ANNUAL REVIEW OF THE TEA TRADE OF NEW-YORK, FOR THE YEAR 1879. ALTHOUGH the outlook for the tea trade, at the close of the year 1878, was very promising, and an active distribution was looked forward to "after the turn of the year," 1879 opened with a dull market, except for "good medium" Japans, which, being in rather light supply and wanted, began to appreciate in value. But for green teas, as well as for Amoy and Formosa Oolongs, the demand was very light. In the early part of February, the question of imposing a duty of 10 per cent. additional, discriminating against teas from the United States, was discussed in the Canadian Parliament, and as it seemed highly probable that such an act would be passed, a lively speculation in kinds suited for the Canadian market began in New-York. Large blocks of low grade Japans and Young Hysons were bought and shipped into the provinces, causing a decided advance in the value of these kinds, without, however, affecting the general market. This activity in Greens and Japans continued with free settlements and rapidly improving values until, in the latter part of March, Parliament passed the discriminating bill, to take effect "at once," which, cutting off the Canadian demand, stopped business completely, and prices collapsed in consequence. The "hand to mouth" principle for purchasing, now almost become the custom of the trade, was resumed. An effort was made to lift Amoy Oolongs from the very low point to which they had declined, say 17 cents for good cargo-almost the lowest point reached in the history of the trade in this country-but beyond a slight "flurry," during which a few thousand packages changed hands, nothing resulted, and the difficulty of bringing buyers and sellers together upon any thing but Japan teas, became greater than ever. A break in the latter occurred just before the arrival of the new, toward the close of June. As the teas came in, owners showed great anxiety to realize. Purchases in the East were being made upon an unprecedented scale, threatening to double the export of the first three months of the previous season. But, despite the quantity in which goods arrived, the demand kept pace with the supply, so that by the 1st of September, at which season it was expected that stocks would have maerially accumulated, the New-York market was almost bare. At first this apparent scarcity was attributed to a great increase in consumption, due to the general improvement of all business, and consequent employment of men long idle. Later, however, it was discovered that, anticipating an active trade, retailers had bought freely, clearing off jobbers' stocks; the jobbers in turn came a second time into the market, to be prepared to meet what they supposed was to be a most unprecedented demand, and, relieving importers, led them to import more freely at greatly advanced prices; with prices at a high point, (an advance of 20 per cent. above mid-summer values,) business suddenly stopped, and then it was discovered that, although supplies at the great centres were light, jobbers and retailers, anxious to control first crop teas -which, in Japans, are much finer than later pickings-had supplied themselves for months to come, aud possibly for the balance of the season. A dull and dragging market followed this discovery, with prices gradually weakening through the balance of the year. "About the same time that this demand for Japans increased so materially, (say early in September,) all kinds of tea began to improve in value. The so-called "boom" had reached the tea market, and a lively speculation set in. Stocks of all kinds in New-York were very light, and the inquiry from the country was fairly active, with the promise of a fall trade greatly in excess of previous years, and an import in other kinds than Japans, rather less than the average. The change so long looked for in the course of tea values was believed to have arrived; supplies were in a position to warrant some speculative purchases, and buying once fairly started, soon became general, and grew more general and more excited as the anxiety to secure control of desirable goods became more manifest. At first the buying was largely confined to useful parcels, likely to be in short supply, but it was not long before it degenerated into wild speculation, during which any thing in half-chests could find a buyer at a price! Goods that had not been disturbed in warehouse for years, that had been forgotten, everybody supposing them long since consumed, were brought out, and became the subject of perhaps the most exciting speculation, owing to their low cost. Old, low grade Amoys, that had sold at 14 to 15 cents net in the auction room in the Spring, rose to 23 cents. Good cargo old teas, worth 16 cents in the Spring, sold up to 26 cents, while new Amoys, costing from 18 to 19 cents, to lay down, sold up to 30 cents. In the same way superior cargo Formosas were advanced from 31 cents, the opening price, to 40 Green teas followed Oolongs, advancing in similar proportion, followed in their turn, later, by a further advance in Japans, mediums of which rose from 28 to 35 cents. cents. Suddenly, in a day, the fever passed off. Everybody stopped buying as if by general consent. At first it was thought that this was merely a temporary rest, such as the Stock Exchange had already furnished a parallel for, and was to be promptly followed by a second" burst," not perhaps so violent as its predecessor, but that would carry prices still higher. This, however, did not come. Through November every one waited patiently for it, looking to a trade from the country to set speculation in motion again, but no trade made its appearance. Then it was discovered the country had not been idle, and that while in 30 days a half year's supply had changed hands in New-York, the country had amply stocked itself, not so much from New-York, perhaps, but Chicago and Boston, where the speculation had been less felt. December slipped away with no change in the position, save that a few holders, despairing of a renewal of activity, forced off a part of their stock at a marked decline. Within 60 days after the close of the excitement, prices had been dragged by the complete prostration of the trade, either local or from the country, almost to the basis that prevailed before the speculation began. The heavy stock carried over by usually free buyers, and carried over at the highest prices, proved a complete block to further business. It taxed resources sharply to carry it at the high prices, and no one had the courage to face the position and realize; so the activity that was at first looked upon as proving that the trade was again in a healthy position, and that the season was to be a prosperous and busy one, is likely to prove most disastrous. Few will realize any great advantage from the so-called "boom," while the trade at large has suffered great hurt from it. The year closed with great hopes for an improvement after the 15th of January, but no indications of such a change. The conspicuous feature of the year, apart from the so-called "boom," has been the further great increase in the consumption of Japan teas, as shown by the following figures. The total export from the opening of the season, 1879-80, to the 1st of January, 1880, was: Or nearly one-half of the entire quantity exported from the East, to January 1st, and yet the first cargo of these teas that came to this country arrived upon the "Benefactor," in February, 1863. RANGE OF PRICES IN CURRENCY FOR LINES OF TEAS AT NEW-YORK FOR THE YEARS 1877, 1878 AND 1879. |