The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1919-04-26
THE OUTLOOK FOR
TOBACCO IS MUCH
MORE FAVORABLE
Letter Issued by State Department Of
Markets on Tobacco Is Very
Encouraging.

Is indeed encouraging to Mason coun-
ty farmers to read the following letter
received by County Agent Kirk from
the Department Of Markets at the Ex-
pertinent Station. This letter is sent
out after careful survey OF condi-
tons both domestic and foreign, and
reveals the true situation better than
any prior forecast. This should not
be taken as bid for overproductlon,
but as an analysis of factors bearing
on next years price.
The condition of the closing mar
ket for tobacco 1888 after season
of unprecedented high prices and pre-
ceding season Of unusual promise Of
large crop of tobacco for 1890 has
given rise to considerable inquiry
among growers and buyers alike as to
the probable situation in the new crop.
A careful investigation Of domestic
and foreign mar kets conducted by the
Department of Markets OF the Univer-
sity of Kentucky has ELECTED con-
siderable information on the subject
which should be Of value to the tobac-
co industry and this market news bull
letin is accordingly issued for that
purpose.
The sharp decline in the end of the
seasons market seems to have been
caused by several factors among
which were inability to further finance
high price crop and the fact that
many buyers had purchased either the
entire amount required by them or
such an amount Of tobacco as the limit
of their credit would stand. Because
of this several of the buyers left the
market and others attended it only
in disinterested fashion and price of
loose leaf, therefore, declined rapidly
to low point of stabilization where it
remained for the balance of the sea-
son.
DOMESTIC CONDITIONS. 1t ap-
pears that the handlers of tobacco in
the United States are very well stock
ed with the weed and in many cases
ovverstocked, carrying large quaint
ties on partial payment for foreign or
der Every storage house in the East
ern part of the United States capable
of storing tobacco is filled to capacity.
This condition is aggravated by the
fact that transoceanic shipping avail
able for tobacco transportation has
been exceedingly short and in many
cases almost entirely lacking. In spite
of the fact that millions Of dollars
worth of tobacco are already sold to
foreign purchasers the markets are
stagnant in the face of inability to
ship. This does not say that there is
too much tobacco in America for pres
ent demands for the reverse is true
but the market is stagnated on ac-
count of the obstruction in commerce.
FOREIGN CONDITIONS. Conditions
in foreign countries are such that
some who have lately returned from
investigations in Europe described
that continent as tobacco vacuum
due to the fact that there Is scarcely
any tobacco to be had outside the
armies Of occupation. The present
Immediate needs Of Europe are ap-
proximately 5OO,OOO,OOO lbs. of Amer
lean tobacco and this will only supply
the immediate needs of manufacturers
and dealers and should soon be fol-
lowed by consignments of 100000 900
lbs. for the early current needs of the
ensuing year
FOREIGN SUPPLIES. Europe is suf-
fering not only from shortage of i'm
ports but also from one of production.
Turkish tobacco has practically dis
appeared from the worlds market on
account of the disruption of that coun-
try and China is supplying an inferior
grade which is being used In Turkish
cigarette manufacture. Thus we find
Europe in "A position to take immense
supplies of tobacco but the greatest
potential market for America at the
present time, one capable of immense
expansion, is that of China.
THE OUTLOOK FOR NEXT
YEARS CROP. Taking into consider
alton the abnormal condition in the
worlds tobacco market the outlook for
next years crop appears favorable.
This Is true even when we consider
that America from present indications
Will produce several millions of
pounds more than ever before In its
history. The present increase in to-
bacco acreage is most marked in
North Carolina. South Carolina and
Georgia, but its increase will not eff
feet to any great degree the total per-
centage Of increase in the worlds
crop
The outlook for Burley tobacco
seems quite favorable owing to the
fact that Burley is becoming more and
more pOpular In foreior oountrios