DEARER SMOKES.

Hawke's Bay Tribune, Volume X, Issue 18, 5 January 1920, Page 7

DEARER SMOKES.

ABNORMAL RISE EXPECTED ADVERSE EXCHANGE . SHORTAGE OF STOCKS ACUTE.

Speaking 'to a Christchurch ’‘Star” reporter' regarding the' cabled statement from Melbourne that’ prices Of tobaccp, cigars ancb cigarettes would shortly be increased by one hundred per cent, members of a retail which has an importing interest; said: “The position is that we arp now selling ip Zealand manufactured tobacco at a cheaper rate than raw leaf is bring bought fpr in Am©(ca. The shortage of .stocks is now. becoming acvtie. Ope' reason is that buyers-for business houses of Central Europe are again operating bn the American market. For months past there has b©ep a gradual ruje, probably 25 per cent each time, upon cigars especially. I have had an order tor cigars booked for Fourteen months past apd cannot get them- Another reason for the increase in price for Uns line., is that there" has been a strike among the workers' in Havana, and their wages have been increased by ; 15 per cent. . ’“The riaein the prices of all tobaccos is sure to. <j»me, blit, with all . increases, business remains as good as ever.”

Another opinion given is that. any possible increases will, in a large measure, be due.Jo,the rate of exchange. The rise in prices owing.to this.phase, and shortage tof stocks, hadjbeenanticipated for at least gix-mouths. He regarded the 100 per cent criidta as rather a stretch of'the long bow, "but heexpected 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. "We never receive- adyiee until the last meat, and -then all that is said is that ‘from to-day prices shall be such and such’, even though' a vessel with a Jaige' shipment of tobacco aboard may be lying 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 mosj of the lines come through Melbourne,' this will mean more than 100 per «mt m.rittajl prices, m. a proportionatb ihcreasd ihust' be alfow-, ed' for the'extrwCafKtal involved.” ‘ ,