National Republican. (Washington City (D.C.)) 1872-1888, 1884-02-13
FREE WHISKY.
Commissioner Evans in Favor Of Government
Aid for Overloaded Distilleries.
He Comes Out I'm Favor OF Extending the
Bonded Period ora whisky.

In his report to tho senate committee on
finance, made yesterday, Secretary Folger in
cluded the following letter from the commits
sioner of internal revenue on the bonded
whisky bill:
TREASURY DEPARTMENT, OFFICE OF IN
TERNAL REVENUE, WASHINGTON, Feb. 8,
1SS4.-HoN. CHARLES j. FoLGER, Secro-
tary of tho Treasury-Sir: have received
from you letter addressed to you by Hon.
Justin 8. Morrill,, chairman of the senate
finance committee, bearing date the ffth in
slant, transmitting senate bill No. 1869, to ex-
tend the time for the payment Of the tax on
distilled spirits now in warehouses
In this letter the honorable senator says:
"The committee are DESTROYS that you give
careful examination to the bill and submit
your views in regard to the proposed logisls-
tion in all its bearings" And you ask for
my views upon tho legislation proposed by
that measuretand other bills having similar
object. have bestowed upon tho subject
much thought and now submit q statement
Of my conclusions and Of the facts upon which
these conclusions have been reached.
By virtue of existing laws the United
States is entitled to receive 80 cents per gal
lon upon all distilled spirits manufactured in
the country with certain not very important
exceptions, and should think any measure
should be opposed which would deprive the
government of any portion of the money to
which it is entitled by reason Of this taxa
ton.
Distilled spirits in all its forms is product
upon which taxation can certainly be wisely
imposed Acting upon that view congress
has imposed taxes upon distilled spirits for
many years, and there has been collected
from that article alone, to support the gov
eminent and aid in the payment of its war
debt the enormous sum of $1,017,233, 0i255
since 1862
Whatever the moralist may think of
whisky, the fact remains that the industry
which produces it, and the objects for which
it is used, have paid to the United the i'm
mense sum above named within the last
twenty-one years. certainly period when
the government was most in need Of the
money. This result has been accomplished
by tho imposition Of tax many times
greater than the cost of production, and the
makers ofthe article have rarely complained.
Until the passage Of the act of July 90
1868 the spirits were only taken out of bond
asthey wentinto consumption, and the man
ufacturer, If sales were not promptly made,
had only expended the cost of making the
article, say an average sum of 90 cents per
gallon, but since the act above mentioned o
fixed period has been provided within which
the spirits must be taken out of bond by the
payment Of the tax whether going into con-
sumption or not.
The approximate quantity of spirits con-
sumed is not very difficult of ascertainment
and the annual increase of consumption is
quite regular and uniform, but while this is
so the manufacturers of whisky, like persons
engaged in other enterprises will, once in
while, become excited and speculation and
over production is the result. This was not
however, disastrous to them before the act
above alluded to, but since legislation has
made the tax payable at all events within
three years season of over production is
likely to become disastrous to tho too SAN
guine manufacturer. Such condition of af-
fairs is now upon the makers of distilled
spirits. Unhealthy stimulation and
speculative excitement in 1880, 1881,
and 1892 especially in the two last-named
years. led to large over production, and the
subsequent stagnation of trade, particularly
now, when the tax is becoming due thre atens
disaster to an extensive industry to which
the government looks largely for its revenues.
The production in 1879 was about normal,
reaching only II ,s92 ,621 gallons. The over
production began, to some extent, in 1880,
when $685. go gallons were produced. In
1881 it increased to 117,728, $50 gallons. In
1882 the production was los, 1853, l6l gallons,
while in 1883 only 74,013,30s gallons were
made, and in the first six months Of the
fiscal year 1884 only 1880, 2s0 gallons have
been manufactured. 1t is evident that the
government can gain nothing from q revenue
standpoint by doing anything to further
decrease the production Of distilled spirits, OF
by refusing to do that which may preserve
the industry from disaster. The financial
interests of the government would seem tc
lie rather in the giving of relief and Ger.
tainly if it can do SO without the loss of any
money.
Whether the proposed legislation is enacted
into law or not there will always be Ger
tain proportion of the quantity of spirit.
r,rndnnaI tatan nut IF hnnd hy tbn M IN,
of the tax due, namely, such quantity as may
be needed for consumption, but, as / under
stand IL, it is the large surplus or actual ovel
production of the years 1880, 1881, and 1888.
which is giving all the trouble by requiring
the outlay of so much capital which will have
to lie idle until the whisky can be disposed
of, which, in the present condition Of the
trade, seems impossible.
All va rieties of spirits are, 1t is true, entered
into bonded warehouses, but much the greater
portion of them arc taken out at once because
needed for use. There is o class of spirits,
however, which in order to become available
for use ut oil must remain in the warehouse
for q period of at least three years. The
annual consumption Of this class OF
spirits is estimated to DO now
not over 100000 of gallons, but
there were produced of this class in 1878
1855, 100 gallons, in 1880 21756, 1870 gallons
in 1881 43,564,224 gallons in 1882 IS, SOC, All
gallons, and i'll 1858 Ia, AT, 500 gallons, making
n surplus in tho product in 1850 of about
3,5O0,000 gallons, in 1881 about 25,5O0,OOC
gallons, in 1882 about 20,s00,000 gallons,
making at this date surplus of about 45 900,
900 of gallons altogether This is the incubus
upon the whole industry. The tax upon il
has to be paid to the government, and the
distillers and those behind them cannot get
relief except at the hands of the government.
In the year 1888 there were taken out OF
bond by tho voluntary payment OF tho tax
1882, $40 gallons of this class of spirits, but
we had to enforce by the regular process OF
assessment tho payment of the tax OH A.
353000, which showed that the manu-.
facturers had to raise S3,9lS320 as the
additional cost of the goods, without being
abba to find purchaser for them, OF course
that quality Of spirits is now free and would
naturally be sold before any more were taken
out of bond, If tho manufacturer or owner
had any option. At oil events, it will have
to be added to the amount which, under
existing laws, will be made free during the
present year, and the surplus for this year
will be increased by that number Of gallons
This result has been oven more marked
since the beginning Of the fiscal year 1884,
and there will BIO on the January list, to say
nothing of the preceding six months, assess
ments amounting to over Sl,0O0,0OO, which
represents tho unsold whisky on which the
manufacturer must raise money to pay tho
tax within that month. 1t will be no hard
ship, of course, to the manufacturer to pay
the tax when he can soil his product, 1t is
the payment of the tax, and then being COM
PEELED to hold his goods, making the cost OF