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REVIEW OF THE TEA TRADE OF THE UNITED STATES

FOR THE YEAR 1911.

GENERAL STATEMENT.

RECEIPT AT ALL THE PORTS FOR THE YEAR 1911 AND THE PREVIOUS THREE YEARS.

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ANNUAL REVIEW OF THE TEA TRADE OF THE UNITED STATES.

THE tea trade will long recall the year under review as one of the most unsatisfactory in its history for the marked uncertainty prevailing the greater part of the time was not conducive to profitable operations. In fact, the situation at the end of the season promises losses to those importers and distributors who went ahead in the belief that the government ruling relative to excluding China greens because of color would be rigidly enforced. This does not mean that the market was depressed throughout the season, since speculation on the possibility of a shortage in shipments was effective in advancing prices 2 to 4 cents a pound and only the admission to this country of green teas, exceeding the estimates of even the most pessimistic members of the trade, brought about the subsequent severe reaction.

At the outset of the year, the Treasury Department had approved the selection by the Board of Tea Experts of standards supposedly without color or facing for green teas. This category would ordinarily cover both China and Japan kinds, and the natural result was to

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enhance the value of the colored teas already in the country; for well informed importers said that the Chinese could not be induced to change their customs on such short notice. Japan, however, seized the opportunity to increase the market for its teas and passed a law prohibiting the manufacture of colored kinds, with the natural consequence that heavy shipments of uncolored were made to the United States to fill the gap expected from the exclusion of China greens. Advices from the latter country seemingly bore out the report that practically no uncolored teas would be shipped, and with a shortage for consumption in sight, purchases of the black grades in the primary market were made on a heavy scale. This trend is readily shown in the imports of India-Ceylons, Formosas and Congous.

Advices to the effect that the western importers were buying in the China market proved very unsettling to the trade but Washington maintained that the regulations would be rigidly enforced and that no tea having coloring or facing would be permitted to come in. The East fought vigorously when despite the official contention Chinese greens began to pass inspection and every effort was made to convince the Treasury Department that the teas were colored. The western importers were equally as persistent in maintaining that the imports. were up to the standard and that if they contained color or facing this was accidentally acquired. To make a long story short, the examiners at the ports where most of the teas arrived admitted them under the formula, and instead of a shortage, the total receipts of all kinds were several millions of pounds larger than in the previous year.

The Treasury Department has now arrived at another test for determining color which finds the approval of the new Board of Tea Experts. The so-called "Zebra" test was worked out by an employee of the government and is expected to detect both color and facing, though there are those in the trade who after recent experiences feel that the detection of the same will remain a difficult problem to solve. However, it is hoped that the new scheme will at least prove more efficacious than previous devices, especially if uniformly administered. The appointment of a supervising inspector to see that the examination at the various ports is up to standard meets universal approval; for the different interpretation of the regulations has been a prime cause for complaint. It has been persistently maintained by the Eastern trade that the examination on the Pacific Coast was less thorough than in New York which naturally makes the task of the importer none too happy a one. If the inspection can be standardized, a great step forward will have been taken.

The trade figures cover the crop year running from June 1st to May 31st, but for purposes of comparison the imports furnished by the Bureau of Statistics for the calendar year will indicate the supply available for distribution. It will be noted from the table which precedes this review that the total receipts at all ports of the United States were 104,165,654 pounds, an increase from the figures for the previous year of 6,057,715. The average receipts for the past four years, it may be interesting to note, were 99,422,000 pounds. The consump

tion is figured roughly at between 90,000,000 and 95,000,000 pounds, hence there is a carry-over in the country each year of some 5,000,000 pounds. Despite the high prices of coffee the consumption of tea has not increased much according to the view of most of the trade. There is some expectation that a duty may be eventually placed on tea, especially if the tax on sugar is reduced but to date nothing definite on this subject has been broached at Washington.

CHINA AND JAPAN TEA.

TOTAL NUMBER OF POUNDS IMPORTED INTO THE UNITED STATES AND CANADA FOR TWELVE MONTHS FROM JULY 1ST TO JUNE 30TH.

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TOTAL NUMBER OF POUNDS IMPORTED INTO THE UNITED STATES AND CANADA FOR TWELVE MONTHS FROM JULY 1ST TO JUNE 30TH.

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TOTAL NUMBER OF POUNDS OF TEA IMPORTED INTO THE UNITED STATES AND CANADA FOR TWELVE MONTHS FROM JULY 1ST TO JUNE 30TH.

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Japans.-The shipments were unusually heavy owing to the belief that the Chinese would make no uncolored green tea, there being a certain amount of trade in this country which will not use black kinds under any circumstances. Since the Japanese government hastened to legislate against the use of color in the manufacture of tea, importers felt safe in purchasing. While teas were held up as containing color, they were subsequently released. Prices were higher in sympathy with the general tendency, an extreme advance of about 4 cents a

*March 1st to February 29th.

pound being recorded. It will be noted that there has been a steady gain for the past three years reflecting in part the propaganda which the government is making to increase the consumption of its tea. Total importations amounted to 40,265,000 pounds or almost 2,000,000 pounds more than in 1910.

Greens. The natural effect of the regulation against colored tea tended to sharply reduce the shipments to this country and only 8,800,000 pounds were brought in as compared with 15,212,000 the previous year. This amount, it should be noted, was far beyond the nost optimistic estimates, it being maintained early in the season that even under a favorable interpretation of the standards not over 3,000,000 pounds would be admitted. Very fancy prices ruled during the year, the country buying actively in the spring and paying an advance of ten cents a pound and more to secure tea for blending purposes.

Formosa Oolong.-The movement of Formosa teas to the United States under the stimulus of the expected exclusion of greens was heavy, amounting to 19,806,000 pounds or about 2,600,000 more than the previous year. Owing to the anticipated large deficiency in imports for consumption, considerable low grade tea was shipped which subsequently failed to pass inspection and was excluded. The price advanced rapidly during the fall, when it was thought that the government would rule against the admission of green tea than afloat, many in the trade loading up at an advance of 4 cents, though at the date of writing the improvement has practically all been lost.

Foochow Oolongs.-These teas continue to attract slight attention and in contrast to other kinds little stimulus was given by the excited conditions. Shipments decreased further to 2,750,000 pounds as against 3,504,000 in 1910. Values worked higher in sympathy with other teas but there was no marked interest shown by the consuming

trade.

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Congous. The imports of Congous took a sharp spurt for the same reason as did Formosas and other kinds. It could not be said that the consumption increased materially since the country still shows preference for other teas. There is a considerable surplus supply which of recent years has found a demand from London for blending purposes. The imports were 10,400,000 pounds as compared with 7,769,000 the previous year. The price was much higher when the black teas had their innings in the fall but did not hold the gain.

India-Ceylons.-The consumption of India-Ceylons continues to make rapid strides, thanks to the skilful exploitation of the merits of the tea by the government. An increase of 4,283,000 pounds tells the story of the growth of imports though this was in a measure due to the green tea situation. Of the 25,780,000 pounds brought in, 24,811,000 were black and 969,000 green, the comparative figures for the previous year being 19,959,000 and 599,000.

REVIEW OF THE WINE AND SPIRIT TRADE.

FOR THE YEAR 1911.

BUSINESS in the wine and spirit trade during the year 1911, was rather quiet. Owing to the abnormal importations during the two years previous, the arrivals at the Port of New York showed a marked falling off during the last calendar year.

Trade in American whiskies was quite active during the latter part of the year, which resulted in heavy withdrawals and the selling of whiskies at fair prices.

There was introduced in Congress, during the special session of 1911, a bill providing for an increase in outage allowance on distilled spirits. The bill reached the Senate during the closing hours of the session, but failing of unanimous consent, it was, unfortunately, defeated, but it will again be introduced. The bill has the endorsement of the Internal Revenue Department which probably insures its passage at the regular session of 1911-1912.

The prohibition movement was checked very materially during the year 1911 and many communities voted in license. Alabama returned to license after a trial at prohibition. Texas defeated state-wide prohibition in July. Indiana adopted a model license law. The result of the vote in Maine in September last, regarding the repeal of the constitutional prohibition amendment, was so close that it required a canvass of the ballots to determine which side had won. In Ohio, a large number of cities and towns have returned to the license system and the number of counties in that state still holding to entire prohibition, has been reduced from 88 to 58.

On June 10th, the National Wholesale Liquor Dealers Association held its annual convention in Chicago, and it was conceded to be the most successful in the association's history. This organization is composed of the representative wine and spirit merchants of this country, and it wields a powerful influence in conducting the affairs of the trade in this country.

The statistical tables that follow should prove of interest. While the arrivals at the Port of New York, during 1911, do not compare with others of previous years, the figures, notwithstanding, show a healthy condition of affairs in the trade. When it is taken into consideration that unusual quantities of wines were exported to this country prior to the enactment of the present tariff law, the result of the importations during the current year is very gratifying.

Bordeaux and Burgundy Wines.-Though the arrivals of Bordeaux and Burgundies at the Port of New York in bulk do not equal

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