The advocate., 1891-04-29

internal revenue FOR the year 1880 a.
Rords no information upon this sub
iect An important chapter OF that
report seems 10 have been omitted.
Turning 10 the report OF 1887, how
ever, we find the information We have
been looking for in all its fullne8s.
That report was issued before any
Bub-treasury bill had been introduced.
No political cyclone had then swept
over any part Of the country TO dis
turb the eqUanimity of the Constitu-
tiOnal lawyers or the heads Of depart
ments, and the necessity Of suppress
ing information upon this subject did
not exist The predecessor OF the
present incumbent therefore gave
away some important facts that would
undoubtedly now be recalled il pos
sible.
We have shown that under the in
temal revenue system spirits may be
stored in distilleFy warehouses, and
watched over and cared for by gov
eminent employees for three years be-
fore the internal revenue tax needs
TO be paid, unless the demand is suf-
ficient TO induce the distiller TO with
draw his product for aprOftable mar
ket before the expiration OF the time.
But the government has still further
provided against the contingencies Of
glutted or Improbable market. If
as the end Of the three years APP
proaches there is not such a demand
as to satisfy Che distiller, he may
withdraw his liquors from the dis
tillery bonded warehouse for export
to foreign countries without the pay
ment OF the internal revenue tax.
We will let the commissioner himself
tell the balance Of the story;
The spirits referred 10 in he preceding state.
ment, and upon which customs duty has been
paid, were removed from distileTy warehouses
for export under internal revenue laws section
$3.50, revised statutes, act Of June 0, 1874, and
upon their return 10 thlB country we're entered
under section 1850, revised statutes Of Che GUS
toms laws as rc.tnpOrtCd spirits.
In addition TO this quantity there yet remain,
July 1, 1888, In foreign storage houses, some six
or seven million gallons OF domestic spirits
which will doubtless be returned 70 this country
at no distant day; and which, II admitted under
section $500, revised statutes, will, under exist
Ing laws and regulations, be entitled 10 ware.
housing privileges conferred by section 1852, re-
Wsed statutes.
In an opinion rendered by the attorney gen.
eTal under date OF July 2, 1885, II ID held In effect
that shipment Of domestic spirits 70 q foreign
port with the intention Of bringing the spirits
back 10 this country ID not an expectation within
the meaning and Intent Of tile stAtute and does
not under such circumstances, entitlc the spirits
upon their return TO be entered under section
$500, revised statutes, 40 re-lmpOrted spirits,
Guided by this opinion, regulations have from
time TO time been Issued with the Wow Of secur-
ing bona fide expectations, and preventing entry
under section 900 OF any distilled spirits that
have not been actually exported. While effect
ing their purpose az 10 Withdrawals In most In
stances these regulations have proven 70 be OF
but little practical value ln.pTeventinR wrongful
reimDOTtarOns under section $500, owing large
ly TO the difficulty In obtaining proof Of the Mtt
mate Intention Of the owners Of the spirita who
doubtless In a majority Of cases purchase the