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)
Herbert Hoover tosses Moratorium Bait to Europeans The Great War of 1914-1918 resulted in the Versailles surrender treaty and several Armistice agreements, all of them bristling with references to chemical drugs and narcotics nobody ever mentions. The Versailles treaty also demanded that Germany pay for damage done by WW1. The US refused to charge Germany reparations but did expect repayment of loans taken by many European nations during that war. Those worthies in turn demanded the German reparations out of which they imagined they'd pay those loans outstanding. Thirteen years later Germans ans everyone else were trying everything to get out of those payments. Herbert Hoover "seen his chance" to fasten on another narcotics convention building onto seldom-mentioned narotics limitation plans advanced in 1929 and 1930 within the League of Nations. On 22APR1931 the Hoover Administration roped Germany into an Extradition Treaty not very different from one entered into
The Versailles pact was the successful outcome of China using the USA to ban plant products Go ahead and ask Google : "What did the Versailles treaty do?" The corporate answers are dissembling lies. Americans, who mostly have never read the treaty or its Siamese-Twin corollary, the Charter of the League of Nations, are surprised, shocked, to learn the conflict is rooted in events of 1836. Americans are vaguely aware there was a "Panic" in 1837, with financial crashes, a severe economic depression and considerable violence in the streets. Stories cobbled to explain away the whole thing abound. Democrats urge readers to accept Andrew Jackson's suspicion of a central bank as the sole and ultimate cause. Republicans smugly add that charging payment in gold for government (meaning Indian) land caused a liquidity crunch. None of the stories mention that Mexico was China's trading partner , or that Texas was at war with Mexico in 1836 . Nor will the reader se
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