Report of Tobacco Mill in 1880

[Briar Lee]

The 1880 census contained this report of a tobacco mill in North Carolina:
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Excerpt on prices

The following are prices per pound for the grades of tobacco made in the month of March, 1880, the internal revenue of 16 cents per pound being included:

Grade.
Common tobacco 33 cents
Medium tobacco 36
Low medium tobacco 40
Flue tobacco 54
Select fancy tobacco 75 to $1

The average labor cost per pound on all grades is 51⁄2 cents. It is estimated that 11⁄2 cent per pound will cover all additional expenses, wear and tear, taxes other than internal revenue, etc., leaving the balance for cost of material and profit.

https://www.ncpedia.org/sites/default/files/documents/nchist_tobacco-mills-wages.pdf

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[Briar Lee]

The chase for the almighty dollar never changes.

We can deduce the federal government wisely put the obligation on the tobacco mill to collect the 16 cents a pound tax.

That 16 cent tax in 1880 is roughly equivalent to $4.66 today, which is about double the current rate.

The 33 cent a pound selling price (excise tax included) would work out to $9.60 today, or roughly what the cheapest grades of smoking tobacco sell for online.

What is revealing, is that 7 cents production cost plus 16 cents excise tax is 23 cents, leaving only 10 cents a pound for the mill to buy leaf.

10 cents in 1880 is $2.91 today.

March 2021 USDA price letter

Types of Tobacco & Avg. Price/lb.
- Flue Cured $1.87
– Fire Cured $2.72
– Burley $1.89
– Maryland $1.89
– Dark Air Cured $2.42
– Pennsylvania Seedleaf $3.37

Then and now, selling the lowest grade tobacco produced about the equivalent of a dollar a pound profit for the makers, it seems.

No wonder the makers want to sell “fancy tobaccos”.