The Free Alcohol Question

The question of ruodifyiug the existiug laws applicable to the exportation of alconol from distillery warehouses free of tax, including the qustion of freeing all alcohol wbioh is not used as a beverage from tax, and the relatiou of that question to the snrplns corn orop of the country, bas been discnssed in a letter recently writteu by the Hon. John McNulta, the receiver for the Distilling and Cattle Feeding Co., to Mr. S. M. Rice, the president of the Americau Distilling Co. Mr. McNnlta argufls in favor of the policy of free alcohol to oor manufacturing industries. He advanoes the novel proposition that the present method of trausooiting alcohol to the seaboard should be done in tank cais, and theuce by tank steamers to the foreign porcs. It is also suggested that the present method of placiug spirits in barrels of moderate capacity wbich are to be stored in distillery bouded warehonses, shonld be disoontinned, and instead the distiller shonld be permitted, by a change in the law, to store his spirits iu sealed tanks. It is clainied that this systern wonld relieve the United States storekeepers ftom watchiug 20,000 or more barrels of spirits, and concéntrate their custody over fout or flve sealed tanks approved by the i goernment. The statement is made that American alcohol is now debarred from many foreign markets by prohibitoiy tariffs, aud that a little wbolesale retaliation, iu the way of keeping ont the varions bottled alcohol prodncts of these conutries, wonld soon result in a ooneiliatory polioy, by means of whicb we wonld gaii a very large share of the foreign trade. It is asserted that the moro alcohol exported and consumed in onr mauufacturiug industries, the greater the benefit to the farmer, who cannot tinder present couditious flnd a sale for his snrplns corn in either domestic or foreigu markets, and for tbat ieason alone, when it is pointed out that the snrplns stock of coru would flnd a ïeady market, congress should not refuse to enaot favorable legislatiou. In conoluding Mr. MoNulta makes the following recommendations: lrit - Au internal revenno tax to the bighest reveaue produoing point iu whatever form prodnced, whether it be whiskey, wine or beer. The tax ou each should be so innoh per proof gallon. 2d - The privilege to store spirits in tanks, aud to ship spirits for export in tauk oars. 3d-The rebate of the tax on alcohol used for all pnrposes except for use as a beverage. (The government providing snob regulations as vvill safeguard and insure the eolleution of the tax ou all alcohol used as a beverage as pfticiently as it is now done). 4th - A discrimiuatiou against the producís of every goverument that discriminates agaiust ourprodui ts, whetber by bounty, tax or otber buiden. It is estimated that 30,000,000 bushels would represent the minimum consumption of corn for distillation of commercial alcohol, if the "free alcohol in the arts polioy" is put into execution, and although it is contended on the one hand tbat that qnantity is only a small percentage of the total corn erop, yet on tbe other hand it is pointed out in the letter that the desired legislation would tend to consume the surplus, and that it cannot be denied that "the surplus of a product niake the price of the product" - (From the New York Journal of Commerce, Feb. 5, 1897.) I (From New York Journal of Commeive, Jan. 29, 1897 ) Senator Platt, of Conneotiont, chairmaD of the special committee duriug the last seesion of cougress to investigate the nee of alcohol free of tax in the arts aud manufactures, has made a coinpnfcation based on the atio between the total quantity of alcohol distilled in Germany and tbequantiry oonsumed free of tax in the arts, whicb has coDvinced him that a domestic market for at least 30,000,000 bushels of corD would be created if the Uoited States sbould follow the example set by Germany. This quautity would be nearly 25 per cent of the total expotts of oorn fi-Qm this conntry duriug 189(5.