1 66 A^FW SOUTH WALES. 



produce. We cannot hope, or even wish, to compete in the supply of 

 low-grade tobaccos against the cheap labour of other tobacco-prodvac- 

 ing countries, and, as we can grow high-class leaf, it would not be 

 wisdom to grow the inferior grades. 



I have already spoken of the want of an organisation for placing 

 the crops of small growers on the Sydney market, so as to secure to 

 the grower the fair market value of his leaf. In the development of 

 an export trade the want of some system will be even more sharply 

 felt, especially in its earlier stages. The capitalist who goes in for 

 tobacco-growing on a large scale by hired labour may well be left to 

 take care of his own interests ; but in this Colony, at least for some 

 years to come, tobacco will chiefly be grown in plots of \ acre to 3 

 acres by farmers having families of boys, and to enable such to ship 

 their crops, some organisation will be required, and this, I think, 

 should be undertaken by the State. It is palpable that isolated ship- 

 ments of a few bales of tobacco, sent by individual growers, would be 

 at a great disadvantage on arriving at a new market, where it would be 

 quite unknown. Small lots of unknown tobacco would not be worth the 

 notice of any of the larger firms, and would only be taj^en up by a few 

 of the smallest class of manufacturers, and by them only at very cheap 

 prices. It will, therefore, be necessary to collect these small crops into 

 a large shipment (of some thousands of bales, if possible) so as to 

 challenge the attention of the largest firms of manufacturers. 



There will be difiieulties in the way, of course. Any plan which 

 proposes to establish a new source of wealth, and does not present 

 difiieulties, would scarcely be worth considering. It has been in over- 

 coming difficulties that the best features in the Australian character 

 have been manifested. 



About five years ago, in a conversation I had with Sir Thomas 

 Mcllwraith as to the best means of developing the tobacco industry 

 in Queensland, I urged strongly the advantages that would accrue to 

 the Colony if the tobacco trade was made into a State monopoly, on 

 lines somewhat similar to the French Kegie system. I pointed out that 

 the trade was then drifting into what was, or would shortly become, 

 practically a private monolopy — hostile alike to the interests of tobacco- 

 growers and to tobacco consumers. That the American Tobacco Trust 

 was using great endeavours to secure a monopoly of the Australian 

 tobacco trade, and was on the high road to success in regard to one 

 portion of it — namely, the cigarette business, which was large, and 

 rapidly increasing. I pointed out that a monopoly, owned and con- 

 trolled in the United States of America, could not be to the advantage 

 of Australians, but served only to enrich Americans at our expense. 

 Sir Thomas promised to consider the matter, but said the time was 

 scarcely opportune. 



Since then the American Tobacco Trust has virtually established a 

 monopoly in cigarettes in all the Australian colonies, and, I am 

 informed, is working to secure the control of the tobacco trade also. 



I think that a modification of the French l^egie system would be of 

 great service in New South Wales at the present time. 



Very briefly, the French Kegie system is as follows : — It is enacted 

 that the growth, manufacture, and merchandise of tobacco or any of 

 its products shall be carried on solely for the benefit of the State. 



