TOBAQCO PRODUCTS 
Cigarettes 
Cigarette production set a new record of approximately .370 billion in 
1947, about 17 billion greater than 1946. All of the gain vras in domestic con- 
sumption since exports of cigarettes in 1947 totaled about 22 billion, 2 billion 
less than in 1946. Cigarette consumption tfas boosted to a new high in 1947 by 
high employment and largo consumer income . Since business activity is expect- 
ed to continue at a high level, domestic cigarette consumption will probably 
continue larpe in the last quarter of 1947, consumption tonped the last quarter 
of 1946 by 3 percent. New or increased State and local taxes on cigarettes 
have raised the prices to consumers in some areas. In New York State, for ex- 
ample, the State tax was increased 1 cent per oacVage of 20 on January 1, 1943. 
i'owever, higher taxe s ?re not* expected to affect consumption'' greatly. 
Cigarg 
Cigar consumption in 1947 totaled 5,631 million compared with 5,914 mil- 
lion in 1946. The droo occurred despite the hi >' r h love] of, personal income, 
two rrobabl e causes for the decline are: first, the increase in- cigar prices 
in the Fall of 1946 which probably helped, reduce cigar consumption during much 
of the first half of 1047; and second, the decline in real incomes which may 
have caused r;ome consumers to switch to cheaper forms of smoking or to curtail 
their consumption of cigars, 
During the early Fall of 1947, cigar consumption increased somewhat over 
the earlier months of 1947. However, tax-paid vri.thdrawals for the last quarter 
of 1947 were 5 nercent below the last quarter of 1946. Cigar production and 
consumption during the first half of l f] /+? probably will exceed the same period 
of 1947 when most 01 the slumo occurred. . The index of wholesale prices of 
popular priced cigars has declined slightly from the peak reached in early 1947. 
gmok in g To ba c co 
The manufacture of smoking tobacco in 1947 is estimated at IDS million 
pounds, almost the same as the 106 million pounds produced in 194-6. Both years 
are far below the 1937-41 average of 193 million pounds. If real incomes con- 
tinue to decline, some consumers may switch to pipes or roll-your-own ciga- 
rettes — cheaper forms of smoking. This may leao to rome increases in the pro- 
duction of smoking tobacco in 1943, If employment continues high during 1948, 
hov.r ever, the consumption of smoking tobacco is not likely to vary much from 
1947. 
Chewing Tobac c o 
Chewing tobacco production in- l i: >47 is estimated at 96 million pounds, 
about 11 million below 1946. Both scrap chewing and plug dropped about 9 per- 
cent below 1946 while twist was about 12 percent lower. Fine-cut showed very 
little chanqo in the last two years. ^ota.l chewing tobacco consumption i n 1947 
was substantially below the level of 119 million pounds in 1944. During 1948, 
chewincr tobacco production ard consumption are expected to be about the same 
as in 1947. 
