Super Size Taxpaid Revenues

A couple months ago I finally got a large format scanner. These have come way down in price since I last checked some years ago and I got a nice one for around $170. I can now do single-piece scans up to about 12 x 17"!

I finally got around to scanning some of my uncut sheets of taxpaids, so here are three more. The 1878 Distillery Warehouse stamps (with Zachary Taylor) were printed by the Bureau of Engraving & Printing; the 1875 series by American Bank Note Co.

The 1872 Rectified Spirits stamps are a hybrid like one I posted earlier, with Continental BNC printing the green frame and the BEP completing the work. I'll post a close-up of an adjoining pair to show both imprints next to each other.

I love the silk paper. I have been fascinated by it since I was a kid. Very nice items there.

Returning to the question of the purple paper backing on the various alcohol categories. What was illustrated was the rectified spirits stamps of 1875. Let's return to what rectified spirits are. These are spirits that have either (1) gone through multiple distillations (as is the case with rum) or (2) spirits of various vintages have been blended. In the case of the purple backing strips, we are interested in the blended spirits. Wholesale liquor dealers and rectifiers (often the same individual or firm) received several barrels of whiskey and wished to produce blended spirits. The new barrels of blended spirits had to have on them prominently displayed stamps that showed that the requisite taxes had been paid. They needed to apply for rectified spirits stamps with a portion of the distilled spirits tax paid stamps showing the serial number. The purple backing strip made it easier to remove a portion of the stamp which then was pinned to the application for rectified spirits stamps.

So why would the rectified spirits stamps need this same purple backing strip? For a wholesale liquor dealer to remove a portion so they could apply the wholesale liquor dealer stamps to be placed on smaller containers.

Going back in time before 1875, the alcohol category stamps did not have these backing strips. Why were they introduced? To solve the problem that arose during the early 1870's, an incident known as The Whiskey Ring. Some of Grant's appointees cooked up the idea to support the re-election campaign (after all they were political appointees and they would lose their jobs if Grant were not re-elected!), they allowed some distillers in Missouri and Illinois to evade some of the alcohol taxes in exchange for a contribution to the re-election campaign. Does this sound familiar? It should. The elaborate process of removal of a portion of the tax paid stamp to obtain either or both wholesale liquor dealer stamps or rectified spirits stamps, making it much more difficult to evade taxes.

Fascinating and illuminating! I went back and examined all my taxpaid liquor stamps to see which ones used the purple backing. All those with the purple strip were series 1875 or later. And, as you point out, the purple strip always runs behind the serial number. Since my collection is nearly all remainders we have to conjecture what became of used taxpaids. It sounds like they were glued to a cask or barrel, then the part of the stamp with the serial number was torn off, still leaving the purple strip stuck to the barrel. It's no wonder so few cancelled copies exist!

In my collection, here are the stamps which have the purple backers:
Rectified Spirits - 30 gal., Series 1875
Wholesale Liquor Dealers - 10 gal., Series 1875
Wholesale Liquor Dealers - 5 gal., Series 1876
Distilled Spirits for Exportation - Series 1878
Imported Spirits - 5 gal., Series 1879

And interestingly here are a few that did NOT have purple backers:
Distillery Warehouse series 1875 and 1878
Special Bonded Warehouse stamp for Grape Brandy, series 1877 and 1878

Most interesting was the crossover year of 1875. The 30 gallon Rectified Spirits stamp has the backer -- AND it has TWO serial numbers on the stamp itself (not including the one on the stub). The backer runs under the one on the right side. Next I have a 10 gallon stamp from the same series, with only one serial number in the center and no purple strip. And lastly, to confuse things, a 5 gallon stamp also from the same series with TWO serial numbers and NO strip.

I think for the 1875 series some experimenting was still going on during the printing process and when the purple strip was attached. It appears to me that the strip was attached after printing and probably after numbering. Perhaps the Treasury Department at first thought it might be a good idea to leave one serial number on the cask and remove the other, then later decided that wasn't necessary. I welcome further theories.

In spite of the 1875 Rectified Spirits with only one serial number on the stamp itself being listed after the ones with two serials on the stamp with backing strip, the order of issue and use is actually reversed, i.e., the ones with only one serial number came first. It was during the use of these stamps that they initiated the backing strips and additional numbers. This became standard practice for subsequent series.

I'm still a little confused. Did only the Rectified Spirits stamps use the dual serial numbers? I don't see this on any other taxpaids.

Also, were serial numbers sequential across denominations or could you have #123 for the 5 gallon, #123 for the 20 gallon, etc.? I'm trying to parse out how the 10 gal with the single serial could have a higher number than the 5 gal with the double serial.

Your insights on these are terrific, btw -- many thanks!

After many years of hunting, I finally completed my three-stamp set of Brewer's Permit taxpaid revenues. The first two are unused remainders, series 1872 and 1875. I've always considered the vignette on the 1872 stamp to be one of the quirkiest the BEP ever engraved -- two portly drinking buddies, one lighting a smoke off the other (at least I think that's what they're doing).

My most recent acquisition is the third and hardest variety of Brewer's Permit stamp, series 1878. This is a scruffy example, as most used copies are, but I'm happy to have it.

Not to burst your bubble, but there is a twentieth century (Series of 1911 if memory serves me correctly) brewer's permit. This was issued in a single color, part of the development of single color and reduced size stamps that were part of the push around 1909-1912. I believe there are only one or two recorded copies. I have never owned one.

Ron Lesher

Thanks for that interesting bit of info! I'd like to see an image of that one. So, I'll amend my earlier post: I've completed my 19th century set of Brewer's Permit taxpaids.

As a follow-up -- I'm familiar with Eric Jackson, but are there any auction houses that specialize in this type of material? Back when, HJW Daugherty had a lot of it, but I don't believe he's still around.

Regrettably, I do not have an image of the 1911 Brewer's Permit.

Hugh Daugherty is still very much around. However, I have not seen any really exotic taxpaids among his recent auction lots. The most exotic offerings I have seen in recent years have been on ebay and in the offerings of Richard Friedberg and Eric Jackson.

I might add that the Series of 1878 Brewer's Permits come in a variety of papers, just like the beer stamps. They also went through a number of plate numbers. The pictured one is plate one from the original plate that was created (during the period that there was a plate number 1 for every stamp that was printed by BEP. Later they changed to a unique plate numbering scheme. In my next post I will try to provide a scan of one from that era.

How does this 1878 Brewer's permit fit in with the above series 1878 permit? One of the later paper types?

This image here is of an 1878 Brewers Permit on one of the later papers, which I will call blue (as opposed to light blue and dark blue). Paper colors on these stamps are best identified when one has multiple copies for comparison. Within the stamp one sees again the plate 1 designation. However, note in the bottom margin, the new unique plate number 1410 has been entered. They just did not redo the plate numbers in the four positions of the four subject plate.

Ron Lesher

Here we see the 1878 Brewers Permit on the distinctive pale green paper, familiar to us on the 1878 beer stamps and other taxpaids of the mid 1880's. Note here that it is printed from a new plate entered within the design, the number is 1623.

Ron Lesher

Below are cropped images of two of the 1872 Brewer's Permits I have. One shows plate number 1 and the other plate number two. But the interesting fact of the matter is that the stub on Plate 1 shows First Series while on plate 2 it does not.

I don't have my Springer catalog handy, but I don't believe it makes this distinction.

Would be interested in knowing if there are other plate numbers and if they have First Series printed on the stub or not.

Also note that the plate number appears before the plate letter on 1 and after the plate letter on 2.