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Distilling and Agriculture 1870--1939" by R B WEIR

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Distilling and Agriculture 1870--1939 Distilling and Agriculture 1870--1939" By R B WEIR I farmer and of protecting the home cereal 'N THEIR article 'Free Trade in Corn', grower. 3 published ill I959, Olson and Harris Following the repeal of the corn laws, the I .chastized historians for neglecting the underlying protective justification for these developments which followed the repeal of measures disappeared and by 186o most had the corn laws. 'From the attention lavished been removed. Molasses, treacle and sugar on repeal', they observed, 'one might were permitted as raw materials by r 848, the assume that all that was important in British malt drawback was withdrawn in 1855 and, agriculture ended in 1846. '1 Much the same in I86o, the differential customs duty on criticism might be made about historians' imported spirits ended. '~ When viewed treatment of the relationship between the against the harmonization of the excise duty drink industries and agriculture. The close- on spirits throughout the United Kingdom ness of that relationship which involved the ha I858, it can be seen that distilling, like supply of barley and malt, the raw materials agriculture, was moving into a free trade of the drink industries, and the return flow of environment, s Much the same was true of waste products for animal feeding-stuffs, has brewing. Brewers were free to use sugar long been an established part of the historical after r 847 and the customs duty on hops was interpretation of the interaction between abolished in I861. Brewers, however, con- agriculture and industry. -~ It has less com- tinued to face a duty on imported malting monly been recognized that the relationship barley until 188o, when Gladstone 'freed the was highly dependent on a range of policy mash tun' by replacing malt duty with an measures. These included, in addition to the excise on beer. ~ corn laws, the high differential customs Although large-scale production and a duties on imported drinks, prohibitions on search for the cheapest possible raw materials the use of imported raw materials such as had already strained the assumed harmony sugar, molasses and treacle, and, in the case between drink producer and agriculturalist of malt distillers, the exclusion of imported before repeal, liberalization greatly widened barley from the refund of the malt tax. All the possible sources of raw materials. 7 The these were ways, directly and indirectly, of consequences for the relationship between tying the drink producer to the British the drink industries and agriculture remain unexplored and may legitimately be de- * The author wishes to acknowledge the assistance given by the scribed as a neglected aspect of agricultural Malt Distillers' Association of Scotland and the Distillers Company Limited, Peter Solar kindly read and commented on an initial draft. The paper was presented at the Conference of the Bcitish Agricultu- JFor explicit recognition of the protective elements in such measures zal History Society at the University of St Andrews. April 1982. see Report from the Select Committee oll the Use of Molasses in Brewing and Distilling, BPP 183t, VII, p xi. '.l 'M Olson, Jr and C C Harris, Jr, 'Free Trade in "Corn": A 4The various changes are sununarized in the First Report of the Statistical Study of the Prices and Production of Wheat in Great Board of Inland Revenue, BPP 1857, IV. Britain from 1873 to 1914', Q.arjoltr of Econ, LXXIII, 1959, son harmonization, see P, B Weir, 'The Drink Trades', in R A pp 145-68. Church (ed), The Dl,namics of l/ictorian B,siness, 198o. p 224. "See, for example, P Mathias, 'Agriculture and the Brewing and ~'l)etails of these changes are in G B Wilson, Alcohol and the Nation, l)istilling Industries in the Eighteenth Century', Econ Hist Rel,, V, 194o, chs 5 and 6. 1952-53, pp 241Y--57. 7See Weir, op cit, p 232. 49 5o THE AGRICULTURAL HISTORY REVIEW history. In view of the general lack of suffered from several economic limitations. consideration for the consumer, or the This traditional method of distilling was- demand side, in British agricultural history, and is m a batch process. The still had to be this neglect may not be surprising. In view of filled, distilled, emptied and re-charged. The the common but seldom explained observa- first distillation produced a rather weak tion that the differential between barley and concentration o falcohol and a second or even wheat prices narrowed during the Great third distillation was needed. Recharging Depression it is nonetheless a surprising and inadequate concentration raised the cost omission. 8 of labour and fuel. Such delays greatly This paper examines the distilling indus- restricted the opportunities for large-scale try's demand for cereals mainly, but not production. Fractionation of the separate exclusively, through the changing purchas- portions of spirit was also difficult. Because ing behaviour of Scottish distillers and fractionation was imperfect and concentra- considers the implications for cereal farm- tion limited, the quality of the raw material ing. Some comparisons are made with the greatly influenced the flavour of the spirit. brewing industry. The first part of the paper This was of considerable importance, for the deals with the period 187o-1914, when Scottish pot still distiller was forced to use a distillers operated in a free trade environ- mash entirely composed of malted barley, a ment. For most of this period the demand for much more expensive material than raw (or spirits was rising, consumption of home- unmalted) grain." produced spirits expanding from 24.4 nail- The long search for a satisfactory alterna- lion proof gallons (mpg) in 187o to a peak of tive to the pot still ended in I83O when 42.8 mpg in 19OO. 9 After I9OO the market Aeneas Coffey, a retired Irish exciseman, contracted and by I914 consumption had patented a design for a continuous still. The fallen to 36.0 mpg. Between the wars Coffey or Patent still broke away entirely depression in the distilling industry inten- from the traditional design.'-" It was heated sifted, consumption falling to 13.1 mpg in by steam, and the exchange of heat between 1933. The second part of the paper covers the steam and wash cut the cost of fuel. With revival of protectionist sentiment in the extraordinary efficiency the still produced a 192os and seeks to unravel the complex concentrated spirit containing between 86 political economy of drink and agriculture per cent and 96 per cent alcohol. The spirit after protection was reintroduced in 1932. was relatively low in the secondary consti- tuents which give pot still whisky its flavour. II The flavour imparted by the raw materials To understand the changes in the distilling was therefore minimal and patent still spirit industry's demand for grain after repeal, it is came close to being a homogeneous coin- necessary to explain one important tech- modity. As fiscal barriers were relaxed and nological innovation in the production of transport improvements widened the mar- spirits, t° Until 183o the most widely used ket, the potential for severe competition in distilling vessel was the pot still which patent still distilling was very high. The benefits of the Coffey still -- its SThe substitution of barley and oats for wheat during the depression and the intportance of malting samples for the greater stability of prodigious output and lower variable costs i barley prices are discussed in P J Perry, British Farming in the Great Depression, Newton Abbot, 1974, p ,o8. :' In Ireland pot still distillers worked from a mixed mash, uormally it '~These figures are for UK consumption of home produced spirits 30 per cent malt and 70 per cent unmalted grain. They also used and exports of British spirits. Figures from Wilson, op eit, three stills rather than two as in Scotland. The origin of this L Appendix F, Table ,, pp 331-4 and Table 8, pp 352-3. difference probably lay i,a the remission of malt duty which '°A fuller description is in R B Weir, 'Competition a,ld the Patent Scottisb but not Irish distillers benefited from. A high proportion Still Distillers', in L M Cullen and T C Smout (eds), Comparative of raw grain economized on malt. Aspeas of lrisfi a,ld Scot,isl! Economic arid Social Development, '-" Discussion of the features of the Coffey still is in A W Sitter, 'A 166o.--19oo, Edinburgh, I975, pp ,35-42. London firm of still makers', Busines:" History, VII-VII1, 1965-66. i .ii~ il DISTILLING AND AGRICULTURE 5I required a sizeable fixed capital invest- Witnesses for the Irish and Scottish patent ment. It tended therefore to be adopted by still distillers appearing before the Select the largest producers serving growing urban Committee on British and Foreign Spirits in markets. In Scotland by r86o there were r2 r 89o and the Royal Commission on Whiskey patent still distilleries with a combined of I9O9 dated the large-scale use of maize output of 6.9 million proof gallons. Pot still from the mid-I86OS. ~5 distilleries numbered I I I, a reduction of 57 By 1877, when the first detailed record of since r845, and shared an output of only an individual firm's grain purchases becomes 5.7 mpg. In the UK as a whole 27 mpg of available (Table I), the constituents of the spirit were distilled; 63 per cent came from patent still distillers' mash had developed patent stills concentrated in a mere 28 what may be described as its modern form. distilleries. ~3 The Distillers Company, which controlled Although the patent still distillers' star over one-third of patent still output, made a appeared to be in the ascendant the prospects mash 77 per cent maize, I9 per cent barley were by no means trouble free.
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