The Durham recorder. [volume] (Durham, N.C.) 1879-19??, 1889-01-09
The Tobacco Situation and
Outlook. ~

LA0 cuioiF0OOi t1ioPooCo oouOui
plainly with it's readers. 1t has
no interest in deceiving or mis-
leading in any matter. 1t has in
good faith earnestly advocated
the abstention policy for 1889
as the most effective common
sense remedy for the present
emergency, and still adheres to
that opinion. But candor CON-
pels the admission that The out
look is very discouraging. There
is no need OF recurring to the va
rious causes that are operating
to defeat the move; nor can there
be any question that the agita-
tion OF the measure has effected
great good, both in the advance
of the market and arousing far.
mers to thoughtful action and
investigation of the causes affect
ingtheir vitalinterest. What the
result will yet be no man can tell.
Just as the situation and public
sentiment has changed from week
to week since the agitation was
commenced, 80 will it continue to
change for the next four or six
months. Just now the markets
of the world are we'll stocked.
The statistics show that the 'S7
crop was 5000 hogsheads short
OF the previous year, or that the
markets are that much short OF
the stocks one year ago, and yet
prices are so to Hooper cent. low
er than they were one year ago.
The cause of this is said to be a
l25 per cent. crop in the barns to
glut the market. Behind this is
another cause which some people
don't care to discuss. The finan-
cial system OF the G overnmentre-
ducing the free circulating medi-
um at the rate of $70,000,000 a
year, making money scarce and
dearer, has brought the country
to the verge Of a panic, depress-
ing trade and prices of produce.
Many failures are occurring in all
lines OF business, and the specu-
lating class in tobacco have SUI
fered wofully by the collapse in
the market, leaving stemmers
and the Reggie interest practically
without competition. 1t is not
to be expected that the financial
policy or system of the Govern
ment will be changed within the
next year or two. The contrac-
ton OF the money circulation will
continue; money in proportion
will become dearer, credit limited
and produce cheaper. Poverty
may force a decrease in the con-
sumption of tobacco, but people
must eat, and tobacco is the first
article Of production to feel the
effect OF money stringency.
Steamers are now filling their
factories with tobacco at five
cents for the benefit Of the winter
drying, looking to an active Eng
lish market for strips. Aftsrtheir
factories are filed, then what?
Those who are not SO fortunate
as to sell early-and that will be
Observation-Disclosures depend on
the open markets and public
sales, where they meet the Reggie
agents with scarcely any compe.
tition. Farmers having declined
to organize for mutual protec-
ton, abstention can no longer be
relied upon as a support, while
active preparation for another
planting by those who have sold
out early will be on hand to cause
further depression. With all of
these weakening causes and the
prospect for a full 80 planting to
come in on a 125 per cent. crop,
there can be nothing to stimulate
or sustain speculation.
This is the present outlook,
and there il nothing hopeful in it
for the planters. What change
may come to alter the situation,
no one can safely predict. The