Encyclopaedia Britannica, 11th Edition, "Liquid Gases" to "Logar"

Chapter IV: Front Matter (4)

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In 1869 this policy of directing the habits of the people into channels thought to be preferable, which had been inaugurated in 1830, was abandoned for one of greater stringency all round, which has since been maintained. All the beer and wine retail licences were brought under the discretion of the justices, but they might only refuse "off" licences and the renewal of previously existing beer-house "on" licences upon specified grounds, namely (1) unsatisfactory character, (2) disorder, (3) previous misconduct, (4) insufficient qualification of applicant or premises. In 1872 an important act further extended the policy of restriction; new licences had to be confirmed, and the right of appeal in case of refusal was taken away; penalties for offences were increased and extended, particularly for public drunkenness, and for permitting drunkenness; the sale of spirits to persons under 16 was prohibited. In 1876 many of these provisions were extended to Scotland. In 1886 the sale of liquor for consumption on the premises was forbidden to persons under 13 years. In 1901 the sale for "off" consumption was prohibited to persons under 14, except in sealed vessels; this is known as the Child Messenger Act. These measures for the protection of children were extended in 1908 by an act which came into operation in April 1909, excluding children under 14 from the public-house bars altogether. The progressive protection of children by the law well illustrates the influence of changing public opinion. The successive measures enumerated were not due to increasing contamination of children caused by their frequenting the public-house, but to recognition of the harm they sustain thereby. The practice of taking and sending children to the public-house, and of serving them with drink, is an old one in England. A great deal of evidence on the subject was given before a Select Committee of the House of Commons in 1834; but it is only in recent years, when the general concern for children has undergone a remarkable development in all directions, that attempts have been made to stop it. In 1902 clubs, which had been increasing, and habitual drunkards, were brought under the law.

In 1904 a new principle was introduced into the licensing system in England, and this, too, was due to change in public opinion. Between 1830 and 1869, under the influence of the legislation described above, a continuous increase in the number of public-houses took place in England; but after 1869 they began to diminish through stricter control, and this process has gone on continuously ever since. Reduction of numbers became a prime object with many licensing benches; they were reluctant to grant new licences, and made a point of extinguishing old ones year by year. At first this was easily effected under the new and stringent provisions of the legislation of 1869-1872, but it gradually became more difficult as the worst houses disappeared and the remaining ones were better conducted, and gave less and less excuse for interference. But the desire for reduction still gained ground, and a new principle was adopted. Houses against which no ill-conduct was alleged were said to be "superfluous," and on that ground licences were taken away. But this, again, offended the general sense of justice; it was felt that to take away a man's living or a valuable property for no fault of his own was to inflict a great hardship. To meet the difficulty the principle of compensation was introduced by the act of 1904. It provides that compensation shall be paid to a licence-holder (also to the owner of the premises) whose licence is withdrawn on grounds other than misconduct of the house or unsuitability of premises or of character. The compensation is paid out of a fund raised by an annual charge on the remaining licensed houses. This act has been followed by a large reduction of licences.

_State of the Law in 1910._--In consequence of the long history and evolution of legislation in the United Kingdom and of the innumerable minor changes introduced, only a few of which have been mentioned above, the law has become excessively complicated. The differences between the English, Scottish and Irish codes, the distinction between the several kinds of liquor, between consumption on and off the premises, between new licences and the renewal of old ones, between premises licensed before 1869 and those licensed since, between excise and justices' licences--all these and many other points make the subject exceedingly intricate; and it is further complicated by the uncertainty of the courts and a vast body of case-made law. Only a summary of the chief provisions can be given here.

1. The open sale of intoxicating liquor (spirits, wine, sweets, beer, cider) by retail is confined to persons holding an excise licence, with a few unimportant exceptions, including medicine.

2. A condition precedent to obtaining such a licence is permission granted by the justices who are the licensing authority and called a justices' licence or certificate. Theatres, passenger boats and canteens are exempted from this condition; also certain dealers in spirits and wine.

3. Justices' licences are granted at special annual meetings of the local justices, called Brewster Sessions. Justices having a pecuniary interest in the liquor trade of the district, except as railway shareholders, are disqualified from acting; "bias" due to other interests may also be a disqualification.

4. Justices' licences are only granted for one year and must be renewed annually, with the exception of a particular class, created by the act of 1904 and valid for a term of years. Distinctions are made between granting a new licence and renewing an old one. The proceedings are stricter and more summary in the case of a new licence; notice of application must be given to the local authorities; the premises must be of a certain annual value; a plan of the premises must be deposited beforehand in the case of an "on" licence; the justices may impose conditions and have full discretion to refuse without any right of appeal; the licence, if granted, must be confirmed by a higher authority. In the case of old licences on the other hand, no notice is required; they are renewed to the former holders on application, as a matter of right; unless there is opposition or objection, which may come from the police or from outside parties or from the justices themselves. If there is objection the renewal may be refused, but only on specified grounds--namely misconduct, unfitness of premises or character, disqualification; otherwise compensation is payable on the plan explained above. There is a right of appeal to a higher court against refusal. In all cases, whether the justices have full discretion or not, they must exercise their discretion in a judicial manner and not arbitrarily.

5. Licences may be transferred from one person to another in case of death, sickness, bankruptcy, change of tenancy, wilful omission to apply for renewal, forfeiture or disqualification. Licences may also be transferred from one house to another in certain circumstances.

6. A licence may be forfeited through the conviction of the holder of certain specified serious offences.

7. Persons may similarly be disqualified from holding a licence.

8. Liquor may only be sold on the premises specified in the licence and during the following hours:--week-days; London, 5 A.M. to 12.30 P.M. (Saturday, midnight); large towns 6 A.M. to 11 P.M.; other places 6 A.M. to 10 P.M.--Sundays; London, 1 P.M. to 3 P.M., 6 P.M. to 11 P.M.; other places 12.30 P.M. (or 1 P.M.) to 2.30 P.M. (or 3 P.M.), 6 P.M. to 10 P.M.; Christmas Day and Good Friday are counted as Sunday. In Scotland, Wales and Ireland (except the five chief towns) no sale is permitted on Sunday. Licence holders may sell during prohibited hours to lodgers staying in the house and to _bona-fide_ travellers, who must be not less than 3 m. from the place they slept in on the previous night. Extension of hours of sale may be granted for special occasions and for special localities (e.g. early markets).

9. The following proceedings are prohibited in licensed premises: permitting children under 14 to be in a bar, selling any liquor to children under 14 for consumption on the premises, selling liquor to children under 14 as messengers except in corked and sealed vessels, selling spirits for consumption on the premises to persons under 16; selling to drunken persons and to habitual drunkards; permitting drunkenness, permitting disorder, harbouring prostitutes, harbouring constables, supplying liquor to constables on duty, bribing constables, permitting betting (persistent) or gaming, permitting premises to be used as a brothel, harbouring thieves, permitting seditious meetings; permitting the payment of wagers on premises; permitting premises to be used for election committee rooms. In and within 20 m. of London music and dancing are prohibited on licensed premises except under special licences.

10. The police have the right of entry to licensed premises at any time for the purpose of preventing or detecting offences.

11. The injurious adulteration of any liquor is prohibited; also the dilution of beer; but dilution of spirits is not unlawful if the customer's attention is drawn to the fact.

12. All clubs in which intoxicating liquor is sold must be registered. If the liquor is the collective property of the members no licence is required for retail sale, but no liquor can be sold for consumption off the premises. Clubs run for profit, known as proprietory clubs, are on the same legal footing as public-houses.

13. Penalties incurred by licence-holders for offences under the foregoing provisions. For selling any other kind of liquor than that authorized--first offence, fine not exceeding £50 or one month's imprisonment; second offence, fine not exceeding £100 or 3 months' imprisonment with forfeiture of licence and, if ordered, confiscation of liquor and disqualification for five years; third offence, fine not exceeding £100 or six months' imprisonment with forfeiture of licence and, if ordered, confiscation of liquor and unlimited disqualification. Under the Excise Acts the penalty for selling without a licence is--for spirits, a fine of £100, confiscation of liquor, forfeiture of licence and perpetual disqualification; for wine, a fine of £20; for beer or cider "on" consumption £20, "off" consumption £10. For sale to children; first offence, fine up to £2, second offence, fine up to £5. Permitting premises to be used as a brothel, fine of £20, forfeiture of licence and perpetual disqualification. Other offences, fine up to £10 for first conviction, up to £20 for second.

14. The following are offences on the part of the public. Being found drunk on any highway or other public place or on licensed premises; penalty, fine up to 10s. for first conviction, up to 20s. for second, and up to 40s. for third. Riotous or disorderly conduct while drunk; fine up to 40s. Falsely pretending to be a traveller or lodger; fine up to £5. Causing children to be in a bar or sending them for liquor contrary to the law; fine up to £2 for first and up to £5 for second offence. Attempt to obtain liquor by a person notified to the police as an habitual drunkard; fine up to 20s. for first offence, up to 40s. for subsequent ones. Giving drunken persons liquor or helping them to get it on licensed premises; fine up to 40s. or imprisonment for a month. Causing children under 11 to sing or otherwise perform on licensed premises, and causing boys under 14 or girls under 16 to do so between 9 P.M. and 6 A.M.; fine up to £25 or three months' imprisonment.

The foregoing statement of the law does not in all respects apply to Scotland and Ireland, where the administration differs somewhat from that of England. In Scotland the provost and bailies are the licensing authority in royal and parliamentary burghs, and elsewhere the justices. They hold two sessions annually for granting licences and have considerably more power in some respects than in England. The hours of opening are from 8 A.M. to 11 P.M. (week days only), but there is a discretionary power to close at 10 P.M. In Ireland the licensing authority is divided between quarter sessions and petty sessions. Public-house licences are granted and transferred at quarter sessions; renewals and other licences are dealt with at petty sessions. In Dublin, Belfast, Cork, Londonderry and Galway the licensing jurisdiction of quarter sessions is exercised by the recorder, elsewhere by the justices assembled and presided over by the county court judge. The licensing jurisdiction of petty sessions is exercised by two or more justices, but in Dublin by one divisional justice.

_Excise Licences and Taxation._--The excise licences may be divided into four classes, (1) manufacturers', (2) wholesale dealers', (3) retail dealers' for "on" consumption, (4) retail dealers' for "off" consumption. Only the two last classes come under the jurisdiction of the justices, as explained above. The total number of different excise licences is between 30 and 40, but several of them are subvarieties and unimportant or are peculiar to Scotland or Ireland. The duties charged on them were greatly changed and increased by the Finance Act of 1909-1910, and it seems desirable to state the changes thus introduced. The table on the previous page gives the principal kinds of licence with the old and the new duties.

There are in addition "occasional" licences valid for one or more days, which come under the jurisdiction of the justices; the duty is 2s. 6d. a day for the full licence (raised to 10s.) and 1s. for beer or wine only (raised to 5s.).

The total amount raised by the excise licences in the United Kingdom for the financial year ending 31st March 1909 was £2,209,928. Of this amount £1,712,160, or nearly four-fifths, was derived from the full or publicans' licence, £126,053 from the wholesale spirit licence and £88,167 from the beer-house licence; the rest are comparatively unimportant. But the licences only represent a small part of the revenue derived from liquor. The great bulk of it is collected by means of duties on manufacture and importation. The total amount for the year ending March 1909 was £37,428,189, or nearly 30% of the total taxation revenue of the country. The excise duties on the manufacture of spirits yielded £17,456,366 and those on beer £12,691,332; customs duties on importation yielded £5,046,949. The excise duty on spirits was at the rate of 11s. a gallon, raised at the end of April 1909 to 14s. 9d.; the corresponding duty on beer is 7s. 9d. a barrel (36 gallons). The relative taxation of the liquor trade in the United States, which has become important as a political argument, is discussed below.

_Effects of Legislation._--The only effects which can be stated with precision and ascribed with certainty to legislation are the increase or diminution of the number of licences or licensed premises; secondary effects, such as increase or diminution of consumption and of drunkenness, are affected by so many causes that only by a very careful, well-informed and dispassionate examination of the facts can positive conclusions be drawn with regard to the influence of legislation (see TEMPERANCE). There is no more prolific ground for fallacious statements and arguments, whether unconscious or deliberate. The course of legislation traced above, however, does permit the broad conclusion that great laxity and the multiplication of facilities tend to increase drinking and disorder in a country like the United Kingdom, and that extreme severity produces the same or worse effects by driving the trade into illicit channels, which escape control, and thus really increasing facilities while apparently diminishing them. The most successful course has always been a mean between these extremes in the form of restraint judiciously applied and adjusted to circumstances. The most salient feature of the situation as influenced by the law in recent years is the progressive reduction in the number of licensed houses since 1869. Previously they had been increasing in England.

The number of public-houses, including beer-houses for "on" consumption, in 1831 was 82,466; in 1869 it had risen to 118,602; in 1909 it had fallen again to 94,794. But if the proportion of public-houses to population be taken there has been a continuous fall since 1831, as the following table shows:--

_England and Wales._

+--------+----------------+---------------+
| | No. of | Proportion |
| Year. | "on" Licences. | per 10,000 of |
| | | Population. |
+--------+----------------+---------------+
| 1831 | 82,466 | 59 |
| 1871 | 112,886 | 49 |
| 1901 | 101,940 | 31 |
| 1909 | 94,794 | 26 |
+--------+----------------+---------------+

The change may be put in another way. In 1831 there was one public-house to 168 persons; in 1909 the proportion was 1 to 375. The proportional reduction goes back to the 18th century. In 1732 there was in London one public-house to every 50 persons (see above).

In Scotland the number of public-houses has been diminishing since 1829, when there were 17,713; in 1909 there were only 7065, while the population had more than doubled. The number in proportion to population has therefore fallen far more rapidly than in England, thus--1831, 1 to 134 persons; 1909, 1 to 690 persons. In Ireland the story is different. There has been a fall in the number of public-houses since 1829, when there were 20,548; but it has not been large or continuous and the population has been steadily diminishing during the time, so that the proportion to population has actually increased, thus--1831, 1 to 395 persons; 1909, 1 to 249 persons. As a whole, however, the United Kingdom shows a large and progressive diminution of public-houses to population; nor is this counterbalanced by an increase of "off" licences. If we take the whole number of licences we get the following movement in recent years:--

_No. of Retail Licences ("on" and "off") per 10,000 of Population._

+-------------------+-------+-------+-------+
| | 1893. | 1903. | 1909. |
+-------------------+-------+-------+-------+
| England and Wales | 46 | 42 | 37 |
| Scotland | 37 | 33 | 30 |
| Ireland | 41 | 46 | 45 |
| United Kingdom | 45 | 42 | 37 |
+-------------------+-------+-------+-------+

The diminution in the number of public-houses in England was markedly accelerated by the act of 1904, which introduced the principle of compensation. The average annual rate of reduction in the ten years 1894-1904 before the act was 359; in the four years 1905-1908; after the act it rose to 1388. The average annual number of licences suppressed with compensation was 1137, and the average annual amount of compensation paid was £1,096,946, contributed by the trade as explained above.

The reduction of public-houses has been accompanied in recent years by a constant increase in the number of clubs. By the act of 1902, which imposed registration, they were brought under some control and the number of legal clubs was accurately ascertained. Previously the number was only estimated from certain _data_ with approximate accuracy. The following table gives the official figures:--

_Clubs: England and Wales._

+--------------+------+------+------+------+------+------+------+------+
| | 1887.| 1896.| 1904.| 1905.| 1906.| 1907.| 1908.| 1909.|
+--------------+------+------+------+------+------+------+------+------+
| Number | 1982 | 3655 | 6371 | 6589 | 6721 | 6907 | 7133 | 7353 |
| Proportion | | | | | | | | |
| per 10,000 | 0.7 | 1.1 | 1.89 | 1.93 | 1.95 | 1.98 | 2.02 | 2.08 |
+--------------+------+------+------+------+------+------+------+------+

Clubs represent alternative channels to the licensed trade and they are under much less stringent control; they have no prohibited hours and the police have not the same right of entry. In so far, therefore, as clubs replace public-houses the reduction of the latter does not mean diminished facilities for drinking, but the contrary. In the years 1903-1908 the average number of clubs proceeded against for offences was 74 and the average number struck off the register was 52. The increase of clubs and the large proportion struck off the register suggest the need of caution in dealing with the licensed trade; over-stringent measures defeat their own end.

Persistent attempts have for many years been made to effect radical changes in the British system of licensing by the introduction of some of the methods adopted in other countries, and particularly those in the United States. But it is difficult to engraft new and alien methods, involving violent change, upon an ancient system consolidated by successive statutory enactments and confirmed by time and usage. The course of the law and administration since 1869 has made it particularly difficult. The stringent conditions imposed on licence-holders have given those who fulfil them a claim to consideration, and the reduction of licences, by limiting the market, has enhanced their value. An expectation of renewal, in the absence of misconduct, has grown up by usage and been confirmed by the law, which recognizes the distinction between granting a new licence and renewing an old one, by the treasury which levies death duties on the assumption that a licence is an enduring property, by local authorities which assess upon the same assumption, and by the High Courts of Justice, whose decisions have repeatedly turned on this point. The consequence of all this is that very large sums have been invested in licensed property, which has become part of the settled order of society; and to destroy it by some sudden innovation would cause a great shock. The position is entirely different in other countries where no such control has ever been exercised. It is possible to impose a new system where previously there was none, but not to replace suddenly an old and settled one for something entirely different. Only the most convincing proof of the need and the advantages of the change would justify it; and such proof has not been forthcoming. The British system has the great merit of combining adaptability to different circumstances and to changing customs with continuity and steadiness of administration. The advantages of abandoning it for some other are more than doubtful, the difficulties are real and serious. Over a very long period it has been repeatedly readjusted in conformity with the movement of public opinion and of national habits; while under it the executive have gradually got the traffic well in hand, and a great and progressive improvement in order and conduct has taken place. The process is gradual but sure, and the record will compare favourably with that of any other comparable country. Further readjustment will follow and is desirable. The great defect of the law is its extreme complexity; it needs recasting and simplification. There are too many kinds of licence, and the classification does not correspond with the actual conditions of the traffic. Some licences are obsolete and superfluous; others make no distinction between branches of the trade which fulfil entirely different functions and require different treatment. The full or publican's licence, which is incomparably the most important, places on the same legal footing hotels, restaurants, village inns and mere drinking bars, and the lack of distinction is a great stumbling-block. In the attempt made in 1908 to introduce new legislation it was found necessary to incorporate distinctions between different classes of establishment, although that was not contemplated in the original bill. It will always be found necessary whenever the subject is seriously approached, because the law has to deal with things as they actually are. It does not fall within the scope of this article to discuss the numerous controversial questions which arise in connexion with various legislative proposals for dealing with the liquor traffic; but an account of the methods which it has been proposed to adopt from other countries will be found below.

THE UNITED STATES

The liquor legislation of the United States presents a great contrast to that of the United Kingdom, but it is not less interesting in an entirely different way. In place of a single homogeneous system gradually evolved in the course of centuries it embraces a whole series of different ones based on the most diverse principles and subject to sudden changes and frequent experiments. It is not sufficiently understood in Europe that the legislatures of the several states are sovereign in regard to internal affairs and make what laws they please subject to the proviso that they cannot over-ride the Federal law. There is therefore no uniformity in regard to such matters as liquor legislation, and it is a mistake to speak of any particular system as representing the whole country. The United States government only interferes with the traffic to tax it for revenue, and to regulate the sale of liquor to Indians, to soldiers, etc. The liquor traffic is subject--whether in the form of manufacture, wholesale or retail trade--to a uniform tax of 25 dollars (£5) per annum imposed on every one engaged in it. Congress, under the constitution, controls interstate commerce, and the Supreme Court has decided that without its consent no state can prevent a railway or other carrying agency from bringing liquor to any point within its borders from outside. Thus no state can keep out liquor or prevent its consumption, but any state legislature may make what internal regulations it pleases and may prohibit the manufacture and sale altogether within its own borders. It may go further. In 1887 a judgment was delivered by the Supreme Court of the United States that it is within the discretionary power of a state to protect public health, safety and morals even by the destruction of property without compensation, and that the constitution of the United States is not thereby violated. Use has been made of this power in Kansas, and it appears therefore that persons who engage in the liquor trade do so at their own risk. There is in fact no stability at all except in a few states which have incorporated some principle in their constitutions, and even that does not ensure continuity of practice, as means are easily found for evading the law or substituting some other system which amounts to the same thing. As a whole the control of the liquor traffic oscillates violently between attempted suppression and great freedom combined with heavy taxation of licensed houses.

In the great majority of the states some form of licensing exists; it is the prevailing system and was adopted, no doubt from England, at an early period. It is exercised in various ways. The licensing authority may be the municipality or a specially constituted body or the police or a judicial body. The last, which is the method in Pennsylvania, seems to be exceptional. According to Mr Fanshawe there is a general tendency, due to the prevailing corruption, to withdraw from municipal authorities power over the licensing, and to place this function in the hands of commissioners, who may be elected or nominated. In New York state the licensing commissioners used to be nominated in cities by the mayors and elected elsewhere; but by the Raines law of 1896 the whole administration was placed under a state commissioner appointed by the governor with the consent of the Senate. A similar plan is in force in some important cities in other states. In Boston the licensing is in the hands of a police board appointed by the governor; in Baltimore and St Louis the authority is vested in commissioners similarly appointed; and in Washington the licensing commissioners are appointed by the president. In Pennsylvania, where the court of quarter sessions is the authority, the vesting of licensing in a judicial body dates back to 1676 and bears the stamp of English influence. It is noteworthy that in Philadelphia and Pittsburg (Allegheny county) the judicial court was for a time given up in favour of commissioners, but the change was a great failure and abandoned in 1888. The powers of the licensing authority vary widely; in some cases the only grounds of refusal are conduct and character, and licences are virtually granted to every applicant; in others the discretion to refuse is absolute. In Massachusetts the number of licences allowed bears a fixed ratio to the population, namely 1 to 1000, except in Boston, where it is 1 to 500, but as a rule where licences are given they are given freely. They are valid for a year and granted on conditions. The first and most general condition is the payment of a fee or tax, which varies in amount in different states. Under the "high licence" system (see below) it generally varies according to the size of the locality and the class of licence where different classes are recognized. In Massachusetts there are six licences; three for consumption on the premises--namely (1) full licence for all liquors, (2) beer, cider, and light wine, (3) beer and cider; two for consumption off the premises--namely (1) spirits, (2) other liquors; the sixth is for druggists. In New York state also there are six classes of licence, though they are not quite the same; but in many states there appears to be only one licence, and no distinction between on and off sale, wholesale or retail. Another condition generally imposed in addition to the tax is a heavy bond with sureties; it varies in amount but is usually not less than 2000 dollars (£400) and may be as high as 6000 dollars (£1200). A condition precedent to the granting of a licence imposed in some states is the deposit of a petition or application some time beforehand, which may have to be backed by a certain number of local residents or tax-payers. In Pennsylvania the required number is 12, and this is the common practice elsewhere; in Missouri a majority of tax-payers is required, and the licence may even then be refused, but if the petition is signed by two-thirds of the tax-payers the licensing authority is bound to grant it. This seems to be a sort of genuine local option. Provision is also generally made for hearing objectors. Another condition sometimes required (Massachusetts and Iowa) is the consent of owners of adjoining property. In some states no licences are permitted within a stated distance of certain institutions; e.g. public parks (Missouri) and schools (Massachusetts). Regulations imposed on the licensed trade nearly always include prohibition of sale to minors under 18 and to drunkards, on Sundays, public holidays and election days, and prohibition of the employment of barmaids. Sunday closing, which is universal, dates at least from 1816 (Indiana) and is probably much older. The hours of closing on week days vary considerably but are usually 10 P.M. or 11 P.M. Other things are often prohibited including indecent pictures, games and music.

_State Prohibition._--In a few states no licences are allowed. State prohibition was first introduced in 1846 under the influence of a strong agitation in Maine, and within a few years the example was followed by the other New England states; by Vermont in 1852, Connecticut in 1854, New Hampshire in 1855 and later by Massachusetts and Rhode Island. They have all now after a more or less prolonged trial given it up except Maine. Other states which have tried and abandoned it are Illinois (1851-1853), Indiana (1855-1858), Michigan, Iowa, Nebraska, South Dakota. The great Middle states have either never tried it, as in the case of New York (where it was enacted in 1855 but declared unconstitutional), Pennsylvania and New Jersey, or only gave it a nominal trial, as with Illinois and Indiana. A curious position came about in Ohio,[1] one of the great industrial states. It did not adopt prohibition, which forbids the manufacture and sale of liquor; but in 1851 it abandoned licensing, which had been in force since 1792, and incorporated a provision in the constitution declaring that no licence should thereafter be granted in the state. The position then was that retail sale without a licence was illegal and that no licence could be granted. This singular state of things was changed in 1886 by the "Dow law," which authorized a tax on the trade and rendered it legal without expressly sanctioning or licensing it. There were therefore no licences and no licensing machinery, but the traffic was taxed and conditions imposed. In effect the Dow law amounted to repeal of prohibition and its replacement by the freest possible form of licensing. In Iowa, which early adopted a prohibitory law, still nominally in force, a law, known as the "mulct law," was passed in 1894 for taxing the trade and practically legalizing it under conditions. The story of the forty years' struggle in this state between the prohibition agitation and the natural appetites of mankind is exceedingly instructive; it is an extraordinary revelation of political intrigue and tortuous proceedings, and an impressive warning against the folly of trying to coerce the personal habits of a large section of the population against their will. It ended in a sort of compromise, in which the coercive principle is preserved in one law and personal liberty vindicated by another contradictory one. The result may be satisfactory, but it might be attained in a less expensive manner. What suffers is the principle of law itself, which is brought into disrepute.

State prohibition, abandoned by the populous New England and central states, has in recent years found a home in more remote regions. In 1907 it was in force in five states--Maine, Kansas, North Dakota, Georgia and Oklahoma; in January, 1909, it came into operation in Alabama, Mississippi, and North Carolina; and in July 1909 in Tennessee.

_Local Prohibition._--The limited form of prohibition known as local veto is much more extensively applied. It is an older plan than state prohibition, having been adopted by the legislature of Indiana in 1832. Georgia followed in the next year, and then other states took it up for several years until the rise of state prohibition in the middle of the century caused it to fall into neglect for a time. But the states which adopted and then abandoned general prohibition fell back on the local form, and a great many others have also adopted it. In 1907 it was in force in over 30 states, including all the most populous and important, with one or two exceptions. But the extent to which it is applied varies very widely and is constantly changing, as different places take it up and drop it again. Some alternate in an almost regular manner every two or three years, or even every year; and periodical oscillations of a general character occur in favour of the plan or against it as the result of organized agitation followed by reaction. The wide discrepancies between the practice of different states are shown by some statistics collected in 1907, when the movement was running favourably to the adoption of no licence. In Tennessee the whole state was under prohibition with the exception of 5 municipalities; Arkansas, 56 out of 75 counties; Florida, 35 out of 46 counties; Mississippi, 56 out of 77 counties; North Carolina, 70 out of 97 counties; Vermont, 3 out of 6 cities and 208 out of 241 towns. These appear to be the most prohibitive states, and they are all of a rural character. At the other end of the scale were Pennsylvania with 1 county and a few towns ("town" in America is generally equivalent to "village" in England); Michigan, 1 county and a few towns; California, parts of 8 or 10 counties. New York had 308 out of 933 towns, Ohio, 480 out of 768 towns, Massachusetts, 19 out of 33 cities and 249 out of 321 towns. At the end of 1909 a strong reaction against the prohibition policy set in, notably in Massachusetts.

There is no more uniformity in the mode of procedure than in the extent of application. At least five methods are distinguished. In the most complete and regular form a vote is taken every year in all localities whether there shall be licences or not in the ensuing year and is decided by a bare majority. A second method of applying the general vote is to take it at any time, but not oftener than once in four years, on the demand of one-tenth of the electorate. A third plan is to apply this principle locally and put the question to the vote, when demanded, in any locality. A fourth and entirely different system is to invest the local authority with powers to decide whether there shall be licences or not; and a fifth is to give residents power to prevent licences by means of protest or petition. The first two methods are those most widely in force; but the third plan of taking a local vote by itself is adopted in some important states, including New York, Ohio and Illinois. Opinions differ widely with regard to the success of local veto, but all independent observers agree that it is more successful than state prohibition, and the preference accorded to it by so many states after prolonged experience proves that public opinion broadly endorses that view. Its advantage lies in its adaptability to local circumstances and local opinion. It prevails mainly in rural districts and small towns; in the larger towns it is best tolerated where they are in close proximity to "safety valves" or licensed areas in which liquor can be obtained; the large cities do not adopt it. On the other hand, it has some serious disadvantages. The perpetually renewed struggle between the advocates and opponents of prohibition is a constant cause of social and political strife; and the alternate shutting up and opening of public houses in many places makes continuity of administration impossible, prevents the executive from getting the traffic properly in hand, upsets the habits of the people, demoralizes the trade and stands in the way of steady improvement.

_Public Dispensaries._--This entirely different system of controlling the traffic has been in general operation in one state only, South Carolina; but it was also applied to certain areas in the neighbouring states of North Carolina, Georgia and Alabama. The coloured element is very strong in these states, especially in South Carolina, where the coloured far exceeds the white population. The dispensary system was inaugurated there in 1893. It had been preceded by a licensing system with local veto (adopted in 1882), but a strong agitation for state prohibition brought matters to a crisis in 1891. The usual violent political struggle, which is the only constant feature of liquor legislation in the United States, took place, partly on temperance and partly on economic grounds; and a way out was found by adopting an idea from the town of Athens in Georgia, where the liquor trade was run by the municipality through a public dispensary. A law was passed in 1892 embodying this principle but applying it to the whole state. The measure was fiercely contested in the courts and the legislature for years and it underwent numerous amendments, but it survived. Under it the state became the sole purveyor of liquor, buying wholesale from the manufacturers and selling retail through dispensaries under public management and only for consumption off the premises. Many changes were introduced from time to time without abandoning the principle, but in 1907 the system of state control was replaced by one of county administration. Local veto is also in force, and thus the localities have the choice of a dispensary or no sale at all. The regulations are very strict. The dispensaries are few and only open on week-days and during the day-time; they close at sunset. Liquor is only sold in bottles and in not less quantities than half a pint of spirits and a pint of beer, and it must be taken away; bars are abolished. There is a general consensus of testimony to the effect of the system in improving public order especially among the coloured population, who are very susceptible to drink. The law seems to be well carried out in general, but Charleston and Columbia, the only two considerable towns, are honeycombed with illicit drink-shops, as the writer has proved by personal experience. Columbia is the capital and the seat of cotton manufactures, as are all the larger towns, with the exception of Charleston, which is the port and business centre. The population of the state is predominantly rural, and local prohibition obtains in 18 out of 41 counties.

The following statistical comparison, extracted from the United States
Census of 1900 and the Inland Revenue Returns by Mr W. O. Tatum (_New
Encyclopedia of Social Reform_) and here presented in tabular form, is
highly instructive. It shows the population and number of liquor
dealers paying the United States tax in two prohibition states, one
state under what is considered the best licensing system, and South
Carolina.

+-------------------------+-----------+----------+--------+
| | | Wholesale| Retail |
| State. |Population.| Liquor | Liquor |
| | | Dealers. |Dealers.|
+-------------------------+-----------+----------+--------+
| Maine (Prohibition) | 694,466 | 51 | 1366 |
| Kansas (Prohibition) | 1,470,495 | 129 | 3125 |
| Massachusetts (Licence) | 2,805,346 | 617 | 5092 |
| S. Carolina (Dispensary)| 1,340,316 | 13 | 534 |
+-------------------------+-----------+----------+--------+

This table may be said to epitomize the results of the United States
restrictive liquor laws. It presents examples of three different
systems; the proportion of retail liquor sellers to population
is--under complete prohibition, 1 to 508 and 1 to 475; under licence
and local prohibition, 1 to 530; under dispensary and local
prohibition, 1 to 2509. But the remarkable thing is the enormous
amount of illicit traffic existing under all three systems. It is
incomparably greatest under complete prohibition because the whole of
the traffic in these states is illicit. In South Carolina one of the
wholesale dealers and 388 of the 534 retailers were illicit. In
Massachusetts the number cannot be stated, but it is very large. If
the whole state were under licence the total legal number of licences,
which is limited in proportion to population (see above), would be
3400; and in that case there would be some 1700 illicit retailers. But
a large part of the state, probably more than half, is under local
prohibition, so that the majority of the 5000 retail dealers must be
illicit. These facts, which are typical and not exceptional, reveal
the failure of the laws to control the traffic; only partial or
spasmodic attempts are made to enforce them and to a great extent they
are ignored by common consent. The illegal trade is carried on so
openly that the United States revenue officers have no difficulty in
collecting the federal tax. It is not a satisfactory state of things,
or one which countries where law is respected would care to imitate.
The example is a good lesson in what to avoid.

_Taxation._--Mention has been made above of the federal and state
taxation imposed on the liquor trade. The former is uniform; the
latter varies greatly, even in those states which have adopted the
"high licence." This system is intended to fulfil two purposes; to act
as an automatic check on the number of licences and to produce
revenue. It was introduced in Nebraska in 1881, when a tax of 1000
dollars (£200) was placed on saloons (public houses) in large towns,
and half that amount in smaller ones. The practice gradually spread
and has now been adopted by a large number of states, noticeably the
populous and industrial north-eastern and central states. In
Massachusetts, where the high licence was adopted in 1874 when the
state returned to licensing after a trial of prohibition, the fees are
exceptionally high, the minimum for a fully licensed on and off house
being 1300 dollars (£260); in Boston the average tax is £310. In New
York state it ranges from 150 dollars (£30) in sparsely populated
districts to 1200 dollars (£240), and in Pennsylvania it is much the
same. In New Jersey, on the other hand, it ranges from £20 to £60; in
Connecticut from £50 to £90; in Rhode Island from £40 to £80. In
Missouri, which has a special system of its own and a sort of sliding
scale, great variations occur and in some cases the tax exceeds £500.
In Michigan it is uniform at £100. The mean for the large cities is
£133. The revenue derived from this source is distributed in many
ways, but is generally divided in varying proportions between the
state, the county and the municipality; sometimes a proportion goes to
the relief of the poor, to road-making or some other public purpose.
The amount levied in the great cities is very large. It will be seen
from the foregoing that the taxation of licences is much heavier in
the United States than in the United Kingdom. The total yield was
ascertained by a special inquiry in 1896 and found to be rather less
than 12 millions sterling; in the same year the yield from the same
source in the United Kingdom was just under 2 millions. Allowing for
difference of population the American rate of taxation was 3¼ times as
great as the British. It has been inferred that the liquor trade is
much more highly taxed in the United States and that it would bear
largely increased taxation in the United Kingdom; that argument was
brought forward in support of Mr Lloyd George's budget of 1909. But it
only takes account of the tax on licences and leaves out of account
the tax on liquor which is the great source of revenue in the United
Kingdom, as has been shown above. The scales are much lower in the
United States, especially on spirits, which are only taxed at the
average rate of 5s. 8d. a gallon against 11s. (raised to 14s. 9d. in
1909) in the United Kingdom. Mr Frederic Thompson has calculated out
the effect of the two sets of rates and shown that if British rates
were applied to the United States the average yield in the three years
ending 1908 would be raised from 44 millions to 76 millions; and
conversely if American rates were applied to the United Kingdom the
average yield would be lowered from 36 millions to 23 millions. Taking
licences and liquor taxation together he finds that the application of
the British standards for both would still raise the total yield in
the United States by 39%; and that even the exceptionally high rates
prevailing in Massachusetts would, if applied to the United Kingdom,
produce some 4 millions less revenue than the existing taxation. Other
calculations based on the consumption and taxation per head lead to
the same conclusion that the trade is actually taxed at a considerably
higher rate in the United Kingdom. In the three years ending 1908 the
average amount paid per head in taxation was 13s. 8¾d. in the United
States and 17s. 6¾d. in the United Kingdom. It may be added that the
method of taxing licences heavily has certain disadvantages; it
stimulates that illicit trade which is the most outstanding feature of
the traffic in the United States, and combined with the extreme
insecurity of tenure involved in local option it gives licence-holders
additional inducements to make as much money as possible by any means
available, while they have the opportunity, for no compensation is
ever paid for sudden dispossession. The notion that the trade will
stand an indefinite amount of taxation is a dangerous and oft-proved
fallacy.

_European Countries._

With the exception of Sweden, Norway and Russia, which have special systems of their own, the continental countries of Europe have as yet paid comparatively little legislative attention to the subject of the liquor traffic, which is recognized by the law but for the most part freely permitted with a minimum of interference. Differences exist, but, generally speaking, establishments may be opened under a very simple procedure, which amounts to an elementary form of licensing, and the permission is only withdrawn for some definite and serious offence. Regulations and conditions are for the most part left to the discretion of the local authority and the police and are not burdensome. The reason for such freedom as compared with the elaborate and stringent codes of the United Kingdom and the United States is not less concern for public welfare but the simple fact that the traffic gives less trouble and causes less harm through the abuse of drink; the habits of the people are different in regard to the character of the drinks consumed, the mode of consumption and the type of establishment. Cafés, restaurants and beer-gardens are much more common, and mere pot-houses less so than in the English-speaking countries. Where trouble arises and engages the attention of the authorities and the legislature, it is almost invariably found to be associated with the consumption of spirits. In several of the wine-producing countries, which are generally marked by the temperate habits of the people, the widespread havoc among the vines caused some years ago by the phylloxera led to an increased consumption of spirits which had a bad effect and aroused considerable anxiety. This was notably the case in France, where an anti-alcohol congress, held in 1903, marked the rise of public and scientific opinion on the subject. Temperance societies have become active, and in some countries there is a movement towards stricter regulations or at least a demand for it; but in others the present law is a relaxation of earlier ones.

_France._--The present law governing the licensing of establishments
where liquor is sold for consumption on the premises was passed in
1880; it abrogated the previous decree of 1851, by which full
discretion was vested in the local authorities, and freed the traffic
from arbitrary restrictions. It provides that any person desiring to
open a café, cabaret or other place for retailing liquor must give
notice to the authorities, with details concerning himself, the
establishment and the proprietor, at least 15 days beforehand; the
authority in Paris is the préfecture of police and elsewhere the
mairie. Transfers of proprietorship or management must be notified
within 15 days, and intended transference of location 8 days
beforehand. The penalty for infraction is a fine of 16 francs to 100
francs. Legal minors and persons convicted of certain crimes and
offences--theft, receiving stolen goods, various forms of swindling,
offences against morality, the sale of adulterated articles--are
prohibited; in the case of crimes, forever; in the case of offences,
for five years. Otherwise permission cannot be refused, subject to
conditions which the local authority has power to lay down regulating
the distance of such establishments from churches, cemeteries,
hospitals, schools and colleges. But persons engaged in the trade, who
are convicted of the offences mentioned above and of infraction of the
law for the suppression of public drunkenness, are disabled, as above.
The law practically amounts to free trade and the number of houses has
increased under it; in 1900 there was one to every 81 persons. This
proportion is only exceeded by Belgium. Under the Local Government Act
of 1884 municipal authorities are empowered, for the maintenance of
public order, to fix hours of closing, regulate dancing, forbid the
employment of girls and the harbouring of prostitutes and make other
regulations. The hours of closing differ considerably but usually they
are 11 P.M., midnight or 1 A.M. The trade is lightly taxed; retailers
pay from 15 to 50 francs a year; wholesale dealers, 125 francs;
breweries the same in most departments, distilleries 25 francs. The
excise revenue from liquor amounted to £20,000,000 in 1900.

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Encyclopaedia Britannica, 11th Edition, "Liquid Gases" to "Logar"Chapter IV: Front Matter (4)

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