Los Angeles herald., 1908-07-01

tion or verification and make the re-
turn journey halfway across the Pa
cific before the nations books are
closed for the year.
The significance of the American
fiscal year increases annually with the
wonderful growth of the country. on
February IL, 1873. congress, by resolu-
ton, esta blished the office of secretary
Of the treasury, with a salary of $1,000
a year attached. Five years later the
current expenses of the government,
exclusive OF the interest on the public
debt, aggregated $685. 900. To meet the
expenses of the government for the
fiscal year 1908 congress appropriated
upward OF sS02, 100000. 1t was esti-
mated at the beginning of the year
th-t the receipts from all sources
would total something more than 1884,
000, 900.
These calculations provided for a
surplus of $42,000,000 in the revenues
for the current fiscal year, but 1t re-
mains to be seen whether or not the
books will disclose such a happy state
of affairs. Beginning with the imam
cial stringency that developed early
last fall there was a decline In the GUS
toms and internal revenue receipts
which continued throughout the re-
snainder of the fiscal year. A consid-
erable deficit is now apparent.
A fact in connection with the close
of the current fiscal year that VIII
probably give comfort to the Pronipl-
ZIONIST is that one of the largest items
in the reduction of the revenues or the
government is in the receipts from the
tax on distilled spirits. The extent Oh
the falling off from this source cannot
be accurately stated prior to the ap-
pearance of the official report, but from
data now made public 1t is evident that
the receipts from distilled spirits VIII
show a loss of approximately $2O.O0O,-
600 as compared with the fiscal year
1907. This will very much more than
overcome the gain made by distilled
spirits in the previous fiscal year. when
the receipts showed an increase of up
ward of $12,000,000 or consumption
of more than 100000 gallons in ex-
cess of the Withdrawals during the
fiscal year 1908. One feature, however,
OF the current years collections from
distilled spirits, calculated to be more
or less disqnieting to the Prohibitionist,
is, despite this evident reduction in the
CONSUMPTION of ardent spirits, the ng-
ures now available indicate an increase
of $500 retail dealers in Intoxicating
liquors.
The falling off in the receipts from
distilled spirits is due to three causes:'
The depression in business following
the monetary stringency which began
last fall, the use of grain alcohol free
of tax in the arts and industries, and
the passage of prohibitOry laws. The
loss TO the revenue, hoWever. by reason
Of the local option lawsAs not as great
as popularity supposed. NEareful analy-
sis of governmental statistics plainly
indicates that while the consumption
of distilled spirits taking the country
as a whole, is increasing, the per cap
ita consumption is steadily decreasing.
The natural increase in the population
and. The consequent opening up of new
teri itory where the saloon is permitted
is at present outstripping the advance
of the temperance wave.
On the other hand the official report
Or oInises tc show a substantial increase
in the receipts from taxes on fermented
liquors, under which heading beer is
largely predominant. This increase,
according to the figures now public,
should amount to a million or upward
This, taken in connection with the fact
that the receipts from cigarettes. oleo-
margarine and adulterated butter also
show a substantial increase, again en-
phaslzes the truth of the statement that
history is in the habit of repeating it.
sell: With the entrance of tight
money" the closing down of mills, the
reduction of fortunes and lull In the
prosperity of the "spenders." the appe-
tites that formerly fed on high class
drinks, fancy cigars and grade l cream
cry butter, turned to beer, cigarettes
and oleomargarine. In times of great
and general prosperity the trick is re-
versed and the revenues plainly re-
fleet 1t.
A notable innovation, from revenue