COST OF PROHIBITION

Dominion, Volume 20, Issue 55, 29 November 1926, Page 10

COST OF PROHIBITION

.Sir, —With reference to the cable announcement that the cost of prohibition enforcement during 1927 will be 33,009,000 dollars. I would be glad if you would allow me to submit to your readers an estimate bv a distinguished economist, Professor Irving Fisher, of Yale University, concerning the annual saving enjoyed by the people in the United States since the abolition of the legalised liquor traffic. It may bo worth while to mention that Professor Fisher is one of the leading economists, and his price indexes are published in the daily papers amongst the commercial news:, therefore, anything he has to say is worthy of serious attention.

Stated in pounds sterling, the professor estimates that the saving every year to the United States is at least £1.200.000.000. This works out. on a basis of 110.990.009 population, nt approximately .£lO 18s. per head of tbs population. The cost of prohibition during 1027 stated in pounds sterling is, in round figures, .£9.000.000, or approximately Is. 3d. per bend of the population. Reduced tn tho individual, therefore. it would seem that it costs him Is. 3d. per annum to have prohibition, which puts £lO 18s. per year into his pocket, so that the net profit is .£lO IBs. 9d. per annum. Nationally if means that after the cost of prohibition has been met. the not saving is .£1.192,100.000 on the year. The position is really better than this, because tho cost of enforcement is to a great extent do. fraverj bv fines and by the sale of automobiles and other things seized from lienor law violators. The recent nows concerning the astonndinc- prosperity of the United States of America and the fnct that the Government is going to refund an enormous amount paid bv the taxpayers, indicates tho soundness of Professor Fisher’s estimate.—l am. etc., J. M ALTON MURRAY