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G. (Gallus) Thomann.

Liquor laws of the United States; their spirit and effect

. (page 10 of 23)

])ression on the insurgents. The result was that, vt^hen the
Committee of Public Safety met at Red Stone Old Fort, to
discuss the stipulations of the ultmiatuTn^ a party of armed
rioters, displaying a menacing front, entered the town, and so
intimidated those who were disposed to submit, that Gallatin,
justly fearing the miscarriage of his good intentions, thought
it wise to move an adjournment till the next day. In spite of
Bradford's opposition, he succeeded in this as well as in his
and his friends' efforts to induce the armed party to return to
their homes.

When the Committee of Public Safety re-assembled on the
next day, Bradford in opposing Gallatin's arguments in favor
of submission, openly declared his conviction that the insur-
gents only wanted fire-arms to enable them to defeat the mili-
tia, and establish an independent state. His harangue filled the
minds of the submissive with grave apprehensions as to the
prevalence of such treasonable ideas, and a feeling of distrust
naturally rendered the wary still njore cautions.

A viva voce vote on the proposed terms seemed too hazard-
ous, and a vote by ballot was accordingly determined upon. It
resulted in a majority of eleven votes for submission, out of a
total of lifty-seven.

Thus far the Committee of Safety proceeded, and no fur-
ther ; the principal part of the stij)ulations they had not the
courage to comply with. They, however, appointed a sub-
committee of nine, to test the sense of the people and obtain
individual pledges of submission.

On the first of September this sub-committee, meeting the
two commissions, asked for delay until the 10th of October —



104 LIQUOR LAWS OF THE UNITED STATES.

a proposal which was peremptorily rejected, the original terms
being earnestly insisted upon by the Commissioners. On the
following day the conf A-ees acceded to the proposition of tak-
ing the sense of the people and rendering a return of tlie votes
on the 16th of September. While in a few localities the out-
come of this arrangement gave promise of a subsidence of the
revolutionary disposition, in others, and by far the majority
of them, a direct expression of sentiments was either entirely
avoided or assumed a most threatening character. In some
cases a discussion of the proposed tei*ms was forbidden under
threat of burning the houses of the loyal dissenters ; in others
the declarations of submission were torn and trampled upon,
and again in others resolutions of defiance took the place of
the proposed vote. So violent was the spirit manifested by
the obdurate rioters, that in some of the disaffected parts those
who signified their submission felt constrained to form asso-
ciations for common protection. To the latter the interven-
tion of the militia seemed quite as requisite for their personal
safety as for the vindication of the authority of government.
Under such circumstances the Commissioners could not but
conclude that their mission of peace had completely failed,
and that force of arms must be resorted to. On their way home
the two State Commissioners, Judges McKean and Yates, had
further opportunities of tesfing the correctness of this conclu-
sion. At Greensburg, in Westmoreland County, the house in
which they lodged was attacked by a mob, who were only pre-
vented from forcibly gaining access by a well-directed f usilade.
At Carlisle, where the judges administered justice in the cases
of a number of persons who, late in August, had made sedi-
tious attempts to frustrate the enrolment of the militia, they
narrowly escaped capture by a mob of two hundred rioters.
Arriving in town after the departure of the Commissioners, the
insurgents burnt the judges in effigy. A riot in the neighbor-
hood of Hagerstown was quickly suppressed by a detachment



CHAPTER IV.



105



of cavalry. Upon receiving the Commissioners' report, Wash-
ington, on the 24th day of September, issued his third proclama-
tion, commanding submission to the law and admonishing the
law-breakers of the consequences of their revolt. At the same
time the preliminaries for an advance upon the rebel districts
were perfected. The call for the militia had brought out a much
larger body of soldiers than the requisitions demanded. The
troops of Maryland and Yirginia, led respectively by Morgan
and Smith, rendezvoused at Cumberland ; those of New Jersey
and Pennsylvania, under command of the governors of their
States [Howell and Mifflin], at Carlisle. Forming respectively
the left and right wings of the army, the former marched
across the mountains by Braddock's road, the latter by the
northern or Pennsylvania road. The fact that a large part of
the troops was composed of volunteers, served materially to
change the aspect of things, since it proved that whatever the
designs and desires of the secret societies may have been,
they had not succeeded in bringing about the calamities pre-
dicted by Eandolph and others.*

On the 30th of September, Washington, accompanied by
Hamilton, proceeded to Carlisle, where he reviewed the troops
and was received with unusual enthusiasm by the citizens,
whom he addressed on the dangers of the situation. While
there he was called upon by Findley and Eeddick who, as the
delegates of a convention of citizens held at Parkison's Ferry,
on the 2d of October, submitted to him resolutions of submission,
and endeavored to dissuade him from a continuance of military

* Mifflin's lukewarmness suddenly changed into an almost suspicious
eagerness to aid the government, when the Legislature of his State, con-
vened in special session, denounced the insurgents, and, to obviate difficul-
ties said to have arisen in drafting the militia, authorized the enlistment of
volunteers, at the same time authorizing the offer of a bounty, if needed.
Upon this Mifflin made a tour of the most populous counties of the State to
raise volunteers displaying a degree of zeal truly astounding in the light
of his former attitude.



106 LIQUOR LAWS OF THE UNITED STATES.

operations. This conveiition marks the beginning of the dis-
solution of the rebellious movement ; it was called after Brad-
ford and other equally violent leaders, as cowardly as they
were treacherous and disloyal, had fled from the counties, and
when the rapid approach of two powerful columns of loyal
soldiers, the determined attitude of the Administration and the
enthusiasm of a vast majority of the population, had destroyed
the last hope of the insurgents. From Hamilton's version of
Findley's interview with the President it would seem, that
doubts were entertained as to whether the resolutions of sub-
mission represented the sentiments of the mass of insurgents ;
at all events, Washington, though he treated Findley and Red-
dick courteously, did not allow himself to be moved from his
purpose. Findley, who like Gallatin had but a short time
before been elected to Congress, essayed in various ways to
impress the President with his popular influence and his ability
to make good his promises, and failing in this, he went so far as
to offer his services in capturing offenders. N^o wonder that his
importunate conduct aroused suspicion. lie was finally told
that the advance of the troops would not be interrupted, un-
less more trustworthy evidences of submission were offered.
He and Reddick thereupon returned to their homes, intending
to procure the required evidences.

At a third meeting held at Parkison's Ferry, on the 24th
of October, and of which Gallatin again acted as secretary,
resolutions were passed fully in accord with, and in some
points even exceeding, the terms proposed by the joint com-
mission, before the movement of the troops. It was declared
that '' the civil authority was competent to enforce laws and
to punish both past and present offences, as the people were
determined to support every description of civil officers in the
discharge of their duty ; and that the offices of inspection
might immediately be opened." Summoning all delinquents,
who had not secured impunity by timely submission, to sur-



CHAPTER rv. 107

render for trial, the delegates to the meeting further pledged
themselves " to unite in giving assistance to bring to justice
such offenders as shall not surrender." When Findley and his
brother delegates, Ecddick, Douglass and Morgan, empowered
to present these resolutions, reached Uniontown, in Fayette
county, where a junction of the two wings of the army had
been effected, Washington had already returned to Phila-
delphia, after having again reviewed the troops — the Virginia
and Maryland militia at Cumberland, the Pennsylvania and
New Jersey quota at Bedford. Governor Lee was now in chief
command of the troops, and Hamilton represented the President
on the held of action. Both received the delegates of the Park-
ison's Ferry convention courteously, and Lee issued a friendly
address to the people, in reply to pacific assurances, urging
the well-disposed to persevere in their laudable course. How-
ever o-ratifying these symptoms of a re-awakened sense of duty
may have been, they could not bring the advancing columns
to a halt. According to the admission of one of Findley 's
colleagues, there were still many " young headstrong boys who
had got arms in their hands, unwilling to give assurance of
submission," and that they probably would remain recalcitrant
" until convinced the army was approaching," Accordingly,
Governor Lee marched further into the disaffected survey,
reaching Parkison's Ferry, on the 8th of November, without
having encountered armed opjposition at any stage of his
aggressive movement. Forsaken by those leaders who had
urged them to take up arms, the misguided rioters fled to their
homes at the approach of the army — and thus order and peace
were re-established, ere a blow had been struck. On the day of
his arrival at Parkison's Ferry, Lee issued a proclamation
granting the amnesty previously offered to those who had
accepted the terms of the peace commissions, and calling upon
the people to take the oath of allegiance to the United States,
which was m the form of tlie pledge exacted by the ultimatum^



108 LIQUOR LAWS OF THE UNITED STATES.

being a solemn promise, henceforth to submit to the laws of
the United States; to abstain from directly or indirectly oppos-
ing the execution of the act for raising a revenue on distilled
spirits and stills ; to support the civil authorities, and to afford
protection to all officers and other citizens. Under instruc-
tions from Governor Lee, a number of arrests were then made
in the four counties, the prisoners being turned over to the
civil authorities for trial. After a few days, tranquility hav-
ing been entirely restored, the troops, excepting a corps of
observation ot 250C men under Morgan, were sent to their
homes, and thus the Whiskey Insurrection ended.



CHAPTER Y.

PERFECTING THE REVENUE SERVICE ; NUMBER AND COMPENSATION

OF OFFICERS. LICENSES TO RETAILERS OF SPIRITS AND WINES.

MODIFICATIONS OF THE EXCISE LAW IN FAVOR OF COUNTRY

DISTILLERS. REPEAL OF INTERNAL DUTIES ; ITS CAUSES.

EFFECTS OF THE VARIOUS LAWS ON THE INTERNAL TAXATION
OF DISTILLED SPIRITS. COMPARATIVE TABLE SHOWING PRO-
DUCTION, IMPORTS, EXPORTS AND CONSUMPTION OF SPIRITS
DURING THE OPERATION OF THE EXCISE LAW, AND AFTER FTS
REPEAL, UP TO 1810. EFFECT OF IMPORT DUTIES UPON FER-
MENTED LIQUORS. STATE OF VINE-CULTURE. THE BREWING

INDUSTRY IN 1810; DIFFICULTIES RETARDING ITS PROGRESS.

It remains to be stated that before the bloodless suppres-
sion of the Whiskey Insurrection had been effected, a number
of circumstances, other than the popular prejudice, and the
timidity and reluctance of excise-officers, conspired to render
the collection of taxes extremely difficult, even in States where
tlie Federal administration generally iopnd hearty support.
Prominent among these were: the inevitable imperfections of
the system, growing out of the experimental character of the
institution ; the insufficiency of the number of officers, and the
want of adequate compensation for excise-services. When
Congress, intent upon avoiding the imposition of direct taxes,*
by the Act of June 5, 1794, still further extended the system
of internal taxation, by imposing duties upon carriages for the
conveyance of persons, upon auction sales, snuff and snuff-
mills, refined sugar, and upon the retailing of wine and foreign

* In 1794, the special committee on public credit recommended the rais-
ing of $750,000 by direct taxation— a recommendation wliicli was promptly
rejected.



110 LIQUOR LAWS OF THE UNITED STATES.

spirituous liquors, it became absolutely necessary to adopt
measures calculated to remove the difficulties before mentioned;
and this was accomplished by an act, approved June 5, 1794,
making further provisions for the collecting of duties on foreign
and domestic distilled spirits, wines and teas. This act author-
ized the President to establish new districts and surveys, make
such alterations in, and additions to, those already existing, and
appoint as many additional officers as to him appeared expe-
dient and necessary. By virtue of this law the President, un-
der date of April 9th, 1Y95, re-organized and perfected the
revenue-establishment by forming new, and altering old, sur-
veys ; by appointing additional officers and increasing their
compensation. The annual salaries of supervisors, of whom
there still was one in each State and Territory, were fixed at
from five hundred to thirteen hundred and fifty dollars ; in
addition to which sums, these officers were allowed a commis-
sion at a certain per cent, of the gross revenue in their several
districts, and a fee for certain duties connected with their offi-
ces. Inspectors were allowed an annual salary of from four
hundred and fifty to five hundred dollars in addition to certain
commissions and fees ; while the compensation of collectors
consisted entirely of such commissions and fees.* The entire
service, in 1796, consisted of sixteen supervisors,t twenty-two
inspectors of surveys, two hundred and thirty-six collectors,
and sixty-three auxiliary officers; the total compensation
amounted to a little less than seventy-eight thousand dollars.

After the re-organization of the service the collection of
internal taxes went on smoothly, ij: The tax imposed upon the



* Subsequently an increase of compensation became necessary, and was
again effected.

f Vermont bad been admitted, and Obio and Tennessee, constituted as
territories, were given one supervisor eacb.

jj. Tbe tax upon conveyances was assailed on tbe ground of inconstitu-
tionality, but by tbe decision of tbe Supreme Court in tbe case of Hylton vs.
tbe United States (3 Dall., 171), was declared constitutional.



CHAPTER V. Ill

retailing of wines and si3iritnous liquors was in the form of a
yearly license of five dollars, issued by the supervisors of reve-
nue to retail merchants, *'. 6. to every person engaged in selling
wine and foreign spirits (to be sent out of his place of busi-
ness), in a less quantity, at one time, than thirty gallons of the
former, and twenty gallons of the latter liquid. The law did
not apply to keepers of taverns, inns, or places of entertain-
ment, licensed and authorized under the law of a State.

Before considering the effect of internal and import taxes
upon the domestic manufacture of distilled and fermented
liquors, mention must be made of a number of laws, enacted
subsequent to the organization of the revenue service. They
were generally in favor of the so-called country distillers. To
them the mode prescribed for entering stills, and the manner of
paying taxes, were sources of some inconvenience and loss. In
cases, for example, where the owners of stills were liable, by
their entries, to pay the duty of fifty-four cents upon the
capacity of the stills, it frequently happened that the destruc-
tion or failure of crops, whether of grain or fruit, either pre-
vented distillation entirely, or considerably reduced the quan-
tity intended to be distilled, at the time the entries were
made. Special relief was provided in these cases by an act
approved June 1, 1796. By an act approved March 3, 1797,
owners of country stills, that is to say, of stills operated in
places other than a city, town or village, and of a capacity of
less than four hundred gallons, were given the privilege to pay
the following licenses, in place of the former taxes, viz :

For a license for the employment of every still during the
term of two weeks, six cents per gallon, according to the
capacity or contents of every such still ; for a license for a
term of one month, ten cents per gallon ; for three months,
twenty-four cents per gallon ; for four months, thirty cents
per gallon ; for five months, thirty-six cents per gallon, and for
six months, forty-two cents per gallon.



112 LIQUOR LAWS OF THE UNITED STATES.

Not yet satisfied with these modifications of the law in their
favor, a certain class of conntry distillers sought to obtain a
further concession in the form of weekly licenses, and, accord-
ingly, in the second session of the fifth Congress, a recommend-
ation to that effect was made by the House Committee of
Ways and Means. Southern farmers, who mostly distilled fruit,
— principally peaches — were to be benefited by this arrange-
ment. It was contended that the preceding law, which fixed
the minimum duration of a license at two weeks, leaving un-
changed the requirement of entering stills at stated times,
excluded four out of five of the owners of orchards in the
Southern States from distilling their early fruit at all ; that
peaches ripened and rotted hastily ; and that persons who had
not enough fruit to employ their stills more than three or four
days, would sufier their fruit to rot, rather than take a license
for a fortnight. The obligation, under the existing law, of
taking out separate licenses for distilling the fruit harvested at
three different periods of the year, was represented as another
hardship, involving expense and loss of time in going to and
from the excise offices, which latter in many cases were situated
at considerable distances from the homes of distilling farmers.
The annual entry of stills, prescribed by law in all cases, whe-
ther or not the owners intended to work them, was also com-
plained of, and led to the proposition that stills once entered
should not require a renewal of entry, save when their owners
intended to work them. None of these proposed alterations
had the approval of Walcott (Hamilton's successor), and were
consequently rejected. The only further concession made to
country distillers was the act of January 29th, 1798, which
provided " that it shall be lawful for all owners of stills which
shall have been duly entered according to law, to make their
election, at any time of the year, both as to the rate of duty
which they may choose to pay for the employment of their
said stills, whether for a year or such other shorter period, as



CHAPTER V. 113

may be allowed by law ; and also as to the time of commencing
such eniploynient."

The laM^s on the internal taxation of distilled spirits
remained in this state to tlie date of their revocation, in 1802 ;
while the rate of imposts on distilled and fermented liquors,
excepting certain wines imported into the United States, were
not changed until the war of 1812, although the exigencies of
part of Adams' administration (1797-1801), joroduced by the
disquieting aspect of foreign affairs, led to the development of
new sources of revenue — among them one still less popular
than excises, viz : direct taxation.* As it is intended to bring
under consideration, in this chapter, the general results of the
external and internal taxation of liquors during the last decade
of the past, and the first decade of the present century, it
seems appropriate, in order to preserve the chronological order
of events, briefly to narrate under what circumstances the
excise law was repealed.

The origin of the opposition to the Federalist administra-
tion dates back, as has been seen, to Hamilton's fiscal system,
beginning with the assumption of the State debts, and grow-
ing stronger under every subsequent measure of taxation —
from the imposition of excise duties to the system of direct
taxation introduced under Wolcott's administration of the
Treasury Department. Other causes arose, it is true, to solid-
ify and strengthen the opposition, but the fiscal questions
remained landmarks of party division throughout Washing-
ton's and Adams' administrations, and formed an essential part
of the credo to which Jefferson owed his accession to the pre-
sidential chair. Under these circumstances it was but natural



* For augmenting the army and perfecting coast defences tlie act of
July 14, 1798, imposed a direct tax of $3,000,000 on houses, lands and slaves.
Singularly enough this law also met with open resistance in Pennsylvania ;
in this case however, the riot — dignified in history with the appellation of
the Pries Insurrection — was quelled almost before it was begun.



114 LIQUOR LAWS OF THE UIOTED STATES.

that the Democrats (pre\nously called the Republicans) should,
on assuming control of the government, hasten to abolish tlie
systems they had so vigorously and ably assailed. The aus-
picious state of affairs under which they came into power *
necessarily confirmed their resolution and accelerated their
action. On the 30th of December, 1801, twelve days after
Jefferson had, in his inaugural address, recommended the
abolition of all internal taxes, the House Committee of Ways
and Means were instructed to inquire into the expediency of
repealing duties on stills and distilled spirits, and other internal
duties. In their report, submitted March 8,1802, the commit-
tee, after dwelling upon the difficulty and expense of collecting
the tax on twenty-two thousand country stills, scattered over
an immense, but thinly settled territory ; and recounting the
popular objections to excises, viz : the oppressive and vexatious
character of the taxes, their hostility to the genius of a free
people and their tendency to multiply offices, recommended the
revocation of the laws relating to internal duties. In the dis-
cussion which attended the resolution calling for an inquiry
into the expediency of abolishing these taxes, the expense of
collection formed the principal source of acrimonious wrang-
lings, and led to some very inaccurate statements on the part
of the supporters of the new administration. The truth is,
that, compared with the cost of collecting imposts and tonnage
duties, the expense of securing excise taxes seemed dispropor-
tionately large. The reasons are too obvious to require more
than passing notice. The amount ofinternal taxes, imposed upon
but a few articles, was comparatively small ; the objects taxed
were widely dispersed over the entire Union ; and the tax-payers



* Hildretli writes of this period : " The treasury was fuller, the reve-
nue more abundant than at any previous period. Commerce was flourishing,
and the pecuniary prosperity of the country was very great. All the res-
ponsibility of framing institutions, laying taxes, and providing for debts,
had fallen on the ousted administration." (Vol. iv., p. 419.)



CHAPTER V. 115

were not inclined to aid the collectors. In proportion as the
amount ot" taxes increased and the opposition to excises sub-
sided, the cost of collection decreased. Thus in 1795, when th6
internal revenues from all sources amounted to but $528,481
the cost of collection was twenty-five per cent. ; while in 1801,
the total revenue being double the former amount, the expense
of collection only amounted to twelve per cent. The difi*er-
ence between the cost of collecting the taxes on distilled spir-
its in the country, and in cities, towns or villages, amounted to
almost fifty per cent., a fact which in itself sufficiently explains
the causes of the expensiveness of internal taxes at the time
in question. An attempt on the part of the minority, to have
only the taxes on country stills revoked, leaving the excise on
spirits distilled in towns and villages intact, proved abortive,
and the entire system was finally abolished. The question of
temperance was remotely hinted at, but failed to receive any
consideration whatever.

As to the efi*ect, upon the respective manufactures, of
internal and external taxes upon distilled, and import duties
upon fermented liquors, during the four years from 1791 to
1795, it goes without saying, that no reliable conclusions can


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