was $260,381,101, and the average value of gold, as above, being 155, the exchange was 170. The actual cost of the goods was then as follows: Thus the amount of money paid by consumers, exclusive of the profits of importers, jebbers, and retailers, internal transportation, insurance, etc., was $601,000,000 for a prime cost of $260,000,000, or 154 per cent average advance for the whole year; but the rate was much heavier in the last quarter than in the first. If we take the quantity of goods that paid duties in October and in June, and the amount of duties collected, the results are as follows: Thus doubling the duties in the spring only raised the average collected 5 per cent. A very large proportion of the goods that arrived in June, however, went into bond, as in April a very large quantity was taken out of bond to avoid the then expected duties. The currency rate of gold increased the cost paid by consumers, as follows: Thus the rise of 53 per cent in gold operated a rise of 83 per cent in the cost of goods; of this 5 per cent only was actual advance in the tax by the Government. It is manifest that so heavy an advance in the cost of goods must have produced a serious check in their consumption, and this has manifested itself in the decline of business for the autumn season. The slackness of business, which caused a diminished demand for gold for duties, also checked the demand for remittances abroad, and the movement was limited up to the approach of November, when the amount due abroad for interest on 5-20's fell due. The shipments then increased. The whole movement was as follows: Feb. 6 301,860 1,277,000 13 20 27 285,394 520,017 1,377,016 March 5 1,243,551 733,643 407,057 12 3,540,550 662,616 24,070,191 91 a $59,987 1,152,846 363,198 1,219,808 23.521,453 95 825,632 22,523,918 59 &... 531,700 22,301,687 165 a 61 629,803 21,220,653 61 a 661 465,920 20,750,495 62 a 62 &... 19 249,514 1,201,907 281,304 83,881 26 159,105 1,050,156 Apr. 2 250,778 473,385 273,429 168,912 19,527,665 634 a 71 20,924,287 67 a 29 21,687,670 71 a 89 24,868,203 721 a 79 24,087,343 77 a 85 71 a 81 22,635,155 614 a 76 73 a 85 22,000,898 99 a 130 16 2,190,781 560,677 21,206,685 115 a 180 341,883 21,080,309 152 a1594 48,009 20,794,268 155 al58 27 19,952,949 145 a157 20,136,547 131 a153 852,752 486,451 20,603,881 125 a143 669,733 20,065,180 114 a180 1,288,559 20,065,180 100 a126 Oct. 603,604 19,671,131 85 a1C5 287,758 20,066,557 89 a100 15 239,491 20,522,032 99 a108 616,456 21,010,360 110 a115 21,078,307 1094a120 646,017 1 381,310 2,296,630 21,740,327 121a146 395,796 489,632 1,224,280 22,491,122 238 a260 1,545,165 21,438,959 2094a225 10,445,923 $58,879,548 10,963,530 42,499,017 The Treasurer gave notice in August that the interest on the November coupons would be advanced on application. Few, however, availed themselves of this offer. Those holding these bonds for investment, and using the interest for expenses, did not draw the gold until it was quite due, because it was safer in the Treasury than elsewhere, while others holding the bonds to sell would not draw the interest because the bond without the coupon was not saleable. Hence the amounts drawn before due were not large. The amount of specie in the city has been reported for four months as follows: This gives the amount of gold in the Treasury at the first of each month. Now if we take the amount received from customs in each mouth, and the amounts paid for interest, we shall have results as follows: ... June Total. Customs. $3,348,010 Kind Interest paid. of stock. $3,754.659- 68 '81 Thus the interest paid was more than the customs receipts of this port, and probably about equals the receipts at all the ports. But the receipts are now declining. Those for November give about $3,478,561 for the month, or $6,000,000 for the two months. The payments will be, for interest $9,360,000, and for principal of the Texan loan, $2,062,000, making $11,422,000, or thus for six months: From this it will be seen that if more gold bonds are issued, the Treasury will probably be required to buy gold, and there is therefore objection in some quarters to the further issue of such bonds. But when we remember the other alternative, we think no one can hesitate as to which course should be pursued. The question is reduced simply this-whether the Treasury shall buy gold or shall issue more paper? Which will increase the price, or more properly depreciate the currency most? We think there can be no doubt on this point. The course of paper is just now manifesting itself in the working of the national banking law, so that while the customs receipts are declining, the reservoirs of specie are being reduced. Those banks which are making arrangements to merge their business under the National Bank Law, with a view to escape the State laws in relation to local taxation and the ultimate payment of their notes in specie, were steadily selling their specie. On the 20th of October, the Philadelphia banks concluded to go under the national law. Those of Boston have, many of them, arrived at the same conclusion. The weekly returns show the following results of specie in bank: Thus those banks have sold 31 per cent of their specie in five weeks since they determined to go into the national system, which dispenses with specie altogether. The exports of specie out of the country in excess of all receipts has been for the same time as follows: The difficulties of the market gradually caused the price of foreign exchange to fix itself in gold, the bankers requiring payment in gold. During the last four weeks in the following table, therefore, the quotations are for the gold price. To find the currency price the premium on gold is to be added: 13, 274 a 283 2 15 a 2.07 a 98 a100 88 a 90 178 a 180 a 103 a105 91 a 93 184 a 185 a a.. 91 a 92 183 a 185 64 20, 278 a 2791 2.06 a 2.02 100 a 102 101 a103 91 a 924 183 a 184 The disposition to draw only for gold makes the exchange market more regular and satisfactory, and throws upon the importers the whole trouble of buying gold, cost of commissions, etc. The demand then is from importers for duties, and also for gold to pay for bills drawn. Commercial bills are sold to some extent for currency. JOURNAL OF BANKING, CURRENCY, AND FINANCE. STATE BANKS IN PHILADELPHIA RE-ORGANIZING UNDER NATIONAL LAW-NATIONAL BANK RITURNS INCREASE IN CAPITAL AND CIRCULATION-BOSTON AND NEW YORK STATE BANKS AND THE NATIONAL LAW-NATIONAL CIRCULATION, WHAT IS IT?-BANK OF COMMERCE TO BECOME A NATIONAL BANK, AND WHAT WILL BE ITS CIRCULATION-THE PROFITS OF BANKING UNDER NATIONAL ACT-NEW YORK, BOSTON AND PHILADELPHIA BANK RETURNS ACCOUNTS FROM ENGLAND MORE FAVORABLE-RETURNS OF BANK OF ENGLAND AND BANK OF FRANCE, ETC. The officers of the banks of Philadelphia, and many of those of Boston, have been constrained to make arrangements for re-organizing their banks under the National Bank Law, because of the expenses and local taxes that so eat up the profits of the local banks, that it requires 20 per cent. in earnings to pay 8 per cent. dividends. The tendency is, therefore, to make a change and become National banks. These banks are not taxed directly, but under the State laws the tax will fall upon the stockholder, which must be in proportion to other profits. But the advantages held out to the institutions of not paying specie, by being Treasury depositors, &c., are such as to counteract that tax. Other institutions will probably soon assume the national character before the limit allowed by the law is taken up by new institutions. The report of the National Banks, Oct. 1, was as follows. We also give the figures for July: CONDITION OF THE NATIONAL BANKS ON THE MORNING OF THE FIRST MONDAY OF 00TOBER AND OF JULY, A. D. 1864, BEFORE THE COMMENCEMENT OF BUSINESSS ON SAID |