l6o A'^IF SOUTH WALES. 



Many localities in New Soutli Wales liave at various times enjoyed 

 a good reputation for the tobacco they have grown — the Hunter River 

 and its tributaries, notably Jerry's Plains, Paterson, Alleyn Brook, the 

 Williams, Cllendon Brook, Bandon Grove, and the district around 

 Dungog. At one time tobacco seemed to have established itself as a 

 permanent industry at and around Tumut, which place has often been 

 credited with having produced the best tobacco yet grown in the 

 Colon}". Very large plantings were also made in the Tarcutta district, 

 lying west of Gundagai. The district around Bathurst also grew 

 large crops of tobacco, while a great portion of Nemingha Flat, near 

 Tamworth, was at one time under this crop. 



The northern coastal district has always sent more or less tobacco 

 to Sydney. 



But of late years tobacco-growing has lost favour with Australian 

 farmers, and has fallen into the hands of the Chinese, while the 

 manufacture of tobacco, which was carried on in a number of small 

 factories iu country districts, has ceased almost entirely, and is now 

 for the most part concentrated in Sydney. 



The farmers and those who formerly manufactured tobacco on a 

 small scale are of one mind in denouncing the Tobacco Acts of 1884 

 and 1885 as the cause of what they term the ruin of the industry. I 

 have constantly endeavoured to combat this opinion, which is not 

 founded on a true appreciation of the facts. I do not deny that the 

 imposition of the excise duty, with its accompanj'ing regulations and 

 restrictions, has had some influence in producing the result ; but I do 

 say and maintain that there have been many other causes at work 

 exerting much greater force. The small factories in country districts 

 were bound to go down before the competition of the big firms in 

 Svdney, which have a greater command of caj^ital, cheaper and more 

 constant supply of labour, and whose working expenses and cost of 

 supervision are, in proportion to tuimover, 50 per cent, less than those 

 of the small manufacturer. 



The same thing occurred in England at a time when the tobacco 

 trade was most prosperous. During a period when the consumption 

 of tobacco more than doubled, the number of manufacturers' licenses 

 issued decreased by nearly 10 per cent. The small concerns were 

 swamped by the competition of the big ones, and had to shut up. 



Our farmers complain that they cannot now get a fair price for 

 their leaf, and some of them lose their tempers when I tell them that 

 this is the consequence of their own action and the effect of a law 

 which has always been in operation, and can never be repealed or 

 altered. 



Paradoxical as it may at first sight appear, I have no hesitation in 

 affirming that the exceeding profitableness of the crop has had more 

 to do with what is called the ^'Kuin of the Industry" than all the other 

 causes put together. It is the action of a natural law that, so long 

 as a crop is unusually profitable, more people plant it every year. 

 AVhen tobacco is at 7d. or 8d. per lb. ''the farmer plants who never 

 did before, and he who always planted plants the more," and if the 

 quantity required for consumption remains the same, or does not 

 increase in proportion, the supply soon overtakes the demand, and 

 prices have to come down. 



