The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1920-02-06
NOTE sook SKETCHES


occurring from week to week: Get US
more binder leaf; the market is short
of binder stock. The Wisconsin grow
ers have absorbed this information
with considerable interest, and reflect
ed upon its significance. The 1919 Wis
consin crop is going to help out in TAX
ing care of the shortage, but it is like
digging a new. hole to fill the old one.
The 1919 which is being force-sweated
may be ready for sampling by the mid.
die Of the summer; that will help some,
but the bulk of the 1919 will, even if
put through the bulking process, be
late in getting ready Cor the manufac-
turer, owing to the lateness of a gen.
eral stripping season. These things
considered, the observant grower will
be able to figure out that until the de-
mand for binder is amply supplied,
there is going to be a need of binder
leaf. No one can, Of course, predict
what may happen between February
1st and November 1st this year, but
economic and trade disturbances may
occur 10 put all calculations of prices,
the labor situation, supply and con.
sumption, clear into the ditch; but bar
ring such unfort cen, circumstances, the
1920 outlook for good prices for binder
leaf, especially for the best type of it,
is of a nature to encourage the Wis
consin grower to plant his usual acre
age of tobacco next summer.
*.*
The reduction of available binder
stocks to such negligible proportions
that they no longer constitute mar
ket factor" is the manner in which
the situation is characterized by the
Tobacco Leaf last week; and the U. s.
Tobacco Journal says: Next to Shade
grown, there is great demand for
binders. While the 1918 Connecticut
and Wisconsin crops contained better
percentage Of bindery material than
usual, the shortage from two previous
poor crops vas SO great that the manu-
faSturers are seeking to secure as am
pie supplies as possible. There will be
some relief from the absolute binder
famine that has prevailed, but the sup
ply is not overabundant. The best
that can be hoped for is that the sup
ply will carry the trade comfortably
until another crop comes into the mar
ket." #
Cigar manufacturers are finding the
same shortage Of tabor as is found in
all industries. Men and girls do not
care to learn the trade. Perfection Of
machinery will, by and by,
do away with this difficulty. 1t will
have to, if foreign immigration is to be
effectively discouraged, or we must go
on basis of consuming less and pro-
ducing less.
~
Is the excess profits tax an evil?
Here is statement made by w. B.
Colver of the Federal Trade commits
sion. He blames to it the continued
high prices: 'FThe excess profits tax
was never proposed as revenue meas
ure and as not necessary as revenue
measure. 1t was proposed only as d
corrective to government price liking.
When the government was fixing the
price on various commodities, it found
that some manufacturing concerns or
some mines could produce at very
low cost, while others produced at a
very high cost. A known and definite
amount of each commodity was neces-
sary for the winning Of the war. The
policy was adopted of fixing price
which would be high enough TO bring
out the last needed pound or the last
needed bushel or the last needed yard
of each commodity. This resulted, OF
course, in abnormal profits to the low
cost producers and the device of the
excess profits tax was adopted to bring
back into the treasury some part of
these inflated prices. Even as cor
rectiye, it did not work. On the con-
trary, 1t encouraged extravaganza OF
operation and carelessness in business
management. Now, the government
IS no longer fixing prices and the only
excuse which ever existed, If one did
exist, for the excess profits tax, has
disappeared. In everything that you
buy there are from one to fifty excess
profits taxes. Each one who pays an
excess profits tax adds it to his selling
price and passes it on. The consumer
finally pays the total bill =
AZ
.'The present cigarettes made in
America contain nothing but high grade
tobacco, wrapped in rice paper" says
the Western Tobacco Journal for JAM
19, and continues: High grade Bur-
ley tobacco raised in Kentucky, Ohio,
Indiana, West Virginia and Missouri is
used rather exclusively in the manu-
facture of cigarettes. There is high
grade of tobacco raised in North and
South Carolina which is also extensive
ly used in making cigarettes.
Patent has been secured by Elmer q.
Motter and Frank G. Davis, Tippe