca. Ld., now a British firm but formerly one of the three big Russian firms, bought 75 per cent. of the crop of black tea at prices which enabled the Chinese to get out without loss but were at least i5 to 20 per cent. and in some cases as much 50 per cent. more than the tea was worth compared with prices ruling for other growths in London. It is difficult to understand what made the Russians pay the price they Possibly they were -able to finance purchases from China more easily than these in London or Caleuttas Possibly for political reasons the Soviet -wished to purchase as much as possible from China. The tea trust in Russia has its own shops and sells to cooper tive societies and pri traders It has no competition and is highly successful institution, and presumably it does not' mind spending £200,000 or so more than is necessar on its imports of tea, as of course the consumer pays. The present Director of the Tea Trust was a workman in the chouse befure the revolution and is able man. He got hinuelf appointed Trust but for a long head of the ime it waa in Russia to distribu ment w Department Vladivostok fell into the hands of the Soviet and with it some five or ten millie pounds of tea five to seven years old, difficulty and after great other government. departments he was allowed to purchase this tea at a low price. He had in the meantime had the sense to gather round him all the men he could, who had worked in the various big tea firms prior to the revolution and in consequence had a staff of capable and honest mea Russian currency having been stabilize ed, after the Vladivostok tea had been sold, the Trust found itself with a working capital of 1,500,000 sterling—small enough in all conscience to do the whole tea trade of Russia, but with almost Himitless possibilities of making profits the only Government trust efficiently and honestly run and at a profit. It is said to have made three-quarters of a million sterling profit last year and as long as it continues under present management and the fingers of the Commissariat of Finance can be kept off it, it must continue to prosper. It is understood that the present Director has received permission to transfer the profits for the next five years to the capital account of the Trust, but the future really depends on whether this money-making Government Trust can be kept out of politic:
ts Directorship must be a great pri subject to much intrigue.
During the period the Russians were purchasing at these high prices the market for common Indians in London continued to sag and British and Continental firms were only able to do a very small business in the finer grades. The Indian crop looked like being 20 million pounds larger than 1924, 1925 stocks were accumulating and prices threatened to go down to the low level of 1920.
The Indian plantations then got together and agreed to reduce their production to not more than the last season's crop, when suddenly the crop began to fail and now the total Indian crop is estimated at ten' million pounds less than last year, Ceylon the same time have been suitoring from drought. Consumption owing to lower prices has bueked"up a, little and for the last. six prices in London have been steadily rising. Common Chinas have not, however, responded to any extent and are still rather below the prices at which one could replace sales in Hankow. In Foochow, however, the Russians were smal! operators and in con-Sequence prices have fallen much lower there and a considerable business has been possible for London and showed very good value The crop as a wi lo ha been of fair average quality very, much better Uhan last. year which was rain-damaged. Keemuns were cspeeilly ood a vintage year and fetched record prices, The Russians hough 50 per cent, of the crop at prices which made them unto London, They could have much better value in Ceylon. The whole crop of $4,000 he has been sold at prices very remunerative to the Chinese. Ningchow and Kiukiang packs were of fair quality aid were all taken by the Ru wok over AO per cent, of the Mankow crop. Stocks are about 20,000 Tow and medium and common, There has been a fair business in standard to America owing (o most of the stocks being shipped to London during the boom last y
Text read from the printed page and cleaned; old type leaves the occasional error.