tion, and that "tbey prefer a low-priced article whenever they think that such 

 may possibly answer their purpose." 



2d. — T/te duties and monopolies our tobacco is suhjcct to in foreign nations. — In 

 considering the opposition our tobacco encounters in foreign nations from 

 their heavy duties and oppressive monopolies, it is necessary to examine the views 

 of the Commissioner of Internal Revenue, as to the effect the proposed excise 

 would have on these duties and monopolies. He remarks: 



"In 1860 the tobacco crop wa-;, in round numbers, four hundred and twenty- 

 eight millions of pounds. Last year it was only two hundred and eighty mil- 

 lions of pounds. This year, notwithstanding the extensive planting in the 

 northern and middle States, the crop is estimated in the last report of the Agri- 

 cultural bureau at only two hundred and fifty-eight millions, being still one hun- 

 dred and seventy millions of pounds less than in 1860. While the domestic 

 production is thus diminished, the foreign demand has been constantly increas- 

 ing, and it will not be likely to be seriously affected by the difference in price 

 which its exportation, subject to our excise on the raw material, will occasion. I 

 therefore beg leave to submit the proposition that tobacco be taxed in the leaf 

 in the hands of the producer, and that no drawback be allowed on its exporta- 

 tion in that shape, so that the cost to the foreign manufacturer may be increased 

 to the extent of our excise. The tax on tobacco in the leaf, with all the stems 

 on, might, I think, be fixed with advantage to the revenue, and without injury 

 to the producer, at twenty cents per pound; a light tax, varying from five to ten 

 or twelve cents per pound additional, might be imposed on the manufactured 

 commodity." 



The position assumed in this extract is, that foreign nations are dependent on 

 our tobacco; therefore, they must buy it, and what tax we add will be de- 

 ducted from their duties ; hence the foregoing demand will not be seriously 

 affected; that this demand is increasing, whilst our production is so much less 

 than in 1860 — therefore the law of supply and demand justify this excise 



The facts already stated show that foreign nations are not dependent on 

 American tobacco ; that as prices advanced from a temporary scarcity, they 

 purchased "substitutes," the growth of the continent "threatening to supersede 

 the American growth altogether." 



In a general way, I have shown that the f )reign demand, during the last cen- 

 sus decade, scarcely increased at all. Great liritain is our largest customer, 

 and its purchases exhibit the fact of but a slight increase, and then only at fall- 

 ing rates, as will bo seen from the following table. 



English imports of foreign and American tohacco, and Nc?o York prices. 



This table is significant. It shows how little is the dependence of Great 

 Britain on us — buying about one-half from us, only when prices are at iLe 



