The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1916-12-15

one fault OF size or lear, the most eA-
pensive crops are likely to prove sat
isfactory purchase, but the proportion
OF IS to % inch leaf to be obtained in
the packing will be larger than antici-
pated. Possibly as later deliveries are
made the first opinions may be revised
somewhat.
The revised federal revenue law en-
acted by congress last September made
number of changes in the special tax
(Government license) features which
berome effective January l, 1917. The
special tax of $4 so per year which all
dealers in tobacco were required to pay
under the provisions of the old law IS
repealed, effective January lst. The,
special taxes on dealers in leaf tobacco,
commercial brokers', commission mer-
chants and capital and surplus of banks
are also repealed.
*s*
To the everyday observer of current
events, it appears to be plain that the
cause of the incessant drive toward
normally large expectations of all our
foodstuffs and all raw materials which
enter ordinarily into the production OF
commodities for domestic consumption
to serve the purpose of the warning
Allies. If we could keep our wheat
and our hides at home, the price OF our
bead and boots would not become pro-
hibitive. It needs not much inyestiga-
ton to find out this, and to remedy 1t
is to put an embargo on those things
which are essential to our own self
preservation. The high cost of living
is naturally responsible also for the
price advance of tobacco products and
if the trade is reluctant to submit
to the higher price exactions IN
conformity with the higher price on all
other goods it ought to busy itself to
support an embargo measure in order
to bring American business back to
more normal conditions. Long drawn
out Investigations to prevent price in
creases in such abnormal times as we.
are living in have never proven of any
really benefcent result. The present
high cost of living has not been caused
by combinations of producers or deal
ers but is the result Of the shortage
abroad. Only stoppage of these ex-
portations can bring us back to normal
times And if somebody should be hurt
in his boarding of war profits by the
proposed embargo iU will simply accrue
to the benefit Of an overwhelming ma
iority of the people, The public veal
should always be placed above the pri-
vate pocket. Tobacco Journal.
The Department of Commerce has
received report from Consul Alfred
w. Donegan, Madgeburg, in which it
is stated that the law of July /. 1916,
increasing the domestic tax on tobacco,
not only has for it's object the produc-
tion of a larger revenue but is also in
tended to act as direct inducement to
a greater tobacco cultivation in Ger
many. The old law of July Is, 1909,
failed to provide the intended protec-
tion in sufficient measure to affect the
domestic cultivation of tobacco favor
ably. The share of the total tobacco
consumption furnished by the domestic
production actually decreased from 26
per cent in 19O6-1909 to "a per cent in
the years following. Average prices
IOI uOI1CSLlC raw COOdCCO dISO 1d1CQ W
advance, except in 1910, when tenn
porary rise occurred. The new law
provides an increase in the internal tax
on leaf tobacco of domestic production
from 28. so marks to 35 marks per Ger
man hundred weight CSC. Is to ST. 56 per
100 pounds) and an increase in the i'm
port duty on foreign leaf tobacco from
AZ. so marks to IS marks per German
hundred weight (S9. II to $14. 03 per 100
pounds, plus an ad valorem duty which
is increased from 40 per cent to 65 per
cent. The additional burden represents
in round figures one-fourth of the for
mer tax on domestic tobacco and three
fourths of the old tax and duty on i'm
ported tobacco. Far greater protec
tion is thus afforded the domestic in
dustry by the new law than was the
case under the old law. In German to-
bacco-growing circles it is now assumed
that, in view of the present extraor-
dinarily high prices for oversee tobac-
co, the German cigar industry will be
inclined to use domestic tobacco to a
greatly increased extent, and that the
heavier demand will necessarily cause
an advance in the price of domestic to-
bacco. Herein lies strong induce
ment for farmers to expand the culti-
walton of tobacco in Germany espec-
ially as the product has proven a val
uable link in c-o' -o+ation. The intent