Tea had not been in use many years before the government discovered in it a valuable means of replenishing the national exchequer. Accordingly they passed a law, in 1660, imposing a duty of eightpence per gallon on all tea made and sold in coffee-houses, which were visited twice daily by officers. It would occupy too much space to describe subsequent legislation, but the subject appears at times to have been almost as perplexing as the liquor traffic to the various governments.

The tea duties have, however, always been excessively heavy, and it is therefore not surprising that a great deal of smuggling was carried on in the "Good Old Times," and that deceptions were practised to a very large extent by unscrupulous tea-dealers. Parliament at last interfered. In the reign of George II. an Act of Parliament recites that "several ill-disposed persons do frequently fabricate, dye, or manufacture very great quantities of sloe-leaves, liquorice-leaves, and the leaves of tea that have before been used, or the leaves of other trees, shrubs, or plants, in imitation of tea, and do likewise mix, colour, stain and dye such leaves with terra japonica, sugar, molasses, clay, logwood and with other ingredients, and do sell and vend the same as real tea, to the prejudice of the health of his Majesty's subjects, the diminution of his revenue, and to the ruin of the fair trader." The Act then declares, "that the dealer in and seller of such sophisticated teas shall forfeit the sum of ten pounds for every pound-weight." In a report of the Committee of the House of Commons, in 1783, it is stated that "the quantity of fictitious tea annually manufactured from sloe, liquorice, and ash-tree leaves, in different parts of England, to be mixed with genuine teas, is computed at four millions of pounds, and that at a time when the whole quantity of genuine tea sold by the East India Company did not exceed more than six millions of pounds annually." The Act does not seem, however, to have done much to check the evil, for in the year 1828 the existence of several tea manufactories was disclosed, the penalties for defrauding the revenue amounting in one case to 840l. It is impossible to estimate the amount of smuggled tea consumed, but the official accounts indicate a large consumption.

It appears that from 1710 to 1810 not fewer than 750,219,016 lbs. of tea were sold at the East India Company's sales, the value of which was 129,804,595l. The duty alone amounted to 104,856,858l. In 1828 the [Pg 137]
[Pg 138]
[Pg 139]revenue amounted to 3,302,252l. The exclusive right of trading in tea, so long enjoyed by the East India Company, terminated on the 22nd of April, 1834, when an alteration was made in the method of collecting the dues. Under the old system a tax was levied on the value of the tea; but under the new it was levied upon the weight and quality, the duties ranging from 1s. 6d. on Bohea, and 3s. on Pekoe and other kinds.[7]

The transfer did not, however, secure the approval of the tea-dealers, who continued to petition Parliament for a reduction of the duty. A society was formed at Liverpool with this object in view, and in 1846 its officers published a letter addressed to Sir Robert Peel, contending that, as tea was an object of the first importance to the labouring classes, "the duty on it should be such in amount and principle as to induce the greatest consumption." The memorialists argued:—

In the following year, 1846, a towns' meeting was held at Liverpool for the purpose of "taking into consideration the measures which should be adopted to procure as speedily as possible a material reduction of the present duty on tea." A resolution was passed declaring the duty of 2s. 2d. exorbitant, impolitic, and oppressive. In supporting a resolution that a reduction of duty would remove inducements to intemperance and thereby diminish crime, an employer of labour felt assured that if the legislature would cheapen tea, coffee, sugar, and soap, it would give the means of prolonging lives instead of shortening them, and keep a man at his own fireside instead of his going to the tavern, with the ten thousand evils in its train. The speaker, however, caused considerable amusement when he expressed the opinion that if the Irish population could get tea at a cheap rate, they would, to a considerable extent, abandon whisky. Put a cup of tea and a glass of whisky side by side, we venture to say that ninety-nine out of every hundred Irishmen would prefer the whisky. "An Irishman," says Dr. Pope, "was requested by a lady to do some work for her, which he performed to her complete satisfaction. 'Pat,' she said, 'I'll treat you.' 'Heaven bless your honour, ma'am,' says Pat. 'What would you prefer? A pint of porter or a tumbler of grog?' 'Well, ma'am,' says Pat, 'I don't wish to be troublesome, but I'll take the one awhilst you're making the other.'" This is, we fear, a type of the average Irishman, whose love of whisky is the greatest blot upon his character.

Notwithstanding the great outcries against the Government duty, the consumption of tea steadily increased, and in 1844 the duty alone amounted to 4,524,193l. There were, it must be admitted, some inequalities in the system of taxation. The question attracted the notice of Mr. Leitch Ritchie (then editor of Chambers's Journal), who suggested that the moral reform and social improvement for which the present age is remarkable have had their basis in—tea. But if Great Britain is so large a consumer of tea, why, he asks, "do crime and ignorance still prevail amongst the body of the people? Because," he answers, "the poorer classes still drink bad tea, imitation tea, or no tea at all. The tea that is now in bond at tenpence pays a duty of two shillings and a penny, while the tea that is sold in bond at several shillings pays no more. Thus the poor are charged at least three times more, according to value, than the rich." An illustration of this anomaly was given by a speaker at a second meeting held at Liverpool in 1848, for the purpose of securing a reduction in the duties. "Tea," says the speaker, "must be considered in a two-fold light, not merely as an article of luxury to some, but as an article of necessity to all classes of her Majesty's subjects. But do all classes procure this necessity on equal terms? No; for though it is in general use with the peer as well as the peasant, we yet find the same duties levied on teas of the lowest as on teas of the highest description."

It was urged by those who defended the policy of the Government that tea was a stimulant, and that therefore it was injurious. "We admit the fact," said the Rev. Dr. Hume, "but we strenuously deny the inference. A stimulant is not necessarily injurious, though the more violent always are. Heat is a stimulant, and so is water in particular circumstances; food is a stimulant; the light of heaven is a stimulant, whether in animal or in vegetable nature, and so is the beaming countenance and kindling heart of a sympathetic friend."

Neither meetings nor memorials, however, seemed to have any influence with the Government; but in 1852 Mr. Disraeli proposed to reduce the duty on tea to 1s. 10d., and ultimately to 1s., the reduction to be spread over six years. This reduction, with other reductions of the dues on shipping and the malt tax, would have involved a loss of more than 3,000,000l., to supply which, he proposed, among other things, to impose the income tax on industrial incomes over 100l. His proposals were, however, strongly opposed by Mr. Gladstone, and rejected by a large majority. When, however, Mr. Gladstone returned to power, in 1853, he proposed the very same reductions which he had when out of office rejected. He proposed to reduce the duty to 1s. 10d. during the following year, and by 3d. a year until the limit of 1s. was reached. Including reduction of other taxes, the loss to the revenue would have amounted to 5,315,000l., which he proposed to meet by renewing the income tax for seven years, extending the stamp duties, and increasing the duty on spirits; but owing to the Crimean War the proposed reduction was not effected. The expenses of this war were so heavy, amounting to 70,000,000l., that the duty on tea was increased 3d. a pound.

When the war was over, Mr. Gladstone desired that the added duties on tea, sugar, and other necessaries of life, should be taken off; but on the 6th of March, 1857, "the Chancellor of the Exchequer, Sir George Lewis, announced a modification of the Budget resolutions so far as the tea duties were concerned, and proposed that the amount of the tax, which he had arranged for three years, should be applicable for one year only. Mr. Gladstone moved an amendment to the effect that after April 5, 1857, the duty should be 1s. 3d., and after the 5th of April, 1858, 1s. The amendment was negatived by 187 to 125, and the Chancellor of the Exchequer's resolution, fixing the duty at 1s. 5d. was carried." In 1865 the duty was reduced to 6d. under Mr. Gladstone's Government, and at this figure it remains. But the attention of the Chancellor of the Exchequer has recently been called to the disadvantage under which the Indian tea-industry is placed by the imposition of the English Customs duty of 6d. per lb. on all tea imports, and the object of the memorialists was to induce him to consider the expediency of abolishing or modifying this duty when framing his financial budget. It was pointed out that the Indian tea-industry is greatly in want of such relief, as evidenced by recent Calcutta reports showing the market value of the shares of the joint-stock tea companies.

Out of a total of 116 companies forty-six only gave any dividend on the crop of 1882, and of these forty-six only twenty paid over five per cent. Of the seventy which gave no dividend not a few have paid nothing for several years, and many are struggling on under the incubus of borrowed capital, with the hope of improvement in the markets, the cause of this depression being directly traceable to the heavy fall in prices during the last few years. The opinion was expressed that if the trade could be relieved of the present heavy tax of from 50 to 100 per cent. on the value, it might be fairly assumed that a reduction of, say, 4d. per lb. to the consumer would lead to a large increase in the consumption, and leave a return of the remaining 2d. per lb. more to the producer, which would in many cases prove a working profit to gardens now being carried on at a loss.

Reference was also made to the argument, of which doubtless the Chancellor of the Exchequer is aware, that inasmuch as the average value of Indian teas is higher than that of China teas, the present duty weighs more heavily on the latter, and consequently that its abolition would deprive the Indian importer of a certain amount of protection; but at the same time the opinion was expressed that a general reduction of prices to the consumer all round would induce on the part of the public a more general preference for the superior quality of the Indian produce, and that the increased demand for it thereby engendered would more than counterbalance any loss of protection which might be sustained.

As will be seen from the following table of the duties, the consumers of tea contribute very largely to the revenue of the country:—

The annual expenditure on tea amounts to about 11,000,000l. Large as this amount appears, it sinks into insignificance when compared with the expenditure upon intoxicating drinks. During the last year it amounted to no less than 125,477,275l. There are few who would regret to see this formidable amount reduced to a fourth of its present dimensions; and no one surely will deny that if everybody drank tea, instead of alcoholic drinks, a great reform in the habits of the people would take place. Drunkenness, and its attendant evil, pauperism, would cease; plenty would take the place of poverty, joy for sadness, health for sickness; and happiness would reign throughout the land.

Reference has already been made to the fact that England stands next to China as the greatest tea-drinking nation; and it appears that the working classes consume the largest proportion of tea imported. Professor Leoni Levi compiled in 1873 an elaborate estimate of the amount of taxation falling on the working classes of the United Kingdom; and in his report he shows that from consumption of tea alone they contributed 2,200,000l. to the revenue, as against 900,000l. by the middle and upper classes. At the present time, however, the working classes contribute over 3,000,000l. as their proportion of the duty upon tea. A clearer light is thrown upon their contributions to the national exchequer by the following table showing the proportion for every pound of taxes paid from each item:—

The Professor classes tea as a necessary, but confesses that it is difficult to define whether certain articles in daily use are necessaries or luxuries. Many articles, he points out, such as white bread, tea, sugar, which not long ago were considered luxuries, are now, with the improved condition of the people, regarded as absolute necessaries. He refers, in particular, to the effect of indirect taxes in greatly enhancing the cost of the taxed article to the consumer. "The wholesale import price of tea, for example, may be 1s. a pound, and upon this there is 6d. duty. But immediately as it passes from the importer to the dealer, and from the dealer to the retailer, the whole price, duty paid, is charged first with ten, and then with thirty per cent. to meet expenses and profits of trade, whereby the retail price is increased probably from 2s. to 3s. 6d. or 4s. per lb. This trading, therefore, constitutes so much extra tax, and it is a tax which the working classes pay to the middle and higher classes, through whose hands such articles pass." Whether we shall ever have a free breakfast-table, it is impossible to say; but if the tax on tea were abolished, it is obvious that it would be necessary to impose some other tax, probably even more objectionable.

[7] Hyson means before rain, or flourishing spring; therefore it is often called "young Hyson." "Hyson Skin" is composed of the refuse of other kinds, the native term being "tea-skins." Refuse of still coarser descriptions is called "tea-bones." Bohea is the name of the hills in the region where it is gathered. Pekoe, or Poco, means "white hair," or the down of tender leaves; Powchong, "folded plant;" Souchong, "small plant." Twankay is the name of a river in the region where it is bought. Congo, from a term signifying "labour," for the care required in its preparation.—"Notes and Queries," Third Series, vi. p. 264.