The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1903-01-16
Alcohol in the Arts.

Tho internal revenue law lev1es a duty
of $40 per proof gallon on alcohol.
There is a. strong movement among man
1facturers using alcohol for 'manu1ac-
turing purpose to secure reduction OF
this internal revenue tax from $1.lo TO
70 cents a gallon. The reduction IS asked
for because the high tax on alconol lays
burdens upon the American .manu1actuF-
err and the American consumer without:
rendering any corresponding benefit to
the government. r.
The experts of the treasury depart
ment have decided upon thorough mves-
tigation that the government would re-
ceive more revenue If the tax were placed
lat 10 cents a gallon than it now receives
at s110, The explanation OF this Is that
3so much more alcohol would be consumed
at the reduced price that the gross pro-
Eceeds Of an internal revenue, tax at that
figure would amount to more than the
government. now receives or Is likely TO
receive at the present rate. Il
Where alcohol is SO: heavily taxed man
fura cturers IRE 1oreed stV use substitute
not nearly. as satisfactory. but so: much
cheaper that il is profitable to use them
If. however, the price of alcohol were re-
duced by the amount Of the proposed
lowering Of the tax these substitutes
could be discarded and the government
receive just as much revenue from the'
| increased consumption Of the alcohol as
+ it does now. ,'
The opponents Of this reduction are.
! as might readily be guessed, the manu-
facturers of these substitutes. The sub
stitutes, however, lead to adulteration
and fraud by which the consumer suffers
more than anybody else.
! The high tax on alcohol Is justified In
| the minds Of some people on the ground
| that it checks the consumption OF alco-
hol as a beverage. Experience, however.
| does not seem to- sustain that claim. AL
| cohol is regulated in price to the con-
sumner of it as a beverage by custom and
by other conditions than the tax, while
American manufacturers for lack Of a
cheaper alcohol are not only embarra ssed
by foreign competition in their own mar
ket, but are unable to enter. foreign mar
kets, simply because of the. heavy tax
on alcohol. For instance. certain arti-
cles, in the manufacture Of which alcohol
Is necessary ingredient, cannot be sue
cessfully exported because Of the -. in
creased cost Of production, and not. only
so, but foreigners having cheaper alco-
hol are able to Introduce into this coun-
try in successful competition with ou1
own manufacturers important lines Of
manufactured goods Of a quality SO SUI
perior to that manufactured in our owr
:, country by the use Of substitutes for al.
tainly, the government cannot afford tt
. levy internal taxes on important indus
: tries of this country which will not pro
! duce as much revenue as a lower rate O.
! taxation and at the same time make i
: impossible for manufacturers to Compel
3 successfully with those which are not thu
:; handicapped as to what might be de
: scribed as raw material.
+ The matter has a local interest from
: the fact that alcohol is a. by-product o
! the sbeet sugar business. A high grad
: of alcohol is produced from the beet suga
d waste, and %as t. industry grows in thi
:, state the manufacture Of alcohol as a by
product will become more important. TIL
1 increase in this manufacture will ais
have a tendency to increase the price d
7 the grains, sugar beet waste and othe
$! articles from which high grade, potabl
n alcohol is distilled. The legislation of tn
= manufacturer for the reduction OF thi
/. internal revenue tax is a simple bushes
IL proposition which it would seem ough
J., to have the favorable attention Of con
esl gress WITHOUT any unnecessary delay.