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1937 Marijuana Tax Act

Marijuana Tax Act of 1937
Great Seal of the United States
Other short titles
  • 1937 Marijuana Tax Act
  • Taxation of Marijuana
Long title An Act to impose an occupational excise tax upon certain dealers in marijuana, to impose a transfer tax upon certain dealings in marijuana, and to safeguard the revenue there from by registry and recording.
Acronyms (colloquial) MTA
Enacted by the 75th United States Congress
Effective October 1, 1937
Citations
Public law 75-238
Statutes at Large 50 Stat. 551
Legislative history

The Marihuana Tax Act of 1937, Pub. 238, 75th Congress, 50 Stat. 551 (August 2, 1937) was a United States Act that placed a tax on the sale of cannabis. The H.R. 6385 act was drafted by Harry Anslinger and introduced by Rep. Robert L. Doughton of North Carolina, on April 14, 1937. The seventy-fifth Congress held hearings on April 27, 28, 29th, 30th, and May 4, 1937. Upon the congressional hearings confirmation, the H.R. 6385 act was redrafted as H.R. 6906 and introduced with House Report 792. The Act is now commonly referred to, using the modern spelling, as the 1937 Marijuana Tax Act. This act was overturned in 1969 in Leary v. United States, and was repealed by Congress the next year.

Regulations and restrictions on the sale of cannabis sativa as a drug began as early as 1906 (see Legal history of cannabis in the United States). The head of the Federal Bureau of Narcotics (FBN), Harry J. Anslinger, argued that, in the 1930s, the FBN had noticed an increase of reports of people smoking marijuana. He had also, in 1935, received support from president Franklin D. Roosevelt for adoption of the Uniform State Narcotic Act, state laws that included regulations of cannabis.

The total production of hemp fiber in the United States had in 1933 decreased to around 500 tons/year. Cultivation of hemp began to increase in 1934 and 1935 but production remained at very low volume compared with other fibers.

Some parties have argued that the aim of the Act was to reduce the size of the hemp industry largely as an effort of businessmen Andrew Mellon, Randolph Hearst, and the Du Pont family. The same parties have argued that with the invention of the decorticator, hemp had become a very cheap substitute for the paper pulp that was used in the newspaper industry. These parties argue that Hearst felt that this was a threat to his extensive timber holdings. Mellon, Secretary of the Treasury and the wealthiest man in the US, had invested heavily in the Du Pont family's new synthetic fiber, nylon, a fiber that was competing with hemp. In 1916, United States Department of Agriculture (USDA) chief scientists Jason L. Merrill and Lyster H. Dewey created a paper, USDA Bulletin No. 404 "Hemp Hurds as Paper-Making Material", in which they concluded that paper from the woody inner portion of the hemp stem broken into pieces, so called hemp hurds, was "favorable in comparison with those used with pulp wood". Dewey and Merrill believed that hemp hurds were a suitable source for paper production. However, later research does not confirm this. The concentration of cellulose in hemp hurds is only between 32% and 38% (not 77%, a number often repeated by Jack Herer and others on the Internet). Manufacture of paper with hemp as a raw material has shown that hemp lacks the qualities needed to become a major competitor to the traditional paper industry, which still uses wood or waste paper as raw material. In 2003, 95% of the hemp hurds in the EU were used for animal bedding, almost 5% were used as building material. The DuPont Company and many industrial historians dispute a link between nylon and hemp. They argue that the purpose of developing the nylon was to produce a fiber that could compete with silk and rayon.


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