Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-12-20
WOULD DERIVE
INCOME FROM
WINEAND Beer
Treasury Officials Hope to
Tighten Tax Burden by
Permitting Such Sales
REVENUE FOR BONUS
Secretary Mellon Would Also Modify
Restraints on Sale of Whiskey For
Medicinal Purposes.

Washington Dec. 20.-For the first
time since the adoption of national
prohibition legislation an official
tendency to lessen the rigidity OF
prohibition enforcement, and posi-
bly, to 60 on light wine and beer
basis in strict conformity with the
Constitutional amendment as a
means Of lessening the tax load, was
noted yesterday.
Acting upon appeals from bona
fide associations of physicians, which
have come to him from various parts
of the country, Secretary Mellon
will take steps to modify existing
prohibition regulations which the
medical associations assert make
whisky for hospital and medical use
difficult to obtain promptly, If at all
Such sentiment as exists in Con-
gress for the sale Of light nonintoX-
icating beer and wines with a stiff
tax that would help the Treasury to
meet expected outlays, meets a SYM
pathetic response in the Treasury De
partment. The plan has been con-
sidered to the extent of making esti-
mates and while the move for an
amendment to the Volstead act will
have to come from Congress. the
Treasury, it was officially indicated,
would welcome it.
Predictions that the Soldier Bonus
will pass during the present session
have caused officials to cast about for
new sources of income. The two sug-
gested are in a form of sales tax, by
which certain articles that could
bear the load would be picked out
and assessed, and the tax on beer
Of about 2 per cent, alcoholic con-
tent. 1t is calculated that the latter
source would yield the Government
about d billion. annually and that
a heavy tax would not affect the
sale of the product.
A general sales tax is not being
given especial consideration the idea
being simply to increase the list of
taxable articles, 1t is calculated that
the latter source would yield the
Government about billion annually
and that heavy tax would not af-
feet the sale of the product.
A general sales tax is not being
given especial consideration, the idea
being simply to increase the list of
taxable articles. 1t is calculated
at the Treasury that the income de-
rived from beer and wine tax
would be sufficient to- carry bonus
for soldiers.
Expressions in a high official
source today manifested that, while
light, Misunderstanding liquor would
be entirely satisfactory to the de-
partment and would go far toward
solving many problems, because of
the agitation that would arise in
"dry" ranks, no formal recommends
tion on the subject is contemplated
at this time. It is considered pre-
ferable that the move originates in
the legislative branch, where legis-
lation already is pending in the
House
High officials of the department
believe the prohibition unit has made
it harder for doctors and patients to
get liquor than the law contemplated
In addition they feel that the regula-
tions and office rulings are such that
many wholesale and retail druggists
decline to bother with them with
the result that there are not sup
plies of liquor in the right places. The
policy has caused places from which
one naturally acquires liquor for
legal uses to keep hands off and, it
was asserted, has helped along the
Illicit liquor traffic.
1t was admitted at the Treasury
Department today that under the
existing policy of enforcing the
amendment the bootlegers are max
ing big haul and that their profits
might just as we'll be turned into the
Golfers of the Government through
the liquor tax.
Secretary Mellon, it was stated Of
ficially, intends to remedy the situa-
tion respecting physicians. It was
indicated that he will loosen the red
tape surrounding the obtaining Of
liquor so that druggists will feel
freer to handle it and so that it may
be obtained readily by hospitals in
emergency cases. He will also in
vestigate regulations prohibiting the
sale of sweet spirits of nitre.
Mr.. Mellon is expected to call in
Commissioner Haynes of the Prohibi-
ton Bureau, and ask review of all
the orders governing the medicinal
sale of whisky and to take prompt
action toward simplifying the sys.
tenn.