DEARER TOBACCO.

Hokitika Guardian, 7 January 1920, Page 1

DEARER TOBACCO.

100 PERCENT INCREASE ANTICIPATED.

Speaking to a reporter regarding the . cabled statement from Melbourne that the prices of tobacco, cigars, and cigarettes would shortly be increased by 100 per cent, a member of a Christchurch retail firm, which has an importing interest, said: “The position is that we are how selling in New Zealand manufactured tobacco at a cheaper rate than the raw leaf is being bought for in America. The shortage of stocks is now becoming acute. One reason is that buyers for the business houses of Central Europe are again operating on the American market. For months past there has been a gradual rise probably 25 per cent, each time, upon cigars especially. I have had an order for cigars booked for 18 months past, and cannot get then?. Another reason for the increase in price for this line is that there has been a strike among the workers in Havana, and their wages have been increased by 15 per cent. A rise in the price for all tobaccos is sure to come, bub with all the increases business remains just as good.” Another retailer gave it as his opinion that any possible increases would be in a large measure due to the rate of exchange. A rise in prices, owing to this phase and to the shortage of stocks, had been anticipated for at least six months. He regarded the 100 per cent quoted as rather- a stretch' at the long bow, but he expected a rise, probably at any time, of 25 per cent. So far, lie said, we have received no definite information concerning the higher rate of charges. We never receive advice until the last moment, and then all that is said is that from 1 today prices shall be such l and such, even though a vessel with a large shipment of tobacco aboard may be lying in harbour, or on her way down from Wellington. The trade, I know, lost money during the last few months here. Tobacconists generally assume that an increase of 100 per cent in Melbourne (if made) will apply to all tobaccos and cigarettes coming to New Zealand, as most of the lines come through Melbourne. This will mean that 100 per cent in. retail prices a s a proportional increase, must be allowed for tlie extra capital involved.