6 BULLETIN 182, U. S. DEPARTMENT OF AGRICULTURE. 
lation of 1887 clearly taught the lesson that the future growth of |?! 
the consumption of distilled alcohol as a beverage would not be | 
permitted to keep pace with the actual growth in population. Other | 
outlets for the use of alcohol had to be sought, for the industry was | 
greatly in need of expansion. | 
TAX REFUNDS ON INDUSTRIAL ALCOHOL, 1879 AND 1887. 
The law of 1879 had already empowered the Council of the Rep- i 
resentatives of the German States (Bundesrath) to grant the same | 
refund of taxes on industrial alcohol that was granted to exported | 
spirits. The first statistical data concerning the consumption of |{ 
alcohol for industrial purposes date from this period. During the | 
fiscal year 1880-81, 2,462,111 gallons (9,320,000 liters) were thus | 
consumed. This quantity increased until in 1886-87 it amounted to | 
4,837,044 gallons (18,310,000 liters) ; that is, it had almost doubled in | 
six years. Yet this amount is insignificant when compared with the | 
drop in consumption of 21,134,000 gallons (80,000,000 liters), due | 
to the tax levied on the finished product when disposed of | 
(Abgabesteuer ). 
While the law of 1887 had introduced the heavy tax on the | 
finished product, it also brought absolute relief from taxation of | 
all alcohol for purposes other than as a beverage within the | 
boundaries of Germany. The inconveniences which hampered the — 
free use of the tax-free alcohol granted, in principle by the law of 
1879 were removed, and the completely denatured alcohol became as 
free as any other commercial commodity after 1887. Though the 
price of alcohol consumed for beverage purposes was greatly in- | 
creased through the laws of 1887, the price of that used for technical | 
purposes was lowered. . 
The results are best expressed in figures. As already stated, the | 
quantity of technical or industrial alcohol used in 1886-87 in the | 
States ‘which were included within the whisky-tax union as consti- | 
tuted before 1887, was 4,834,402 gallons (18,300,000 liters). The | 
quantity thus used immediately jumped to 8,215,842 gallons | 
(31,100,000 liters) for this territory, and to 10,223,572 gallons || 
(38,700,000 liters) for the entire German Empire. | 
INCREASE IN TECHNICAL APPLICATIONS OF ALCOHOL. 
After 1887 there was a constant increase in the consumption of 
alcohol for technical purposes. However, an increase in consump- 
tion which would correspond to the demand for expansion was 
attainable only when this alcohol could be produced at a sufii- 
ciently low price. It was soon recognized that the most important 
field in which this consumption could be looked for was in its appli- 
cation to the production of heat, light, and power. Its use for the 
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