33.—Nothing, perhaps, more eloquently exhibits the importance of China as a commercial factor in the world, and the necessity of foreign trade to her people, than the silk industry, which employs many tens of thousands of persons. Fifty years ago not a bale was exported, at least to England; but last year over 30¼ million taels' worth were sent abroad. Even that large quantity showed a falling away, owing to transient circumstances, of 16 per cent. over the previous year.

The Tea Trade.

34.—The staple export of China, and the one with which the Celestial Empire is most closely identified in the popular mind, is, of course, her tea.

In 1670, eighty pounds of China tea were exported into England, and, despite export duties, varying in China and in the United Kingdom from 400 per cent. on the productive cost to 100 per cent. at the present time, the trade increased to 108 million pounds in 1880.

India Tea.

35.—Since then there has, however, been a serious decline, increasing so much, from year to year, as to jeopardize the entire industry. This is declared to be mainly owing to the fortuitous development of tea-planting in India and Ceylon, and to the preference shown by the English consumer for tea of British growth.

Twelve months after the Queen's accession, 400 lbs. of Indian tea were sent to England as an experiment. In 1890 the consignment was over 100,000,000 lbs., and Ceylon sent nearly half as much. The effect has been that, while, in 1865, out of every 100 lbs. of tea sold in England 97 lbs. were Chinese and only 3 lbs. Indian, in 1890 the Chinese proportion had fallen by about 50 per cent., and the cost to the British tea drinker was also in like degree reduced.

One reason put forward by the experts, consulted by the Maritime Customs, is that "a good stout tea, that will stand several waterings, is what suits the mass of English consumers, and this India provides much better than China." The English merchants at Shanghai and Foochow affirm, however, that this greater strength is purchased by the retention of deleterious properties.

Apathy of the Chinese.

36.—It is in vain that the attention of Chinese cultivators has been called to the condition of the tea industry by all concerned. Moreover, four years ago, the Inspector-General of Customs thus addressed the Imperial authorities:—