Celestial Smokers

Not only moralists, but also business men, are becoming deeply interested in the habits of the 400 million odd inhabitants of the Celestial Republic. The buying power of this huge population is enormous--as British textile manufacturers and the Standard Oil in this country proved years ago.

Now the tobacco trade is asking: "Can the Chinaman be taught to smoke? If so, what?" Inquiry reveals the fact that in China the old fashioned water pipe is passing, and cigars are too expensive for popular consumption. On the other hand, the coolie is taking very kindly to the cigarette. In fact, declares President R. M. Ellis of the Tobacco Products Export Co., cigarette consumption is growing in China at an even faster rate than in the United States.

About 30% of cigarette sales in China are "loose sales"--that is two or three cigarettes for a small coin. Small shop-keepers are inclined to favor this "odd lot buying," as it enables them to save the tinfoil cigarette wrappings and sell them back to the cigarette manufacturers for an additional profit.

At present the bulk of cigarette manufacturing is done by three interests in the order named: British-American Tobacco Co., Nanyang Brothers, the Tobacco Products Export Co. The second named concern represents Chinese capital, the other two British and American. About 80% of the tobacco used by Chinese cigarette factories is grown in the U. S.