The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1920-11-19
NOTE BOOK SKETCHES

The Boots Limited, and that American
enterprise is going to invade the to-
bacco retail trade~in England. The
English smoker looks upon this as
good sign, as he expects that America
by this move intends to sell in competi-
tion with the native firms and force the
price of tobacco down in price. The
price of tobacco in England today is
twice as high as it was in 1914, and the
revenue collected amounts to FIVE times
as much as the tobacco trade yielded in
1910. 1t is thought that the Tobacco
Products Export corporation of Great
Britain and Ireland is cooperating with
the American corporation.
- ***
The fact that the reputable cigar,
cigarette and tobacco products concerns
could not meet the demands of the con-
sumers during the past years led
number of new firms to start up pro-
ducing inferior grades of goods. These
concerns are finding themselves in a
rather bad way. AS soon as the public
realized that they were buncoed in
the quality of the smokes, they ceased
buying, and returned to the old reliable
lines, even though they had to pay
higher price. The manufacturer who
keeps up the standard of his goods is
az, ~, $<~ xry.v, ont he
ANY material fall in the price of ci-
gars is not looked for within nine
months or year, according to the in
formation seeping out from the manu-
facturers and big dealers. In the first
place because the increase in the cost
of tobacco products has been less than
in most other lines, and in the second
place, because the high priced leaf
bought during the past year will not
be worked into the finished product for
some time to come. While this fore
cast may be perfectly logical, it may
be upset by conditions which are prob
able to make their appearance earlier
than anticipated by the tobacco indus
try. Among these upsetting conditions
is the lowering of the purchasing power
af the public. Ii wages keep coming
skEn, If there is lack of employment,
the smokers will smoke less, and the
demand for cigars will recede This
might force the trade to cut prices,
even at the prospect of loss. Those
manufacturers and dealers who have
large stock of high priced material to
work up may have to take their medi-
cine before they are able to start on
leaf that cost less than what now goes
into their cigars. Meanwhile, the pres
ent activity of the cigar trade is re-
ported as satisfactory, and brisk
Christmas buying seems to be assured.
In discussing this phase of the market
prospects, the Tobacco Leaf says:
Just at present the manufacturers
are consistently following the same
hand to-mouth policy of buying leaf
supplies that the jobbers are pursuing
in the purchase of cigars. The reasons
in both instances seem to be Identical.
The cigar jobbers and dealers are still
more or less firmly convinced that some
reduction in cigar prices in the compar-
atively near future is not only possible
but quite probable The manufactur-
ers in their turn have the same idea
with regard to leaf prices. The nat
ural result in both cases is curtailment
of buying. The leaf packers and i'm
porters are just as firmly convinced
that the manufacturers are in error in
their belief regarding leaf prices as the
manufacturers are that the iobbers and
retailers have the wrong slant on the
immediate future of cigar prices. In
view of the uncertain character Of gen
eral conditions it is easily conceivable
that any prophecy made at this time
may be wrong But when>it is consid-
cred how rigidly Water Street confines
itself to the limits of established facts,
it must be admitted that its judgments
regarding the future in leaf prices have
at least the merit of solid grounding.
***
To the announcement of the New
York Clothing Manufacturers associa-
tion that it will not reopen it's shops
until the Amalgamated Clothing Work
ers' union agree to new wage condi-
tiOns necessary to the life of the in
dustry," the Chicago Tribune makes
the following caustic comment: "If
that industry is i'll its illness must be
diagnosed as apoplexy or gout rather
than anemia or malnutrition. 1t did
not hesitate to take advantage of the
misfortune of the world and double and
triple its prices before it raised wages.
II made enormous profits and defended
Itself in part by saying that it was nee
essary to take advantage of the fat
years to lay up a store for the lean.
Now the lean days are at hand. Yet
we see no inclination to use the profits
of the fat days to tide over present
troubles. Instead, production is cut
off and thousands of workers are made
idle. No doubt the individual manu-
facturer can take up his pencil and fig
ure out that by stopping production for
time he will save most of his expense
and allow demand to catch up with
supply, after which he can renew OPP
erations at recent artificial prices. He
is playing with economic laws more
powerful and more dangerous than him
self. If all manufacturers were to
adopt that policy they would find when
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