A few figures may be given here. The imports into Great Britain of Indian Teas have been yearly increasing, till in 1873 they amounted to 18,367,000 lbs., and, judging from the estimate out here of the produce this year, viz., 1874, the imports into Great Britain in 1874 will not be far short of 20,000,000 lbs.[86]
But as the annual consumption of Tea in the United Kingdom is not less than 130,000,000 lbs., India is still very far from supplying enough to give a mixture of three-fourths Chinese and one-fourth India Tea.[87]
The finest Chinese Tea sells in London in bond at 2s. 4d. to 2s. 6d., while the finest Indian in bond fetches 3s. to 3s. 6d.[88]
What, then, will be the future of Indian Tea? It is an important query. The industry is one which, if successful, might attain to wide limits, and help not a little to relieve the Indian State Exchequer, while it would afford occupation to many a class of Englishmen who at present look about in vain for employment.
Tea speculation has passed through the first two preliminary phases to which most new ventures are liable. First, we had the wild rush, the mad fever, when every man thought that to own a few Tea bushes was to realise wealth. In those days existing plantations were bought at eight and ten times their value; nominal areas of 500 acres were paid for which, on subsequent measurement, proved to be under 100; new gardens were commenced on impossible sites, and by men as managers who not only did not know a Tea plant from a cabbage, but who were equally ignorant of the commonest rules of agriculture. Boards highly paid, with secretaries still more liberally remunerated, were formed both in Calcutta and London to carry on the enterprise; and, in short, money was lavished in every conceivable way, while mismanagement ran rampant in each department. It is not strange that the whole thing collapsed: the wonder is it did not do so earlier.
The second stage was then entered upon. Numbers had been bitten, and the idea, once formed, grew apace, that Tea could not pay at all. Everyone wanted to sell, and down went all Tea shares to a figure which only increased the general panic. Many companies, and not a few individuals, unable to carry on, had to wind up and sell their estates for whatever they would fetch. Gardens that had cost lakhs were sold for as many hundreds, and the very word “Tea” stank in the nostrils of the commercial public. A few of the best companies held on, as also such individuals embarked in the speculation as could weather the storm; but some of the companies were bowed down with heavy debts, and it has been with many, from that cause, a losing race ever since.
This great smash occurred in 1867. I purpose, therefore, to examine into the future prospects of the industry, now that time has been given to test its vitality. Naturally the mistakes made at the first have not been repeated since, so the speculation has had more or less of a fair chance to show what it can do.
In the first place, the share list of Tea companies in the public prints does not at all represent the true position of Tea property to-day. It only gives the dividends declared and the value of the shares in those few limited liability companies which were able to weather the storm, but who, in common with all the others, were bowed down with debt, and are suffering up to the present time, both from that and the numberless mistakes made at the commencement of the enterprise. There are a few notable exceptions, even among the Tea companies. Some of these have done very well, pay large dividends, and are quoted at a high premium, which shows that Tea can and will pay even with the disadvantages attached to limited liability companies. I mean that in these latter work is always expensively done, and that much of the profits are swallowed up by secretaries, directors, &c., besides which, generally from interested motives, the Teas are sent home for sale which private planters know from experience is not the best plan.
But to return to the share list. The very many gardens held by firms or private individuals are absent, and inasmuch as many of these were begun more lately, and consequently, the blunders made in other gardens were avoided, it is evident that their position, if it could be ascertained, would give the true picture needed.