Spirits, Foreign and Domestic. collection of the revenue, by confining the responsibility to a smaller number of persons, and simplifying the process. And it avoids the necessity of so great a number of officers as would be required in a more diffuse system of collection, operating immediately upon purchasers and consumers. Besides, that the latter plan would transfer, whatever inconveniencies may be incident to the collection, from a smaller to a greater number of persons. III. It is alleged that the inspection of the officers is injurious to the business of distilling, by laying open its secrets or mysteries. The complaint, as it respects the marking of casks and vessels, has somewhat more foundation. It is represented (and upon careful inquiry appears to be true) that through long-established prejudice, home-made spirits of equal quality with foreign, if known to be home-made, will not command an equal price. This particularly applies to geneva. If the want of a distinction between foreign and home-made spirits were an occasion of fraud upon consumers, by imposing a worse for a better commodity, it would be a reason for continuing it; but as far as such a distinction gives operation to a mere prejudice, favorable to a foreign and injurious to a domestic manufacture, it furnishes a reason for abolishing it. Different distillers, there is no doubt, practice in certain respects different methods in the course of their business, and have different degrees of skill. Though time might be expected to remove the But it may well be doubted whether in a business prejudice, the progress of the domestic manufactso old and so much diffused as that of the distilla-ure, in the interval, might be materially checked. tion of spirits, there are at this day secrets of consequence to the possessors. There will at least be no hazard in taking it for granted, that none such exist in regard to the distillation of rum from molasses or sugar, or of the spirits from grain usually called whiskey, or of brandies from the fruits of this country. The cases in which the allegations are made with most color apply to geneva, and perhaps to certain cordials. It appears, therefore, expedient to remove this ground of complaint by authorizing the same marks and certificates, both for foreign and for homemade geneva. Perhaps, indeed, it may not be unadvisable to vest somewhere a discretionary power to regulate the forms of certificates, which are to accompany, and the particular marks, which are to be set upon casks and vessels containing spirits, generally, as may be found convenient in practice. It is probable, that the course of the business Another source of objection with regard to the might and would always be such, as in fact to in-marking of casks is, that there is a general prohivolve no inconvenience on this score. But as the contrary is affirmed, and as it is desirable to obviate complaint as far as it can be done, consistently with essential principles and objects, it may not be unadvisable to attempt a remedy. It is to be presumed, that if any secrets exist, they relate to a primary process, particularly the mixture of the ingredients; this, it is supposable, cannot take a greater time each day, than two hours. If, therefore, the officers of inspection were enjoined to forbear their visits to the part of the distillery commonly made use of for such process, during a space not exceeding two hours in each day to be notified by the distiller, there is ground to conclude that it would obviate the objection. IV. The regulations for marking of casks and vessels, as well as houses and buildings, also furnish matter of complaint. This complaint, as it regards houses and buildings, has been already adverted to; but there is a light in which it is made that has not yet been taken notice of. bition against defacing or altering the marks, and a penalty upon doing it, which prevents the using of the same casks more than once, and occasions waste, loss, and embarrassment. It is conceived, that this prohibition does not extend to the effacing of old marks and placing of new ones by the officers of the revenue, or in their presence and by their authority. But as real inconveniencies would attend a contrary construction, and there is some room for question, it appears desirable that all doubt should be removed, by an explicit provision to enable the officer to efface old marks and substitute new ones, when casks have been emptied of their former contents, and are wanted for new use. V. The requisition to keep an account from day to day of the quantity of spirits distilled is represented both as a hardship and impossible to be complied with. But the Secretary is unable to perceive that it can justly be viewed either in the one or in the other light. The trouble of setting It is said that the requiring the doors of the down in the evening the work of the day, in a book apartments as well as the outer door of each build-prepared for and furnished to the party, must be ing to be marked, imposes unnecessary trouble. inconsiderable, and the doing of it would even When it is considered how little trouble or ex- conduce to accuracy in business. pense attends the execution of this provision, in the first instance, and that the marks once set will endure for a great length of time, the objection to it appears to be without weight. But the provision, as it relates to the apartments of buildings, has for its immediate object the convenience of the distillers themselves. It is calculated to avoid the very evil of an indiscriminate search of their houses and buildings, by enabling them to designate the particular apartments which are employed for the purposes of their business, and to secure all others from inspection and visitation. The idea of impracticability must have arisen from some misconception. It seems to involve a supposition that something is required different from the truth of the fact. Spirits distilled are usually distinguished into high wines, proof spirits, and low wines. It is certainly possible to express each day the quantity of each kind produced, and where one kind is converted into another, to explain it by brief notes, showing in proper columns the results in those kinds of spirits which are ultimately prepared for sale. A revision is now making of the forms at first Spirits, Foreign and Domestic. transmitted, and it is not doubted that it will be easy to obviate the objection of impracticability. On full reflection the Secretary is of opinion, that the requisition in this respect is a reasonable one, and that it is of importance to the due collection of the revenue, especially in those cases, where, by the alternative allowed in favor of country distilleries, the oath of a party is the only evidence of the quantity produced. It is useful in every such case to give the utmost possible precision to the object which is to be attested. VI. It is alleged as a hardship, that distillers are held responsible for the duties on spirits which are exported, till certain things difficult to be performed, are done, in order to entitle the exporter to the drawback. This is a misapprehension. The drawback is at all events to be paid in six months, which is as early as the duty can become payable, and frequently earlier than it does become payable. And the Government relies on the bond of the exporter for a fulfilment of the conditions upon which the drawback is allowed. An explanation to the several collectors of this point, which has taken place since the complaint appeared, will have removed the cause it. The same explanation will obviate another objection founded on the supposition that the bond of the distiller and that of the exporter are for a like purpose. The latter is merely to secure the landing of the goods in a foreign country, and will often continue depending after every thing relative to duty and drawback has been liquidated and finished. VII. It is an article of complaint that no drawback is allowed in case of shipwreck when spirits are sent from one port to another in the United States. There does not occur any objection to a provision for making an allowance of that kind, which would tend to alleviate misfortune and give satisfaction. surety is made to depend on the discretion of the chief officer of inspection. The requiring of sureties can be no more a hardship on distillers than on importing merchants, and every other person to whom the public afford a credit. It is a natural consequence of the credit allowed; and a very reasonable condition of the indulgence which, without this precaution, might be imprudent, and injurious to the United States. The party has his option to avoid it by prompt payment of the duty, and is even entitled to an abatement, which may be considered as a premium if he elects to do so. As to the second point, if sureties are to be given, there must be some person on the part of the Government to judge of their sufficiency, otherwise the thing itself would be nugatory; and the discretion cannot be vested more conveniently for the party than in the chief officer of inspection for the survey. A view has now been taken of most, if not of all, the objections of a general nature, which have appeared. Some few of a local complexion remain to be attended to. The representation, signed Edward Cook, chairman, as on behalf of the four most western counties of Pennsylvania, states, that the distance of that part of the country from a market for its produce leads to a necessity of distilling the grain, which is raised, as a principal dependence of its inhabitants; which circumstance and the scarcity of cash combine to render the tax in question unequal, oppressive, and particularly distressing to them. As to the circumstance of equality, it may safely be affirmed to be impracticable to devise a tax which shall operate with exact equality upon every part of the community. Local and other circumstances will inevitably create disparities more or less great. Taxes on consumable articles have, upon the whole, better pretensions to equality than VIII. The necessity of twenty-four hours' notice, any other. If some of them fall more heavily on in order to the benefit of drawback on the export-particular parts of the community, others of them ation of spirits, and the prohibition to remove them are chiefly borne by other parts. And the result from a distillery after sun-set, except in the pre- is an equalization of the burden as far as it is attainsence of an officer, are represented as embarrass-able. Of this class of taxes it is not easy to conments to business. The length of notice required appears greater than is necessary. It is not perceived, that any inconvenience could arise, from reducing the time to six hours. But it is not conceived to be necessary or expedient to make an alteration in the last mentioned particular. The prohibition is of real consequence to the security of the revenue. The course of business will readily adapt itself to it, and the presence of an officer in extraordinary cases will afford due accommodation. IX. It is stated as a hardship, that there is no allowance for leakage and wastage in the case of spirits shipped from one State to another. The law for the collection of the duties on imports and tonnage allows two per cent. for leakage on spirits imported. A similar allowance on home-made spirits at the distillery, does not appear less proper. X. It is mentioned as a grievance, that distillers are required to give bond with surety for the amount of the duties, and that the sufficiency of the ceive one which can operate with greater equality than a tax on distilled spirits. There appears to be no article, as far as the information of the Secretary goes, which is an object of more equal consumption throughout the United States. In particular districts a greater use of cider may occasion a smaller consumption of spirits; but it will not be found on a close examination that it makes a material difference. A greater or less use of ardent spirits, as far as it exists, seems to depend more on relative habits of sobriety or intemperance than on any other cause. As far as habits of less moderation, in the use of distilled spirits, should produce inequality anywhere, it would certainly not be a reason with the Legislature either to repeal or lessen a tax which, by rendering the article dearer, might tend to restrain too free an indulgence of such habits. It is certainly not obvious how this tax can operate particularly unequal upon the part of the country in question. As a general rule it is a Spirits, Foreign and Domestic. true one, that duties on articles of consumption | more to the revenue. Numerous other examples fall on the consumers, by being added to the in the confirmation of this might be adduced. price of the commodity. This is illustrated in As to the circumstance of scarcity of money, as the present instance by facts. Previous to the far as it can be supposed to have foundation, it is law laying a duty on home-made spirits the price as much an objection to any other tax as the of whiskey was about thirty-eight cents; it is now one in question. The weight of the tax is not about fifty-six cents. Other causes may have certainly such as to involve any peculiar difficulty. contributed in some degree to this effect, but it is It is imposible to conceive that nine cents per galevidently to be ascribed chiefly to the duty. lon on distilled spirits, which is stating it at the highest, can, from the magnitude of the tax,distress any part of the country, which has an ability to pay taxes at all, enjoying too the unexampled advantage of a total exemption from taxes on houses, lands, or stock. Unless, therefore, the inhabitants of the countries, which have been mentioned are greater consumers of spirits, than those of other parts of the country, they cannot pay a greater proportion of If they are, it is their interest to become less so. It depends on themselves by diminishing the consumption to restore equality. the tax. The argument, that they are obliged to convert their grain into spirits in order to transportation to distant markets, does not prove the point alleged. The duty on all they send to those markets will be paid by the purchasers. They will still pay only upon their own consumption. The population of the United States being about four millions of persons, and the quantity of spirits annually consumed between ten and eleven millions of gallons, the yearly proportion to each family, if consisting of six persons, which is a full ratio, would be about sixteen gallons, the duty upon which would be less than one dollar and a half. The citizen who is able to maintain a family, As far as an advance is laid upon the duty, or and who is the owner or occupier of a farm, canas far as the difference of duty between whiskey not feel any inconvenience from so light a contriand other spirits tend to favor a greater consump-bution, and the industrious poor, whether artisans tion of the latter, they as greater manufacturers of the article, supposing this fact to be as stated, will be proportionably benefited. The duty on home-made spirits from domestic materials, if paid by the gallon, is nine cents. From the communications which have been received, since the passing of the act, it appears that paying the rate annexed to the capacity of the still, and using great diligence, the duty may be in fact reduced to six cents per gallon. Let the average be taken at seven and a half cents, which is probably higher than is really paid. Generally speaking, then, for every gallon of whiskey which is consumed, the consumer may be supposed to pay seven and a half cents; but for every gallon of spirits distilled from foreign materials, the consumer pays at least eleven cents, and for every gallon of foreign spirits at least twenty cents. The consumer, therefore, of foreign spirits pays nearly three times the duty, and the consumer of home-made spirits from foreign materials nearly fifty per cent. more duty, on the same quantity, than the consumer of spirits from domestic materials, exclusive of the greater price in both cases, which is an additional charge upon each of the two first mentioned classes of consu mers. When it is considered that 8-21 parts of the whole quantity of spirits consumed in the United States are foreign, and 7-21 parts are of foreign materials, and that the inhabitants of the Atlantic and Midland countries are the principal consumers of these more highly taxed articles, it cannot be inferred that the tax under consideration bears particularly hard on the inhabitants of the Western country. This may serve as an exemplification of a general proposition of material consequence, namely, that, if the former description of citizens are able from situation to obtain more for their produce than the latter, they contribute proportionally or laborers, are usually allowed spirits or an equivalent in addition to their wages. The Secretary has no evidence to satisfy his mind, that a real scarcity of money will be found, on experiment, a serious impediment to the paymay of the tax anywhere. In the quarter where this complaint has particularly prevailed, the expenditures for the defence of the frontier would seem alone sufficient to obviate it. To this it is answered, that the contractors for the supply of the Army operate with goods and not with money. But this still tends to keep at home whatever money finds its way there. Nor is it a fact, if the information of the Secretary be not materially erroneous, that the purchases of the contractors of flour, meat, &c., are wholly with goods. But if they were, the Secretary can aver, that more money has, in the course of the last year, been sent into the Western country from the Treasury, in specie, and bank bills which answer the same purpose, for the pay of the troops and militia, and for Quartermaster's supplies,than the whole amount of the tax in the four Western counties of Pennsylvania and the district of Kentucky is likely to equal in four or five years. Similar remittances are likely to be made in future. Hence the Government itself furnishes, and in all probability will continue to furnish, the means of paying its own demands, with a surplus which will sensibly foster the industry of the parties concerned, if they avail themselves of it, under the guidance of a spirit of economy and exertion. Whether there be no part of the United States, in which the objection of want of money may truly exist, in a degree to render the payment of the duty seriously distressing to the inhabitants, the Secretary is not able to pronounce. He can only express his own doubt, of the fact, and refer the matter to such information as the members of any district so situated, may have it in their power to offer to the Legislative body. Spirits, Foreign and Domestic. Should the case appear to exist, it would involve the necessity of a measure in the abstract very ineligible, that is, the receipt of the duty in the article itself. If an alternative of this sort were to be allowed, it would be proper to make it the duty of the party paying, to deliver the article at the place in each county where the office of inspection is kept, and to regulate the price according to such standard, as would induce a preference of paying in cash, except from a real impracticability of obtaining it. In regard to the petition from the district of Kentucky, after what has been said with reference to other applications, it can only be necessary to observe that the exemption which is sought by that petition, is rendered impracticable by an express provision of the Constitution, which declares, that all duties, imposts and excises shall be uniform throughout the United States. case in which an entry is required, to attend an omission to enter. This regulation, by simplifying the business of entering stills, would render it easier to comprehend and comply with what is required, would furnish the officers with a better rule for ascertaining delinquencies, and, by avoiding to them a considerable degree of unnecessary trouble, will facilitate the retaining of proper characters in the offices of collectors. III. It is represented that difficulties have in some instances arisen concerning the persons responsible for the duty. The apparent, not being always the real proprietor, an opportunity for collusion is afforded; and without collusion the uncertainty is stated as a source of embarrassment. It also sometimes happens, that certain itinerant persons without property, complying with the preliminary requisitions of the law as to entry, &c., erect and work stills for a time, and before a half-yearly period of payment arrives, remove and evade the duty. In the course of the foregoing examination of the objections which have been made to the law, some alterations have been submitted for the purpose of removing a part of them. The Secretary will now proceed to submit such farther altera- It would tend to remedy these inconveniences, tions as appear to him advisable, arising either if possessors and proprietors of stills were made from the suggestions of the officers of the reve-jointly and severally liable, and if the duty were nue, or from his own reflections. I. It appears expedient to alter the distinction respecting distilleries from domestic materials in cities, towns and vilages, so as to confine it to one or more stills worked at the same distillery, the capacity or capacities of which together do not fall short of four hundred gallons. The effectual execution of the present provisions respecting distilleries from home materials in cities, towns, and villages, would occasion an inconvenient multiplication of officers, and, would in too great a degree exhaust the product of the duty in the expense of collection. It is also probable that the alteration suggested would also conduce to public satisfaction. II. The present provisions concerning the entering of stills are found by experience not to be adequate, and in some instances not convenient. made a specific lien on the still itself; if also the proprietor of the land, upon which any still may be worked should be made answerable for the duty, except where it is worked by a lawful and bona fide tenant of the land of an estate, not less than for a term of one year, or unless such proprietor can make it appear, that the possessor of the still was during the whole time, without his privity or connivance, an intruder or trespasser on the land; and if, in the last place, any distiller about to remove from the division in which he is, should be required previous to such removal to pay the tax for the year, deducting any prior payments, or give bond with approved surety, conditioned for the payment of the full sum for which he or she should be legally accountable to the end of the year, to the collector of the division to which the removal shall be, rendering proof thereof under the hand of the said collector, within six months after the ex As well with a view to the forfeiture of the stills for non-entry, as to give effect to a specific lean of the duty (if either or both of these provisions should be deemed eligible) it will be necessary to enjoin it upon the officers of the revenue to identify by proper marks the several stills which shall have been entered with them. It appears advisable, that there shall be one office of inspection for each county, with authori-piration of the year. ty to the supervisor to establish more than one, if he shall judge it necessary for the accommodation of the inhabitants; and that every distiller or person having or keeping a still, shall be required to make entry of the same, at some office of inspection for the county, within a certain determinate period in each year. It will be proper also to enjoin upon every person, who, residing within the county, shall procure a still, or who removing into a county, shall bring into it a still, within twenty days after such procuring or removal, and before he or she begins to use the still, to make entry at the office of inspection. Every entry, besides describing the still, should specify in whose possession it is, and the purpose for which it is intended, as whether for sale or for use in distilling; and in the case of a removal of the person from another place into the county, shall specify the place from which the still shall have been brought. A forfeiture of the still ought in every IV. The exemptions granted to stills of the capacity of fifty gallons and under, by the 36th section of the law, appear from experience to require revision. Tending to produce inequality, as well as to frustrate the revenue, they have excited complaint. It appears at least advisable, that the obligation to enter, as connected with that of paying duty, should extend to stills of all dimensions, and that it should be enforced in every case by the same penalty. V. The 28th section of the act makes provision for the seizure of spirits unaccompanied with marks and certificates in the cases in which they Spirits, Foreign and Domestic. are required; but as they are required only in cercover other spirits than those originally contained tain cases, and there is no method of distinguish-in such casks. Appearances which countenance ing the spirits, in respect to which they are neces-suspicion on this point, have been the subjects of sary, from those in respect to which they are not representation from several quarters. necessary, the provision becomes nugatory, because The danger may be obviated, by prohibiting the an attempt to enforce it would be oppressive. importation in such marked casks, on pain of forHence not only a great security for the due exe- feiture both of the spirits and of any ship or vessel cution of the law is lost, but seizures very distress-in which they may be brought. A prohibition of ing to unoffending individuals must happen, not- this sort does not appear liable to any good objecwithstanding great precaution to avoid them. tion. It would be, in the opinion of the Secretary, of IX. The duty of sixty cents per gallon of the great importance to provide, that all spirits what-capacity of a still, was founded upon a computasoever in casks or vessels of the capacity of twenty tion that a still, of any given dimensions, worked gallons and upwards should be marked and certi- four months in the year-which is the usual perified, on pain of seizure and forfeiture, making itod of country distillation-would yield a quantity the duty of the officers to furnish the requisite cer- of spirits which, at the rate of nine cents per galtificates gratis to distillers and dealers in all cases, lon, would correspond with sixty cents per gallon in which the law shall have been complied with. of the capacity of the still. It will deserve conIn those cases in which an occasional recurrence sideration, whether it will not be expedient to give to the officers for certificates might be inconveni- an option to country distillers, at the annual entry ent, blanks may be furnished, to be accounted for. of their stills, to take out a license for any portion And it may be left to the parties themselves, in of the year which they may respectively think fit, the like cases, to mark their own casks or vessels, and to pay at the rate of twelve and a half cents in some simple manner, to be defined in the law. per gallon of the capacity per month, during such These cases may be designated generally. They period. This to stand in lieu of the alternative of will principally relate to dealers, who, in the course paying by the gallon, distilled. It would obviate of their business, draw off spirits from larger to in this case the necessity of accounting upon oath, smaller casks; and to distillers, who pay according and would leave it in the power of each distiller to the capacities of their stills. to cover the precise time he meant to work his still, with a license, and to pay for that time only. A strict prohibition to distil at any other time than that for which the license was given, would be of course necessary to accompany the regulation, as far as regarded any such licensed distiller. As a part of a regulation of this sort, it will be necessary to require, that within a certain period, sufficiently long to admit of time to know and comply with the provision, entry shall be made, by all dealers and distillers, of all spirits in their respective possessions, which shall not have been previously marked and certified according to law, in order that they may be marked and certified as old stock. The regulations here proposed, though productive of some trouble and inconvenience in the outset, will be afterwards a security, both to individuals and to the revenue. VI. At present spirits may not be imported from abroad in casks of less capacity than fifty gallons. The size of these casks is smaller than is desirable, so far as the security of the revenue is concerned; and there has not occurred any good objection to confining the importation to larger casks, that is to say, to casks of not less than ninety gallons. Certainly, as far as respects rum from the West Indies, it may be done without inconvenience, being conformable to the general course of business. The result of examination is, that the exception as to this particular in favor of gin may be abolished. Should any alteration on this subject take place, it ought not to begin to operate till after the expiration of the year. VII. There is ground to suppose that the allowance of drawback, without any limitation as to quantity, has been abused. It is submitted, that none be made on any less quantity than one hundred and fifty gallons. VIII. There is danger that facility may be given to illicit importations, by making use of casks which have been once regularly marked, and the certificates which have been issued with them, to The only remaining points which have occurred, a psroper to be submitted to the consideration of the Legislature, respect the officers of the reve nue. It is represented, that in some instances, from the ill humor of individuals, the officers have experienced much embarrassment, in respect to the filling of stills with water, to ascertain their capacity-which, upon examination, is found the most simple and practicable mode. The proprietors have, in some instances, not only refused to aid the officers, but have even put out of their way the means by which the filling might be conveniently accomplished. It would conduce to the easy execution of the law, and to the very important purpose of retaining and procuring respectable characters as collectors, if the proprietors and possessors of stills were required to aid them in the execution of this part of their duty, or to pay a certain sum as a compensation for the doing of it. The limits assigned in the law respecting compensations, are found, in practice, essentially inadequate to the object. This is so far the case, that it becomes the duty of the Secretary to state that greater latitude in this particular is indispensable to the effectual execution of the law. In the most productive divisions, the commissions of the collectors afford but a moderate compensation. In the greatest part of them, the compensation is glaringly disproportioned to the ser |