The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1883-12-25
The Whisky Ring.

II pOWcflul lOUUY IS present III W ash :
ington, and exceptional influences are
exerted 70 procure relief for the owners
OF bonded whisky by an extension Of
two years beyond the three years hmita,
ton fixed by law.
The glut OF whisky liable for taxes
was caused by f,grant defiance of the
laws OF supply and demand II may be
properly described as the direct result OF
vast speculation, which has failed to
realize the hopes Of The persons engaged
| in it.
These SPECTATORS, who stimulated
proiuction beyond the power of con-
sumption, now moiestly ask Congress
to give them two years interest on the
stocks in the warehouses, 10 say nothing
Of the profits to follow two years of ad-
,iitional aging to the whisky on hand.
The scheme, II successful, would put
several millions of dollars in the pockets
Of the Whisky Ring. II there is an
enormous excess Of whisky stored, who
is to blame for it but the very parties
that are now seeking legislation for their
own special benefit2 The quantity Of
spirits annually consumed is no secret.
Ii the natural laws had been followed,
there would have been no glut in the
market to excite public attention to var
rant an appeal to Congress. High pr,ces
encouraged speculation, and speculation
led to overproduclion. Warehouse re-.
ceipts for whisky, like those for corn or
for wheat, were negotiable paper. The
national and private banks sought these
receipts for discount at high rates Of I'M
terest. j.
While The winti blew savorablg- eaer4.
| thing went well. Bat when it changed
adversely, and the demand for uhiskey.
was unequal to lbe supply, the specnls-
tors whn had organized the corner In
that articls were caught in the trap they
had laid for consumers. -
The Ring could not paw the taxss as
they became due and the national banks
and the private bankers that had loaned
6fty or more millions on the warehouse
receipts, were forced to take the places
Of the delnquenss, and they are to-.iay
chiefly the whiskey owners for whom re-.
lief is sought. The distillersrarely auf
fered, because they were paid for the
whiskey sold with, the money obtained
from the banks.
The Ringsters probably lost most OF
the capital they originally invested, and
left the rest OF their venture in the form
OF receipts of bonded whiskey for the
hanks to make good on the call OF taxes,
with many additional millions for the
difference between the market value Of
the stocks when the loans were made
and the present deprecated prices; az
we'll as the remainder Of the taxes to be
paid when the whiskey should be with.
drawn from bond
A committee OF members Of Congress
from several Ststes, who have constitr
ueDts interested in this matter, has been
appointed TO wait ON the Secretary ol
the Treasury to induce him to suspend
temporarily the enforcement of the tax
es on distilled spirits. That officer has
no power to comply with any such re-
quest, which, coming from lawmakers
is an offence against their own acts The
Secretary has sworn to execute the laws
aud not to pervert, por to suspend, mol
to evade them. He would be liable to
impeachment for disobedience to an ac
of Congress.
The owners of this bonded whiskey
must be hard pressed when they resorl
to an expedient like that proposed. :
They sought and failed to get legisla
ton in the last Congress, when they hat
the Commissioner of Internal Revenue
now their counsel and adviser, support
ling them with all his official authority
| II The arannasats thai Hera then assa s1e
now revived.
The last report of the Commissioner
Of Internal Revenue shows that the pro
T duction OF spirits has largely increased
during the last fiscal year over any pre-
teeding year, with two exceptions, sine,
this system of taxation was adopted
1t exceeded that Of 1882 bv 4,785 66!
gallons, that of 1881 nv 7,634.S57 gal.
Ions, and that of 1880 by 14,629.64
gallons.
This abnormal increase has bsen 60
ing on for three wears, right in the face
of appeals to Congress for exemption
from the operation OF the revenue laws
and in presence of assertions that the
production had diminished by necessi
Ity.
"