DEARER SMOKES.

Taihape Daily Times, Volume XI, Issue 3377, 5 January 1920, Page 6

DEARER SMOKES.

ABNORMAL RISE EXPECTED. SHORTAGE OF STOCK ACUTE. CHRISTCHURCH, Jan. "Speaking to ‘a Star reporter regarding the cabled statement from Mel_bo_urr_le that prices- of tobacco, cigars, jand cigal~ettes would shortly be increased by 100 per cent, members of 3. rctail firm which has an importing interest -said‘:—- ' .

V .“The position is that we are now selling in New Zealand manufactured tobacco at a cheaper rate than raw leaf is being Ibought for in America. The shortage of stocks is now becoming acute. One. reason is that buyers for business houses of Central Europe |are again operating on- the American ’market. For months past there has lbeen a gradual rise: probably 25 per ‘Cent. each time, upon cigars especially. I have had an order for cigars booked for fourteen months past, and cannot get them. Another reason for the increase in price for this line is that __tl__lere has been a. strike -among the workers in Havana. and their wages have been increased by 15 per cent_ “The rise in the- prices of all tobac~ cos is. sure to come, but, with all in~ creases, gtbusiness remains as good as ever.” A Allothel- reason given is that any possible increase will, in a large measure, be due to the rate of exchange. The rise in prices owing to this phase and shortage of stocks had been anticipated for at least six months. He regarded the 100 per cent. quoted as rather a stretch of the long bow, but he expected a rise ,probably at any time, of 25 per cent. “So far,” he continued, “we\ have received no definite information concerning a higher rate of charges. vWc never receive ad-vice until the last moment, and then all that is said is that ‘from to-day pfices shall be such andsuch,’ even though a vessel with a large shipment of tobacco aboard may be Iying"in harbour, or on her way down from Wellington. The B.T. have, I know, lost money during the last few months ‘here. Tobacconists 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 more than 100 per cent_- in retail prices, as a proportionate increase must be allowed for the extra capital involved.”