Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1869-09-03
The Tobacco Trade-Why rot Also
Have q Mandatory

/
| Have = Mandatory
As eAforts-likely to be speedily sue
cessful, too--are making here on the part
Of the leading tobacco firms of this city
to establish permanent tobacco trade,
it seems to US that measures should ct
once be taken by some capitalists under
standing the business to enter, at once,
into the manufacture Of the article. If
such houses as are now under bond hsve
not full and ample privileges for pur-
poses Of expectation, we believe q little
effort would secure from the Government
at Washington the establishment of an
export bonded warehouse in Memphis,
which, of course, would give us sdvan-
tages in manufacturing tobacco now en-
joyed only by seaport cities. Under ex-
isting revenue laws, manufactured to-
bacco is taxed from sixteen to thirty-two
cents per pound, but leaf tobacco is ex.
empt. The operation Of the law has bad
the result of causing manufacturing es-
Establishments to spring up in every
Northern city having export bonded
warehouses. Boston and Brooklyn have
their agents now in Kentucky, Virginia,
Tennessee, Louisiana and Florida, pur-
chasing tobacco 10 the leaf for the pur-
pose Of manufacture, and are, of course,
reaping profits that could as well be re-
allied here. Memphis could net only
manufacture for homo consumption but
for export also, aud thus invite to this
market not only every hogshead Of to-
bacco raised in Middle and West Tennes-
see, but likewise all that is raised in con-
tiguous States. This accumulation Of
stock, which would inevitably result in
securing trade now unknown in CONNER
cial circles, would not only bring addi-
tional merchants into business, but would
invite purchasers from every city. in the
South. 1t may be asked: How ould q
Memphis mandatory attract more to-
bacco here than similar establishments
now in existence at Paducah, GAINESVILLE,
etc.? We answer by stating that
tobacco Intended for export is free from
any taz; that Memphis is large city,
most favorably situated on great inland
sea; and that the Government, seeing
the imperative demands Of necessity,
would give US an export bonded ware
house. Now here is the advantage to
merchants, which they can see and ap-
preciate, in having an export bonded
warehouse. Upon signifying their inten-
ton tc export to the proper officer, they
can send their tobacco IN bond to the
warehouse, free from the sixteen or thirty
two cents tax. This removes the greatest
obstacle hitherto encountered by manu-
facturers and dealers. Under existing
laws and circumstances, the dealer, in
order to obtain tobacco from inte-
rior factories, is compelled to keep
large amount of bis capital out in the
country for the purpose Of paying the tax.
Thus it ia evident the dealer or manufac-
turer can put his stock on the market un-
encountered, as exchange and insurance
is met at the warehouse by the purchaser.
And, again, if the dealer should see
proper to change his mind and offer his
stock for home consumption, all he has
to do is to pay the tax and take it out of
the warehouse. As the matter now
stands, he has to pay this before he can
move it from the factory, which not only
| subjects him to annoyance and trouble,
but absolute loss incurred in buying bills
of exchange, interest, etc. Now these
advantages can only be obtained by
making Memphis q place of maHufac-
ture, and that on no small scale either.
Establish large factory, and tobacco will
pour into Memphis from all quarters. Deal
ers, manufacturers and planters from Ken.
lucky, Tennessee, Georgia and Alabama,
will unite with rs In the effort to obtain
from the Government the required export
bonded warehouse. Procure that, and
then the tobacco trade will loom up in
Memphis to degree of Importance now
not even thought Of, except by such as
fully comprehend the subject in its entiri-
ty. Can we not hear from some of our
heavy tobacco dealers on this subject 2