The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-07-23
THE NEW YORK TEA TRADE
WHAT IT HAS DEEM AND WHAT 1T rs
lND rs LIKELY TO DE.
Tea. Cheaper than Ever IN the City-west.
ern Marts DeprivinR New York of Her
importance an importing Centre,


Tea. Cheaper than Ever In the Cty-west.
ern Marts DeprivinR New York Of Her
Importance rs an Importing Centre.
One OF the most interesting instances OF
the vcisitudes OF trade Ia found In the te. trade
In New York city. Down to thirty Eve vears ago
there were great tea moro hants who owned theif
own ships, and sent specie 10 them to China to
buy their stock, which was sold by auction to
the trade, Just as Is done In London to day.
Fifty Years ago John II. smith was As much the
king Of the tea trade as Alexander +. stewart
was later Of the dry goods trade. Old John
Hone was his auctioneer. In 1876 he made suoh
an immense importation that he overlooked
the market. and prices went down, and Jol ~ ".
Smith went down with them. About 1899 or
1910 a new direction was given to the ten tr do
by young man. James Montgomery by name.
lie hired an ONCE, fixed up sample table with
little teacuDs, such as Is seen I'm similar ufices
TO-DAY, and established himself In business as O
tea broker He made large fortune. Many
imitators followed him, until at length auction
sales of teas were entirely discontinued, and tho
business WAS done through brokers. sinRulirly
enough the cycle OF trade has rolled on unfit
now the system Of auction sales has once moro
been established. and IT successfully com-
petes with the brokers'. About two years ago Q
Boston house received teas that had been i'm
ported by an English 0rm, and sold them by
auction; Sin,e that time there have been reeii-
lar auction sales twice Or three times week.
ub'ii now the system Is hrmly redstablished.
DECLINE IN PRICES.
For the past two years prices have been very
low-lOwer than thew were before the war.
Many sales o. the cbeaper grades bave been
m &c here at less than the cost price ON board
In China No money has been made In the busi-
ness. tie resumption OF tnesystem OF auction
sales ana the g'eit fall III prices NAV be atttb-
uted to over-imp lrtation. 4 few years ago an
average OF four months Was required t. got .
c reo from China; IN old times 81 took six OF
eight months Now. 10y the Pacific NJ N route.
q rso DO got here in sixty days, and 10y tho
overland r1utn IN forty day- Those shipued NV
the Suez Cinal take from sixty T. seventy DAVIS.
The consequence Of these added taciii les in
thesa d ays OF telegraphic cummunicati, n - the
Influx - many tobbers In the tea trade Instead
~ - nding specie, business Is done on letters d
credit, Natur lily there has been more specnla-
credit have been obtained by giving security
upon tue cargo. and low prices have cont iDuted
auction business mean time helping to IN ke
prices still lower A further cause Of the low
price. Is the desire to push OF the stock og
hand, IN view 81 the excessive importation and
the fact that with age tea depreciates In value.
This decline 81 prcas has been greater ia
japan teas than Ia those OF ChiDs. The former.
which were little used before 1888, then became
suddenly popular, because Of their reiative
cnsapness and the uniformity Of tbeir quality
and classification. Eighteen million pounds Of
japan teas were Imported last year. i IA esti-
mated that these clever traders are exporting
Az recent auction sale good Japans were sold
az 49, cents aud soue found NO buyers. 1t was
known that there Is 4 large surplus of Japans,
and that they could be got whenever want 4.
Tue whole production II Japan IN 1899 TO- ac-
cordng to the circular Of Smith Baker, pub-
hshed In Yokohame, was 9910,6i3 pounds. she
crop OF 1915 was 22,2JUOvO Dounds; that of
1905. - 2O.OO pounds-an increase farming
To the tea men. There Is not the same iOcfease
In the Chinese prOdu ton. There was over-
production at one tine In consequence Of the
japanese competition, hut there has been con-
siderable decrease bv reason of the fall of prices,
Large quantities Of coal and breadstuirs and
other articles are exported to China in exchange
for te =. silks. and other Chinese products, and
tue balance OF trade is not so greatly IL China's
favor as II was.
COMPARATIVE QUOTATIONS.
The following quotations, made up from the
prices current " one OF the oldest houses in the
city. snow not only the recent decrease Ia
prices. Ut also that they are yer, much lower
than before tue war. They are gold pricess
without duty:
Young hyson. Lne........i -sjoc. ~ sd5e. sisgloo
}sS En-, Ss.Ss ,ss3s
There Ia popular impres sipn that tsts im-
ported TO this country better fui nitiiY than
now. but the contrary i the fact. Buhea, Sin-
c'pore. aud other comm n toas were il1aOfted
IN greater proportion p OF 30 years agO tnan they
are nav. \ deal Of tea wa E.uvn 10 those d ys
IN The neishborhooi Of Cantgn: hut II had oaly
the sem lance thout the flavor Of ia. Tho
yporest siaie 81 Japan that now comes 90 New
York Is preferable. Some ~ the ,ho,is that
were imported lh FORMER Years nave Gel iNclat-
cd. "cnop' Is the crou or growth u one
man It iHcWdes al the various grades ~ teas,
which are classified accord'ag 20 qDanty, tue
smaller leaves bcins known 's YOUNG Iysons
ana the otutr IN their different grades. thus,
every tea man wo IA dtitinguish the Ait-ki4
chop which Is consldersl tho best, from all
others.
Although Japans have been received. slipped
from Yokohima on the l0,h ot '>iay, no 'Iiuess
tea arrives before August, and then only green
tea Il ordinary qIalitY, iron. what 10 knaWn ~
the Fing suey district. near the seabo'rd- The
T,Ak. U fnt. nj a Ifr.
dInlrh Ulsspsled Twduk - 10 not arrive be-
for, sepirmber, and those from the Mu-Yuns
thirty years ago, when thoy all came bl sailing
vessels, IA voyage ~ six or eight mont 2, they
did not begin to arrive, generally, until Febru.
al', The meichants did not need them earlier
nj that time, when there WIS no railroad COM
mnnicstion with the West, and there was II ttls
travel until tue spring opened the cantls Inc
country merchants began to arrive IN Mar aud
April. TO buy a SIX months' stock. In the fail
tvey lMd in Il ca for the winter months Now
the demand Is dlstrioufed throughout the year,
AM smaller quantities relat. sy are oou-at at
time.
CONSUMPTION.
II IS estimated that the United Stl'e con-
sunes about 4t.5OOOJ pounds Of tea annnallyi
alone were about 81 GOO0i pounds. Inc New
liz Board Of Trade rs iimatss the surilus on
hand july II l,,OVJ,VO pounds. New * im-
p"rters nave scarcely realized the fact taat the
building Of the Pacific llrouds has greatly
lessen,d tae imp9r,anes OF New York a dis.
trioutnc pcini. Now, Western merchants send
their orders direct 10 san Francisco; and that
place and Iuieaso have taken away iauch "
Me- NOiks wholes lie trade, and ut tie same
umu the number OF dealers in New York has
In ls9 we imported only 3,lOo,oOo pounds Of
tea ir" m CHINA. III lel., i.5St.l1S uUunds; ia
la@d, Nhich WAS the year OF John II. smiths
over importation. lOa9Oo POUNDS; IL 1888,
II $780, puuuds; ~ 1879, wing to tie a OK de
OF CANTON - Tho Is iiu,u, unh g3iDiOJ podnds:
100 1870. tee next yea, 2.s0 t,h MOUNTS ia 1850,
-s,i1@,cl' pounds; IN ls5J. j.l.bhO pounds; IN
iaoi. daring the W. only l,.3it.O puuuIs ia
los, hjij,Dc pounds, In ls,2 ts.@d501 pounds.