The Brookhaven leader. [volume] (Brookhaven, Miss.) 1883-1891, 1884-04-24

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surplus stock of whisky and we viii
pay the tax cheeIfully. All that w
ask is not to be compelled to pay ia,
on a thing until we sell it. Time il
all we want"
"Why don't you whisky fellow:
give us mething new for variety
retorted the Pennsylvania. "Tvt
been hearing that same old cry fol
'TIme-tilnc' for the last five years
You came here in 1878 and asked
for time and got it. You came in
1880 with the same cry and we agai
rave you all you asked for. AND
mere You are again. When is this
thing to end ? | don't believe you
fellows ever intend to pay the tax al
all. You keep on putting Off settle
Inent day In the hope Of working NJ
sentiment for the repeal of the
entire tax and then your whisk '
distillers and spectators will be q
cool hundred million ahead Good
scheme, my dear fellow, but you'll
not get there with my vote, you may
depend on it,"
A subdued murmur Of approba-
tion from number of Northern and
Eastern Members, who had been
attracted by the discussion, greeted
the remarks OF the last speak.
The Kentuckian was not discour-
aged.
Let us discuss this question
nationally AMI dispassiOnately," said
he Your view in the case strikes
me rs eXtravagant and preposterous.
There isn't a scintllla of evidence to
support it. There is no speculation
in this matter and no intention to
evade the tax. Tie situation is
simply this: If the payment of the
tax is insisted on at maturity, the
result will be widespread financial
ruin, and possibly general finan-
cial panic, involving the interests of
the whole country. 1t is not only
the distillerS that are threatened, but
great number of banks and capi-
talists who have advanced money
upon the estimated value of the
whisky IN bond. Suppose YOU insist
upon the payment of the tax and the
withdrawal Of the whisky from the
Government warehouses. What will
happen? The whisky will be thrown
Oh an overstockcd market and rot
bring the amount of tax even. Dis
tillers will go to the wall, banks will
be compelled to close their doors,
and values Of all kinds will inevitably
depreciate. Are you, gentlemen,
prepared to assume the responsibility
of pei cipitating the country into
such financial straits"
Il might answer you very aptly,"
replied the Pennsylvania, "by say
ing what will happen if you reduce
the duties on iron and steel? Our
factories will stop work, our iron and
coal mines will be abandoned, and
ruin and starvation will be the lot of
thousands of my constituents, whose
daily bread depends upon the main
tenance of the present condition of
things. It's poor rule, you see,
that won't work both ways. But I'll
answer You in another way, and |
think l can show that the longer the
payment of this tax is put off the
less you will be able to pay it. The
history of legislation on this subject
sustains my theory. Let us turn
back and 90 over it, You will find
that if Congress had never interfcrcd
in the matter you would not now be
in the fix you are IN.
The present warehouse system
was established by the act of July
20, 1868, which provided that dis
titled spirits might remain in ware
house one year That worked very
well, and under the operation of the
law the accumulation OF whisky in
bond had only reached fourteen mil
lion gallons up to 1873.
Then came the joint resolution OF
March %, 1878, and the mis- chief be-
gan. That resolution extended the
bonded period to three years, but re
quired that five per cent. interest in
The tax should be charged for such
time as the spirits might remain in
warehouse after one year
Under this act the accumulation
Of whisky in bond for period of two
years was upward Of seventeen mil
lion gallons,
Then came the act 1SS0,known
as the Carlisle bill, which opened
wide the door of speculation by
abolishing the five per cent. interest
clause, aud reducing the amount OF
the bond to a sum equal to half the
tax.
"Of course shrewd spectators at
once saw an opportunity for c.ever
stroke of business and they pitched
in recklessly. The plan was very
simple. A man could buy, say ten
barrels at Is cents a gallon and let il
lie in the warehouse for three years
At the end of that time it would be
worth 81 a gallon, thrice its original
value, and no expense to the owner
but the cost of storage and insu
rance, about ten cents a gallon fol
three years.
"Now, that was making money
fast enough, and great many peo
pie went into the purchase OF whlsky y