There are three methods of assessing duty and whichever gives the highest amount is adopted. The first is the "attenuation charge." This consists of levying the charge due on one gal. of proof spirit for every zoo gal. of worts collected and for every five degrees of attenuation observed, the latter being calculated by taking the difference between the highest specific gravity of the worts and the lowest gravity of the wash after complete fer mentation.
The second method is the "low wines" charge calculated upon the bulk quantity at proof strength of the low wines produced by the distillation of the wash. The third is the "feints and spirits" charge, assessed upon the number of proof gallons of feints and spirits produced by the final operations.
All countries exercise control over the spirit trade much in the same manner as does Great Britain. In the U.S., except in that period from 1920 to 1933 when manufacture, transportation or sale of alcoholic beverages was forbidden, the Government has always regulated the production of distilled spirit through actual control of spirit while it was reaching maturity and through ex cise taxes which in 1939 were $2.50 per proof gallon.
In addition, the Federal Government levies a 3o cents per gallon tax on spirit which is rectified (to rectify distilled spirit means to combine whisky with grain neutral spirit).
The several States of the United States also obtain excise taxes of varying amounts per proof gallon on distilled spirit which is sold within their borders. The State Governments have specific control of the method of distribution and sale to consumers but the Federal Government retains control of the distillation and manufacturing processes.
e.g., liqueurs, cordials, etc., £3.15.11; Unsweetened spirits, e.g., liqueurs, cordials, etc., /3.15.5.
There are many modifications of these rates, preferential treat ment being accorded, for instance, to goods of Empire origin, while a reduction is also allowed for spirits which can be proved to be of a certain maturity. The corresponding maximum excise duty is £3.14.0 per proof gallon.
The production of spirit in the United Kingdom amounted in 5907 to roughly 5o,000,00o proof gallons. In the decade 188o-90 the quantity annually distilled remained practically stationary at about 40,000,000 gal., but during the years 1890-1900 there was a rapid increase, the maximum being attained in 1898 when nearly 64,000,00o gal. were produced. A point had then been reached at which the production considerably exceeded the consumption, due in part to the desire of the spirit trade to meet the increased de mand for "matured" spirits and in part to the fact that an exces sive amount of capital had, owing to the increased popularity of Scotch whisky, been attracted to the distilling industry. This over production led to a vast increase in the quantity of spirit remain ing in warehouse. In 1906 production and consumption were about equal and the quantity of spirit in warehouse represented roughly five years' supply.
Of late years the consumption of spirits has shown a marked decline. Whereas in the opening years of the century it reached approximately one gallon per annum per head of the population, in the subsequent decade it fell to 0.75 gallon. This is doubtless due, in part, to the high duties, but in all probability it may be attributed in some measure to a change in popular taste.
The number of distilleries in the British Isles has fluctuated in a manner corresponding to the consumption of spirit, but the variation has been chiefly in Scotland.
In 1906 the respective totals for the three countries were: Scotland 150, Ireland 28, England 8. Since that time there has been a steady decrease, the number for Great Britain and Northern Ireland being 140 in 1923 and 121 in 1926. Of the spirits distilled in the United Kingdom Scotland produces approximately one half, England and Ireland being responsible for the remainder in about equal proportions.