The sun., 1917-10-14
"Sun's" Nationwide Survey
Shows Increase in
Prices.
CONSUMPTION DECREASES
|
Retailers Expect to RecOup
Losses by Using More Recti-
fled Spirits.

The new war tax OF &2.10 proof gal.
lon on whiskey, which went into effect
ten days ago. and the Governments s
regulation cutting OF whiskey distilla-
throughout the country and lowered the
amount consumed about 20 per cent.
according to a nationwide survey made
BY THE Sun. 1t is generally believed
that only by increased sales Of rsptfhed
or adulterated "whiskey" can the re-
taller Offset the decrease N consumption
Of standard brand w,siskeys. Whenever
the rectifer makes ten gallons grow
where seven- frew before. the Federal
officials. collect 15 cents 4 gallon as =
recttfyins tax. 20 that the Government
will lose nothing should adulteration In
crease.
Observers with a bent toward the con-
slderaton 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 it to economist
in its demand for a short time following
an advance in price. 1t Is predicted
that the public. once accustomed to the
higher price for whiskey. will renew its
buying.
In the meantime any temporary losses
in Government revenue are likely to be
offset by increased revenue from beer.
| 1t is contended. Temperance advocates
and the Anti-Saloon League say their
cause is helped In no way by the war
tax They insist that because Of the
poor quality whiskey which they say will
be placed on the market, society will
face greater charitable expenses than
ever before.
More Liquor Drunk In Homes.
Reports to THE SUN from twenty-five
! States where liquor is sold and the
District of Columbia indicate that the
| long discussion of the Lever food Dill D!
| Congress gave ample notice to the con-
sumer that taxes and higher prices were
certain The belief was widespread tha'
| whiskey taken from the bonded ware.
| houses before the law went Into enec,
would be free from war tax. This lee
to neavy purchases by dealers anc
| hous eholders throughout the country ant
about 10000, 900 gallons were hastil!
taken from the warehouses. 1t Is pointed
out that this movement has resulted un
doubtedly in much consumption of liquor
! In homes and accounts for part OF TN
| 20 per cent consumption decrease re-
/ ported by retailers.
Previous to the recent war tax th'
Government charged . tax OF $l.l0 OF
each proof gallon OF whiskey. This ta'
il paid when the whiskey is Withdrawn
from a bonded warehouse. where IN mos
instances It Is kept for aging purpose
for al least eight years after it's manu-
facture. After withdrawal the whiske!
can he diluted. adulterated and ampll
fed in a hundred ways. In the last nal
dozen years liquor has been Withdrawn
; from the warehouses for tax at a rate
lac. 600. 900 gallons year. This amoun
returned taxes Of about $l50.o00,O00 /
wear exclusive Of special taxes. Fer
mented liquors in 1915 paid taxes o
$Ss, 100000
OF increasing the liquor tax bonded ware
houses had In storage 230.OoO.OOO gal
Ions Congress voted a war tax OF $2.le
making the total tax $500 a gallon u
an effort to avoid this extra war "a
dealers and consumers Withdrew miiiion
NJ gallon. 1t was found, however. tina
the tax follows the whiskey, so the GOV
ernment will receive revenue or a
least s32O per gallon on the 3o,ooo'oo
gallons. WhOleSaleTS peieNo 'ha' ~
decreased consumption. coupled with IN
ampliticaton Of this stock by rectifyint
viii combine to meet the American de
mand for at least three years
Several states soon to 60 Dry.
What effect the trend toward stead
i,v diminishing number OF saloons In tn
United states will have upon consumT
tion Us a question which has no dehnit
answer.
prohibition goes into effect in the Dis
,rict OF Columbia November I. 1917; I
Indiana April 2. 1918: in Michigan Ma
I 1918. and In Montana December 3
1918 In several Of the States the IN
creased cost Of liquor. increased licens
taxes and a general increase In overhea
expenses have caused the number OF ss
looms to decrease. The Brown bill. RI
Gently effective in New York Stat
closed about 1000 saloons, In New Yor
, CITY 200 saloonkeepers voluntarily close
nm the Hrst Of this month because OF III
hirh cost Of doing business.
This cutting down In the number
saloons and It's relation to the COT
sumption, Is felt In several OF the WI
states, according to the reports mad
. for the survey Of THE SUN, but III
Dn1s