The Republican journal., 1884-04-03
The Defeat OF the Whlskey Ring,


THE EFFECT OF THE LEGISLATION THEY
WERE WORKING FOR. THE SPEECH OF
CONGRESSMAN REED.
The whiskey ring met with very decided
defeat in it, los, of the bonded extension whis-
key bill. But the bill had not one redeeming
quality. 1t was bad all through. 1t involved
the suspension of the payment of taxes amount
ing to over sixty millions of dollars Why
should the government postpone the payment
of this large sum to please wh>key manufacture
ers: They have for years played fast and loose
with the government on this same matter. 1t
Is time they We're compelled to pay their bills
promptly as other taxed interests have to-
Prior to 1873 the bonded period for whiskev
was but one year, and it was to meet the
eXigences of an over production like he pres
ent, that Congress then extended the period to
three years. Under this new law the same over
production has again occurred and for two
years Congress has been again invoked to grant
the aid OF further extension. Two years ago
it was as emphaticaly asserted as it is at pres
ent, that unless an extension was Immediately
granted financial ruin and distress would I'M
mediately result. but Congress, in 1852, refused
the extension asked for. and the predicted ruin
has not vet resulted. On bl Sness grounds there
was no defence for tile extension asked for
while the mora questions involved were sutiici-
ent to secure its defeat.
The congressional Record brings the follow
ing report of the remark, of Mr. Reed ON the
bill to extend the time for the payment of the
taxes on distilled spirits:
The friends of this measure put their advo-
cacy OF 1t upon very singular and very diver
gent grounds. A gentleman from one part of
ONO MIR. Foran claims that we should treat
these dl>tlliers fairy because they are engaged
Ill an honorable business. His colleague from
the other end of the State OF Ohio Mr. Uurdl
tells us that we should treat these men fairly
because they come before us attacked BY Grim
maj penalties. frOm which we ought to relieve
them, upon the ground that upon the whole
they have behaved pretty well. | leave ii to
those gentlemen, colleagues to reconcile be-
tween themselves this divergence Of argument
For my part. am willing to treat this qucs-
ton without reference to either ground. / am
wiling to treat it without my prejudice, and to
look at 1t solely i'll view CT its effects upon the
business interests of the country. There has
been one argument in favor Of this bill which,
if true and sound in all lis parts, ought to in
duee the House to listen to its advocates That
is the declaration that if this tax of $40, 900 900
Key, Is eXacted during the next two years
financial disaster will fall upon the country
and we will realize all the pictures of ruin with
which gentleman have adorned their speeches.
IF that be true, and there be nothing else true
IN modification of that, then. there might be
reason for the consideration of this question
which is demanded
But if gentlemen will look forward they can
see as the result of this legislation more
enormous disaster than can possibly result
tn 8 tl,,,;,
representations be true Human nature dur
ing the next two years is going to be the same
as human nature has been during the last
three years. If you allow these disters to
store their Whlskey i'll Government warehouses
Tor two years longer, without taking it out and
putting 1t upon the market, the men who to-
day have distieries in their ownership and
possession will be obliged by the laws of
human nature to manufacture whi>key in eX-
cess of the amount of consumption in the
country.
And the result will be that at the end of the
next two years, if this bill shall pass those who
are engaged in this business will be called upon
not merely to raise enough to pay the tax on
,o,ooo,ooo gallons but enough to pay the tax on
lOO,00O,00O gallons. As | said the other day. if
IL be true that disaster will follow upon the
payment of the tax on 10000, 900 gallons, what
VIII be the result of paying the tax on 100 ,000,-
900 gallons: Is this fancy picture, or is it
justified by the acts. Is it "a y,iort reasoning.
Mark these figures; they have been repeated
dozen times in this debate but | do not think
their full significance has been exhausted: In
the year 1873, 5600O000 gallons of whiskev
were manufactured. On the lst day of March,
an extension one year was given. What was
the result! That very year the production
leaped from 56,000,000 to Il 900 900 gallons.
Then, on the 2Sth day of May, 1880 Il three
years extension was given, and the production
leaped from 1000 900 to 80, 900 900, the next
D.O( I'm tba oft
OOO.0OO gallons. These results are not and
were not unknown to the distillers of the coun-
try. There is no other business where the
statistics are so exact, where everybody for the
mere looking can find out just what is the pro-
auction OF the article all over the country at
any moment.
When 100000 of gallons were produced
IN one year, the distilIers began to see that the
tnree years extension was soon going 10 eX-
pire, and they would then be called upon to
pay the tax. What was the result: The pro-
duction was reduced in 1882 to l05 ,0OO. 900 of
gallons. and In 1888 it was reduced to 74,000- |
600 of gallons. Now, if you will let this mat
ter alone, the production will come down to
o6,OO0,OO0, the normal consumption of the
country. If you do not, but grant this extern
sion OF time, then instead of having to face the
problem of the tax on 10000, 900 of gallons, you
will have to face it on 100,OO0,000 of gallons
Inc result will be either Il repeal of the tax or
disaster will follow
1t seems to me that there is the whole bust
ness in nutshell. If we go on with the law
as it now is there will be no disaster What
are all these representations worth? Can not
gentlemen recolIect that one year ago the dis
illlers were bowling around Congress proclaim
Ing that unless bill for the extension of the
bonded period was then passed the next year
would see ruin overwhelm us all? Has it
come! Their prophecies in every instance have
proved to be erroneous.
We can see that there will be greater disaster
If we follow their advice, We followed if In
the one-year extension and in the three years
extension, and the result was very bad Shall
we continue 10 follow the advice of men whose
predictions history has proved to be without