The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1918-11-08
NOTE BOOK SKETCHES

on another page of this paper, is de-
serving of more than passing attention
because of some misstatements of facts
as we'll as the charge that propaganda
exists to bear the price of this years
tobacco crop. First as regards the al
legged shortage of cigar leaf tobacco.
1t is true that foreign countries are
still extremely short Of tobacco and
will continue so until the war closes
and the avenues of trade are again
open. But so far as the u. S. is con-
cerned there is no apparent lack OF to-
bacco for the census bureau in its re-
port of leaf tobacco held by manufac-
turers and dealers October 1st shows
an excess of more than million pounds
over the same date last year. So the
manufacture has not kept pace with
the increase production. This may be
partly accounted for because the ex-
port market in the war zone has been
closed. A year ago when the manu-
featuring business was booming there
was an apparent shortage of cigar leaf
and buyers paid an unusual price for
poor quality crop. But rs per cent of
the 1917 went to the stemming concerns
who at that time expected an unlimited
market for their manufactured goods.
It is true this years crop is vastly
superior in quality and were market
conditions equal ought to bring higher
prices which has been fully realized in
about half the crop already sold. The
statement that there has been no
| marked increase in acreage is erroneous
because government statistics already
show better than a 25 per cent acreage
increase. The 1918 crop is the largest
ever produced in the state both in acre
age and yield with very large per-
centage of the best binder leaf Wiscon-
sin has ever produced. exceeding prob
ably 200, 600 cases, sufficient it is be-
lieved to meet all demand for Wiscon-
sin binders under normal trade condi-
tions.
~
+ Now as to the charge that propa-
ganda is being put out by eastern buy
ers to bear the price of the present
crop. The large operators, manufac-
turers or dealers who furnish the money
to move the great bulk of the Wiscon-
| sin tobacco crop were eager enough
few months ago to purchase about half
| the crop at unheard of prices and much
more of it would have been moved were
| growers willing to accept anything
under 40 cents. Many things are liable
to occur and have occurred in these alb
| normal times that vitally affect busi-
ness. For instance, cigar manufactur-
ers are badly handicapped by a short
age of labor taken away by the de-
mand of the war industries so the pro-
duction is falling off rapidly as the
August soutput shows a decline of
over As million cigars for the month.
The factories have orders plenty but if
they cannot get the cigars made they
are not adding to their stock of raw
leaf which is one reason for dull cured
leaf market that has prevailed for some
months past. The government, too,
has not been at all backward about en-
barrassing the tobacco trade for indict-
ments have been recently brought
against many Of the largest nanufac-
turers and leaf dealers charged with
violation of the anti trust laws. While
it is generally believed that the federal
trade commission cannot obtain convic-
tion upon the charges brought these
firms will suffer from suspicion cast
upon their business. Another element
that might have called halt upon a
buying movement is the necessity of
obtaining an enormous amount of money
to move the crop estimated to exceed
twenty million dollars in Wisconsin
| alone Banks are always cautious about
making loans for the movement of high
priced products and at time when the
government is making such enormous
demands upon the resources of the
country banks, are more conservative
than ever on extending loans for spec
ulative purposes. The local dealers
| would surely be up against it if they
attempted to take over any consider
! portion of the crop at figures that have
| so far prevailed.
"a
| These are some of the reasons that
explains why the crop did not move as
! growers expected. Taken in connec-
tion with the prospect Of an early clos
| ing Of the war when all values will
have to be readjusted is enough to
make investors in q speculative product
like tobacco hesitate before assuming
obligations to handle products on an in
fated basis. The writer is confident
the balance of the 1918 crop will bring
the growers a good remunerative fig
ure but that it will reach the prices
paid earlier is hardly probable. The
figures of a year ago were the highest
ever paid Wisconsin growers and those
prevailing during the early buying this
season were beyond the expectations
of growers. More of them could have
taken the benefit of them had they not
stuck their stakes so high. If they
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