Volstead Act Collapse III, 12-14, General Provisions
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Panic cartoon during 1905 China boycott of U.S. goods
The U.S. responded with the Pure Food and Drugs Act of 1906 which required morphine labeling and caused The Panic, then the Hague Opium Convention of 1909, which caused WW1. Surely you recall these from history class, no?
GENERAL PROVISIONS.
SEC. 12. The penalties provided in this title shall be in addition to any penalties provided in title 2 of this Act, unless expressly otherwise therein provided.
SEC. 13. The commissioner shall from time to time issue regulations respecting the establishment, bonding, and operation of industrial alcohol plants, denaturing plants, and bonded warehouses authorized herein, and the distribution, sale, export, and use of alcohol which may be necessary, advisable, or proper, to secure the revenue, to prevent diversion of the alcohol to illegal uses, and to place the nonbeverage alcohol industry and other industries using such alcohol as a chemical raw material or for other lawful purpose upon the highest possible plane of scientific and commercial efficiency consistent with the interests of the Government, and which shall insure an ample supply of such alcohol and promote its use in scientific research and the development of fuels, dyes, and other lawful products.
SEC. 14. Whenever any alcohol is lost by evaporation or other shrinkage, leakage, casualty, or unavoidable cause during distillation, redistillation, denaturation, withdrawal, piping, shipment, warehousing, storage, packing, transfer, or recovery, or any such alcohol the commissioner may remit or refund any tax incurred under existing law upon such alcohol, provided he is satisfied that the alcohol has not been diverted to any illegal use: Provided, also, That such allowance shall not be granted if the person claiming same is indemnified against such loss by a valid claim of insurance.
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The Association Against the Prohibition Amendment organized to oppose the 18th amendment because it damaged the economy. The mention of revenue in Section 13 above was a sop to all who fretted for good reason. The alcohol tax had brought in about 30 to 40% of all federal tax revenue prior to the amendment's enactment, and personal income tax rates were raised to compensate for the lost revenue. Yet none of the pro or con activists reckoned on the collapse of credit from padlockings, confiscations, asset forfeiture, tax-evasion fines and prison sentences plus the increased income tax would do to the fractional reserve banking system once accountholders withdrew their deposits. Some withdrew to avoid confiscation, others to escape the bank collapse when bootleggers suddenly withdrew their deposits in the same bank.
Good Reading: The Scramble fo China by Robert Bickers. (link) Foreign Devils, our ancestors, began hauling Indian opium to China in 1808, when the drug was a chi-chi luxury. Like othr luxuries then and now, overreaction, envy, superstition and cussedness fanned it into a crisis all out of proportion. The Engish is impeccable, the writing subtle, economical and powerful. Yet the author skips what to Americans is a key sequence of events leading to the Species circular, the Central Bank struggle and the Panic of 1837. The Foreign Devils knew in March they were unwelcome and sure enough were asked to leave in December. Nor is there anywhere in the literature an accounting of how the Emperor's displeasure affected American opium traders, and through them worsened the effect of the British withdrawal of capital to arm for the Opium Wars. But the book is nevertheless a worthwhile read and includes a charming history of early Singapore.
Our Man In Tokyo is another good book I'm still reading. Already it is clear the author ignores events in Geneva which led to the 1929 Crash, Hoover's appointment of Harry Anslinger and the dumping of narcotics in These States to raise reparations money, pay war debts, rearm Germany and strengthen Japan's huge income from export of stimulants the U.S. sought to prohibit all over the world. This is a deeply ingrained pattern. On the one hand the USA commandeers other governments into armed prohibition of drugs unimportant before they were banned by the Quing. Yet with all the money and coercion invested, major events take place in an eerie media silence. Even the dates of League of Nations Opium Advisory Committee sessions are difficult to ascertain without contacting Geneva and signing a nondisclosure form.
Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, each at the cost of a pint of craft beer.
Brazilian Sci-fi from 1926 featuring the usual beautiful daughter of a scientist touting prohibition and racial collectivism in America’s Black President 2228 by Monteiro Lobato, translated by J Henry Phillips (link)
What happened after a Republican fanatic was reelected, 1986. Reagan Speech : There've been some real champions in the battle to get this legislation through Congress: Senators Bob Dole , Robert Byrd, and Strom Thurmond ; Congressmen Bob Michel, Jim Wright , Benjamin Gilman, Charles Rangel, and Jerry Lewis. I'd like to single out Senator Paula Hawkins in particular. She took this battle to the public and has been a driving force behind the effort to rid our society of drug abuse. Like Nancy, she made her commitment to fighting drugs long before it was the popular thing to do. This kind of honest, hard-working leadership is what makes all the difference. And now, Paula, if you and your colleagues will join Nancy and me, we will get on with the signing of that bill, making it the law of the land. Here are the names given "it," "the" law of the land. Signed by President . 10/27/1986: Became Public Law No: 99-570. TITLE(S): (italics indicate a title for ...
Who was Germany's ally in WW1? (Amounts in kilos) If you guessed Turkey , you identified the German ally These United States exempted from a declaration of war in 1917 and shielded from accountability for genocidal extermination of Armenians. The graph does NOT tell you that the 14.1 tonnes of opium China shipped to Germany in 1912 came in large part from confiscated shipments after the 1911 revolt that ousted the Qing Empire and ended foreign dumping of opiates. Prohibition zealots are good at eliding inconvenient facts, but to understand how prohibition wrecks national economies it helps to understand that the freer the trade, the wealthier the nation. Does that mean that adding coercive meddling via deadly force impoverishes an economy? Let's find out. My government-mandated History classes at UTexas thrilled at the showdown between banker Nicholas Biddle and President Andrew Jackson over the primitive national bank and were given to understand the Panic of 1837 resul...
Bush notices the difference between his prohibitionism and freedom of production and trade Ronald Reagan published an autobiography in 2007 bragging about how he and Nancy had seen to it that only people willing to pee into a Drug Czar sample cup could hold jobs in the federal bureaucracy. All others would be fired. Onto this bandwagon hopped a Texas congressman with ambitious plans to spread enforcement tentacles around the entire planet, invade other countries, choose foreign politicians and assassinate or jail any who balked. A year after Reagan's biography revealed--bragged about--what had gone on in the hustings, Texas President George W Bush blinked at teevee cameras as the economy crashed around him. Bush was absolutely baffled that "the market" Reagan, Bush Daddy and he himself had coerced at gunpoint with prohibitionist zeal and faith-based asset-forfeiture highway robbery, had "stopped working." Let's look at the record. The following materi...
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