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Sugar Acts of 1934 and 1937 is estimated to have amounted
for which the demand, once considerable, has decreased,
(from fiscal 1935 to fiscal 1949) to $165 million.
owing to (1) a demand for cheaper cigars, (2) a shift
to cigarette smoking in the United States, and (3) dis-
Since tobacco, like sugar, enjoyed tariff protection,
placement of Puerto Rican hand production by continental
the cultivation and manufacture of this product have
machine methods. The Interdepartmental Committee of
attracted American investment capital, but the prosperity
1939-1940 found that since 1926 American enterprise had
1
of tobacco production, unlike that of sugar production,
been withdrawing from tobacco cultivation and manufacture.
has not been sustained. Constituting only 8 percent of
the island's exports in 1901, tobacco and tobacco products
In a memorandum submitted by the Puerto Rico Marketing
rose to 17 percent in 1911; stood at about 20 percent
Association to the Senate investigating subcommittee in
in the decade 1921-1931; dropped from 17.5 percent in 1931
February 1943, it was pointed out that nearly 24 percent
to 11 in 1932 and 8 in 1933; fluctuated at 8 to 10 percent
of the population derived their livelihood from the
until 1944; rose to 20 percent in 1945 as a result of war
tobacco industry; that the industry was severely affected
conditions; dropped to 13 percent in 1946, to 9 percent
by the hurricanes of 1928 and 1932; and that although
in 1947, and to 5 percent in 1948; and rose to 12 percent
many tobacco farmers had been able to obtain loans from
in 1949.
various Federal agencies, far more extensive credit
facilities were needed, particularly by the small farmers.
The reason for the decline of the industry in the island
The Association also desired a larger market for the
is that the product is of an expensive cigar-filler type
island's tobacco on the mainland. 2
A commission to protect the interests of tobacco
1
growers and processors was created by the Legislature in
Hearings
Pursuant to H. Res. 159, pp. 1790-1792.
1929, but it apparently accomplished little. It was
Annual Book on Statistics of Puerto Rico, 1948-1949; p. 67.
replaced in 1935 by the Tobacco Institute of Puerto Rico.
There is also an Office of Tobacco Production and
2
S. L. Descartes, Basic Statistics on Puerto Rico
Adjustment under the Department of Agriculture. 3
(Washington: Office of Puerto Rico, 1946), p. 50; Hibben
and Pico, pp. 68-71; Perloff, pp. 91-93; Annual Book on
Since the mid-1940's the insular Government and the
Statistics of Puerto Rico, 1948-1949, p. 95. Apart from the
tobacco growers and distributors have initiated many
tariff protection, which accounted for the industry's
measures to improve and standardize the types of tobacco
initial expansion, the Federal Government has in recent
produced, as well as to regulate production and distribution.
years aided the tobacco industry by the extension of credits;
the application of the Agricultural Adjustment Act to
tobacco in Puerto Rico; contributions by the PRRA to the
1
Tobacco Institute of the University of Puerto Rico;
Zimmermann, pp. 220 and 228-230.
purchase of unused tobacco land by the PRRA; application
of the Soil Conservation Domestic Allotment Act to Puerto
2 Hearings
Pursuant to S. Res. 26, pp. 514-517.
Rico; and extension of price support by the Commodity Credit
A recent account of the history and current conditions of
Corporation. Zimmermann, pp. 210-236; Hibben and Pico,
tobacco production appears in Hibben and Pico, pp. 4-5,
pp. 95-96. Compensation payments to tobacco growers in
9, 39, 68-71, 95-96, 100, 141. For statistics of
Puerto Rico under the AAA for the fiscal years 1934 to
unmanufactured and manufactured tobacco since 1900,
1943 amounted to about $6.7 million; Annual Book on
see Annual Book on Statistics of Puerto Rico, 1948-1949,
Statistics of Puerto Rico, 1948-1949, p. 67.
pp. 67, 72, 95, 253-256.
3 'Manual of Government Agencies in Puerto Rico, pp. 53,
71, 176.
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"ocrText": "RESTRICTED\nRESTRICTER\n-283-\n-284-\nSugar Acts of 1934 and 1937 is estimated to have amounted\nfor which the demand, once considerable, has decreased,\n(from fiscal 1935 to fiscal 1949) to $165 million.\nowing to (1) a demand for cheaper cigars, (2) a shift\nto cigarette smoking in the United States, and (3) dis-\nSince tobacco, like sugar, enjoyed tariff protection,\nplacement of Puerto Rican hand production by continental\nthe cultivation and manufacture of this product have\nmachine methods. The Interdepartmental Committee of\nattracted American investment capital, but the prosperity\n1939-1940 found that since 1926 American enterprise had\n1\nof tobacco production, unlike that of sugar production,\nbeen withdrawing from tobacco cultivation and manufacture.\nhas not been sustained. Constituting only 8 percent of\nthe island's exports in 1901, tobacco and tobacco products\nIn a memorandum submitted by the Puerto Rico Marketing\nrose to 17 percent in 1911; stood at about 20 percent\nAssociation to the Senate investigating subcommittee in\nin the decade 1921-1931; dropped from 17.5 percent in 1931\nFebruary 1943, it was pointed out that nearly 24 percent\nto 11 in 1932 and 8 in 1933; fluctuated at 8 to 10 percent\nof the population derived their livelihood from the\nuntil 1944; rose to 20 percent in 1945 as a result of war\ntobacco industry; that the industry was severely affected\nconditions; dropped to 13 percent in 1946, to 9 percent\nby the hurricanes of 1928 and 1932; and that although\nin 1947, and to 5 percent in 1948; and rose to 12 percent\nmany tobacco farmers had been able to obtain loans from\nin 1949.\nvarious Federal agencies, far more extensive credit\nfacilities were needed, particularly by the small farmers.\nThe reason for the decline of the industry in the island\nThe Association also desired a larger market for the\nis that the product is of an expensive cigar-filler type\nisland's tobacco on the mainland. 2\nA commission to protect the interests of tobacco\n1\ngrowers and processors was created by the Legislature in\nHearings\nPursuant to H. Res. 159, pp. 1790-1792.\n1929, but it apparently accomplished little. It was\nAnnual Book on Statistics of Puerto Rico, 1948-1949; p. 67.\nreplaced in 1935 by the Tobacco Institute of Puerto Rico.\nThere is also an Office of Tobacco Production and\n2\nS. L. Descartes, Basic Statistics on Puerto Rico\nAdjustment under the Department of Agriculture. 3\n(Washington: Office of Puerto Rico, 1946), p. 50; Hibben\nand Pico, pp. 68-71; Perloff, pp. 91-93; Annual Book on\nSince the mid-1940's the insular Government and the\nStatistics of Puerto Rico, 1948-1949, p. 95. Apart from the\ntobacco growers and distributors have initiated many\ntariff protection, which accounted for the industry's\nmeasures to improve and standardize the types of tobacco\ninitial expansion, the Federal Government has in recent\nproduced, as well as to regulate production and distribution.\nyears aided the tobacco industry by the extension of credits;\nthe application of the Agricultural Adjustment Act to\ntobacco in Puerto Rico; contributions by the PRRA to the\n1\nTobacco Institute of the University of Puerto Rico;\nZimmermann, pp. 220 and 228-230.\npurchase of unused tobacco land by the PRRA; application\nof the Soil Conservation Domestic Allotment Act to Puerto\n2 Hearings\nPursuant to S. Res. 26, pp. 514-517.\nRico; and extension of price support by the Commodity Credit\nA recent account of the history and current conditions of\nCorporation. Zimmermann, pp. 210-236; Hibben and Pico,\ntobacco production appears in Hibben and Pico, pp. 4-5,\npp. 95-96. Compensation payments to tobacco growers in\n9, 39, 68-71, 95-96, 100, 141. For statistics of\nPuerto Rico under the AAA for the fiscal years 1934 to\nunmanufactured and manufactured tobacco since 1900,\n1943 amounted to about $6.7 million; Annual Book on\nsee Annual Book on Statistics of Puerto Rico, 1948-1949,\nStatistics of Puerto Rico, 1948-1949, p. 67.\npp. 67, 72, 95, 253-256.\n3 'Manual of Government Agencies in Puerto Rico, pp. 53,\n71, 176.\nRESTRIC\nRESTRICTED"
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