The advocate., 1890-07-30
TREASURY DEPARTMENT,
OFFICE or THE SECRErAR'

MhNHlNMI0Nt ~ Ntt july ~, IhiN,
The National Economist Publishing Co., 5ii Ninth
street, n. w., Washington, ID. &.
GENTLEMEN Il have tO acknowledge the re-
ference, OF your letter Of the 10th inS addressed
tO the Honorable Commissioners Of Internal Rev
enue, and in reply 10 the Inquiry therein con
talned, relative ~ the authority under which the
basement Of the United States custom house and
pOstOfce building no Kansas CITY, Mo-, lS used
for warehouse purposes, particularly for the
storage Of whisky, | have ~ refer you % ACt Of
Congress approved April 20, 1873. chapter 81,
page 3d. volume 20, II, ~ statutes no large, and %
section 2002, revised statutes, Respectfully
GEORGES. BACHELLER,
Assistant Secretary
The act Of Congress referred to pro-
ylded for the purchase Of suitable
grounds on which to erect a building TO
be used as a posto6lce, custom house,
bonded warehouse, and office OF internal
revenue collector. Section 2962 Of the
revised statutes referred to is as follows:
Any merchandise subject 10 duty, except per.
lShabe articles, also gunpOwdCr and other eX-
plOslye substances except ilrecrackers, which
shall have been duly entered and bonded for
WnrehOusing I'm conformity with existing laws
may DO deposited, at the option NJ the owner, Inn
porter, cOnsgnee or agent NO his expense and
risk, I'm any public warehouse owned or loaned
by the United States, or In the private warehouse
OF tho Importer the same being used exclusively
for the storage Of WarehOused merchandise Of
his own importation or tO his consignment or In
q private warehouse used by the owner, OCCll-
pant or lessee, as n general warehouse for the
storage OF WarchOusCd merchandise, such place
Of storage tO be designated on the warehouse en-
Try nc the time Of entering such merchandise at
Che custom house.
The above citations constitute the au-
thority by which the government at this
present time purchases lands, builds
warehouses and receives whisky on de-
posit for storage. Now, IL il is lawful to
make such provisions for the care Of corn
after 1t has been made into whisky, why
cannot the same legal rights apply to
corn before II has been 80 transformed?
In other words, what particular legal
rights has whisky over the products from
which it is made? 10 MAY be claimed
that there is a tax 20 be collected on
the whisky; so there would be on the
corn, or wheat or cotton, after IL was
taken on deposit Some will say there is
no money loaned on the whisky, while
there would be on the corn, wheat or cot
ton. That is not true. There is money
loaned on the whisky for a period Of
three years, II desired, in the shape Of
wages paid for storekeopers, gaugers, etc.
At the present time the government has
a loan against whisky in store to the
amount Of more than $S,OOO,OOO, and a
storage capacity for OS,5l9,O7O gallons Of
distilled spirits on hand in warehouses.
II money can be loaned to whisky distil-
lers in a blind, deceptive manner, why
can il not be loaned 10 farmers in a legit-
innate, business-like method?
The EcOnomist should have stated, that In nd
dtiOn 10 the government loan In the shape OF
wages paid for stOrekeepCrs, etc, there IL also
loan advanced on the certificates Of deposits,
which are given tO the distlller when he puts his
liquor In bond. These certificates OF deposit are
perfectly good collateral nc any bank I'm the cOun-
try, The Kansas CITY dstiler who places his
liquor In building erected by government
paid Oilclals nll the years while II Is increasing
enormously In value, can take his certificate OF
deposit across the street TO national bank and
get loan, for which not one cent Of interest iS
paid 70 the government aud no pFetense OF 20.
turn Is made for al the three years OF the bonded
period. And to-day there Is S7O,OO0,OOO loaned on
this class Of security -[EDToR.l