promising that it should speedily end, and, perhaps, hoping that peace would come before bankruptcy.

In his report, Dec., 1862, page 22, he wrote:-" If, then, the war should be continued, contrary to hope and expectation, to midsummer, 1864, and the public debt shall reach the utmost limit now anticipated, of seventeen hundred millions of dollars, the excess of revenue will reduce the debt, in the first year of debt, more than three, per cent."

Midsummer has come, and with it a debt of about two thousand millions, and the revenue he promised does not exist. These hopeful predictions, however, were a part of the expedients which Mr. CHASE adopted, and which have, in the absence of all plan or system, helped to produce such a constant succession of alarms and surprises. When, for instance, the public has been alarmed by the effects of paper money, it has been promised curtailment, but has been surprised by new issues. The distrust of all has, however, been aroused, perhaps, more than by anything else, through the attempt to overturn the whole national system of finance, by the introduction of a new system of National Banks of a very pernicious character. With the establishment of these, all dependant upon the Secretary, grew up a system of agencies, also taking their tone from Mr. CHASE, who, in his turn, reflected only the pernicious councils of interested parties. He was thus gradually estranged from the banking interest of the country, and then from the influential and practical private bankers, whose sagacity and skill were the most valuable aids the Treasury could have had.

Embarked upon the sea of paper money, and terrified by its effects, Mr. CHASE revived all the expedients of a past age; the sales of gold, the gold prohibition, besides many other devices, and numberless expedients that had no effect but to increase depreciation. Last year, when the Ohio elections were pending, Mr. CHASE could not avoid parading his seeming success before the people in stump speeches. He was then at his apogee. He plumed himself upon his discovery of a paper money that would not depreciate by increase of quantity. To be sure it did depreciate, but he said that was faction. He claimed for it permanency and uniformity. The former is, alas, too true, and the latter is seen in the rate of discount. He said he had paid all debts, and had $25,000,000 in the Treasury; that he could pay the army Nov. 1, and had, therefore, time to electioneer. In recounting the course of his success, he stated that after he had borrowed all the gold he could get, he was struck with the remarkable fact that gold did not come back to him as fast as he had paid it away-au experience that must come home, we apprehend, to everybody who has expended borrowed money, and whose ability to borrow more is at an end. When he discovered that he could not borrow the notes of others, he concluded to pay out his own. This, however, he found was only another form of borrowing, and that there was the same indisposition to take his notes without interest as those with interest. He then conceived a new idea, and compelled them to take them by making them a legal-tender. On these paper wings he has floated higher and higher, while the whole community was being exhilerated and intoxicated by reason of his paper draught. At the same time gold has been demanded for duties. He has caused the importers, in the last year, to buy $100,000,000 in gold to give him for duties, and the tell-tale price they were compelled to pay accurately measured the distance of his paper.

flight from a substantial foundation. He then began to sell gold himself, while he sought to prohibit all dealing in it. But the crisis had arrived when Mr. CHASE was at the height of his paper flight, and while flaunting in the pride of his success, the process of his undoing was at work.

"ICARUS was very near the sun, but there was nothing to prevent the melting of the wax in his wings, and bringing him under a cloud of his own feathers."

We trust and believe our new minister of finance will show more wisdom, and though the task before him is a difficult one, yet, with confidence once restored, much may be done that seems now almost impossible.

THE NEW EMPIRE OF MEXICO.

A. K. SHEPHARD.

THE "Conquest of Mexico by France" in the June number of the Merchants' Magazine is an article both interesting and valuable as a history of the occupation of that country by the French, and yet its general drift is towards the popular falacy which construes the occupation into an aet of hostility towards the United States.

This country has always occupied a dog-in-the-manger position towards the Spanish American republics. While loudly protesting against any interference in their affairs, and professing to be the natural protectors of these weak and unfortunate States, we have suffered them to dash themselves to pieces on the rocks of civil discord.

Satisfied with proclaiming to the world our belief in the Monroe doetrine, we have never shown any consistency between our professions and our practice.

In the year 1858, when General Houston proposed in Congress the establishment of an American protectorate over Mexico, how much sympathy did his plan attract? And yet at that very time the Mexican people would have hailed such a protectorate with joy. The writer was then traveling in Mexico, and, so far as his observations extended, the intelligent portion of the community were unanimous in desiring American intervention. Wearied with civil wars, they were ready to accept as a blessing any interference in their affairs which, leaving them their own government, would still protect the country with the strong arm of law.

Again in St. Domingo, previous to the Spanish usurpation, the people were anvious to annex their fertile island to the United States. Everything was done on their part to bring about annexation, and how did the United States receive their overtures? With indifference, and this, by nature the richest of the West India islands, was suffered to fall into the grasp of Spain.

Incapacity has ever marked our conduct of Spanish American affairs, and now that we are reaping the fruits of our folly we lay the blame upon others. Is it that American genius is not suited to diplomacy! In a list of forty ministers and consuls-general why should one-eighth be foreigners!

In a somewhat extended acquaintance with Spanish American cities, the writer never saw but one United States consul who spoke the language of the country in which he resided. A similar lack of linguistic accomplishments generally falls to the lot of American ministers. It may be a matter of no importance, and yet to a casual observer it does seem that closer relations might be maintained by representatives who, thoroughly acquainted with the people to whom they are accredited and alive to their wants, should seek to turn their knowledge to the advantage of their own country. This is more particularly true of the South and Central American republics, in which proper effort would establish the United States as a leader and protector.

Mexico, New Granada, Chili and Peru were the seats of the highest civilization of the aborigines of this continent, and it is among the elevated table-lands of the Cordilleras and the Andes that the white race must yet attain its highest perfection in the new world.

In those equable and tempered climes are developed neither the sloth and indolence of a purely tropical climate, nor the apathy and plodding dullness of the north, where life itself is wrested from nature by hand-tohand conflict, and the exertion to maintain it often takes from existence its greatest charms. In every northern country whole classes of community barely live.

The vicissitudes of climate, long, rigorous winters, the scant, unyielding soil all call for ceaseless labor. But on the fertile plains of Mexico, life is supported with scarce any exertion, and in a perpetual spring-time to live is in itself happiness. Perhaps it is in the mission of machinery to overcome the difference between the climates, and free man in the North from his many toils. Future centuries will develope that fact; as yet in natural capabilities for civilization the North is far behind.

It will perhaps be asked, if these southern countries are the natural home for civilization why do we find them as they are?

The answer is, that the proper race has not yet come into possession. Had the pilgrims landed where Cortez did, who can imagine the glories which Mexico would have attained? It is her mongrel race which has retarded her development, nor can we look for improvement till a different element is introduced.

Mexico for more than thirty years has been an abomination to civilized nations. No one who has resided there, a witness of ever-occurring deeds of violence and tyranny worse than ever disgraced a despotism, will grieve that the Mexican "republic" should have succumbed to any gov ernment which can guarantee stability and quiet. We might have assisted Mexico to a better state. We did not. France saw the advantages to be derived from so rich a country. Her claims upon it were unjust, but no government founded upon justice has existed in Mexico for years. The only question to decide is, whether the empire will prove beneficial to the country and not inimical to ourselves. Quixotish ideas with regard to freedom and republicanism should not be allowed to have weight. No one would recommend a republican government for the barbarous tribes of Africa. Even we (self-satisfied as we are), are a century behind our institutions.

Mexico has been tried and found wanting, and no one who has care fally observed the country from the Coatzacoalcos to the Rio Grande,— who has become familiar with the people, from the cultivated Spaniards

of the capital to the ignorant and unambitious Indians of the south, or the squalid rancheros of the north, can conscientiously say that from their present condition, any more than from their past history, are the Mexican people fit for self-government.

Complacent theorists may sit quietly at home, and while outrage upon outrage is perpetrated under their very noses through the folly of entrusting the sacred right of suffrage to unfit men, they may talk beautifully of the rights of man and universal liberty. But that scarcely proves that semi-barbarians should be allowed to usurp the privileges that belong only to those who have the intelligence to exercise them. The great fault with these theorists is, that they do not distinguish between the rights of men and their privileges. All men are entitled to "life, liberty, and the pursuit of happiness;" those are rights. The privileges of office should be entrusted only to those who are qualified to discharge its duties. What could an uneducated boor do at the head of the finances, or foreign affairs of a great State? And yet, look at the mismanaged municipalities, where matters that affect only property holders are almost entirely in the hands of men as unprincipled as they are penniless. This is our "model" country,

In the city of Mexico, and the larger cities of the interior, the political power has always been centred. Large districts of country are entirely isolated from the capital, and communication is difficult and dangerous over the rough roads and mountain barriers. These isolated districts have never had anything to do with making or unmaking governments. Exempt them from forced contributions and levies of troops and they care not if Maximilian is Emperor, or Santa Anna. If central Mexico can be held the country is subdued.

It is only a strong government that can develop Mexico, organize and manage her resources, and bring together the discordant elements that harass her. There is now in the country sufficient intelligence to prevent a depotism any worse than the so called republic has always been. Let the people remain quiet and they will grow into a republic. Already the French bave inaugurated improvements in the country. Forty miles of railway from Vera Cruz towards the capital have been completed-a railway begun in 1856, but which could not be carried on under the protection of the republic. Twenty-five years of peace will piace Mexico as much in advance of our land of fickle fortunes, principles, and weather, as the Aztecs were ahead of the Potawattomies.

What have we to fear from an empire in Mexico? Is it military expiditions Let the timid study well the geography of Mexico, and they will fear as much the aggressions of Russia, from her possessions on the northwest corner of the continent. The only country on this hemisphere with which we have an important trade is the Empire of Brazil. To foster this trade Congress has wisely granted subsidies to a line of steamers. Shall we respectfully inform the Emperor that in accordance with the requirements of the Monroe doctrine he must change his form of gov ernment? Let us rather turn our energies towards fitting ourselves for the blessings of a free government which is much too good for and not thrust our republicanism upon people to whom it would bring as much good as Greek testaments to Congo negros.

us,

If France, or England, or Maximilian can bring a stable government to Mexico, let us be thankful, and foster our relations with the country, that

we may profit thereby. And before we cry out against "the destruction of the liberties of a free people," let us ascertain whether they ever were a "free people." Can any one doubt that a well ordered empire is better than an anarchy? Was France happier under Robespierre than under Louis Napoleon?

SANDWICH ISLANDS.

NUMBER L.---HONOLULU AND THE PAHRI.

H. B. A.

HONOLULU.

AFTER several weeks at sea the bold promontories and volcanic peaks of Oahu are very pleasant to the eye. As the ship sweeps past Diamond Head, under the strong north-east trade-winds that prevail for ten months of the year, we catch our first glimpse of Honolulu, its beautiful valleyNuaanu-the long line of surf that marks the reef, and the few ships at anchor in the harbor beyond; and in a few moments we are at anchor among them. The view bursts upon the eye so suddenly that it dazzles and bewilders by its beauty and variety. All the wealth of the tropics cannot be gathered at a glance. The most easily remembered landmark is that first seen from the eastward-Diamond Head, an extinct volcano of irregular shape and great boldness of outline. It rises about five miles from the town, and at a distance appears a truncated cone, its single ridge, broken by inequalities, rising from the plain and attaining its greatest height at the sea-shore. On nearer approach, the sides and circular shape of a volcano are plainly visible. As in most of the extinct volcanoes of the Sandwich group, the outer rim of this crater is supported by bold and massive buttresses-a grand order of architec ture designed by the great Architect of the universe. Man might profit by imitating them,-indeed, so similar in conception are the buttresses of gothic cathedrals, that one could almost believe them to have been modelled after the giant supporters of these mountain temples. These ponderous buttresses are the overflow of the lava dripping from many points on the rim of the bowl, and finding its way downwards until cut short by the

sea.

At the foot of Diamond Head, on the side towards Honolulu, is an extensive grove of cocoa-nut trees, growing along the beach and forming with the volcano sure signs to remind us that we are approaching a tropical land. Glancing past these and along a strip of land washed by the surf for two or three miles, the eye rests upon a massive stone building, with belfry and clock-tower, the native church of Honolulu and the only structure of any size in the town. It is a very remarkable building—a landmark far off to the sailor approaching from China or Australia. Many a poor fellow, who has not seen the inside of a church for years, has been reminded of his duties or his privileges by this, the church of the Pacific. To the left of the stone church, and nestling at the foot of Nuaanu Valley, lies the town, looking like some quiet New England vil