By the end of the century Brazilian tobacco production had grown to some forty thousand tons, largely the result of ready markets in Germany, which practically absorbed the whole of this export until the outbreak of the European War, and the adoption of North American seeds and methods of cultivation. The output suffers fluctuations due to climatic conditions, as will be seen from inspection of the following figures; it will be noticed that prices have on the whole a tendency to rise: _Year_ _Tons_ _Total Value in Gold _Price per Kilo in Paper Milreis_ Milreis_ 1905 20,390 7,335 contos 636 reis 1910 34,149 14,453 „ 714 „ 1915 27,096 10,328 „ 835 „ 1920 30,561 1200 „ In calculating prices it is well to bear in mind that the gold milreis is always worth twenty-seven English pence, while, although fixed between 1906 and 1914 at sixteen pence, the value of the paper milreis fluctuates. During 1915 it was worth an average of a fraction over twelve pence, so that the price of tobacco—eight hundred and thirty-five reis a kilo—may be considered as about eighteen cents a kilo, or a little over seven American cents per pound. While, as we have seen, thirty thousand tons of tobacco is exported each year from Brazil, enough remains in the country to supply ninety-six per cent of the internal consumption; cigars, tobacco and cigarettes are consumed in the country to the value of 40,622 contos, importations being worth only 1,500 contos of this amount. Every state in Brazil has its large or small tobacco factories, but the great manufacturing region is that of São Felix, just across the bay from São Salvador (Bahia) city. Accessible to the factories established here are the finest tobacco regions: the product is excellent in flavour and well prepared for a discriminating market. Organizers of the manufacturing industry, as well as shippers to Europe, are largely German; German also is the big cigar factory of the South, that of Poock in Rio Grande do Sul, whose product goes all over Brazil. Since the beginning of the European War the absence of German and Austrian shipping movement has paralyzed tobacco sales, and as this item forms about thirty per cent of Bahia’s exports it was necessary to seek unimpeded sales channels. Negotiations were opened with the _Regie Française_, the great French tobacco-buying organization, and the packing, quality, fermentation and other conditions studied with reference to sales. CEREALS