The midland journal. (Rising Sun, Md.) 1885-1947, 1891-07-31
Friday. July 81, 1901.
Farm Products 10. Whiskey

1n0 ulnerence IN practlce OetWeen tne
whiskey warehousiDg system, that has been
in force for nearly 80 years, and the ware
housing system of farm produce proposed
By the Farmers' Alliance is In the issue Of
money. Under the whiskey warehousing
system The banks loan to the owners Of
whiskey the money they need in business on
the warrants issued from the Treasury de.
partment, at their usual rates Of interest.
Had The Alliance proposed the same way Of
getting money on the farmers produce there
would not have been whisper Of opposi-
ton, but the bill would have gone through
Congress under whip and spur, under orders
from Wall street.
The farmers in presenting their ware.
housing plan ask that the Secretary of the
Treasury issue the money direct to owners
Of the produce, and they will pay into the
u. 8. Treasury one per cent interest and all
expense incurred, for the use of the money
one year. The warehousers of whiskey
borrow from the banks on their warrants
and pay the hanks their usual rates Of
interest; and the whiskey warehouse men
don't bear any part Of the warehousing ex.
pense. The government officers who keep
the keys Of the warehouses and gauge and
inspect the whiskey, and the internal rev
enue police who patrol and watch the coun-
try from the Lakes to Rio Grand river and
- ssaf
from the Atlantic 10 the Pacific coasts are
paid By the government out of the general
fund. The principle involved is very sim
liar but the details Of the two methods differ
materially, and in this difference Of details
lies all the opposition to the farmers' bill,
and the loye Of the banks and money loan
ing class for the whiskey mems law. Let
rs examine further the great partially Of
the government toward the whiskey pro-
dscer and contrast it with the banking
class denunciation of the farmers sub
treasury plan.
The liquor owner deposits barrel con-
tanning so gals. Of new whiskey, testing SO
per cent alcohol. The barrel of whiskey
costs, say $3.50. The government officer
assesses tax on the liquor of 90 cents per
gallon containing so per cent Of alcohol,
which amounts to $45, added to the cost Of
the whiskey the bill Soots up about $3.50.
Tie owner Of the whiskey pays nothing in
the way Of tax for three years after, or when
he takes the whiskey out of the bonded
warehouse. So he has in reality but $3.50
worth Of whiskey exclusive OF the barrel, on
deposit with the government. but the
Treasurer issues him warrant for $5l so.
Tor the warrant is worth that as colla.eral).
which warrant he takes 10 his bank or anv
money loaner and deposits as collateral for
the loan be desires to make. Let us lock
closely into this transaction. The distiller
has $6.5 worth OF goods in the warehouse
and the government has given collateral 10
borrow on of $5l5 and he can borrow
money on that collateral for three years /
All ofthis except Sc so il government credit
loaned 10 the dlstiller. on which he ia bor-
rowing money for three wears. and If he
pays 4 Der cent. which renewals for sbor.
loans will about amount to a. n 6 ner cent
rate. at tie end Of three wears he will have
paid interest to the banks amounting to
slO.Sl. The banks make a GOOD proit out
Of tie transaction. Now let ma ace If the
uarehouser Of the whiskey has lost ANYTHING
All the end Of three wears he pava The row
srnneut officer 80 cents a gallon on the
lioaor contained in the barrel II n has
svaporated or otherwise wasted The waste ia
deducted and tax paid ON The actual ouan,;,v
remaining in the barrel. We will supnose
however, that there has been NO waste. The
owner OF the whiskey has maid SI0sl in
teres. to the bank and s45 tax 10 th. GOV.
ernmsnt. making total cost to him s55 ~
That barrel of vhiskey when Withdrawn
from the warehouse is worth 50 90 gallon
70 the owner If Il is worth one cent. VIVA,
has cost him in actual outlay $55. 81 il worth
SlOO 81 the very lowest estimate. All Of the
real capital the owner of the liquor had in.
vested In The entire transaction COVERING
three yeari was $3.50. while he was doing
business Of, 4 capital Of S5I so. All eoyern-
mepl credit except $3.50 and ON which
profit has been made. for the hank Of $40 81
and for The dis,iller Of S44l9.
This Kind Of busiuess has been poipy nm
for nearly so wears. and there has lsver