THE SMOKER’S BURDEN

Hokitika Guardian, 23 March 1922, Page 3

THE SMOKER’S BURDEN

WILL PRICES FALL?

i •“ NEW ZEALAND’S CONSERVATIVE TOBACCO TASTE.” THE GOVERNMENT’S SHARE. WELLINGTNON, March 19. " The Government takes 3d, the •merchant and the retailer together lake and the manufacturer takes .'B.sd, wliicli covers the cost of the leaf,” *;fid the general manager of a. proaninent firm of suppliers to the trade i aii tobacco and cigarettes yesterday to *:a representative of the “Times,” in I ;a:niswer to a question, as to how the 9d ' The citizen paid for his packet of eigari. etl.es came to he allocated. J LIMITS OK SUPPLY. i The question was prompted by a : rumour that had gained only slight t cunvney, that a fall in the price of 5 -tobacco and cigarettes was eonteni- | plated. The suppliers’ manager did mot encourage belief in the rumour, i '‘Manufacturing costs and the price ol • L.baceo leaf are still as high as ever. The world’s consumption is going up j every year, but the area that will grow | tobacco is the same as it was half a i century ago. It is practically conliu- | ed to the States of Carolina and \ iri :ginia. No country can compete with ; them ; it is simply a matter ot supply j rand demand. “New Zealanders insist on smoking ] tobacco and cigarettes of a high grade, i They are even dill'erent to Australia iii ! this. You have only to compare the i quality and the price of the cigarettes, j for instance, that are most in vogue in r the two countries. You can’t g/et the ' tobacco they want, except at a very high n ice. You can get cheap grades, at a low price, but they will not beI come popular. The recent duty on J tobacco is a big ieature in the price

' .nowadays. ! CONSUMPTION NOT FALLING. | “ Tlicrc is as yet no indication that > I!k> consiini|ilion of tobacco and cigar- ' ottos Inis fallen, as a result of the j duly, hut smokers are (hanging their habits. For instance, the man who j made up his own cigarettes was the ! hardest hit by the tariff. The duty j of this “ shag ” is now no less than Ids. j if it was intended to get levenue from < ihis increase, the anticipation of the framers of the tariff will not hM realised, because that man is dropping f out. He is taking to the made-up | cigarettes, or to the pipe, rather than \ pay an exorbitant price. Retailers ! are also very shv ol this hue. Many | of them are still in possession of old j stocks, and they are not inclined to | risk loss by purchasing at the new | prices created by the tariff. The nub- | lie are getting the horb.'it to an c.x----|-lent, until those stocks disappear.” ] SOMETHING FOR SIXPENCE. j A somewhat different point ol view | was expressed by a prominent to- ! hacconist. “ .Smoker:-: arc now going in

for cheaper grades of tobacco and cigarettes,” he said. 11 They are parting with their reputation of being conservative and discriminating. Now they want something that they can smoke for (id, as against the 9d they have to pay for their cigarette since the tariff came in. It is only fair to us that the public should know they are benefiting to some extent still, in the .mailer of prices.” Hr mentioned one brand, that all the “homes” Lad big istoeks of; they were still being sold at Bd, although the schedule retailprice was 9(1. COMPETITION* AND TARIFF.

“ As soon as the suppliers feel the pinch from competitve lines, 1 am satisfied that they will immediately full into line, and reduce their prices,” said this retailer. Tobacco seems pretty (inn in price. The duty is 4s Sd per pound for plug, 4s 10 lor cut, end 10s for cigarette tobacco. Some ot’ the tobacconists have replaced their cigarette tobacco, lint they realise that, if they stock up wiMi it, they may he “left,” and suffer heavy loss. Thcr; are quite a number of brands that we nvo still selling under schedule prices. I l ,ere is an example:—There is a hi and of cigarettes that has a big sale in New Zealand, and we are idling at 2s and 2s 3d, as against the schedule price of 2s Sd. The smaller lots of tins brand are being sold at Is, as against Is 4d.

NOTICE OF REDUCED PRICES. The tobacconist summed up bis views thus:—V You cannot reasonably expect any reduction in tobacco until the duty goes down. What reductions are going on now are t! e outcome of individual retailors, that are “jobbing ” stocks in which they were overloaded. It is true, however, that the merchants have intimated that they will give a month’s notice that prices wilt come down.”