mated at 900; and the 10,000,000 vines of the State cover about
11,500 acres. An acre of California vineyard in full bearing produces at
least 500 gallons annually, and at that rate the produce of the 11,500
acres would be 5,750,000 gallons. Strike off, however, one-third for
grapes lost, wasted, and gathered for the table, and we have an annual
produce of 3,800,000 gallons. The reason why the present product is so
far below this amount is that most of the vines are still very young,
and will not be in full bearing for several years yet."

The cost of planting a vineyard will of course vary with the situation,
price of labor, quality of soil, etc., but may be estimated at not far
from fifty dollars an acre. This includes everything except the cost of
the land, and brings the vines up to the third year, when they are in
fair bearing condition. There are thousands of acres of land scattered
over the State, admirably adapted to vine-culture, which may be
purchased at from one to two dollars per acre. No enterprise holds out
more encouragement for the investment of labor and capital than this,
and the attention of some of the most intelligent capitalists of the
country is being given to it. In this connection I cannot forbear
referring to the action of the Government in regard to our native wines.
By the National Excise Law of 1862 a tax of five cents a gallon was laid
upon all wine made in the country. No tax has yet been laid upon
agricultural productions generally, and only three per cent, upon
manufactures. Now wine certainly falls properly under the head of
agricultural productions. Upon this ground it might justly claim
exemption from taxation. The wine-growers of California allege that the
tax is oppressive and impolitic: oppressive, because it is equal to
one-fourth of the original value of the wine, and because no other
article of production or manufacture is taxed in anything like this
proportion; impolitic, because the business is now in its infancy,
struggling against enormous difficulties, among which may be mentioned
the high price of labor, rate of interest, and cost of packages, making
it difficult to compete with the wines of Europe, which have already
established themselves in the country, and which are produced where
interest is only three per cent. per annum, and the price of labor
one-quarter of what it is in California. In addition to this there is
the prejudice which exists against American wines, but