U.S. LEGAL BEER.

Auckland Star, Volume LXIV, Issue 134, 9 June 1933, Page 5

U.S. LEGAL BEER.

CANADA'S HEAVY LOSS.

ESTIMATE OF £20,000,000 YEARLY. 1

FACING THE WORRY.

(By a Special Correspondent.) OTTAWA, May 8. Legalisation of beer in the United States is believed by officials of the Canadian Government to herald a major loss in the liquor revenue by the Do-

minion and provincial Governments, as well as a severe shrinkage in the sales of Canadian breweries. While there may be a few months of unprecedented prosperity, officials believe ultimately this change in United States prohibition; will cost Canada at least £20,000,000 a year. At present Canadian breweries are prepared to export beer which will meet with all the requirements of the new United States law immediately the import prohibition is lifted. Canadian beer as a rule is stronger than will be allowed into the United States. But the breweries are prepared to shop a special beer brewed to met the regulations, and they are confident that for a few months they will do a large export business, as United States breweries are not yet equipped for large scale production.

Thirsty American Tourists. Tn pre-prohibition days the Dominion never successfully competed with American breweries. Citizens of the United States preferred a lighter beer than the heavier beverage produced here. There used to be a good market in the States for Canadian whiskies and gin, and much of both is still bootlegged across the border. The effect on the tourist trade is expected to be equally pronounced. Alcoholic beverages have had much to do with the very large expenditures made in Canada in recent years by American tourists. In 1930 the total was £00,000,000, in

1931 £50,000,000, and last year £43,000,000. Large quantities of beer were sold to these visitors. So much that a responsible Canadian public man once advocated building more bridges across the St. Lawrence River and rivers connecting the Great Lakes to encourage thirsty Americans to enter Canada and, in this way, "to pay off our national debt." With beer available in their own country, officialdom at Ottawa believes this American tourist trade will decline rapidly. Of less consequence in a national sense will be the losses that border cities like Windsor and Niagara Falls will experience. Liquor sales in both have been large owing to their proximity to large American cities. But they never drew American custom in pre-prohibition days. The brewers of "mnCsor and its environs are conferring to work out plans for meeting the situation. There are no legalised saloons in Ontario, so there consequently will be no loss of bar patronage except in the border cities' blind pigs. Brewers, too, cannot admit that they have profited by beer smuggling into Detroit and its suburbs. The greatest worry is among the hotels. Two large Windsor hotels, the Prince Edward and Norton Palmer, have thrived on week-end parties of Detroiters. However, many of these parties are liquor and wine parties, which will not be affected by the change in the American law. Beer is sold exclusively through Government warehouses, and wine and hard liquors through government stores. These are operated under the Ontario Liquor Coirferol-Act.—IN.A.K.A*).