The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1904-03-18
JApANs TOBACCO MONOPOLY.

| The tobacco monopoly which Japan
wishes to extend was established six
years ago. According to the London
Globe, II has proved anything but the
grand source of revenue expected of II.
Its promoters thought that apart from
the Increase of revenue 1t would i'm
prove the growth and enlarge the ex-
port, but In these respects also 1t has
been disappointing. There are no large
tobacco planters in this country, Nu-
merous small farmers raise each a
small quantity, hence in order to pre-
vent offenses against the monopoly laws
n small army of officials Is required,
| yet Illicit dealings and smuggling are
| by no means uncommon. In the second
year of its working the monopoly de-
partment reported the detection of over
1000 cases. The number of undetected
cases may be imagined. So far from
helping to Increase the export trade in
the leaf, the monopoly has killed it..
Prior to the establishment of the sys-
TEN the stock of Japanese leaf in the
united kingdom-the only country to
which it was eXported-waS usually
about 5000 bales, now it is nearly nil
The working of the system is as fol-
lows First of all, intending growers
must apply for permission to the mo-
nopoly department, stating the area
they propose to cultivate. When grown
all the tobacco must be brought to the
monopoly office on or before March 81
of the following year. The price to be
paid to the growers is fixed before
hand. 1t is arrived at by dividing the
crop into grades. In the year 1900 there
We're eighteen grades. Each of these
again was-divided into first, second ani
third quality. Then, again, in each
quality the leaf was separated into four
sorts, viz, top leaves, upper middle
leaves, lower middle leaves and ground
leaves, thus making PIG grades and
prices. On being brought to the local
office of the monopoly the tobacco is
inspected, graded and paid for 1t is
then distributed to other places, each
bale being marked by a little wooden
ticket giving its grade and weight, and
also a number
The leaf thus packed is sold by the
kwamme about SA pounds) on its orig
inal weight. The monopoly's profit was
originally fixed at cent per cent, but
has now been increased to $50 per cent.
Among the causes that have initiated
and will most likely continue to Mill
tate against this experiment may be
mentioned the following: The growers
chief object is to get his tobacco off niS
hands as soon as he possibly can, thus
throwing any risk of deterioration onto
the monopoly, and the earlier 1T is taken
the better for him, as the moisture con-
tanned in it means more money to him.
And now that he has a sure market he
does not take the same care as former
ly, and thus the tobacco not seldom
goes into the monopoly's warehouses in
a half-cured state, and owing to scare
ity of competent experts it sometimes
spoils and becomes worthless. 1t is be-
lieved that there are considerable duan-
titles of tobacco held by the monopoly
in this state.
To these drawbacks must be added
deterioration of the culture. An lad
valorem" profit of $50 per cent is grad
ually but surely forcing the finer kinds
of tobacco out of cultivation, because
every rise in the percentage OF profit
causes the manufacturer to usa a lower
grade; thus the standard Of tobacco
used is lowered without the revenue
being benefited. Again, while the profit
is collected on original weights, there
is always considerable shrinkage by
drying, ranging from twelve to twenty
five per cent; hence the manufacturer
has to pay $50 per cent on tobacco
which does not exist, and though the
precautions against smuggling are
largely Intellectual, the expenses OF
working the system are wastefully high.
Finally, the import of foreign leaf,
which is also in the hands of the mo-
nopoly, has been very small, the profit
being the same as on the native leaf
$50 per cent.