firman to the Armenian patriarch of Constantinople, ordering him, and all the clergy of the same persuasion throughout the empire, to recognise, as chief of their church, the patriarch of Eschmiadzin, a Russian ecclesiastical dignitary, and to refer every question on spiritual matters to his decision. The Armenian clergy, as well as the most influential men of that nation, in vain pointed out to the Turkish government the alarming political consequences which might ensue from bestowing spiritual supremacy on a prelate who was the subject to a foreign power. The Porte could not be blind to these consequences, and still less could it be insensible to the wound thus given to its dignity; but it was impotent for resistance. The advantages secured to Russia were evident. A large Armenian population was disseminated in the provinces of Asia Minor, bordering upon her own frontiers; they were sunk in superstition, and, therefore, the influence of their clergy was omnipotent. The priests, taught by this new ordinance to obey the decisions of a Russian patriarch, would soon learn themselves, and teach their flocks, to look up to Russia for protection, and to consider her as the future deliverer of their church from the yoke of Mussulman bondage. An ecclesiastical connexion was the first and greatest step towards civil and political amalgamation, when it should be found convenient to push still farther southward the boundaries of the Russian empire. The czar had as yet been unable to suppress all the resistance of the native tribes in his late acquisitions in Circassia. The sultan, in a thoughtless moment un of generosity, had presented a Circassian prince, resident in Constantinople, with a gold snuff-box, as a mark of respect to his rank. The Russian envoy reproached his highness for thus favouring a person whose sentiments were favourable to Russia, and who, he said, was a friend of England, encouraging his countrymen to dislike and resist the subjection of their country to Russia. He demanded that the prince should instantly be exiled from Constantinople, and he compelled obedience by the threat of demanding his passport in the case of a refusal. By the treaty of Adrianople, which terminated, in September, 1829, the last war between Russia and Turkey, the Porte had bound itself to pay a large indemnity, and, until the whole of it should be discharged, Russia was to remain in possession of the strong fortress of Silistria, on the right bank of the Danube, thus keeping in her hands an open gate through which she could at any time pour her armies into the Turkish provinces. Part of the money had been paid; but al though, by subsequent conventions in 1830 and 1834, Russia had given considerable deductions, the expenses and the misfortunes of the contest with the pacha of Egypt had retarded the liquidation, so that a balance still remained unpaid amounting to 170,000,000 of Turkish piastres, about 1,700,000l. The porte was anxious to regain the fortress by hastening the payment; and Russia, though she could feel no desire to abandon so valuable a position, was desirous to obtain the gold. By a convention concluded at Constantinople on the 27th of March, it was agreed, that, in consideration of Turkey undertaking to pay 80,000,000 of piastres, less than half of the balance, on the 27th of August, Russia would give up the remaining 90,000,000, and that on pay ment being made of this compounded sum, Silistria would be evacuated by the Russians. The stipulated sum having been paid at the appointed time, the fortress was occupied in September by Turkish troops. CHAP. XV. UNITED STATES.Termination of the dispute with France-Disposal of surplus money in the Treasury-United States Bank-Increase of Banking Establishments-Evasion of the prohibitions against Small Notes-Land Speculations-Consequences-Government demands Specie in all purchases of lands-Slavery-Election of President-Election proceedings in Maryland.-MEXICO.-Revolt of Texas-Encouraged and aided by the Americans-Uusuccessful expedition against Tampico-Success of the Texians by landRemonstrances of Mexico to the United States-Santa Anna marches against the Texians-Is defeated and taken prisoner— Insurrection of the Federalists suppressed-Measures of the Mexican Government-and of the Government of Texas.—PERU. Defeat and death of the Usurping President-Division of Peru into two independent States.-VENEZUELA.-Insurrection suppressed.-NEW GRANADA.-Congress refuses to ratify the Convention for the apportionment of the Colombian Debt-Measures adopted in regard to that debt.-CHILI.-Finance-Attempted Invasion from Peru.-BRAZIL.-Recovery of Para-Insurrection in Rio Grande.-MONTE VIDEO.-Insurrection. INF N our notice of the affairs of France, we have stated the manner in which the dispute between that power and America was brought to a conclusion. The offer of mediation on the part of the British government was readily accepted by the United States, under a protest against the right of France, or any foreign power, to demand explanations respecting the language which a president might use in his message. In the legislature, again, Mr. Clay, in moving that the message announcing the offer and acceptance of the mediation, and the accompanying documents, should be printed, congratulated Congress on the part which the senate had taken in this affair, by repudiating the warlike views of the president, and insisted on the inconsistencies and inconveniences which must follow the principle laid down by the government, of regarding the message to Congress as a purely domestic document, which would clearly confer upon other powers the right to use insulting and menacing language towards America, without leaving her the privilege of calling for explanations. From the naval preparations which France, in the meantime, had been making, as if for war, and the want of effective preparation which existed on the part of the HISTORY OF EUROPE. United States, the president took occasion to enforce upon Congress the necessity of making such provisions, that in future the country might not be destitute of ample means to repel aggression, however unexpectedly it might come upon them. In the case of hostilities commencing during the recess of Congress, the interval, which must necessarily elapse before that body could be called together, even under the most favourable circumstances, would be pregnant with danger. The present was a time, likewise, at which these measures could be adopted without adding to the public burdens, as there was a large surplus of revenue in the treasury. The disposal of this large surplus of money occasioned a strong party contest in Congress. It was applicable to no specific purpose; General Jackson having succeeded in destroying the United States bank, as a bank of the Union, the money was deposited in different state banks, selected by the secretary of the treasury. These banks paid no interest for it, while they themselves used it in loans and discounts, knowing that it could not be required by government, till specific appropriations had been proposed, discussed, and carried in Congress. Both parties wished that the money should be used, but in very different ways, and for very different reasons. The administration and its supporters strained every nerve to have the surplus expended for military purposes, both because the president had announced farther means of defence to be necessary, and because, under such an application, it would still have to pass through their own hands. The opposition argued, that the money ought not [441 to remain where it was, because they believed that it was used through the medium of the state banks, and sometimes corruptly, for political and electioneering purposes, but they were untiring in their efforts to prevent its appropriation to military objects. At length the opposition introduced a bill to distribute the money among the different states in the proportions in which they had contributed to it. This measure produced stormy debates, and occasioned great agitation, and some anger, in the ranks of administration; more particularly as it seemed merely to be a declaration of jealousy of the government, because it was not an appropriation of the money to any particular purpose, but only the removal of it from the possession of the general government to that of the governments of the individual states. The opposition, however, triumphed, and the bill passed into a law, although the ministry had generally a majority of about thirty in the House of Representatives. In the Senate it passed by forty votes against six. Although political jealousy and animosity probably lay at the bottom of president Jackson's hostility to the United States bank, the ostensible reason held out was, a wish to secure a currency in specie, and check the diffusion of mere paper credit. For the same purpose, several of the states had prohibited the circulation of small notes, and Congress now prohibited their being taken in payment on public account. But instead of these results being obtained, banking, and paper credit, and all the wild speculations which for a time can be suspended on its flimsy wings, increased to an extent which America had never known, and threatened consequences which few European countries had ever felt. The United States bank obtained a charter from the state of Pennsylvania, to which it paid a bonus of two millions of dollars. It was thus placed beyond the reach of the president's majority in Congress. Its solidity had not been questioned; it was not denied that its affairs had been conducted with great ability; but the government set every engine at work to thwart and oppose it in the different states. The first measure of aggression was adopted in the states of New York and Ohio, in the respective legislatures of which a motion was made, to prohibit the circulation of all bills and notes of the United States bank within their territory. This threat was rendered nugatory, by the legislature of Pennsylvania immediately introducing a resolution to prohibit the establishment within that State "of any branch, office of agency, and the introduction, passage, or circulation of the bills, notes, checks, draughts, or orders of any bank of any state which has or may hereafter prohibit within such state the establishment of any branch office or agency of any bank" of the state of Pennsylvania. Amidst all this opposition to the United States Bank, the mania of establishing new banks with nominal capital, and increasing nominally the capital of banks already existing, that is, increasing almost indefinitely the quantity of paper money which represented no solid capital, was spreading, like wildfire from, one end of the Union to the other. Virginia, the supposed banking capital of which amounted to nearly seven millions of dollars, increased it to nearly thirteen millions, by adding to the Louis capitals of the existing banks, and creating four new ones. iana incorporated twelve millions of additional stock, and its whole banking capital was stated to amount to seventy-two millions of dollars. Indiana created an internal improvement stock, as it was called, of ten millions of dollars. Massachussets, Alabama, Maine, and other states, entered on the same course; and Pennsylvania, by granting the charter to the United States bank, had incorporated thirty-five millions of capital. It was precisely in New York, which had wished to set itself against the last named of these establishments, that the madness seemed to be wildest. On the 4th, 5th, and 6th of May, the legislature of that state created or increased banking stock to the amount of about six millions of dollars.* At the same |