banking interests, prohibiting the interference of State Governments, it would seem to be the plain duty of Congress to make adequate provision to meet the business wants of all sections of the country in the way of banking facilities.

Very respectfully, yours,

Hon. W. P. FESSENDEN,

H. MCCULLOCH, Secretary.

Chairman Committee on Finance, United States Senate.

OFFICE OF COMPTROLLER OF THE CURRENCY, TREASURY DEPARTMENT, WASHINGTON, April 12, 1866. DEAR SIR: Your communication of the 10th instant, transmitting Senate bill 256, and asking for certain statist es relating to the apportionment of national currency, was duly received, and in accordance with your request I send you herewith a tabu ar statement, showing 1st. The population of each State and Territory of the United States by the census, 1860. 2d. The circulation now authorized in each State and Territory.

3d. The amount of such circulation to each inhabitant of each State and Territory

4th. The apportionm nt of one hundred and fifty millions of the circulation authorized by law to the several States and Territories according to population by the census of 1860.

5th. The States have secured circclation in excess of twenty dollars for each inhabitant.

I also enclose a list of th banks, classified by States, which would be affected by the amendment proposed by Mr. Fessenden, which I respectfully submit.

It will be observed that but three States have received or secured circulation in excess of $20 per capita-Massachusetts, Connecticut and Rhode Island-the three having an aggregate excess of $59,573,837.

The with rawal of this sum would of necessity be severely felt. The fact that it is proposed to be withdrawn proceeds upon the supposition that a circulation of $20 for each inhabitant is sufficient for the business wants of those States. This suggests the inquiry whether popu lations the proper basis for circulation. If the people were all engaged in the same kind of business, it might be correct, but even then it would be desirable to know how much business was carried on in any particular State before the amount of circulation for that State could be determined But if you take into account the various branches of industry, and the ex ent to which they are carried in the different States, it will be evident that circulation should not be apportioned according to populationalone. In point of population Illinois is the furth State in the Union, and Connecticut is the twen ieth; yet Connecticut produces manufactures to the amount of $82,000,000 annually, and Illinois but $58,000,000. Ohio is the third State, and Massachusetts the sixth; out while the product of Ohio manufactures is but $122,000,000 per annum, Massachusetts produces annually $256,000,000. An agricultural population does not require so large a circulation as a commercial or manufacturing communit. The tabular statement which I send you shows that Rhode Island has the largest per capita circulation of any State in the Union, but Rhode Island does nearly one-third mor business in proportion to its size than Massachusetts, and needs a larger proportionate circulation.

The question which you have under consideration is one in which I take considerable inte rest, which must be my apology for ying as much as I have as to the manner in which it would be advisable to effect à réduction. I believe the witharawal of circulation from existing banks is not favored by Mr. Clarke in any shape. In his absence I do not propose to express any opinion as to the main question, but merely to offer a suggestion as to the manner of effecting the object proposed by your bill. I have the honor to be, very respectfully, yours

H. R. HULBURD,

Hon. JOHN SHERMAN, United States Senate.

Deputy Comptroller

List of banks showing reduction of circulation under amendment proposed by Senate bill No. 254. MAINE.-First National Bank of Portland $65,000.

VERMONT.-First National Bank of North Bennington $50,000.

MASSACHUSETTS. -Fir.t National Bank of Boston $100.000, National Bank of the Republic, Boston, $100,000, Boston North Bank $75,000, Hide and Leather Bank, Boston $100,0000, Merchants' Bask, Boston $750,000, Marke: Bank, Boston $80,000, Black-tone Bank, Boston $100.000, Redemption Bank, Boston $100,000, Continental Bink, Boston $50,000 North Bank, Boston $100,000, Exchange Bank, Boston $100,000), Eliot Bank, Bo-ton $100,000, Boyi-ton Bank, Boston $50,0 0, Commerce Bank, Boston $300,000, Howard National Bank of Boston $50,000. Shawmut Bank, Boston $75.00, Washington Bank, Boston $75,000. Hamilton Bank, Boston $50,000, Globe Bank, Bos on $100,000, New England Bank, Boston $100,000, City Bank, Boston $100,000, Tremont Bank, Boston $300,000, Suffolk Bank, Boston $225,000. Ailantic Bank, Boston $50,000, Shoe and Leather Bank, Boston $100,000, Atlas Bank, Boston $100,000, Freeman's Bank, Boston $40,000, North America Bank, Boston $75,000. Maverick Bank, Boston $40,01 0, Massachusetts Bank, Boston $50,000, Union Bank, Boston $100,000, Eagle Bank. Boston $100,000, Old Bank, Boston $90,000, Montgomery National Bank of Norristown $40.000, State National Bank of Boston $300,000, Columbian Bank of Bo-to $100.000, First National Bank of Fall River $40,000, Third National Bank of Sringfield $50,000, Second National Bank of Bo-ton $100,000, First National Bank of Northampton $10,000, Worcester National Bank $50,000. City National Bank, Worcester $10,000, Fall River National Bank $40,0 0, Ware National Bank $35,000, A-iatic National Bank, Salem $31,500, Bunker National Bank, Charlestown $50,000, Naumkeag National Bank, alem $50,000, Bristol County National Bank, Taunton $50,000, Bay State National Bank, Lawrence $37,500, Northampton National Bank $40,000, Adams National Bark, North Adams $35,000, Pittsfield National Bank $50,000, Mechanics' National Bank, Worcester $35,000. Total, $5,169,000.

RHODE ISLAND.-Second National Bank of Providence $50,000, Third National Bank of Providence $40,000, Fourth Natlonal Bank of Providence $35,000, Phoenix National Bank, Providence $45,000, Mechanics' National Bank, Providence $50,000, Eagle National Bank Providence $50,000, North American National Bank Providence $87,300, Merchants' National Bank Providence $93,950, Old National Bank, Providence $50,000, Weybosset National Bank, Providence $50,000, Manufacturers' National Bank Providence $50,000, City National Bank Providence $45.000 Total $646,250.

CONNECTICUT.-First National Bank of New Haven $50,000, First National Bank of Hartford $50,000, Second National Bank of New Haven $100,000, Exchange National Bank Hartford $50,000, First National Bank of Norwich $50.000, Charter Oak National Bank, Hartford $50,000, Thames National Bank, Norwich $100,000, Phoenix National Bank Hartford $152,610, Waterbury National Bank $50,000, Yale National Bank New Haven $50,000, Middlesex County National Bank Middletown $35,000, Commercial National Bank Bridgeport $33,210, Danbury National Bank $32,700, Merchants' National Bank New Haven $50,000, Middletown National Bank $36,930, National New Haven Bank $46,480, New Haven Co. Nat. Bank $35,000.-Total $971,930. NEW YORK.--First National Bank ol City of New York $50,000, Third $100,000, Fourth $1,000,000, Mercantile National $100,000, Tenth $100,000, Central $750,000, Ninth $100,000, Broadway $100,000. Commerce $2,000,000, American $50.000. Park $300,000, Tradesmen'- $100,000, Shoe and Leather $225,000, Market $100,000, St. Nicholas $100,000, Seventh Ward $50,000, Republic $300,000, Mechanics' $50,000, Merchants' Exchange $185.250, Metropolitan 80,000, Marine $40,000, Ocean $100,000, National Bank of Newburgh $80.000, Troy City $50,000. Fallkill National Baak $40,000, First National Bank of Poughkeepsie $40,000, First Brooklyn $50,000, Highland, of Newburgh $45,000, Union, of Albany $5,000, New York State, of Albany $35,000, Union, of Rochester $10,000, Albany City $50,000, Commercial, of Albany $50,000. Mechanics and Farmers' of Albany $35,000, Farmers' nd Manufacturers', of Poughkeepsie $10,000, Lake Ontario, of Oswego, $32,500, Oneida, of Utica $40,000.-Total $7,373,750.

PENNSYLVANIA.-First National of Philadelphia $100,000. Farmers's and Mechnaics' $200,000, Philadelphia National Bank $225,000, Pennsylvania $35.000, Northern Liberties $50,000, Corn Exchange $50,000. City $40,000, Commercial $81,000, Girard $100,000, North American $100.000, Mechanics $80,000, Merchants and Manufacturers' $80,000, Columbian, $50,000, Western$40,000, Central $75,000, Miners', of Pottsville, $59,000, Pittsburgh National Bank of Commerce $50,000, Iron City, of Pittsburgh, $40,000, Tradesmen's $40,000, Farmers' of Reading $40,000, Mechanics' of Pittsburgh $50,000, Allegheny, of do. $50,000, People's, of Pittsburgh $100,000, Exchange of Pittsburgh $100,000, York National Bank $50,000, First National of Fittsburgh $50,000, Citizens of Pittsburgh $50,000, Farmers' of Lancaster $45.000, First National of Easton $40.000, Easton $40,000, First Mauch Chunck $10,000, First National of Pittsburgh $50.000, Second Wilkesbarre $40,000, First Allegheny $35,000, Third of Pittsburgh, $40,000.-Total $2,406,000.

OHIO.-Third National Bank Cincinnati, $50,000, First National Bank Cincinnati $100,000, Commercial National Bank Cincinnati $50,000, Central National Bank Cincinnati $50,000, Ohio National Bank Cincinnati $50,000, Merchants' Netio al Bank of Cleveland $50,000, Merchants' National Bank of Cincinnati $50,000. Total $400,000.

INDIANA.-Indiana National Bank of Indianapolis $40,000, Merchants' National Bank of Evansville $35,000, First National Bank of Evansville $50,000, First National Bank of Indianapolis $50,000, Indianapolis National Bank $50,000. Total $225,000.

ILLINOIS.-Union National Bank of Chicago $50,000, Fifth National Bank of Chicago $50,000, Western National Bank of Chicago $50,000, First National Bank of Chicago $100,000. Third National Bank of Chicago $75,000, Mrchants National Bank of Chicago $45,000. Total $370,000. MARYLAND. First National Bank of Baltimore $166,500, Second National Bank of Baltimore $35,000, Citizens' National Bank of Baltimore $50,000, National Bank of Baltimore $181,605, Union Bank of Maryland Baltimore $188,810, Farmers and Planters' Bank Baltimore $80,000, Western Bank Baltimore $50,000, Merchants' Bank of Baltimore $225,000, Farmers and Merchants' Bank of Baltimore $65,000. Total $1,041,915.

NEW JERSEY.-Newark City National Bank $35,000, Mechanics' Bank of Newark $50,000, Newark Banking Company $50,000, Mechanics' Bank of Trenton $35,000, National State Bank of Elizabeth $40,000, First National Bank of Jersey City $40,000, First National Bank of Trenton $50,000. Total $310,000.

KENTUCKY.-First National Bank of Covington $50,000.

DISTRICT OF COLUMBIA.-First National Bank of Washington $50,000, Metropolitan Bank of Washington $35,000. Total $85,0 0

MISSOURI.-Union Bank of St. Louis $50,000, Merchants' Bank of St. Louis $70,000, Third National Bank of St. Louis $157,350. Total $277.350.

LOUISIANA.-First National Bank of New Orleans $50,000, National Bank of New Orleans $100,000. Total $150,000.

DELAWARE.-First National Bank of Wilmington $40,000.

WEST VIRGINIA.-Merchants' Bank of West Virginia Wheeling $50,000.

GEORGIA. National ank of Augusta 50,000.

MICHIGAN.-First National Bank of Detroit $100,000.

Aggregate reduction of circulation under amendment proposed by Sena e Bill No. 254 $19,795,195.

In addition to the foregoing, banks received circulation equal in amount to their capi tal before the amendment of March 3, 1865, took effect, which would be withdrawn under the proposed reduction, as follows, viz:

$143,220

39,200

14,500

87,900

4,500

12,500

49,920 Minnesota 174,000

52,000

35,000

1,334,095

5,000

The total amount to be withdrawn from each State would be as follows:

In every market of Europe the strained and ominous condition of political affairs in Germany is beginning to be very seriously felt. The outbreak of positive hostilities between the two great German powers, disastrous as its effects would be, could hardly produce a more wide-spread prostration, financial and commercial, than a protracted "devil's truce" like that which now actually exists, is sure to bring about. The exchequer of Prussia is certainly in a more favorable condition than that of her imperial rival, and the Prussian artillery is admitted to be superior to the Austrian, notwithstanding the severe lessons which the Court of Vienna received in regard to the increased importance of that arm of the military service, from the Napoleon guns of the French, during the late Italian war. But Austria has upon her side, not only the resources of a population more than double that of her ambitious and arrogant Northern rival, but the amazing good fortune also of the most obstinate, the most ill-advised, but the most successful ruling family of the world.

As in the Iliad, so in modern history, the favor of Venus seems to be more important even to warlike princes, than the friendship of Mars. The House of Hapsburg has won by the heart more than it has lost by the head for ages past; and it can hardly be called a vagary of superstition to suggest that if Austria goes into the impending European war, against every rule of reason and every counsel of prudence, she may very probably come out of it against every anticipation of sound judg ment and common sense.

The Austrian finances can hardly be made worse by the most costly and exhausting war. Unless France and Russia should be dragged into the vortex of the strife, which, though it be possible, is no more likely, than it was in 1854 that Austria and Prussia should be drawn into the Crimean conflict, even an unsuccessful war with Prussia would hardly result in the loss of any of the German provinces, which are the true strength of the Austrian empire, while a successful war with Prussia would definitively give to the Court of Vienna a decisive and preponderating authority in the German confederation. Were Italy to become involved in the conflict, Austria might, indeed, suffer the loss of her trans-Alpine possessions; but that loss would be, in truth, a permanent gain to the empire; and there are statesmen in Vienna who are capable of regarding it as a special blessing that Austria should be enabled to surrender with honor a hold upon Venetia, which it wastes her best strength now to retain.

To be driven out of the Quadrilateral by the overwhelming force of a combined attack from two such powers as Italy and Prussia, one of them far more than a match for her by sea, and the other at least her equal by land, would inflict no serious damage upon the military prestige of Austria, while it would put her into a position to carry out that process of temperate centralization in which lies her hope for the future, and in which it is beginning to be clear that she may count upon the aid and co-operation of the most intelligent and influential classes, not in her German provinces only, but throughout Hungary, Croatia, Transylvania, and Gallicia also.

So long as Austria retains her Venetian dominions the reactionary military element must keep its place in her councils to the grave detriment of her best interests. Relieved from this incubus upon her progress there is no reason for her to despair of a rapid advance to a commercial and financial rank proportionate to her enormous natural wealth and to the importance of her geographical position, an importance of which the extraordinary recent growth of her Adriatic port of Trieste gives us not indeed an adequate measure but a most significant indication. The rumors of a practical alliance between Prussia and France for the dismemberment and prostration of Austria are as improbable as are the stories of a similar alliance for a similar end between Russia and Prussia. France indeed may desire to see Prussia so far successful in an attack upon Austria as would justify Napoleon in declaring that the safety of France requires the "rectification" of the French frontier upon the Rhine, precisely as the consolidation of Italy required the "rectification" of the French frontier upon the Alps; but it is as absurd to suppose that a French sovereign will seriously contribute to the concentration of thirty millions of Germans under the Prussian crown, as it is to suppose that a Russian sovereign can desire to see Austria crowded out of Germany and forced into becoming an overwhelmingly Oriental Power.

The quarrel of the German Powers is indeed the opportunity of their formidable neighbors; but it is the opportunity not of one nor two but of all of those neighbors, and from this simple fact it results that however severely the storm may rage for a time, it is tolerably certain at the end to leave neither of the States engaged, seriously and permanently weakened to the permanent and serious advantage of the other. For while France necessarily wishes to see Austria maintain a position from which she can act as a permanent check upon the consolidation of Germany, it is important to Russia that Prussia should be always strong enough to thwart any possible Austrian attempt at territorial aggrandizement in the direction either of the Elba or the Danube. The conflicting ambitions of France, Italy and Russia, therefore, may be relied upon to neutralize each other so far as to make it the common interest of all these powers to prevent either Prussia or Austria from being absɔlutely victorious or absolutely crushed in their imminent collision.

There will be a terrible waste of money and of men on both sides. Italy, probably, and possibly France may gain positive accessions of territory in the final adjustment of the consequences of the war. Prussia will pretty certainly miss that prize of imperial aggrandizement which the reckless and unscrupulous Count Bismark seems to have set his heart upon winning for her; while Austria, if she is forced to surren

der Venetia, may eventually learn to regard that loss alone as a handsome return for all the treasure and blood invested by her in a war the prospect of which amazes and disgusts all Europe, so scandalous were the circumstances which first made it possible, and so disgraceful have been the folly and perverseness which have developed that original possibility into the most alarming probability of the hour.

THE STATE TAX ON SALES.

The commercial public are taken by surprise with the discovery that, at the late session of the Legislature, a bill was passed imposing heavy taxes upon transactions of brokers and auctioneers. The measure was smuggled through with a secresy which indicates that its promoters were afraid to have it submitted to the test of public opinion, and with a suddenness which shows that it was deemed unsafe to admit the discussion of its merits. The main features of the bill consist in the imposition of the following rates of duty upon the sales of brokers and auction

eers:

First-All wines and ardent spirits, foreign or domestic, at the rate of $1 on every $100.

Second-All goods, wares, merchandise and effects imported from any place beyond the Cape of Good Hope, at the rate of fifty cents on every $100.

Third-All other goods, wares, merchandise or effects which are the production of any foreign country, at the rate of seventy-five cents on every $100.

Probably the sales and resales at New York of the classes of commodities here subjected to tax will not aggregate below $600,000,000 per annum. On a large proportion of the products the wholesale profits are very light; so that a tax of @1 per cent amounts to a serious drawback upon the gains of the merchant. The duty would, of course, have to be charged by the agent upon the buyer or seller. If upon the seller, he would find it unremunerative to continue his business, and would either remove to some place where he could supply his customers free from the tax, or employ his capital in some other manner. If upon the buyer, he would prefer making his purchases at Boston or Philadel phia, where commerce is free from such imposts. In either case, the trade of New York would inevitably be seriously damaged. A duty of @1 per cent upon wholesale transactions is quite sufficient to render an important proportion of the trade of this city unprofitable; and having that effect, its ultimate result would be to banish a large amount of our business to other cities. For years, Boston held a comparative monopoly of the trade in Eastern products; the municipal authorities imposed a tax of per cent upon sales of teas, and ever since, that important trade has been held by New York merchants. The policy of our own Legislature is to drive that branch of commerce, and other branches along with it, back again to Boston, by the imposition of a duty double that which banished it from thence. In the foreign wool trade there has always been a close competition between this city and Boston. The New England metropolis has an important advantage in being nearer to the manufacturers of that section than New York, and it has been only by dint of superior enterprise that the wool brokers of