SPIRITS.
Another change of great importance recommended by the Commission, both in their general Report, and in a special report devoted to this subject, is a reduction of the duty on spirits from two dollars to one dollar per gallon as a revenue measure, the higher duty having proved an utter failure. For some months past the average quantity that has monthly paid duty has been less than half a million gallons, or at the rate of six millions of gallons per year, while the entire annual product, by the census of 1860, exceeded ninety-two millions of gallons, and, at the customary rate of increase, would have amounted to one hundred and twenty millions of gallons, or ten millions a month, in place of half a million in 1866. It has been ascertained that in 1860 more than half the annual production was consumed in the arts. As alcohol it was used for ether, spirit-lamps, camphene, and burning-fluid; by apothecaries for tinctures and medicinal preparations; by hair-dressers for lotions; and it was also consumed in many manufactures. The duty has carried alcohol to five dollars per gallon, and nearly stopped its use in the arts, while it has not stopped the use of spirits as a beverage. It has drawn a revenue from the pockets of the people, and transferred it from the government to the illicit trader. While the duty ranged from twenty to sixty cents per gallon, the amount assessed was from six to seven million gallons per month; but the returns nearly ceased with the advance of duty two years since. Efforts have been made to sustain the present duty by reference to the practice of Great Britain, where a duty of $2.40 is imposed upon the imperial gallon; but the imperial gallon is more than twenty per cent larger than the wine gallon of America. The average prime cost of good spirits there being sixty cents a gallon, while it has been but twenty cents in the West, the percentage of the British duty is but 400 per cent, while the duty of the United States is 1000 per cent, or a rate 150 per cent above the rate abroad. Great Britain, in her compact territory, has employed 7,200 men in the preventive service, and 66 cruisers to check the evasions of her duties on spirits and tobacco; and it is estimated by good judges that a large part of the spirits, and more than half the tobacco, consumed in England escape the duty. Several thousand seizures are made annually, and it has been testified before Parliament that not one evasion in sixteen is detected. If this be so in Great Britain, it is not surprising that the government has failed, in this country, with its sparse population, to collect a duty of 1000 per cent, or that the experiment has cost the nation more than fifty millions. Such excessive duties may well be styled over-taxation, and tend to demoralize and corrupt our revenue officers, to encourage fraud, and to enrich illicit traders. The Commission believe that the reduction of the duty will restore alcohol to the arts, diminish fraud, and give us a revenue of at least $40,000,000 annually,—a sum nearly equal to the proceeds of the income tax.