The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1920-10-08
NOTE BOOK SKETCHES

veals no alarming symptoms in the con-
dition of the business world The an
ticipation of the coming change was
more upsetting than the realization.
American importers purchased ap-
proximately 5000 bales of American
type Sumatra wrappers at the inscrip-
tion held in Amsterdam last Friday.
Prices paid for the fancy grades aver
aged approximately the same as the
highest paid at the previous inserip-
tions, while the average for the entire
lot was correspondingly high.
**x
There is no likelihood that declines in
leaf tobacco will make it necessary for
manufacturing companies to take loss
through depreciating inventories. Re-
Gently manufacturers have broken away
from the practice of carrying several
years supply of leaf tobacco. With
the beginning of the buying season,
supplies in manufacturers hands are at
low ebb which affords opportunity to
replenish depleted stocks of raw mater
ials at lower prices. This serves to
reduce working capital requirements
which by the way is the first time since
1914 that conditions have drifted in
that direction.
Investigation into the imported cigar
situation reveals the fact that, despite
the sharp increase in price announced
in the new price list sent out by the
49, k~x, E<xx
cancellations of orders by jobbers and
retailers. One large importing house
states that their cancellations received
on account of the new prices were less
than one per cent In fact the various
jobbing houses and retail concerns that
make feature of imported cigars ap-
pear to be anxious as to whether they
will receive their full allotment of
goods for the holiday trade.
***
One notable fact about the tobacco
industry at this time is that despite the
fact that this is presidential year,
the change in administration does not
enter into the calculations of the mer-
chants and manufacturers. AS to how
the election will go, Water Street par
ticulaTly is pretty unanimous, both in
sentiment and expectation. But even
SO, there is NO expectation that the
state of affairs so far as the industry
is concerned will be materially affected
by the result of the election.
*#*
The general trend of prices is down
ward, and the pressure is slackening
with an increase of unemployment. An
abundance of labor was available for
the harvest and it is probable that some
of the labor which has been attracted
from the farms during the last five
years will now return and remain The
period of acute scarcity both for goods
and for labor appears to be over and a
competitive situation is developing. 1t
is we'll that there shall be general rec
ognition of the fact that the upward
movement has run it's course and that
further wage and price advances are
untimely.
''The price cutting is by no means a
calamity" declared A Barton Hep
burn, chairman of the advisory board
of the Chase National bank of New
York. Business is fundamentally
sound, but prices must go lower to in
sure stability. 1t is in the interest of
stability and conservatism and will re-
dound to the benefit Of all. Things are
coming down slowly but surely and
there is little danger of serious fail
ures.
The crops IRE fine, which is a good
foundation for domestic business and
for international relations. The rail-
road situation has improved decidedly
during the past month, and although
far from satisfactory gives promise of
gradual betterment There is better
feeling in banking circles as 20 the
credit situation, although money will
remain tight. The recession of indus
trial activity which is under way is not
severe enough to be alarming but is
incidental to finding a lower level of
prices. The abundant crops have ac-
complished general reduction of food
stuffs and the raw materials for cloth
ing. With the exception of sugar,
which has declined about 10 cents per
pound in the last two months, the I'M
portant food staples are either as low
or lower than year ago. Meat prod
ucts are lower, flour and vegetables
about the same, fruits lower, coffee
less than one-half the price OF year
ago. Raw cotton has declined about 10
cents per pound in the past two months,
wool even more, hides and leather
more, raw silk about 80 per cent. The
markets for textile goods have been
paralyzed by these declines in raw ma
terials, but many declines have taken
place in some of the important staples.
While all the things said in the para
graphs quoted in this column hold out
golden hopes of lower cost of things
the consumer needs, the hard facts
facing him when he brings his dollar
to the store to buy the things to keep
him from going hungry, naked and
cold are not so comforting. His dollar
is not so big as it looks. The meat bill
does not show much change downward.
nor the clothing bill, and the coal bill
is larger than ever. Mr.. and Mrs. Ev-
eryhody are hearing of lower prices,
but not seeing them As 1onp az every-