To the Directors of the East India Company.[24]
Gentlemen:
As the Act allowing a Drawback of the whole of the customs paid on tea, if exported to America, is now passed, in which there is a clause empowering the Lords of the Treasury to grant licences to the India Company, to export tea, duty free, to foreign States, or America, having at the time of granting such licences upwards of ten millions of pounds in their warehouses, and as the present stock of tea is not only near seventeen million, but the quantity expected to arrive this season does also considerably exceed the ordinary demand of twelve months, and the expediency of exporting tea to foreign States having been considered, I presume to lay before this Court the following extracts, &c., from letters relative to the consumption in America, and calculation of advantages attending the exportation of tea by licence, and as an assurance the same are formed upon some experience of this trade (having not only been concerned in a great part of the tea which has been shipped to America since the allowance of the drawback, in 1767; but being now about to repurchase at your ensuing sale no small quantity of Bohea tea for the same account,) I am desirous, at my own hazard, to include in such purchase, an assortment of all other kinds, viz.: Congou, Souchong and Hyson, but more particularly the several species of Singlo, namely, Hyson, Skin, Twankay and First Sort, from a conviction that, by degrees, the consumption of these species, also and particularly Singlo tea, might be introduced into America, at least so far for the benefit of the Company, as in part to relieve them from the disagreeable necessity, they will, without some such vend, be subject to, of forcing that species of tea to market, before it is greatly damaged by age, provided you are of opinion the same may possibly tend to the advantage of the Company; or, should it be the opinion of this Court, an immediate consignment should take place, I am ready to give such assistance towards carrying the same into execution as may be thought most conducive to the interest of the Company, together with such security as the nature of the trust may require. In the prosecution of these consignments, I would propose to obtain a more exact computation of the actual consumption; what quantity might probably find a sale there, and the most probable means of success in such sales, whether by waiting for a demand in the ordinary way, or by public sales there; conducted upon the outlines of those made in England, by fixing a future day of payment, and by a restriction in selling any future quantity for a limited time, but particularly (under my mode) in what manner, and within what time assurances can be given by remittances being made on account of such sales.
I am, gentlemen, your humble servant,
Wm. Palmer.
London, 19th May, 1773.
Extracts from Letters, &c., to Prove the State of the Tea Trade in America.
Extract from a Letter from Boston, dated 29th April, 1771, in Answer to a Consignment made in February, 1771, at 3s. 1d., with the whole drawback of £23 18s. 7½d. pr cent.:
"Were it not for the Holland tea, the vent of English would have answered your expectation here, but the profit is immense upon the Holland tea, which some say cost but 18d., and the 3d. duty here is saved. Many hundred chests have been imported. What is shipped may go off in time, without loss, for there must be buyers of English tea; the transportation of the Dutch by water being attended with much trouble and risk."
Extract from a Letter from Boston, dated 11th July, 1771: