The Sun.
London, England, 1860-09-07 00:00:00

THB INLAND REVENUE.

FOURTH REPORT.
The Commissioners of Inland Revenue have just pub-
lished their fourth annual Report for the year ended on the
31st March, 1860, and preface it with the following table
of the amounts collected by their department :
EXCISE DUTIES.
GROSS RECEIPT IN THE YEAR ENDED MARCH 31, 1859
AND 1860 (DETAILING THE AMOUNT RECEIVED FOR
EACH DUTY).

Years ended 31st March.

Duties.

1859.
9,188,842 ....
5,592,624 ....
416,478 ....
1,281,023 ....

1860.
10,000,191
6,852,458
462,881
1451,254
86,203

Spirits
malt
Hops
paper
Hackney carriages
stage carriages
Railways
Licenses
Game certificates (Ireland)
sugar
'Racehorses

82,129 .. • •

125,016 .. • •
339,569 ... •
1,436,892 ... •
12,228 .• • •

127,673
359,212
1,464,575
13,047

5,771 .. • •

6,233

Gross receipt £18,480,572 .... £20,823,727
The report then proceeds as follows :
SPIRITS.

The revenue derived from spirits has continued steadily
to increase during the past year, as will be seen on compar-
ing the gross receipts for each quarter with those of the cor-
responding quarters of the previous year :
Quarter. 1858-9. 1859-60. Increase-
£ £
£ 3oth June .. 2,115,156 .... 2,322,662 ..• • 20..,,1106
91
30th September.... 2,108,360 2,291,654
31st December.... 2,647,403 2,767,741 120,
31st March... 2,317,923 .... 2,618,134 • • 3°0'211

Total
9,188,842 : 107i000,19
The large amount of duty received in the last quarter is
not entirely to be ascribed to increased consumption. Great
quantities were taken out of bond under the supposition
that an addition to the duty would form one of the financial
measures of the Government. The effect of this anticipa-
tion, probably to the extent of £150,000, has, consequently,
been felt in the =coeeding quarter by a decrease of duty as
compared with the corresponding period of last year.
The regulations under which this branch of the revenue
is secured have for several years been undergoing various
modifications, in order to adapt them to improvements in
the process of distillation, and to facilitate the commercial
transactions of persons engaged in the spirit trade. During
the past year, however, remarkably few changes were re-
quired, and the only one worth mentioning was the now
scale of allowances which your Lordships sanctioned in
August last for the waste of spirits in bonded warehouses,
and which promised to afford a satisfactory solution to a
confessedly difficult question.
When it became known earlyin the present year, through
the financial statement of the Chancellor of the Exchequer,
that, according to the terms of the recent commercial treaty
with France, foreign spirits would be admitted for consump-
tion into the United Kingdom at a rate of duty equal to
that on British spirits, and a surtax equivalent to the loss
and hindrance caused to the home distiller by the Excise
restrictions, considerable alarm was felt by distillers, more
especially as the treaty fixed the amount of the surtax at 2d.
per gallon, whichthe distillers considered wholly inadequate
as a compensation for the peculiar disabilities under which
they carry on their manufacture.

The surtax named in the treaty was the same in amount
as that charged by the Act 11 and 12 Vict., cap. 60, on co-
lonial spirits. Originally, however, the differential duty on
such spirits was ls. 6d. per gallon, ls. 4d. being on account
of Excise restrictions on home-made spirits. This diffe-
rence was gradually reduced ; first by an increase of the
duty on British spirits in 1841, and afterwards by reduc-
tions in the duty en colonial spirits.
The last reduction was made in pursuance of a recom-
mendation by a committee of the House of Commons on
sugar and coffee planting in 1848 ; but it is only fair to the
distillers in this country to state that it was in opposition
to their views, and to the estimates which they submitted
to the committee.

The encouragement thus given to colonial spirits was not,
however, followed by any injury to the home distillers,
whose acquiescence, indeed, in the measure is to be attri-
buted to their knowledge, that the consequences to them
wore not to be apprehended. For it must be borne in mind,
that over and above the differential duty of 2d. per gallon
the importers of colonial spirits had to bear the expense of
a very long voyage; and that rum, the only spirit imported
from the colonies, is not of a kind suited to the general de-
mand, and does not, in fact, enter into competition with
British corn spirit, the basis for the manufacture of gin.
With regard to spirits made on the Continent, the case is
very different. Besides the spirit distilled from wine, which,
on account of its flavour, has a high value, large quantities
of spirits are made in Germany, Holland, and Belgium,
from materials similar to those used in this country. But
the rates of duty chargeable abroad are very considerably
lower than in the United Kingdom, and the fiscal restric-
tions under which the manufacture is conducted are conse-
quently of little moment. The cost, too, of transport from
the neighbouring districts of the Continent is not greater
than that between many places in the United Kingdom.
Immediately, therefore, on the treaty becoming known,
deputations of distillers from the several parts of the
United Kingdom waited upon the Chancellor of the Exche-
quer, and upon this Board, in order to explain their case,
and to obtain a proper adjustment of the duties.
We must do these gentlemen the justice to say that no-
thing could be more fair and reasonable than the mode in
which they conducted the discussions which ensued.
We were obliged to admit that the regulations of this
department alone increased the cost of manufacture of
spirits by a sum of not less than 51d. per gallon. There
was also a claim on the part of the distillers to be compen-
sated for certain advantages given to foreign spirits by the
mode in which the duty is calculated by the officers of
Customs, which was reckoned at 4d. per gallon in favour
of the importer. The full claim of the distillers, therefore,
would not have been met by a smaller differential duty
than 91d.
In obedience to the directions which we received, we im-
mediately addressed ourselves to the revision of our regu-
lations, in order so to modify them as to reduce their re-
strictive operation upon the manufacturer to the lowest
point, and we finally agreed to make the following changes
in the law--viz.:—

To abolish the prohibitions—
Against grinding malt with stones :
Against the use and sale by the distiller of yeast pro
duced at his distillery :
Against the continnoM running of common stills.

To give up the annual balance account.
To make a larger allowance for waste in warehouse, and
to give greater facilities for obtaining remission of
duty on spirits lost by accident.
To remove pertain restrictions which increased the ex-
pense of making malt for distillery purposes.
By making these concessions, we considered the Excise
restrictions on the manufacture of spirits reducible to an
amount represented in money by 2d. per gallon in the case
of plain spirits, and 3d. in that of rectified or compounded
spirits.
The distillers and-rectifiers having established these facts,
naturally considered that they had
a claim to some allow-
ance on exporting their spirits, in order that they might
compete with foreign distillers in colonial and other mar-
kets.

Allowances to the extent of 2d. per gallon on plain Spirits,
and 3d. on compounded spirits, when =Ported, were con-
seVentlY granted, by a resolution of the House of Commons
on the sth of March ; and in order to protect the revenue
from any diminution by this concession, an additional duty
of ld. per gallon was imposed on all spirits distilled in the
United Kingdom. In this report there can be no doubt
that the Chancellor of the Exchequer made a bargain highly
favourable to the revenue, while the exporters of spirits
were placed upon a very satisfactory footing.
The alterations in the existing laws which we agreed to
recommend, together with others which
have subsequently
been considered admissible, have been embodied in a
solidated Distillery Bill, which prepara-
tion, and to which reference was made in a former report.
The increased consumption during the past year has been
nearly uniform throughout the United Kingdom, although,
as might be expected, it has been more marked in England.
In Scotland and Ireland the rapid Aso in the
rate of duty
chargeable had at first the effect of diminishing the con-
eamption very considerably. In Scotland, in 1852, when
the duty was 38. Bd. per gallon, the consumption was
7,172,987 gallons ; in 1858, when the duty was Bs., it had
fallen to 5,301,056. In Ireland, in 1852, with a duty of
2s. Bd., the consumption was 8,208,256; in 1858 it had
fallen under the Bs. duty to 5,636,912. These are the lowest
points reached, and as an improvement has now commenced
there is every reason to expect that it will be maintained in
future years.
The mode of ascertaining the quantities of spirits actually
consumed in the several ports of the United Kingdom, as
described in the report for last year, although not required
for the purposes of the revenue, has appeared to afford in-
formatiori of a valuable kind, and means have, therefore,
been tam to extend it backwards to 1854, and to continue
it in future years. The accounts up to the present time will
be found in the appendix.
The experiments upon a patent mode of distilling from
rice, adyerted to in a former report, are still continued.
The alterations about to be made in the distillery laws will
remove any legal obstacles to the general adoption of this
process, should it be found to answer.
In connexion with spirits it is important to notice the
state of the country as regards illicit distillation. The re-
ports of the local officers during the past year have been
generally of a highly favourable character ; and it is evident
that in those districts in which the illegal practice is not
wholly extinct it is so efficiently repressed that it has no
appreciable influence injurious to the revenue or to the
morals of the community. The following le an abstract of
the detections made in Great Britain last year, compared
with those made in the previous year :

Enzland. Scotland.
--- —— - ---------
-.
;-, ,i g
7.., .
E 3 ..,*, 'E -.5 a = MO t) g .2 - .9, 4' m 4
MCC '2 o o -r, ...o ,T., :::.,. ..- -t; .0 o 0
1o Po `cl 7: E 8 fii
- 114 r..) P.O
..---.- -----i.----- ---__ ....______
1850 195 i 189 171 128 37 26 26 17
IARA 19R 112 103 ! 78 .). „ „

1850
1869

195 I 189
126 112

25 l7
17 5

In Ireland the duty of repressing illicit trading continues
to be satisfactorily performed by the constabulary.

Year ended Year ended
Xarch 31, 1859. March 31, 1860.

Number of proof g9.llons of
spirits mixed with naphtha 336,410 4,0 X2O
Number of licensed makers of
methylated spirits , 34 34
Number of persons authorised;
to use methylated spirits 1 710 735

We are informed that methylated spirit has lately been 1
much used by dyers, to produce some of the bright colours I
which have been in fashion for ladies' dress. It seems that
the French have long been in the habit of using alcohol in
dyeing, but in this country the high duty on spirits acted
as a complete prohibition against the application of them to
such a purpose, and enable the French to maintain an un-
doubted superiority.
Of the 12 experimental distilleries originally allowed to
be erected to distil from roots under " Leplay's patent,"
four only have worked during the season just ended, and
the proprietors of one of these have since become bankrupt.
The distillery under " Champonois's patent" has not worked

this season.
The quantity of roots distilled is 3,008 tons, which have
produced 33,135 gallons of spirits at proof, giving an ave-
rage of nearly 11 gallons per ton.
Three of these distilleries were intended to distil 20 tons
of roots per day, but they have averaged only 45, 39, and
34 per week. The other distillery erected to distil 10 tons
per day has averaged 36 tons per week only.
Duty has been paid on 4,076 gallons of spirits this season ;
12,427 gallons have been methylated, and 19,059 gallons
remain in the distillers' own duty-free warehouses.
The quality of the spirits produced is much improved, as
compared with the first spiritS obtained by this process.
Two of the gentlemen working these distilleries have
jointly taken a rectifier's licence, to enable them to convert
the spirits into British brandy and compounds, and are en-
deavouriug to establish a trade in London.
BRITISH SPIRITS EXPORTED IN THE YEARS ENDED THE
31ST OF MARCH, 1859 AND 1860.
1858-59. 1859-60.
Gallons. Gallons.
11,032 622,800
.. 499,235 429,702
.. 800,739 1,001,732

To France.. • •
To Australia ..
To other countries

Total

1,311,006 2,054,234
MALT.

NUMBER. OF BUSHELS OF MALT CHARGED WITH DUTY
IN THE YEARS ENDING THE 31ST OF MARCH, 1859
AND 1860:-

Year ending the 31st March, 1859
Ditto ditto 1860

Number of bushels,
42,794,044
44,565,038

During the last year a larger quantity has been brought
to charge than in any year since the duty was imposed,
now 163 years ago. The increase in the quantity of malt
made has been progressive since 1855, and it is the more
remarkable, as since that year the account has been dimi-
nished by about 3,000,000 bushels used by distillers, and
which is now made duty-free under special regulations for
the purpose of distillation.
This satisfactory growth of the revenue derived from malt
is, no doubt, chiefly due to the uniformly prosperous con-
dition of the country for several years past, but there are
other causes which have greatly assisted in this develop-
ment of the malt trade. The increase in the spirit duties
in Scotland and Ireland is well known to have caused a con-
siderable augmentation in the consumption of beer in those
countries, while the free importation of foreign barley and
the improved quality of that article have enabled maltsters
to meet the demands of the brewers.

The importation of wines at the reduced rates of duty,
which will come into operation early in the following year,
may possibly affect the consumption of malt liquors ; but
considering the perfection to which the manufacture of ale
has been carried in this country, and the moderate charge
at which it is generally sold, there is more reason to appre-
hend that the wine will be substituted for spirits than for
beer.

For many years maltsters have had the privilege of ob-
taining credit for the payment of their duties for a period of
18 weeks beyond the ordinary time of payment, on giving
bond with sufficient sureties. By reducing the period of
credit last year to 12 weeks a sum of nearly £857,000 was
added to the receipts of the year, and an advance was made
towards the abolition of a mode of collection which had long
been considered objectionable both in theory and practice.
To prevent as much as possible this alteration proving em-
barrassing to maltsters, discount at the rate of 4 per cent.
per annum was allowed on the anticipated payments. A
still further reduction in the period of credit forms part of
the financial scheme of the present year; but as maltsters
have had ample warning of the proposed change discount
will not be allowed. _ _

The importation of malt from foreign countries has
hitherto been prohibited ; but as grain of all sorts is now
admitted at a nominal duty, it has been suggested that malt
should also be admitted on payment of the malt and grain
duty, together with a proper equivalent for the Excise re-
strictions under which the home manufacturer carries on
his operations. The matter is now before Parliament.
We have also had under consideration the important
question of allowing the exportation of malt on drawback.
As the law stands, a maltster must make his election to
make malt for exportation only, or for home use only ; but
the exigencies of trade and the fluctuations of markets seem
to render it desirable that the maltster should be at liberty
to send his article, at any time, to the best market.
There are points of minor importance in the regulations
affecting masters, such as the time which the grain is
required to remain in couch-frame for the purpose of being
ganged, and the time at which it may be watered upon the
floor, respecting which it is proposed to make some con-
cessions in the act for shortening the malt credit which
will probably be passed during the present session.