20 Letter from Mr. JOHN E. WILLIAMS, President of the Metropolitan Bank, N. Y. New York, May 28, 1864. Dear Miss Schuyler:—I have received your favor of the 27th instant, in which you request me to state my views in relation to certain points connected with the recent movement “ for diminishing the use of imported luxuries.” You ask:— I. “If generally adopted, would it be of any help to our Government during the present crisis—and in what way?” In answer to this inquiry, I would remark, that if generally adopted, importations would be greatly reduced. As a consequence, then, gold, or its equivalent, would thereby be kept in this country which is now sent out of it. Another result would follow from a large reduction in the importation of foreign luxuries, viz.: those articles we should substitute, would be produced here; consequently, we should then pay the home laborer, and the domestic manufacturer, instead of the European operative. In this way new classes would be supported and enriched, and rendered capable of paying large taxes to the Government. This would be especially true of the flourishing manufacturing interests of our country. Thus the people would become self-sustaining, the General Government made stronger, and the whole population happier and richer. Again, you inquire:— II. “As it would necessarily somewhat diminish the Government revenue derived from duties upon imported articles, where would be the corresponding or greater gain?” Of course, if importations are reduced, the imposts or duties would be lessened. But look at the practical operation. See how it will affect the public at large. Suppose, by way of illustration, importations are reduced one-half—that is, for instance, one hundred millions instead of two hundred are imported—this would make one hundred millions less to pay to Europe, yearly, in gold; to say nothing of fifty per cent, of duties, also payable in gold, commissions, etc., etc. Now, in one sense, this importation is a foreign tax, self-imposed, on the American public. If, by your proposed reform, you can prevent the payment of this tax in gold, it is very clear the people would gain either more or less than the sum assumed for the sake of illustrating this point. But you ask, most patriotically, what would be the condition of the Government ? I answer, the United States Government now owes an annual interest on its bonds, payable in gold, not exceeding forty-five millions of dollars. This is provided for by duties on imported goods, payable in gold. Now, inasmuch as various articles, raw and manufactured, which cannot be produced here, will still have to be imported, it is nowise probable that the duties henceforward will be, can be, less than fifty millions annually- If, then, the
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