PRINCIPLES OF TAXATION. 



321 



have exerted the slightest influence on the production and con- 

 sumption of distilled spirits in the United States. But the ad- 

 vent in 1894 of a similar state of affairs in the latter country 

 speedily manifested itself, reducing the current per capita con- 

 sumption from 1*48 gallons in 1893 to 1'33 gallons; the direct 

 revenue from $89,231,000 in 1893 to $79,899,000 ; the current per 

 capita consumption from 1'48 to 1'33 gallong, and the total annual 

 revenue to the extent of $9,461,008. 



The normal consumption of distilled spirits in the United 

 States in 1894, as indicated by withdrawals from distilleries and 

 warehouses, was about 8,000,000 gallons a month. The extent to 

 which the increase in the direct tax on spirits by the act of 

 August 28, 1894, from ninety cents to one dollar and ten cents per 

 gallon, was anticipated by speculators is strikingly illustrated by 

 the fact that an average monthly revenue from the lesser tax 

 of about $8,000,000 per month during the first six months of 1894 

 increased during the month of July and the first twenty-seven 

 days of August to $19,064,000 and $21,470,000 respectively, and 

 declined in the succeeding month of September to $510,696. 



Any review of the comparatively recent tax experiences of the 

 United States would be incomplete that failed to notice its taxa- 

 tion (concurrent with that on distilled spirits) of domestic fer- 

 mented liquors (beer, etc.). The internal revenue tax on this 

 commodity has been practically uniform since its first authoriza- 

 tion in 1863, namely, one dollar per barrel, holding theoretically 

 thirty-one gallons. The tax was originally assessed and collected 

 on the returns of the brewers, and was largely evaded. After 

 July, 1866, it was successfully enforced through tlfc employment 

 of stamps, one of which, " denoting the amount of the tax," is re- 

 quired to be affixed upon the spigot hole or tap (of which there 

 shall be but one) in such a way that the stamp shall be destroyed 

 upon the withdrawal of the liquor from the barrel or other re- 

 ceptacle. The following table exhibits in detail the experience 

 which has characterized each fiscal year since the inception of this 

 source of revenue in 1863 down to and including 1894 : 



