PRESENT STATUS OF TOBACCO INDUSTRY. 11 



In the cigar tobaccos, efforts to produce a wrapper leaf to compete 

 with the imported -Sumatran have led to the development of the 

 shade-tobacco industry. Because of the high cost of production this 

 tobacco does not compete with the medium and low-grade domestic 

 wrapper grown by the ordinary methods, so that the demand is 

 limited and the acreage necessary to meet this demand is very small. 

 The annual imports of wra]){)er leaf amount to only about 7,000,000 

 pounds. Domestic fdler leaf does not yet compete successfully with 

 the imported Cuban. There is a fairly constant demand for good 

 domestic filler, but at prices limited by fixed retail prices for domestic 

 cigars. The demand for these tobaccos, however, is particularly 

 affected by general business conditions. 



In the dark export tobaccos there has been a steady increase in 

 demand in the past, but it is noteworthy that many of the foreign 

 countries which have been the chief importers of these types are now 

 active in promoting the home production of tobacco, and it is quite 

 possible that future demands for export will be confuaed more and 

 more to the relatively high grades. 



The consumption of chewing and smoking tobaccos in this country- 

 shows a steady increase, and this of course has required increased 

 quantities of Burley and other manufacturing types. On the other 

 hand, tlie prices of Burley and of some of the dark air-cured manu- 

 facturhig tobaccos have steadily declined, until within the past few- 

 years concerted action has been undertaken by the growers to curtail 

 the production. 



With the bright flue-cured tobacco, the product of the old belt, as a 

 whole, appears to be preferred over that of the new belt, and under 

 present conditions this section is largely dependent on this product as 

 a money crop. The greater portion of the new belt is adapted to 

 cotton or peanuts, and only a small portion of the available acreage 

 is utilized for growing tobacco. The relative production of these 

 money crops depends largely on their comparative market prices. 



From a consideration of these facts concerning supply and demand, 

 it is not deemed wise under existing conditions to stimulate the culture 

 of tliis crop in sections wdiich are not already growing it commercially. 

 Probably no other crop of efjual money value is so strongly influenced 

 by soil and climatic conditions as regards character and quality of prod- 

 uct and there is no market demand for types of leaf not already well 

 known to the trade. Even if a superior type can be produced, a place 

 must be found for it on the market and the trade must be assured of 

 an adequate and permanent supply. These are obstacles which it is 

 generally diflicult to overcome. As regards the types of leaf already 

 well recognized by the trade, the old tobacco districts are capable of 



(Cir. 4SJ 



