It is not uncommon to come across screw-top liquor bottles from the 20th century that are boldly embossed on their shoulders or bases with the above text. After Prohibition was repealed on December 5, 1933, US laws once again allowed the legal manufacture and sale of alcoholic drink. Liquor was legal but producing it was subject to greater Federal control.
One law required that alcoholic bottles must be embossed with the text, “FEDERAL LAW FORBIDS SALE OR REUSE OF THIS BOTTLE” This law went into effect in 1935 and was repealed on December 1, 1964. The reason for this legislation is fairly obvious: after over a decade of Prohibition, law enforcement was well aware of the illegal trade in alcohol (bootlegging) and wanted to prevent the refilling of bottles by black market businesses.
This is link direct link to the Office of the Commissioner of Internal Revenue – Alcohol and Tobacco Tax Division document: http://www.ttb.gov/industry_circulars/archives/196...
As you can see in this document, the repeal of the legislation did not require that this marking of bottles cease immediately. Rather, it was simply no longer required. As you might expect, bottlers did not cease production on that very day. In fact, Bill Lindsey has documented one such FEDERAL LAW FORBIDS… bottle that he has accurately dated to 1974.
If you come across such a bottle, you can date it in this time period. Such bottles do not yet hold much interest or value to collectors. However, if you come across one with good labels that have attractive graphics and it is in perfect condition, hold on to it. These are the collectibles of tomorrow.