260 THE MALT TAX 



either to the producer or consumer, whichever may be the 

 readiest victim, but a reduction in taxation (especially when 

 an Excise Duty is in question) is usually a gift to the 

 middleman. 



" It further appears, from a calculation of Mr. Joshua Fielden, 

 M.P. which the Select Committee reported to be, in their 

 opinion, based upon a correct principle that the pressure of the 

 duty increases at every stage of the trade and manufacture in 

 about the following proportions : The maltster, paying the 

 tax of 21s. 8d., requires 5 per cent, interest and 10 per cent, 

 profit for this portion of his capital invested, and, charges the 

 brewer 24s. lid.; the brewer, requiring also 15 per cent, upon 

 this expenditure, charges the retailer 28s. 8d.; and the retailer 

 recovers from the consumer this amount with 10 per cent, added 

 for his profit making the total tax paid by the consumer 31s. 6d., 

 for 21s. 8d. actually accruing to the revenue. Thus, according 

 to this estimate, the amount of Malt Duty paid by consumers 

 is 9,425,000, for 6,500,000 received by the revenue showing 

 an absolute loss of 2,925,000, or 45 per cent, upon the duty 

 collected. 



" It appears, moreover, that the payment of the Malt Duty 

 by brewers in the same way that the commuted Hop Duty is 

 now charged, namely, by a Licence Duty, calculated according 

 to the quantity of malt or the equivalent of malt used, would be 

 a positive gain to the brewers ; for, according to these figures, 

 which are approximately, though not strictly, correct, they would 

 buy malt 24s. lid. per quarter cheaper, owing to the abolition 

 of the Malt Duty and of the maltster's interest and profit upon 

 it, and would pay 21s. 8d. per quarter in Licence Duty, showing 

 a saving of 3s. 3d. per quarter. 



" The gain to the consumer is made apparent by following out 

 Mr. Fielden' s illustration of the principle upon which the Malt 

 Tax operates. The retailer, having henceforth to repay the 

 brewers' interest and profit upon 21s. 8d., instead of upon the 

 larger sum, would charge his 10 per cent, profit upon 24s. lid. 

 instead of upon 28s. 8d., making the total tax paid by the con- 

 sumer 27s. 5d. instead of 31s. 6d. This is a gain to the consumer 

 of 4s. Id. per quarter of malt, from transferring the incidence of 

 the taxation from the stage of malting to that of brewing, while 

 still leaving the amount of revenue from this source at its present 

 heavy figure." 



The deputation also made out a good case so far as showing 

 that the duty discouraged the growth of barley. Quoting 

 from the same memorial ; 



" In particular, the operation of the duty discourages the growth 

 of second-class and medium quality barleys. Taking high-class 



