Morning journal and courier., 1883-07-18
The Tea Trade.
Great Depression Caused by CompetI-
 ton.

Great Depression Caused by COmpetI. ton.
 [From the Saturday Reviewl
 The annual tea race this year has resulted in the victory, for the second time in success. sion, of the Stirling Castle. She left Han kow at a. m. on May 22d, and was in dock in London at 2:3O D. m. on June 22d that is to say, she made river voyage of nearly eight hundred miles, and all the distance by
 seq, including the stoppages in the Suez ca nel from Gksaa to sEeRaon, in thiFtF-ene days, ten and one half hours-the quickest passage on record. The feat is remarkable, and justifes the congratulations that have been addressed to the builders and the own CTS of the vessel. But not the less is this annual tea race a senseless and dangerous folly. Beyond certain rate of speed every
 knot gained involves the consumption of a
 disproportionately large quantity of coal.
 Therefore the boilers are heated to danger.
 ous degree, and the whole machinery is
 strained. Sooner or later the competition is
 likely to lead to an accident that will cost
 much life and cause the destruction of valua-
 ble property. And the risk is run for no ad-
 equate advantage. The only object is to
 reach the market early. That it is com
 mercially important to abridge the length
 of time spent in transporting goods from
 the place of production to the place of
 consumption cannot be disputed. The suc-
 cess of the Suez canal proves it beyond all
 doubt if there were need of proof. For,
 in spite of the high duties levied by the
 Canal company, more and more of the
 eastern trade Is every year taking the di-
 rection of the canal. But while this is
 true the risks run in racing from China
 to London are strongly to be condemned.
 A new vessel, built upon the most ap
 proved system, and with an express view
 to speed, may escape those risks for time,
 but all her competitors are not equally
 likely to come out of the contest with safe
 ty And even if all of them are we'll bu iIt
 and well found, the rivalry is likely to en-
 gender reckless spirit of competition that
 may lead to collisions and accidents of all
 kinds. Nevertheless, we fear there is little
 chance of putting stop to this annual race
 Competition is so keen in the tea trade that
 shippers and ship-owners will strain them
 selves to the utmost to reach the market be
 fore their competitors. This year, for in
 stance, another vessel had the start of the
 Stirling Castle from Hankow by nearly two days but she was soon overtaken and passed
 by the Stirling Castle. There was in conse-
 quence extreme interest felt in London as to
 whether the Stirling Castle would reach the dock on Friday or Saturday of last week so much so that it is said some brokers remained at the dock all Thursday night waiting for their samples. If she reached the dock on
 Friday it would be possible to have samples of her tea in the market the next day, and thus those who had sent the new seasons tea by her would have the market to themselves for a whole day without the possibility of competition. On the other hand, if she did not reach the dock until Saturday, sales could not be effected until Monday and by that time the Glenogle might be in the Thames. The naere anticipation of rivals by 8 single day is so highly prized that every ef- fort will doubtless continue to be made to insure the advantage and ship-oWners will nj off Toort1v henauGa ia fhair business to meet the requirements of ship pers who employ them, and partly because they value the prestige of owning the fastest steamer afoat. Such prestige attracts freights, and, if they wish to sell their yes sels iRsures to them a good price. Until, then, some accident occurs to bring home to all concerned the seriousness of the risks they are running, and to awaken public opinion to the folly of this annual race it is hardly likely that it will be brought to an end.
 The competition of which this annual race Is one symptom has caused 8 great depres- sion in the tea trade for several years past. In the city it is generally feared that, sooner or later, there must be crash in the trade, which may bring down houses of considera. ble importance. It is said that the losses both of shippers from China and of import CTS into this country are constant and heavy, and that the number of private hqui dations is exceedingly large, while the withdrawals from the trade of persons who have lost a great part of their capital are also numerous. How far this view of the matter Is correct it is extremely difficult to say. At first sight it appears improbable that men would go on year after year in trade in which they are losing money. Usually when trade be- comes unprofitable capital is withdrawn from it. But, as matter of fact, in the tea trade the number of competitors is yearly and 1t seems scarcely likely that this would be the case if the trade was as as it is represented to be. But the answer of the city alarmists is that the number of competitions is increasing be, cause they have uothing to lose, and know that they cannot be worse off than they are. On the other hand, one of the British con suls in China points out that the argument of the alarmists is based, to some extent at least, upon mistaken premises. Tea is bought in China at certain prices for certain weights and measures, but he tells us that the weights and measures vary from ware house to warehouse; that abatements are made in the published price, and that there are also abatements made in various other ways. If this be so, it is possible that the trade is much sounder than it is supposed to be. A few years ago almost the whole of the tea drank in this country was supplied by China, but last year India supplied more than one third of the quantity that China sup piled, and in the first five months of the eur rent year the Indian proportion has risen. Further, the imports from China have re-