The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1909-09-09
Southern Tobacco Journal, Aug. 10th

and Farmers to Consider.
Southern Tobacco Journal, Aug. 10th.
1t is currently reported that prim-
ings and low grade leaf of that type
is bringing somewhat lower prices
than in recent years.
This condition is neither surprising
nor alarming, and is readily account
ed for. Japan for several years i'm
succession was a very heavy buyer OF
this type of leaf. but for the last two
or three years has so largely reduced
her purchases as to make the loss of
Japanese trade severely felt in this
grade of leaf. A brief resume of the
history of our trade in low grade
cigarette leaf with Japan may be in-
teresting, and will doubtless be in
structive.
Prior to the time the American To- |
bacco Company entered Japan we
had very little trade on this grade |
OF leaf in that country. With the
advent of the American concern |
into the Japanese Empire, however,
they quickly created a demand for
cigarettes for the most part made OF
the type OF tobacco in question. The
consumption of this grade OF leaf, |
under the aggressive activities of the |
American Tobacco Company grew
by leaps and bounds, and by the
year 1903 our shipment OF leaf to ia
pan had crawled up to the respecta-
able total Of 4. .429, ,591 pounds. This
was thought at the time to be the
climax, but the demand continued
unexpectedly to increase, and our
shipments were 5,119,6SS pounds
in 1904. 6,529,O17 pounds in 1905,
and 7,673,2S5 pounds in 1906.
1t is we'll to note in this connection
that our shipments of this grade OF
leaf to the japanese Empire in 1906
were a very large percentage OF our
total production OF such leaf.
Under the stimulus OF this de-
mand the price advanced beyond
the legitimate value of leaf OF this
grade, aud then the inevitable, but
nevertheless the unexpected happen
ed. Our shipments to japan in 1907
aggregated only 2,045, ,99S pounds,
falling off in a single year OF 5, ,627,-
2S7 pounds. The showing for the
year 1908 was but little better. Now,
it should be borne in mind that ia
pan for many years has grown large
quantities of tobacco, and is increas-
ing the out put from year to year.
Therefore, when the price OF our
priming types continued to climb to
higher and higher figures, Japan
simply quit buying in large quanti-
ties, and substituted the home grown
leaf. This she could easily do, because
the tobacco business of the Empire
had become government monopo-
ly, thereby enabling it to force what
ever it might choose on the con-
sumer. Under these circumstances
it can readily be seen that there is
little orno prospect OF regaining any
portion of the japanese trade We
have lost.
The above figures are taken from
government report recently issued by
the Department OF Commerce and
Labor, and furnish food for careful
thought.
Home manufacturers have little
demand for this type of leaf, and
hence it would be both unjust and
unwise to censure them for not pay
ing a big price for a grade Of leaf for
which they have such little use. The
truth of the matter is that we have
lost our best customer on this grade
of leaf tobacco, and our home manu-
facturers are no more responsible for
this fact than the man in the moon.
Some years ago when Japan made
u government monopoly of her to-
baccO business, there was a great
jubiiation among growers and deal
rrs of this type OF tobacco, because it
was believed by many that the Jap
anese government would continue to
be a heavy buyer in our markets in
competition with the home buyers.
and that consequently, prices would
be boosted. 1t IL unfortunate that
these rosy predictions were doomed To
such bitter disappointment, but the
wholesome reflection will obtrude it,
self that after all the energetic Amer
ItuIt ttIE i~sS pfsf
most loyal friend the producer ever
! had, or probably ever will have.
| There j. no occasion for excitement
or despondency over this situation.
The simple facts that We once had
little trade with Japan-lnter we had
large, lucrative aud unexpected
trade with that Empire, built 10y the
| activities of al American manufac
turer. that stimulated the produc-
ton of this grade of tobacco. aud
boosted the price beyond its leyiti-
mate level. This partly caus-d lie
substitution OF homegrown iobae-
co for that formerly obtaiii.-1 in
this country, and the upshot Of the
whole matter il that prices are ar
eommodating themselves To thes.
changed conditions, and going back
| to merely normal figures.
We can remember, and 50 can many
of our readers, the time wl,en the
/ lowest grade primings were thrown
away as worthless, and while there
is no prospect of the necessity ol "a
resort to this method again, worse
things could happen. 1t should be
borne i'm mind that the eliminat ton
Of the ground leaves from the parent
stalk provides greater sustenance
and vitality for the leaves higher mp,
which constitute the better grades
OF tobacco. and any loss in the de-
struction OF the first primingr is In
some measure compensated for in
the larger, richer, and heavier leaf
that results from this process.
We, therefore, repeat that there Is