HOW TO RAISE REVENUE. 735 



ad valorem. One barrel of thirty-one gallons equals 248 pints or 

 496 half pints. The present tax on this basis is, therefore, one 

 fifth of a cent per half pint, or per glass as usually sold in saloons 

 for five cents ; or two fifths of a cent per pint. 



In recent years some of the large industrial establishments of 

 the country have made a practice of furnishing their employees 

 with beer of a good quality at a price but little in excess of the 

 cost of production. In such cases the beer is sold by weight, a 

 pint being regarded as equal to a pound, and a pound as equal 

 to two glasses such as are usually sold in the saloons. From 

 twenty-six to thirty tickets, each representing one pound of beer, 

 are usually sold for one dollar, which makes the average cost to 

 the local consumers of from one and two thirds to one and three 

 fourths cents for a full glass or half pound of beer, and which 

 charge is represented by those competent to express an opinion 

 as sufficient to cover the wholesale price and entire cost of distri- 

 bution labor, ice, rent, and light and leave a fair profit. 



The points of interest worthy of special attention in connection 

 with this subject are as follows : 



1. The regular and great increase in the quantity of fermented 

 liquors annually made subject to internal revenue taxation i. e., 

 from 62,205,375 gallons in 1863 to 1,110,609,000 in 1896 ; an increase 

 in popular consumption very far in excess of the rate of increase 

 in the population of the country i. e., from 1"86 gallon per head 

 in 1863 to about sixteen gallons in 1896, the latter representing 

 an average consumption of about 100,000 barrels daily. 



2. The concurrent regular increase in revenue from this source 

 has been from 61,558,000 in 1863 to $33,784,255 in 1896. 



3. As large and costly plants are essential for the manufacture 

 of fermented liquors on a large scale and at the lowest cost, illicit 

 production is thereby rendered difficult, if not impossible ; and 

 whatever of fraud upon the revenue exists in this business is 

 undoubtedly due to the non-use or non- cancellation of the stamps 

 which represent prepayment as a condition of sale and con- 

 sumption. 



4. The variations in the product of fermented liquors which 

 the Government has been able to annually subject to taxation 

 since 1863 have been inconsiderable and in remarkable contrast to 

 those occurring in the case of distilled spirits. The average in- 

 crease in the receipts of internal revenue from this source for the 

 ten years from 1883 to 1892 was about $1,617,000 per annum ; the 

 per capita consumption during the same period increasing from 

 10'25 gallons to 15'05 gallons. Comparing 1894 with 1893, there 

 was a remarkable decrease in revenue in the former year of 

 $1,134,195. Comparing 1895 with 1894, there was a recuperation 

 in receipts to the extent of $225,829 ; which augmentation in 1896 



