The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-04-16
THE OPIUM TAX.

The opium question is again coming to the
front. Revenue Collector Quinn of the First
California District has just informed the
Internal Revenue Bureau at Washington
that since the internal revenue tax on the
manufacture of prepared opium has been
SO pound. that is to say, during n period
OF fourteen months, the amount collected
has only been $50. and even this small sum
has only been obtained by seizure and sale.
Yet 1t Is matter of public notoriety-to
which any druggist will testify-tbat the
consumption Of opium, not only among the
Chinese but among the whites, has not
diminished in the least, but is on the in
crease. The law in a word is a failure
Manufactured opium prepared in this State
is worth in the market about 50 pound. The
raw material and manufacture cost about S.
pound; thus the manufacturer would lose
SO pound If he paid the revenue tax. He
does not do so. He evades it and defeats
the vigilance Of the internal revenue agents;
and by SO doing he realizes about 81 pound
on his product.
Before the present internal revenue tax
on manufactured opium was imposed manu-
factnrers in this State competed TO advantage
with manufacturers in China and British
Columbia. The duty on crude opium was
81 pound, and on manufactured opium $40
pound. Those are the duties imposed by
the existing tariff. But duty of $40 a
pound made smuggling profitable. Every
body who had an opportunity engaged in
it-lmporters, druggists, steamship officers
and CuStom-hOuse officers. Seizures were
of constant occurrence, but as a rule tie
smugglers got the better of the customs
officials. The quantity entered regularly at
lan pf ha saa 4
average 10000 pounds year, and the Gus
toms duty collected was less than 100000,
while The consumption was probably nearer
100000 than 10000 pounds In the attempt
to raise a revenue out Of the perncious
habit of opium-smOking Congress cut down
that revenue, and stimulated smuggling,
with its usual coneomitants of perjury and
official corruption. a moderate duty would
have been paid, and the value of the article
is so great that importers would not have
risked forfeitures 10 save a small tax; but
risks were taken to save $40 a pound.
The English and the Turks seem to be
the only people who have been smart
enough to make popular vice a source of in
come. In China, where the consumption
OF opium Is enormous, and vast quantities
OF crude opium are raised and manufac-
tured into the prepared article, the Gov
eminent has never succeeded in raising
much revenue from il, though in 1889 Sir
Robert Hart, Director of Malitime Gus
toms, devised a plan which was expected
to accomplish that purpose. Turkey gets
about 81 100000 a year out of the opium
grown and manufactured in Asia Minor.
1t is regarded as the best opium made,
being higher in morphia than other kinds,
and is chiefly used in medicine. But the
Government Of British India raises a clear
income of S25000O OC0 cut of opium. The
Indian product is partly consumed at home.
but the greater part Of il is shipped to
Hong-kopg and thence introduced into
China in contraYeniiOn of law, under a
special provision of the Anglo Chinese
treaty.
Ii does not need argument TO show that
an internal revenue tax which produces no
income, and customs duty which is eyaded
in nine ont OF ten cases, are not very COM
mendable imp0sts. No article is more
properly subject for taxation than opium:
but it seems that the taxation ought to be
so adjusted that it will be paid and not
evaded, or will reduce the quantity con-
sumed. There is nothing gained by ievying
taxes which produce no money, and merely
lead TO smuggling and perjury.