THE

Cl'~--5-ITUATION BUREAU OF AGRICULTURAL ECONOMICS

UNITED STATES DEPARTMENT OF AGRICULTURE

TS-25 «~B FEBRUARY 19~3

T-<>BACCO: PRICES RECEIVED BY FARMERS. BY TYPES 'OR CLASSES, UNITED STATES, 1909-42

CENTS PER

POUND

30

15

-0 30

15

0

Dark air­cured .A#

1910 1915 192.0 192.5 1930 1935 1940 * KEAR BEGINNING JULX OGROP OF YEAR INDICATED. SOLD FOl.,LOWING C'A.L6NDA.R YEAR AYEAB>IJEGINNING OCTOBER # J9t19-·l6rlf~UJJJN~ t.f:PB fi t./909-18, EXGLlJ.DING ff.P.E .t4 DATA FOR 1941 ARE PRELIMINARY; 194! ESTIMAT~D

(1. S. DEPARTMENT Q.F AGRICULTURE NE.G. 3U52 :fUR£AU OF AGRI<;llLTURAI. ECONOMIC$

Prices received by farroers for the major non-cigar types of tobacco have been the highest In many years. Buf'ley prices are at record levels and flue-cured tbe hi~hest since 1919. Sharply increased domestic demand associated w-ith recurring monthly peaks in cigarette consumption has been the major causative factor. Since World War 1 the demand for United States dark tobaccos has dec I i ned even more than their production, and the trend in the it prices has been downward. Recently, however, particularly this season, prices have been htgher due to some recovery in the demand for products made from dark 1 e•f, increased by-product dIversion, and Improved ex~rt prospects.

PRODUCTION OF TOBACCO; BY TYPES, UNITEtl STAlES. '1910-42

POUNDS !MilLIONS I

1,600

{3,00

800

400

0

-

1910 19t5

U-S. DE?ARTME~T OF AGRICULTURE

-------------

l !~e:. air-cured and fire-cured .Burley .Flue-Dared f.;~-------

.· - ·.- -M-1'1-I!HH-A--IRI-!Sll-11-

1920. 19Z5 * PRELUIINARY

1930 AJi'STlhfATBD

-

*

-

-

-

1935 f940 1945

FIGURE I ICEG. 4!850 BUREAU O'F AGRICIJl.lVIIAL EC0t10111C11

CROP VALUE OF TOBACCO, BY TYPES, UNITED STATES, 1.910-42

DOLLARS (MILLION$)

500

400

-

300

200

tOO ' .

0 1910 !915

U.S. DEPARTMENT OF AGRICULTURE

1920

'• ·.

I ~:~;air-cured and fire-cured -- ~ ---l Burley · Flue-cured -

-*

---: l 19-25 1930 J93S 1945

*PRELIMINARY .o BSXlJJIATBD..

FIGURE 2 NEC.. UliD llll.ll£.lU GF &IO.IIICIIUIIlW. KOIIOMICS

The tota 1 production of tobacco i.n 19~2 was approximate I y 150 m i 11 ion pounds or 12 percent greater thart in 19ijl and about 100 million pounds smaller than the 1937•ijl average. Due to higher prices received by farmers, however, the value of the crop is estimated to be the record high of approximately 510 million dollars, compared with 332 million in the preceding season and 11-51 mtlllon dollars received for the 1919 crop. There has been a marked upward trend in the contri­bution to the production and value of tobacco as a whole made by the 1 ight types, particularly flue-cured, an~ a decline In the proportion of the total represented by dark tobaccos and cigar leaf.

TS-25 - 3 ...1

. 1'!....~~~.:~--J..------------------------=-- -t--

T H E T 0 B A 0 C 0 S I T u A T I 0 N •:.--~-·..:.· _ _: ______________ ..:_..,.·_._ _______ .... ------

Summary

P;rice·s 'rece.fved by farllle:f.s· for 1942 tobacco crops were mater.i~lly

higher than prices for 1941 production. Higher prices have been particularly

pronounced 'for. flue.:.cured and Burley t but substantial advances also have

ocdutred. for dark·:t·obaccos and cigar tYPes. Sales of flue-cured and Burley

b.a,t~ b~~h coll!J?l~ted and markEHis~··for the dark tYPes will close within t·he~

next few:w~eks~: It·is estimated that returns to·growers·of tobacco as a

':. • .,.. 'I' .

'whole will·be·more· than 510 million dollars, compared with 332 million '

: tece:i.V'ed.' for 1941 production and the previous record return f'Or. marketing.s

. ot·: 451. million in 1919. I .

· The 1942 flue-cured ci'o.;, of 811 million pounds was sold at an· · ' .

average price of between 38 and. 39 cents, the highest price since 1919.

Demand was strong and prices well maintained· throught>ut the season._ The.·

inc~eased consumpt·icin of domestically· manufactured ·tobacco products~

·partic,ularly cigarettes, arid purchases by the :Commodity Credit Oorp.ora:tion

·were important contributing factors. · Flue-eu:t:ed leaf· was brought u:ntter

··a. temporary 6o-~ price ceiling 'by t'he ·Office of Price. Administ.ration,

ef:fective August }1, arid. a perniane'ri.t order· replaced .the· temporary regulation

on September 22. . .. ~.·

. ~ .. ,.,··til-ices and returns. to producers of· :Burley tobacco have :been the

highest on 'record. Effective· December· '4-,· 1942, just in advance of the

open.ing of the marke~ing season,· I"ia.:X'imam l?r'ice Re6Ulation:. 283 placed ceiling

:prices on :Burley in terms of U'nlt·e·d· States ·st-andard grades. In order to

provide for a more: fair and 'sys·t'e'matic distribution: of-· the CTO!l among 'buying

interests, ··the ·Go'iernment, under the term:s of :Food-Orders Nos. 4 and 4.1,

- 4 -

provided for the allocation of the Burley crqp~ . ~4e order, effective •. • C'.

January 7, permitted manufacturers to purcha§!~ 1942 ~le;y in an amount not

to exceed 90 percent of their average purchases from the crops of 1939 .• 1940,

and 194L · :Purchases made· previous to the .. order were counted against each : . ~ .. , ~

.- buyei-1 s ·allotment.

Pr1ces:·for most grades were at ceiling,levels thro~e;hout the season. 1 '-'' • ' ~ ' , I ' ~. , 1 ~

Stocks of ~l~y leaf.on October 1, 1942 wer~ ~~~ re~ative tq present rates . . . . ~ ; . ~ ..... ·. : ...

of· 'di~app'earance., and the fact. that the 194.2 crop is consi.derably smaller than . .. , . ). ·:

estimated c'dnsumption ·for ·this. season. will .r.es"QJ.t in a further reduction in i",' ''t I

stocks next: October 1. The use of smoking .tobacco by cons~ers has declined ~ ' • ~ • • • 1 • > •

moderately during the past year .but any result i!).g decrease. in the demand for • I' • : • '.

Burley leaf from this source has been more than offset by th~ very high level • • ~ l t-. ~ •

of cigaret-'te··product.ion. · In· r_ecognition of the shortness of :Burley supplies

relative. t{) demand, .. acreage all?tments for 1943 ,.,ere increase~ to 421,000 - • .' /I

acres· o:t" 10 p:ercent · a,bove the 1942 allotments •.

Prices of· all· dark tobaccos have av~rage~ higher than a year ago.

·some incr·ease in. commodity prices in.general, a 1~ger domestic consumption ' "' .. ' • 'I '

of snuff and'chewing tobac~o, higher adv.ance. pr~ces, improved exp9rt prospects, " . . . , . . ~; ' . . ~

and. p~ticularly, increased purchases for the manufacture of bYJ)roducts, have ' • • • ' ' •• '' I ~ '~ ~ '• t \

'been·· impo1'tant ·demand factors contributing to the stren~th o+ da~k tobacco I • ' ""

prices. Since last April the Department of Agriculture .has operated a program • ., ,,, ••• ·j. ":',· •••

encburagirrg· the ·diver·sion -of low-grade dark tobacc9 _to the ~u:facture of

nic·otine alka.loi¢ anq. nicotine sulphate. ' . Tj:li.s program is designed to increase

.· ,. ··. .... t· . ':. }-'.

supplies of '.domest-i-cally produced -insecticides. The -princi.P~ foreign sources • ' • ' .. ~ • r ' :· · .. r. . .~ .

of insecticides such as .re>tenone .and pyrethrum ~n the Ea~t Indies, have been ....... ·'' 0:., " ) ' ~ .

cut off by· the ·war in ·the ,Pacific.. ..The p:r;oduct~on of nicotin~ sulphate and ' '' '• • ·~ ~' ' t} ' ! • 'I •

·related tobacco byproductr? is being subsidized._by the Government in order to I • . I '•,:

I '

TS-25 - 5 -' -

make possible their increased manufacture and sale. under price ·ceilings for

nicotine sulphate established by the qffic~ ot:Price Adm~nistration. In order • 4 • • '

'to aid the Department -in obtaining for bY:P~o,~uct manufacturer·s',\h~ supplies of • • •t "

tobacco required, the Secretary' of Agr-iculture on January 21 issu~d an order . ... . . ~

, ~ r ' .J.

reserving c~rtaintlow ·grades of the 1942 c~op of tYPes 22, 23, ·and .36 for use . . " ' . ' ' . ''!: in the m·~U{acture of byproducts sucn as nicotine sulph~te and nicotine

: a1l:ta1oid.

FLU3-CURED TYPES 11-14

Prices_High;st.since ~~Value of : the· Ctpp )ihe Higb.e st .2n. Record

. .. . -. . .. ' . ~ '

--FebrUary 27, 1943

·: •. 7 .. · The. ~42.·:-~~ason average. price to producers for all fl:.ue-cured tobacco wa.s (ap;proxi$itely. 38 .• -3 C'ents, the highest price received by growers since 1919 .~ RetU$ps to farmers were a record high, preliminarily estimated at about 315 miliion·.':dollars, compared with 212 million ·in 1919, the previous peak. and with th~ .. -1934-38· average 'of _169. 7 million dollars. Sales data of the ·. Tobacco .~r~ch of the Food Distripution Administration·place the crop a~ · approximat'eiy 811 million poun.ds.! 'DJmanci wa~ . strong and prices well maintained tl{r6·~hbut the season. The increase'd con;SUffiption of domestically manufacture·d·

. -' ... r~ , } p·r.oducts·,. e~ecially cigarettes, ari11.~~»-r.c~.se~ by the Commodity. Credi~ .~ ·· Co1-Poration .. w~re important contributing-.:t'aGtors. 1/ In addition; the -quality

• l •t"t• - .

of the f1ue<'9ured crop as a whole was .J?~tter than average. Al tho~h the-Eastern ·Bel{, type 12. did not have .as. go.o.d. a crop as in some· r~cent yea:r"S-. flue-'cur·e·ci .Production in general conta~,n~d a high· proportion _of choice and fine gr~ci~~-;, The Old~Belt, particul~r'ly·;J.\9· had one,·of·'the b~,~t cro'!'Js on rec.ord .... ·It 11was unusually uniform;· of ~.)?right yel·l6''' eolor, and the percent-age of' nonq.:e~qript was only half that of 1.941. . -~ .

. • • • • "'; ~t .... ; ,\

-~ .. , ·. Fl:Ue;cur~d leaf was brought under a temporary 6o-_day pris.e ceiling by the Office of Price Administration. ef_fec:tive August -3E..: :·On September 22 a permanent. o:e~e.r repla.qed ·the temporary .. r~gUration. The· Price Administrator state-Iii tl:'ilit ~'t'hk c·ei~;lp,.g on ·flue-cured wa·s-~made necessary by the danger of a ru.n-away·'ina,rket (tor::¢ditionai data ~ee· The Tobacco Situation for September ·19"42, T·s...24.~·-·,and Maximum Price,,Regulation No. 228, Office of Price Admini_s~ration 79'0.)".; :·"·. :· ·.·-' ' · ·

l "',·

!./ Flue ... eu~eq. le.M of: . .'the'1942 crop p~rchase~ by or pledgeJ. to. the GommQdity Credit·· Corp'!~~tion .. _totaled :~pproximat.elJ;.:250 million pounds.

FEBRUARY 1943 - 6-

Price Increas~:s: Sharpe£ in Lo,..rer Grades

Practically all grade averages ''!Tere materially higher than last year. However, price .~ncreases were relatively much greater in the ch~aper than in the better grades, and -pr.ice differences behreen the various upp.er·' ~ qualit-ies were small. Frices for some of the lower qualities wer_e more than double those of'l94L This .shift in the price pattern was particularly pronounced for type 11 tobacco. For several years past there has been a tendency for prices of the lO\••er qualities of le'B.f to increase relattvely inore than prices of the better grades. This trend w.as accentuated in the case of the 1942 crop 'by the extremely strong demand for flue-cured and by the fact that the price ceiling was in terms of over-·all 01" avera=:;e prices that could be paid by individual manufacturers rather than in terms of individual grades.

Cigarette Cons~ Establishes New High in 1942

The major factor in the brisk demand for cigarette tobaccos this last season was the rise in consumption of cigarettes. Tax-paid withdrawals have established new peaks monthly and further increases are in prospect. In the calendar year 1942 these totaled approximately 236 billion, an increase over the·previous record in 1941 of about 14 percent. Actually the growth in the mru1ufacture of cigarettes has been even l~ger, for figures on tax-paid 11<1ithdrawals do not include a larg.e number of tax-free ciga~ettes used by members of t"he armed forces outside the "United States •. Stocks of flue-cured

·held by manufacturers and dealers on July 1,· -1942 were approximately 70 percent greater than the 1934-38 aver~e, and probaU!y will still be.large on July 1, 1943 in comparison with· most recent years. ,.·However, 20C.Lto 250 million pormds of these stocks consisted of leaf held by or: for the a:cc::oWlt of the Commodity Credit Corporation. Furthermore, utilization by domestiq manufacturers now represents a larger pr•opc1rtion of ·di sap-pear"ahce than in the. pre-war period. Stocks available for domestic use probably re~resent no more than 2 years' consumption at current rates. In mos't past :p~riods man'ufact'urers have attempted to maintain stocks equal to from 2 ·to ·2~1/? years' ~onsum~tion, in.

·order. that. leaf might be given adequate aging. .A:n.y -lar,ge decline in stocks below present levels would bring them 'close to the minimum consistent with the continued manuf·acture of -tobacco products adapted to the present taste of ·consumer~,

'f ''. i'. •" •:- \ ,(', '' ..

. ,f·· . ' ' At,,~~e pre~entrti:me;.hoy.rev~!. •. it does not appear that any restrictions

on the mari~acture o~ distrib~tion of cigarettes are necessary. This statement was officially made 0y the.:Beyerages and Tobacco Division of the War Production :Board (releasee; by ·the Office. of War .Information on February 22, 1943, W.P.:B. 2577)~· This c·onclusion,:--ras bas.ed'not only on the belief that supplies of leaf tobacco are adequate for the time.being, but also on the fact that no labor problem exists in the cigarette industry, that the industry consumes

· mo,,.stly_ .c.?,al rather than oil, and that imports and su'!_)plies of Turkish tobacco are .stitr adequate. The ,:Bev~:J,"a,ges and Tobacco Division gives some interesting opinion'~" concerning the· ·Cigar,e~1;e ~~ldust'ry and the nat-q.re .of t~e tobacco whic;:h it uses as a ra'~ material. 1t is est'imated _that ap-proxi1mately 60 billion cigarettes, or 25 percent of the total, were consumed by the 'armed forces

TS-25 - 7 -

in 1942. The present importance of cigaret-tes is a ·result of a pronounced upward trend in their popularity. In 1942 per ca~ita consumption amounted to 1,680 cigarettes or nearly 50 times per capita utilization in 1900 and nearly 4 times per capita consumption immediately following the end of World War I.

'' AJ.though .. the industry so far has been able to eope with the

extraordinary demands placed upon it, cigarette manufacturers have been faced with serious production problems as a result of the war. They have had to get along with smaller' quantities of sugar, g1ycerin.and diethylene glycol whic} are essential war materials. Manufacturers have been exper~menting ~rith sub­stitutions. for glycerin but none have proved to be e~tirely satisfactory. The quality of.products~ however~ has been pretty well maintained despite the restriction on ingredients. Glycerin has been partly replaced with glycol propelene, apple sirup, and other substitutes. Furthermore, the use of these materials is less important to the quality of cigarettes than is the quality, the aging,' and the blending of the leaf tobacco used.

Table l. Flue-cured tobacco·: Domestic supplies, disappearance, and season average pric~; average 1934-38, ann~ 194o-42 !}

-- --.:.. --- --- -.-- --- --- --Total :Disappearance : Average · Stocks, ·

•. Production July 1 supply :year beginning: price ____ ._ ___ __;__ July :per po~

Year

: Million Million Million Million

Average 1934-38

: 1940 •••.. : 1941 ••• : •• : 1942 y .. : .

pounds

741.0

759.9 649.5

?) 811.0

844.9

1,4o9.7 1.592.9 1,459· 5

pounds

1,585.5

2,169.6 2,242.4

2/ 2,270-5 ...

pounds

703.9

576.7 782.9

: 21 835.0

Cents

22.9

16.4 28.1

?J 38.3

. -- --- --- --- -- --- --- --1./ Farm-sa+es-weight equivalent. fJ Prelimi~y. ~ Estimat~d.

~IGHT Alit-CURED I B~""'Y TYPE 21, AND l·lARYLAN:L) t TYPE 32

Prices ~ Returns iQ. Burley Producers Highest ~ Record

The selling season for the 1942 Burley cro~ came to a close the week ended February 19. Gross sales amounted to 352 million pounds at an average price of slightly more than 42 cents. It is estimated on the basis of sales data of the Tobacco Branch of the Food Distribution Administration that production will t_otal between 340 and 345 million pounds and the average price received by farmers will be between 41 and 42. cents, compared "rith 29.3 cents in 1941. This means that Burley growers have received ap~roximately 140 million dollars for their 1942 cro"P. The previous peak in returns was 102 million dollars in 1918.

FEBRUAllY 1943 - g __

Effective December 4, 1942, just in advance of the ppen~n~ of the markettng·' s::Jaso:J., Maximum Price 3.egula~ton 28_3 plac~d· m~x,i~um ·.or ~eiling ·p~ices on :Burley tobacco in terms of.United· States stana!f'r~ grades, t-ts fq~l.ows: : ., .

1-Iaximum Prices per Cwt. 1-Ia.:x:im'PU Prices ;::>er C11rt. Grades on '!.oT arehouse Floor Grades on ~V'arehouse Floor ----· ---- ---·--·-·--·--AlL $59.00 :B3F 8l.L .• ~

i ~ •. ·9!00

.A2L 57 •. oq 34F l+3.00 ill 57~00 . ':B5F

. l

" }{.QO

.A2F' •,. I

55-00 :BlR 45~00 ..

Al3. -· 54.00 J32::t ..

1+3.00 .AzR 49.00 :S3R

,·. 37.00

ElF 54.00 :s4:a. 29.50 :s2r 53-00 . :S5R 23.00 3JJ 27.50 C5F 4.S.oo :B4D 21.50 033. 52.00 :B5:!) 1c ~a ~......, . ...(' .. C4R l.~o.OO 33G 29.50 '05:9. 39.on

_J34G. ??.50 C3G 37.00 J35G: 17.00 c4G 32.00 T3F. 38.00 C5G 25.00 T4F' 30.00 XlL 54.00 T5F 22.00 X21 5)_~.00

T3B. 26·.60 X3L 53.00 T4R 20.00 X1!-L 49!00 ·.·;. T5R 14.75 X 51 40.00 . T3D ?0~00 XlF 55-00 T4D . 15.00 X2:T .. ,54_ • .00 T5D

: 12:oo X)F .. 53.00 T3G 17~00 ', Xl.t-F ll-8.00 T4G 15 .. 00 X5F ~39. 00 T5G· ·11.50 ... ,.X3R 50.00 '

ClL 57.00 · · x4:a ltt~.oo-, -·. C2L 55.00 X5::l 3·1!,.00 C3L 54.00 X3G 39.00 c4t 53.00 ~ X4G 32.00 C5L 48.00 .. X5G 22.50 ClF 55.00 ltL 25.00 "'

C2F 55.00 .... ~m:a. "11:00 C3F 51! .00

. C.4F .. 52.00 . · · . . . · , . .! . . · , . · c·:· ·

The methq~1 .of operat-ing the .ceilbg aJ.lmoTed flexibility in :;t'hnt it . perT:J.i t.te.d_ .the -buyer to pay· .hi.gher. than ceilb.g :).rices f0r particulaJ?· grades

o.r .individual lots of iea,f-. H~wev'~r. Ctur.bg each 11e"'k the average .Heighted price for p.ll tobacco. '!:)urc!lase.d .by a, buyer coulc1. :1ot be h.igher tl1n.r. -che :averag.e .-:reig.~.1tpcl c~i~.i~ y~i.ce'.:o;f ,those. gJ?adcs 11hich he pjUrchas '3d. In practi.,c_e., ,._L10~_t of th.c .leaf. sold at. t.h.0 ceil;L1g price for it-s grac',..) throughout tho season. no'•TOV•;r, some green and nondo scri:;_Jt tobacco sol·c(. b 0lo,., coil in.gs.

TS-25 - 9-,.

. . The prie.~.·~·d.~~l~n~ -~l\J!lhlrley tobacco permitted, record higli- prices_.and returns to farine"rs- and at the same time tended to prevent J~.nrea~onable -price incr~~s¢-s. :;w~i:~llr:.!2~- ·have been ~xtJremelY: injutio~~ -·to th~ Goyernmen t '-~ -pol~~~-J~f .ec:Oxi~mic·.:,~tBr,9_,1).~zation and iri, the lo~ ~ wo~d. ;l!~ve ·.been harmful to the '"bast-· inte·test of t:Qe growers themselves.:: ·· ·

. . - ~ ,. ·~·· ~--·!: .... ·t~~-...:-rT.t -·- . ·-· · .. ~0 - .

Allocatli~1i,·o£-:surl'ezJ~~qvided f~·& Gove;rnmen t Ords.i'· .: ·::.--- ·

The excepti,pn~.l.y strong demand for :Burley leaf and .the resu.J.ting will­ingnesf? of numeroul!·\\iyers to pay ceiling prices for mos't• individual-lot's of tobacco made some,1f9rm of allocation of t}J.e crop desirable. Duxing

-:r .- (. • . ... Dece~ber much of t~e~~9bacco was·ar~ttrarily .allocated among the buyers by auctioneers. It was"a,pparent, however, that such a procedure was·arbitrary and :tipsys.tell'_latic and:-~ 'considerable ~ount ot;. speculat'i~e buying and con­fusion resulted. Conseq~ently,·in order to provide fo~ .a more fair'and systematic distribution of the crop among .buying(:.inte'i-'e'sts, an ~allocation

-~r.d.er effective January 7 was issued by the Un~t.'ed 'St'ates: Department of­Agricul turet Und-er th~- terms of l'ooli Order No. _ 4, m~acturers were pe~-:­mitted to purchase 1942 crop :Burley in an ~ount.not to:exc~ed 90 percent· of their-av~rage p~~~ses fr~m the crops qf 19}9, 194o~ and 1941. ; __ Purchases. m~de ~pre'Vi'q1,1.s ~o · the iss"Qance of :the o.rder were c-piint~ a@a.inst each buyer.'-~ a:tlotmeni •. ~ing .orders from ma,nu£ae>t'tlrers exe-c'l,lted by dealers were. no$ ~counted .. -as purchases for the dealers on acc'ount -but:were chargeable to manufactilr.ers• allocations. Reopening of the markets ~olldwiri€: the us~l .. h?.liday recess ··was delayed until January 11, to g~v.~ 'time f-or this' plan of Government-controlled allocations to be drafted and put into eff~ct~

Demand f.or :Burley st'ro~g, Supply Small .· AlJ.?::aiajor buyln~-~interests d.s-~:~ed to purchase more lea£' thi_~ ;ie.ar-:·

thah last,. alt'h.ough th'e quantity of leaf availabl~. tor .p:ur_etu:t,se ""was a:bo'ut· the same. !ple total supply of :Bu,rley. fer; the 19U.2~43·1 se~son (1942 pro­duction ;plu~ ~?tacks· on :O,q·t~be,r~-l)~".is •tfi~· sm~llest sin9e J.9J9,· -b:~_t_·.demand, due la:rgelJC :tt~- inc"reased consumpt~~n. of, .~ig~_etteS)"~ he~· been extremely active. The consumption of :PJ.Ug·;B;nd· twist also has b.e~n.g.:re.~~e!-"uJ:"ilc.en..t-17 than last year. The ;production of smoking tobacco contiliue1;~-:.eo --be smaller than in most recent years, but the decrease in the utiliz.aVon of ~:Burley·:·: ' in this product is small compared with. _th:e, i~r.eased>.'q,]rint.:l.,t.i~s _-r~quired r"6r other products, esp~?_j,a;n¥ _p.igarette.s~·~ ,.Stock!S ftli ·octo~ez'.·"i ·ot 755 million pounds compared• with ~: estimate"d disappearance in the 12 months, Oct_qper 1,-1942 to Septemb'er' 30, · 194}, of 4oo million pounds. The subst\Ult;fal. ·excess of estimated 1942-43 disappearance over.l94J.production·~ill.br.ing stocks on October 1, 1943 to 700 million :PcYtnicf~. or -ies·s~: ·Such a.··l:eyel' of ·s·to·cks will be below the average for the period 1934-36-w~en t~e'cona~ti~n of :Sur ley was only about three-fourths as~ gre~t a~· at·-- the Ifres~nt time.

. .... .. .. ~, . . . ..... " . - . ' ~ :. . ' . ,. . -In recognition of the shortness of :Burley--Supplies .tel~tive to·

--· d.mn.a.n.d. .. acreage allotments for 1943 were increas~d ·to -421,000 acr.e.s or 10 percent 'above the 1942 allotment of 383, O.OQ-: acre·s.· ·The area actually planted by growers in 1942 was 356,4oo acres:·

FEBSU.JAU 194 3 • 10 ...

Table 2.- B~~ey_ ~o~~cco: Domestic supplies, dtsappearance, and season -~v~rag~ price, ave ;rage 193l.j.. 38, ann-qal 1940-42 y -:1,. '· • • :Disap]learance.: Average • Stocks,_ ~ -Total. Year Production • I .. :year .b~ginning: price • Oc·t. 1. supply • ; ·Oc~. • ::12er J20und • .,

Million Million Million Million ::12ounds ;eounds .. !;eounds ... ;eoun~s Cents . >.J

Average_ .•. .. . ,

l93l.j.. 38: 286.~9 700.9 987.8 314.2 22.2 ·- .. .... ~. .. • '

. 1940 ..... : 375~3" 762.3 1~137·6 339·5 16.2 ·194.1 ....... : 336 .• 1' 798.1 1,136.2 380.9 29·3 1942 gj .• : 3~3.0' 755·3 la098•3 2}. 4oo.o 21 41.5

• ' .. . 11 Far~sales-weight equivalent. :g;. Preliminary. ,jj EstiJI!ated.

T~ble 3·~.Ma~yl~d-tobacco: Domestic supplies, 'disappearance, and season . aver~e price, average 1934-38, annual 1940.42.1/ . .

: :Stocks, Jan.: Tot a+ :D;sappear~ce~: Average

,.Year .. :Product ion :of followin~: • followin~. · :: price supply .. . • ye~ • :calendar yeQ.- ·: ;eer ;eound • • •

• Million Million Million Million • t ;eounds ;eourlQ.s." ;eounds ;eounds Cents

; • . .. .. Average .. 193l.j..38 27·5 38._4 65.9 27·5 19·7 ..

• • . 194o ••• • : 32-6 43.2 75·8 30.8 33·0 ' 1941 •••• :

it 30.2 45.0 75·2 33·2 g/ 30.2

''1942 gj ·.:. 30.0 47·7 11·1 . . . . . y=-1-r-_=F~a.rm-sales-w~ight. equivalent. ~.f..Prelinl~ina-ry-. J./ Indicated December·l •

. .. ,. -,. " . . . . . .. . .

• , • • • : r FIRE-~D AND ,DABJt AIR-.CiJ:BED TOBACCO~- .

Fri-~ps. weii Above'~ Season!/ .

. .. : . :· .. .. .. ' ' . .

. Prices of all ~rk tobac·cos have averaged w:ell above .a year ago. ·.A.-larger domestic consumption of snuff, plug .chewing tobacco, a,nd other . .. . .

1} Fire-cured ~arkets opened on the-following dates~ ·.. Virginia fire-cured type 21 - December · 7

Eastern District type· 22 -·January. 5-7 · Western Dist.;-ict., type 23 - January l.j..9

Openin~ dates for dark air-cured sales were: , one Suc~er' .type :35 ...; December· 2...,4 · · · Green B.i ver ~ype 36 - December 1 .. Virginia ~cured type 37 - December· 8

TS.25 ~ 11-

products utilizini l-arge quantities of dark leaf,· improved export prospects associated with incre.ased trade with Africa·,-: increased purchases for the manufact~e of byproducts, .and higher advance prices have been important demand fac·tors cont-ributing to the strength of dark tobacco pric~s. Sales of the 1942 Virginiafire-c~ed crop are near completion. Up to February 25 gross sales. amounted to 13.3 million pounds at an average price of 17.5 cents a poun~. The average price received for the 1941 production was 15.6 cents. Approximately 20 percent of the 1942 crop has been received by the Associations. An average of 17.6 cents per pound was paid for the 24.6 million pounds o£ Eastern District 1942 fire~cured, marketed thro~h February 25., This -compares with an average price last year of 14.4 cents. Receipts of ,<l;he Eastern Dark Fire-Cured Tobacco Growers' Association have

·been comparat.:t.vely light since all .grade averages have been well above advance prides. Through February 10 less than 12 percent of total marketings were pooled. Through February 26 approximately 8 million pounds of Western District-tYPe 23 leaf were sol~ at an average 'of 14.5 cents. The Western Growers•·. Aseociation in a report released February 24 stated that 14 percent of the seasqnts marketings to date had been received by the ~sociation. Sales of Henderson stemming type 24 were reported on January 21 to have amounted to,l38,4oo pounds at 12 cents per pound.·

Sales of Green River ended on February 27. By February 22, 14.7 million pounds had been sold at an average of 13.7 cents, 2 cents above average prices receiv~d by growera for the 1941 crop. Marketings of Qne Sucker.thro~gh Feb~y.15 were ~bove 17.5 million pounds sold at an average of 15. T oen.ts! ·:.·One Sucker leaf of the 1941 crop brought an average price of 11.4. cen:h·• ··.The market fo·r Virginia sun-cured closed February 26. Up to February~l7, sales·. a.m.ount'ed to ·2. 5 million pounds at an average price of 22:. 3::'en~s •. •Tp.is ~s.. ·the. highest price f?r sun-cured since 19~9.·

. ~ -r' .~; ... . . : Low Grade .Dal"'_k .. T.obacco. Reserved· :£l Government

·1,, . I

· AcU•g .-to.,augment supplies of insecti'Cides vi tally necessary to food produc~ion this year, ~he Secr~tary of Agriculture on January 21 issued an oJ;"der-:rese;oving certain iow ·grades of the 1942 crQp of tYI>es 22, · 23, and~J6 for -.use in '!!be manufacture of 'nicotine sul:phate and. nicotine a~lo~d.- Under'this order (Food Distribution ·Order No. 9, effective-·J~ua-ry 2~) toba,cco.of,United States grades X3l~, X3G, X4F, X4Fv, X4D-, X4M, ~xl!.G,. X~,. X5]'V, ~.5l?·• X5M, X5G, and Nondescript offered for sale on auction $arkets.for tY,pes 221 23 1 and 36 can be sold only to man~ facturers of' nicotine --s~phate and nicotine alkaloid. 'l'obacco of these grades bought other than on auction floors and purchased by buyers other than byproduct manufacturers must be resold to such manufacturers. These grades of tobacco are among the lowest grades of tobacco appearing on the market, but they are highly suitable for nicotine production.

Since last April the Department of Agriculture has operated a pro­gram encouraging the diversion of low-grade dark tobacco to the manu­facture of nicotine alkaloid and nicotine sulphate. This program is distinctly different in its intent from the byproduct diversion programs conducted by the Department in earlier years. Previous diversion opera­tions were for the purpose of reducing burdensome stock of dark tobacco

FEBRUARY 1943 - 12-

and supporting prices rece·ived •by farmers. The present program, however, i's being undertaken t-0 increase supplies of do:nestically produced insecti­cides. ·The principal- foreign sources of in~ecticide ·bases, such as

~rotenone and pyrethrum in·the East Indies, have been cut off by the war in the Pacific. ·The need for larger quant·i-ties of domestically produced

·insecticides has ~een increased, not only by the curtailment of foreign supplies but also by the high levels of domestic agricultural production

·.and increased export requirements, most of the latter being ,on a lend-. iease basis. ·

The production of nico·tine sulphate and related topacco byproo.ucts i!f being subsidized by t·he Government in -order to make possible its increased manufacture and sale under pri~e ceilings established by the Office of Price. Admin.istration. Subsidy payments· are made to byproduct ··manufacturers,· 'under close supervision of the Food Distribution Administration.

·Payments .are made. at a rate equal to the difference between· the p;urchase price· which the manufacturer finds it necessary· to pay for.le~ ~~d 3-1/2 cen:ts per pound for tobacco. of types 21 1 22, 23, 24, and 36 except that the rate of.payment may not exceed 7 cents per pound.- For types other than those mentioned above, the rate is ·equal· to the diff~rence between the purchase price and 2-1/2 cents per pound and the maximum payment is 6 cents.

: Supplies Short Relative :to Demand . . Total 1942 production of all dark tobaccos is estimated at about

·~05 million pounds or about the same as in ·l94l·and approximately 3.0 per­~ent -less than the 1934-38 average. Stpcks on Octob~r ,1, 19~2_are _smaller than a year·earlier. The trend in demand for-United qtates dark tobaccos has been downward for a long period of. ,years·, and, with .the outbreak of ~lorld War II, dwindling exports suffered a fu.· ther sudden and abrupt curtailment. The present lev.el of dark.t.obavco prod~ction is the result of protracted efforts by the Government arid producers to adjust supply to decreasing demand.. Di-sappearance in 1941, however, was considerably larger than production, -and di.sappearance ~his season (October 1, 1942, to September jO, 1943) ·will exce·ed ·pr'oduction by a·.higher ~~rgin than in the prece·ding season. As .previously:. stated, this situation is due chiefly to a moderate revival in ·the ·consumpti-on of products maq,e ·from dark tobaccos and

.. to the increased manufacture of ·tobacco byproducts, During the remainder of this season and next year .there will b~ a ·aefi~~te short~ge_o~ the

-'lower grades of dark leaf which ~re Ei'llited to byproduct diversion and some of w2ich Are:also used extensively in the-manufacture of tobacco products.

"l?ri'ces of these gt'ades ·.in the 1942 crop have shown the largest increases over:last year.

Ts-25 - 15 -

~able 4.- Dark tobaccos: Dome"st·i·c ·supplies, d~sappearance, and season average price, average 1934-38, annUa.l 194o-42 1/

1 Y~ar

TOTAL ALL DARK TO:BAC·CO.;;..S ________ _ . . .. :Production: Stocks : Total

:Disappear-: Average :ance, year: price

-· · · : : Oct. 1 : supply : beginning: per . . .. . . . • Oct • __!___pound

Mil. lb. . Ct. - - .. '·-.; ·--=-

Fire-C\U'e~,~'~YP'e-;· : Mil. lb. 21-24, and , dark air- · :

---,--Mil. lb .•

cured, typ~s. 35-37 rr . • r I"

A;-~ra&~ ~19~38£ · .... . 19.4o .. 19,'41 gj . 19.:42 31 ·.

Total, tYPes 21-24 Aver~~ 1934-38 . .· ;~ '1940;. ..

1941 Y. 1942 'JI · . . .

One sUcker • type :35 j.yerage 1:9 34-381.

. . . . . 145.2 257.0

149.9 . 207.2 402:2 161.4 10.0 357-1 98.8 9.0

: . 104.7 .· 258. 3 105..;:...'3"---___ ·2-'-48.6~

~3:0 1-~~-4. . 13.4

. . . ,.

'35'}9 __ -- --,- --FIRE-CURED -

-- ------ -- --=-- ------

110.0 194.2 . 304.2 122.7 10.2 ;·_ -·: 107.4 141.6 249.:0 65.1 .. 9.5

; 73-1 183-9 257 .o 72.4 : . 14.0 ·: ___ 7 .. ,2..:..• 8:::;...___ ---=1;..;::.84. 6 257. 4_-_ -- --- ---

.DA..'UC AIR-ctmED . ·-- --- --- --~ ~ -- _-.;, ----. .

. . t . . •

98.0 108.1 106.0. 96~5

9.4 7-7

12.0

. · '. 19~ .... ... f. : _: ... . '1941 ·2'1

.16~6 '21 .. 9 15.8 15.8

8.9 7-5

11.4 • ...... ! ::J. :·_.. . 1942 y

• • . .

..

15.9 17.5' 13.6 14.0

29.3 . )).1

35.0 . 29.7

45•2 47.6 48.6'. 43.7

2.6 3.0 3.2

11.5 9-3

17.9

D --•-..,..-- -·- -....-- -~ ----"'---- ------!1. Farm .. ~eS""'weight equi:v:.~ent.· · gJ. Preliminary. , . . ·· Jl Indicated D_ecember 1. · ·

FEBRUARY 1943 - 14.:

CiGAR· TOBACCO TYPES 4i-62 ' > ; '< Y• Yo ' ' ~·

_Supplies This Season~ Little Change, -: Production Do.,.m, Stocks ~ : ·· ·

.. ,•

:Production of a+l ~types of _cigar: ·tobacco in' the conttnen:tal United States in 1942 to.taled 126, 7,00, 000 pounO.s, compare'd with approximately -140 million .in 1941 ana. an average of 9-5 ~illion in 193~38. A particu.­larly sharp decline wae regist'erec! this rast ·s·eason in produc'tion of · · binder types due to a decrease in acreage which wis offset to only a ~light degree by a higher yield per acre. For cigar types as a whole the .decrease in acreage ,in 1942 w~s about 1q percent.

Stocks Octobe~ 1, 1942 were larger than a year earlier for all three major categories, fi~~er, binder, and wrapper. In the case of:filler the increase in stocks was sufficient to result in a small rise in total supply, while for binder there wa~·a slight decline and Wrapper supplies·showed little change. -

Prices Higher Than in 1941

Prices ~eeeived so far this season by gro~rs of cigar tobaccos types 41-44 and 51-56 have been approximately 2 aents per pound higher ·on the average than prices received !or the 1941 cro~. Prices received by farmers as of January 15, 1943 were 12.8 for filler and 16.8 for binder, compared with 11.5 and 15.2 on the corresponaing:date a ye~r earlier,

~ ' • I I y •

' -~.. . . . . t , '\] ' w

Effectiv9 Januar.y 23,·i§~3, the Office of~rice Adm~nis~ratio~·rssued ·Maximum Price Regulation 308 placing the ceiling:prices on Connecticut shade-grown toba.eco type 61 •. )op prices. were se~ for growers ~and packers on the basis of the 25 grades of Connecti6ut Valley shade recognized by the industry. These ceilings are 20 percent above selling prices for

·the corresponding grades o! the.: 1941 crop. The increase over. last. season ·reflected an allowance for increased costs of production. Ceiling priees ·by grades range fro~ 8 cents-~~~ pound for loose: l~af to $7.2~ per pound for the finest wrapper (in termS of packea selling weight). Jobbers will determine their maximum selling price by adding 16-2/3 percent to the highest price at which they sold tobacco of the :same grade from the 1941 crop. ~hi.s increas~ for thEl' .J.e:pbers reflects th~e incre'S:~e · to· ·~n€' g~­··packers •• · The Offic.e of Pric.e (.4\d.ministratioh ann'ounced that a ·co'mm1.1ttae of -representatives of .the growe·r:s:/and the cfgar manu,fact~ers wi_ll be appointed by the Office of Price Administration to advise and assist the agency in administering the new regulation. No increase fn the price ;f cigars will result under this new maximum. ·

Consum~tion of Oi~e~s and Scrap Chewin~ Tobacco Continues to Increase

. .Tax~paid withdrawals ~f large cigars during the ~alendar year 1942 amounted to 6, 207 millions, compared with 5• 960· millions in 1941. .Tllis was the highest level of cigar withdrawals since' 'i929. In the summer' and fall of 1942 withdrawals dropped slightly below those of the corresponding months a year earlier, particularly in November~ the month in which: t~i

TS-25 - 15.-

increase in internal revenue levies became effective. However, withdrawals rebounded sharply fn December to pring the ·t9tal for the first 6 months of the fiscaL yea:r 1942-43 above the level of a year earlier. Manufacturers

' are· finding i.t difficult to keep ·up with orders and consumers are not always able ·to find ~heir favorite brands on ~etailerst counters. A comparison betweeq.the ~ifferent classes. is difficult since the Revenue Act of 1942 changeQ...-the basis of classifying cigars. However, consumption of higher priced ci~~-~b.~~ i~creased more rapidly than consumption of :the cheaper grades. . .

· .. Produ~tion of scrap chewing tobacco is running considerably above that Cif'-1941. For the first·lO months of the calendar year 1942 production of scrap chewi~ amotinte~ to 47,780,000 po1rnds, compared· with 37 1 500,000 in the corxesponding period a year earlier, an increase of ne?~ly 12 percent. ·· · ...... .. .... Tax Rates an~·Ce!Iirtg Prices~

.Cigars Ra;sed-

. . '· . The Revenue Act of·l942, which became· effective November 1, suD-'stantially ~~creased internal revenue taxes on cigars. Cigars formerly under class A now ·~a· broke~ into three categories, A, B, and C, carrying rates p.er thousand o'£ '$2.50, $}'.00 and $4.oo, respectively, compared w.ith' a.' previous. ·rate of $2~·oo; 'Cigars previously classed as B now fall partly i.~ .the. new C classificatiQn and partly .in D, and:bear taxes o~ $4.00-and $7.00, respectively, c0mpared w~t~ the· previous tax of $3.00. Cigars previously classed as C, D, and E unde~ ~he new schedule becom.e;E, F, and G. Taxes on these categories ar~ now $10.00~ $15.00, and $20.00, re~pectively, in comparison with the previously e.xisting r;a·t~_s· of $5.00, $10. 50,~ :lmP,. $13.50.

1(: ~~: In.or(ier 'to meet the new si''tuation occasioned by the increase in

internal r~venue taxes and other conditions affecting the cigar industry, the Office of:~~ice Administration iss~ed Maximum Price Regulation 260, New Ceiling Prices fof ~~gars, effective November 1, 1942. The regulation affects · retailers~. m~ufacturers,and jobbers and sets ceiling prices approximately 20 percen.t apove· the· March 1942 levels. For instance, cigars formerly retail ... ing at 3 :for:,.1'0' 'ceiit·s become 4 cents, 5 cent cigars· become 6. cents, former 10 cent Q~·~~ps ·can ·be sold at a maximum of' 12 cents, and so f.orth. The increase:~n.fet~il prices, of course, varfes considerably in percentage terms for the ~Hf~f,~~.~ J?rice classes, due to the impra~ticabili ty. of quoting retail prices i~. ~erms of'fractions of a;cent. Sellers are permitted to add State taxes to; ~p~cifiea·maximum prices: if such'~ditions were customary before the order went into ·ei''fect. ·

"'.'' ·, '. .

4~ various 'times since the original price regulation th~~~ have been five am~~~euts covering various :phases. Imported cigars, whic4.represent le~s than 1/? of.l percetlt of the total cigars sold in the United States, were ' allowed .. a 10 pe:r.cen-:~ increase in: price to cover higher costs. and increased taxes. Eleven Con:tlecticut manufacturers -were allowed to increase manufacturer's' and wholesalers: ma:x:i:w.1um net prices es'tablished by Maximum Price Regulation 260 by an amount rot in excess of the increase in direct labor costs. Other amendments relate to adjustments in retail prices to tax increases of fractions of a cent, to the pricing of new cigars, and to the incorporation in prices of additional State and Federal taxes.

FEBRUARY 194 3 - 16 -

Table 5.- Maximum ~rices for domestic cigars -~der · · .: Ma.."'{imum Price Regulation 260 "'};/

Column 1 · March .~942 ·

stated te·tail prices

·c~lumn 2 . . · .. March 1942 ·.Col~ 5:

-: --Column rr--­: · Mafl..ufacturer s 1

: .. m~yf acturers' : ' · -: ( : ·· · and . . · · . and · . ·Maximum . :' · ··wholesalers '

retail pric'es' wholesalers' : · · .. : · -. maximum

________ -~list pric·es __ ~-:-- _ _...._ __ --,.-...;:;1-=ist pric~ -: . .

1¢ ...................... :. .$ 8.00 :5 for '6¢ ............... :· 7 for 10¢ •.•....••...... : 11.00 :7.for 12¢ •...•.... · ..... : 3 for. 5¢ ~ ................ : i4·~oo :2¢ each ................. : 2¢ ...................... : 1·6.oo :.2for5¢ •.•....•..•..•• : 2 for 5¢ .......•........ : 20.00 :3¢ each .................. :· 3¢. 5 for 15¢ .....•..... : 24.00 :4¢, 3 for 11¢, 5 for 18¢: 3 for 10¢ •.............. : 26 .. 50 :4¢ each •.••....•... · ... : :'. 4¢- ........................ : 32.00 :5for24¢· •...•......... :

· 5¢·:.._.: • ." •. .' ..•...• :.;·;,. .... : 40.00 :6¢ each •..•.•. -..•..•.... : 6¢-·--···-~-···~!!-;_.· ....• ,~·, ..• : 48".00 :7~ each ................. :

· 4- for .2.9~- ~ ".!. ~ .. ..'.:.; ... , .. : 47.00 :2 for 15¢ ·~ ............. : 7¢, 3 for', 20¢: ... . ~·~ ........ ':· ·· 53.50 :~¢ each ..... , ._ •. _ .... -.... :

'•8¢_, 2 fC?r 15¢'·.· .. }~; .. : •.... :· 6o.oo ... _; :9¢ each ........ / ......••..• : _ · 3 for ;2.~¢ · ~ .• _: . .-. :~) .. -•. <. ~.: 65.00 · · .. -..::.lo¢ each··.· ...... ·:··· ..... ;·:

9¢ • · .......... ~ ~ .... · .. i ••.• ; 72.00 .. :~ :5 for 54¢ .. _.:. ..... : .. .'. : · 10¢ -•. -... ~:~~--.. ~ ...... ·: .. :~~ 75.0o- .:;1.2¢ each ........ ~ .. : .... :

11¢ •.... : . . . :. : . ....... .'.::·: , 'S5.00 :13¢ each •••.......... · .. ;·: 2 for 25¢ ............. : .': i·,-. ·9~;oo _ :-15¢ each • ~ · ............. : 14¢ ·.-...................... : •· 110.00 :11¢, 3 for ,50¢ .......... :-15.¢ ...... , ..... · . .-.~.~ ...... :. 115.00 :i7¢, 3 ft:>r 50¢ .... _: .. : .• : 1-~ ,• ••• · •.•• _ •.•.••••.•• •.• :. 0

• 115.00 :18¢ ...•...............• : 17¢,-.3.fo'r_'50¢ -~ .......... : · ___ --135.00 · :3 for 55¢ .. : .... L ...... _ ••• :

'17~. -3 fpr_ 50¢-· .. -:. ...... : · 135.00 :20~ each • .- ....... ~~·····= 2.'·:fo_r. J5¢ .... ;· ........ · ...... :: 136.50 :2l~·each ...•.•.••....... : ·3 f;o~ 55¢·· •.• : ............ : 142.-00 :22¢ each .,.· .• ." .. ~ .. · ..... : 20¢, ............ . : . J. ~ • ~ •••••• : 1.-60. 00 :24¢ each ,;. .· .: .... ·, :• .. ~ ... · ...... : 25.¢,!·!·'"···~~ .............. : 19,.00-.: :30¢ each.~ ..•.. : .. ·.: ...... : 30¢ -•• -- •• :;'_._.·. ·.:; .·~< •.•.•.•• : · : 240~00- . ~36¢ each •.•. • .. ; . · ........ : 35~ •. ·3-,;foZ:.$1.-00 •· ....... : 269.50 :42¢ each,}! o.r.'$1.20· ;.: 4o¢. ..... ~ ·-~- ::-.... ~ ....... : 320.00 . :4'8¢ each .... ~ ·. · ..... ·.- ••• : 45¢ ... : .... : ~: ............ : · 337. 50 :54¢ each ..... , ;_ ~ ..... ; .. : 50¢ ..................... i ··4oo;oo :60~ each ..... ~~ ~ .. ~ .·.· •. : 55¢,·!.•,• ... ·· .. ................ : 412.50 :66¢ each .. !' ••••• ~ •. • •• •• • •• :.

f:J:J.¢ •••••• '.'-. ·~ .' i ,J. ;, ........ : 480.00 : 72~ each ...... ·~· ..... ~- .~ ~ . 7 5~ ! •••• : ~ •. ; • i ....• ·• ..... : · ! :6oo. 00 · ; 90¢ each ............. · ... :

$ 9,.60 ... 13.70

16.00 20.00 ·.24.00

. ';~8.80 32.00 38.4o 48.00 56.00 6o.oo 64.00 72.00 75.00 81.00 90.00 97.50

114.00 130.00 135.00 138.00 148.00 153-00 163.80 170.00 186.00 234.00 280.00 325.00 384.00 432.00 480.00 528.00 576.00 720.00

i/ ~~~-m .S.ection' ~~358,.j.l6_, :A~pendix A,- issued November 3, l942, as ~ende_d __ ---Dec~mb·~-r' J~' :1942·.. · · ·

' : · .. ·

T8-25 - 17 ~-

Table 6:- Cigar .tob·~~eosl · -~Omes~:ic supplies, disappearance, and season average price, average 19 34-38, ·aJ?lUal: 1939-42 y

Ty-pe and year

Total filler, types 41-45 2/ Average 1934-:SS .. ~

1939 • l94o 1941 1942 ~

Pennsylvania seedleaf, tyPe 41 -Average 19~38

.1939 .. 1940

1'941 . " ..

1942 JV ' Mia.td Valley, tYJ?es 42-44 -

Average 19 347·38 ···1939

·• :'l94o :, .. 1941

1942 J/ . /'

Total binde~, types 51-56 5/ Average 19 34-38 · ·

1:939 . ' 194o 1941 1942

~--·-···-- --. -- ·-.-.- ---

• · Stocks~ : Pro due-:. 0 . . . tion ct. 1:

gf. :

. . JJisap­

pearance Total : year supply : begin­

. ning Oct.

:Million Million Million Million ..

Average J?rice

-per pound

:pounds pound.s pounds pounds Cents

44.6 63.1'

·: 66. s·. ·: 66.2 . :ljj 6o.6 .. .

26.7 :: 45.0 . : 50.1 . : 52.0. •:ljj 43.6· .. .

159·9 141.0 150.0 157.0 166:.8

100.4 97.4

106.1 114.3 123.0

14.8 57.8 ·: 17.} 112.0

16.4· 42.6 . : 14.·2 42.7

:4/ 12.-"--0· _43.8

..: 41.4 . ··: 63.3.

: 67~9 : ___ , .. 62:5

56.9 .

165.1 117.5 135-9

. 136.7 137.9

204.5 204.1 216.5 223.2 227.4

129·.1 142.4 156.2 166.3 171.6

5().0 54.0 ..

3Q.O

io.4 11.7 1L9 12.4

:11.2 12.9 13.3 '13.2

72.6 19.1 17-3 59· 3 8.4 59.0 7-7 56.9 9-3 55.8------

206.5 160.6 203.8 199.2 194.8

6o.o. 44.9 67.1 61.3

12.5 16.7 "14 .. 6 17 .o

Connecticut V~ley bro~dleaf, tyPe 51 - . ·

'!'" •

Average 19 3!+-38 1.939 194o 1941 1942

Connecticut Yalley Havana seed, type 52 - . A.ver~e 1934-38 .. ".1939

i94o 1941

.1942

-------- ----.

. '.

.

ll.l. 12.5 12·. 3 13.··3 11.9

8.;0 13•9 13•8 13·8 12.4

35·5 27.9 27.5 ·23.3 26.1

'28.8 22.9 24.6 25.5 29.6

46.6 4o.4 39.8 36.6 36.0

36.6 36.8 38.4 39.3 42.0

13.5 12.9 16.5 10.5

11.0 12.2 12.9 9. 7

17.3 22.0 21.0 22.0

16.5 24.0 21.7 24.7

-·--------~- -- ------Continued -

}!'EJ3RUARY 194 3 - lS

Table 6.- Cigar tooace!bs·~ ~ .. Domestic supplies, disappearance, and seasoh average price, hver~e 19~38, annual 1939-42 Y - Continued

- -; : ... }..,·) ~ ~~ Disap-

"", 'a c -, " •• ..,. .

' . : Produc-: Stocks: Total

pearance Average Type and year ; . Ocj:,. l: supply :. year price

: ·. tion

: g_l . : begin- per ... ning ; pound . Oct • . . :Million. ·l~illion N!illion Ivli11ion :32ounds :QOunds nounds pounds Cents .:

New York and Pennsylvania Havana seed; type 53 - ~ . Average 1934-38 · . ' 1.1 2.3 3.4 1..2 10.0

1939 1.9 2.8 4.7 1.5 10.9 1940 2.0 3.2 5.2 2.1 12.0 1941 2.2 '3.1 5-3 2.3 . 12.9 1942 2.0 3.0 5.0

Southern Wisconsin, type ~:- ' -: . : Average 1934-38 . 12.3 62.5 74.8 21.6 7.6 .

1.939 :. 18.8 34--3. 53.1 9.5 10.3 i94o 20.4 43.:6 64.0 24.6 8.5 1941 ' . 15.4 39.4 54.J3. 19.2 .. 9.6 . ... ... 1942 13.8 35.6 49.4

Northern Wisconsi'n,· type .55 - :· Average 19 34-38 ;. 8.9 .. 36,0 14.9 12.7 9 .. 6

1939 .. 15.6 .. 28 .. 7 44.3 8.3 13.8 1940 . 17.7 36 .. 0 53-7 10.0 11.7 .. 1941 16.9 43.7 60.6 18.6 14~6 1942 16.1 42.0 58.1

Georgia and Florida sun-gro,m, type 56 - 2}

'1940 1.8 1.2 3.0 1.7 14.9 '1941 ~ .9 1.3 2.2 .6 14.5 '1942 ; .7 1.7 2,4

rotal wrapper, types 61-62- . .. Average 19 34-38 8.4 10 .• 7 19.1 8.9 78.3

'1939 11.4 10 .• 8 22.2 9.3 67.7 1940 . 9.5 12.9 ' 22,4 10.7 75.8 . , '1941 : 10.1 11.7 21.8 8.2 77.7 1942 3) -:'!.} 9.2 13.6 22,8

Jonnecticut Valley shade-grown . : type 61 -Average 1934-38 5-9 7.3 13.7 6.3 32.2

1939 8.6. 7-7 16.3 6.5 66.0 194o 5· 5.- . 9.8 15.3 7.4 80.0 1941 . 6.4. 7.9 14.3 6.3 85.0 .

. 1942 JJ . . ' :ljj 5. 7 8.0 13.7 Georg~-]\orida shade gr0wn, •.

tyPe 62 -. .

Average 1934-38 ..

2.5 2.9 5.-4 2.6. 66.9 -· .

19J6 2.8 3.1 5-9 2.8 73-0 19

' 4.o 3·1 7.1 3·3 yo.o

1941 • ~· 7 3.8 7-5 1.9 65.0 __ 1942 2.1 5.6 9.1 ' :4/.5

Continuen =--

'3--25.

Table 6.~ Cigar tobaccos: -~6·~es'tli:c i~pplies: disa:9pearance, and season , ,. -~~,et,.ag~.J>P.i~e).;JtV:e_rage ,~.~3,-fu-3.8, annual 1939-42 ];./ - Continued_.

1/ Farm-sales \.Ieight, \~o~d.e'~ 'type~·ti:gure·~ d~ not check, in all cases, to those prev'tousl'y 1?¥-'\?f:~.,s~--::Peca,.u·se of·-ro~ding to adS!- to the total for the class. In no -case is ... ~~t.e.~·_alf'fel'~l'f~e mar·e·~ .t:n~ ·6ne point. . · . ?) Sto¢~-~ )l~ra· otl.· :e·~llis !tot- itreluded-;. stocks' for types' 45 and 62 are as of July l. 1 Prel:tin:inary .: ... _' J .:· : •• ::. · • · • · .• .' •· •

~ Ind;icf!-~.ed De~~l>-~.r .. l. r .. ~r.,. ·. . 5./ From" ~9.3.?.; to ... 1939 ·there was a grad~ shift in the relative p:roportion of type 45 \filler) a.p.d type; 5..6 (binder). During ,_this period the approximate di'stribution of product~o~. betwe!~n' 'the tw9.: types was· as follol•rs,: · ·. · ·

~ ' ~ . ~

19'3'6,: type 45 . . . . . . . 5b0, 000 '~'ounds . .type 56 • . . . . . • 200 ,.000 pounds

1937,. type 45 ..••..• so·4,ooo 'pounds .. tyP.e 56 •. • ... -. . 42.8, 000 pounds·

1938,. t;roe 45 ....... 949~~·900 poun~s type 56 •....•. 6oo,ooo poUnds

1939, type 45 •.••.•. 700,000 pounds type 56 .....•. b44,ooo· pounds

(See U.s.D.A. Cir, No. 249) Beginning in 1940 ~h,e, w)}ole .c;rop_ was c_lassed as type ~6. ..stocks for any given year were divided between· binder and filler in proportion to· .average product ion for the 2 preceding years. · · · · · · · '

)

Puerto Ric~~-c;o:P,-'smal:t. and. Late in Planti,$ and· Maturi!i ·Y

... ·,· The 1942-43 crop of PU:erto Rican tobacco, .,normally planted in December

a~~ January and harve.st.ed pri~cip_ally.in Feqruary, :tvl~ch,' and April, is much sm~}.:~r th.a.ri, usual~ . Sev1eral fac~s>rs have ,b,een re~pon_sible. 'In the first pl~ce .dif.:q.cl.Uties ,.ex:J?erienced 'i~ connect'ipn with the previous ·crop (1941..-42) ex.e'rcised ~on .. siderable .effect o·n: plant.ings this_ season. lUghe·r labor costs dv.;ii~.g 19-4.2 'slJrbstruit--iaJ..ly increased the do.st of preparation ·of tobacco for market and deiayed business transactions 'between ma:nufac~·u.rers ·and dealers. Furthermore, the-submarine menace restricted exports and'rendered the outlook so uncertain that Federal agencies, cooperatives, and private dealers hesitated to finance a crop for which market outlets were uncertain and for which imported fertilizer supplies were not sufficient. In addition, excessiv• rains caused damage to seed beds so that when the outlook for fertilizers and financial help improved, a scarcity of plantlets developed.

All of these circumstances have resulted in the acreage for the present season being reduced to approximately 11,000 acres or 28 percent of last years' acreage and only 37 percent of the Agricultural Adjustment Agency allotment. Furthermore the planting of the crop has been delayed by at least a month and a small amount of planting is still going on. The abnormality of the season is extending the planting and harvesting over a somewhat longer period than usual. Tobacco from some of the early plantings is already in warehouses a.nd in the curing barns.

!/ Re~ort PuertO Rican Tobacco Institute, February 12, 1943.

F33RUARY 194 3 - 20 - . .. GENERAL ST~ISTICAL DATA . .

Table 7.- -Tax-paid w~thdra,~alslof~t~bacoo·products in th~ Un~ted States. Jul;;:-Jup_e 194o-41, and July-December 1941-42 "JJ

• I ,• ' •

Produc't s ·: --_ ---Y:-:-ea-r~-7be,iinning-:fu"ly: . ·: - · July; .. ."~c~-mb_e_r _ _.--...,_. ==---______ : 194o : 1941 : Change __ ..:........:_ 1941 ·: ·19 2___!_Q.hange

Millions -1-.f'illion·s ·-p-e·r-cent - l>J!lllions Millions Perca:nt

'' Small, cig~rettes •.... : Large ._cig;aret.tes · : . •.. :· Large -c'igars ... -: • .... :· Small cigars .•.•.•... :

189,747 216,905 +14.3 1Q7,918 •.126;-85-4". +17•5 . ·2·' .. ··2-'?)+32.1''' '1· . ::··-~2.-·g/..q.4.5

-5~ 708 ., . : 6,10)'· . + 6.9 : .. '. 3~-219 . 3,'322· ... 3.2 152 139·': :_·s.6 --·- · 10 -- :64 -.8.:6:

Snuff 2f •.....•...... : 38,332 41,320 + 7.8 19,799 19,640 - .8 Manufactured :

tobacco 2/ ......... : 305,083 289,648·- - 6.1

y Tax-paid withdr-aw_a_l-'-~ include- products from the Phili~pine Islands and Puerto Rico. After January 1942 tax-paid withdrawals from the Philippine Islands are not included. ?:} Eased on actual, not rounded figures. 3./ Thousand pounds.

~ Table 8 • .:..'-:Production of manufactu.rea tobacco iri the· ·· · Unit'ed States, Juty:...June ·1940 ~and 1941

Manufactured -~Year begi4ing July . : July-October __ tobacco __ 194o : 19 1 : Change·. :__,..;1~941 ·_ : "1§42· :-"-:_-= ..... c-:-h .... a.nge

1,000 1,000 i•OO~·.l,OOO pounds pounds Percent pounds pounds Percent

. . . . .

Smoking .. · ... · .......... : ' . 2'05, 264 Plug •..•....... · •..... :. : . 49, 328· Twi s t . ·: . . • . :. • . : ·. . . . . : 1• : · 5, 613 Fine-cu~ ... :. · ... 1 .: ... : · 4,·973 Scrap chewing ..... " ."';._.':· 43;326

' -9.0 . - ' 1 t 89 7 ~4.0 ""·18,'009· +4.2 '._ ' ·2.001 ,+4.4 1,897 .

. +5.-1- ·. 15,925 ..... ',. . ....

1 '746 . - •. 8 I 1~,845• +10,2 · · 2.,o.:r~ · :+ 3 •. 6. . ; 1,-746: -. ,8

.. 1-8,8.51 : +18.4

---- ---~ ------:-:-·-- -. -- --..,.- .-. ,-- ---------

Ts-25 - 21' .. . ' ' ,f

Tabie.9•• Index numbers o~ ,producti,n .of tobacco products in the· United ,.sta.t:es. boir}1.--unE!-dJ.ust e~ .and_ .t:ldj~st~d :for seasonal

variation, Jan,uary 19~1~Nov~m~~r 1942 • ~ ' ........ 1.1

.:· ' (~Q;35-39-= 100) ::~·.;;; ':"-- '. ---·--· Year Cigar.ette.s ... _: Cigars : : ~~~~ctuted·~:: ~§tal tobacco

·.·and : . · ~: ; '· -:-·: · :"''' .. -~---.!. ·.· -~toba~co and-snuff: ·_-, ;produc..;..t=-s __ · . ·· ... ; : · Un- . : · ;. · : . U~ . : . : . Unr. i . '~. : Un- : .

.. -month · . adj t ·d~ Adjusted, d. j · t 'd• Adjus.t.e<i, A -l t d.:4dJusted, d·. t' d' AdJusted • us e ·~ ,.1 .a. ':lS e . ~':-.s -e • . .a JUs e ·-- _

1941 :·-~a..n. 119 <.~: 118 .. go F~p. 118 125~: 96 Mar. · : 119 127 100

. -A:f>r• · : -118 127. 111 '.:~·May .. : : .133 131 1o8 , · ;Jime . : 144 131 113 .. J)l1Y ;; : .. ~38 123 111

l Aig, .~:: : '·l36 0 ,, 129 113 . ·sept.·. 146 · 137 120

bet. ·141·· 144 135 ·Nov. : . :14.3 ~ ·149 137 Dec. ·: ~ ·-~121 · : : · 136 · 107

111. 110. 109 117 109 106 106 109 104 112 115 i39

Year· :· · iJ1 7 · ' '· '112· 1942 r ' . •'. • • • '·- ' ~ • . • '" r ' .,. • • . . .•

.. : f - • ~ • • • • • .{ ~ ... • • _, .la.J. - • , • • ..

Jan. 146 144 104 129 Feb. 136 144 109 126 Mar. 127 137 111 121 Apr. 130 14o 114 120 May 142 14o 107 108 June 150 136 120 112 July 153 136 113 109 Aug. 160 152 115 112 Sept,. 170 159 123 107 Oct.. 169 172 140 116 Nov. 167 174 117 98 Dec. Year

"·· 98 95 99

100 100 99 99

.. ::96 : 1i.07 ··lo6

105-,. 83·· ·. 99

96 92 96 96 89 96 91 89 98

104 97

' .

101 108 96 108 97 - 110

' 101 11) 100 12i 97 128 97 123

:· 96 ·122

113 116 117 120 119 118 114 118

'..' 99 132 - 104 . 133

106 -1)4 ~ 95· ·- , --:no

.. ' - a.2o l

·121 '. 128 -- -- 132

129 I~.

99 93 94

1e6 · : ·· ···1'32" ··

97 89 94 89 88 91

102 98

·121 ·. 130 117 125 119 127 123 122 132 122 131 121 135 130 i44 133 149 145 141 14o

Compiled from monthly Federal Reserv_e __ B_u-11etin:- -- -- ------

FEBRUARY 194 3 - 22 ...

Tabl.e '10.;-··'.l'obac~o::. 1Ave~age yieid.' p~r.' acre, by ty-pes, in the _ .. ·. . ··united ·States, 1920-42 '; · .. · .

-------------------- --- ---- ~--.-:Flue- :u.-1 : Mary-: . .Fire-cure.d : Da.l;'k a,ir-e.ur.ed :Qigar

Year

Av. 1935-39 1935 1936' 1937 1936 1939

1940 1941 1942 !/

:cured : Dw.· ey': land. : -- · · · · ··- · : . . : :Jteaf :typeS' .. ~ 't:tPe ~-; ·t·ype ·r-Typ~: Type: TypeiType ; Ty-pe: Type: T;ype:iiype.a.. :11-14 : ·ll:. .. · : :.:32" :- 21 ·:~: 2] : 24 :_35_: 36 : 31.:41-65

Lb • ::Lb.. . .. ,~-· i ~ Lb, L"b. 'L-'b. I ,Lb. . Lb. Lb. Lb .. ·. ~. . .. . 674 926 790 875 861 916

638 769 810 806 796 829 834 838 844 1,27& 792 775 870 821 795. 84o 835 845 . 900: 1,29~ 72.7 I 820 770 805 761 730 730 700 780: 1.:n~ 90.7,_ 650 790 846 817 850 9Q8 900 785; 1,223 833·. 780 710 709 784 875 785 870 780: 1,171 930: 820 910 851 824 850 ~11 875 975: 1,341

'

1,025 905

1,041

1,042 850 835 925 884 850 927 875 925: 1,389 986 750 860 950 954,.: .900 975 975 850 1,439 943 760. 975 963 971: ~.925 999 1,000 950. 1,41~ .

---- ..._!.___ --------- ---- ...., __ --+-Compiled, ··1920-34, from First Ann'Ual Report on Tobacc6:~Statistic·s, Sta.tistieal: B·u.lletin No. 58; 1935-38, Annual R91lort on Tobacco Sttit.:iLstics, ;!:940; 19.39 ... 41, · General Cro-p Report of the Bureau of Ag;oicul tural Economies, A];ll' il 1942, ·and Septem\ar 1942. · • !} Indicated December 1.

\' .

- 23-

Table 11.- Stocks of fore~-grown cigar, cigarette~ and.s~oking ~obaeco, by ' types as. reported CQmpining· ..... tinatemmed: and stemmed, owned by dealers and

ma.nuf acturers in. th'e United States, quarterly, 19 38-42 I .

Y d t -.. ~ Jan. 1 : A:pr. 1 :: July 1 :_ Oct. 1 . ear an ry~ ·:; --~m_l __ . .., --- :·1,000 lb. 1,000 lb. 1,000 lb. 1,000 lb • • . . .

Total foreign;..gr~wn cig;ar leaf., t~·~O:: · 1939 . ..

) • J • 194<> 191:q, ·~: 19.4Z... . ...

I• •{

. ..

. . : .

19,571 _16,252' 17,241-

:. 18',911

. 11,350 .17,194 .19,850 19,695 ..

12,577 15,942 19,2?5 22,411

·cuba ·~rt~vana), t1Pe -.~1-:r. 19~: J • • .;. : ~ • 5.987 6,289 6,418 6,633 ·1~\ . . : . 6,495 6,810 .6,942 7,156 1~41,,, .. •' .~, ::. 1,1JJ 8;14o -9,.215 9,800 1942; . .. • ' ';"I ' ,' ' :, ' ' 9·. 539' 10,107, 11;899 13,192

SUIQa;tra .. and ~ava, ~ype · 82: · . ·· · · · · · · ' . · 19~' .~· •· '- . · r ~ -;-. 1 : · 2,247 · · · 1,879 . · ·. ·2,494 3,021

19tw'< : : . 2,110 l~ 720 . 3,016 2,659 . '1941 ~. , : 2,435 3. 362 . 5.-313 .. ~_.: 5,036

1942 !I . ·. ~-: ., !.f . .i. (.-(_ '.:::! :. ·5,913 ... 6~212 . . 5.954 6,608 fhi11p1)ine I il:ands't (Manila), type 83: . : · · , :·: . , 1939 .. ·;-: . . .~·~ r_ .G,t; : . 2,·ll3l: · · · "2,245 : ~- 2·,·280 2,913

·19l.!o' ~- f .. . : . 5,9.69. ..1~ 654. : . -7,164 . 6,054 194., ~ •..... ;f_ : : • ·6 197 . 'i. '5 7l2 . .. 5 1°9 . 4,236 ,..... ,;- ~; • 1> -~ • • • • • • • ' ' • 7 ..

..,.191+2•" · - •. '"I •.' • ·! ~. •r .!. : : • 3 262 '. '2' 3.5' 6. . .' l,6_08 · J 1,195 ~ ... r · .l· r •·' • I I ~ • .

Pther-' f"C?l'eign".:.~pwn Q}p.T leaf •. \: type sJ4.: : · · · · · · · . ., . : ··1939 ;.I . >;·' .- •· ~ .·.: .~-: ·· ·J····. 158 ... 158 10 •'-),940. ~' . • ' 3 613 ' . . . . 72 ' ~ 7 3

4 ~ c i l P.: A:"~ ... ., ... .l. .- ~ ' • .. ..

19 L-. \. _;·. •·· ·; ·" 105 -.·· .. - ;27' :·. - ... 123~2 .:.:·. 153 -1942· '• : . . ·; .: . ._'(": : ... 597• .. , .... :,23b·,~~t .. ,·23}f ·.·. ;·1,416

Tcrtal fc:>i:eign":"~o.wn ei~ette .and : •· .. : : · · · · · · · '.· .. ·~· - · ' ' · smokingltobacco;· type 90: · · · . i ·.; 1939 . . .~·., ~ ~ .':3.r .:{ .•. ·: :s6,·c39' · - ~ ·1o1t:i~ : ~: 101,530 . l94o · · .. · :i:_}~ d.~: . ·.\ . : 1:r-6,574 ·.·. --11'8':52s _·.~ 112,42o . l-941: . !: • r: 1 . . • j . : 10!-, 733 . - . '98.:~··5~3 - :. 108 i 1302 .

92,655 106,257 99,4137 133,713 ~942 :: ~>:~:1 : r .:·;. . t ... : 90,~~~~ · 1:_· ~.~5~ 78,435

s ... ,.. ··.,I •· ~:. • . __ , ______ _

Compiled. ~rom •qil.ar:terly ~tacks. report:s. of the Food· Distribution A<;lministration. ··1/ Doet·not include stock.$ owu~d by Netherlands Indies.Prod.uce Corporation held in the free trade to~ and'in transit. ·

FEEil.UARY 194 3 - 24·-

Table:··12.- ·AcrE'!age·£atid'-"'pr~duction 6f tobacco in the United St"ates; ·oy types, 1941 ~and 1942

"L . ',. ' ----------------------Acre~e : Pro<iuction __ _

;-'·' 1941 : 1942 :'Change: 1941 ; . 1942 :Change - - _:_ ~/ : ?:_/_: - _: 1/ ' :_ 2/ . : -~-

Ty-ge

-- -- ----,. -~- .. -·

1,000' 1,000 Per- l'-1illion Million Per- .. acres acres cent -oounds pounds . cent

Total flue-cured, types 11-14 •.•..•. Old and Niddle Belt, type 11 ..... . Eastern ·:North Carolina, type 12 •.. South Carolina, type 13 •.•.•.....• Geor~ia and Florida, type 14 •.•.. : . .

Total fire-cured, types 21-24 ...... . Virginia, type 21 •...•............ Ky. and Tenn., ty.pe 22 •.......... : Ky. and Tenn. , type 23 •••..•...•. : Henderson, type 24 ............... :

717.6 266.0 242.0 134.0

75.6

77-1 13.7 44.5 18.7

.2

791.9 294.0 266.0 151.0

80.9

75-3 13.7 42.5

; 18.9 .2

+10.4 +10.5 + 9-9 +12.7 + 7-0

- 2.3 o.o 4.5

+ 1.1 o.o

649.5 225.4 24o.8 120.5

62.8

73.1 11.8 43.3 17.3

.2

824.1 283.5 3()0.6 170.0 . 70.1

72.8 13.4

. 40.9 181.4

.2

. - .. c

+ 26 .. r!J

+ 25.~ + 24.8 + 41.! + 11.6

Burley, type 31 .................... : 342.8 351.1 + 2.4 338.1 331.0 . . ,, Maryland, type 32 .................. : 4o. 3 39,:5 - 2.0 30.2 30.0 .j

: .

Total dark air-cured, types 35-37 •• : One Sucker, type 35 •............. : Green .River, type 36 •............ : Va. sun-cured, type 37 •.......... : . •

32.8 16.2 14.0 2.6

Total cigar filler, t~es 41-44- •... : 43.0 Pa. Seedleaf, type 41 •..........• ! · . .-35. 4 !Uami Valley, types 42-44 •....... : ·· ·:..12. 6 . .

Total cigar binder, types 51-56 •... : Conn. Valley B~oadleaf, type 51 •. : Conn. Valley Havana ·seed, type 52 : N. Y. and Pa. Havana Seed, type 53: Southern Wisconsin, type 54 •..•.• : Northern Wisconsin, tyPe 55 •..... : Ga. and Fla. sun-grown, ty'pe 56 lJj:

Total cigar wrapper, tyPes 61-62 ... : Conn. Valley shade-grown, type 61 : Ga. and Fla. shade-grown, type 62 ;

41.5 -3.3 ·7 .-9 <l. 5 ~i'.o 11.8 1.0

32.6 - • 6 15.8 - 2. 5

. 14.0 o.o 2,3 + 1~·7 :.

4 3-3 - 3. 7 . 34.0 - 4.0 : 9.3 - 22,2

. 36.4 -12.3 7-5 - 9.6

: 7.1 - 10.1 1.3 -13.3 9-2 -16.4

10.6 - 10.2 .7 -30.0

9-5 - 12.0 6.l -10.3 3.4 - 15.0

31.6 15.3 13.6 2.2

66.2 52.0 14.2

62.5 13.3 13.3

2.2 15.4 16,9

.3

10.1 6.4 3-7

32.5 15.3 14.0 2.7

6o.6 43.6 12.0

56.9 11.9 12.4

2.0 13.3 16.1

,• 7

'· + 2.~

o.o + 2.'9 + 22.1

9.-E> - 10.5 - 10.1

9-l - 10.4

4 •. 7 -_1/19-~

~

9.2 3.9 5-7 - 10.9 3-5 5.4

Total, all types ................... :1,311.1 1,380.3 + 5 .. 3 1,261.4 1,417.2 + 12.4 . . 1/ Preliminary. -- ------ ------- -- --g) Acreage harvested and production indicated December 1. J./ Based on actual, not rounded ::f'igure_s. 5} Formerly type 45.

Ts-25

• • : ; : • ..

- 25-

After this report was prepared marketing

quotas for 1tobacco were relaxed as explained in

: the press release reproduced below. • • • •

OFFICE OF WAR I1""FFRMATI01T DEPARTMIDNT OF AGRICULTU:RE

For Immediate Release Friday, March 12, 1943

: . • . • • • • • • •

• •

AG-150

Marketing quotas on flue-cured, Burley, dark air-cured, and fire-cured

tobacco will remain in effect for tho 1943 crop, and growers can exceed

present acreage allotments by 5 per cent or one-tenth of an aero--whichever

is greater--without incurring penalties, Secretary of Agricrulturo Claude R.

Wickard anno~ced today.

Tho increases provided in the announcement are in addition to any adjust­ments already made in tobacco allotments for 1943. Department officials pointed out that domeatie con~ption, plus lend-lease and other exports, have caused a heavy total current disappearance of flue-cured and Burley tobaccos. Requirements for dark air-cured and firo-cured tobacco have been substantially increased by a heavy demand for nicotine insecticide. Even with tho allowable increases in plantings this year, tho supply of flue-cured and :Burley tobacco may be below normal when compared with tho increas­ing demand for tobacco, the officials said.

I

Growers planting more than the authorized increases will be ineligible for loans and subject to deductions from conservation payments and penalties for excess marketings. If the acreage of tobacco, at the time performance is checked, is detor.mined to be in excess of tho previously announced allotments by more than the increase announced today, penalties will be applicable on tho excess. ~obacco growers will not be permitted to destroy t0bacco in order to qualify for payments.

The national tobacco allotment is normally underplanted 5 per cent or more, and this underplanting is expected to be greater this year because of shortages of labor, fertilizer, and other matorinls. The pernissible in­c~eases are expected to enco~rage groator production by small growers without reduction of their vital war crops. Secretary Wickard stated that the permissible acreage ine~oases in no way changed tho provisions of tho 1943 farm program ooncorning achiovoT.'len t of wl:l.r Ol"'p goals.