The Sun.
London, England, 1835-11-13 00:00:00

MALT DUTY.

The following are extracts from the fifteenth Report
d the Commissioners of Excise Inquiry, the subject
Jeing " Malt Duty," &c. The extract is from the
conclusion" of the Report :
If, for the purpose of suppressing illicit malting, it
should be determined to reduce the duty, it will be
most important that the rate of reduction should be
settled, not at random, but with reference to some
principle, for the correctness of which well-established
t,..,experience can be produced.
We shall, therefore, briefly point out what appears
i:to us to be the right principle on which the rate of the
tff malt duty, as well as of every other Excise duty,
t. should be fixed. The opportunities we have had of
tracing the effects of both high and low duties on the
effectiveness of the Excise regulations in preventing
fraud, confirm us in the opinion we have expressed in
former Reports, that no Excise duty should be carried
beyond the point at which the licensed trader, who
pays it, can successfully compete with the unlicensed
one, who does not pay it.
Although it may. at first sight, appear to be impos-
sible that the licensed traders could on this rule pay
a rate of duty that would yield a large amount of re-
venue, experience proves the contrary. The reason of
this is, that the fraudulent trader does not benefit by
the whole amount of duty evaded, but sustains great
loss from the manlier in which he is obliged to carry
on his trade ; for he is not able to extract from the
materials he uses so much of the valuable matter they
contain, in consequence of the hurried and imperfect
manner he is forced to conduct the various processes
of his business, as the legal trader can extract. He is
also obliged to protect himself from being informed
against by the persons he employs, by paying them
very highly, and to incur various other large expenses
in order to escape the penalties to which he is always
exposed.
If the duty were reduced by one-half there seems to
be reason to expect,provided that a suicient supply of
barley could be obtained, that the reduction would not
be followed, ultimately, by any loss of revenue. The
diminished price of malt, which would be the neces-
sary consequence of reducing the duty, would lead to
the practice of home-brewing being revived, to more
beer being drunk, to more malt being used in all the
cheaper sorts of beer, and to the discontinuing of the
practice of using large quantities of raw corn in the
Scotch and Irish breweries. With respect to grain
spirits, as the quality of them in Scotland and Ireland
depends on the quantity of malt which is used in
making them, there can be no doubt that a large re-
duction in the price of malt would lead to restoring
the old practice of using malt to a large amount instead
of raw corn. According to a return, about 490,000
quarters only of malt are now annually used in the
United Kingdom in distillation. The reducing of the
duty would also remove the principle obstacle in the
way of allowing a drawback of the whole duty paid
on the malt used in beer exported to our colonies and
foreign countries ; and in this way be the means of
considerably increasing the consumption of malt.
There is one point connected with the reduction of
the duty which is particularly deserving of notice, and
that is, rendering it practicable, with perfect security
to the revenue, to relax the restrictions under which
the business of making malt is carried on. Whilst
the duty is very high, and the temptation, in conse-
quence, very great to evade it, it is necessary to impose
severe restrictions to counteract this temptation ; and,
therefore, one of the best effects of a reduction of duty
will be the opportunity which would be afforded of
diminishing the interference of legislation with the
operations of making malt, and thus of permitting the
malster to carry on his trade in a way to secure, by his
skill, the greatest amount of profit on his capital
which it is possible for him to make.
On the effect of a reduction of the duty on the re-
venue derived from it, we have extracted the following
evidence from the examinations of Mr. Gibson, Mr.
Taylor, and Mr. Sullivan :
Mr. Gibson.—Have you formed any opinion as to the
effect of the present amount of the malt duty ?—I consider
that if the Government could remit a portion of the malt
duty, to reduce it to one-half, a very considerable increase
of consumption would take place, and make up, in a consi-
derable degree, for the remission, though not to the full
extent ; but if the Government be not in such a situation
'to allow of the remission of a portion of the malt duty, I
think it is worth while to consider whether a transmission

of a portion of that to beer would not be advantageous, in-
asmuch as it would benefit the agriculturist, by increasing
his consumption at a lower duty, and it would prevent the
opportunities there are now of using malt in the secluded
beer-shops, which pay no duty whatever ; and at the same
. . •
. time it would operate as a check against the introduction of
ud
• deleterious ingredients into certain breweries.
oh
r/ Supposing half was taken off, what would you say would
.-be an equivalent duty on beer ?—I believe that if one-half
`the malt duty was remitted, and a duty of 3s. per barrel
put upon beer, the Government would be no losers what-
:,;ever, but rather benefited ; and it would be a protection
against fraud in a variety of ways, by which I believe the
revenue is materially suffering at the present time.
If the duty were reduced in the way you propose, would

it admit of a great many restrictions being removed ?—lt
would.
Mr. Taylor.—lt would increase the quantity made by
those that pay the duty, and diminish the quantity made by
those that do not pay the duty. My opinion is, that if the
duty were remitted one-half, the increased consumption of
malt would be very large, and consequently the increase of
malt made by those who pay the duty would be very large,
and that would lessen the temptation to the man that does
not pay the duty.
Would vou look forward to such an increased consump-
tion, if the duty was reduced one-half, as would produce the
same amount of revenue ?—No : but there is another point
which I think might very likely he the case :—if the duty
was lessened upon malt I think the distilleries would use
more than they do now ; because I remember the time
when the trade with the distilleries was very large ; but
now I do not suppose the London distilleries all together
use 5,000 quarters of malt in the year.
Mr. Sullivan.—What is your opinion as to the probable
quantity of malt that is smuggled in Ireland, as compared
with that which pays duty ?—I am quite sure it is more
than a fourth. I'm sure it is two-fifths fully ; and if the
duty was reduced to half, I am certain that you would
realise the present amount, because the extra consumption
would make up for the difference.
Notwithstanding the strong case which seems to
have been made out, by the extracts of the evidence
which we have quoted, in favour of a reduction of the
malt duty, it would be improper to bring this discus-
sion to a close, without again adverting to a subject
mentioned in the beginning of this Report, namely,
the effect of the corn laws in obstructing a free supply
of barley to meet the increased demand for it, which
would arise from reducing the duty. We have already
7:4said that the only grounds on which a reduction can
be justified, while the present amount of revenue is
necessary, is a strong probability that a reduced duty
would, by means of an increased consumption, yield
as (Treat a revenue as that which is obtained from the
present duty ; but if the importation of foreign barley
be not permitted, the tendency of a reduced duty to
increase the consumption of malt would be counter-
, acted by the price of British barley becoming higher
.sp in consequence of the new demand for it, which would
arise from the duty having been lowered ; and thus
-A, the consequence of a reduction of duty would be, not
such an increased consumption of malt as would keep
"' the revenue up to its present amount, but a higher
price of barley, and a certain loss of revenue.
11l As therefore, there is no probabity of a reduced
duty being followed by such an increased consump-
2„tion of malt as would prevent a loss of revenue, so long
as the importation of foreign barley is restricted, we
are of opinion that it will be preferable to endeavour to
check illicit malting by the enforcement of the Excise
laws, however inadequate they may be to produce a
complete remedy, rather than to try the experiment of
stopping it by a reduction of duty. If there were no
factitious cause for elevating the price of barley, aris-
ing from the direct effect of a duty on foreign barley,
or from the indirect effect of duties on other kinds of
foreign corn, we should not feel any hesitation in say-
Y' in, that the proper way of dealing with the malt duty
would be to reduce it one half ; but nothing in our
.1, opinion, can be more unwise than to reduce duties on
articles which are fit subjects of taxation, without, at
the same time, taking care to secure the most abun-
.:dant supply that is possible to be secured of the mate-
ntrials which are necessary for their production.
a'. Although, as we have before said, we have no ex-
.spectation that intimidation and punishment will lead
'alto a complete remedy of the evil of evasion of duty,

as now practised in the United Kingdom, we are,
however, of opinion, that this evil may be diminished,
even while the present duty continues, by adopting
some measures for counteracting it, to which the Com-
missioners, as yet, seem not to have turned their at-

tention.
In England it would appear that more frequent in-
spections, by superior surveying officers, at irregular
periods, of the malt-houses in the out-walks would be
useful 1 whilst in Ireland, the calling in of the aid of
the regular constabulary force, to prevent the violation
of the revenue laws, as well as that of the other laws
of the land, would, beyond all doubt, contribute to
keep down the practice now almost openly carried on
in the interior of the country of private malting in un-
entered houses.
We also look forward to the discontinuance of the
system of giving credit in paying the malt duties, as a
measure which, if adopted, would be followed by very
good effects.
With respect to the complaints which have been
made to us by several maltsters of the malt regulations,
we are sensible that the recommendations of changes
which we have made:to your Lordships may fall short
of what is expected from us ; but we have felt it would
not have been consistent with our duty to treat with
indifference the able defence which the Commissioners
have made, in justification of the greater part of their
regulations, in their letter to us already referred to.
If, however, the reconsideration and revision of all the
provisions of the malt laws, which we have suggested,
be carefully and fairly carried into execution, we trust
that the result will be, that every person engaged in
the trade will feel satisfied that he is not exposed to a
greater degree of interference and inconvenience in
carrying on his business than is really unavoidable, in
order to secure the revenue, and at the same time give
protection to the fair trader.
(Signed) HENRY PARNELL.
HENRY BERENS.
HENRY L. WICKHAM.
Office of Eicise Inquiry, No. 5, Whitehall-place,
August 27, 1835.

MEETING OF MIDDLESEX MA-

GISTRATES.

THE COUNTY COURT.

It was expected a discussion would have arisen yesterday
respecting the dispute between Mr. Rotch, the Chairman,
and Alderman Winchester, but not a word was said on the
subject. Mr. Rotch was not in attendance.
Sir PETER LAURIE moved that Dr. Robinson take the
Chair, which was agreed to, and some routine business of
no public importance was gone through as follows :
The Weights and Measures Committee recommended
four inspectors at 1501. per annum, they paying the ex-
penses of fitting up their stations.
Agreed to by a majority of 25 to 7.
STATE OF THE PRISONS.

The prisons were reported to be all well. In the House
of Correction there were 870 prisoners, and in the New
Prison 190.

Mr. MILLS proposed a resolution, which was carried,
" That a conference be held with the City Magistrates as
to the Gaol of Newgate, and the respective rights of the
City and County thereto."
The usual routine business having been disposed of, the
Court adjourned at five o'clock.

KING'S BENCH.-THURSDAY.

THE KING V. ANN CABELL AND JOHN RINGWOOD.

This was an indictment against the two defendants for
wilful and corrupt perjury committed by them at a trial
which took place at the Norfolk Spring Assizes, in 1834,
when certain persons, named Dunn, Green, and Tibbutt,
were indicted for an assault upon a revenue-officer, named
Medland, who was badly wounded in the struggle that en-
sued. The defendants were tried at the last Norwich As-
sizes, before Mr. Baron Parke, when a verdict of Guilty
was pronounced against them.
Mr. GUNNING was now heard in mitigation of judgment.
The ATTORNEY-GENERAL addressed the Court in ag-
gravation of punishment.
Mr. Justice PATTESON sentenced the female defendant
to one year's imprisonment in the House of Correction at
Norwich ; and the male defendant to be imprisoned for
one month in Newgate, and then to be transported for the
term of seven years.

BAIL COURT.-THURSDAY.

MR. CARMICHAEL SMITH AND THE LORDS OP TILE

TREASURY.

Mr. J. JERVIS moved for a rule to show cause why a
mandamus should not be directed to the Lords Commis-
sioners of his Majesty's Treasury to compel them to pay to
Mr. Carmichael Smith, late one of the Paymasters of Ex-
chequer Bills, certain arrears of pension granted to him on
his resignation of his office by votes of the Parliament of
Great Britain. The Learned Counsel in support of the
rule read the affidavit of Mr. Smith, which was of extreme
length, detailing a variety of communications upon the sub-
ject which had passed between the officers of the Treasury
and himself.

Mr. Justice LITTLEDALE said Mr. Jervis might take a
rule, but the case was quite a novel one.
Mr. JERVIS then sug?ested that the rule should be drawn
up in this form :—That the Commissioners of the Trea-
sury do forthwith issue a Treasury minute to the Pay-
master of the Civil Contingencies or other proper officers
to pay the annuity due, &c." This mode of drawing up
the rule would obviate all technical objections