Perth Amboy evening news., 1922-06-03
A WE HAVE NICKEL
CIGARS is QUESTION
Daily Letter by Frederic j. Haskin

WASHINGTON. May 31.-Thomas
Riley Marshall, former Vice Presi-
dent, is authority for the statement
that what this country needs is a
good five cent cigar.
Cigars on the old time standard
selling for five cents would be a long
step back to normally, according to
confirmed smokers of this grade of
tobacco. The nickel cigar was long
regarded as the poor mans luxury,
and he ought to nave it back again.
Abolition of the luxury tax on
cigars, where the paid di-
rectly to the retailer and he in turn
to the government, so many pen
les, depending upon the price of the
cigar purchased, did away some
what with the odd prices such as
seven and eight cents. However,
the stamp tax on cigars remains,
and is not considered low. Because
of this and the high cost of pro-
duction. most of the brands of five
cent cigars have eve dropped back
TO that price level.
According to manufacturers, this
was about to be realized when there
was written into the tariff bill now
in the senate a duty of S2.35 on
Sumatra from which are
made. Sumatra cigar makers say,
is essential in combinations with the
American tobacco filler TO make a
fragrant and acceptable cigar which
will retail at five cents.
There has long been a big tax on
Sumatra, which must be imported.
1t started as a war tax, and is one
of the reasons why the price of the
former nickel cigar went soaring.
Some of the tobacco raisers are
for and others are against the high
tariff on Sumatra at present in the
tariff measure. Some of them be-
lieve that the practical exclusion of
the Sumatra wrapper, and its dis
use for cheap cigars, will be a bene-
fit to them. An all-AmerIcan to-
bacco cigar would have to be put
on the market, and this would
mean, they think, the entire use of
their crops at a good price in order
to supply the demand which will
spring up.
Opposed to these are some grow
ers who believe with the manufac-
turers that the quality and fragrance
given by the Sumatra wrapper Will
turn many cheap cigar smokers to
more expensive brands using impor-
ted ~tobaccos, or to cigarettes. This
would mean a Iessened demand for
the American product, with conse-
quent direct loss to the tobacco
growers. Using the imported wrap
per in spite of the high tariff on
it would meal there could be no
nickel cigar of the old quality unless
the American grower Of the filler
were paid much less for his product
in order to bring the price down to
the old retail figure.
Decline of Cigar Smoking
II is declared by the manufac-
turers that fewer cigars are being
smoked today in the United States
than were consumed five years ago.
They say this is due to the high
| prices of cigars and that the tariff
situation is responsible in large part
for the higher costs.
Not only that, ut the government
is getting less revenue from the hlsh
tariff on imported tobaccos OF high
| grade than il would receive in in
! come if the tariff were lower. The
lower import duty, would, they con-
tend, result in such an increase in
importations that the bulk of the
business would more than offset the
lower rate, as far as the income to
the government would be concerned.
Instead of being a, protective tar
iff. as now proposed. the $2.35 duty
! on Sumatra wrapper would act as a
drawback to the efforts of the Amer
lean tobacco planter, the makers of
| cigars aver. On the theory that a
cheap c, ar without the Sumatra
wrapper would not sell readily, the
makers say Thai raising prices would
reduce the volume. This. of course
would hit the tobacco planters di-
rectly.
The tariff bill is not done with
yet, and the question of the Sumatra
wrapper is not of very much impor-
lance, when the whole scope of the
measure is considered. But there is
a lot of agitation, one way and an
other, and more will be heard from
ii before the tariff is sent to PIesi-
dent Harding for his signature. The
manufacturers are trying to convince
not only congress-. but the growers
as we'll, that the best interests of
everyone would be conserved If the
tariff on imported Sumatra were
brought down several pegs.
For Home Grown Product
On rhe other hand there are those
growers who insist that a cigar can
be made entirely of American grown
tobacco which will not only be read
| fly acceptable to the class of smok-
ers who like the old five cent class
Of cigars, but that the demand will