The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1868-07-31
PHILADELPHIA, July Is, 1868

we LAbe pleasure IN referring our customers
and the trade generally to our Circular Of
April 6. Since early in May, the trade have
passed through most trying period. When
ever the question of taxation of Spirits has
been introduced into Congress, the minds
of all interested in the article have
more or less been unsettled. At all times
there has existed a vague idea that Congress
might, perhaps, pass some measure prejudi-
cial to the interests of the trade. Among the
most unfounded and unreasonable of the
doubts and fears prevailing, was the appre-
hension that, should Congress reduce the tax,
those having whisky on hand, in bond, would
be compelled to pay the rate at which they
were bonded, viz, 81 per gallon. This notion,
by the completion of Congressional legislation,
has now, of course, been entirely dispelled
The apprehension, however, that Congress
might compel payment on tax on that now
held in bond within short period, had better
foundation. The Committee of Ways and
Means recommendation of one hundred days
as a limit for the withdrawal of such spirits in
bond, caused strenuous exertions to be made
by the trade to have the time extended. The
result was an agreement by both Houses to
make the time nine months. Hence, this
greatest of all sources of anxiety has happily
been removed.
While therefore, under the circumstances,
there were many reasons for depression, yet it
is worthy of remark, that such is the sound
ness of the trade that the market for Rye
Whiskies, in bond, showed no symptoms of a
decline. While buyers naturally held aloof
from increasing their engagements, they
awaited the action of Congress, not so much
with a view of escaping loss as they did from
the apprehension that their operations would
not result in the usual extraordinary profits
they have all along been so accustomed to
realize. The agitation of the question at issue
also coming, fortunately, at a time when stock
OF good quality is receiving daily improve
ment in the value from the summers heat,
and, consequently, when investors ara indiffe-
rent as to sales, rendered, of course holders
more confident as to the future than they
otherwise might have been Coupled with
these reasons was the all-important fact that
the reduction of tax necessarily would largely
increase the consumption of Fine Whiskies.
The general opinion of the trade conversant
with the subject, freely and confidently ex-
pressed, was that should red uction in the
tax be made to about fifty cents per gallon,
with no oppressive measures appertainlng to
such reduction, that such would be the de-
mand for Whiskies of good character IN
BOND that they must heavily advance in
price.
Now that the bill passed by Congress has
become law, we hear, already, nothing but
the most cheerful representations as to the
future of the trade. Under the new law, the
combined license, special and direct taxes on
the Distiller will amount to about 65c. per
gallon. Holders of Whisky no,o in bond have
to pay 60c. when withdrawn from bonded oOare-
| house. Under the present favorable aspect,
therefore, we have to add our voice to the rest
of the trade, that the prosperity heretofore
attending operations in bonded Whiskies cannot
fail to continue.
1t, of course, is extremely difficult, at this
early stage, to predict, with any degree of GER
tainty, to what extent the market for Fine
Rye Whlskies in bond will advance. Much
depends upon how much the consumers of
inferior Whiskies, lately so much used, will
turn to those of better qualities, now that the
better qualities will be SO much cheaper than
heretofore. We have been of the opinion for
some time that reduction of tax to SOC. or
Coo. per gallon would, in all likelihood, add
at least third to the consumption of the finer
grades of Whiskies. If we are correct, or
even nearly correct, in this belief, it must be
evident to all that such an enormous extra de-
mand for Fine Whiskies must result in an
other extraordinary advance in the prices of
Whiskies an bond, particularly in those of two
and three summers, of fine quality.
While, therefore, We may confidently expect
to see an immediate advance of from 25o. to
75c. per gallon, according to quality and age,
the natural improvement, by the time the
present stock in bond has passed through the
summer, will be equal to an advance of as
much more. The trade cannot forget the
scramble they had during the winter and
spring to provide themselves with stock in
advance of the summers heat, and now that
the summer is here, holders with favorable
future in store for them, will be tenacious to
the last in holding their stock to receive che
whole summers heat.
1t will be perceived by reference to our an
neXed Price List, that we have materially re-
duced the price Of our grades. 1t would have
given us much pleasure to have been able to
make a reduction commensurate with the re-