The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-12-17
LIQUOR TAX REVENUE.
The Ten Per Cent. Decline May No
be Due TO Prohibitory Laws.

To THE EDITOR or THE SuN-Sfr. The
| annual report of the Commissioner OF
Internal Revenue showing a decrease Of
about 10 per cent. in taxes paid on dis
titled and fermented liquors during the
past fiscal year IL being quoted by the
advocates of prohibition as a proof that
their plan for making men temperate by
law IL reducing the consumption OF alco-
holic beverages and eve Commissioner
Osborne seems inclined to attribute the
decrease in taxes to the adoption OF
prchibitory laws by various States.
The trouble with the use Of the fig
ures smaller revenues from the
internal revenue tax on liquors as an
argument in favor of prohibition is that
there In no proof that the loss In reve-
nue. was due ia prohibitory laws. In
the first place, the prohibitionists ignore
the widespread business depression that
prevailed throughout the country last
year. Thousands Of factories were closed
or running on short time nj least "A
million workers were idle. and nearly
every line OF commercial n industrial
activity was inJuriously affected by
I conditions arising out OF the war.
II was not until toward the end OF the
United States fiscal year that business
began to improve. and even now manu-
featuring and mercantile activities are
below the average for the preceding four
or nv years. II IL therefore unfair TO
argue that the decrease In liquor taxes
is due to prohibition. when as a mat
ter OF fact the consumption Of liquors,
as we'll as OF all other kinds OF goods,
was affected by the general business and
industrial depression. For instance, IN
the fiscal year following the outbreak OF
the European war the sale of boots and
shoes declined $50. 900. 00O. or about IL
per cent. as compared with the 10 per
cent. decrease in liquors.
The prohib.tionists do not seem to
be aware OF the fact that the quantity
Of distilled spirits withdrawn from bond
during any given period does not neces-
sarily mean the consumption of only
that amount. Previous to the advent OF
the recent abnormal conditions in trade
and industry large quantities OF liquors
were withdrawn and shipped to all sec
lions OF the country. In anticipation Of
the usual demand. These tax paid Ii
auors were held in stock by wholesale
and retail dealers. and when the less
ened demand. consequent on decreased
purchasing power. was manifested. the
dealers used up these stocks.
Even though IL could he shown that
less taxes were paid on liquors Intended
for sale in prohibition areas. this would
not prove that less liquor was consumed
II IL notorious that following the adop-
ton Of prohibition In the various
Southern States there has been a great
Increase In the Illicit production of
liquor. commonly called 'moOnshining.'
Thousands OF Illicit stills have been dis
covered and broken up, but all the
powers OF the Internal Revenue Bureau
have not been able to suppress this
Illegal traffic. The net result has been
to substitute more injurious liquors on
which no taxes were paid for those pro-
duced under strict Government super
vision from which n revenue Is derived.
The fact that 3,S32 Illicit distilleries,
an increase Of more than 40 per cent
over the preceding year.. were destroyed
during the past fiscal year. shows the
great increase in the consumption OF
Illegally produced liquors.
The truth II hat the production of
alcoholic beverages is such a simple and
easy matter that a police force Of
| 1000. 900 men could not prevent their
manufacture and use. Apple juice left
10 stand for some time In n warm cellar
becomes hard" or alcoholic. The Juice
or grapes. unless p~asteurized, soon de-
velops alcohol by fermentation. Whiskey
can he made from molasses or sugar in
a still costing $40 or less. at a cost Of
about 20 cents a gallon. II IL therefore
evident that the attempt to prevent the
use or intoxicating liquors by laws that
prohibit their sale or manufacture for
sale is. In the very nature of things,
doomed to certain failure. II. l..
NEW YORK. December 10.