DEARER SMOKES.

Wanganui Chronicle, Volume LXXVI, Issue 17756, 3 January 1920, Page 5

DEARER SMOKES.

ABNORMAL RISE EXPECTED. SHORTAGE OF STOCKS ACUTE. CHRISTCHURCH, January 2. Speaking to a Star reporter regarding the cabled statement from Melbourne that prices of tobacco, cigars, and cigarettes would shortly be increase! by hundred per cent., members of a retail ft-m which has an importing interest Pwid:— “The position is that we are now selling in New Zealand manufactured tobacco at a cheaper rate than raw leaf is being bought 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 been 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 there 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 tobaccos is sure to come, but, with all increases, business remains as good as ever.”

Another 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 10 0 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. We never receive advice until the last moment, and then all that is said is that 'from to-day prices shall be such 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 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."