Chapter 12

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.

To the Hon'ble the Court of Directors of the United East India Company.

LETTER FROM MR. JONATHAN CLARKE.

London, 1st July, 1773.

Gentlemen:

I intended to have made a purchase of teas at your present sale to have exported to America, but the candid intimation given by you of an intention to export them to the Colonies on account of the Company, renders it disadvantageous for a single house to engage in that article.

I now beg leave, gentlemen, to make a tender to you of the services of a house in which I am a partner, Richard Clarke and Sons,[29] of Boston, New England, to conduct the sale of such teas as you may send to that part of America, in conjunction with any other houses you may think proper to entrust with this concern; altho' I have not the honor of being personally known to many of you, I flatter myself our house is known to the principal merchants who deal to our Province, and are known to have always fulfilled our engagements with punctuality & honor, and trust I shall procure you ample security for our conducting this business, agreeable to the direction, we may from time to time receive from you.

In soliciting this favor, I beg leave to avail myself further of the circumstance of our having for a long time been concerned in the tea trade, and to greater extent than any house in our Province, with one exception. Of the disappointment I have met with in my intended adventure, by which we are deprived of a very valuable branch of our business, and on my being on the spot to take such instructions from you as may be requisite in disposing of what you may send. And give me leave to add my assurances that the interest of the East India Company will always be attended to by the house of Richard Clarke & Sons, if you think fit to repose this confidence in them.

I am, very respectfully, gentlemen, Your most obed't & humble servant, JONATHAN CLARKE.

To the Hon'ble Directors of the East India Company.

Mr. Clarke also enclosed two letters in his favor; one from Messrs. Henry & Thos. Bromfield, the other from Mr. Peter Contencin, merchants.

June 5th, 1773.

Sir:

The bearer, Mr. Barkly, is the person whom I took the liberty of recommending to you as a person able and qualified to give you information touching the quantity of tea that is now consumed in America, and to serve the Company in that part of the World in case the Directors shall judge it proper to make any establishment there for selling tea on the Company's account, & I am, sir,

Your most obedient and most humble servant, GREY COOPER.[30]

Received from Henry Crabb Boulton, Esq.

Hon'ble Sirs:

Being informed of your resolution to export a quantity of tea to different parts of America, we take the liberty of recommending our friends, Messrs. Willing, Morris & Co., to be your agents at Philadelphia, for whom we are ready to be answerable.

We are, very respectfully,