The Wisconsin tobacco reporter. (Edgerton, Wis.) 1877-1950, 1921-10-14
NOTE BOOK SKETCHES.

duction in the cost of the eight cents,
two for fifteen, cigars, taken from an
editorial in the U. S. Tobacco Journal: ::
There are but three ways by which
prices can be reduced Lower taxation,
cheaper labor or cheaper tobacco would
have this effect But the facts are that
there has been no subtantia1 reduction
since the first of the year in any of
these elements. Taxes, on the con-
trary have been increased by the fifty
cents pound advance in the duty on
wrappers. This amounts to ST per
thousand, and it fully offsets any other
reductions that have been made in the
cost of making cigars. Binders this
year cost just as much as last year,
though the packers are making smaller
profits. The cost of fine wrappers this
year is higher than it was last year.
There has admittedly been a reduction
in filler tobaccoS, but not enough to
offset higher taxes.
**x
The grower and the packer are real
izing how the cutting in the consunp-
tion of cigars by the consumers will
effect the demand for cigar leaf. The
1920 smokers of 12-centers are rolling
their own smokes of cheap smoking to-
bacco, or they have turned to the for
IS cents to accommodate the condition
of the loose change in the pocket. This
condition is sized up by Hartford,
Connecticut correspondent to The U. S.
Tob. Journal in the following way:
A number of cigar manufacturers in
the state are confronted with the pros
pect of being compelled to close their
places of business because the demand
for cigars is below normal, the result
being an accumulation of surplus stock.
To ct1rtai1 the production until the sur
plus is absorbed by the market is be-
ing considered by some manufacturers.
But the employers are also suggesting
that the men themselves offer some So
luton of the problem. 1t is held by
the manufacturers that competition by
out of state cigar makers is sharp be-
cause many of the competitors run the
open shop and get cigars made for less
money than the Connecticut manufac-
turers can do. 1t is said by the manu-
faeturers that if the cost of production
can be reduced, they can cut the whole
sale price of cigars and the store
keeper can reduce the retail price;
hence the smokers would be able to
buy homemade cigars as cheap as the
outside product if not cheaper
Setting their faces against this sit
uation of dull market leading New
York merchants and fnanciers had
meeting in City Hall to inaugurate a
Buyers Week for the purpose of set
ting the ball of buying a-rolling. The
presiding officer of the meeting, ac-
cording to the Tob. Journal suggested
"that if merchants cut prices, if sales
men made an intense effort to sell
goods, if the public would do their part
by grabbing a bargain when they saw
it, a cooperative heave by business
men might change the whole psyche
bring about, all over the country, a
demand for goods which would end un-
employment" It will be noticed that
men who put things together and rea-
son from the known to the unknown
have come to realize that no buying
movement, mo increased demand for
goods can take place before the price
of the goods becomes attractive enough
| to suit the present size of the consum-
| er's purse. On the other hand, the
| consumers purse will remain shrunken
until it can be filled by the opening of
industries and the earning of steady
wages. Further, the industries can not
| hum unless there is demand for the
| goods produced. The cycle is perfect,
one link hooking the other clear around
! the circle. The New York merchants
by their Buyers Week" hopeNto tackle
| the cycle and repair the point that is
| causing the drag. "Ofer bargains" is
the slogan. All goods that is offered
so cheap that it will find buyer will
| remove that amount of stock out of
| the market, create demand for new
stock, which again means demand for
labor, and demand for raw material to
| be worked up by labor.
**w
| If this movement is taken up all over
| the country it may work out tenn
porary relief. But a permanent relief
will not be experienced until the ad-
justment between the cost of the. raw
material, the cost of labor, the cost of
selling and the cost of distribution of
| the goods has been found Not only
| the producer of the raw material, but
1 labor, the manufacturer, the wholesaler
and the, retailer, and the transportation
| agencies must take their loss until the
| adjustment has been accomplished, and
| the relative services at all points in the
| movement of supply, demand, trans
portation and consumption are stabil-
lied on an approximately fair basis.
Any point in the service which refuses
to yield in harmony with the yielding
of the other points, is upsetting the
entire order. Whoever is scheming for
profit which makes the other fellow
lose his; any combination in the hnan-