prosperous financial year enabled the treasury to discharge the debt without extra taxation.

Great Britain was also the losing party in respect to another international question with the United States. A question had arisen as to the nationality of the Isle of San Juan, south of Vancouver's Island, off the coast of Columbia. By an existing treaty, dated before the occupation of either island, the question was left in doubt, and it was agreed to refer it to the emperor of Germany, and abide by his decision, which being given in December, 1872, was unreservedly in favour of the United States.

During the year 1871, public attention was drawn to a phase of American life which is not reputable. It became notorious that a combination known as the Erie Ring, being composed of directors of the Erie railroad, had been carrying on enormous financial operations, which were simply frauds upon the shareholders of the company. Similar operations were carried on by a body known as Tammany Hall, consisting of the mayor of New York and various functionaries, resulting in the entire perversion of the public funds of the city. These two gangs played into each other's hands; assisted by a judge named Barnard, they were enabled for a time to set legal proceedings at defiance, and by means of bribery to control, in a great measure, the public elections. The matter was at last taken up by the New York Times, in which a series of energetic articles stirred up the popular indignation. The Tammany Ring lost its influence and collapsed. The Erie company's offices were actually taken possession of by force, and the affairs were placed in the hands of honourable men. But it was discovered soon afterwards that the evil was more deeply rooted than appeared. Members of congress were found to be implicated, and even to have applied public money to carrying out their private delinquencies: two were actually expelled in consequence; and Barnard, the corrupt judge, was deposed from office. But the shock to healthy financial movement was too great to be easily repaired. General confidence was shaken, and one of the most striking results was the serious panic which seized New York in 1873; and besides compromising houses of the best credit, materially injured all American trade for a period of many months.

The presidential contest at the end of 1872 showed that the republican policy still held its ground. The demo

crats were unsuccessful in finding a candidate. Horace Greely (editor of the New York Tribune) was put forward as a liberal republic candidate with a view to obtaining an amalgamation of the two principles, but the mass of neither party gave him its support, and Grant was re-elected by a large majority.

One of the most remarkable outcomes of American imposture is the quasi-religious sect of Mormons, or Latterday Saints. It was founded originally by a man of immoral character, named Joseph Smith, who pretended to have received a revelation from heaven, which he embodied in a volume called the Book of Mormon.' He led a number of followers to Kirtland, Ohio; and "apostles" were sent out to proselytize in all parts of America and England. Polygamy, instituted first by Smith to give colour to his immorality, afterwards became their most prominent tenet. Smith was eventually imprisoned, and killed by a mob in 1844, when the leadership of the sect devolved upon Brigham Young, one of his chief apostles, under whom the body migrated to the territory of Utah, and founded Salt Lake City. When in 1871 the Pacific railway, from New York to San Francisco, established a depôt or station at that city, the Mormons attracted public hostility, and several of their elders were punished for polygamy. In 1872, however, the supreme court of the United States set aside the convictions as being unconstitutional (Utah not being a constituted state), and released Young. The main body of the community are not averse to the renunciation of polygamy, and have requested to be incorporated on that consideration as a state in the union, which will probably be effected before long.

The aboriginal Indian population is another source of internal disquiet. With a view to reconciling them to the gradual absorption of the continent under civilized rule, large territories have been set apart for the exclusive occupation of Indians. Their predatory and wandering habits, and, it must be added, a certain amount of ill-faith and oppression on the part of the government, made the experiment only partly successful. In 1873 the remnant of a small tribe, known as Modocs, caused some consternation by outrages on white settlers, and by the success with which they set at defiance a considerable body of troops sent to punish them. The region of North California, in which they took refuge, was peculiarly adapted

for ambuscade warfare, and they were not hunted down until many lives were lost, including that of general Canby, who was treacherously shot by the Modoc leader, known as "Captain Jack," while endeavouring to settle terms of peace. The culprit was afterwards caught and hanged. The result has taught the government greater consideration for the claims of the original population of North America, but the question will finally be settled by the total extinction of the tribes, which have steadily diminished in number since the first colonization of the continent.

XXVIII.-The States of South America, of Mexico, and the West Indies.

The southern, like the northern portion of the vast continent of America, consisted, in so far as it was connected with the history of the eastern world, of a collection of colonies owned and governed by European nations. From the commencement of the sixteenth century the explorers of Portugal and Spain, the two most enterprising of European nations at that date, had discovered and gradually overrun the rich countries of South America, inhabited by wealthy and semibarbarous inhabitants of unknown race and history. The largest of the conquered dominions was Brazil, discovered in 1500 by Alvarez Cabot, and annexed by him to the throne of Portugal. To that country it long remained the richest appanage, and we have seen (p. 406) how, finally, it was, by its own act, constituted as a separate kingdom (Oct. 12, 1822), with a liberal constitution, under the head of the Portuguese dynasty, Don Pedro, who abdicated his rights in the mother country in favour of his daughter Maria da Gloria. Since that time the country has advanced in prosperity. The emperor, under its liberal constitution, is assisted in the government by a senate and chamber of deputies meeting at the capital, Rio Janeiro. Pedro I., on account of failing health, abdicated while his son was an infant, who, in July, 1840, was declared of age, and the subsequent reign of Pedro II. has justified the confidence of his subjects and increased the prosperity of his empire. In 1871 he paid a long visit to Europe, and during that time the chambers passed an act for the gradual abolition of slavery. About half the population are negroes.

But the Spanish dependencies did not so easily surmount the troubled times which, commencing with the war of independence in North America and the French revolution,

lasted till the downfall of Napoleon. In the year 1810, when Spain was prostrate under French military rule, and its colonies were at the mercy of the military governors or captains-general, a revolt commenced, which gradually became general, and is known as the war of Spanish independence in America. The most remarkable of the patriotic leaders in this revolt was Simon Bolivar, a native Venezuelan, educated in Europe. The details of the various sanguinary conflicts between the colonists and the home government, which continued after the restoration of Ferdinand to the Spanish throne, would occupy volumes; the result was finally the establishment of several republics of vast area and great, though still undeveloped, resources. The most important is the Argentine republic, a confederation of smaller provinces (established 1816), its capital being Buenos Ayres. There is, however, a certain want of stability in the character of its inhabitants, which inflicts on the country constant political disturbances. The next in chronological order is Chili (capital, Valparaiso), the independence of which dates from 1818. Colombia, established 1819, was afterwards divided into the three republics of Venezuela, Ecuador, and the Granadian confederation. Peru (capital, Lima) became independent in 1821. Bolivia was separated from it in 1824. Paraguay was constituted about the same date; and Uruguay (capital, Montevideo), formerly claimed by the Brazilians, was allowed its independence in 1829, and has since made rapid progress. Patagonia, partly colonized, is still inhabited by the aboriginal races, but the country is claimed by the Argentine confederation. Thus the whole of South America has been resolved into independent governments, with the exception of the Dutch, English, and French possessions in Guiana.

In a similar manner the Spanish colonies in North America repudiated their allegiance, and became resolved into the republics of Mexico and Guatemala. The former was established as a federal union of nineteen states in 1824; but its subsequent history has been no peaceful one. The great preponderance of the original race of inhabitants stamps its nationality with peculiar characteristics opposed to the quiet development of a fixed constitution. After many revolutions, in the course of which an adventurer, named Iturbida, for a time held sovereignty under the title of emperor, it formed itself, in 1858, into a constitutional government at Vera Cruz, which, however, was hardly re

cognized at the city of Mexico, while lawless armed bands brought the government into serious complications with the United States. In 1861 the deplorable state of the country led to a convention between England, France, and Spain for an armed expedition, and the fleet of the latter actually took Vera Cruz. A disagreement, however, rose on account of the French government countenancing a Mexican emigré, named Almonte, whose object was to establish a monarchy, the sovereignty of which was to be offered to the archduke Maximilian of Austria. England and Spain consequently withdrew their troops, and left the French to prosecute the expedition, with an army increased to 30,000 men. After some resistance, Puebla, where the Mexican forces were concentrated, fell, and Juarez, the native president of the republican party, retired, and no attempt was made to disturb the French occupation. An assembly of 215 members of all classes was convened to determine the form of future government, and they decided by a large majority that it should be an empire, and that the throne should be offered to the archduke Maximilian. A deputation proceeded to Europe to offer him the throne, which, after some hesitation, was accepted. His first royal proclamation was dated Vera Cruz, May 28, 1864. His reign, however, was destined to be but brief. The adherents of Juarez gathered force, and necessitated a constant state of warfare; but so long as the French troops remained it was possible to keep them in check. Early in 1867, however, the French force was recalled. Maximilian occupied the town of Quaretaro with native troops; but was subjected to constant attacks from the republican troops. Puebla was captured by them in the beginning of April, and they commenced the siege of the city of Mexico, at the same time closely investing Quaretaro. By an act of treachery, as is alleged, the latter town at last fell into the hands of Escobedo, the republican general, and Maximilian surrendered himself with all his staff. In the month of June, 1867, he was brought before a military tribunal, and on the 19th of that month the defeated monarch, with two of his generals, was condemned to death "for his crimes against the independence of the nation," and was shot. His estimable private character caused his fate to be much commiserated in Europe, but it was acquiesced in by the majority of the Mexican nation, which was henceforward constituted as a republic under the presidency of Juarez, who