Evening star., 1932-10-30
LIQUOR TAX CALLED
DEPRESS|ON-PROOF
Notwithstanding Form of
Revenue, Say Crusaders,
Asking Congress Action.

The liquor tax is depression-pr
ment for immediate action amending
the Volstead act when Congress con-
venes in December. the Crusaders, anti
prohibition organization, declared In a
statement issued yesterday.
I'VE propose to prove to Congress" y"
the Crusaders statement says, that
the Government gave to bootleggers in
1919 the only income that is depression
proof. 1t was the only steady income
enjoyed by our Federal Government up
to the day it went to the discard when
the eighteenth amendment was passed.
THE liquor tax, like the tobacco tax,
is a non-fluctuating form of revenue.
That is why it is the backbone of the
budget prepared each year by Great
Britain, France. Italy, Germany, South
America and practically all nations ex-
cept the United States. For so years
prior to the World War it was a de-
pendable source of income of the Ameri-
can Government. From 1868 it did not
vary more than 9 to 10 per cent from
year to year, even in periods of panic.
1t rose steadily from s39 100000 in 1867
to S284000,000 in 1917 During the
half century there were just Il years
in which the tax failed TO show a def
mite increase over the previous II
months.
Customs Revenue Varies.
Before the days of the income tax
the United States Governments income
was made up almost entirely of customs
revenue and taxes on tobacco and liquor.
The customs revenue, depending as it
does on foreign trade, fluctuates widely.
1t Is impossible to estimate what this
tax will total in any given year because
the vagaries of trade cannot be antici-
pated. In 1872, the year that prefaced
the panic which followed the Civil War
and which is comparable to our present
depression, total of $2l6,000,000 was
collected from customs. Six years later,
in 1873, this figure had fallen to $780,
100000. This was 2 drop of exactly
S5 per cent. In 1872 the liquor tax
amounted to S58,00OO0 In 1878 it to-
tailed S60,000000 Instead of showing a
decrease comparable to that from Gus
toms, it set up an actual increase of
more than 50 100000 Obviously, the
human race continues to indulge a taste
for nicotine and alcohol even in times
of depression.
In 1928 the ordinary income of the
United States Government was s4,038,-
100000. At the end of the fiscal year,
below $4,000, 600 900. Customs receipts
for the fiscal year ended last June to-
tailed $328,0O0 900, 5000, 100000 less than
in 1928. The only source of income that
IS holding up steadily is the miscella-
reous internal revenue. which is made
up principally of a tax on tobacco.
Even these receipts have fallen from
S6l8, 8,o0o, 900 TO $5o3, ,0000 00G.
Deficit Piles Up.
'As pointed out by Gov. Roosevelt in
his talk at Pittsburgh, the American
Government is today piling up deficit
at the rate of 81 800 100000 year. And
as the Democratic nominee stated, prob
ably the most obvious relief in sight
lies in an immediate modification Of the
Volstead act.
The depression of 1873 may be COM
pared to the one that now atflicts this
Nation, because it followed the Civil
War. As matter of fact, all major
conflicts are inevitably succeeded, sooner
or later, by disastrous panic and a
period of hard times. After the sfnasf,
of 1873 10 long years passed before the
Federal Governments income equaled
the figures of 1872, the last year of the
temporary boom that followed the Civil
War 1t is important to note, however
that the drop in taxes came in customs
and miscellaneous revenue. The liquor
tax held up. Customs revenue declined
from S216,O00, 900 in 1872 to SI31 900,
coo in 1877. 1t did not again reach a
total as high as $2l6000, 900 until 1879
We have no liquor tax today to act as a
financial lifesaver. Consequently the
United States Treasury Department will
face an exceedingly difficult task in the
next year or two if 1t is asked to make
up the $4,000, 100000 year which we
are now spending to carry on the func-
tions of the National Government.
1--WE are the one civilized nation in
the world that tosses aside this indis-
pensible source of Government income
It is folly to think that we can Go
without this golden stream. 1t is crim-
inal folly to turn this steady income
away from the Treasury Department
and into the hands of the bootleegers
who control cur underworld"