The Poverty Bay Herald AND East Coast News Letter.

Poverty Bay Herald, Volume VII, Issue 1103, 24 August 1880, Page 2

The Poverty Bay Herald AND East Coast News Letter.

PUBLISHED EVERY EVENING. TUESDAY, AUGUST 24, 1880. -CrEEAi expectations were formed some two years back that" Poverty Bay would become an. important tobaccogrowing district. Great apathy was certainly displayed on the part of the Bettlers; for although . Mr. Gotch offered most favorable terms in giving the necessary instructions for the cultivation of the plant, and the preparation of the leaf for market, there wasnone^found to avail themselves of SUcH a rare chance of initiating this industry/But unless the Government remit, •or greatly reduce, the duty upon tobacco cultivation in the colony, no attempt will be renewed inthe direction Of tobacco growing, although it is well-known both soil and. climate in Poverty Bay are admirably adapted for the purpose. The Commissioners in their report, inform Ministers that the most important,; industry which has been, brbught under their notice . '

"Is undoubtedly the cultivation of tobacco for manufacturing purposes. The evidence establishes the fact that •any quality of the finest American, can -be grown in New Zealand, and that there is no reason 1 , why the whole of the tobacco consumed in the colony should not ultimately be "produced and manufactured in it. This industry would afford profitable employment to cottage farmers, and also to women and children, and would utilize large tracts of lands which at present .are either .waste or yielding but little. Haying' satisned themselves on these points, however, the Commission are met by the representations of the revenue . officers, who show that if the" tobacco industry were to be allowed to flourish,, one of the most important sources of revenue (the only source, which can be absolutely depended on) would be dried up. The operation of " The Tobacco Act, 1879," undoubtedly is to destroy the tobacco industry.. It has actually had that result. But this appears to. have been the object of the^Actj and the tendency of the policy recommended '. by the Customs Department and. -adopted l>y the Government. That policy having b een decided upon, it is . useless for the Commission to m-'ke any recommendation on the subject of tobacco. '■'_ A compromise in such a case would clearly be vicious. If the Customs revenue is held to be of paramount importance — as it unquestionably is at present — then the growth of tobacco ought to be prohibited, as it practically is by the Act of last year. If however, the local industry is Jield to be of paramount importance — as we trust it wUloesome day— then no restriction- should "be placed upon_ its pursuit, at all events until its early difficulties are overcome. The Commission are assured tMt after six years 1 cultvoaiion tobacco could be prodwed in\ New Zealand, equal vn quality to any j now imported ; and that, tJie industry once established, tJw same amount of

revenue that is now raised by the Customs duty on imported tobacco could be raised by means of stamps on tlie, locally-produced tobacco." 1 Surely, thenj with such evidence as ! has been received, and such a strong recommendation made, the Government will remove or modify a duty which makes tobacco-growing in the Colony amount to a prohibition. Mr. G-otch, writing to Mr. Commissioner Tinnk, says : — " I feel it my duty both for my own personal interests and in behalf of the cause you so >r warmly advocate to Tay before you the particulars of my own case,|and as the utter extinguishment of a promising local industry will stand unequalled in the Colony of New Zealand. I refer to the manufacture"6f tobacco, at which I have been working in various parts of this province for the last twelve years, and during that time have struggled against the most disheartening reverses, partly from popular prejudice tigainst New-Zealand-grown tobacco, and partly from unsuitability of climate. I, however, finally settled down here in the Bay of Plenty, encouraged by the mild temperature ; and have succeeded in raising a very superior crop of tobacco, which I had partly manufactured and arranged for the sale of, when the imposition of the tobacco duty put a stop to my proceedings, as I cannot possibly with my single-handed plant of machinery compete against the large American manufactories. I am consequently, at the very moment when the brightest prospects of success were opening up for me, thrown with my family into the deepest distress and ruin, with liabilities upon my shoulders which I incurred in all good faith upon the promising aspect of my local industry, and which have now involved me in moral as well as pecuniary ruin. I freely invite the fullest inquiries into the particulars of my case. If I might be permitted to make a suggestion, it would be to the effect that the duty upon local production should be Is. on the pound of manufactured article, leaving the protection of 2s. 6d. against the imported article. The justice of this proposition will be explained by the fact of the great extia trouble required in this country for the production of a crop equal in quality to that which grows spontaneously . in the States of America, combined with the absurd prejudice which exists, that home-made tobacco cannot be as good as imported, ail of which tends to keep' down the market' value of the article. Trusting that you will give these obser-^ vations your careful ■.-consideration." Evidence of Mr. Vollbracht before the Commissioners on Local Industry, at Wellington, 2nd June, 1880 : — lam one of a party who came from San Francisco a year ago to manufacture tobacco. I laid particulars before Mr. Ballance, Commissioner of Customs ; but, under the Act passed last session, there are no prospects of successfully carrying on the manufacture. The charge on- our colonial tobacco is 3s. Gd. I find our tobacco is better than any other colonial tobacco ; but still, we are not able, for the first two years, to make as good a quality as that we import from America. In five or six years I have no. doubt we shall produce as good a leaf as the American ; but at preseut the bonus of 6d. offered to our industry is insufficient. The colonial tobacco should not be taxed at more than Is. per pound during the first few years. When the cultivation has been improved we shall be able to compete on even terms with the American tobacco. We contemplated establishing the industry on a large scale. — sufficient to supply the whole colony ; but under the Act we are quite prevented. It was on my recommendation that the Tobacco Act was passed ; but I recommended that the duty on colonial tobacco should be only Is. per pound, whereas under the Act it is 3s. 6d. per pound. It would suit as well if the bonus were raised from 6d. to 2s. 6d. My remarks apply only to the New-Zea-land-grown leaf. We do not object to the 3b. 6d. duty on the imported leaf. As a manufacturer, I could give Is. per pound for the leaf grown in New Zealand • The Chinese laborers in California get 30 to 40 dollars a month. In the Eastern States the white laborer gets 60 to 70 dollars. In the West the hours of labor are eight per diem ; in the East they are nine. 1 believe that on the East Coast of New Zealand they could get two crops a year for .five or six years in succession. It will not do to have too rich soil. Labor here is 25 per cent, cheaper than through America. Extract from a letter by Mr. Vollbracht to tlie Commissioners -on Local Industry : — "I beg to state, for the information 1 of jthe Royal Commission on Local Industries, that I have examined some tobacco grown at Opotiki, and have compared it with samples of leaf tobacco grown in Victoria and New Soubh Wales, and I find that it is 25 per cent, more valuable. The present price of colonial tobacco, wholesale, (duty' paid); is from 3s. to 3s. 6d. : it would cost from Is. to Is. 6d per pound to cultivate and grow it ; the manufacturing would cost about another shilling. It is therefore ' clear that if duty be charged on tobacco grown within the colony, it cannot possibly pay anyone to grow it. I know of some land now under cultivation for growth of tobacco ; and three persons of experience in such cultivation have arrived from America, intending to begin at once to plant. Unless the duty be removed, however, it cannot possibly pay anyone to grow tobacco." So we here see upon evidence not to be disputed that the Government prefer to crush out of existence a most important and lucrative industry that would give employment to thousands of men, women and children, because the revenue derived from imported tobacco stands in the way, This is something so monstrous as to be beyond all precedent in the history of nations subsequent to the reign of Charles I. As well might the Government impose a duty on the woollen manufactures of Otago that the ad valorem duty on imported tweed cloths and ■woollen goods may be increased. We believe Ministers acted in blind ignorance, and that now their eyes have been opened by the evidence before them, they will greatly modify the restrictions placed upon the cultivation of Colonial tobacco.