12 PRESENT STATUS OF TOBACCO INDUSTRY. 



more than meeting present demands. For these reasons caution 

 should be used in undertaking the cukure of tobacco on a commer- 

 cial basis in new territory. 



SUMMARY. 



From the foregoing considerations regarding the development and 

 the natural division of the tobacco industry into types, accoiding to 

 the conditions under which these are produced and the uses to wliich 

 they are put and the relation of supply to demand in each case, the 

 following general conclusions may be drawn: 



There are a number of distinct types of tobacco produced, each of 

 which is adapted to certain definite trade requirements. 



These differences in type are the result of the variations in soil and 

 climatic conditions under which the tobacco is grown and, to a lesser 

 degree, of different methods of production. 



The recognized tobacco-growing districts thus produce types of 

 leaf known by the trade to possess definite qualities which adapt 

 them to definite purposes. 



Present trade requirements as regards type differences are based 

 largely on the character of the tobaccos produced by sections in which 

 tobacco culture has long been an important industry and, therefore, 

 have become firmly established. 



The merits of a product from a new locality ov a new variety must 

 be demonstrated before it will be accepted by the trade, and unless 

 such a product is practically identical with an established type, with 

 reference to trade standards, it will generally fail to secure recognition. 

 Moreover, the sections in which tobacco culture is already firmly 

 established are capable of greatly increasing their present output of 

 the various types if market demands should warrant such increase, 

 hence extension to new territory should not under present conditions 

 be unduly stimulated. 



There is a permanent demand for more or less definite quantities 

 of certain well-recognized types of tobacco, but any considerable 

 increase in output above this demand reduces prices to a point where 

 the crop becomes unprofitable. 



In the few instances in which a new variety, as the White Burley, or 

 the product of new methods of growing and handling, as the bright 

 flue-cured tobacco, has temporarily commanded fancy ])rices, the 

 rapid increase in production has reduced the profits to the grower to a 

 level comparable with those for other similar types. In the case of 

 the shade-grown cigar tobaccos, which for a time were very jjrofitable 

 in Florida and Georgia, present prices are such as to leave little or no 

 profit to the grower. 



[Cir. 48] 



