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as compared with that in 1875-76, shows only a slight increase. As 

 regards the increase in consumption in 1888-89 observable in a few 

 districts, as compared with that in 1883-84, it should be remembered 

 (i) that since then most portions of the Presidency have had a succes- 

 sion of very good seasons and the Presidency has rapidly recovered 

 from the effects of the famine of 1876-78 ; and (ii) that, since 1886, 

 the amendment of the Abkdri law giving power to prohibit transport 

 of liquor from Native States, &c,, even in quantities not exceeding a 

 quart and the preventive establishments employed by Government 

 have rendered it possible to displace illicit by licit consumption. 



19. The above remarks refer to " country spirits," by which term 

 is to be understood spirits manufactured in this country and on which 

 the duty levied is below the rate prescribed by the customs tariff for 

 imported liquors and which under present law is Rs. 5 per gallon of 

 London proof strength and in proportion to strength for spirits of 

 other strengths. Spirit manufactured in this country and taxed at 

 the tariff rate is treated in all respects as imported spirit and permitted 

 to be sold in the same shops as the latter. The object is eventually 

 to assimilate the duty on the so-called " country spirit '' to that on 

 foreign spirits, that is to say, to abolish the distinction between 

 "country spirit^' and ''foreign spirit,'^ which is based simply on the 

 rate of duty levied and not on the methods of manufacture. The so- 

 called " country spirit " is in most distilleries manufactured by Euro- 

 pean process and is really rum and it is taxed at lower rates than the 

 tariff rate, because it is believed that, if the duty were levied at the 

 latter rate, considerable inducement would be offered to illicit distil- 

 lation and smuggling. In the case of the Madras town and the Nilgiri 

 district, it is possible now to raise the duty on country spirit to 

 the tariff rate and abolish the distinction between '' country " and 

 " foreign " liquors and this question is now under consideration. 



20. Foreign liquors. — Liquors classed as " foreign " consist of (i) 

 imported spirits, wines and malt liquors ; (ii) spirit manufactured 

 within the Presidency and excised at the customs tariff rate of Rs. 5 

 per gallon of proof strength ; and (iii) beer brewed in the country 

 and excised at the tariff rate of one anna per gallon. Formerly 

 licenses for sale of " foreign liquors " used to be granted on payment 

 of fixed fees, but licenses for the sale of liquors, except in hotels and 

 refreshment vooms, are put up to auction and the liquors subjected to 

 a heavier duty than before. There are two breweries on the Nilgiris 

 and the consumption of the beer brewed is stated to be extending 

 among the lower classes of natives at Ootacamund and other places on 

 the hills, where toddy is not available and the price of country spirit 

 is high. 



21. Toddy. — The regulation of the taxation of toddy (fermented 

 palm juice) presents great difficulties. The levy of an excise duty is 

 impossible and the only means available for regulating the tax on this 

 intoxicant with some reference to consumption is to impose a tax on 

 each palm tree tapped, the rate of tax being based on an estimate of 

 the average production of the several descriptions of toddy-producing 

 trees. The tree-tax to some extent performs the function of an 

 excise duty and enables Government to form some judgment as to 

 increase or decrease in consumption from the number of trees tapped 



