The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1885-01-17

from the distilery warehouse, provided that this
act shall not apply to distilled spirits remaining
in warehouse at the time of its passage, and
which are covered by warehousing bonds, unless
there shall be indorsed Gpon the wareheusing
bonds written request for extension of the time
fixed IN said bonds for withdrawal of such
distilled spirits, and a written Acknowledgement
by the principal and suretes OF their liability for
the entire period such spirits may actually be
permitted to remain in distiiery warehouse;
provided, further. that no additional allowance
for leakage shall be made beyond the limit now
allowed by law.
The Secretary strongly recommends the inn
mediate passage of the bill. believing that 1t
will help relieve the present businessdepression
He says in his letter of transmittal:
'The manufacture of whisky is one or the
largest and most important branches OF domestic
industry in the United States, and is at the
present time, like other manufacturing interests
greatly suffering from overproduction- A eglt
innate business, from which large revenues are
derived it is not only depressed by overproduc
ton. but by being hurdened by heavy taxes, the
payment of which, as is the ease with no other
article, is required within fixed period, what
over may he the condition of the market In
other words, the present whisky tax is tax on
production, and is thus IN contravention CT the
general policy of our own government, and the
policy of other enlightened nations, which derive
large revenues from articles of similar char
acter. Under existing laws. manufacturers or
holders of whisky are compelled to pay tax
article before it is withdrawn from the ware
house for consumption, to export it at great
expense, to be held in foreign countries until
there is home demand for it, or to be sold In
such countries, to the prejudice of our public
revenues. Some nations have been unwlSe
enough to resort for revenue to export duties on
their own productions. The United States
stands alone in enforcing payment of tax on one
OF its chief products before there is a demand
for it for consumption. These considerations,
in my Judgment, should be sufficient warrant
for such change IL existing laws as is con-
templated by the bill herewith presented
But / should not feel at liberty, at
the present time, TO recommend the subject
TO the consideration of Congress if the general
trade of the country were in a healthy condl-
ton. There are now in bond about 5000, 600
gallons of whisky, about 10000 900 of which
the tax, 80 cents per gallon, must be paid, under
existing laws, before the next session of Con-
gress, unless payment is avoided by expectation
On large part of this whisky the banking in
stitutions of the West hold liens which stand in
the way of its export and indications now are
that unless the laws changed the general dis
tress which prevails throughout the country will
be greatly aggravated by forced sales, which
may not even cover the taxes On the other
hand, the relief proposed by this bill would, in
my Judgment tend TO remove the de-
spondency which so generally prevails
and open d way to the gradual improvement OF
other languishing industries. The relief can be
granted without detriment to the public revenue
by merely putting WHISKY on the same IoOJlHG
rs tobacco and beer by the exactlon or duties Oil
consumption instead of production-the only
policy which is consistent with just and sound
economical principles. Whisky is manufactured
for sale, and it will always be sad as soon as
there is demand for it. There would be no
gain to the government by compulsory sales,
while the revenue would suffer by the exporta-
ton. 1t is securely held and every gallon
will contribute 80 cents to the pub
lie revenues if it is left subject
to the laws of trade. Ought anything
more to be required9 The question thus briefly
presented is a very important one in its
bearings on public revenue and on business gen
orally. In consideration of it, the temperance
cause. worthy as that cause is of hearty ap-
prevail ought not to DO involved. 1t will neither
~he aided nor retarded by the proposed change in
existingeiaws. AS long as the manufacture of
whisky is lawful it should be treated with even
handed justice. 1t cannot be otherwise treated
without detriment to the public welfare. /
recommend the passage of this bill as matter
of simple justice to manufacturers and holders
of whisky, which can hardly fail to be bene-
fetal to general trade, and consequently to the
TreaSurvn