The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-10-17
LIQUOR PRICE GOES UP,
CONSUMPTION DROPS,
SAYS NEW YORK sun
Reports Obtained I'm Nation Wide In.
quiry Show Fewer Drinks
Sold I'm Saloons.
MILLIONS OF GALLONS
WITHDRAWN In HASTE
Newspapers Estimate of Average Bar
Bill Shows Total Expense of $4,000
100000 I'm Entire Nation.


New York, Oct. 16.--The new war
tax of $40 q proof gallon on whis-
key, which went into effect ten days
ago, and the governments regulation
cutting of whiskey distillation have
advanced the retail price throughout
the country and lowered the amount
consumed about 20 per cent. accord
ing to a nation wide survey made by
the Sun. 1t Is generally believed, says
the Sun. that only by increased sales
of rectifed or adplterated ''whiskey"
can the retailer offset the decrease in
consumption of standard brand whis-
keys. Whenever the rectifier makes
ten gallons grow where seven grew
before. the federal officials collect If
teen cents a gallon as a rectifying tax.
so that the government will lose moth
ing should adulteration increase.
Observers with a bent toward the
consideration Of the psychological
hold that the decrease in bar sales
In the past ten days is due to the trait
common In the buying public that
leads II to economic In its demand
for short time following an advance
In price.
In the meantime, any temporary
losses In government revenue are like
from beer, 1t is commended. Temper
ance advocates and the Anti-Saloon
league say their cause Is helped In no
way by the war tax. They insist chat
because of the poor quality whiskey
which they say will be placed on the
market, society will face greater char
liable expenses than ever before.
Rush to Buy Before Tax Goes Up.
Reports to~the Sun from twenty-five
states where liquor lis mold and the
District of Column bta indicate that the
long discussion of the Lever food bill
by congress gave ample notice to the
consumer that taxes and higher prices
were certain. The belief was wide
spread that whiskey taken from the
bonded warehouses before the law
went into effect would be free, from
war tax This led to heavy purchases
throughout the country and about co.
eoe, goo gallons were hastily taken
from the warehouses.
Previous to the recent war tax the
government charged a tax of &1.lo
on each proof gallon of whiskey. This
tax Ia paid when the whiskey is with
drawn from a bonded warehouse.
where in most instances 1t Is kept for
aging purposes for eight years after
it's manufacture. After withdrawal
the whiskey can be diluted, adulter-
ated and amplified In a hundred ways.
In the last half dozen years liquor
has been withdrawn from the ware
houses for tax at a rate of 1870, 0o0,-
600 gallons year. This amount re-
turned taxes of about $i5o,o0e.oo0 a
year exclusive of special taxes. Fer
mented liquors in 1915 paid taxes of
SIS. 600, 900
When congn ess took up the question
of increasing the liquor tax bonded
warehouses had In storage 23o. 000,-
900 gallons. Congress voted a war
tax OF S2.I0, making the total tax
$320 a gallon. In al effort to avoid
this extra war tax dealers and con-
suners withdrew millions Of gallons.
1t was found. however. that the tax
follows the whiskey, so the govern
ment will receive revenue of at least
$3.50 per gallons on the ESQ. 600. 600
gallons Wholesalers believe that the
decreaed, consum ption, coupled with
the application of this stock by rec
tifying. will combine to meet the
American demand for at least three
years.
Several States Soon to Go Dry.
% What effect the trend toward a.
steadily diminishing number OF sa-
looms In the United States viii have
upon consumption is q question which
has no definite answer, declares the
Sun.
: Prohibition goes into effect In the
District of Columbia November l.,
1877; In Indiana April 2. 1915. in
Michigan. May /. 1918, and In Mon
tana December 81. 1918. In several
Of the states the increased cost of
liquor, increased license taxes and a
general increase In overhead expenses
have accused the number of saloons %
decrease. The Brown bill, recently
directive in New York state, closed
about 1000 saloons. In New York
city 900 saioonkeepers voluntarily
closed up the first of this month be-
cause of the high cost OF doing bust
ness.
This cutting down in the number
OF saloons and it's relation TO the con-
sumption ts felt In several of the wet
states, according to the reports made
for the survey OF the Sun.
In this connection, says the S&n, 1t
In interesting to note that recent
estimate by the American Grocer puts
the Americans drink bill at $1,724.-
s07,sls. Temperance Cyclopedia puts
the figure at $2.2s0. 100000. It Is es-
timated also that % per, cent of the
population are consumers which, us
ing the estimate OF the American Gro
Ger, would place the bar bin of the
average consumer at ~sV year. As
Stunning that he Is to pay SO per cent
increase because of the recent tax.
this means that for the duration OF
the war the average yearly bar bill
of the consumer will be 1920. con
this basis. the total expense for drinks
over the bar would be $4,000. 00o, 900
year for the entire AUTHORIZATION
Virginian.)
Increased Cost About One THIRD.
Inasmuch as only eight gallons Of
liquor are consumed for each eighty
one gallons of beer each year, 1t is
possible that the increase In the cost
of drinking will reach 33 per cent.
From Investigations of the size of the
new style OF beer glasses and the
amount of foam served In them, 1t
would appear to many, however, that
50 per cent Is not far from the in
crease.
There Ia no doubt, says the Sun.
that the average man Is pouring out
larger drink today than he did be-
fore the increase in price. Many re-
taiIers who formerly sold eighty
drinks at 15 cents from a gallon OF