arliclt's (I’tin j.i'fiiui', hn; f'ti'rc) will)
lieavv duti' s, ('X( itidii’i,^ scnu* of the
r^os! valuable ai liclos of’oiirfxports. Tin*
Vnitrd Stairs ojjfiird iheir ports to Brit
ish vessels from the Colonics, upon terms
as exactly rcrrespondinp; with -those of
the Act o( Parliament, as, in the relative
position of the parties, could he made.
And a’negotiation was comnienccd by mu
tual consent, with the hope, on our part,
ihat a reciprocal spirit of accommoda'ion
and a common sentiment of the impoi t-
itnce of I he trade to the interests of the
inhabitants of the two countries, between
>vhom it must be carried on, would ulli-
inately bring the parties to a compro
niise, with which both rrii^ht hesatislied.
'With this view, the Government of the
United iitates had determined to sacri-
fjce something of that entire reciprocity
whichVin all commercial arrangements
■with Toreign Powers they are entitled to
demand, and to accjuiesce in some ine
qualities disadvantageous to ourselves,
rather than to forego the benefit of a final
and [)ermanent adjustment of this inter
est, to the satisfaction of (ireat Britain
lierself. The negotiation repeatedly sus
pended by accidental circumstances, was,
however, by mutual agreement and ex
press assent, considere(l as pending, and
to be speedily resumed. In the mean
time, another act of Parliament, so doubt
ful and ambiguous in its import as to
iiave been misunderstood by the ofTicers
in the Colonies who were to carry it into
execution, opens again certain Colonial
ports, upon new conditions and terms,
with a threat to close- them against any
nation which may not accept those terms,
as prescribed by the British Ooverninent.
This act passed in July, 1825, not com-
nuinicated to the Government of the Uni
ted States, not understood by the British
Qfiicers of the Customs in the Colonies
%vhere it was to be enforced, was never
theless submitted to the consideration of
Congress, at their last session. With the
knowledge that a negotiation upon the
tubject had long been in progress, and
pledges given of Us resumption at an
early day, it was deemed expedient to
await the result of that negotiation, ra
ther than to subscribe implicitly to terms
the import of which was not clear, and
which the British authorities themselves
in this hemisphere, were not prepared
to explain.
Immediately after the close of
the last Session of Congress, one of
our most distinguished citizens was des
patched as Envoy Extraordinary and
^linister Plenipotentiary to Great Brit
ain, furnished with instructions which
■we could not doubt would lead to a con
clusion of this long controverted interest,
upon terms acceptable to Great Britain.
Upon his arrival, and before he had de
livered his letters of credence, he was
met by an an order of the British Coun
cil, excluding, from and after the first of
December now current, the vessels of
the United States from all the Colonial
British ports, excepting those immedi
ately bordering upon our territories. In
answer to his expostulations upon a mea
sure thus unexpected, he is informed that,
according to the ancient maxims of poli
cy of European nations having colonies,
their trade is an exclusive possession of
the mother country. 'I'hat all participa
tion in it by other nations, is a boon of
favor not forming a subject of negotia
tion, but to he regulated by the Legisla
tive Acts of the Power owning the colo
ny. That the British Government, there
fore, declines negotiating concerning itj
and that, as the United Stales did not
forthwith accept purely and simply the
terms offered by the Act of Parliament,
of July, 1825, Great Britain W(»uld not
now admit the vessels of the United
States even upon the terms on which she
has opened them to the navigation of
other nations.
We have been accustomed to consider
the trade which we have enjoyed with the
British Colonies, rather as an interchange
of mutual benefits, than as a meir favor
received; that, under every circumstance,
■we have given an ample ecmivalent. We
have seen every other nation, holding
colonies, negotiate with other nations,
and grant them, freely, admission to the
C'olonies by I'reaty; and, so far are the
other colonizing nations of Eurojie now
from refusing to negotiate for trade with
their Colonies, that we ourselves have se
cured access to the Colonies of more than
oue of them by 'I'reaty. The refusal,
however, of CJreat Britain to negotiate,
Jeaves to the Utiited States no other al
ternative than that of regulating, or in
terdicting, aUogether, the trade on their
part, according as either measure may
iillVct the interests of our own country;
and, with that exclusive object, I would
jecommend the whole subject to your
calm and catidid deliberations.
It is hojjed that our unavailing exer
tions to accomplish a cordial good under-
atandiiig on this interest, will not have
an unproj^ilious effect upon the other
^reat topics of discussion Ijctweeri the
two Governments. Our Noi’theastern
ajid Northwestern boundaries are still
unadjusted. The Commissioners under
the 7th aiticle of the Treaty of Cihent
have nearly come to the close of their
labors; nor can we renounce the expec
tation, enfeebled as it is, that they may
agre( upon their Keport to the sutisfac-
tioD ' . actjuiescenre of both i)arlies. 'I'he
Comn'issionTor liciuidating the claims,
jT«r iudcmi'y for bluvti carricd away after
the dare of the war, been sUiing
with doubtful prospects of success. Pro-
j)ositions oi’compromise hrt\e, however,
passed between' the two governments,
the result of which, we (latter ourselves,
may yet prove satisfactory. Our- own
dispositions and purjK/ses towards Great
Britain are all friendly ai'.d conciliatory ;
nor can wc abandon, but with strong re
luctance, the belief that they will, ulti-
niately,n»eet a return, not of favors, which
we neither ask nor drsire, but of equal
reciprocity and good will.
With the American Governments of
this hemisphere we continue to maintain
an intercourse altogether friendly, and
between their nations atul ours that com
mercial interchange of v,hich n)utual
benefit is the source, and mutual com
fort and harmony the result, is in a con
tinual state of improvement. The war
between Spain and them, since the fotal
expulsion of the Spanish military force
from their continental territories, has
been little more than nominal; and their
internal tranquillity, though occasionally
menaced by the agitations which civil
wars never fail to leave behind tliem, has
not been affected by any serious calamity.
The Congress of Ministers from seve
ral of those nations which assembled at
Panama, after a short session there, ad
journed to meet again, at a more favora
ble season, in the neighl)orhood of Mex
ico. The decease of one of our Minis
ters on his way to the Isthfnus, and the
ifnpedlments of the season, which delay
ed the depature of the other, deprived
us of the advantage of being representedat
the first meeting of the Congress. There
is, however, no reason to believe that any
of the transactions of the Congress were
of a nature to affect injuriously the inter
ests of the United States, or to require
the interposition of our Ministtrs, had
they been present. Their absence has,
indeed, deprived us of the opportunity
o-f possessing precise and authentic in
formation of the treaties which were con
cluded at Panama; and the whole result
has confirmed me in the conviction of the
expediency to the United Stales of being
represented at the Congress. The sur
viving member of the Mission, appoint
ed during your last session, has accord
ingly proceeded to his destination, and a
successor to his distinguished and lament
ed associate will be nominated to the
Senate. A Treaty of Amity, Navigation
and Commerce, has, in the course of the
last summer, been concluded by our Min
ister Plenipotentiary at Mexico, with the
United Stales of that Confederacy, w hich
will also be laid before ihe Senate, for
their advice w ith regard to its ratification.
In adverting to the present condition of
our fiscal concerns, and to the prospects
of our Revenue, the first remark that calls
our attention, is, that they are less exu
berantly prosperous, than they were at'
the corresponding period of the last year.
The severe shock so extensively sustain
ed by the commercial and manufacturing
interests in Great Britain, has not been
without a perceptible recoil upon our
selves. A reduced importation from a-
broad is necessarily succeeded by a re
duced return to the Treasury at home.
The net revenue of the present year will
not equal that of the last. And the re
ceipts of that which is to come will fall
short of those in the curtent year. The
diminution, however, is in part attribu
table to the flourishing condition of some
of our domestic manufactures, and so
far is compensated by an equivalent
more profitablie to the nation. It is also
highly gratifying to perceive, that the
deficiency in the revenue, while it scarce
ly exceeds the anticipations of the last
year’s estimates from the Treasury, has
not interrupted the application of more
than eleven millions during the present
year, to the* discharge of the principal
and interest of the debt, nor the reduc
tion of upwards of seven millions of the
capital debt itself. The balance in the
Treasury on the first of January last, was
five millions and two hundred and one
thousand six hundred and fifty dollars and
forty-three cents. The receipts from
that time to the 30th of September last,
were nineteen milliotis five hundred and
eighty-five thousand nine hundred and
thirty-two dollars and fifty cents. The,
rcceipt^ of the current quarter, estimat
ed at six millions of dollars, yield, w ith
the sums already leceived, a revenue of
about twenty-five millions and a half for
the year. The expenditures for the three
first quarters of the year have amounted
to eighteen millions seven hundred and
fourteen thousand two hundred and twen
ty-six dollars and sixty-six cents. 'I'he
expenditures of the current quarter are
I’xpected, including the two millions ol'
the principal debt to be paid, to balance
the receipts. So that the expenses of
the year, amounting lo upwards of a
million less than its incon»e, will leave a
proportionally increased balance in the
Treasury on the first of January 1827,
over that of the first of January last. In
stead of five millions two hundred thou
sand, there will be six millions lour hun
dred thousand dollars.
The amount of duties secured on mer
chandise imported from the commence
ment of the year until the 3()th of Sep
tember, is esiiinated at twenty-one mil
lions two hundred and fifiy thousand dol
lars, and the amount that will probably
accrue during the [iresent qtiarter, is es-
tiniated at four millions two hundred and
-fifty thousand, making for th^whole year
l\vcnty-tj,\e miliitiis and a half, from
which tl»c drawbacks .being dcrlucted,
will leave a clear revenue from the cus
toms, rt'ceival)le in the year lBi}7, of a-
bout twenty millions fr>ur hundred thou
sand dollars, which, with the sums to l>e
receivetl from the proceeds of tfie public
lands, the bank dividends, and other in
cidental receipts, will form an aggregate
of about tweniy-lhree millions, a sum
falling biiort of the whole expenses of the
present year, little more than the portion
of those expenditures applied to the dis
charge of the public lebt, beyond the
annual appropriation of ten millions, by
the act of 3d March, 1S17. Allhe.pas-
sage of that act, the public debt amour.l-
ed to one hundred-and twenty-three mil-
lioiis anl a half. On the first of January
next, it w ill be short of seventy-four mil
lions. In the lapse of those ten years,
fifty millions of the public debt, with the
annual charge of upwards of about three
millions of interest upon them, have been
extinguished. At the passage of that
act of the annual appropriation of the ten
millions, seven were absorbed in the pay
ment of interest, and not more than tliree
millions went to reduce the capital of the
debt. Of the same ten millions, at this
time scarcely four are applicable to the
interest, and upwards of six are effective
in melting dow'n the capital. Yet OU'
experience has proved that a revenue con
sisting so largely of imposts and ton
nage, ebbs and flows to an extraordinary
extent, with all the fluctuations incident
to the general commerce of the world.
It is within our recollection that even in
the compass of the last ten years, the re
ceipts of the Treasury were not adequate
to the expenditures of the year; and that
in two successive years it was found ne
cessary to resort to loans lo meet the en-
gagement^ of th« nation. The return
ing tides of the succeeding years replen
ished the public coffers, until they have
again begun to feel the vicissitudes of a
decline. To produce these alterations
of fulness and exhaustion, the relative
operation of abundant or of unfruitful
seasons, the regulations of foreign gov
ernments, political revolutions, the pros
perous or decaying condition of manu
factures, commercial speculations, and
many other causes, not always to be tra
ced, variously combine. We have found
the alternate swells and diminutions em
bracing periods of from two to three
years. The last period of depression to
us was from 1819 to 1822. The corres
ponding revival was from 1823 to the
commencement of the present year. Still
we have no cause to apprehend a depres
sion comparable to that of the former pe
riod, or even to anticipate a deficiency
which will intrench upon the ability to
apply the annual ten millions to the re
duction of the debt. It is well for us,
however, to be admonished of the neces
sity of abiding by the maxims of the most
vigilant economy, and of resorting to all
honorable and useful expedients, for pur
suing with steady and inflexible perse
verance the total discharge of the debt.
Besides the seven million of the loans of
1813, which will have been discharged in
the course of the present year, there were
nine millions which, by the terms of the
contracts, would have been, and are now’,
redeemable. Thirteen millions more of
the loan of 1814, will become redeemable
from and after the expiration of the pre
sent month; and nine other millions from
and after the close of the ensuing year.
They constitute a mass of thirty-one mil
lions of dollars, all bearing, an interest of
six per cent, more than twenty millions
of which will be immediately redeemable,
and the rest within little more than a
year. Leaving of this amount fifteen
millions to continue at the interest of six
per cent., but to be, as far as shall be
ibund practicable, paid ofl’ in the years
1827 and 182S, there is scarcely a doubt,
that the remaining sixteen millions might
within a few months, be discharged by
a loan at not exceeding five per cent, re
deemable in the years 1829 and 1830. By
this operation, a ^um of nearly half a
million of dollars may be saved to t!ie na
tion; and the discharge of the whole
thirty-one millions within the four years,
may be greatly faciliuted, if not wholly
accomplished.
By an act of Congress of 5d March,
1825, a loan, for the purpose now refer
red to, or a subscription to stock, was au
thorized, at an interest not exceding four
and a half per cent. But, at that time,
so large a poriion of the floating capital
of the country was absorbed in commer
cial speculations, and so little was left for
investment in the stocks, that the mea
sure was but partially successful. At
the last session of Congress, the condi
tion of the funds was still unpropitious to
the measure; but the change so soon af
terwards occurred, that, had the author
ity existed to redeem the nine millions
now redeenriable by an exchange of stocks,
or a loan at five per cent, it is morally
cerlaii! that it might have been afi'ected,
and with it a yearly saving of ninety
thousand dollars.-
\^’ilh regard to the collection of Rev
enue of Impost, certain occurrences
have, wiihin the last year, been disclosed
in one or two of ona principal ports,
which engaged the attention ofCongress
at their last session, and may hereafter
require further consideration. Until wiili-
in a very few years, the execution of the
law's for raising the. reveniie, like that of
all our other laws, has l)een enstired more
by the~ moral sense of ihe coinnfunity,
Miat? by t!ie ofa jf alous [iiecauliM),
cr by peiial sanction!?. Coiiading in Ihc
exemplary punctuality and unsullieo in
tegrity of our importing merchants, a
gradual relaxation from the provisions
of the Collection I.aws, a close adherance
to which would have caused inconven
ience and expense to them, had long be
come habitual; and im’uigences hltd been
extended universally, because they had
never been abused. It may be worthy of
your serious consideration, whether some
further legislative provision iT\ay not be
necessary to come in aid of this state ol
unguarded security.
i rom the reports herewith communi
cated of the Secreries of War and of the
Navy with the subsidiary documents an
nexed to them, will be* discovered the
present condition and administration of
our Military establishment on the land St
on the sea. The organization of the Ar
my having undergone no change since
its reduction to the present Peace Estab
lishment in 1821, it remains only to ob
serve, that it is yet found adequate to all
the purposes for which a permanent arm
ed force in time of peace can be needed,
or useful. It may be proper to add, that,
from a difference of opinion between the
late President of the United States and
the Senate, with regard to the construc
tion oftlie act of Congress of 2nd March,
1821, to reduce and fix the Military
Peace Establishment of the United
States, it remains hitherto so far without
execution, that no Colonel has been ap
pointed to command one of the Regiments,
of Artillery. A su|;plementary or ex
planatory act of the Legislature appears
to be the only expedient practicable for re
moving the difficulty of this appointment.
In a period of profound peace, the con
duct of the mere military establishment
forms but u very inconsiderable portion
of the duties devolving upon the admin
istration of the Department of War. It
will be seen by the returns from the sub
ordinate departments of the Army, that
every branch of the service is marked
with order, regulariU, and discipline.
I'hat from the Commanding Cieneral
through all the gradations of superinten
dence, the ofiicers feel 'tiv.'mselves to
have been citizens before they were sol
diers, and that the glory of a Republican
Army must consist in the spirit of free
dom by which it is animated, and of pa
triotism by which it is impelled. It may
be confidently stated, that the moral char
acter of the Army is in a state of contin
ual improvement, and that all the ar
rangements'for the disposal of its parts
have a constant reference to that end.
But to the War Department arc attri
buted other duties, having indeed rela
tion to a future possible condition of war,
but being purely del'ensive, and in their
tendency contributing rather to the se
curity and permanency of peace : The
erection of the fortifications provided for
by Congress and adapted to secure our
shores from hostile invasion : The dis
tribution of the fund of public gratitude
and justice to the pensioners of the Revo
lutionary war : The maintenace of our
relations of peace and of protection with
the Indian Tribes : And the internal
improvements and surveys for the loca
tion of Roads and Canals, which during
the last three sessions of Congress have
engaged so much of their attention, and
may engross so large a share of their fu
ture benefactions to our country.
By the act of the 30th of April, 1824,
suggested and approved by my prede
cessor, the sum of thirty thousand dol
lars was appropriated for the purpose of
causing to be made the necessary surveys,
plans, and estimates, of the routes of
such roads and canals as the President of
the United States might d^em of national
importance in a commercial or military
point of veiw, or necessary for the trans
portation for the public mail—the sur
veys, plans, and estimates for each, when
completed, to be laid before Congress.
In execution of this act, a Board of
Engineers was immediately instituted,
and have been since most assiduously
and constantly occupied in. carrying it
into cffect. The first object to which
their labors were directed, by order of
the late President, was the examination
of the country between the tide w-aters
of the Potomac, the Ohio, and Lake Erie,
to ascertain the i>racticabiliiy of a com
munication between them, to designate
the most suitable route for the same, and
to form plans and estimates in detail of
the expense of execution.
On the 3d of February, 1825, they
made their first report, which was im
mediately communicated to Congress,
and in which they declared that, having
maturely considered the circumstances
obsei'ved by them personally, and care
fully studied the results of such of the
preliminary surveys as were then com
pleted, they were deciiledly of opinion
that the communication was practicable.
At the last session of Congress, before
the Board of Engineers were enabled to
make, lip their second report, containing
a ger.cral plan, and prej)aratory estimate
lor the work, the Committee of the House
ol Representatives upon Hoads and Ca
nals, closed the session with a report,
exprcss^iiig the hope thnt tlie plan and
esiiinate oi‘the Board ol I'ngineers might
at this time be prejiart.d, and that the
subject Le referred to the early and la-
voiable consideration of ('ongress at
their present session. 'I’hat expected
Report of the Board of I'.njjineers is pre
pared. will forth with belaid before you.
l.'iidfjr fho rcsol’-iiion of tJon'jress^ an-
thoriziug the Sccrclary of War to liav?
prepared a complete system of Cavalry
Tactics of the United States, to be re.
ported to Congress at the present session
—a Board of distinguished Oflicers oj
the Army, and of the Militia, has been
convened, whose Report will be submit-
ted to you, with that of the Secretary ol
W'ar. The occasion was thought favor
able for consulting the same Board, aid
ed by the results of a cerrespondence
with the Governors of the several States
and Territories, and other citizens of in-
telligence and experience, upon the ac
knowledged defective condition of oup
Militia system, and upon the improve-
menls of which it is susceptible. Tha
report of the Board upon this subject i»
also submitted for your consideration.
In the estimates of appropriations foj.
the ensuing year, upwards of five millions
of dollars will be submitted for the expen
ditures to be paid from the Department
of War. Less than two fifths of this will
be applicable to the maintenance and
support of the Array. A million and a
half, in the form of pensions, goes as a
scarcely adequate tribute to the scrviccs
and sacrifices of a former age ; and a
more than equal sum, invested in fortifi.
cations, or for the preparations, of inter
nal improvement, provides for the quiet
the comfort, and the bappier existence of
the ages to come. The appropriations
to indemnify those unfortunate remnants
of another race, unable alike to share in
the enjoyments, and to exist in the pres
ence of civilization, though swelling in
recent years to a magniiudt burdensome
to the Treasury, are generally not without
their equivalents, in profitable value ; or
serve lo discarge the Union from en
gagements more burdensome than debt.
In like manner, the estimate of ap-
j)ropriations for the Navy Department
will present an aggregate sum of up
wards of three millions of dollars. About
one-half of these, however,cover the cur
rent expenditures of the Navy in actuaV
service, and one-half constitutes a fund
of national properly, the pledge of our
future glory and defence. It was scarce
ly one short year after the close of the
late war, and when the burden of its ex
penses and charges were weighing hca*
viest upon the country, that Congress,
by the act of 29th April, 1816, appro
priated one million of dollars annually,
for eight years, to \.hc f'radual increase of
the Nnvij. At a subsequent period, this
annual appropriation was reduced to half
a million for six years, of which ihe
present year is the last. A yet more re
cent appropriation the last two years for
building ten Sloops of War, has nearly re
stored the original appropriation of 181C,
of a million for every year. The result
is'before us all. We have twelve line-
of-battle Ships, twenty Frigates, and
Sloops of W’ar in proportion; which,
with a few months of preparation, may
present a line of floating fortifications
along the whole range of our coast, ready
to meet any invader who might attempt
to set foot upon our shores ; Combin
ing with a system of fortifications upon
the shores themselves, commenced about,
the same lime under the auspices of my
immediate predecessor,hitherto systema-
lically pursued, it has placed in our pos
session the most efl’ective sinews of war,
and has left us at once an example and i
lesson, from which our own duties mar
be inferred. The gradual increase of
the Navy was the principle of which the
act of 29th April, 1816, was the first de
velopment. It was the introduction of»
system to act upon the character and
history ot our country for an indefinite se-
riseof ages. It was a declaration of that
Congress to their constituents and to
posterity, that it was the destiny and the
duty of these Confederated States, to be
come, in regular process of lime, and by
no petty advances, a great Naval Power.
That which they proposed to accomplish
in eight years, is rather to be considered
as the measure of their means, than the
limitation of their design. They looked
lorward for a term of years sufficient for
the accomplishment of a definite portion
of their purpose ; and they left to "
their successors to fill up the canvass
of which they had traced the large and
prophetic outline. The ships of t;he line,
and frigates, which they had in contein-
plalion, will be shortly completed. The
time which they had allotted for the ac
complishmcnt of the work has more that’
elapsed. It remains for your considera
tion how their successors may contri
bute their poriion of toil and of treasure
for live benefit of the succeeding age, in f
the gradual increase of our Navy. There
is, j)crhaps,no part of the exercise of the
Constitutional Powers of the Federa’
Government, which has given more gen
eral satisfaction to the People of the Un
ion, than this. The system has not been
thus vigorously introduced, and hitherto
sustained, to be now departed from, o'* J
abandoned. In continuing to ])rovi(le t
for ihf' gradual increase of the Navy, it ?
may not be necessary or expedient to adJ
lor tlie present any more to the number
of our ships ; but should you deem it acl-
visable lo continue the yearly appr^p'*'
aiioii of half a million to the same objcct-'',
it may be proiiiably expended, in pro
viding asupj)ly (jf timber to be seasoiico*
and other tnatenals for future use ; in
construction of docks, or in laying
foudations of a School fur Naval
tion, as to the wisdom of Congress citl>'-’'
of tliose m_easure niiiy appear to claim
picfcrrcnc>;. ‘