REVIEW OF THE TEA TRADE OF THE UNITED STATES,

FOR THE YEAR 1904.

GENERAL STATEMENT.

RECEIPTS AT ALL PORTS FOR THE YEAR 1904 AND THE PREVIOUS THREE YEARS.

ANNUAL REVIEW OF THE TEA TRADE OF THE UNITED STATES.

THE importation of all descriptions for the calendar year 1904 was in excess of the previous year, particularly of China grown teas, but the increase was altogether of the 1903-1904 crop, and consisted of shipments that came to hand during the first three months of the year, as the shipments from the next crop, that of 1904-1905, show a falling off a little over eleven million pounds of all descriptions. Since the removal of the duty in 1903 there is no reliable method of ascertaining the undistributed stock in warehouses. It is possible, however, to make an approximate estimate, based upon returns obtained from public stores, coupled with the knowledge that the accumulated supply is fully as large as it was the year previous. Hence the estimate given above, upon which the deliveries for consumption are based. It is also known that at the beginning of the year 1904, the supply in the hands of dealers was unusually large, and of Japans their was certainly a full year's supply. According to the table above the quantity delivered for consumption during the year amounted to 103,316,364 pounds, which is about the average yearly consumption of the country, on the basis of one pound and a quarter per capita, and a population of eighty-two millions.

The activity, which resulted from the commencement of hostilities in Corea and Manchuria between Japan and Russia continued during the first two months of the year under review, but dealers

and retailers having accumulated full supplies, and the stock in first hands having become very much reduced, the demand suddenly ceased, and from thence forward until the arrival of new tea, trade continued dull and without developing any important or interesting feature. The markets in the East for new tea, crop 1904-1905, were, however, visibly influenced by the conditions that prevailed in the home markets, and, accordingly prices for all descriptions. opened at the full parity of values ruling here, and small dealers, tempted by the profits obtained by their operations in the previous crop, made large purchases of new tea during the early part of the new season at extreme figures. Direct importations by the trade added to those of the regular importing houses, and native shippers in Japan very naturally produced a reaction, and the prices of all kinds, but particularly of Japans, declined rapidly in this market.

Formosas of the cargo grades did not show as much weakness as other kinds, owing to an expected short supply, compared with that of previous years, that became apparent during the month of August and early in September, these grades advanced in the primary markets, the equivalent of 2 @ 3 cents per pound from that paid in June and July, but there was no corresponding response

from this market.

Greens, Pingsueys, Congous and Foochow Oolongs have gradually declined from the prices first paid for new tea. Japans, particularly the lower grades, have declined in the producing market to the lowest point recorded for a number of years, and are now practically unsalable except at a loss.

Supply. The tea season in both China and Japan begins when the first pickings of new leaf are brought to market, or about the first of June in each year, and continues through the succeeding twelve months, or until the 31st of May. In dealing, therefore, with the supply as well as the course of trade, the crop year, or "season," is the most comprehensive period to take into consideration, and also makes a completed story, whereas the calendar year takes in a part of two crops or seasons, which is apt to be confusing. The picking and preparation of new leaf usually begins during the month of May, and the offerings of new crop come upon the market and are available for shipment after June 1st, the first cargoes for the United States arriving at their destination during the latter part of July or the first of August. Complete statistics for the export from the principal markets in the East for the season 1903 -1904 are given herewith, from mail advices received here up to May 15th, 1905, with comparisons for previous years:

COMPARATIVE EXPORT OF OOLONG TEA FROM ALL CHINA TO AMERICA.

SEASON.

Formosas.

Amoys

Foochows

Total.....

.lbs.

1904-05. 1903-04. 1902-03. 1901-02. 1900-01. 17,184,576 19,426.780 17,505,354 15,268,208 16,424,143

4,416,225 7,562,780 6,500,000 3,840,698 4,135,465 .lbs. 21,600,801 26,989,560 24,005,351 19,108,906 20,559,608

COMPARATIVE EXPORT OF GREEN TEA FROM ALL CHINA TO AMERICA.

COMPARATIVE EXPORT OF CONGOU TEA FROM ALL CHINA TO AMERICA.

COMPARATIVE EXPORT OF CHINA AND JAPAN TEAS TO THE UNITED STATES.

SEASONS.

Oolongs.

Japans..

Greens

Congous

Total..

.lbs.

1904-05. 1903-04. 1902-03. 1901-02. 1900-01, 21,600,801 26,989,560 24,005,354 19,108,906 20,559,608 41,727,786 45,125,510 39,391,681 86,014,708 37,816,981 20,016,591 22,359,380 17,930,813 11,489,000 14,523,682 8,652,672 8,838,806 16,175,009 9,928,571 19,077,866

lbs. 91,997,850 103,312,756 97,502,857 76,551,185 91,978,137

The available supply of tea does not depend upon crop conditions, but altogether upon the extent of the demand and the prevailing price at which it can be marketed. An increase in the demand is met by the picking and preparation of more leaves, while a decline in price and a falling off in demand results in the picking and curing of just so much less. In other words, there is practically no limit to the available supply so far as the crop yield is concerned. The grower is always ready and prepared to meet the requirements of buyers whatever they may be and however long they may last.

Consumption.-As already remarked, a rough estimate of the average annual consumption of tea in the United States is one and a quarter pounds per capita, and this does not appear to be materially effected by market conditions, the fluctuations of values or the political humbuggery of a "free breakfast table," which is trotted to the front whenever the question of a duty on tea has been under discussion. As a matter of fact the consumer paid more for his tea during the year after the duty was removed and when the free breakfast table was in full operation than he did during the period the Government was collecting a duty of ten cents a pound. The only difference in the value of tea to the consumer is that when a duty is in operation the ten cents goes into the pocket of Uncle Sam, when the duty is off and tea is free, the ten cents goes into the pocket of the grower in China and Japan. The duty, whether on or off, does not affect the cost to the consumer.

Japan. There has been a falling off in the receipts for the calendar year as well as shipments for the season, which was due to

the fact that distributing dealers commenced the year with full supplies and hence were slow in replenishing, and also to the low and unsatisfactory prices that have been prevailing for nearly the whole year. Fully twenty-five per cent. of receipts have consisted of the ventures of native shippers, who obtain a kind of subsidy or bounty from the Government in the shape of payments from the "encouragement fund," which enables them to over-bid American and English buyers in the primary markets and undersell them at the distributing points. As already remarked, prices have shown a declining tendency throughout the season compared with the cost in primary markets, and, as pointed out previously at the close of the year, shipments were only saleable at a loss. The export from Japan for the season shows a falling off of about 3,397,724 pounds. compared with the previous season.

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Greens. The export from China for the season are about 2,350,000 pounds less than for the season previous, but the full supply of Japan with which they are interchangeable entirely supplemented the supply, and market prices have been gradually declining throughout the entire season. The supply of Pingsuey was considerably short of the previous season, say about 40,000 half chests. The market for the desirable kinds was fairly maintained, although the lower grades showed a downward tendency in sympathy with the general temper of the market for other kinds.

Formosa Oolong.-The market for new season's tea opened at from three to five dollars under the prices ruling the year previous for the lower grades, but the finer kinds, under the stimulus of import orders from the smaller dealers, were advanced to extreme prices. During the summer months the market for cargo grades advanced fully two to three cents per pound, with the prospect that there would be a short supply. The prices paid for all grades during the entire season have been scarcely remunerative.

Foochow Oolong.-The shipments for the season 1904-1905 were 3,146,555 pounds less than for the previous season, but notwithstanding this shortage prices have not been materially influenced thereby, owing to the continued dullness in the market, and accordingly the shipments have been landed at reasonable figures.

Congou. The shipments have been moderate, being a trifle smaller than the previous season, owing to the high prices ruling in China, because of the active demand in the London market. The total shipments, which aggregated a little over eight and one-half million pounds, were, however, of small importance in this market.

India Tea. These descriptions are controlled almost wholly by the London market, and of our importations fully seventy-five per cent. are forwarded to Canada. Consequently the consumption in the United States is comparatively small and without significance, so far as the general market is concerned.

REVIEW OF THE IRON TRADE OF NEW-YORK,

THE summer and fall of 1904 were characterized by a rapid recovery from the depths of depression into which the iron industry had been plunged during the latter part of 1903. Until well into summer it was the development of the general consumption of the country at large which was the backbone of a very gradual improvement. It was only towards the close of the year that the railroad interests whose purchases had been exceedingly light put in requisitions for rolling stock and track material, but it was too late to seriously affect the actual deliveries. How light the purchases of the railroad interests were during 1904 is shown by the statistics of the car-building industry. It is estimated by competent authority that the number of freight cars built in 1904 was about 61,000, as compared with 163,000 in 1902, and 153,000 cars in 1903. It is shown, too, by the production of steel rails, which fell from 2,992,477 gross tons in 1903, to 2,284,761 gross tons in 1904. So far as the primary branches are concerned they adjusted themselves rapidly to the varying phases in the demand, this being admirably illustrated by the monthly statistics of the production of pig iron, collected by The Iron Age. These deal with anthracite and coke pig iron only, and do not include charcoal pig iron.

The statement of stocks on hand deals only with the accumulations of the merchant furnaces, whose production during the year was slightly in excess of 6,000,000 tons, while the furnaces connected with steel works whose stocks, being for their own use, are, therefore, not taken into account, made in 1904, 10,200,000 tons. On January 1st, 1905, the stocks reported by the merchant furnaces aggregated 403,000 tons.

* Increase. † Decrease.