In October 1915, a law was passed, effective 1 Jan. 1917, for the government control of the tobacco industry, raising, manufacturing and selling, on the basis of concessions to producers and selling agencies. By its provisions, the production and manufacture are exempt from all fiscal taxes; written notice to the competent authority is required of all persons desiring to raise tobacco, and license is given without charge. Subject to confiscation, tobaccos and products may not be transported from one place to another, even in the same town, with out a permit. Taxes were provided for all tobaccos on hand on 1 Jan. 1917, and in the future the privilege of selling tobaccos is to be auctioned annually, for the various districts or provinces, or for the whole republic, fiscal taxes being likewise imposed upon the conces sions, varying from $87.60 to $4,672.
Guatemala.— In quality, Guatemalan to bacco ranks high. Due, however, to antiquated methods of handling it, it has not acquired the commercial value that its qualities merit. It is raised throughout the republic, but • the favorite leaf is produced in the vicinity of Zacapa, at Barberina and vicinity, and also at Chiqumulilla on the west coast. The quantity raised in 1903 was 1,065,000 pounds. The total annual production has recently been estimated (1916) at from 250,000 to 300,000 pounds, when, judging by the quantity.manufactured, it should be five times this. Due to the high duties on imported tobacco and its products, the domestic leaf is largely used in the local factories, al though a very large ouantity is imported from Honduras, which is incorporated with the native leaf in the manufacture of cigars and cigarettes for export. Rapid progress has been made during recent years in the manufacturing of tobacco, both as to• the quantity worked and the methods employed. While the small factory predominates, there being hundreds of shops producing hundreds of thousands of fine and ordinary cigarettes, there are also four ma chine-made factories in the country, produc ing an aggregate of 640,000 cigarettes per day. To protect the small shop, the government on 23 Nov. 1916 issued a notice requiring the pay ment of a tax of one centavo on each box of machine-made cigarettes. All domestic cigars are made by hand, the industry being an im portant one. Guatemala and Honduras tobacco are generally used, with a Sumatra wrapper bought in the United States. Most of the ordinary cigars are made by Indian women and children, whose labor is cheap, some of the cigars selling as low as $2 per thousand; those of better quality sell for from $0.02/2 to $0.05
each. The cheapest machine-made cigarettes sell for about $1 per thousand. The domestic con sumption of both cigars and cigarettes is large.
In 1915 Guatemala imported leaf tobacco to the value of $2,575; manufactured, $10,398. Of the leaf tobacco, $2,205 worth came from the United States, the remainder from Holland. Of the tobacco manufactures, the United States supplied $4,265; Cuba, $3,262; Germany, $950; Mexico, $760; England, $827; Jamaica, $163, and the remainder from Holland, France, Japan and China. As showing the consumption of cigarettes in the country, the imports of cigarette paper for 1915 amounted to $29,666, of which Spain supplied $26,311 worth; the United States, $1,637; the remainder coming from Ger many, England and Denmark. During the same year exports amounting to $18,954 were made to the United States, Colombia, Honduras and British Honduras. Of this, $13,054 was manu factures, and $5,900 leaf tobacco.
Honduras.— Statistics regarding the pro duction of and trade in tobacco in Honduras are lacking, but from the reports of the United States consular agents in that country and Guatemala, it is apparent that tobacco of a commercially fine quality grows in the country, but that through poor methods of curing. it has not generally become an article of world ex port, but is sufficient for domestic needs. A large quantity is shipped to Guatemala, where it is manufactured, some of it being returned and some re-exported, and Peru. In 1913-14 there were imported tobacco and tobacco manufac tures to the value of $17,146, of which the United States contributed $10,386; 1914-15, V0,520, of which the United States contributed $13,436.
Mexico.— The revenues derived from the profits. of the tobacco monopoly in Mexico amounted, in 1783, to $777,651 • and in 1801-02, to $4,000,000 silver, the monopoly of the tobacco industry having been a prerogative of the Crown from the time of the Spanish conquest. With independence, the industry languished until 1868, from which time it has gradually in creased. In 1889, Mexican tobacco obtained the gold, silver and bronze medals at the Paris Ex position, being adjudged superior to the best Cuban leaf. Later, the French government gave official notice through Regie,s the special department concerned with the monop oly, that Mexican tobacco was acceptable for its uses.