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Editorial
November 6, 1891
The Great West
Saint Paul, Ramsey County, Minnesota
What is this article about?
Editorial argues for a sub-treasury system for farmers, comparing government support for distillers (warehousing 73.5M gallons of spirits tax-free for up to 3 years at $2.6M annual cost) to potential aid for agriculture, signed by N. A. Dunning.
OCR Quality
98%
Excellent
Full Text
WHISKY VS. SUB-TREASURY.
This Is the Way the Liquor Interest Is Petted and Cared For.
The report of the commissioner shows that on June 30, 1889, there were 4,576 registered distilleries, and 4,349 were in operation. The amount of grain used was 20,990,924 bushels, and the number of gallons of spirits produced was 87,887,456. The annual expense of taking care of this branch of the internal revenue service was fully $2,600,000. The average amount of spirits warehoused for the past three years is about 66,000,000 gallons, besides 7,465,000 gallons held for over-due taxes, making in the whole about 73,500,000 gallons upon which taxes have not been paid. The amount of this tax would be $66,150,000. The above facts are given simply to show what our government has done and is doing for a class of its citizens, and by inference to inquire why it should not extend similar privileges, only in a much less complicated form, to the agricultural classes of the country. The sub-treasury plan asks far less of the government than is now granted to the distillers. As it is, the deposit of the spirits can remain in the warehouse for three years, during which time the government cares for it at a cost of $2,600,000 per year, or $7,800,000 for the legal term. That is, the government really advances in salaries, etc., $7,800,000 before a legal demand could be made for the tax. The distiller has nothing to pay for the government employees, he only pays the 90 cents per gallon tax. When spirits are put in the warehouse a bond is given for the payment of the tax, and a certified copy of the whole transaction is given the distiller. This copy of the deposit is good collateral security at any bank, and to-day fully $70,000,000 of credit currency is obtained upon this class of securities, and why not? The bond assures the payment of the tax, and the government is the custodian of the property. The ageing of the liquor pays the interest, also when it is sold the dealer pays the tax. In this manner the distillers obtain the use of this vast amount of money absolutely free. Is it unfair to ask that the farmer may have equal privileges with the distiller? Is not the farmer worthy of as much consideration from the government? Why cannot the farmer be permitted to take his grain to government warehouses for care and safe keeping. The distiller is allowed to do so after the grain has been transformed into spirits. The banks have a credit with the government of over $200,000,000 that returns them a profit. The distilleries a credit of $70,000,000 that costs them nothing. Why cannot the farmer have a credit that he is willing to pay for? The sub-treasury plan contemplates the same line of legislation, only much less complicated and far more satisfactory. The same statutory laws that now govern the warehousing of spirits with but few amendments, would apply to the sub-treasury system. The innovation upon law and custom would cut no figure. It violates no organic law and establishes no new precedents. There are 4,349 registered distillery warehouses, which is more than double the number of sub-treasuries that would be required to carry out the sub-treasury plans for many years. The cost of conducting them certainly could be no more. Here is found a system already in force, that with few amendments, would meet the requirements of the sub-treasury plan. The proposed plan is, therefore, taken out of the province of theory, and becomes simply a question of application. The people demand its trial, and their demands are sure to be heeded in the end. N. A. Dunning. Office Alliance Pub. Co., Washington, D. C.
This Is the Way the Liquor Interest Is Petted and Cared For.
The report of the commissioner shows that on June 30, 1889, there were 4,576 registered distilleries, and 4,349 were in operation. The amount of grain used was 20,990,924 bushels, and the number of gallons of spirits produced was 87,887,456. The annual expense of taking care of this branch of the internal revenue service was fully $2,600,000. The average amount of spirits warehoused for the past three years is about 66,000,000 gallons, besides 7,465,000 gallons held for over-due taxes, making in the whole about 73,500,000 gallons upon which taxes have not been paid. The amount of this tax would be $66,150,000. The above facts are given simply to show what our government has done and is doing for a class of its citizens, and by inference to inquire why it should not extend similar privileges, only in a much less complicated form, to the agricultural classes of the country. The sub-treasury plan asks far less of the government than is now granted to the distillers. As it is, the deposit of the spirits can remain in the warehouse for three years, during which time the government cares for it at a cost of $2,600,000 per year, or $7,800,000 for the legal term. That is, the government really advances in salaries, etc., $7,800,000 before a legal demand could be made for the tax. The distiller has nothing to pay for the government employees, he only pays the 90 cents per gallon tax. When spirits are put in the warehouse a bond is given for the payment of the tax, and a certified copy of the whole transaction is given the distiller. This copy of the deposit is good collateral security at any bank, and to-day fully $70,000,000 of credit currency is obtained upon this class of securities, and why not? The bond assures the payment of the tax, and the government is the custodian of the property. The ageing of the liquor pays the interest, also when it is sold the dealer pays the tax. In this manner the distillers obtain the use of this vast amount of money absolutely free. Is it unfair to ask that the farmer may have equal privileges with the distiller? Is not the farmer worthy of as much consideration from the government? Why cannot the farmer be permitted to take his grain to government warehouses for care and safe keeping. The distiller is allowed to do so after the grain has been transformed into spirits. The banks have a credit with the government of over $200,000,000 that returns them a profit. The distilleries a credit of $70,000,000 that costs them nothing. Why cannot the farmer have a credit that he is willing to pay for? The sub-treasury plan contemplates the same line of legislation, only much less complicated and far more satisfactory. The same statutory laws that now govern the warehousing of spirits with but few amendments, would apply to the sub-treasury system. The innovation upon law and custom would cut no figure. It violates no organic law and establishes no new precedents. There are 4,349 registered distillery warehouses, which is more than double the number of sub-treasuries that would be required to carry out the sub-treasury plans for many years. The cost of conducting them certainly could be no more. Here is found a system already in force, that with few amendments, would meet the requirements of the sub-treasury plan. The proposed plan is, therefore, taken out of the province of theory, and becomes simply a question of application. The people demand its trial, and their demands are sure to be heeded in the end. N. A. Dunning. Office Alliance Pub. Co., Washington, D. C.
What sub-type of article is it?
Agriculture
Economic Policy
Taxation
What keywords are associated?
Sub Treasury
Farmers
Distilleries
Warehousing
Internal Revenue
Spirits Tax
Agricultural Credit
What entities or persons were involved?
Government
Distillers
Farmers
Banks
N. A. Dunning
Editorial Details
Primary Topic
Advocacy For Sub Treasury System For Farmers
Stance / Tone
Strongly Supportive Of Equal Government Privileges For Farmers As For Distillers
Key Figures
Government
Distillers
Farmers
Banks
N. A. Dunning
Key Arguments
Government Warehouses 73,500,000 Gallons Of Untaxed Spirits At $2,600,000 Annual Cost
Distillers Get $70,000,000 In Free Credit Via Bonded Warehouse Certificates
Sub Treasury Plan Seeks Similar But Simpler Warehousing For Farmers' Grain
Existing Distillery Laws Can Be Amended For Sub Treasury With Minimal Changes
Farmers Deserve Equal Consideration As Distilleries And Banks Receive