The Wilmington morning star., 1947-10-25
Tobacco And European Aid

Tobacco And European Aid
The tobacco farmer received the severest
blow of wears in Great Britain's decision to
halt all leaf purchases in the United States
but some hope of cushioning the shock may
be offered through the Marshall plan.
Through it, there is a possibility of max
ing western Europe a greater market.
But first, let's appraise the meaning OF the
British withdrawal. Its immensely is Illus
trated by the fact that she bought ABOUT
40 ner cent of the United States crop OF
/ $50, 600, 900 pounds last year. This amount
ed to roughly two-thirds of our exports 1t
is a matter of simple mathematics to antlcl-
pate a 80 per cent decrease in prices, unless
new federal aid is forthcoming and next
wears acreage is decreased.
TIL Flue-Cured Market committees sus-
pension of all sales for an indefinite period
after Tuesday, Oct. %, is a good safety
measure. 1t was taken in order that every
effort could be made to remedy the Stu
alton caused by the British withdrawal.
Thus, confusion and possibly speculation
will be eliminated during this critical time.
It is quite unreasonable to expect farm
leaders to come forth with immediate So
lutions. They have been thinking of this
withdrawal for months. 1t was not an I'M
expected action. All knew the British would
have to make the choice between bread ana
tobacco. And no one knows how long the
United Kingdoms buyers will remain OFT
the markets
Ordinarily, the Marshall program is con-
sidered in the light Of long-range rehabllta-
ton. 1t was designed, and there has been
no change, to emphasize relief in heavy
goods, such as factory Machinery
railroad rolling stock and tools. But many
an American is convinced that 1t Will not
attain it's maximum efficiency in placing
the Is beneficiary countries on their 1eet
unless they cooperate through the greatest
of all ways-hard work. And do you kno"
of a greater incentive for that than TOBACCO!
Today, many a German employed by a
member of the American occupation forces
prefers 10 take his pay in cigarettes rather
than money. Because of the scarcity OF thlS
commodity. it has a greater value thah
currency in the black markets.. Ot course
after real rehabilitation gets under way III
Europe such a condition would evaporate'
But we offer the illustration to show the
Europeans strong desire for American to-
bacco. 1t definitely has great value IN morale
building and worker incentive purposes.
There is precedent for such use in the LEND
Lease program of World war II.
Another possible procedure under which
sizeable tobacco exports could be made pos
sible would be for the Export-lmport oank
to lend the United Kingdom and other coun-
tries money for purchase of tobacco. Elk
tensive loans were made by the COMMODITY
Credit corporation to several companies IN
1899 and 1910 to enable them to buy tobac-
co already ordered by European buyers who
were unable to pay for it in dollars be-
cause of the emergency brought on by the
war.
But of the two suggestions, and don't
forget that is all they are, the Marshall
plan apears the best. 1t is certainly worth
consideration by the Congressional dele
cations of North Carolina and other tobac-
co producing states and, if a decision is
reached for action, the special session OF
Congress beginning November II would be
a most opportune one for the leaf farmers.
Called by President Truman to deal with
a possible billion-dollar program of stop
gap foreign relief, it could, if tobacco state
congressman applied sufficient force, in
clude leaf as an encouragement to Europe's
in recpnstructing their war battered coun-
tries.