In my opinion the exemption created by the first-named act is in no wise affected by the last quoted provision. The latter act can, and The latter act can, and properly should be, read as imposing a tax on certificates of stock other than the capital stock of a Federal Reserve Bank. The rule controlling the case is announced by the Supreme Court of the United States in Washington v. Miller (235 U. S., 422, 428), as follows:

In these circumstances we think there was no implied repeal, and for these reasons: First, such repeals are not favored, and usually occur only where there is such an irreconcilable conflict between an earlier and a later statute that effect can not reasonably be given to both (citing cases); second, where there are two statutes upon the same subject, the earlier being special and the later general, the presumption is, in the absence of an express repeal, or an absolute incompatibility, that the special

is intended to remain in force as an exception to the general (citing cases); and, third, there was in this instance no irreconcilable conflict or absolute incompatibility, for both statutes could be given reasonable operation if the presumption just named were recognized.

See also Townsend v. Little (109 U. S., 512, 594); Ex parte Crow Dog (109 U. S. 556, 570); Rodgers v. United States (185 U. S., 83, 87, 89); United States v. Healey (160 U. S., 136, 146); United States v. Greathouse (166 U. S., 601, 605); People v. Hanrahan (42 N. W., 1124); State ex rel. v. Stratton (38 S. W., 83); Wheeler v. Lane (15 Vt., 26). Respectfully,

T. W. GREGORY,
Attorney General.

To the SECRETARY OF THE TREASURY.

leather is an important factor. Some manufacturers report that in spite of an increase in prices retailers are buying freely and raw materials are getting so high that a further advance in prices is expected in the near future. Manufacturers are nearing the end of their spring run and already orders for the fall run are reported to be unusually heavy.

Cotton mills are running as full as the supply of labor will permit, the shortage being principally in the weaving departments. Good buying is reported in all grades of goods, but is especially evident in fine and fancy lines. Mills manufacturing these goods are sold several months ahead and the demand still continues strong. Mills are taking some orders for deliveries starting in August or September and running the usual period of three months beyond that time. Some mills are reported to be declining further advance orders at this time, as the trend of cloth prices is upward and mill treasurers wish to be in a position to take advantage of the higher prices.

Woolen and worsted mills are running at full capacity with orders booked far in advance. The report of the National Association of Woolen Manufacturers as of March 1 shows the greatest activity since these reports were inaugurated some two years ago, the percentage of idle woolen spinning spindles and worsted spinning spindles being only 9.3 per cent and 7.9 per cent, respectively. It is also reported that the per centage of domestic business is very much larger than is popularly supposed, foreign business being a very small factor.

In the paper trade the lack of some raw materials and the high price of others has brought about a condition that is unprecedented. The demand both at home and abroad for paper is abnormal. This has caused many jobbers and consumers to anticipate their needs far in advance, thus making a serious situation worse. In this industry the freight embargo has also caused serious inconvenience and in some cases considerable loss.

The principal feature in the bond market is the buying of securities exempt from taxes in Massachusetts due to the approach of April 1, which is tax day. An extremely heavy demand for this class of security is reported.

DISTRICT NO. 2-NEW YORK.

Trade throughout the district continues on a broad scale, with no apparent signs of a slackening in industrial activity at a time when some contraction is usually experienced. The month has witnessed a steady growth in the volume of business with production considerably below consumption. In spite of the advancing prices, which would ordinarily check the inquiry for merchandise, current demand is very large, especially for immediate deliveries of leather, footwear, dry goods, and steel products. Manufacturers in these and other lines are rejecting urgent demands for goods which they are unable to supply either because their plants are booked to capacity or because of inability to obtain raw materials.

Paper making, which is one of the most important industries in this district, furnishes a striking instance of the prosperity which has been apparent in so many lines of business during the past few months. Paper mills are working full time and are unable to fill the great volume of orders, being sold out several months in advance. Prices have advanced sharply, the upward movement during the past year ranging from $3 to $30 per ton. Collections are unusually good, owing to the fact that buyers are very anxious to maintain an exceptional credit standing in order to secure precedence in the filling of orders. Large shipments of paper are being made to South American countries. The demand from European countries is also heavy but difficult to supply on account of the shortage of vessels.

In all retail lines activity is well sustained in spite of the fact that retailers are between seasons. Department stores are kept busy

Manufacturers are overwhelmed with orders, but are hampered by a scarcity of raw materials, especially dyestuffs, and by a scant supply of labor. The absence of supplies is further aggravated by a serious car shortage, which is uncommon at this period of the year and has caused the railroads to declare additional embargoes. Recent storms have imposed further burdens on the carriers.

The New York Clearing House banks on March 11, 1916, reported aggregate loans of $3,343,715,000, deposits $3,552,286,000, and excess reserves $136,226,880. As compared with January 29, 1916, loans have increased $70,680,000, deposits have advanced $29,101,000, while excess reserves have decreased $41,574,860. Exchanges through the New York Clearing House for the month of February totaled $11,106,737,277, an increase of $4,624,910,730 over the same month On the New York Stock Exchange transactions during the month of February in both stocks and bonds aggregated less than in January, but showed a considerable gain over the corresponding month last year. Prices of shares were generally lower than in January. The par value of bonds sold during February, 1916, was $80,390,000-an increase of $36,666,500 over February, 1915 while the number of shares of stock traded in on the exchange aggregated 12,080,136 against 4,347,866 in February last year. New incorporations in Eastern States, embracing concerns with a capital of $1,000,000 or over, totaled $365,995,300 during February, an increase of $312,045,300 over February, 1915. Monthly reports at hand show 298 failures in this district during February, with liabilities

The pig-iron output in February totaled 3,087,212 tons against 1,674,771 in February last year, the former figure representing a new maximum average production of 106,456 tons per day.

Railroad earnings continue to show striking advances over last year's totals, gross earnings for January aggregating $267,043,635, which is an increase of $46,840,040 over the corresponding month in 1915. Total net earnings for the first month of this year were $78,899,810 as compared with $51,552,397 in January, 1915.

Call money was loaned throughout February from 13 per cent to 2 per cent with renewal rates 1 per cent. Time loans on collateral ranged from 24 per cent to 3 per cent for 60 days and 3 per cent to 4 per cent for long-time money. Time money was slightly firmer than in the preceding month. Bankers' acceptances remained unchanged at 2 per cent to 2 per cent. Commercial paper ranged from 3 per cent to 3 per cent, the main volume of business being transacted at 3 per cent. Toward the end of February it became more difficult to place short notes under 3 per cent.

Quotations at closing rates were fairly steady during February on London and Paris sight bills. Sterling rates were, high 4.764, low 4.75, and on February 29 4.763. Francs, high 5.86, low 5.93, and on February 29 5.87. German exchange early in February was 74 and later strengthened to 77, but weakened to 73 by the end of the month. Holland exchange continued at a premium throughout the month, and was quoted at 42.433 at the end of February. Russian bills moved from 29 to 31. The low rate on Italian bills was 6.77, high 6.684.