The import tariff imposed on Cuban cigars by the McKinley Act was a great blow to the manufacturers of Cuba. Many of them moved their factories to the United States, where, being able to import the raw material on favorable terms, they found themselves in a position to make and sell cigars of Cuban tobacco at a profit. The effect of this movement was to greatly decrease the exportation of manufactured tobacco from Cuba and to increase proportionally the shipment of leaf. At the same time the production of cigars in the United States expanded greatly and reached the enormous quantity of 5,000,000,000 per annum.
As a remedy to this condition of affairs, the Cuban Government removed the export duty on cigars and cigarettes, whilst maintaining that on leaf tobacco and increasing it on the higher grades. The justice and wisdom of this step are illustrated by the following statement by Mr. Bock:
“To manufacture in the United States 1,000 cigars, weighing 12 pounds, sold in Habana, unstemmed, 25 pounds of filler, and 5 pounds of wrapper, we should arrive at the following results:
A TOBACCO FIELD AFTER HARVESTING.
| For export duty on the leaf in Cuba, 30 pounds of leaf at $12 per 100 kilos | $3.60 |
| Import duty in the United States on 25 pounds of filler at 35 cents each | 8.75 |
| Import duty in the United States on 5 pounds of wrapper at $2 each | 10.00 |
| Total | $22.35 |
| The same 1,000 cigars imported from Cuba, weighing 12 pounds at $4.50 per pound | $54.00 |
| Export duty, 25%, ad valorem, valued at $60 per thousand | 15.00 |
| Total | $69.00 |
making a difference of $46.65 against the Cuban product.”
The tobacco interests, like the sugar planters and manufacturers, are hoping for a turn of the political wheel that will bring about free trade or complete reciprocity between the United States and Cuba. The need of relief is not so great, however, with the former as with the latter. Cuba’s tobacco industry is in a fair way, with every likelihood of improvement in its favor.