Under the revenue laws of the United States when alcoholic spirits are distilled to make any kind of a product the manufacturer has the option either of paying a tax immediately or of storing the product in a bonded warehouse under the supervision of the United States until the article is sold, at which time the tax must be paid. When distilled spirits are put into a United States bonded warehouse they may remain not longer than 8 years, at the end of which time the tax must be paid, inasmuch as it is the common opinion, based upon reliable data and accurate observation, that distilled spirits which have in them the materials capable of developing into a palatable beverage improve in quality on storage in wood. While the rate of maturity varies according to temperature and whether or not the wooden containers are charred, and with the alcoholic strength of the distillate, there is a common agreement on the fact that in general a period of at least four years is necessary to make a really palatable and potable drink out of distilled spirits.

When the rectifying industry was thoroughly established in the country and doing practically all the business of manufacturing potable distilled spirits, it was found that there was great waste both of interest on the investment and also of leakage from the barrel in the storage of distilled spirits for any considerable length of time. The practice grew rapidly of making a perfectly neutral distillate which had only the character of ethyl alcohol, and which would lend itself upon reduction to proper proof to take in all colors and flavors necessary to imitate the old matured-in-the-wood beverage. Thus, by taking caramel, flavoring ethers, acids and extracts, and neutral spirits and water, a beverage could be manufactured in a few minutes which would have all the appearance of age and many of its characters, due to the added flavoring substances. It became increasingly difficult, for this reason, for anyone to be certain of getting an old matured beverage, whether it be whisky, brandy or rum.

In order to protect the consumer in this respect Congress passed what is known as the Bottling in Bond Act. The Bottling in Bond Act was signed by President Cleveland on March 3, 1897, his last official day in the White House. I do not know how he could have done a more salutary thing as his valedictory. The report of the committee favoring the passage of this measure through Congress said:

The obvious purpose of the measure is to allow the bottling of spirits under such circumstances and supervision as will give assurance to all purchasers of the purity of the article purchased, and the machinery devised for accomplishing this makes it apparent that this object will certainly be accomplished.

The interests of the Government and the revenue are carefully guarded, so that there will be no expense or loss to either.

The passage of the bill will enable American producers to supply a very large home and foreign demand which is now supplied, greatly to the injury of the home manufacturer, by Canadian producers, so that persons who desire to purchase bottled goods under a stamp must get the Canadian instead of the American article, and instead of having the option to obtain either.

We are not permitted to export to Canada in packages of less than 100 imperial gallons (equal to 120 of our gallons), while we permit the importation of bottled Canadian spirits, thus putting our manufacturers at a great disadvantage, especially as the bottled spirits thus imported are supposed to be guaranteed by the Government label and stamp placed thereon under a law somewhat similar to the pending measure.

It is believed that the enactment of the bill will give our home producers a large market for their goods which is now given to Canadian or other foreign spirits.

These considerations lead the committee to recommend the passage of the bill.

By the provisions of this act spirits cannot be bottled in bond until they have remained in wood at least four years, with this exception, that if the spirits are distilled in the autumn of any one year they may be bottled in the spring immediately preceding the four years of age. So it is possible that bottled in bond spirits may be not more than three years and a half old. The law prohibits the addition or subtraction of any substance or material or the application of any method or process to alter or change in any way the original condition or character of the product, except the reduction to proof with water. The transfer of this unmanipulated article from the barrels where it has been in the bonded warehouse for about four years into bottles is made under the most rigid government inspection, conducted under the custody and supervision of a detailed government official. The regulations provide that:

No material nor substance of any kind other than pure water can be added during the process of bottling or the preparation of the spirits for bottling, nor can any substance or material be subtracted, nor can any method or process be applied to alter or change in any way the original conditions or character of the product, except as authorized by the statute. The storekeeper or gauger will not, therefore, admit to the bottling house any material or substance capable of being incorporated with the spirits except pure water only.

The law also requires that the packages which contain bottled in bond spirits be of definite content and that the alcoholic strength of the spirit must not be less than 50 percent by volume. The green stamp over the cork which is used also gives the name of the distiller, the location of the distillery, the quantity of spirits in the bottle, and that it is at least 100° proof, that is, containing 50 percent by volume of alcohol. There is nothing mandatory in the Bottling in Bond Act. It does not require the distiller to bottle his spirits in bond unless he so elects, but if he does elect to bottle his spirits in bond he can send them out from his distillery in bottles of various sizes, less than a gallon in quantity, guaranteed by the United States itself as to purity, strength, volume, age and character. The security which the consumer gets by this Act has caused a continually increased sale of spirits bottled in bond. The data, as taken from the records of the Commissioner of Internal Revenue, show that the amount of whisky bottled in bond during the fiscal year ended June 30, 1915, was 9,741,639.2 gallons. The amount of rum bottled in bond was 6,745.6 gallons, and the amount of gin bottled in bond was 594.1 gallons.

During the year ended June 30, 1916, the data are as follows:

The quantity of whisky bottled in bond for the year ended June 30, 1917, was 16,495,203.7 gallons.

These data show an increasing amount of bottled in bond spirits entering consumption. This indicates a growing confidence on the part of the consumer in the little green stamp.

Only one rum distillery, viz., in the third Massachusetts collection district bottles its products in bond. For 1917 this quantity amounted to 17,019.7 gallons.