The effect of the extra war tax on beer has been, as Mr. Lloyd George himself anticipated, to diminish the consumption of that beverage, but it has also had the unexpected result of increasing the sale of spirits and cider.

The fall in the consumption of beer, as shown by the output of some of the leading breweries, has been nearly double Mr. Lloyd Georges’s estimate. For instance, the output of one large brewery from November 23 to December 31 was 7,895 barrels, as compared with 10,566 barrels for the corresponding period last year. If this decrease is maintained the company estimate a net loss, after taking into consideration the increased price charged, of £14,000 to £15,000 per annum. While the takings of licensed houses show, generally speaking, a reduction both alcoholic and non-alcoholic, they also show a noticeable transferance of business from beer to spirits and cider. The increase in the drinking of spirits is most marked in towns and cities. In country districts the agricultural classes have substituted cider for beer. This year has been one of the best ever known for the apple cider crop. A licence is required to sell cider, but it pays no duty.

The effect on the revenue of the extra beer duty and the change is has caused in the drinking habits of the people will not be fully known until the end of the present month, at the earliest. Usually the duty on beer brewed in one month is paid in the following month. But an extra month’s credit for the payment of duty was given to the brewers by the Chancellor of the Exchequer when he imposed the extra tax.