Show Economic Result Of DI Prohibition I T Has Two Angles Figures ures Indicate dic te- te There Then Is No Relation Between Dryness and and Bank Deposits I It t Is Declared Consideration of the economic results result I of two years of prohibition resolves itself it itself it- it self naturally Into two parts constructive constructive construe i tive and destructive but requires delicate deli deU- cate handling lest conclusions reached reache are based on on facts not ot warranted The Thi special reports received by The Telegram Telegram Telegram Tele Tele- gram Indicate that it is as fallacious ti to assert that thousands of people are are ou out of work as a result of prohibition as i It ItIs ItIs Is to contend that increased bank deposits deposits de deposits de- de posits ar are due solely to the comparatively comparatively comparatively dry state of the nation Distilleries breweries and saloons saloon were closed as a result of the passage of or the prohibition act most of the thi breweries and distilleries going out 0 of or business when wartime prohibition became be became be- be came effective July 1 I 1919 six aix and a half months before constitutional pro pro- Naturally the workers rs ii in these distilleries breweries and saloons saloon lost their places In a majority of cases Since that time the country ha has has' passed through a hectic era of business in which as ma may be recalled labor bor was wa scarce and highly paid That the pen pendulum Q ul t haS the t. t way eco eco is notto not to be be charged d against prohibition nor is there any indication in the dispatches dispatcher received from special lal correspondents that those in a a position to Judge conditions conditions' In their own wn l localities beau caU- caU ties blame prohibition for unemployment y- y ment meat hard times or other unfortunate economic conditions On the other hand the reports received re received re received Including including regarding bank deposits ing lug postal saving banks mutual savings savings savings sav sav- ings and other banking institutions donot do dc donot not seem seem to justify the claim sometimes advanced by dry advocates that vast sums of or money money are being put in banks bank solely because of the prohibition law In Intact fact tact the diversity of or the reports of 01 banking conditions Is so great that the conclusion Is forced that there must belittle be belittle belittle little 1 If it any relation between bank deposits deposits de deposits de- de posits and prohibition taking the country country country coun coun- try as a a. whole Industrial and economic econom econom- ic conditions generally and local conditions conditions conditions con con- specifically appear to be re responsible responsible responsible re- re for the movement of et bank deposits deposits de deposits de- de posits upward or downward There are are some economic developments developments develop develop- ments meats In the country however In which the influence of prohibitiOn n ismore Is Ismore Ismore more or less clearly traceable There were In this country before wartime prohibition seventy four distilleries dis breweries and approximately approximately approximately saloons The figures are those of the league Nearly all of these properties lost their character character character char char- acter as a result of or prohibition Ostensibly Ostensibly Ostensibly Osten Osten- sibly at least property of great value was wiped out MUCH PROPERTY ABSORBED There Is nothing obtainable however however however how how- ever to show there was an any great property loss The league has g gathered some facts that seem to prove the contrary and there Is no evidence in refutation Specifically the A. A S. S I I. I mentions thirteen distilleries In Peoria Ill which were at once taken over by a large food corporation and transformed with the result that about persons were employed where 1000 men had worked before In dealing with the question of what happened to the breweries the A A. A S. S L. L quotes the Journal a publication c cation tion once Issued In the interest of brewing concerns which made a survey survey sur sun vey roy vey to ascertain how former breweries were being used The result was vas as as ls follows Manufacturing soft drinks Making beverages other than near beer Making drink syrups Making lEaking malt s sj and extract 63 Making 1 Ice Used as cold storage warehouses 50 60 Idle die Idle To Total tal 1826 The fact that this total is far in inex- inex excess excess ex ex- cess ess of the total number dumber of breweries accounted foris for Is due to duplication buthe but the he table indicates I tes that there has not Continued on page 7 RESULT II I 1 I I II Continued from p ge 1 1 I I eels een a substantial property loss the transformation of the Regarding saloon properties the is more difficult New York pity City It which abounded In saloons In Inthe the ld days perhaps furnishes as good a keYlo ey to the situation as can be found Saloons have been changed into cigar jl Cores lunchrooms drug stores soda I water eater ater places The league has as s. s a list but it jt is not necessary to go goto goto to that source for information the well ell informed inhabitant of the cit city sows knows Us as is well ell as anyone that there t ban an have been no really substantial prop property loss generally gC because of or the disappearance of the saloon tITTLE ACTUAL DESTRUCTION l Unquestionably there has been loss Individual loss losS' and company loss bese be- be ause se the business of making and sell- sell n alcoholic liquors liquor was an extremely l I JUARY UARY ARY 16 1922 profitable one B Brit t as one dry cate recalls there was also a substantial pr property perty loss when salver salvery was was abolished The point sought to t be e made 1 is Economically there has been en no great general Property destruction because of the P abandonment or transformation transformation trans- trans formation Of Properties previously pre used for purposes prohibIted by the theIn prohibItion law In explanation of this it may be well T to r recall a recent utterance of Ernest Ii IL H. VT general secretary of f the World League Against Alcoholism recently made r So far as more than half halt of the states are concerned it would be quite impossible to give any n comprehensive e analysis of what has become of the former establishments for alcohol production production pro pro- and sale The change which took place in these states was 59 gradual gradual gradual grad grad- ual that statisticians and government reports took very slight note of the transformation Two generations have passed in fn some states s since nce the alcohol establishments were outlawed Only the oldest citizens in such states could now even remember the location of properties formerly used J by y the liquor traffic POSTAL SAVINGS DECLINE Turning Turning to the constructive side and considering one of the things most frequently mentioned as an argument for prohibition the increase in bank deposits one finds an absence of fact to warrant the assertion that that these prove the benefit of prohibition Take the case of the postal savings banks Following is an extract from a dispatch dispatch dispatch dis dis- dis- dis patch from The rhe Telegrams Telegram's Washington Washing Washing- ton correspondent A continuous dc decline in the business business busi busl- ness of postal j v ings rings banks coincides according to official reports of the postoffice der detriment department with the be begInnIng beginning begin beg ln- ln nn nIng of wartime prohibition on July 1 1919 Officials o o. o the department 1 ie- ie e- e fuse to discuss the the- decline from tho the standpoint of pr but pout t out that all postal business fell off orf during the depression Then follows th the figures for three three government fiscal years which end June 30 Here are the figures fl ures r I Year Dep Depositors Amount Isle lUO b before for prohibition I 1020 1 IBS Now on the face or of such a table an anI argument might be based that prohibItion prohibition prohibition I tion has hurt the postal savings system system tem but a study of the figures for other lather years as well shows that there Is no logical basis for any prohibition argument pro or con in the records of the postal savings system Following Is is' is the official record for the entire life of the system the figures for 1911 being for six months only Amount Fiscal Total De- De Number of ot to Credit of ot Tear Year Depositors Depositors 1911 15 1912 1112 1013 1913 1914 1014 10 43 1916 1016 1916 1917 1017 1918 1019 6 1020 1921 This particular phase of the bankIng bankIng banking bank- bank Ing situation is s touched on rather fully for the reason that both the wets and the drys have hae utilized the department records and statements to back their arguments OTHER BANKS SHOW GAINS When one turns to th the reports of the mutual savings banks for the entire entire entire en en- tire country It is found that the situation situation situation situ situ- Is just exactly the rever reverse e of that in the case of the postal savings banks Here are years' years figures fIgurel from the office of the comptroller of the currency Average Tear Year Depositors Deposits Deposits 1920 1921 C 50 These figures ar are for for years ending June 30 In each case The mutual mutual mutual mu mu- banks show a gain of while in exactly the same period the postal savings banks sh show w a loss in deposits of Mutual savings banks are not in every state For this reason it is in interesting interesting interesting in- in to take the figures on deposits depos depos- its in the wettest state New York and the state Delaware for forthe forthe forthe the last two years New York Tork Delaware Depositors 1020 3 44 Depositors 1921 1021 3 Gain or loss 83 1684 Deposits 1920 1020 2 Deposits 1921 1021 2648 Gain or loss Gain fLoes It would seem that while both states gained in the sum of deposits there is nothing In these figures to Indicate that the wettest state compares unfavorably unfavorably unfavorably un un- favorably with the in the matter matter matter mat mat- ter of deposits in mutual banks As Asfar Asfar Asfar far as prohibition goes the figures mean nothing In this connection it may be noted that notwithstanding Its comparative wetness the tho savings bank deposits in inthe inthe inthe the state of New York on July 1 were in excess of the deposits on the previous January 1 1 PRAISED IN NEW ENGLAND The correspondent of The Telegram in Concord N N. H H. however points out that since sinco prohibition savings bank de deposits deposits de- de posits have increased and the number of depositors has increased He says I State and bank officials are warm In their praise of prohibition and are of the opinion that it is partly responsible responsible responsible sible for the prosperity of the state and the growth of the savings bank deposits I IOn IOn On the other hand han the correspondent correspond correspond- ent in Madison Wis VIs a state that is hardly more wet than New Hampshire Hampshire Hampshire Hamp Hamp- shire wires Savings deposits In state banks September last were over less than in November the year previous but over more moe than in November 1919 From Butte Mont where the state r prohibition law preceded the act lCt comes this message With conditions far from norma normal and unemployment prevalent almost during luring the entire period and resultIng resulting resulting result result- ing loses of population recorded In both rural and urban centers particularly particularly ul since 1920 bankers declare that their figures cannot be taken as asan asan an index in-dex of the results of the statute stat stat- ute NO TIE TO PROHIBITION While from Baltimore Md comes this Whatever prosper prosperity Maryland r may have had within the last two two I years vears is not attributed to prohibition N Neither ither the governor nor the mayor believe the ban on the sale of liquor has anything to do with improved conditions This view is also entertained entertained entertained enter enter- by directors of savings banks In these the tho deposits In 1920 were not up to the average several of the larger institutions showing a distinct loss This Tills year they showed a considerable considerable considerable con con- Improvement a fact held due to a It realization that with a I dearth of work during the wInter preparation must be made for tor an an emergency With such a variety of facts figurea figures figures fig fig- ures urea reports and opinions It would be he obviously unfair to contend that bank deposits of any character are a I guide to the benefits or otherwise of prohibition The Tile statement was made In the first article of ot the series that the revenue of ot the federal government had been cut more than a year by reason of the the shutting off oft of the trade In Intoxicants There is isan isan an economic gain however in the increased business I THEATRE BUSINESS PROSPERS Approximately poured Into the tills of the theatres moving I picture houses and other othel places of ot I amusement in the fiscal year ending June 30 1 H 21 according to the tile governments government's governments government's governments government's gov gov- tax tat figures The last half haIt of last year probably will not show quite as high an average The Tho Important important Important Im Im- point to be made can be drawn drawn- however from the official figures The receipts of the theatres and other places for 1921 were ere per percent percent percent cent greater than for the fiscal year jear ear 1919 which ended the day wartime prohibition went into effect It is true that theatre prices were I Increased and thereby the total of the 10 per cent tax It Is also true rue that there were substantial gains made In the business In days Like so man many economic developments it is not possible accurately accurately accurately to analyse the cause The facts must be taken for what they are worth orth The year ending June 30 1921 was the biggest on out record in point of ot box office receipts The foIl following awing table shows the total I of box office receipts motion picture I theatres included for two periods one I known as the tile period because It ended the day wartime I prohibition went into effect and the theother theother other known as the I I period I Receipts of or theatres etc Increased I Per Cent nt Over Preceding Period Perlo Year Received Tear Year 1918 1018 1910 1019 92 S P 1020 1920 CO 6 1021 1921 9 The figures of receipts of course are based on on the tax receipts of the g government OTHER LUXURIES BOUGHT FREELY Tax collections also show that In many other luxury purchases purchases purchases pur pur- chases the public has been bu buying ing at at Increasing asing quantities under prohibition prohibition prohibition tion despite the general economic de depression depression depression de- de recently Chewing gum tax collections increased In Increased Increased In- In creased 18 per cent in the prohibition years ears 1920 and 1921 the official re reports reports reports re- re ports of t the Internal revenue bureau bur show sho This means that the total purchases of Jt chewing gum largely increased unless the prices of that commodity soared In that case the i t is not so clear that more business was done Some varieties of chewing gum now are selling at prewar prices Post prohibition tax collections also increased on soft drinks and similar beverages The increase was 17 per percent cent Candy tax collections however de decreased decreased decreased de- de creased 13 13 per cent in 1921 as compared with 1920 sa say the official reports I I Tennis and sporting goods tax collections increased 45 per cent In 1921 compared with 1920 In the I I two years however an increase also was recorded This increase was more than per cent according to the official reports An |