February and August in each and every year, at such place as may be designated by the Governor and State Treasurer; and said officers shall procure the engravings for such bonds and certificates, and cause the same to be signed and countersigned as hereinafter directed, and take such other steps as may be necessary to carry out the true intent and meaning of this act. And the Governor is hereby authorized to draw warrants on the State Treasurer for such sums as may be necessary to pay the proper expenses incident to the negotiation of such loan, and said warrants shall be paid out of any moneys in the treasury.

SEC. 103. That the State Treasurer shall advertise for at least two months in one newspaper in Boston, one in New York, and one in Philadelphia, and one paper in London, one in Amsterdam, and one in Paris, in Europe, inviting sealed proposals for loan herein authorized, or any parts thereof; which proposals shall state the price intended to be paid in gold and silver, or its equivalent, by the bidder for each thousands dollars of such loan; and at noon on the day appointed for that purpose the State Treasurer and Auditor General, in the presence of the Governor and Secretary of the Commonwealth, and of such other persons as may attend, shall proceed to open said proposals and allot the loan to the highest and best bidder or bidders, whereupon bonds shall be issued to the person or persons entitled to said loan as hereinbefore provided, which bonds or certificates of loan shall be signed by the Governor and countersigned by the State Treasurer and Auditor General, and the State Treasurer shall sign or authorize said coupons or certificates of interest to be signed; Provided, That in making proposals for the loan authorized by this act, the holder or holders of any of the bonds of the Commonwealth of certificates for interest, and the holders of domestic creditor certificates, shall be authorized to bid for any part of said loan to the full amount of such certificate or certificates, together with the unpaid interest thereon; Provided also, That at the time of making proposals for the said loan, application may be made for any part thereof, at an interest of 4 per cent, or a less rate, upon condition that the loan shall be for a greater period, and not exceed thirty-five years, exempt from taxation, with the interest thereon payable semi-annually, the Governor is hereby authorized and empowered to entertain and carry into effect such proposition, should he deem it advisable for the best interest of the Commonwealth; Provided further, That the notice to be issued in Europe for proposals shall precede the notice in this country at least one month.

SEC. 104. That immediately after the negotiations of the loans herein provided for, the State Treasurer shall give notice in one newspaper in Boston, one in New York, and one in Philadelphia, to the holders of all certificates of loan then due, and to the holders of certificates issued to domestic creditors, to present the same at his office at Harrisburg, or at such place as he may designate in Philadelphia, for final payment; and in case such holders shall refuse or neglect to surrender the certificates aforesaid, the interest thereon shall cease to be paid by the State within sixty days of the time of payment fixed in such notice; Provided, That it shall be lawful for the Governor and State Treasurer, in addition to gold and silver, to receive at par, in payment for the loan herein authorized, any of the bonds of the State, domestic creditor certificates, and the certificates issued for unpaid interest; the certificates of loan paid and cancelled under the provisions of this act, after having been copied into a book to be kept in the office of the State Treasurer for that purpose, shall be destroyed by the State Treasurer and Auditor General, in the presence of the Governor and Secretary of the Commonwealth.

SEC. 105. That when the loan provided in this act shall have been negotiated, and the indebtedness cancelled as aforesaid, it shall be the duty of the State Treasurer to ascertain as near as possible the aggregate amount of interest saved to the Commonwealth by the provisions of this act, as compared with the interest now paid, deducting all contingent expenses; and shall, at the time of making the then next semi-annual payment of interest, and semi-annually thereafter, pay over to the Commissioners of the Sinking Fund a sum equal to the amount so saved; and all premiums which may be received under the provisions af this act, and all unclaimed balances, if any, shall be also paid over to the Commissioners of the Sinking Fund, to be applied to the cancellation of the public debt, in the same manner that all other receipts to that fund are applied.

SEC. 106. That the Governor and State Treasurer be and they are hereby authorized and empowered to issue certificates of loan in the manner and form provided for in the foregoing section of this act, reimbursable at a period not exceeding thirty-five years from their date, to any and all of such holders of the 5 per cent loan of the

Commonwealth as may signify their willingness to receive new certificates of loan, bearing an interest of 4 per cent or a less rate per annum, exempted from taxation, with coupons or interest certificates attached, payable semi-annually in gold and silver; and they shall further have the right to give the necessary notice and take such other steps as may be proper to accomplish the true intent and meaning of this section; and it shall be the duty of State Treasurer to communicate to the next Legislature a detailed statement of the proceedings under this act, showing the bids received for the loan, the names of the parties making such bids, and such other matters as may be deemed interesting and useful; Provided, That the certificates of loan authorized by an act "to provide for the immediate completion of the North Branch extension of the Pennsylvania Canal," approved the second day of April, in the year one thousand eight hundred and fifty-two, shall not be subject to taxation for any purpose whatever; and it shall be the duty of the Governor to cause coupons to be attached to said certificates in the same manner and form as those required to be attached to the bonds to be issued under the provisions of this act; And provided, That no bids below par shall be entertained for any of said loans; And provided further, That proposals for the loan to complete the North Branch Canal shall be forthwith published for at least thirty days in one newspaper in Philadelphia, one in New York, and one in Boston.

COST OF LEGISLATION IN MASSACHUSETTS.

The legislature of Massachusetts meets annually on the 1st Wednesday in January. The Senate is composed of forty members, and the House of some four hundred. The pay of members is two dollars per day, and traveling expenses. The Governor receives a salary of $2,500, and is chosen annually.

The Commonwealth furnishes the following statement of the expenses of the Legislature for the last two sessions-that is, for the sessions of 1851 and 1852. The session for 1851 commenced January 1st, and ended May 26. The session for 1852 commenced January 7th, and closed May 24th.

RECEIPTS OF BULLION, ETC., AT PANAMA, ON ENGLISH ACCOUNT.

The annexed statement exhibits the amount of specie and bullion received at Panama by the British Consul from California and Mexico, and from Peru and Chili, for each month in each of the past two years :

A portion of this went to England direct from Chagres, and the balance by way of New York. Of the above aggregate, $10,195,142 was from California and Mexico. Since, soon after the first discovery of gold in California, several large English banking houses have had agents in San Francisco and in the mining regions, buying up gold dust, and shipping it to London. A large amount of dust has been drawn from California in the way of Commerce, in payment for cargoes of merchandise sent out direct from English ports.

SALE OF INDIANA CENTRAL RAILWAY BONDS.

The bids for the two hundred thousand dollars of the 7 per cent convertible bonds of the Indiana Central Railway Company were opened at the office of Winslow, Lanier & Co., New York, in June, 1852. There were bids for $535,000, more than $500,000 of which were at over 90 per cent. The $200,000 offered were awarded at prices varying from 95-10-100 to 97-72-100, making an average sale at 95-53-100 per cent, which is the best price yet obtained for a Western Railway loan. The successful bids were as follows:

The successful bidders for the bonds were Clark, Dodge & Co., Norwich Savings Institution, Clinton Gilbert, Charles S. Francis, W. & J. O'Brien, Mervin & Gould, De Coppatt & Co., John Ferguson, Peter McMartin, John Thompson, A. Wylie, jr., C. T. Cromwell, Thomas McKenzie, and Chubb Brothers.

IDENTITY OF INDORSERS.

In a former number of the Merchants' Magazine, we published a few remarks on this subject. Those remarks have elicited from a correspondent of the Evening Bulletin the subjoined statement of facts, which are of great importance to Banks and Bankers:

A person traveling from one part of the country to another, provides himself with funds in the shape of drafts drawn to his order, on banks and brokers. He cannot take gold, because it is inconvenient on account of its weight to carry it about his person, and it is dangerous to put it in his trunk. It is unsafe to carry bank-notes, because of the exposure to pick pockets, to say nothing of the discount on such funds at different points. So, for his own convenience and security, he obtains drafts. These he knows cannot be cashed without his indorsement. If his pocket-book is stolen, he can obtain duplicate drafts, and the only inconvenience is loss of time.

He presents his draft at the counter of the bank where they are made payable, and is politely informed that he is not known to be the person represented in the draft, and that it will be necessary for him to identify himself He will probably reply, by assuring the teller that he is the proper person, and that there can be no mistake about it. The teller replies that it is very probably so, but there must be some evidence shown before the draft can be paid. If the stranger is an unreasonable man, his face will be flushed with mortification and anger, and he will inquire haughtily for the cashier. When shown into his room the same scene is gone over, only that by this time the stranger, by the delay, begins to think that he is suspected of being a swindler or forger. The cashier lays aside his pen and very patiently endeavors to show him the necessity for this caution. After some time thus spent, the stranger is convinced of one thing at least; namely, that unless he carries some evidences of his identity about him, such as his attested signature or other proof, he must find a reference; and he goes away mortified to comply with what he thinks, in his case at least, is unnecessary precaution.

Some time ago a person went to the post-office, in our city, and inquired for a letter. One answering to his description was delivered to him, which he opened. It contained a draft drawn in favor of the party to whom the letter was addressed. He wrote that name upon it and presented it at the bank, on which it was drawn for payment. Being a stranger to the teller, payment was refused, unless the party could identify himself. He then took from his pocket the letter which contained the draft, and exhibited that as proof, that he was the person represented. This seemed conclusive evidence to the teller, and the money was paid.

The real owner, not receiving his remittances, wrote to his correspondents that he had received no letter from them as he expected. They replied and gave a description of the draft. On inquiry at the bank, it was found that the indorsement was a forgery; and the bank was, of course, obliged to pay the amount to the true owner. Only a few weeks ago, the cashier of a bank in the city of New York was thus imposed upon. A person who was lodging at one of the hotels, requested the proprietor to go with him to the bank and introduce him, that he might get a certificate of deposit cashed, which was made payable to his order. The polite landlord did so, and the money was paid. When the certificate was forwarded for payment to the bank which issued it, answer was returned that the indorsement was forged. The bank which cashed it must of course lose the amount.

Is it to be wondered at, that banks and brokers are cautious in dealing with strangers? Let travelers and strangers, in visiting places where they have no acquaintance, get such evidence of their identity as can easily be secured by their hand-writing properly attested.

THE SMALL NOTE CURRENCY.

New York has provided, and after the experience of fourteen years under the General Banking system, perfected, as near as may be, a reliable small note currency for the people. New England had preceded us, under what is known as the Suffolk system. The first is secured by stock collaterals and made redeemable at Albany or in this city, at the uniform rate of not exceeding one-quarter of one per cent. The last, without collaterals, is made redeemable at par at the Suffolk Bank in Boston. The New York plan, for ultimate security, is the best. The other, owing to popular opinion throughout New England, which rejects all small notes not provided for at the

Suffolk Bank, is substantially as convertible. The New York plan is quite as profitable, if not more so, to the honest banker as the other, for while collateral security is required, the security is taken in interest-paying stocks, and a charge equal to fifteen days interest allowed on redemption at Albany and New York.

The Metropolitan Bank of New York has made both systems uniform in trade. The New York small notes, whether redeemed at Albany or New York City, are deposited at one-quarter of one per cent off. The New England notes, redeemable in Boston, at fifteen cents off each hundred dollars. Under this management, every way unobjectionable to the banker, who aims only at a fair interest on his business, there would seem to be nothing wanting to a safe and convertible system of small notes. Yet attempts have not been withheld to defeat this purpose, and, if possible, supersede our own State currency, simply because a few of the makers of it, keeping no offices of general banking business in the interior, are not content with the shave to which they have been reduced by legal regulation. First, resort was had to the Banking Law of New Jersey, but the recent Legislature of that State, sensible of the abuse, ordered par redemption at points contiguous to New York and Philadelphia. Next, a bank in Michigan, based, for the sake of plausibility, on government securities, was used to the extent of some four hundred thousand dollars, and its notes shaved at three-fold the usual rate, by their own makers, in Wall-street. The Metropolitan Bank has corrected this dodge, and, after a fierce contest of a single week, in Michigan, has brought the bankers to terms. Another project is now started. A "National Bank" at Washington, owned in part or altogether in New York, is to be used for circulating small notes of inferior value to our own currency. This is announced as based on State stocks deposited at Washington, with whom, or by whom, does not ap. pear, nor ought the question to weigh with the public, unless the notes are made as good in New York as New York small notes.

The chief objection to all these schemes is, that they aim to defeat our own salutary currency laws, and for this should be discountenanced by the public. They are the entering wedge to a general system of irredeemable "shin-plasters." The purpose is, to issue the notes at par to the money-borrower, and redeem them at the largest shave practicable, from the public who receive them in ordinary trade. The makers presume largely on the indifference of the latter to a fractional discount, in good times, and a yet larger loss by redemption when money grows scarce. The scheme is a vicious one. It aims to abrogate our own laws, and to supplant our own currency. It is without apology in this State, where the banker is allowed interest on his collaterals at Albany, and receives interest on his issues paid out on paper discounted.

Should the "National" issue be driven to its nominal home-which we trust will be the case through the Metropolitan or some other agency-it is quite possible the Free Banking Laws of the remoter States in the West will be resorted to. Indeed, a "State Stock Bank" at Cairo, Illinois, is already announced, and if under the semblance of "security" and the promise of 1 or 2 per cent redemption here, the notes can be forced into New York circulation, the scheme may soon be tried.-Times.

DEMAND FOR MONEY.

We are requested by the editors of the Dubuque Herald to call the attention of our capitalists to the facts contained in the following paragraph from the editorial columns of that Journal.

"Capitalists abroad will be better able to appreciate the state of our money market from a few facts we will present, than from any speculative disquisition we could write on the subject. By a reference to our advertising column it will be perceived that the only banking houses in the place, offer from 6 to 10 per centum for money placed with them on deposit. This speaks more than could a large treatise, and we trust it is sufficiently significant in its importance to induce capitalists from abroad to bring hither some of their surplus wealth for investment."

FINANCES OF CONNECTICUT.

The message of Governor Seymour, of Connecticut, states, that the financial affairs of the State are in a most prosperous condition. Its ordinary expenses for the fiscal year ending on the 31st of March, were $109,817 53, which with $26,832 paid to the School Fund, and $646 76 unpaid taxes, made a total of $137,326 18. The receipts for the year, including the balance of $26,266 22 on hand, were $176,456 21, leaving