National Gazette

For the NATIONAL GAZETTE.

On the Secretary's Report on the Excise.

(Continued from our last.)

In the 7th page of the report, the Secretary continues his vindication of the excise law, from the charge of injuring industry, and interfering with the business of distilling: but in order to give a fair investigation to the subject, I beg leave to make a small digression from the general argument, and to review the circumstances in which this manufacture is involved, together with the characters of those citizens, who are principally interested in it. The stills employed in extracting ardent spirits from grain and fruit, are, with few exceptions, of the smaller kind, in capacity generally from 50 to 100 galls. and being considered as the family vessels of the plantation are turned to many domestic uses, besides that of preparing spirits. For this purpose, however, they are frequently employed for some weeks before the frost is set in hard, and during the spring; which seasons are chosen not only because they are proper for carrying on the business, but because the other labours of the farm are not then so urgent. In those parts of the country, indeed, where the stills are most necessary, the situations of the water would not generally permit their going on during the frost in winter, or the drought in summer: nor at those periods could the stills supply them. But even if these causes could be removed (which is impossible) there is neither grain nor fruit to keep them all employed through the season; perhaps not the tenth still that is in the country would be constantly supplied; nor would there be a demand for the tenth gallon that, in that case, might be distilled. With respect to the materials for distillation, they might be procured in sufficient quantities, not only for the whole consumption of ardent spirits in the United States, but to supply an abundant exportation to other countries; and were it brought to perfection, I repeat, that from long and attentive observation and experience, I know it to be the most wholesome, apple liquor perhaps excepted, of all ardent spirits.

That the soil is capable of producing materials to almost any given extent, will not be questioned, and that stills are owned and employed almost exclusively by the farmers except indeed such as have been erected in the country since the excise law was originated cannot be denied; but the extent and nature of the uses, and value of the distilleries, demand some enquiry.

During the course of the late war, the business of distilling spirits from home produce became very profitable, not only on the account of the want of a foreign demand for our produce, but also, because foreign spirits and molasses ceased to be imported as usual; and the army increased the demand for spirituous liquors; it was at this crisis that the legislature of Pennsylvania attempted to levy an excise, not so much in order to raise a revenue as to prevent a too great a consumption of wheat by distillation, lest bread for the army should thereby be rendered scarce.—But as soon as commerce resumed its wonted channels at the return of peace, and foreign spirits and molasses for distillation, were imported as usual, the demand for whisky, in the old settlements, ceased; and the stills, which had there been numerous, retreated to the recesses of the mountains, and the shades of the western woods, where the use of them is the result of necessity, there being neither cyder nor beer, for an exhilarating and restorative draught, nor any other possible mode of reducing the produce of their farms into a portable form, capable of being transported to a market so distant as the only one to which they must have recourse.

The whisky is used in the families, and given to the labourers of those persons who either keep the still, or procure their produce to be distilled; but is by no means in general use in those parts of the country, from which wheat and flour are brought to the market. Those farmers, who have not stills of their own, generally bring country rum home in their waggons, for family and harvest purposes: they find, that there is more profit in selling their grain, and that a much less quantity of rum, being stronger and rougher in proportion to its proof, is sufficient for their demand.

In the parts more distant, rum cannot be obtained, but at a very high price, and it is generally too of a bad quality: yet, even between 300 and 400 miles from Philadelphia, I have frequently called at taverns for a refreshment, when I could get nothing but rum;—(I have, indeed, gone into other taverns in some towns, in order to mix the water that I had to drink with whisky: finding it much easier on the stomach than such imported spirits as were in use) and, I am well informed, that this has frequently been the case, with many travellers, on their journey from Philadelphia to Pittsburgh. Whilst I am thus dealing in negatives, I will speak of the practices at some places, in which I can appeal to the Secretary himself, for the truth of what I assert. Whisky is not to be found in the taverns at New-York, Philadelphia, or Baltimore; nor is it to be found in those cities, or in similar establishments, in the houses of the wealthy, nor in the dwellings even of the poorest of the poor. I have even observed, that when the criminals were put to public labour in Philadelphia, they were not insulted with whisky, or rather, it could not be got for their supply; but they had rum carried along with them to their work.

It is not exported to foreign countries, nor from one state to another by sea;—in short, wherever money is plenty, and prompt payment in fashion, there are no waggons or pack-horses loaded with whisky, to be seen visiting the markets. I ask where is the grocery, where is the tavern, where is the dram-shop in Philadelphia, in which it is to be found? In all these places, however, rum of different qualities is to be purchased in abundance. But let us reason now in the affirmative.

I will proceed to give the most accurate and candid information of the price of whisky in the different parts of Pennsylvania, though this information will be otherwise applied afterwards, when I come to treat of the justice and policy of the excise law.

I will first premise, that I do not deign to take notice of the fluctuation in the price of whisky, arising from the alarming apprehensions occasioned by the first appearance of the excise law, and its unequal and defective operation. The expectation of a great rise in the price to be promoted by the general resolution of the farmers to lay aside their stills, which I believe the greater number of them did for some time, and an expectation that a much greater demand would be created by the army, than actually did happen, occasioned a temporary rise in the price of whisky, with more probable reason than can be assigned for the rise of certificates last winter, however, the whisky, like the certificates, soon fell again.

But to return. The average cash price of whisky, when cash could be had, was from two shillings to two shillings and six pence, and instances have happened of its being sold at three shillings, when it was made very good and kept up until scarce, (but this depended upon chances, for I never saw any sold at that price except a very few gallons at a time, when it was scarce) but I remember, a few years ago, when I was in the Western country and stood in need of some whisky, a man brought me a load at two shillings, and I believe I could have procured much more at the same price. Even last October, when the excise law and the demand for the army had their effect, I happened to refresh myself at a tavern in those mountains beyond Bedford, when several western farmers were packing their whisky down the road, the tavernkeeper purchased a single keg at three shillings a gallon, and paid but part of the money; however, the man was glad of the opportunity, tho' he had the trouble of balancing the other keg, I believe, with a stone, consequently neither shortened his journey nor eased his horse: he came from the neighbourhood of Pittsburgh.

In the old countries, contiguous to the Susquehannah, the storekeepers have generally purchased whisky from one shilling and ten pence to two and four pence per gallon, delivered by the owner at the store, and not paid till the money could be made of it, and even then part payable in goods. I knew of an instance of eight barrels transported to a considerable distance and sold at one shilling and eight pence a gallon. Even the last year it was taken from the remotest parts of Chester county to Concord, &c. and only two shillings and six pence a gallon asked for it. For the truth of these statements I appeal to the store-keepers and distillers in the parts to which I have alluded. I have been particular in my enquiries ever since the hateful idea of an internal excise was suggested to the public; I am no distiller myself, nor have I ever been, but for three winters past I have enquired at the most respectable distillers from the western country, who were members of assembly, and others, and they have had but one voice in declaring that they did not receive as much money annually for their whisky, as would have paid nine cents a gallon on the quantity they distilled, tho' it in many respects answered the purpose of money to them. I have stated the prices of whisky from the Ohio until I came as near Philadelphia as whisky is in demand, and the result is, that two shillings and six pence is the highest average ready money price that can be admitted into calculation in settled times, even if the excise law was in operation; for it is to be observed, that the state excise law existed in the times to which I allude. But it may be said, that the state excise on home produce was not collected: granted; but though it was not collected, it was an excuse to keep up the price; and are we sure that the present excise will be faithfully collected among a people, who think it radically unjust, and have habitual prepossessions against it.

It is but just to observe that the people of Pennsylvania are well disposed to pay public taxes that are levied upon the principles of equality. this is evident by the very heavy taxes they have always paid, especially since the revolution; their compliance with the requisitions and over-proportions of public creditors they made provision for, is a proof of this; and that they have been foremost in paying the heavy old arrearages to the land office, the records of that office are a standing memorial.

Whisky not being a cash article, nor a merchantable commodity in the usual haunts of commerce, and its consumption being very much limited to particular situations, its average ready money price cannot be easily ascertained: as it is rarely stored any where in great quantities, a sudden demand in a particular place may occasion a local and temporary rise in the price. However, I must make free to question the Secretary's information respecting it, he tells us in the report, page 15, that whisky is raised in the market, by the excise law, from 38 to 50 cents a gallon: I wish I knew his vouchers for this statement: he is not accustomed to admit the smallest demand against the treasury, without sufficient documents. I hope he will not expect a law to be enacted, which may endanger the peace, and has already wounded the happiness of many deserving citizens, without unquestionable authority for the facts by which the justice thereof is to be supported, I wish to know where, under what circumstances, and in what quantities such prices have been paid. From the causes I have mentioned, it may have varied in the price, as much within a year past, as public stock has done, but these instances are no proper data on which to fix an average price.

When we reflect that, until within this ten or twelve years, whisky was usually carried from the old settlements, and sold at five shillings a gallon in the country west of the mountains; and since that time it has been manufactured and sold there in abundance at two shillings, we would expect that a wise financier, or prudent legislature would contemplate the probability of its being much cheaper as population and industry increased. When that country has advanced so much in twenty years past, under the almost constant pressures of war, what may we not rationally expect it to do in twenty years of peace?

In the old settlements, which are within the reach of the market for their produce, a prohibition of whisky would not be very severely felt: their grain and cyder they can dispose of: and the apples, which fall too soon, or which are not fit for cyder they can always give (as was the case with many during the last season) to fatten their hogs.

But let us pursue the enquiry beyond and over the mountains—The peculiar circumstances of the settlements in those districts have not fallen under the personal observation of the Secretary, nor of the members of the Senate; and are practically known to a very small proportion of the House of Representatives, under this existing distribution of the members. I will describe the distant settlements of Pennsylvania, however, as I am better acquainted in that quarter than in the other states; but my information enables me to discern that the situation of those settlements has a great similarity to the situation of the western parts of many of the other states, and of all the settlements on the Ohio.

In the western parts of Pennsylvania, where the people are close settled, I had a few years ago the curiosity to number the stills in particular neighbourhoods; and found, that, in some places, nearly half the farmers had either one still or a pair of stills (the latter being the most convenient number) but in other places the possession of stills was not near so common, especially among those citizens, who were far advanced on the frontier, and had been so reduced by the war, as to be unable to procure them. When the low price of land is considered, a pair of small stills, with the vessels, &c. make a considerable portion of a farmer's property; and when the stills are plenty, you will always observe, that the plantations are better improved, and the appearance of industry in general more conspicuous. But let me pause for a moment.

I think I hear some folks asking, with surprise, are not these people great drunkards?—Newspaper scraps, indeed, have sometimes, with more vulgar rudeness, than mature information, ventured upon so gross an imputation;—and the sober, the ruminating Secretary, has himself made a modest insinuation of the kind. But I presume that the inference is drawn merely from the number of stills; which is a ground of estimation highly erroneous. Clearing new lands, rollings, raisings, &c. necessarily require a greater supply of spirits, than the labor of old settlements. The heavy damps, and the greater frequency of rains, in a country but newly opened to the sun, increase the occasion for spirits. I appeal to the experience of the most abstemious men who have penetrated the woods to survey lands, for the justification of my remark. Those who keep stills are not often drunkards; if they were, keeping them would be a dangerous snare. I am confident that the people in those countries are full as abstemious as the inhabitants of this city; although they drink their liquor (which is but of one kind) for refreshment in the day time, at their labor, or when they meet with their friends; while we drink it here, more prudently perhaps, in the evening; and indulge in a greater variety.

It is not to be denied, however, that there are worthless, drunken fellows in the distant counties; but are there not such here? Yes:—and I believe the proportion to be considerably greater.

I will now proceed to a more particular detail of the uses of this reprobated liquor. The farmer who keeps stills, prepares spirits for his own use, and pays his tradesmen and laborers as far as he can with it, and he likewise distills grain for the neighboring farmers, who keep no stills of their own; and for which he receives grain or a part of the spirits; but he prefers money if they can give it. Whisky is also sold to the tavern-keepers, who do not very generally pay for it, until long after it is drank. It also is usually bartered with the store-keepers for goods, on which it will be readily believed a high profit is charged, as the store-keepers themselves must keep the spirits until it becomes scarce, which is generally the case after harvest, and at which time they sell it to the tavern-keepers, or to people that are trading, or moving down the river. Those persons living near the Monongahela, who make the spirits good and can keep it by them, have often a chance of selling it for money, to those who are trading to the settlements down the Ohio, or to the Spanish settlements on the Mississippi. In that case, if they
Do not get the money immediately, they have the promise of it when the trader returns; which however has too often been dissolved by the loss of his life or of his cargo, by the depredations of the savages. In such settlements, I have observed whisky orders pass from hand to hand, like bank-notes, frequently founded on the credit of whisky not yet existing. With these the farmer will pay his blacksmith, and the blacksmith will pay his tailor, &c. until at last a number of small orders get condensed into 20 gallon loads of whisky. In the settlements on the great rivers, they dispose of horses, lands, &c. for a certain moiety in money, and the rest in trade. When there, I was for some time at a loss to comprehend what they meant by trade, but I soon found that they had specially appropriated that term to whisky, or to the grain that was designed to make it.

In all the western country, indeed, you can get a field cleared, a log-house built, or any other labour performed for a compensation in whisky; but he who has money to give, can get it much cheaper and sooner done. However, to preserve a seeming equality, the barter price of whisky or grain are kept much higher than the cash price; but as might naturally be expected, the labour, or property bartered for it, is also so much the higher. It is frequently carried four or five days journey on horseback, and sold as cheap for money or goods, as it was held at home in barter. But this brings me to point out the most important use that is made of the surplus after satisfying the demand for home consumption.

The farmers thresh out some of their rye after seeding-time, and get it made into whisky to carry to the towns below the mountain, in order to barter it there for salt, and other goods, a man will load his horses, with two kegs to a horse, each keg containing ten gallons, with his forage bags and knapsack between the kegs, or if he can afford it, take a horse to carry forage; and often travel both day and night, or when he rests at night, will tie up his horses, and lay himself down by a tavern-keeper's fire; and when he arrives at the east side of the mountain, goes perhaps from store to store, and from town to town, before he can barter it off for 2s6, or if his fortune is good, at 3s per gallon, for particular goods; for it is not every kind of goods they will give for whisky. That they pay a high enough import upon their salt, to procure which is the principal object of their journey, will be admitted, and that they will be charged with a high enough profit by the store keepers will not be denied.

They spend no money on the road, except a few who put their horses some nights to hay, and take a bed and warm supper, or spend a grog with the tavern-keeper, at whose house they shelter. This is so general a case, that it is known to every man who travels that road in the fall or winter; very often there is not room enough on the floor for them to lay down; and these people are accustomed to live comfortably at home. And this single laborious means of participating in the enjoyments of commerce, and partaking of those things, which, in common with us, are from long habits become necessaries, was the first object of the first internal tax levied by Congress. Tell it not in the nations of Europe, lest the sons of despotism and corruption rejoice.

SIDNEY.