New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-04-26
TIE HLSTLLLERN' ELL.

A matter of importance to the business
interests of the country as well as to the
Government is brought before the Senate
Finance Committee in a strong letter 10y Secre-
tary Foger. In Our Washington dispatches on
Monday public attention was called to the eX-
traordmary measure against which Mr.. F0lger
earncs tly protests. Ii is bill dong away with
all restriction as to the time that spirits may be
kent in bonded warehouses without payment
of tax, and greatly reducing if not entirely de-
stroving the security now sought by bonds
given for It's ultimate payment. Years ago
Vhiskcv distllers were allowed to leave their
product in warehouses one year without paying
the tax This gave some protection against
ovcr-production, because the quantity III store
and the state Of the market could be known,
and the distiller was not likely to produce very
much more than he expected TO be able to find
n market for within year. nasmuch as he
would then be obliged to lie out OF the cost OF
the whiskey and three or four times as much
more in the amount of tax then to he paid
For ultimate payment security was given not
only III the product held by the Government Ill
bonded warehouse, but by bond running for
one year. This security was found adequate
The production did not so exceed the demand
that collection of the tax could not be at any
time effected by sale of the whiskey, on failure
OF the diStiller to pay.
The wEiskey manufacturers wanted greater
privileges, and obtained them. The law was
changed so that the Government should be
obliged, if they chose, to store and carry their
whiskey for them three years without payment
of the tax. But the bond was made renewable
yearly. 1t was claimed that this would prevent
all over production, be equally safe for the
Government, and encourage an important man
ufacture But the fact is that the surplus of
whiskey in bond has suddenly mounted from
100000 gallons, June 80, 1873, to
$4,000, 600 gallons, in less than four years.
The market is so glutted that if many large
distillers should unite in refusing to pay, the
whiskey could not be sold for the amount Of the
tax or anywhere near it. There is enormous
over-production, and Government bears all the
risk, having already owing TO it over
SG7 900, 900 in revenue which will be payable
within three years.
Now the distllers true to the drunkard's
maxim of taking Il hair Of the dog" propose
to go great deal further in the very policy
which has worked so badly. The bill passed by
the House provides that whiskey shall be car
ricd without limit to time or quantity at
Government cost and risk, that no time shall
be fixed for pay ment Of the tax now coming due
or for the vastly larger amount that will soon
be owed and that the bonds given shall be
utterly inadequate for the protection of
Government. Under bonds of only 500 600,
it provides that 10000 barrels may be stored,
on which the tax is $1,0SO,OOO, but under
bonds of 100000 any quantity whatever can
be stored With no greater security,
$40, 100000 might be owing to the Govern
ment without limit as to time. True Govern
ment would hold the whislley, but ii would be
utterly impossible to sell great quantity upon
market so gutted, even for half the tax due.
Either the United States must become whole
sale liquor dealer, or it must loss many times
the amount of the bond, which the distillers
would recover by buying in their whiskey for IA
song.
This bill is really nothing but an attempt to