l62 NFW SOUTH WALES. 



» 



That the crop is a very profitable one is clear. I have put the ques- 

 tion to a great number of tobacco-gTowers as to what price would leave 

 a profit, and in almost every instance have had for reply that if there 

 was a sure sale at 4d. per lb. they would always put in an acre or two. 



Many men, now in good circumstances, have told me that they made 

 their first rise in tobacco-growing, but perhaps the most notable ex- 

 ample of success in this industry is that of the late Mr. Holtz, of Glen- 

 don Brook, who purchased a freehold farm for £800, and received 

 exactly £800 for the crop from IG acres of tobacco grown on it the 

 first year. A few years later he planted 18i acres, and sold the crop 

 for £1,340. 



It would be easy to multiply instances of large profits, but enough 

 has been said to show that in a fairly good season tobacco-growing is 

 so profitable that whenever the price reaches 6d. per lb. more is pro- 

 duced than can be sold ; a glut ensues as a matter of course, and prices 

 go down until planting ceases and the glut is worked off again. 



Is there any remedy ? Yes, I answer, more than one. The first and 

 most obvious one is to so far improve the quality of our pi'oduct that 

 it will be saleable in the open markets of Europe, so that when a crop 

 exceeds the requirements of our colonial consumption the surplus can 

 be exported at a profit. This is a remedy that will act in two ways, 

 because if our tobacco can be so far improved as to be saleable outside 

 the Colony, it will be g-ood enough to take the place of the 1,700,000 lb. 

 which we now import, and when that is the case the growers will be 

 able to demand a much higher price than heretofore. If we can raise 

 tobacco that will sell for 8d. per lb. in London, Bremen, or Antwerp, 

 it ought to be worth Is. 8d. per lb. here, because of the Customs duty 

 of Is. per Tb., which has to be paid on imported leaf tobacco coming* 

 into the Colony. As things are the tobacco-grower does not get the 

 benefit of the protection afforded by this duty, but only gets from 3d. 

 to 4d. per lb. for leaf which costs him nearly as much to grow. If 

 there is any benefit at all it goes to the manufacturers and dealers. 



Another question arises as to whether the desired improvement in 

 quality is possible, whether we have soil and climate which will produce 

 tobacco fit for European markets. 



The great variety of soils and climates in New South Wales renders 

 it a reasonable expectation that some localities may be found in which 

 very choice tobacco can be grown, and my experience here has justified 

 the expectation, affording sufficient proof that there are localities in 

 this Colony capable of producing high-class tobacco of each of the 

 three principal grades, namely, for cigar-making, for cigarette-making, 

 and for manufacturing into plug for pipe-smoking. 



I think that I have shown that until we can produce tobacco fit for 

 export we shall not be able to avoid the great fluctuations in prices which 

 have been the chief bar to the establishment of tobacco-growing in 

 New South Wales as a permanent source of wealth and prosperit}^. 

 The question iiaturally presents itself as to whether there are markets 

 abroad which would form an outlet for our surplus tobacco, and I 

 think that this question can be answered in the affirmative very shortly 

 and very conclusively. England is a great buyer of tobacco ; she 

 requires a supply of about 2,000 cwt. daily, and wants it good ; she 

 grows none herself, and has to depend on outside sources for her 



