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not seem to me there is any special necessity for our recommending this to Congress; I was about to move that this resolution be laid upon the table.

Mr. BUCHANAN, of Trenton: It seems to me there are three questions to be considered, and to be considered with some care by this body, before we vote upon this subject. Whilst it is true that Congress does not depend upon this body to instruct it as to the constitutionality or unconstitutionality of any such law which we may request it to pass, at the same time we do not want to favor anything unconstitutional.

It seems to me the three questions to be considered here, and they ought to be considered with some care, are these: First. What is the New York law? I don't know. Second. Is it within the constitutional power of Congress to pass such a law for the whole country? and

Third. Would the advantages to the mercantile community of such a law overbalance the disadvantages?

Upon those three questions I do not pretend to be well informed. As to the constitutional power of Congress to pass this law, my first impressions are against it. I say, and say carefully and guardedly, my first impressions are against it. It seems to me that if, under that general clause in the Constitution which has been referred to here, the Congress of the United States can pass a law of this character it can pass laws superseding the whole round of State legislation touching trade and commerce, and nine-tenths, or a large proportion, of State legislation does touch trade and

commerce.

It seems to me that we ought to consider that question with care, and we ought to know something more about the structure of the New York law. This resolution recommends Congress to pass a law similar to that in force in New York. We have been told generally its general object, but that is all we know in reference to it; and, as to the advantages or disadvantages, I do not profess to be informed; but, it seems to me, that it is a subject that is of a great deal of magnitude, far-reaching in its effects. I would like to have more light upon it before voting.

Mr. STRANAHAN, of New York: I know something about this question, just enough to be fully aware that it is of a good deal of importance, and ought not to be acted upon hastily; and still I think it deserving of action at the proper time.

I move you that it be referred to the Council, and placed upon the programme for action at the next meeting of this Board, and I have the assent of Captain SNOW to that end.

The motion to lay on the table was withdrawn, and that of Mr. STRANAHAN unanimously adopted.

A recess was taken, and the Board reassembled at two o'clock, P. M.

Mr. YOUNG, of Baltimore: Before proceeding to the next proposition I desire to submit a resolution which will elicit no discussion at all, for my intention is to have it referred to the Executive Council at once. I say so for this reason, that it is in relation to the subject of bank taxation. I understand that the proper Com

mittee of the House of Representatives has that question under discussion, and I think it is peculiarly opportune that this Board should make known its wishes on the subject.

Resolved, That Congress be requested to enact such legislation as will relieve the banks operating under the National Banking Law from the tax on deposits and that on circulation, to the end that they may be in position to purchase liberally of the bonds proposed to be issued shortly by the Government at a low rate of interest, and use the same as a basis for such additional circulation as may be necessary to meet the wants of the business community.

The resolution was referred to the Executive Council.

Mr. SNOW, of New York: I beg the indulgence of the Board, before taking up the regular business, to offer a resolution which I would like to have passed. I think there is no reason why there should be any debate on it at all. It is such a resolution as has been passed by several constituent members of this body.

Resolved, That it is the sense of this Board that Congress should, without delay, provide for the distribution of the balance of the Geneva award.

The rules were suspended, and the resolution was unanimously adopted.

Mr. ARNOUX, of New York, from the Committee on Bankrupt Law, reported back the following resolutions: The Committee appointed to consider the subject of a National

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Bankrupt Law, under propositions IX. to XIII. on the official programme, report the following resolutions which they recommend for the adoption of the Board:

Resolved, That the National Board of Trade most respectfully recommends to Congress the enactment of a permanent National Bankrupt Law.

Resolved, That copies of the foregoing resolution be sent by the Secretary, to members of Congress and to the Judiciary Committees.

Mr. ARNOUX, of New York: When we came to discuss the matter, finding that our time was so limited that it would be impossible for us to properly consider a bill so elaborate, and having so many sections as this bill of Judge LOWELL's, we concluded to report the resolutions just read.

The rules were suspended, and the Board proceeded to the consideration of the resolutions, which were adopted.

The following resolution was also adopted:

Resolved, That the whole subject of the form and matter of a Bankrupt Law be referred to the Executive Council, for its deliberate consideration and action.

Mr. YOUNG, of Baltimore: A desire has been expressed I don't know whether I am clearly in order in what I am going to suggest, or not — but a desire has been expressed by several members of the Board, that the resolution which I introduced in regard to the taxation upon the circulation of, and deposits in, the banks, shall be acted upon immediately; would it be in order to take it up?

The former action of the Board was reconsidered, and the motion to refer to the Executive Council was disagreed to.

Mr. YOUNG, of Baltimore: This subject is so well understood, especially by those who are connected with banks in any capacity, whether as executive officers or as directors, as to need but a few words of explanation.

You are all very well aware what an impetus was given to the sale of the original 5-20 bonds, bearing 6 per cent. interest, when the banks themselves took hold of them in such large volume. It

influenced the community generally, outside of the patriotic motives of those who purchased them purely for investment. It was an endorsement by the banks which gave the public general confidence in them.

It was perfectly competent for the banks in those days to buy those bonds, to be subjected to all the taxes which the banks have paid from that day to the present day, and are still paying to the Government. Some few of the banks still hold S's of '81, and the 5's, which will mature sometime during the next year, also. After those bonds are surrendered, it will be utterly impracticable, as I understand the subject, for these national banks to continue their circulation. They cannot take bonds at 3 per cent., or 31⁄2 per cent., whatever the rate which shall be agreed upon, and pay this tax on circulation; and the tax on deposits, I presume, they will not pay under any circumstances. But I do apprehend, that if the taxes are so modified as to make it an inducement with the banks to take these 3 and 3 per cent., which I think they will do if they are relieved from these two subjects of taxation,—I believe they would take hold of them very cheerfully and very willingly, and that it would be a source of profit to them. If these taxes are not abolished, I do think, sir, that the national bank circulation will be entirely withdrawn from existence, for I do not think it possible for the banks to continue to live.

Mr. ARNOUX, of New York: I would like to make a suggestion to strike out the word additional, and to let it read, "for such circulation as may be necessary," because this would seem to imply that it could not be used in substitution of bonds for present circulation.

The amendment was accepted.

Mr. HoYT, of New York: It seems to me that there has been no question that has come before this body that is of more importance than this one that is presented in this resolution. It is wellknown that during the existence of the war, the whole community, in every direction, were taxed exceedingly heavy; and though these were termed war taxes, and were levied for the purpose of sustaining the Government during the suppression of the rebellion, and though since that time the revenues of the Government have been so abundant that these taxes have been taken off from nearly

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every industry of the country except, perhaps, tobacco and whiskey, and even from those articles to some extent, yet so far as the banks are concerned, there has not been the slightest relief from the heaviest taxation incurred during the war. In order to illustrate the severity of these taxes I will simply state facts that have occurred in a bank with which I am personally connected. I speak of the Park Bank of the city of New York. The present taxes in the aggregate for that bank amount to about 8 per cent. per annum upon the capital of the bank. In other words, it has cost the bank from $150,000 to $160,000 a year to pay the Government and the State and Municipal taxation, making 8 per cent. upon a capital of $2,000,000.

Now, this bank, when this law was enacted, and perhaps for sometime afterwards, had a surplus of $1,400,000 to its credit. During the operation of these heavy taxes, and from the results of the panic, that large surplus was swept away almost entirely, I will not say entirely; but reduced to less than 20 per cent. It was 70 per cent. on the capital, and it was reduced to less than 20 per cent. by the operation in part of these excessive taxes. That bank was in the habit of paying from 10 to 14 per cent. ; but the dividends have been reduced to 6 per cent. per annum; and today, as the bank is progressing, the amount of the deposits they have is about twenty-three or twenty-four millions of dollars; and this tax to the National Government amounts alone to $120,000 per

annum.

Now, they have felt that, for many years past, the Government should relieve them from this excessive taxation, but up to this day it has not done so. The taxes are of such an excessive character that it seems impossible for the banks to make reasonable dividends to stockholders with this inordinate and excessive taxation upon them; and it does seem to me that it is reasonable and right and just that the present Congress should take action in the matter, and relieve the banks from this heavy load they are now carrying. We all know that the bank capital of the city of New York has been largely reduced-I think between ten and fifteen millions of dollars-in consequence of this fact; and that several banks there have been utterly ruined, and, throughout the country, many have been ruined partly by this means; and that the demand for the reduction of this tax, or taking it off, is such that every honest man must feel and realize, and every one who understands