It appearing from long experience that no satisfactory arrangement could be

formed of the commercial intercourse between the United States and the

British colonies in this hemisphere by legislative acts while each party

pursued its own course without agreement or concert with the other, a

proposal has been made to the British Government to regulate this commerce

by treaty, as it has been to arrange in like manner the just claim of the

citizens of the United States inhabiting the States and Territories

bordering on the lakes and rivers which empty into the St. Lawrence to the

navigation of that river to the ocean. For these and other objects of high

importance to the interests of both parties a negotiation has been opened

with the British Government which it is hoped will have a satisfactory

result.

The commissioners under the 6th and 7th articles of the treaty of Ghent

having successfully closed their labors in relation to the 6th, have

proceeded to the discharge of those relating to the 7th. Their progress in

the extensive survey required for the performance of their duties justifies

the presumption that it will be completed in the ensuing year.

The negotiation which had been long depending with the French Government on

several important subjects, and particularly for a just indemnity for

losses sustained in the late wars by the citizens of the United States

under unjustifiable seizures and confiscations of their property, has not

as yet had the desired effect. As this claim rests on the same principle

with others which have been admitted by the French Government, it is not

perceived on what just ground it can be rejected. A minister will be

immediately appointed to proceed to France and resume the negotiation on

this and other subjects which may arise between the two nations.

At the proposal of the Russian Imperial Government, made through the

minister of the Emperor residing here, a full power and instructions have

been transmitted to the minister of the United States at St. Petersburg to

arrange by amicable negotiation the respective rights and interests of the

two nations on the North West coast of this continent. A similar proposal

had been made by His Imperial Majesty to the Government of Great Britain,

which has likewise been acceded to. The Government of the United States has

been desirous by this friendly proceeding of manifesting the great value

which they have invariably attached to the friendship of the Emperor and

their solicitude to cultivate the best understanding with his Government.

In the discussions to which this interest has given rise and in the

arrangements by which they may terminate the occasion has been judged

proper for asserting, as a principle in which the rights and interests of

the United States are involved, that the American continents, by the free

and independent condition which they have assumed and maintain, are

henceforth not to be considered as subjects for future colonization by any

European powers.

Since the close of the last session of Congress the commissioners and

arbitrators for ascertaining and determining the amount of indemnification

which may be due to citizens of the United States under the decision of His

Imperial Majesty the Emperor of Russia, in conformity to the convention

concluded at St. Petersburg on July 12th, 1822, have assembled in this

city, and organized themselves as a board for the performance of the

duties assigned to them by that treaty. The commission constituted under

the 11th article of the treaty of February 22nd, 1819, between the United

States and Spain is also in session here, and as the term of three years

limited by the treaty for the execution of the trust will expire before

the period of the next regular meeting of Congress, the attention of the

Legislature will be drawn to the measures which may be necessary to

accomplish the objects for which the commission was instituted.

In compliance with a resolution of the House of Representatives adopted at

their last session, instructions have been given to all the ministers of

the United States accredited to the powers of Europe and America to propose

the proscription of the African slave trade by classing it under the

denomination, and inflicting on its perpetrators the punishment, of piracy.

Should this proposal be acceded to, it is not doubted that this odious and

criminal practice will be promptly and entirely suppressed. It is earnestly

hoped that it will be acceded to, from the firm belief that it is the most

effectual expedient that can be adopted for the purpose.

At the commencement of the recent war between France and Spain it was

declared by the French Government that it would grant no commissions to

privateers, and that neither the commerce of Spain herself nor of neutral

nations should be molested by the naval force of France, except in the

breach of a lawful blockade. This declaration, which appears to have been

faithfully carried into effect, concurring with principles proclaimed and

cherished by the United States from the first establishment of their

independence, suggested the hope that the time had arrived when the

proposal for adopting it as a permanent and invariable rule in all future

maritime wars might meet the favorable consideration of the great European

powers. Instructions have accordingly been given to our ministers with

France, Russia, and Great Britain to make those proposals to their

respective Governments, and when the friends of humanity reflect on the

essential amelioration to the condition of the human race which would

result from the abolition of private war on the sea and on the great

facility by which it might be accomplished, requiring only the consent of a

few sovereigns, an earnest hope is indulged that these overtures will meet

with an attention animated by the spirit in which they were made, and that

they will ultimately be successful.

The ministers who were appointed to the Republics of Colombia and Buenos

Ayres during the last session of Congress proceeded shortly afterwards to

their destinations. Of their arrival there official intelligence has not

yet been received. The minister appointed to the Republic of Chile will

sail in a few days. An early appointment will also be made to Mexico. A

minister has been received from Colombia, and the other Governments have

been informed that ministers, or diplomatic agents of inferior grade, would

be received from each, accordingly as they might prefer the one or the

other.

The minister appointed to Spain proceeded soon after his appointment for

Cadiz, the residence of the Sovereign to whom he was accredited. In

approaching that port the frigate which conveyed him was warned off by the

commander of the French squadron by which it was blockaded and not

permitted to enter, although apprised by the captain of the frigate of the

public character of the person whom he had on board, the landing of whom

was the sole object of his proposed entry. This act, being considered an

infringement of the rights of ambassadors and of nations, will form a just

cause of complaint to the Government of France against the officer by whom

it was committed.

The actual condition of the public finances more than realizes the

favorable anticipations that were entertained of it at the opening of the

last session of Congress. On the first of January there was a balance in

the Treasury of $4,237,427.55. From that time to the 30th of September the

receipts amounted to upward of $16.1 millions, and the expenditures to

$11.4 millions. During the 4th quarter of the year it is estimated that

the receipts will at least equal the expenditures, and that there will

remain in the Treasury on the first day of January next a surplus of

nearly $9 millions.

On January 1st, 1825, a large amount of the war debt and a part of the

Revolutionary debt become redeemable. Additional portions of the former

will continue to become redeemable annually until the year 1835. it is

believed, however, that if the United States remain at peace the whole of

that debt may be redeemed by the ordinary revenue of those years during

that period under the provision of the act of March 3rd, 1817, creating the

sinking fund, and in that case the only part of the debt that will remain

after the year 1835 will be the $7 millions of 5% stock subscribed to the

Bank of the United States, and the 3% Revolutionary debt, amounting to

$13,296,099.06, both of which are redeemable at the pleasure of the

Government.

The state of the Army in its organization and discipline has been gradually

improving for several years, and has now attained a high degree of

perfection. The military disbursements have been regularly made and the

accounts regularly and promptly rendered for settlement. The supplies of

various descriptions have been of good quality, and regularly issued at all

of the posts. A system of economy and accountability has been introduced

into every branch of the service which admits of little additional

improvement. This desirable state has been attained by the act reorganizing

the staff of the Army, passed on April 14th, 1818.

The moneys appropriated for fortifications have been regularly and

economically applied, and all the works advanced as rapidly as the amount

appropriated would admit. Three important works will be completed in the

course of this year--that is, Fort Washington, Fort Delaware, and the

fort at the Rigolets, in Louisiana.

The Board of Engineers and the Topographical Corps have been in constant

and active service in surveying the coast and projecting the works

necessary for its defense.

The Military Academy has attained a degree of perfection in its discipline

and instruction equal, as is believed, to any institution of its kind in

any country.

The money appropriated for the use of the Ordnance Department has been

regularly and economically applied. The fabrication of arms at the national

armories and by contract with the Department has been gradually improving

in quality and cheapness. It is believed that their quality is now such as

to admit of but little improvement.

The completion of the fortifications renders it necessary that there should

be a suitable appropriation for the purpose of fabricating the cannon and

carriages necessary for those works.

Under the appropriation of $5,000 for exploring the Western waters for the

location of a site for a Western armory, a commission was constituted,

consisting of Colonel McRee, Colonel Lee, and Captain Talcott, who have

been engaged in exploring the country. They have not yet reported the

result of their labors, but it is believed that they will be prepared to do

it at an early part of the session of Congress.

During the month of June last General Ashley and his party, who were

trading under a license from the Government, were attacked by the Ricarees

while peaceably trading with the Indians at their request. Several of the

party were killed and wounded and their property taken or destroyed.

Colonel Leavenworth, who commanded Fort Atkinson, at the Council Bluffs,

the most western post, apprehending that the hostile spirit of the Ricarees

would extend to other tribes in that quarter, and that thereby the lives of

the traders on the Missouri and the peace of the frontier would be

endangered, took immediate measures to check the evil.

With a detachment of the regiment stationed at the Bluffs he successfully

attacked the Ricaree village, and it is hoped that such an impression has

been made on them as well as on the other tribes on the Missouri as will

prevent a recurrence of future hostility.

The report of the Secretary of War, which is herewith transmitted, will

exhibit in greater detail the condition of the Department in its various

branches, and the progress which has been made in its administration during

the three first quarters of the year.

I transmit a return of the militia of the several States according to the

last reports which have been made by the proper officers in each to the

Department of War. By reference to this return it will be seen that it is

not complete, although great exertions have been made to make it so. As the

defense and even the liberties of the country must depend in times of

imminent danger on the militia, it is of the highest importance that it be

well organized, armed, and disciplined throughout the Union.

The report of the Secretary of War shews the progress made during the three

first quarters of the present year by the application of the fund

appropriated for arming the militia. Much difficulty is found in

distributing the arms according to the act of Congress providing for it

from the failure of the proper departments in many of the States to make

regular returns. The act of May 12, 1820 provides that the system of

tactics and regulations of the various corps of the Regular Army shall be

extended to the militia. This act has been very imperfectly executed from

the want of uniformity in the organization of the militia, proceeding from

the defects of the system itself, and especially in its application to that

main arm of the public defense. It is thought that this important subject

in all its branches merits the attention of Congress.

The report of the Secretary of the Navy, which is now communicated,

furnishes an account of the administration of that Department for the three

first quarters of the present year, with the progress made in augmenting

the Navy, and the manner in which the vessels in commission have been

employed.

The usual force has been maintained in the Mediterranean Sea, the Pacific

Ocean, and along the Atlantic coast, and has afforded the necessary

protection to our commerce in those seas.

In the West Indies and the Gulf of Mexico our naval force has been

augmented by the addition of several small vessels provided for by the "act

authorizing an additional naval force for the suppression of piracy",

passed by Congress at their last session. That armament has been eminently

successful in the accomplishment of its object. The piracies by which our

commerce in the neighborhood of the island of Cuba had been afflicted have

been repressed and the confidence of our merchants in a great measure

restored.

The patriotic zeal and enterprise of Commodore Porter, to whom the command

of the expedition was confided, has been fully seconded by the officers and

men under his command. And in reflecting with high satisfaction on the

honorable manner in which they have sustained the reputation of their

country and its Navy, the sentiment is alloyed only by a concern that in

the fulfillment of that arduous service the diseases incident to the season

and to the climate in which it was discharged have deprived the nation of

many useful lives, and among them of several officers of great promise.

In the month of August a very malignant fever made its appearance at

Thompsons Island, which threatened the destruction of our station there.

Many perished, and the commanding officer was severely attacked. Uncertain

as to his fate and knowing that most of the medical officers had been

rendered incapable of discharging their duties, it was thought expedient to

send to that post an officer of rank and experience, with several skilled

surgeons, to ascertain the origin of the fever and the probability of its

recurrence there in future seasons; to furnish every assistance to those

who were suffering, and, if practicable, to avoid the necessity of

abandoning so important a station. Commodore Rodgers, with a promptitude

which did him honor, cheerfully accepted that trust, and has discharged it

in the manner anticipated from his skill and patriotism. Before his arrival

Commodore Porter, with the greater part of the squadron, had removed from

the island and returned to the United States in consequence of the

prevailing sickness. Much useful information has, however, been obtained as

to the state of the island and great relief afforded to those who had been

necessarily left there.

Although our expedition, cooperating with an invigorated administration of

the government of the island of Cuba, and with the corresponding active

exertions of a British naval force in the same seas, have almost entirely

destroyed the unlicensed piracies from that island, the success of our

exertions has not been equally effectual to suppress the same crime, under

other pretenses and colors, in the neighboring island of Porto Rico. They

have been committed there under the abusive issue of Spanish commissions.

At an early period of the present year remonstrances were made to the

governor of that island, by an agent who was sent for the purpose, against

those outrages on the peaceful commerce of the United States, of which many

had occurred. That officer, professing his own want of authority to make

satisfaction for our just complaints, answered only by a reference of them

to the Government of Spain. The minister of the United States to that court

was specially instructed to urge the necessity of immediate and effectual

interposition of that Government, directing restitution and indemnity for

wrongs already committed and interdicting the repetition of them. The

minister, as has been seen, was debarred access to the Spanish Government,

and in the mean time several new cases of flagrant outrage have occurred,

and citizens of the United States in the island of Porto Rico have

suffered, and others been threatened with assassination for asserting their

unquestionable rights even before the lawful tribunals of the country.

The usual orders have been given to all our public ships to seize American

vessels in the slave trade and bring them in for adjudication, and I have

the gratification to state that not one so employed has been discovered,

and there is good reason to believe that our flag is now seldom, if at all,

disgraced by that traffic.

It is a source of great satisfaction that we are always enabled to recur to

the conduct of our Navy with price and commendation. As a means of national

defense it enjoys the public confidence, and is steadily assuming

additional importance. It is submitted whether a more efficient and equally

economical organization of it might not in several respects be effected. It

is supposed that higher grades than now exist by law would be useful. They

would afford well-merited rewards to those who have long and faithfully

served their country, present the best incentives to good conduct, and the

best means of insuring a proper discipline; destroy the inequality in that

respect between military and naval services, and relieve our officers from

many inconveniences and mortifications which occur when our vessels meet

those of other nations, ours being the only service in which such grades do

not exist.

A report of the Post Master-General, which accompanies this communication,

will shew the present state of the Post-Office Department and its general

operations for some years past.

There is established by law 88,600 miles of post roads, on which the mail

is now transported 85,700 miles, and contracts have been made for its

transportation on all the established routes, with one or two exceptions.

There are 5,240 post offices in the Union, and as many post masters. The

gross amount of postage which accrued from July 1st, 1822 to July 1st,

1823 was $1,114,345.12. During the same period the expenditures of the

Post-Office Department amounted to $1,169,885.51 and consisted of the

following items, viz: Compensation to post masters, $353,995.98;

incidental expenses, $30,866.37; transportation of the mail, $784,600.08;

payments into the Treasury, $423.08. On the first of July last there was

due to the Department from post masters $135,245.28; from late post

masters and contractors, $256,749.31; making a total amount of balances

due to the Department of $391,994.59.

These balances embrace all delinquencies of post masters and contractors

which have taken place since the organization of the Department. There was

due by the Department to contractors on the first of July last $26,548.64.

The transportation of the mail within five years past has been greatly

extended, and the expenditures of the Department proportionably increased.

Although the postage which has accrued within the last three years has

fallen short of the expenditures $262,821.46, it appears that collections

have been made from the outstanding balances to meet the principal part of

the current demands.

It is estimated that not more than $250,000 of the above balances can be

collected, and that a considerable part of this sum can only be realized by

a resort to legal process. Some improvements in the receipts for postage is

expected. A prompt attention to the collection of moneys received by post

masters, it is believed, will enable the Department to continue its

operations without aid from the Treasury, unless the expenditures shall be

increased by the establishment of new mail routes.

A revision of some parts of the post office law may be necessary; and it is

submitted whether it would not be proper to provide for the appointment of

post masters, where the compensation exceeds a certain amount, by

nomination to the Senate, as other officers of the General Government are

appointed.

Having communicated my views to Congress at the commencement of the last

session respecting the encouragement which ought to be given to our

manufactures and the principle on which it should be founded, I have only

to add that those views remain unchanged, and that the present state of

those countries with which we have the most immediate political relations

and greatest commercial intercourse tends to confirm them. Under this

impression I recommend a review of the tariff for the purpose of affording

such additional protection to those articles which we are prepared to

manufacture, or which are more immediately connected with the defense and

independence of the country.

The actual state of the public accounts furnishes additional evidence of

the efficiency of the present system of accountability in relation to the

public expenditure. Of the moneys drawn from the Treasury since

March 4th, 1817, the sum remaining unaccounted for on the 30th of September

last is more than $1.5 millions less than on the 30th of September

preceding; and during the same period a reduction of nearly $1 million

has been made in the amount of the unsettled accounts for moneys advanced

previously to March 4th, 1817. It will be obvious that in proportion as

the mass of accounts of the latter description is diminished by settlement

the difficulty of settling the residue is increased from the consideration

that in many instances it can be obtained only by legal process. For more

precise details on this subject I refer to a report from the first

Comptroller of the Treasury.

The sum which was appropriated at the last session for the repairs of the

Cumberland road has been applied with good effect to that object. A final

report has not been received from the agent who was appointed to

superintend it. As soon as it is received it shall be communicated to

Congress.

Many patriotic and enlightened citizens who have made the subject an object

of particular investigation have suggested an improvement of still greater

importance. They are of the opinion that the waters of the Chesapeake and

Ohio may be connected together by one continued canal, and at an expense

far short of the value and importance of the object to be obtained. If this

could be accomplished it is impossible to calculate the beneficial

consequences which would result from it.

A great portion of the produce of the very fertile country through which it

would pass would find a market through that channel. Troops might be moved

with great facility in war, with cannon and every kind of munition, and in

either direction. Connecting the Atlantic with the Western country in a

line passing through the seat of the National Government, it would

contribute essentially to strengthen the bond of union itself.

Believing as I do that Congress possess the right to appropriate money for

such a national object (the jurisdiction remaining to the States through

which the canal would pass), I submit it to your consideration whether it

may not be advisable to authorize by an adequate appropriation the

employment of a suitable number of the officers of the Corps of Engineers

to examine the unexplored ground during the next season and to report their

opinion thereon. It will likewise be proper to extend their examination to

the several routes through which the waters of the Ohio may be connected by

canals with those of Lake Erie.

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