raise up a class of lawless characters—smugglers, illicit distillers, and the like.
The experience of the United States is pregnant with lessons in this direction. During the war we imposed an internal-revenue tax on distilled spirits of so large an amount that it not only produced less revenue than a smaller tax would have done, but it created gigantic frauds, public corruption, and infinite devices to escape the payment. The following table will show how the production, as indicated by the tax, fell off when the tax was excessive. It forced evasions by distillers. It has been found by various experiences that with a less rate the revenue is largely increased.
| Year. | Revenue. | Production indicated by the tax (gallons). | Amount of tax. |
|---|---|---|---|
| 1862-1863 | $3,200,000 | 16,000,000 | July, 1862, 20 c. per gallon. |
| 1867-1868 | 14,200,000 | 7,000,000 | Jan., 1865, $2 per gallon. |
| 1868-1869 | 34,200,000 | 16,000,000 | July, 1868, 50 c. per gallon. |
| 1869-1870 | 39,200,000 | 18,000,000 |
The actual amount reached by taxation is very much less than that known to be actually used by from ten to fifteen millions of gallons, or nearly one half the product. The openness of the frauds can be judged by the fact that proof spirits were “openly sold