Savannah morning news. [volume] (Savannah) 1868-1887, 1885-11-23

from dlstillnC warehouses for consump-
tion upoH the payment Of the lax during
the last fiscal year. saws IL is due TO the
operation Of the internal revenue laws,
especially Of those laws arbitrarily limit
ing the time within which spirits must be
Withdrawn from distlling warehouses
without reference TO the demands OF the
trade.
REFRIGERATION OF SPIRITS.
In regard to the reimportatiOn Of eX-
ported spirit 81. be says: "Besides the
1000, 600 gallons of domestic spirits, on
which the internal revenue tax has never
been paid. which remained in store IN for
elcn Warehouses at the close Of the year
1889. there then remained in distilleTy
warehouses 10, 229, d73 gallons OF spirits,
which had SO remained for a period eX-
ceeding the three years from the date
Of entry for deposit. II appears under
the opinion Of the Attorney General Of Dec.
-, 1884. that such spirits are covered by
transportation bonds, or expectation
bonds. aud are allowed to remain in dis
tillng warehouses during a time reason
ably necessary in process Of expectation,
even after the expiration Of the three
years limit fixed by the waTehOusng bond.
CHANGING THE TIME.
This time was limited by my predeces-
tary of the Treasury to seven months. Not
being able to see the necessity for so long
a time to accomplish the transportation
OF spirits to a port OF export, have, with
the approval OF the present Secretary, re-
duced the time to 30 days, and 50 limited
The time within which such bonds may he
filed, as to collect tie tax on or before the
expiration OF the time % years. within
which spirits may remain in distlllery
warehouses. The only time now Obtainble
in excess Of years, Is that which occurs
through necessary delay in enforcing the
payment OF the tax.
SURE TO BE RETURNED.
In the light of past experience it is
deemed safe to predicate that the bulk OF
Bourbon whisky and rye whisky shipped
to Bermuda, Bremen and Hamburg, Ger
many, will be eventually returned to the
United States, but it will not be returned
by the parties who gave the transporta-
ton bond or expectation bond, upon
which the spirits are withdrawn from the
distilery warehouses, and even If it were
so returned by them, it is difficult to say
that such was their intention when they
gave the notice and bond. No doubt eX-
pOrters would be glad to find a market for
their products abrO ID, and so be relieved
Of tine expense of the return voyage.
Under these circumstances and in view
Of the fact that the law accOrds the privi-
lege Of expectation tree of tax TO holders
Of al kinds of spirits in a distillery ware
house alike, | have not felt warranted in
interfering with expectations to the ports
named, nor to discrimination against
these kinds of spirits and in favor Of al
cohol, rum, or other kinds of spirits
which, when once shipped abroad, are not
after returned. 1t is hardly to be sup
posed that a distiller would produce
spirits, if he knew beforehand they would
not be purchased by any one able and
had laiB in a bonded warehouse in
Bremen, Germany one or more years.
DISTILLERs UNABLE TO GUAGE THE
MARKET.
1t is evident tnat the distillers are I'M
able to determine beforehand the quantity
Of spirits they will be able 30 DISPOSE of
within three years. Under this view of
the matter it would be better for the dis
til.er. il there is to be any Limitation of
the bonded period and II would certainly
simplify the administration Of the inter-
nal revenue laws, to restore the time given
in the warehousing bond from three years
70 one year, as provided in the act of July
20, 1868 ! am Of the opinion, however,
that the better plan would be to allow the
spirits to remain in distillery warehouses
an indefinite time. subject to peremptorv
Withdrawals in case of excessive losses
provided the United States is reimbursed
for the additional expense incident to
such storage.
THE MEASURE OF TUE TAX.
AS in the case Of all other articles SUBJ
ject to internal revenue tax, the quantity
actually consumed is the measure of the
quantity upon which the tax ia paid.
Any law, therefore, which fixes the date
Of the payment of the tax at any time
other than the date of the actual demand
for consumption, is the disturbing element
in the business of the producer, more or
less severe as the business of the distiller
varies more or less from the artificial
standard set M by the law