A country which is peopled by a greater variety of races than any other is sure to suffer materially by comparison with other nations as regards homogeneity. The different races which have come together in the United States having this difficulty to contend with in the process of welding heterogeneous materials into one nation, there would seem to be, as the result of such an experiment, a greater diversity of interests, and in consequence a greater disinclination of the particles or individuals to cohere for their mutual benefit than is found in countries formed by a more gradual process of merging alien races.

From the Government of the United States downwards the system upon which the nation's affairs, both political and social, are managed reminds us very much of that which would be pursued by a partnership arrangement among the children of several families who had prematurely suffered the loss of their parents. In making this analogy we do not mean to be disrespectful to our kinsmen and the national fabric which in many respects we are proud to acknowledge as an offshoot of the British Empire, and we venture to affirm that this statement can be supported by the written opinions of Americans themselves. A hundred years has no doubt made a difference in many respects, but we think the comparatively recent revelations of corruption among the government officials from the highest to the lowest, shows clearly enough that commercial morality and patriotism are plants in that vast community of but a feeble growth. The prime object with thousands who go to America is to make a fortune and return, and it is not difficult to understand that in such circumstances social position, political fame, and a desire to be respected for consistent integrity of purpose, are considerations secondary to that of the power and influence which is enjoyed by the millionaire. The inhabitants of the United States strive to do everything with an electric speed; while much is achieved, and a good deal is done well, that form of construction which is in the nature of it incompatible with rapidity necessarily suffers. The very atmosphere of the United States has, from the commencement of the colonization, been charged with different elements to those in which the work in the old world has been perfected, and which is in consequence so much more worth preserving. The life of a generation in the new world may be said, with little exaggeration, to resemble closely that of the successful gold miner, who in the brief period of his existence is able to enjoy luxuries which few in Europe can partake of who are not heirs to fortunes, or the great grand descendants of hard-working successful men of business. Thus it comes that all the institutions, whether they be banks or any other, that have been created in the United States have been reared upon too slender a foundation, and have, as a rule, been forced to unnatural and unsound development.

No stronger proof of the correctness of this line of argument could be advanced than the declaration of the Hon.E. G. Spaulding, that "the great mistake-greater than all other mistakes in the management of the war (the rebellion of the southern states which was finally quelled in 1865) - was the abrogation of the right to fund the greenback currency into gold bonds, as provided for in the two preceding acts." In his centennial address at the meeting of the bankers' association at the international exposition at Philadelphia on May 30th, 1876, Mr. Spaulding reverted to the subject, and made the following remarks :

"All the other mistakes, civil and military, which occurred during the war were of slight consequence when compared with the mischievous and grave consequences resulting from this one mistake. Taking away from the holder of this paper currency the right to redeem it on demand in gold bonds, besides being manifestly unjust to the holders, let the Government and the whole country-banks and people - down into the slough of an irredeemable paper currency, where we have remained for over eleven years. From 1864 to 1876 it has been a dead weight on the business and industry of the country, without elasticity, and without any provisions whatever being made for its redemption or payment. Its redundancy, and consequent depreciation, has operated very injuriously to the legitimate business of the country. It was an instrument of expenditure, a visible evidence of the waste of war, and not possessing the essential elements of a commercial currency. A majority of the people, however, have been deluded into the belief that those broken promises, mere evidences of debt, were money and a proper standard of value as a basis for doing business, and have plunged headlong into all sorts of speculation, unprofitable enterprises, extravagance in living, general abuse of credit, idleness and consequent demoralization.

" If the right to fund the greenbacks into the 6 per cent. gold bonds had not been abrogated, no financier or practical business man whose opinion is worth quoting can doubt that we would have gone to specie payment within two or three years after the close of the war, in spite of ourselves. The individual indebtedness at the close of the war in 1865 was small. Every one was comparatively free from debt. The 6 per cent. gold bonds were sought for as an investment. They soon appreciated to par in gold, and if the right to fund had been continued, the greenback currency would have appreciated to par in gold along with bonds. The legal tender act would have served its purpose as a war measure, and we would have returned to the specie standard without material detriment to the legitimate business of the country. In this way we would have avoided a large part of the extravagance and demoralization that has been so reckless since the close of the war."

The strenuous efforts that were made to pay off the debt incurred through that war were laudable enough from one point of view, but from that of scientific economy may be likened to the ingenuity of the driver of a heavily-laden van who on reaching the bottom of a hill should elect to procure additional horses to drag his load up the next in preference to removing the skid. Of all obstacles to the development and prosperity of a great commercial country protective tariffs and a depreciated currency are the worst. As regards the former the object very likely was the emancipation of the States from European manufacturers. There are no signs as yet of success being achieved in this respect, although many gloomy predictions have been made on the subject.

"With reference to the latter we prefer to give Mr. Spaulding's opinion. In treating the subject he speaks of the panic of 1873, "after the right to fund the greenback currency into 6 per cent. gold bonds was revoked in 1863, which rendered this currency irredeemable, credit became so expanded under the excessive issues of paper currency and other obligations during the war, that neither the banks, the Clearing House, nor any other human agency could restrain it within reasonable limits, especially under the vacillating course adopted by congress. The abuse of credit became general in the creation of debts in all its forms-states, cities, counties, corporations, and individuals combined to swell the paper bubble until it finally burst in the great panic of 1873. The combination of the banks in the Clearing House in New York exerted a most powerful influence in staying the calamity, and preventing the general suspension of all the banks. By an extra form of credit in the shape of Clearing House certificates, they continued to pay and liquidate a very large amount of debts each day, without paying money for even resulting balances. The Clearing House associations in other cities exerted a favorable influence in the same direction. The panicy feeling passed away in due time, and the banks again resumed their former mode of settling balances. The temporary Clearing House certificates improvised during the panic were soon after redeemed and taken off the market."

There was no organized bank in the thirteen colonies when their independence was declared in 1776. Gold and silver were the basis upon which the limited foreign commerce was carried on. At the present time there are according to Mr. Spaulding within the United States 907 chartered state banks, 2118 national banks, 666 savings banks, and 2375 private bankers, making a total of 6066. The same authority gives the following particulars of the banks that were organized in the early years of the Republic.