Date. Feb 2,... 46 9,... 16,... 46 23,... Mar. 2,... 9,... 16,. "23,. "30,... Apr. 6,... 13,... "20,... "27,... May 4,... 11,... "18,... 25,... June 1,..: 8,.. June 15,... 22,... July 6,... 13,... 20,... 46 27,... Aug. 3,... 46 10.... 66 17,... 16 31,... Sept 7,... 14,... 21,... Specie. Circulation. Deposits. 37,268,894 4,562,580 4,181,503 29,231,753 37,336,367 4,319,706 4,039,918 28,062,164 37,710,851 4,272,347 3,888,185 28,759,049 7,452,563 2,432,073 37,720,460 4,276,761 3,772,781 29,342,596 7,413,249 2,703,196 37,901,080 4,267,626 3,696,097 30,178,518 7,185,670 2,758,852 38,603,871 4,249,035 3,608,870 30,679,259 7,100,258 2,499,139 39,260,028 4,247,817 3,534,880 30,549,587 7,476,603 1,939,449 39,458,384 4,247,688 3,295,862 30,106,135 7,418,482 1,935,014 38,937,612 4,311,704 3,369,194 29,171,283 6,504,758 2,158,007 37,516,520 4,339,252 3,374,417 29,531,559 5,768,558 2,770,129 36,250,402 4,343,242 3,296,685 30,117,527 5,953,809 3,014,229 36,295,644 4,343,988 3,185,042 31,059,644 5,306,809 8,018,727 36,482,058 4,346,377 3,078,921 31,021,799 5,448,124 2,559,868 36,587,294 4,355,324 2,989,428 30,859,231 5,328,898 2,891,087 36,593,179 4,359 365 2,901,600 30,949,781 4,975,939 2,542,792 36,887,301 4,357,119 2,866,121 31,892,308 4,640,623 2,536,279 37,116,093 4,357,169 2,808,109 32,455,953 4,623,392 2,480,714 37,143,937 4,357,021 2,706,953 31,888,763 4,707,278 2,363,548 87,157,769 4,357,076 2,649,283 31,549,339 4,645,712 2,313,744 27,228,627 4,357,025 2,621,098 31,648,959 4,914,425 2,892,278 37,219,216 4,356,744 2,596,115 31,293,830 4,868,495 2,065,918 37,250,665 4,359,543 2,556,855 31,466,204 5,116,692 1,820,600 35,936,811 4,360,745 2,564,558 28,504,544 5,060,096 1,961,814 34,866,842 4,360,003 2,507,253 28,701,813 4,784,343 2,530,552 34,662,966 4,361,999 2,482,986 29,931,608 4,580,322 2,981,867 34,517,347 4,227,448 2,418,463 30,448,430 4,805,045 3,034,009 34,390,179 4,187,056 2,417,739 30,799,448 4,963,290 2,772,717. 34,645,243 4,112,013 2,380,720 30,513,961 4,740,391 2,538,096 35,390,179 4,112,542 2,353,396 29,959,127 5,161,573 2,158,440 35,296,376 4,113,309 2,292,60730,195,167 4,551,031 2,219,071 35,773,596 4,113,162 2,258,306 30,654,672 4,574,037 1,997,584 39,575,410 4,103,115 2,223,533 33,626,702 4,997,015 1,801,678 40,175,698 4,102,701 2,224,632 33,039,035 5,079,742 1,802,889 59,485,313 4,116,683 2,224,374 32,402,783 4,616,754 1,822,228 38,798,830 4,227,265 2,193,000 32,258,554 4,427,097 1,976,561 39,046,434 4,239,551 2,169,314 32,536,502 4,446,684 2,035,819 38,833,337 4,238,677 2,159,638 32,684,915 4,361,072 1,926,707 The following is a statement of the amount of United States legal tender notes held by the Philadelphia banks at the dates mentioned: EUROPEAN FINANCES-BANK OF ENGLAND RETURNS.-The past month, (October 8,) the Bank of France raised its rate of discount to five per cent, a considerable amount of specie having been taken from the bank. We take the following from the London Economist, as it represents pretty fully the alarming condition of the London and Paris money markets, together with the cause and future prospects. It will be remembered that the Bank of France makes its returns not weekly, but monthly: The condition of the Bank of France is not, indeed, very alarming; there is not enough to excite a panic; but it is impossible not to see that there must have been much in it to cause apprehension for some time past. It is only at the moment before publication that the rate of discount has been raised. It is impossible to imagine a greater censure on the present managers. They are willing to suffer in silence and inaction a progressive drain till the moment at which it is known; and just before it becomes known, they take in haste the steps which ought to have been taken long since, and which would have been measures of precaution, if they had been so taken. The account is this, in comparison with that of last year: -which should have caused caution lately, but which should not cause panic now. If we turn to the account of the Bank of England, we find that it has been affected by several circumstances, but that, even after allowing for those circumstances, it is not in a satisfactory state. The figures relating to the banking department are: It is true that the reserve is always low at this season of the year; that the close of the quarter always augments the active circulation of notes and the circulation of coin; that, on the whole, this period is not favorable to the position of the Bank; still the mere figures, after every explanation and mitigation, are far worse than any to which we have long been accustomed. The reserve is much less than one-third of its liabilities, and one-third is the very minimum with which the Bank ought ever to be content, and of late it has usually been nearer to one-half. As to the absorption of sovereigns, of which so much has been said, we have heard that there is nothing unusual in it. We believe that the issue of sovereigns at the Bank between the beginning of April and the end of October was nearly six millions in 1861, nearly seven millions and a-half in 1862, and that it has been only about six millions since the beginning of April to the present time. There is, therefore, no absorption of sovereigns to be accounted for, and the various recondite speculations on that head are so much waste paper. Much more serious matter remains. We now have: Although the rate of discount, as will be seen by the comparative table in our city article, is considerably higher now than it was last year, still such a reduction of bullion in the two banks together (which, now that the two money markets are so closely connected together, and practically so very near, should for many purposes be added together) must necessarily make the money market of both countries sensitive and delicate. The liabilities of Europe, and of England perhaps especially, are large. The demand for bullion for India must be considerable: In 1862 we imported up to 31st July, (the last date to which we have the figures) of cotton from India ........ In 1863 .. £4,883,899 11,950,999 And from "other countries," which are really barbarous countries, and therefore absorb bullion more or less, we imported Of raw cotton in 1862.. Of raw cotton in 1863. and all this must be paid for. £991,858 3,673,347 The number of continental schemes and engagements (for solvent individuals have subscribed to them) is very large, and they will undoubtedly pull heavily on our store of actual cash. Many of them are banks or loan societies in rude countries, and whenever cash is lent in or taken to such communities, it is long before more civilized nations see it again. The greater part of the companies which have been started have not absorbed much capital, and have taken abroad little money, and we have good reason to believe that the public have shown lately a discretion in their investments far surpassing that of any previous period. But, nevertheles, we have been gradually engaging ourselves in many foreign undertakings which will cause a very important demand on our bullion. On the other hand, the effect of our good harvest-at least, of the expectation of it is already written in the Board of Trade tables. We imported up to July 31st: Too much credit however must not be taken for this circumstance in face of the general liabilities we have enumerated. It will especially be for the Bank of England not to delay too long to raise the value of money in the face of large immediate demands, and of a higher rate offered for money by its principal competitor. BANK OF ENGLAND. The following comparative table will be of interest, affording as it does a view of the bank returns, the bank rate of discount, and the price of wheat in London during a period of three years corresponding with the date of our last returns, October 7th: ber 7th, 1863: 42s. 2d. Subjoined is our usual table with the returns brought down to Octo Dec. 17... £19,932,360 £8,507,144 £14,033,994 £30,539,363 £15,031,658 3 pr. ct. 86 24... 20,150,398 8,654,499 14,306,497 31,346,781 14,870,795 3 31... 20,516,435 8,338,717 15,469,254 32,488,020 14,956,421 3 21... 20,893,931 4,965,798 14,993,225 30,227,086 7... 20,927,993 8,782,808 14,393,308 32,620,233 14,635,555 3 66 66 Date. 66 28... Feb. 4... 66 11... 46 18... 25... Mar. 4... 11... 17... 66 24... 46 15... 44 22... 29... May 6... 20... 13... 27... Public Circulation. Deposits. Deposits. Securities. 20,771,236 5,416,863 14,414,763 30,238,865 20,709,154 6,351,617 13,852,287 29,997,233 13,692,136 5 20,444,454 6,952,808 13,596,356 30,288,406 14,070,651 5 19,916,496 7,413,275 13,769,276 29,890,503 14,589,222 4 19,715,828 7,901,658 13,367,153 29,709,079 14,614,096 4 20,322,055 8,036,003 13,368,086 30,880,805 14,504,517 4 19,801,665 8,673,899 13,282,605 81,096,327 14,328,178 4 20,012,331 9,343,499 13,003,088 31,482,170 14,547,812 4 20,136,276 10,364,471 12,742,282 31,896,338 15,025,274 4 Apr. 1... 20,965,228 10,107,041 18,172,090 32,775,752 15,141,755 4 8... 21,279,339 6,714,109 11,829,832 30,946,784 14,963,835 21,326,S20 5,769,276 15,013,391 29,974,677 15,229,237 4 21,413,226 6,316,413 14,739,897 30,182,533 15,387,151 3 21,452,800 7,178,312 13,606,939 29,994,849 15,348,492 34 21,376,999 7,241,739 13,122,087 29,718,602 15,141,760 3 21,252,916 6,735,137 13,727,556 30,201,120 14,653,141 3 21,268,315 7,610,278 13,983,654 31,484,815 14,529,451 4 20,909,819 8,002,346 13,842,718 81,412,190 14,500,019 4 21,009,392 8,779,387 13,896,450 32,389,044 14,425,553 4 21,080,460 9,782,830 13,783,263 33,240,192 14,556,121 4 20,655,478 9,882,135 13,904,506 32,750,953 14,850,156 4 20,525,655 10,279,053 13,809,996 32,756,459 15,026,118 4 16,274,739 36,490,515 15,080,271 4 22,038,478 5,593,834 18,595,718 34,647,336, 14,824,969 4 22,194,996 4,918,458 16,381,914 32,052,521 14,749,876 4 22,230,612 5,386,948 14,675,625 30,975,774 14,620,872 4 22,340,809 5,577,268 13,790,855 30,289,227 14,843,185 4 12 .. 21,937,198 5,754,863 13,578,358 29,657,833 15,040,819 4 19... 22,003,176 6,126,668 13,005,322 29,503,127 15,081,152 4 12,806,568 29,322,757 15,309,384 4 13,261,512 30,180,384 15,494,219 4 12,909,484 29,919,543 15,345,488 4 13,484,939 30,601,940 15,461,566 4 12,859,580 80,960,809 15,532.838 4 18,717,460 33,751,403 15,277,885 4 RETURNS OF THE CANADA BANKS.-We give below the Auditor's statement of the banks of Canada for January, May, August, and September, OFFICIAL LETTER OF CONTROLLER MCCULLOUGH. ANSWERS OF THE CONTROLLER OF THE CURRENCY TO QUESTIONS IN RELATION TO THE NATIONAL CURRENCY ACT. We publish the following important Government document, as it forms a prominent feature in the financial history of the times, and should be preserved. TREASURY DEPARTMENT, OFFICE OF CONTROLLER OF THE CURRENCY, WASHINGTON, July 14, 1863. Most of the questions presented to the Controller, in regard to the National Currency Act, have been answered in the forms and instructions which have been sent from this office, and by letters to the interrogators. There are a few, however; that can be more conveniently and satisfactorily answered in this form than in any other. 1st Question. Is there any "reasonable doubt" of the constitutionality of this Act? Answer. The constitutionality of the Act of Congress establishing, in time of peace, a United States Bank, with power to locate in the States branches thereof, having been affirmatively decided by the Supreme Court of the United States, the constitutionality of the National Currency Act is not considered to be an open question. In ordinary times the constitutionality of this Act would hardly be questioned; but in the existing emergency of the Government, engaged, as it is, in a war of gigantic proportions-with specie no longer a circulating medium-with a large internal revenue to be collected in the States and Territories, such a currency as is provided for in this Act is an absolute necessity. To deny to the Government, through such agencies as Congress might create, the power to provide a currency based upon its own resources, would be not only to deny its sovereignty, but its authority to perform properly and safely its acknowledged functions. 2d Question. What are stockholders of State Banks to gain by discontinuing their present organizations, and organizing under the national law? Answer. The chief gain will be in a circulation of notes, which cannot long be secured through the agency of State institutions. Legal tender notes have created a taste and prepared the way for a national bank note circulation. These notes, in all sections of the country, have a better credit and are in greater demand than the notes of the strongest banks. Country bankers, notwithstanding the largeness of the issue, find it difficult to supply the call for them, and are frequently under the necessity of ordering them, at considerable expense, from commercial points, to meet the demand that will not be satisfied with anything else. The preference for these notes is not chiefly to be attributed to the fact that they are a "legal tender," but to the fact that they are Government money, and must be good, if the Government is good. I do not say that their general credit is not, in a measure, owing to the fact that they are declared to be "lawful money," or that it was not necessary to make them so, to place them beyond the influences that might, at the time, have been combined to depreciate them; but I do say, that the people, who control the currency, as they do the legislation of the country, prefer legal tenders to bank notes, because they |