Business: Cigarets

The consumption of cigarets in this country possesses a double financial significance: 1) to the industry itself; 2) to the Government, since internal taxes upon them constitute an important source of revenue.

Ten years ago, U.S. cigaret production amounted to about 17 billion annually. For the coming year, production was, last week, estimated to reach 73 billion by Commissioner of Internal Revenue Blair, who stated that, this year, the tobacco industry would yield more revenue to the Government than all sources of internal revenue prior to 1914, or about $345,000,000. Tobacco taxes amount to $3.12 per capita. The U.S. leads in the production of cigarets, and the Governmental revenue derived from them. It is second only to Belgium in per capita consumption.

Over the same ten years, however, cigaret production and consumption has also increased in other countries; in Japan production has grown from 7 to 23 billion, and in Germany from 12 to 23 billion.

In 1919, the tobacco crop was marketed for about $500,000,000 and was raised by some 450,000 U.S. farmers. As a farm enterprise, tobacco in this country is exceeded only by corn, hay, cotton, wheat and potatoes.