THE TEA SHORTAGE

Evening Post, Volume CXXVIII, Issue 118, 15 November 1939, Page 10

THE TEA SHORTAGE

NOT DUE TO WAR

STERLING FUNDS POSITION

THE NEXT PERIOD

An assertion that the war had; had^ nothing to do with the present shortage of tea, and that the shortage was due almost entirely to inability to obtain . sufficient sterling; was ,made ;today.by an importer in a large-way of business. It was possible, however, that circumstances arising out of the war would have some effect on future supplies, mainly owing' to the irregularity of.shipments. '.'.-.-

The importer explained that the best time to place orders for tea 4 was either in February or August, y Normally, then, orders to coyer the present period would have been placed t "an August last, prior to the outbreak1 of war. If the necessary' sterling funds 'had been available at that time,. there would have been ample tea in the country to cover ;all requirements.. The7sterling required was not available, arid, the result was the present shortage. Merchants had been unable to % build, up their stocks. It; was possible, too, if sterling had , been available to. ppver the normal August orders,.that it-would not have been-founds necessary to advance prices as soon as had been done. ~-. . . \ ' .

, It was also pointed out that irregularity of shipments might have an effect on future supplies of tea. Prior to the. war shipments came to hand every fortnight, but nowiniporters did hot know when shipments would arrive. They .were, working .more or less in the dark. .*..-.,

IMPORT LICENCES.

Import licences for tea for the third licensing period of six months from January 1 next appear to have been, issued to most merchants without reduction'from the value imported iri the corresponding term in 1938. 7 This is interpreted as the basis for the statement by the Minister of Customs '(the Hon. W. /Nash) that the Goverririient had made arrangements to ensure that all the tea required for some months would be available.. , Merchants have no information justifying an impression that the Gov 1 ernment is importing tea direct through the Marketing Departrnerit, and they point out that while they may be 'permitted under their licences to import tea up to the, 1938:yalue of their, importations,, the quantity they, would thu^ secure would be much reI duced. Through price rises less tea can be' purchased today "than was • possible in 1938-forTthe same amount of money.

. While admitting the chances of a reduction- in 7 quantity; in the next licensing period, One large importer ex-pressed-the view that the shortage on the market would,disappear after the middle of next: month.v Some importers might be awkwardly placed for supplies because of comparatively low imports in 1938, but that position should not be general. Difficulties in finance had caused scarcities of supplies in the present licensing period. So far as the third period was concerned, normal remittance of moneycpuld not be expected under war conditions, but there was every reason to believe that the Reserve : Bank . would meet the situation. . . . ■