During the fiscal year 1916 there were used in the fortification of pure sweet wines 1,257,399 proof gallons of brandy as against 4,505,218.7 proof gallons used for like purpose during the preceding fiscal year.

This noticeable decrease is doubtless due to the fact that by the act of October 22, 1914, the tax on brandy so used was increased from three cents per proof gallon, as fixed by the act of June 7,1906, to 55 cents per proof gallon. The result of this increase in the rate of tax is also clearly indicated by the quantity of brandy used under these different rates during the fiscal year 1915, the quantity used at the rate of three cents per proof gallon during the first four months being 4,132,419.4 proof gallons, as against 373,199.3 proof •gallons at the higher rate of tax used during the remaining 8 months.

By the act of September 8, 1916, the tax on brandy so used has been reduced to 10 cents per proof gallon, and it may, I think, be safely predicted that the quantity of brandy hereafter so used annually will closely approximate 5,000,000 proof gallons.

By the Act of October 3, 1917 the above tax has been increased so that now so-called grape brandy pays 20 cents per proof gallon when used for fortifying purposes.

Congress has thus placed a premium on the use of distilled spirits in fortified wine. The consumer of such distilled spirits, if used as such for beverage purposes, saves the difference between a tax of $3.20 and 20 cents per proof gallon.

Inasmuch as it is possible to raise the content of alcohol in fortified wine to 24 percent this half whisky ought, as the Commissioner of Internal Revenue hopes, to have a great vogue.