THE GREAT VALUE
OF FREE ALCOHOL
The Removal of Revenue Tax
from Alcohol Will
Stimulate Industries.
A measure introduced in
the house of representatives by Mr. Marshall of North Dakota has for
its purpose the removal of the internal revenue tax on alcohol, and
its passage is of vast importance, especially to such agricultural
states as Minnesota. Not only will it benefit the farmer who produces
the raw material from which alcohol is made, but it will contribute
to his further advantage in a cheap and safe motive power for use on
the farm as well as light and heat for his home.
At present alcohol for
beverages and industrial alcohol are subject to a tax of more than $2
a gallon. Industrial alcohol, according to the department of
agriculture, could be sold profitably, were there no tax on it, for
about fifteen cents a gallon and under the increased demand that
would be sure to follow, it is possible it could be sold profitably
for 10 cents a gallon.
The use of Alcohol as an
industrial material figures prominently in the manufacture of nearly
one hundred different articles. These range from articles of
household use and necessity to electrical machinery, ammunition
and firearms.
Take the item of soap,
for instance. Alcohol is used in the manufacture of soap, as a
solvent for clarifying. Transparent soap is made by mixing fat and
soda to form a soap mixture in the usual way. Alcohol is then added
and an emulsion formed by violent agitation, thus bringing the
alcohol into contact with every particle of the soap. The alcohol is
then allowed to evaporate and the now transparent soap is run into
moulds and pressed into the shapes in which it is sold.
The sales of transparent
soap thru-out the world are enormous, the annual sales of one foreign
manufacturer in the United States alone being about 14,400,000 cakes.
Very little is made in this country owing to the fact that the
manufacture is increased over $5 a gross on account of the internal
revenue tax of $2.07 per gallon on alcohol.
What is true of soap is
in a large measure true of smokeless powder. The weight of
alcohol required in making the best smokeless powder is 1.4 times the
weight of the finished powder. The internal revenue on this
alcohol is $2.08 a gallon, making the tax on the quantity necessary
to use in making a pound of the best smokeless powder 37 cents. The
result is that the sportsman must either be satisfied to use an
inferior powder, with the danger of excessive fouling and corroding,
or pay an excessive price for the best.
The government secures
the best powder for the army and navy at the lowest price allowing
the manufacturers to use tax-free alcohol in manufacturing powder for
government account. For all other parties tax paid alcohol must be
used.
The importance of cheap
alcohol is now so well appreciated in Europe that in all of the
leading countries exhibitions to promote its industrial uses are held
annually. In a special report on the exposition held in Berlin,
United States Consul-General F.H. Mason referred to the use of
alcohol for lighting and heating and other domestic purposes as
follows:
"The department of
lighting and heating apparatus includes a vast and varied display of
lamps, chandeliers, street and corridor lights, in which alcohol
vapor burns with an incandescent flame which rivals arc lights in
brilliancy and requires to be shaded to adapt it to the endurance of
the human eye. There has been a great improvement in the lamps and
chandeliers for alcohol lighting, which are up to the best standard
of modern fixtures for gas and electricity, with which alcohol
lighting is now competing with increased success in this country.
"The ordinary shade
lamp for everyday use is made of bronze with white porcelain shade
and costs from $1.50 to $2.50, according to size and design, giving a
light of 30 candles at a cost for alcohol of one-third of one cent an
hour.
"Similarly
attractive and interesting is the large display of alcohol heating
stores, which, for warming corridors, sleeping rooms and certain
other locations are highly esteemed. They are made of Japanned iron
plate in decorative forms with concave copper reflectors, are
portable, and furnish a clean, odorless and convenient heating
apparatus. Cooking stoves of all sizes, forms and capacities, from
the complete range with baking and roasting ovens, broilers, etc., to
the simple tea and coffee lamp, were in display."
Alcohol burns readily
under all conditions without smoking, and is free from disagreeable
odors.
The man who stands in
line for the greatest benefit of free alcohol is the farmer, A
greater demand will be created for the products of the farm, and in
return he will be able to buy a motor fuel at a cost so low that
power will be utilized very liberally in connection with the work on
the farm.
The rapid growth in the
demand for liquid fuels has more than doubled the past five years,
and the fuel bill for a five-horse-power engine, ten hours a day, has
increased from $100 to $150 a year. With gasoline as the only
available motor fuel its cost must advance with the steady increase
in the number of engines used, since the supply is limited, and
cannot be increased in proportion to the growing demand for it.
It has been estimated
that making alcohol available as fuel by removing the tax would
double the power uses in this country. This would mean an aggregate
increase of engines of over ten million horse-power, and if these
were employed one-third of the time an addition to the working force
of the country of a thousand million horse-power hours. At one tenth
of a gallon per horsepower this would require the annual consumption
of one hundred million gallons of alcohol.
The farmer has interest
in alcohol and the movement for the removal of the tax for another
reason: He is the producer of the raw material from which it is
distilled. Corn is the principal raw material in the country from
which alcohol is made. It can also be made from other materials, such
as potatoes, beets, unmarketable fruits, damaged grain, etc. A large
industrial consumption of alcohol would guarantee a sure market for
surplus and otherwise unsalable crops. Furthermore, the nature of the
fluid permits of its being kept for years if necessary, hence when a
large crop is raised which tended to create a surplus and depress
prices, the surplus could be easily converted into alcohol and stored
to prevent any marked reduction in prices in case of failure from
short crops the following year.
Based upon figures
furnished by the department of agriculture at Washington, D.C., the
humble corn-stalk of the crop raised in Iowa the past season would
produce 1,500,000 gallons of alcohol. In a recent letter to a friend
bearing on this subject, Secretary Wilson said:
"During the past
twenty-five years experiments have been frequently made in this
country which show that the cornstalk at the time when the grain is
hardening contains from 12 to 15 per cent of sugars and other
fermentable matters. If these sugars could be fermented at this time,
it is easy to see that they would produce an amount of alcohol far in
excess of all that is used in the world for technical purposes and
beverages.
"It is evident that
as natural gas, oil and coal become, scarcer, some other source must
be found for fuel and light. It seems probable from a careful study
of all the conditions of agriculture that alcohol is destined to be
the fuel of the future. It is part of wisdom, therefore, in those
connected with the agricultural interests of the country to exploit
as far as possible all the various sources of supply. In this country
the stalk of Indian corn, the yam and the sweet and Irish potato are
promising sources of alcohol in the future."
[Warren Sheaf, Warren,
Marshall County, Minnesota, March 08, 1906. Volume 26. Number 13. Pg.
5]
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