now receive in exchange, lawful money, such as in the inception of the enterprise. be gave for them. The individual owning shares is thus clearly distinguished from the corporation owning capital. But Under our system banking (as well as other) corporations are taxed upon their capital, and the shares in the hands of owners are not taxed. To have conformed to the provisions of the act of Congress, our State law should have been so amended as to direct the taxation of the shares in State banks in the hands of shareholders. this was not done, and those shares remain to-day-what they have ever been-free from taxation. Having provided for taxing the shares in national associations, how shall we say that this is not at a higher rate than is imposed upon the shares in Statebanks, when no tax whatever is imposed upon the latter? Taxing the capital stock of State banks at the same rate with the shares in National banks will not relieve us, for the corporation that owns the capital stock may lawfully claim exemption upon so much as is invested in government stocks, while upon the shares in national associ ations there is no exemption. I cannot regard the distinction between taxing the capital of banks and taxing the shares of stock in banks as one in form only. Our whole asgument for taxing the shares in national banks rests upon the substantial character of this distinction. But if the distinction were of form only we should remember that where the sole authority for a proceeding is a provision of statute, and this provision prescribes the form of the proceeding, the matter of form becomes of essential importance. I am aware that the highest judicial authority of our state has disregarded the incompatibility between our state law and the law of Congress upon this question. But I am far from sanguine that the United States court, by whom the question must be finally adjudicated, will view the question so complacently. In any event, it is so easy to remove this question from the arena of discussion, in courts or elsewhere, that I earnestly urge upon the legislature to amend the laws of this State relating to the taxation of banks organized under its authority, in such manner that the same shall be strictly and unquestionably conformable to the requirements of the act of Congress in the particular above mentioned. * EMERSON W. KEYES, OHIO STATE DEBT.. The funded debt of Ohio shows a decrease of $1.985 258 89 during the fouryears ending November 15, 1865. The amounts in 1861 and 1865 compare as follows: These figures present a highly satisfactory condition of affairs. Not only has the State furnished the means for its own defense during the late four years war, and sustained its credit by the prompt payment of interest on its indebtedness but it has actually redeemed nearly $2,000,000 of the principal of the public debt' and the balance to credit of the sinking fund at the end of thelast fiscal year was $328,611 11, a sum nearly sufficient to pay all the interest that may accrue during the current year, without the aid of the actual income of the fund. DEBT OF THE STATE OF ILLINOIS. The Public Debt of the State of Illinois, on the 30th of December, 1865, was $9,982,961 49, against $11,121,564 45 on the corresponding date in 1864 -a decrease within a year of $1,138,602 96. The following is a detailed statement of the debt due on the 30th December, 1865: Ill. and Mich. canal bonds, dated 1837 and 1839, due after 1860, unregistered... $258,000 00 525,000 00 46,000 00 60,000 00 191,000 00 254,400 00 Ill. and Mich. canal bonds, £225 each, due after 1870, interest payable in New York, registered.. 85,000 00 Ill. and Mich. canal bonds, £225 each, due after 1970, interest payable in London, unregistered 25,200 00 Ill. and Mich. canal bonds refunded under act of 16 Fed., 1865, due after 1860.. Bank and Internal Improvement Bonds due after 1860. Internal Improvement Stock due after 1870. Liquidation Bonds due after 1865...... New Internal Improvement Stock du after 1870 New Internal Improvement Interest Bonds due after 1877 I. and Mich canal bonds, £100 each, due after 1870, interest payable in London, registered.. Ill. and Mich. canal bonds, £100 each, due after 1870, interest payable in London, unregistered... Ill and Mich. canal bonds, £300 each, due after 1870, interest payable in London, registered Ill. and Mich. canal bonds, £300 each, due after 1870, interest payable in London, unregistered. Ill. and Mich. canal bonds, £225 each, due after 1870, interest payable in London, registered Refunded Stock dated July 1, 1859, due after 1860. Refunded Sto k dated July, issued to Normal University after 1879. Illinois War Bonds dated July 1, 1861, due after 1879, $1,000 each Illinois War Bonds dated July 1, 1861, due after 1879, $100 each Total Same time in 1864 Same time in 1862 42,000 00 198,372 00 1.817,724 69 1,136 676 97 689.198 95 1,000 00 436,000 00 31.000 00 MICHIGAN STATE DEBT. The State Treasurer in his report to the Legislature makes the following ex The following, taken from a special circular issued by Dupee, Beck & Sayles; of Boston, gives a complete exhibit of the public debt and railroad loans of the State of Massachusetts, as it existed on the 30th of November, 1865: Lessinking funds, Back Bay lands, railroad stock and cash, applicable to the redemption of the public debt... 12,888,003 The indebtedness of the city on the 1st October, 1865, was as follows, viz. : This amount with the outstanding scrip and orders, perhaps about 7,000, which with about $10,000 the city will require to borrow to pay interest in New York and expenses, up to January 1st, 1866, will make the entire indebtedness of the city at that date, $420,227 65. The assessed valuation of the city on the 1st October, 1865, was follows: The city levy of 18 mills on the above amount including National bank stock stock, will yield about.. Less discount aad collection...... .... Add revenue from wharfage $12,000; licenses $12,143; bridges $7,000; city justices' courts $4,500; and market and pound 2,000 Total estimated revenue for 1865-66. The city expenses will be-mayor and alderman $3,300; police force $7,800; city attorney, clerk and treasurer, each $1,000, $3,000; city comptroller, jailor, pound master and market master, each $600, $2,400; city justices $450.... ..$18,450 Streets $1,500; fire department $1,000; prison $1,000; in- on 12 per cent bonds and bills pay 66 able..... Balance to credit..... $2,950,000 1,485,000 900,000 $5,285,000 $78,930 7,000 87,643 $149,578 .... 16,200 $46,608 If the assessment of the National bank stock be sustained by the courts, there will be an additional amount of.... Total balance to credit... -which may be applied to cancel the bills payable. The city indebtedness will then stand as follows; With a prospect of an early completion of the railroads converging on the city and the advance of real estate, the city's credit can be easily sustained, and the amount of borrowed money paid off next year. THE CITY DEBT OF TORONTO. The amount of the debenture debt in December 31, 1864, of Toronto, Canada, was $2,383,584 99. The purposes for which this debt was contracted were: It is not remarkable that the measures adopted by the several State Legisla tures for protecting insurance companies organized within their own States, should give rise to an attempt to secure from Congress a general insurance law, superseding all State legislation, and placing insurance upon an equal footing in all parts of the United States. The insurance interest in each State has sought to shield itself from the competition of companies in other States by procuring enactments imposing disabili ties upon outside corporations. Such restrictions have materially retarded the progress of the insurance interest, and have so far been injurious to the public welfare. The aim of such measures is to establish a monopoly. The public good requires that the people shall have freedom to insure with whatever companies offer the most advantageous terms of insurance. If the companies in a given State are unable to hold their own against the exercise of such freedom, it can only be because they do not possess the proper requisites for transacting an insurance business efficiently. Laws checking the competition of companies from |