118 CIRCULAR 249, U. S. DEPARTMENT OF AGRICULTURE 
increase in total population would ordinarily cause an increase in the 
total number of cigarettes consumed. Not until the per capita 
consumption shows a permanent decline and that decline becomes so 
pronounced as to outweigh the effect of increasing population can it 
be said that the requirements for cigarette types of tobacco are on 
the downgrade. 
Times of serious economic depression have observable effects upon 
the form and rate of tobacco consumption. ‘This is clearly shown in 
figure 45, which illustrates the relationship between industrial activity 
190 
es : 
Consumption per ee 130 
capita of tobacco 
products ~ 
100 
TOBACCO PRODUCTS PER CAPITA (POUNDS) 
Industrial production per capita* 
(1935-39=100) 
INDUSTRIAL PRODUCTION PER CAPITA (PERCENT) 
ae 
1900 1905 1910 1915 1920 19725 1930 1935 1940 
* FEDERAL RESERVE BOARD INDEX NUMBERS, ADJUSTED FOR CHANGES JN POPULATION 
BAE 24111 
Figure 45.—This chart shows the intimate relationship between the per capita 
consumption of tobacco products, considered as a total, and industrial produc- 
tion per capita. The statistics of individual products entering into total to- 
bacco consumed indicate that in times when great industrial activity creates 
widespread employment, consumption runs strongly to cigarettes and cigars; 
and conversely, in times of slackness in industry and widespread unemploy- 
ment, consumers not only consume less tobacco, but shift noticeably to less 
expensive tobacco products. 
and tobacco consumption. For example, the depression of 1920 
resulted in a material decrease in the consumpticn of cigarettes. 
Thereafter cigarette consumption increased at an average annual rate 
of about 11 percent until the early part of 1931. At that time the 
depression was becoming serious, and by 1932 cigarette withdrawals 
had decreased to 103.6 billions, or more than 13 percent below 1930. 
During the same period the decline in cigar consumption already in 
evidence was accelerated by the reduced purchasing power of con- 
sumers. From 1933 to 1936 improved economic conditions led to 
increased cigar consumption. On the other hand, during 1931 and 
1932, when conditions were especially bad and cigars and cigarettes 
were showing their greatest declines, the consumption of smoking 
tobacco in pipes and hand-rolled cigarettes increased materially. It 
is clear that in times of widespread unemployment there is a tendency 
either to use less tobacco, or to consume tobacco in a less expensive 
form. 
