Tagged: colonial history

The Trade Deficit Britain Closed With Opium

Britain drank Chinese tea and China wanted almost nothing Britain made, so the bill was settled in bullion, roughly £30 million of silver between 1760 and 1800. The East India Company's answer was to build a second consumer market on the other side of its own empire, and it worked exactly as a balance-of-payments device is meant to.

The Tea Cartel That Worked, and the Farmers It Was Built to Keep Out

In 1933, India, Ceylon, and the Dutch East Indies ran the one tea cartel that ever actually moved the price. The same years, a Kenyan law barred African farmers from growing the crop at all. Both restrictions ended within about a year of each other.