THE NEW UNITED STATES BANKING ACT.

The banking bill, which Congress has just passed, and which we have referred to in our financial review, is a measure of very great importance. It creates a Bureau in the Treasury Department under the title of the Controller of the Currency, nominated by the Secretary of the Treasury and appointed by the President and Senate; salary, $5,000; bonds, $100,000; to hold office for five years; to have deputy clerks, &c., none of whom shall be interested in any banking under the act.

Associations for banking may be formed by not less than five persons, who shall make certificates specifying the name of their association, its location, amount of capital, which shall be not less than $50,000, (and in cities of over ten thousand population, not less than $100,000 ;) names, residence, and number of shares of stock holders, and time of beginning business; this certificate to be legally acknowledged. Thirty per cent of capital stock to be paid in at commencing, and the remaining capital at ten per cent every two months until paid up. If any one fails to pay, his stock to be sold at auction, after three weeks' advertising. If not bid in so as to cover assessments and costs, it is forfeited to the association. When the Controller is satisfied that these conditions are complied with, he shall give the association a certificate authorizing them to commence business, which fact shall be advertised for sixty days. All these associations are authorized to do business in the usual form, sue and be sued, and to perform all the ordinary functions of banking. Their shares are transferable, personal property carrying their liabilities with them. Capital may be increased from time to time as may be deemed expedient. They may hold real estate necessary for their business, such as may be mortgaged as security for lands, such as may be conveyed for debts and such as they may purchase under their mortgages, and no other.

Preliminary to commencing, they deliver to the United States Treasurer interest-bearing bonds of the government to the specified amount, and receive currency circulating notes in blank, registered and countersigned, equal to ninety per cent of the current value of the bonds deposited, but not exceeding the par value, and at no time shall such notes exceed the capital stock paid in. The entire amount shall not exceed $300,000,000-$150,000,000 to associations in States and Territories, according to representative population; the other $150,000,000 to be distributed in the discretion of the Secretary of the Treasury.

GOVERNMENT CIRCULATION PROPOSED BY THE BILL, THE AMOUNT ALLOTTED ACCORDING TO CONGRESSIONAL REPRESENTATION, AND THE AMOUNT TO BE ALLOTTED ACCORDING TO BANK CAPITAL.

The notes are to be from $5 to $1,000, and express on their face that they are secured, and bear the signature and seal of the Treasury Department; also the signatures of the president and cashier of the association. The Secretary is to devise the form and embellishment, and have custody of the dies and manufacture.

In lieu of all taxes on circulation under this act, or bonds deposited, each association shall pay semi-annually one per cent upon the notes received, returns to be made on the 1st July and 1st January, and in default two per cent of the capital, to be recovered for the Treasury.

When duly issued, these notes shall be received at par in payment of taxes, excises, public lands and all other dues to the United States, except interest on public debt; and no association shall issue any other circulating notes, under a penalty of fine and imprisonment.

If any bank fail to redeem its notes, the holder may protest them before a notary, whereupon the bank may be suspended by the Controller under forms prescribed, their securities forfeited to the United States and enough cancelled to redeem the notes refused. In case of suspension the securities to be sold at auction in New York after thirty days' notice.

The Controller may, to promote the public interest, sell such stock at private sale, but for not less than the current market value.

The stockholders are not personally liable for debts of the Bank to an amount greater than three-fifths of the capital stock paid in. The shares shall be $100 each; no stockholder can sell or transfer while he is liable for any debt of the association, or receive any dividend, interest or profit while such liability continues. The same security, both in kind and amount, shall be required of shareholders as of other persons. No bank shall purchase or hold its own stock or the stock of any other company, unless in case of forfeiture or prevent loss upon debts.

Every such bank shall be managed by five to nine directors, each to be a citizen and resident in the State one year, and own at least one per cent. Of the capital stock up to two hundred thousand dollars, one-half per cent, if over that. Every bank shall always have on hand in lawful money at least twenty-five per cent, of its out-standing notes and deposits. They shall not hypothecate notes to procure money to be paid in on their own capital stock, or used in other banking operations. No bank shall permit dividends or loans to stockholders for more than six months; if losses at any time exceed profits on hand, no dividend shall ever be made greater than the net profits on hand, deducting losses and bad debts. Semi-annual dividends may be declared as the directors may judge expedient. The banks may take, in advance, discount on notes, bills of exchange, &c., at the current established rates by the laws of the several States; taking higher interest forfeits the debt. There are elaborate regulations regarding the business of exchange. Several penalties are provided for misconduct on the part of the banks, their officers, &c. The Secretary may use these banks as depositories of public moneys, except for customs. Legal proceedings under the act are to be directed by the Solicitor of the Treasury. Provision is made against mutilation and counterfeiting of notes. And lastly the Controller of the Currency is to make a full report annually to Congress of the condition of each of those banks and associations.

TAX ON BONDS ISSUED IN AID OF RAILROAD COMPANY.

The following decision has been made by the Commissioner of Internal Revenue concerning coupons or bonds issued by or in aid of a railroad company. In case of bonds issued by State, county, city, or town, in aid of a railroad company, whereof the interest is to be paid by the company, the government tax of 3 percentum must be withheld, although neither bond nor coupon may express the liability of the company-such an arrangement being virtually an indorsement of the company's bonds by the said State, county, city, or town. Whether the interest is paid by the State, county, city, or town, and received from the railroad company, or paid directly by the company to the bondholders, is immaterial. In either case the managers of the company must account to the government for the tax. When bonds are issued by or in aid of a railroad company, the interest of which is made payable in a foreign country, such interest will not be subject to taxation under the 81st section of the Excise Tax.

.THE COTTON QUESTION.

PROFESSOR LEONE LEVI ON THE COTTON TRADE.

Mr. LEVI, on the 20th of January, read a paper at a meeting of the We extract from it the Statistical Society of London, on the cotton trade. following: He observed, that of 6,300 factories in the United Kingdom, nearly the half of them were for cotton. Of 36,500,000 spindles, 30,000,000 were for cotton. Of 490,000 power looms, 399,000 were for cotton. Of 779,000 persons employed in factories, 450,000 were employed in cotton factories; and of £130,000,000, which constituted the total value of goods manufactured in the United Kingdom, nearly £50,000,000 was the value of the cotton manufacture. The amount of the cotton manufacture consumed in this country he estimated at upwards of £30,000,000, and the capital invested in it had been estimated at £100,000,000. Having shown the vast importance of the cotton trade and manufactures, and the large proportion it bears to the commerce of the kingdom, Mr. LEVI observed that it is self-evident that it becomes of the greatest importance to secure a continuous and sufficient supply of the raw material. The countries which used in ancient times to supply cotton to Europe have remained quite stationary in their production, whilst America has made gigantic strides. From a table representing the stock of cotton on the 31st of December, in each year, from 1835 to 1862, it appeared that while the exports during the year 1862 were less than 600,000,000 pounds, against 1,260,000,000 pounds in 1861, and 1,400,000,000 pounds in 1860, our consumption has also been reduced to 400,000,000 pounds, against 1,000,000,000 pounds in 1861, and 1,100,000,000 pounds in 1860, and our exports have also diminished to 230,000,000 pounds in 1862; but that the stock on hand on the 31st of December, 1862, was 184,000,000 pounds, against 294,000,000 pounds in 1861, and 250,000,000 pounds in 1860. As regards the impor tation, it was shown that from the United States we received in 1862 only 72,000 bales against 1,840,000 bales in 1861, and 2,579,000 bales in 1860, and from British India we received 1,073,000 bales against 986,000 bales in 1861, and 562,000 bales in 1860. The cotton district of the United States lies between the 30 and 36 degrees of latitude, extending from the Atlantic coast westerly through 20 degrees of longitude. From this belt of country, scarce 400 miles in width, but including within it the States of Louisiana, Texas, Georgia, South Carolina, North Carolina, Virginia, Florida, and Alabama, the vast American product is gathered, amounting And but for the rebellion, which in good seasons to near 4,000,000 bales. includes the entire district, the prosperity and increase of the last few years would have justified the belief that the annual yield would have been doubled. Should slavery be abolished, we might fairly anticipate an almost total cessation of cotton production in those States for years to come. But even should the Confederate States succeed in obtaining their independence and in strengthening their institutions, it was most likely that agriculture and other interests will feel the influence of the present rupture in

want of capital and want of spirit for large commercial operations. It must be remembered also that the home consumption of cotton in the United States is considerable, and that it already absorbs more than 20 per cent of the crop. South and Central America, including Brazil, Peru, Paraguay, etc., can do much to supply large quantities. Still, taking them altogether, it will be a long time ere they can furnish sufficient to make up for the enormous quantities we have been receiving from America. But, long as it may be, that time will come, and then, in all probability, we shall have double the quantity heretofore produced in the two continents. Nor will it be too much. The consumption has been sensibly increasing in late years, and will still further increase as civilization and comforts advance. And we may safely anticipate that, whatever be the quantity attainable, it will not be more than enough to meet the increasing demands for the population of the world.

INDIAN COTTON.

Before the interruption unhappily experienced in the supply of American cotton, Indian, from its less attractive qualities, was comparatively a drug in the market. Necessity, however, overcomes many objections-and perhaps it may also be added, to some little extent, prejudices in this case -and last year 697,862 bales of Indian cotton were taken into consumption, as compared with 356,495 bales in 1861; 168,263 bales in 1860; 177,393 bales in 1859; 319,574 bales in 1858; 377,706 bales in 1857; 267,028 bales in 1856; 276,487 bales in 1855; 208,164 bales in 1854, and 134,742 bales in 1553. It should be borne in mind, however, that the number of bales taken is not an exact criterion of the quantity of cotton consumed, as the Indian bale only weighs 375 pounds, while the American figures for 445 pounds.

The Calcutta correspondent of the Times writes:-"Cotton continues to pour down from the Northwest, and I hear that the prospects of the crop are now both better and worse than I formerly said; better in the Central Doab, where there will be an average yield; worse, especially on the right bank of Jumna-the cotton field proper-where, owing to storms, the failure has been considerable. The government of India has renewed its offer of prizes for the most and best cotton grown in 1862-3, and the Bombay government has appointed a commission to inquire into the adulteration of cotton, of which I wrote some three months ago. Sir BARTLE FRERE is showing great energy in Bombay, especially in the construction of roads, of which it has hitherto been more destitute than even Bengal."

Captain Ross D. MANGLES has written a long letter to the Times on the supply of cotton from India, chiefly defending the Indian government, which he shows was not to blame because the ryots did not raise cotton continuously when the demand was only fitful. At present, encouraged by high prices and relieved from any imminent danger, at least, of being suddenly thrust out of the market by an influx from America, India asks only the time prescribed by nature for the growth of the crop to furnish Lancashire with a very large, if not complete, supply. A continuous demand at a sufficient price, which heretofore India has never had, will assuredly bring out the supply, and the cause will as certainly effect an improvement in the