10 PRESENT STATUS OF TOBACCO INDUSTRY. 



now varieties or new methods of production have introduced new or 

 improved types of leaf, bringing fancy prices in the market, the rapid 

 increase in their production has forced these prices down to a point 

 approaching the general level for other similar types. 



Since the reciuirements as to soil and climatic conditions and meth- 

 ods of culture and handling are very exacting in the production of the 

 finest grades of leaf, overproduction is most frequent in the medium 

 and lower grades. By far the greatest profits are realized from the 

 fancy grades of the various types. Nevertheless, the absolute quan- 

 tities of the finest grades required by the trade are much less than 

 those of the medium grades, so that under some circumstances even 

 these may bring relatively low prices. 



The average annual production of the various types of tobacco in 

 the United States in round figures is shown in the following table : 



Type of tobacco. Pounds. 



Cigar leaf - 160,000,000 



Dark export (fire cured) 210, 000, 000 



Maryland and eastern Ohio export (air cured ) 22, 000, 000 



Dark manufacturing (air cured) 65, 000, 000 



Burley WO, 000, 000 



Bright flue cured 200, 000, 000 



Perique 200,000 



847, 200, 000 

 The relative quantities of the several types, as well as the total 

 amount produced, vary considerably from year to year, depending 

 chiefly on the character of the growing season and on prevailing mar- 

 ket prices for the preceding crops. On the other hand, market prices 

 are of course strongly influenced by the available and also by the 

 visible supply. The output is thus automatically regulated to a 

 large extent by the market demands, rising prices leailing to increased 

 production, and vice versa. The important point to be observed in 

 this connection is that the areas which are at present producing the 

 various types of tobacco are capable of enormously increasing their 

 output if market demands should warrant such increase. With the 

 exception of very limited areas producing cigar-wrapper leaf under 

 intensive systems, the soils in the tobacco districts are, as a rule, 

 adapted to the growing of other important crops, and only a com- 

 paratively small portion of the available acreage is used for the cul- 

 ture of tobacco. It is true, however, that not all of this available 

 acreage will produce the finer grades of leaf. 



Tobacco is a luxury rather than a necessity, so that the demand, 

 especially in the case of the higher priced goods, is very sensitive to 

 general financial and trade conditions, periods of general business 

 depression invariably resulting in a marked decrease in the quantity 

 of tobacco consumed. 



[Cir. 48] 



