and sent a commission to Europe to investigate the systems of beer and malt taxation, which obtained in the various European countries. It is safe to say that the beer tax is the cheapest to collect among all the taxes imposed by the United States Government, and there are no attempts to evade it!

A STUDY OF THE BEER SALES

It is generally conceded that the beer business is an industrial barometer, and from this standpoint a study of the beer sales for the fiscal year running from July 1, 1913, to June 30, 1914, inclusive, is most enlightening. For the first six months of this period (July to December, 1913) the beer sales increased 5% over the same period in 1912. During the next six months, however (January to June, 1914), the beer sales decreased approximately 21%. In this connection it should be recalled that the commercial atmosphere of the United States was disturbed by the inevitable changes brought about in the adjustment of business to the new tariff schedule; by the financial hesitancy which was caused by the discussion and passage of the national banking bill; by the re-adjustment of large commercial corporations under the operation of the Sherman Anti-Trust Law; and by the action of the railroads in stopping new construction work and holding up improvements pending the disposition of their appeal to the Inter-State Commerce Commission for an increase in the freight rates. In addition to these factors, the Balkan War and the Mexican War affected the financial markets of the world, and their reflex influence was, of course, felt in the financial centres in this country; though all of these depressing conditions did not apparently manifest themselves in the beer business until the beginning of 1914. Considering the very great depreciation in other branches of commerce during the period indicated, it is remarkable that the beer sales should have kept up so well; especially when we recall that the general business depression was most marked in the industries that employ large numbers of men. With the outbreak of the European War, however, the situation changed immediately, and the beer sales during July, August and September fell off over 10% as compared with the same period in 1913. In spite of the fact that immigration has almost ceased, we hope and believe that the beer sales will recover rapidly as soon as the commerce of the country rebounds, and our mines and factories are again working on full time.

A TEN-YEARS' COMPARISON

The gain in the beer sales during the past ten years appears on the surface to be somewhat perplexing in view of business depression and the prohibition movement. It is due, in the first place, to the increasing popularity of beer as a family table beverage. Bottled beers are now being advertised more thoroughly and intelligently than ever before, and their present selling price puts them within reach of people of very moderate means. Of course, beer is consumed mostly in the cities and towns and the adjoining suburban territory. The freight cost and the loss on the unreturned empties makes the shipment of bottled beer to individuals too expensive, at a distance of more than about fifty miles. Beer can be shipped in barrels in carload lots to a distribution point in a rural state where a refrigeration storage plant is maintained by the shipping brewers, and re-layed from there in single case lots to local points and to individuals. Under the operation of a prohibitory law, however, whether due to state-wide prohibition or local option, the distributing depot is closed down, and the trade is diverted to the mail order liquor dealer, who deals in a concentrated article on which the transportation and packing charges are easily absorbed in the selling price.

When it is considered that over three-quarters of all the beer brewed in the United States is consumed by the adult urban people, it is evident that beer is becoming more and more the popular beverage in all the centres of population. The per capita consumption of beer in the United States is still, apparently, much less than it is in Northern Europe, but it should be remembered that every hamlet in Germany, England and Belgium is within easy reach of a nearby city or town where there is a local brewery, so that the cost of transportation is not a serious item of expense, and every family is a potential customer. Moreover, it must be remembered that in the European countries where the sentiment for temperance is most advanced, direct encouragement is given to the sale of light beers. In the Scandinavian countries light beers are almost taxfree, while France and Belgium encourage the sale of beer by exempting beer shops from anything more than a nominal license fee. The whole trend of enlightened statesmanship in European countries is towards the rigid regulation of the sale of spirits, which are sold under special restrictions, and are subject to a special license fee. On the other hand, the mild beverages are lightly taxed, or else

are entirely tax-free, and may be sold almost as freely as groceries or other articles of food. This movement is especially significant in view of the fact that it has not been aided in any way by trade interests; in fact the influence of the trade has, if anything, been against it. The movement has come from the outside, just as it must, and will come in this country, if any progress along this line is to be of lasting value. It must be the expression of a general and well-informed public sentiment, or it will be of no avail.

THE TREND OF THE MOVEMENT

Recent elections indicate that in the poorly policed rural districts in a number of states there is a strong sentiment against the village saloon as it is now being conducted. It is evident that this question must be studied thoughtfully, with careful regard for the wishes of the people of the locality, and that any objectionable features must be done away with completely if the village saloon is to be continued.

In some of the Southern States, even in prohibition territory, provision is now made for the licensing of establishments where light beers may be sold. In this connection it should be noted that England only imposes a revenue tax on malted beverages which contain over 2% of alcohol; whereas, in the United States no malt liquors are tax-free which contain as much as one-half of one per cent. of alcohol. The consequence is that the two per cent. beers cannot be labeled as temperance beers, or non-alcoholic beers, under the Federal Food and Drugs Act. The Southern prohibition States would, we believe, be willing to sanction the sale of light alcoholic beverages, in specially licensed places.

THE NATIONAL PROHIBITION MOVEMENT

The Hobson Bill to provide by constitutional amendment for the national prohibition of the manufacture and sale of all alcoholic beverages, has died in committee. But it is evident that the prohibitionists will make an effort to revive it at the next session of Congress. (In fact, they tried to make it an issue in the Congressional elections.) In view of its national importance, the United States Brewers' Association is conducting a very thorough investigation to show what the displacement cost of National Prohibition would be, from the standpoint of revenues to the Federal

Government, and to State Governments and municipalities, together with the capital and labor which are involved, and the direct relation of our industry to the commerce and agriculture of the country, and to transportation interests. The complete report is published in our present YEAR BOOK. It shows that the direct cost of National Prohibition would be simply stupendous. When in addition to this, it is considered that under National Prohibition the nation would have to police its frontier and its entire coast line to prevent wholesale smuggling, and that nothing short of a national constabulary would check illicit distilling in all the sequestered places, the question arises whether the police power of the nation, and of the states, would not break down utterly under such a strain?

We have compiled from the Congressional Record an analysis of the petitions sent to Congress, both for and against the prohibition bills of Mr. Hobson, Mr. Works and Mr. Sheppard. Our research covers the period from December 1, 1913, to August 1, 1914. A total of 10,508 petitions were submitted in favor of the bills, and 8,150 against them; but the petitions in favor of the bills only represent a total of 705,714 signatures as compared with 883,201 in the bills opposing the measures.

The strongest forces arrayed on the side of the bills were the members of the Methodist and Baptists Churches, the Women's Christian Temperance Union, the Epworth League and the AntiSaloon League. There were only two Labor Unions petitioning in favor of the Acts, while 422 Labor Unions passed resolutions and sent their petitions against prohibition, exclusive of the Unions in the distilling and brewing industries. These together with the bartenders' unions totaled 223, or more than one-half as many as the Unions not directly interested in the manufacture and sale of liquors and beer. Of the business houses not interested in the industry, 23 favored the bills and 1,306 were opposed to any prohibitive legislation, 514 business houses, directly interested, sent protests. Of the Boards of Trade, Chambers of Commerce, and other civic leagues, 30 favored the bills and 154 opposed them. Of benevolent and fraternal orders, 16 favored the bills and 88 sent protests against them. The petitions of protest against prohibition were, with very few exceptions, carefully prepared, and the full name, address and occupation given, so that the signatures could be verified readily. The value of the signatures to the petitions which were sent in by the prohibitionists is open to serious doubt. Men,

women and children appear to have signed some of them indiscriminately, while others are "omnibus" affairs, submitted by a minister on behalf of his entire congregation! Congressman Bartholdt, of Missouri, in referring to a petition of 25,533 citizens of St. Louis, favoring prohibition, said: “On investigating this petition, neither my colleague, Mr. Dyer, nor his clerk, knew anything about it nor had the petition clerk of the House any record of it. The petition could not be found. I was informed later on that it had been found. It was described to me as a single piece of paper on which was written '25,533 citizens of St. Louis petition for national prohibition,' but in spite of a number of requests I have never been able to see it. The question arises, if this petition did not come from St. Louis, where did it come from, and who is responsible for its presentation in this House? It looks as if this were a spurious petition, and that we have to deal here with some sort of imposition upon the House to manufacture sentiment in favor of the proposition now pending. In this connection, permit me to call attention to the character of these petitions daily filed in favor of prohibition. They evidently have all been printed on the same press. They have been sent out by an organized body of men to all the clergymen of the United States, and these gentlemen take it upon themselves to sign them in behalf, not only of themselves, but in behalf of all the membership of their organizations. In other words, a clergyman would certify that such and such a church of 3,000 or 4,000 members prays for the enactment of prohibition; but when you come to ask any of these 3,000 or 4,000 members whether they knew anything about it, whether they are in favor of prohibition or not, you will find that they are ignorant of it, and have not approved of it. In this case the Church is trying to govern and rule and control the State. A clergyman is within his rights as a citizen when he petitions for himself, but not when he certifies for his congregation, unless he positively knows that they are all of one mind with him."

The point should be emphasized that the signatures in opposition to the bills can all be verified, and that they represent in large part the most substantial people in the community, who have no connection with the liquor traffic.

COMMUNITY WELFARE WORK OF OUR MEMBERS

The investigation conducted by our Association which had for its object the cataloging of the various public welfare activities of