vinegar; and, lastly, a fourth tax of elevenpence upon the gallon of mead or metheglin: the produce of those different taxes will probably much more than counterbalance that of the duties imposed by what is called the annual malt tax upon cyder and mum.
Malt is consumed not only in the brewery of beer and ale, but in the manufacture of wines and spirits. If the malt tax were to be raised to eighteen shillings upon the quarter, it might be necessary to make some abatement in the different excises which are imposed upon those particular sorts of low wines and spirits of which malt makes any part of the materials. In what are called malt spirits it makes commonly but a third part of the materials, the other two-thirds being either raw barley, or one-third barley and one-third wheat. In the distillery of malt spirits, both the opportunity and the temptation to smuggle are much greater than either in a brewery or in a malt- house; the opportunity on account of the smaller bulk and greater value of the commodity, and the temptation on account of the superior height of the duties, which amount to 3s. 10 2/3d.* upon the gallon of spirits. By increasing the duties upon malt, and reducing those upon the distillery, both the opportunities and the temptation to smuggle would be diminished, which might occasion a still further augmentation of revenue. * Though the duties directly imposed upon proof spirits amount only to 2s. 6d. per gallon, these added to the duties upon the low wines, from which they are distilled, amount to 3s. 10 2/3d. Both low wines and proof spirits are, to prevent frauds, now rated according to what they gauge in the wash.
# s. d.
In 1772, the old malt-tax produced 722,023 11 11 The additional 356,776 7 9 3/4 In 1773, the old tax produced 561,627 3 7 1/2 The additional 278,650 15 3 3/4 In 1774, the old tax produced 624,614 17 5 3/4 The additional 310,745 2 8 1/2 In 1775, the old tax produced 657,357 0 8 1/4 The additional 323,785 12 6 1/4 ------------------------- 4)3,835,580 12 0 3/4 --------------------------- Average of these four years 958,895 3 0 3/16 --------------------------- In 1772, the country excise produced 1,243,128 5 3 The London brewery 408,260 7 2 3/4 In 1773, the country excise 1,245,808 3 3 The London brewery 405,406 17 10 1/2 In 1774, the country excise 1,246,373 14 5 1/2 The London brewery 320,601 18 0 1/4 In 1775, the country excise 1,214,583 6 1 The London brewery 463,670 7 0 1/4 --------------------------- 4)6,547,832 19 2 1/4 --------------------------- Average of these four year 1,636,958 4 9 1/2 To which adding the average malt-tax, or 958,895 3 0 3/16 The whole amount of those different taxes comes out to be 2,595,853 7 9 11/19 --------------------------- But by tripling the malt-tax, or by raising it from six to eighteen shillings upon the quarter of malt, that single tax would produce 2,876,685 9 0 9/16 A sum which exceeds the foregoing by 280,832 1 2 14/16
It has for some time past been the policy of Great Britain to discourage the consumption of spirituous liquors, on account of their supposed tendency to ruin the health and to corrupt the morals of the common people. According to this policy, the abatement of the taxes upon the distillery ought not to be so great as to reduce, in any respect, the price of those liquors. Spirituous liquors might remain as dear as ever, while at the same time the wholesome and invigorating liquors of beer and ale might be considerably reduced in their price. The people might thus be in part relieved from one of the burdens of which they at present complain the most, while at the same time the revenue might be considerably augmented.
The objections of Dr. Davenant to this alteration in the present system of excise duties seem to be without foundation. Those objections are, that the tax, instead of dividing itself as at present pretty equally upon the profit of the maltster, upon that of the brewer, and upon that of the retailer, would, so far as it affected profit, fall altogether upon that of the maltster; that the maltster could not so easily get back the amount of the tax in the advanced price of his malt as the brewer and retailer in the advanced price of their liquor; and that so heavy a tax upon malt might reduce the rent and profit of barley land.
No tax can ever reduce, for any considerable time, the rate of profit in any particular trade which must always keep its level with other trades in the neighbourhood. The present duties upon malt, beer, and ale do not affect the profits of the dealers in those commodities, who all get back the tax with an additional profit in the enhanced price of their goods. A tax, indeed, may render the goods upon which it is imposed so dear as to diminish the consumption of them. But the consumption of malt is in malt liquors, and a tax of eighteen shillings upon the quarter of malt could not well render those liquors dearer than the different taxes, amounting to twenty-four or twenty-five shillings, do at present. Those liquors, on the
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