Deposits, income, expenses, and employees by institutions. Includes transportation of bullion and coin between mints and assay offices. INTERNAL REVENUE. The receipts from internal-revenue taxes for the fiscal year 1917, as shown by collectors' reports, were as follows: Ordinary receipts (including the emergency and other revenues, except the income tax)____ Corporation income tax. Individual income tax $449, 712, 412. 48 179, 572, 887. 86 The ordinary receipts for the fiscal year 1917 (exclusive of income tax and emergency and other revenue provided for in the act of October 22, 1914, and subsequent acts) were as follows:. Distilled spirits, including special taxes_. Miscellaneous, including receipts from oleomargarine, opium Total $186, 563, 054. 89 102, 230, 205. 36 61, 532, 025. 08 4,089, 573. 27 354, 414, 858. 60 These collections, as compared with similar collections for the fiscal year 1916, show the following substantial increases: Distilled spirits____. Manufactured tobacco, snuff, cigars, and cigarettes_. Fermented liquors__ Miscellaneous___. Total $31,003, 348. 25 16, 906, 110. 90 2,072, 085. 59 925, 580. 83 50,907, 125, 57 ordinary and The emergency and other revenue, exclusive of the income taxes collected during the fiscal year 1917, was as follows: Wines, champagne, liqueurs, cordials, etc_-_. Grape brandy used in fortification of sweet wines_- Special taxes relating to manufacture and sale of tobacco, cigars, and cigarettes - Special taxes, including corporations, bankers, brokers, proprie tors of theaters, bowling alleys, etc--Schedule A (documentary stamps, etc.). Schedule B (perfumery, cosmetics, etc.) Excess-profits tax... Estate tax__ Munition manufacturers' tax_ Total $5, 164, 075. 03 384, 188. 89 30, 365, 168. 73 971, 386. 80 15, 708, 732. 87 8, 254, 341. 88 671, 968. 42 37, 176. 37 6, 076, 575. 26 27, 663, 939. 63 95, 297, 553. 88 The income-tax receipts from corporations aggregated $179,539,631.03, as compared with $56,972,720.88 collected during the fiscal year 1916. There was also collected $33,256.83 on account of income tax on railroads in Alaska, as compared with $20,937.10 collected in 1916. During the month of July, 1917, $4,997,780.20 was collected from corporations, nearly all of which was upon assessments made during the fiscal year just closed. The income-tax receipts from individuals aggregated $180,108,340.10, or $112,164,745.47 in excess of the amount collected during the preceding year. There was collected $4,828,951.52 during the month of July, 1917, practically all of which is included in assessments made during the fiscal year ended June 30, 1917. The total expenditure of the Internal-Revenue Service during the fiscal year 1917 amounted to $7,699,031.08. This does not include expenditures amounting to $108,493.61 made from the appropriation Refunding internal-revenue collections," as such payments were in no sense an expense incident to the cost of collection. The cost of collecting $1 of internal revenue was $0.0095, which is the lowest so far attained in the history of the bureau. 1 Includes $122,893.87 from sale of internal-revenue stamps affixed to Porto Rican bay rum; $5,164,075.03 from wines, champagne, liqueurs, cordials, etc.; and $384,188.89 from grape brandy used in fortification of sweet wines. * Includes $638,324.16 from sale of internal-revenue stamps affixed to Porto Rican products and $507,533.15 from sale of internal-revenue stamps aflixed to Philippine products. Includes collections from adulterated and process or renovated butter, mixed flour, smoking opium, opium order blanks, etc. Distilled spirits. During the past fiscal year there were produced from material other than fruit 277,834,366.6 taxable gallons of distilled spirits, an increase of 28,710,444.8 gallons over the number of gallons produced during the fiscal year 1916. This increase consisted mainly of alcohol and other high-proof spirits to meet the larger demand for export and for denaturation. The quantity of distilled spirits removed in bond, free of tax, for export and for denaturation during the last two fiscal years was as follows: The production of fruit brandies during the fiscal year 1917 was 8,251,097.3 gallons, as against 4,159,351.6 gallons in 1916, an increase of 4,091,745.7. During the fiscal year 1917, 507 distilleries of all kinds were operated, a decrease of 98 as compared with the preceding year. Fortified wines. There were fortified during the fiscal year 1917, 21,019,358.92 gallons of wine, and the records of this office show that the quantity of brandy used for this purpose amounted to 5,039,786.5 taxable gallons. The quantity of wines so fortified during that year was far above the quantity (6,284,003.5 gallons) of like wines fortified during the preceding year and also far above the average quantity (16,000,000 gallons) of wines fortified annually from June 7, 1906, to October 22, 1914. By the act of October 22, 1914, a tax of 55 cents per gallon was assessed on brandy used in fortifying wines, which tax was reduced by the act of September 8, 1916, to 10 cents per gallon. The large increase in the quantity of wines fortified during the past fiscal year was doubtless due to the comparatively low rates imposed by the act of September 8, 1916, on the brandy used. Tax on wines, cordials, etc. Under the provisions of the act of October 22, 1914, all still wines were taxable at 8 cents per gallon; all cordials, at the rate of 24 cents per gallon; and champagne and artificially carbonated wines, at the rate of 20 cents per quart. These rates were changed under the act of September 8, 1916, as follows: Still wines not over 14 per cent alcohol, 4 cents per gallon; still wines over 14 per cent but not over 21 per cent alcohol, 10 cents per gallon; still wines over 21 per cent but not over 24 per cent alcohol, 25 cents per gallon; still wines over 24 per cent alcohol, $1.10 per gallon. Liqueurs, cordials, etc. (if containing wine fortified under that act), 14 cents per one-half pint, or 6 cents per quart. Champagne and sparkling wine, 3 cents per one-half pint, or 12 cents per quart. Artificially carbonated wine, 14 cents per one-half pint, or 6 cents per quart. There was very little still wine over 21 per cent alcohol tax paid under the act of September 8, 1916, so that the tax receipts from still wines were, for the most part, at 4 cents and 10 cents per gallon, or an average of 7 cents per gallon, or 1 cent less than the tax imposed by the previous act of October 22, 1914. Attention is also called to the fact that no tax was imposed by the act of September 8, 1916, on imported cordials, and as the quantity of domestic cordials produced which contained wine fortified under that act was very small, there was very little tax derived from this class of goods. It will also be noted that the tax on champagne was reduced from 20 cents per quart to 3 cents per one-half pint or 12 cents per quart, and on artificially carbonated wines to 14 cents per one-half pint or 6 cents per quart. Notwithstanding the reductions in tax mentioned above, the tax on wines, cordials, etc., collected under the act of September 8, 1916, for the 12 months from September 1, 1916, to August 31, 1917, was $5,688,816.92, as against $2,688,368.30 collected on like articles under the act of October 22, 1914, from September 1, 1915, to August 31, 1916. Fermented liquors. The production of fermented liquors during the fiscal year 1917 was 60,817,379 barrels, as against 58,633,624 barrels for 1916, an increase of 2,183,755 barrels. In 1917, 60,729,509 barrels of fermented liquors were withdrawn tax paid for consumption, and 87,870 barrels exported free of tax, while in 1916, 58,564,508 barrels were tax paid and 69,116 barrels exported. Dealers in leaf tobacco. The recommendation which has been made each year for a number of years past is again urged, namely, that every dealer in leaf tobacco should be required to give a bond in such penal sum as the collector may determine, based upon the quantum of business done, the sum of such bond to be increased from time to time in the discretion of the collector or under instructions of the Commissioner of Internal Revenue; and that every dealer in leaf tobacco should make a true inventory of stock on the 1st day of January of each year and should render monthly reports of his transactions to the collector of the district. The law should also be revised so that assessments may be made against dealers in leaf tobacco for tax on tobacco disposed of otherwise than as authorized by statute. Income tax. For the fiscal year ended June 30, 1917, the total receipts from the personal-income tax were $180,108,340.10, an increase of $112,164,745.47 over the preceding year. Of this increase, $7,541,956.80 represents the amount assessed upon reports of revenue agents, as compared with $1,878,777.84 from that source during the preceding year. The increase in the total tax collected from persons was more than 165 per cent over the collections of the previous year. The rate of normal tax for 1916 was, however, 2 per cent as compared with 1 per cent for 1915 and previous years. The total receipts from the corporation-income tax for the fiscal year ended June 30, 1917, excluding $33,256.83 collected under the act of July 18, 1914, as income tax on railroads in Alaska (38 Stat., |