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. 7-1/2d. 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:_
"So much tea has been imported from Holland, that the importers from
England have been obliged to sell for little or no profit. The Dutch
traders, it is said, had their first teas at 18d. pr lb., the last at
2s.; either is much cheaper than from England, and they save the 3d.
duty here. The Company must keep theirs nearer the prices in Holland.
The consumption is prodigious."
_Extract from a Letter from Boston, 2d Sepr., 1771:_
"The consumption of Bohea tea thro' the Continent increases every year.
It is difficult for us to say how great it is at present. We imagine
there may be consumed in this Province, which is perhaps a seventh part
of the Continent, 3000 chests in a year. We are sure nothing can
discourage the running of it but the reducing the price as low, or
lower, than it was two or three years past in England"
_Extract from a Letter from Boston, (Messrs. Hutchinson,) dated 10th
Sepr., 1771:_
"From a more particular estimate of the consumption we are of opinion,
the two towns of Boston and Charlestown consume a chest, or about 340
pounds of tea, one day with another. These two towns are not more than
one-eighth, perhaps not more than one-tenth, part of the Province.
Suppose they consume but 300 chests in a year, and allow they are but
one-eighth, it will make 2400 chests a year for the whole Province. This
Province is not one-eighth part of the Colonies, and in the other
governments, especially New York, they consume tea in much greater
proportion than in this Province. In this proportion, the consumption
may be estimated at 19,200 chests per annum, or upwards of six millions
of pounds. Yet at New York or Pensylvania they import no teas from
England, and at Rhode Island very little. Here we find the Dutch traders
continually gaining ground upon us. If teas do not sail with you before
the spring shippings, we fear the Dutch will carry away all the trade of
the Colonies in this article."
_Extract of a Letter from Boston, dated 11th Sepr., 1772:_
"We have delayed answering your last enquiries relative to the tea
concern, in hopes of being able to form a better judgment, but to no
great purpose; the great importation from Holland, principally through
New York and Philadelphia, keeps down the price here, and consequently
the sale of teas from England. We have set ours so low we shall have no
profit from this years adventure, yet there are 50 chests still on hand.
You ask our opinion whether the difference between the English and Dutch
teas, if it did not exceed the 3d. duty and 9 pr cent., would be
sufficient encouragement to the illicit trader? If the difference was
not greater we think some of the smugglers would be discouraged, but the
greater part would not. Nothing will be effectual short of reducing the
price in England equal to the price in Holland. If no other burthen than
the 3d. duty in the Colonies, to save that alone would not be
sufficient profit, and the New Yorkers, &c., would soon break thro'
their solemn engagements not to import from England."
_Extract from a Letter from Boston, dated 25th Feb., 1773, in Answer to
a calculation sent of the supposed price at which the illicit trader can
now import tea into America from Holland:_
"In your calculation of the profits on Dutch teas, 12 pr cent. is too
much to deduct for the risque of illicit trade. We are confident not one
chest in five hundred has been seized in this Province for two or three
years past, and the custom house officers seem unwilling to run any risk
to make a seisure. At New York, we are told it is carted about at noon
day. There is some expence in landing, which we believe the importers
would give five pr cent. to be freed from."
_Copy of a Letter from Rotterdam, dated 12th June, 1772:_
"I have to acknowledge the receipt of your favor of the 5th instant,
desiring information of the present state and prices of tea at this
market, and also what the freight and charges are thereon to North
America, to all which I cheerfully give you every elucidation in my
power, and with the greatest pleasure, as neither you nor your friends
have any thought of engaging in said trade, which, with every other
branch of smuggling, must be held in abhorrence by all good men. The
present prices of tea are--
_d._ _d._
Dutch Bohea's, in whole chests, 20 @ 22
" " half " 22 24
" " quarter " 24 25
Swedish, whole " 21 22
Danish, " " 21 22-1/2
Congo, 28 45
Souchon, 36 65
Peco, 32 55
Imperial, 49 50
Green, 48 50
Tonkay, 52 53
Heysan Skin, 60 62
Heysan, 90 95
The tare on whole chests is 84 lbs., if they weigh less than 400 lbs.,
and if they weigh 400 lbs. or upwards, then 90 lbs.; for the half
chests, under 200 lbs., tare 54 lbs.; if 200 lbs., or upwards, then 60
lbs.; for the quarter chests, under 100 lbs., tare, 23 lbs.; if 100
lbs., or upwards, then 30 lbs. The advantages on the tares are
calculated at 7 or 8 pr cent. on the whole chests, at 12 @ 13 pr cent.
on the half chests, and at 15 @ 16 per cent. on the quarter chests. The
quantity of teas on hand is not considerable, so that we do not
apprehend a decline; on the contrary, if any orders of the least
importance were to appear, the prices would go higher. There are now
about 400 chests shipping for America, from Amsterdam, from which port
the teas that go to North America from this country are always shipped,
and not from this city; they are sent to Rhode Island, and not to
Boston. Of Green teas there are hardly any left, neither fine Souchong
nor Congos, but ordinary, in abundance. The freight of a whole chest of
Bohea to St. Eustatius, one of the Dutch West India Islands, comes to
about 7-1/4s. pr chest. It is reckoned by the foot square, at 6s. the
foot to North America. It is generally £4 pr chest, New York currency,
but the captain is not answerable in any case of seizure.
Agreeable to your desire, I send you a pro forma invoice of 6 chests
Dutch Boheas, so as they come to stand on board if they were shipped
here; but as the shipping is at Amsterdam, the charges may be somewhat
higher. In regard to what they estimate, the risk that in America for
running in the teas I cannot inform you, this you may be better able to
learn from some of your New England houses, as our underwriters will not
sign against the risk of seizures; but I fancy the risk is not very
great, as the trade is carried on for so large parcels.
Pro forma invoice of 6 chests of Dutch Bohea tea:
lbs.
320 Tare of 4 chests, under 400
------
360 at 84 lb. each, 336} 2270
370 }
390 do. of 2 chests above } 516
410 400 @ 90 lb. each 180} ---- 1754 @ 24s. £2104 16
420 off 1 pr cent., 21 2
--------
£2083 14
CHARGES.
Custom and Passport, £20 4s
Sleding, 1 7
1/2 weigh money, 13 0
Brokerage, 10 8
Shipping, 3 0
Commission, 2 per cent. on £2131 13s. 42 12
--------
90 11
--------
£2174 5[25]
_Estimate of the advantages attending the Tea trade to North America, if
carried on from England:_
Observe 1st. In the following calculation, no more than half the
consumption of the Continent, as estimated by Messrs. Hutchinson, in
their letter of the 10th Sepr., 1771, is assumed as the whole, as from
the mode in which they were under the necessity of making their
estimate, it was liable to error, and 19,200 chests is more than has
been hitherto annually imported from China by all foreign companies.
2ndly. That this calculation is formed upon Bohea tea only, the species
of tea already consumed there; yet it is probable by degrees other
species might be introduced, the vend of which may be more profitable to
the Company. 9600 chests of Bohea tea, each containing 340 lbs., makes
3,264,000 lbs., if sold at 2s. 6d. Boston currency, (which is 4d. lower
than it appears to have been even at the time it was purchased in
Holland, at 15 stivers, or under 18d. pr lb., amounts to
£408,000
Deduct 25 pr cent. for exchange, 102,000
Sterling, £306,000
Deduct 6 pr cent. for commission and charges, 18,360
Annual net proceeds before the American } £287,640
duty is deducted, }
_Application of those Net proceeds to the following purposes:_
To the revenue for the duty on 3,264,000, @ 3d. £40,800
To the ship owners, for freight from England to
America, if according to the present rate of
15 pr chest, 7,200
To the ship owners for freight from China to
England, according to Sir Richard Hotham's
plan, of £21 pr ton, of 10 hundred weight, or
for every 3 chests of tea, 67,200
To the purchase at Canton, if at 15 tale pr pecul
would amount thus: say 3,264,000 lb., divided
by 133-1/3 for each pecul, makes peculs 24,480
@ 15 each, is tales 367,200, which, at 6s. 8d. pr
tale, is sterling, 122,400
Commission on the purchase in China, 6,120
Charges of all sorts, rated at 10s. pr chest, 4,600
------
248,320
To the Company for Net profit after all deductions}
whatsoever upon the most reduced } 39,320
estimate, upwards of 30 pr cent. on the purchase, }
or
------
£287,640
No. 2.
LETTER FROM MR. GILBERT BARKLY.
Gentlemen:
I take the liberty to enclose for your consideration a
memorial, regarding the establishment of a branch from the
East India house in one of the principal cities in North
America. Should the design meet with your approbation, as I
am well acquainted with the teas most saleable in that
country, shall be extremely happy in giving you every
information in my power, I have the honor to be with due
esteem, gentlemen,
Your most obedt. & very humble servant,
GILB'T BARKLY.
Lombard Street,
26th May, 1773.
TO THE HON'BLE THE COURT OF DIRECTORS OF THE EAST INDIA
COMPANY.
MEMORIAL.
_The Memorial of Gilbert Barkly, merchant, in Philadelphia,
in North America, who resided there upwards of sixteen
years, and who is well acquainted with the consumption of
that country, particularly in the article of Teas, &c._
Humbly proposes. In order to put a final stop to that
destructive trade of smuggling:
That the Company should open a chamber in one of the
principal, & central cities, of North America, under the
direction of managers, and that an assortment of teas from
England should be lodged in warehouses, and sales to
commence quarterly upon the same terms & conditions as those
in London.
By this means the merchants and grocers from the Southern
and Northern Provinces will attend the sales and purchase
according to their abilities. The goods thus brought from
home to them, and sold cheaper than they can be smuggled
from foreigners, the buyers will be bound by interest, and
think no more of running that risk, to which may be added
that they have them when paid for, immediately, for whereas,
when commissioned from abroad, they generally wait six
months before the receipt of them.
This country is now become an object of the highest
consequence, peopled by about three millions of inhabitants,
one third of whom, at a moderate computation, drink tea
twice a day, which third part, reckoning to each person one
fourth part of an ounce pr day, makes the yearly consumption
of 5,703,125 lbs. This quantity, at the medium price of 2s.
6d. pr lb., amounts to £712,890 2s. 6d.
The common people in all countries are the greatest body,
few of those in North Briton or Ireland drink tea, this is
not the case in America, all the planters are the real
proprietors of the lands they possess; by this means they
can afford to come at this piece of luxury, which has been
greatly introduced among them by the example of the Dutch
and German settlers.
The great object to be considered is to bring the goods to
market in such a manner as to afford them as cheap as they
can be bought of foreigners. Should this be the case the
success of the design is beyond a doubt.
The duty of 3d. pr lb. some time ago laid on teas payable in
America, gave the colonists great umbrage, and occasioned
their smuggling that article into the country from Holland,
France, Sweden, Lisbon, &c., St. Eustatia, in the West
Indies, &c., which, from the extent of the coast,
(experience has taught) cannot be prevented by custom
officers, or the king's cruizers, and as the wisdom of
Parliament reckons it impolitical to take off this duty, the
colonists will persevere in purchasing that article in the
usual manner if the above method is not adopted, and the
goods brought into their country and sold as cheap as they
can have them abroad.
The freight, &c., of teas to America would not much exceed
what they might cost to Holland, or any other foreign
company, particularly as the ships may load back with masts,
and other goods that might nigh pay the whole expence, and
should the Company think of exporting their overstock of
teas to Holland, or any other foreign country, it is not to
be expected that the merchants abroad would buy them but
with a view of profit. This, with freight, commission, duty,
&c., would far exceed the expence of sales and freight to
America.
If this scheme should be approved of, the sooner it is
executed the better, as the smugglers in America will soon
be laying in their fall and winter stock of teas, unless
they are prevented by this design, and as Spanish dollars
are the current coin in that country, the Company can be
furnished with any quantity they may require towards their
payment, should they require it.
The managers may be paid by a commission on the sales, and
at the same time bound to obey such orders and directions
as they may receive from time to time from the Hon'ble the
Court of Directors, and as your memorialist is universally
acquainted with the trade, and has respectable connections
in that country, he humbly offers himself as a proper person
to be one of the managers, and if required, will find
security for the trust reposed in him. Your memorialist also
presumes to mention John Inglis, Esq., of the city of
Philadelphia, as another proper person, being universally
esteemed in America, and well known in the city of London,
as a man of probity, fortune and respect.
No. 3.
LETTER FROM MR. BROOK WATSON, TO DANIEL WIER, ESQ.
Dear Sir:
The annual consumption of teas in Nova Scotia is about 20
chests Bohea, and 3 or 4 of good Common Green. Should the
Company determine on sending any to that Province, I pray
your interest in procuring the commission to Watson's &
Rashleigh's agent there, John Butler, a man of long standing
in the Province and in the Council, and by far the fittest
person to be employed, for whom W. & R. will be answerable.
At Boston I have two friends equally deserving. You would do
the Company service, and me an acceptable kindness, by
recommending them, Benjamin Faneuil, Jun., & Joshua Winslow.
The consumption at Boston is large, say at least 400 chests
Bohea & 50 of Green pr annum. The freight to both these
places I should be glad to have if you could procure it
without inconvenience to yourself.
Yours faithfully,
BROOK WATSON.[26]
4 June, 1773.
No. 4.
A PROPOSAL FOR SENDING TEA TO PHILADELPHIA.
_Received from the Hon'ble Mr. Walpole._[27]
As Philadelphia is the capital of one of the most populous
and commercial Provinces in North America, and is situated
in the center of the middle British Colonies, it is
proposed:
That the East India Company should, by the middle of June at
farthest, send to Philadelphia at least five hundred chests
of black teas, one hundred half chests of green teas, and
seventy five half chests of Congou and Souchon teas.
That they should consign these teas to a house of character
and fortune in Philadelphia, and direct the proceeds thereof
to be remitted hither in bills of exchange or specie.
That previous, however, to the teas being shipped, factors
should be appointed in Philadelphia, and the directors of
the East India Company should _immediately_ advise them of
their intended consignation, and direct them to engage
_proper_ warehouses for the reception thereof.
That the factors should be authorized to sell the teas at
public auction, (giving notice of the times of the sale in
all the North American newspapers, at least one month before
hand,) and in such small lots as will be convenient for the
country storekeepers to supply themselves with such sales.
That the factors should grant the purchasers the same
allowance of tare, tret, discount, &c., as are customary at
the company's sales in this city.
That in case the factor should be of opinion, the sales of
the tea would be encreased both in quantity and price, by
having occasional auctions in Boston and New York, in the
manner proposed at Philadelphia; that they should be at
liberty to send from time to time to Boston & New York as
many chests as they may think necessary for the consumption
& _commerce_ of those places, but that the factors, or one
of them, should always attend the sales in Boston and New
York.
That the East India Company should be at the charge &
expence of the warehouse rent in America, the cartage, and
the freight of the teas from Philadelphia to Boston & New
York, and that the factors should be allowed for receiving
and selling the teas, collecting the payment thereof and
remitting the same, a commission of 2-1/2 pr cent. on the
amount of the sales.
N.B.--It is submitted whether it would not be proper for the
directors of the East India Company to send two persons to
Philadelphia, who have been accustomed to pack and repack
teas at the India House, to the end that they may be
employed for that purpose, and in dividing whole chests of
black teas into half chests, for the greater accommodation
of the country shopkeepers.
No. 5.
MR. PALMER'S COMPLIMENTS TO MR. WHELER, ENCLOSES THE
OUTLINES OF A PLAN UPON WHICH THE EXPORTATION OF TEA ON
BEHALF OF THE COMPANY TO AMERICA TAKE PLACE. MR. P. WILL
ATTEND THE COMMITTEE WHENEVER HE IS DESIRED.
PLAN.
Admitting that an exportation of tea to America by licence
takes place immediately, in order to prevent the colonists
from becoming purchasers at the sales of foreign companies,
usually made from September to November, and consequently at
least discourage those companies from encreasing their China
trade, and also to obtain some information, though
imperfect, before the investments for the China ships of the
ensuing season are ordered. It is proposed that chests of
Bohea tea, chests of each specie of Singlo tea, together
with a smaller assortment of Hyson, Souchong, & Congou tea
be consigned to such a number of merchants conjointly as may
be thought sufficient, (for whom their correspondents in
England shall give satisfactory security,) together with
such persons as shall be thought proper for that purpose to
be sent from thence. That upon the arrival of such tea in
Boston public notice shall be given thereof through the
Continent, and also that it is the intention of the East
India Company, if the sales of this cargo should be found to
answer, to repeat such consignments, in order to supply that
Continent with teas at least equal in price to what they
must pay for the same if obtained in a way of illicit trade.
That in order to conduct these sales in the most
advantageous manner, the parties to whom the cargoes shall
be entrusted shall act as one body; that the concurrence of
the majority shall be necessary for any act therein; that
each party shall be answerable for himself only, but that no
credit shall be given to bills received for paying without
the assent of at least three of the persons so appointed;
that it shall be the object of the person who may be
appointed to go with the cargo to obtain all possible
information respecting the actual consumption, mode of sale,
species of tea that may be introduced, & opportunity of
remittances at Boston, where it is proposed the first
consignment shall be made, as it is the only considerable
mart, where tea from England is at present received without
opposition, and having so done he shall visit such other
places on the Continent as may be thought proper, but
particularly New York and Philadelphia, in order to obtain
the same information at those several places, and learn,
from being on the spot, how far the New Yorkers, &c., will
hold their solemn engagements, when they find the advantages
they will probably reap by receiving tea from England. They
having obtained all such necessary information, he shall
return to England & report the same, from which time it is
presumed there will be full employ for such agent without
any additional expence to the Company in preparing such
assortments of tea as may from time to time be required for
this market, and can be best spared from the necessary
demand of Great Britain & Ireland, and also in negotiating
the remittances that may from time to time be received on
account of this concern.
That such an appointment is absolutely necessary must appear
to every one at all acquainted with the nature of the tea
trade, not only properly to regulate these investments, but
also from time to time to preserve proper assortments of tea
for the consumption of Great Britain & Ireland, and indeed
in this particular alone could the directors for some years
past have had such information, from any person in whose
abilities & integrity they could have placed a proper
confidence, and who, from the nature of such trusts, must be
placed above the temptation to any sinister practices the
Company, from the resources of the tea trade alone, would
probably never have been involved in their present
difficulties.
LETTER FROM MESSRS. GREENWOOD & HIGGINSON.
Gentlemen:
We are informed that you have come to a resolution to ship
tea to America, we therefore beg leave to recommend our
friends, Mr. Andrew Lord, and Messrs. Willm. & George
Ancrum,[28] of Charles Town, in South Carolina, merchants,
for the consignments of such part as you may ship to that
place. Both houses are of the first repute, and have been
long established there, and also to tender to you our ship
the London, Alexander Curling, Master, to carry the same
out, who shall be ready to sail whenever you please to
account.
We are, your most humble servants,
GREENWOOD & HIGGINSON.
London, 4 May, 1773.
To the Hon'ble the Court of Directors
of the United Company of Merchants
of England, trading to the East Indies.
LETTER FROM MR. FRED'K PIGOU, JUN^R.
Gentlemen:
Being informed you intend to export teas to several
different settlements in America, to be sold there under
the direction of agents to be appointed. I beg leave to
acquaint the Court that I have a house established in New
York, under the firm of Pigou & Booth, and I humbly solicit
the favor of that house having a share of the consignments.
Philadelphia being also a port to which the Company will
most likely send teas, I beg leave to recommend Messrs.
James & Drinker, of that city, to be one of your agents
there.
Should I be so happy to succeed in my request, I am certain
the greatest attention will be paid by those gentlemen to
the Company's orders, and that the Company's interest will
be made their study in the sales and remittances. I also beg
leave to observe that if ships should be wanted for this
service, I have vessels now ready for the ports of
Philadelphia and New York.
I am, gentlemen,
Your most obed't & very humble serv't,
FRED'K PIGOU, Jun^r.
Mark Lane, 1st June, 1773.