The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-06-01
DRAWBACK ON ALCOHOL.
BUSINESS Compensate for Loss OF
Domestic.

Manufacturers Would Make Export
Domestic.
From New York Journal Of Commerce, May
%.
American manufacturers who use alcohol in
their industry have for long period made
efforts to secure an amendment to the inter-
nal revenue laws giving a rebate of the tax
on alcohol used in the manufacture OF goods
exported to foreign countries. The justice Of
this demand is, they claim, not questioned
by congress. which has acknowledged the
principle involved by granting a rebate of
the tax paid on imported alcohol. But while
extending this favor to foreign alcohol, the
government has refused to give this same
privilege to the domestic product. The result
of this policy has been to discourage our ex-
Pert trade in many lines of goods and to
encourage the of foreign alcohol in pref
erence to the grain alcohol of this country.
For this unwse and unjust discr mination
against an important American product there
is absolutely no excuse said a gentleman
who is interested in the matter. There is
no pretense that the government revenues
would suffer, since if the alcohol is not ex-
ported 1t is not used, and therefore no rev.
enue is derived from it. The emily attempt at
argument in favor of the law, as it now
the use CT alcohol in manufacturing fer ex-
port: But there is certainly more danger
of fraud in using domestic alcohol than with
the foreign product as now permitted.
'The case in favor Of changing the law so
as to allow the use CT domestic alcohol in
stated in the views Of Senator o. H. Platt,
chairman of the joint select committee CT
congress on alcohol in the manufactures and
arts. and Representative Charles A. Russell,
committee. their
report submitted TO congress Dec. H. 1897:
" In this connection we desire to express
free of tax. in the production of articles for
export is allowed while the domestic alcohol
is taxed There can be no reason given why
this discrimination in favor of foreign aco-
hol and against our own product should exist.
Ii any alcohol is to be free from taxation
when used in manufacturing it Should Ger a n
| ly be the domestice article. 1t is an TN
usual policy which encourages the use CT a
! foreign product at the expense of an equally
good better domestic product, but under
cur laws as they exist today, in this regard
| this strange anomaly is presented That it
| is possible for a manufacturer to buy domes-
| tic alcohol, export it, use it in the manufac-
ture of articles for export free of any tax
| whatever, and yet must pay tax Of 1S01
| per cent if he uses the same domestic prod
| uct without having first exported and reim-
| ported it. If there is any danger that fraud
nestle tax-free alcohol in the manufactura
| of articles for export that danger Is precisely
| the same in case imported alcohol is Used
If discrimination IS to be practiced (as be-
| tween foreign and domestic products) it would
seem wiser to discriminate in cur own favor
| Whatever else may seem judicious in the
| way CT legislation to relieve cur industries of
| tire burden Of this internal revenue tax upon
! alcohol. persons manufacturing for export
ought surely to have the same opportunity
to use it untaxed that they new have to u:e
foreign alcohol
I'm ;ddiac to the argument So ccnvincinsly
presented there Is at this tine an especial