It is impossible to look back on the occurrences of the late wars in

Europe, and to behold the disregard which was paid to our rights as a

neutral power, and the waste which was made of our commerce by the parties

to those wars by various acts of their respective Governments, and under

the pretext by each that the other had set the example, without great

mortification and a fixed purpose never to submit to the like in future. An

attempt to remove those causes of possible variance by friendly negotiation

and on just principles which should be applicable to all parties could, it

was presumed, be viewed by none other than as a proof of an earnest desire

to preserve those relations with every power.

In the late war between France and Spain a crisis occurred in which it

seemed probable that all controvertible principles involved in such wars

might be brought into discussion and settled to the satisfaction of all

parties. Propositions having this object in view have been made to the

Governments of Great Britain, France, Russia, and of other powers, which

have been received in a friendly manner by all, but as yet no treaty has

been formed with either for its accomplishment. The policy will, it is

presumed, be persevered in, and in the hope that it may be successful.

It will always be recollected that with one of the parties to those wars

and from whom we received those injuries, we sought redress by war. From

the other, by whose then reigning Government our vessels were seized in

port as well as at sea and their cargoes confiscated, indemnity has been

expected, but has not yet been rendered. It was under the influence of the

latter that our vessels were likewise seized by the Governments of Spain,

Holland, Denmark, Sweden, and Naples, and from whom indemnity has been

claimed and is still expected, with the exception of Spain, by whom it has

been rendered.

With both parties we had abundant cause of war, but we had no alternative

but to resist that which was most powerful at sea and pressed us nearest at

home. With this all differences were settled by a treaty, founded on

conditions fair and honorable to both, and which has been so far executed

with perfect good faith. It has been earnestly hoped that the other would

of its own accord, and from a sentiment of justice and conciliation, make

to our citizens the indemnity to which they are entitled, and thereby

remove from our relations any just cause of discontent on our side.

It is estimated that the receipts into the Treasury during the current

year, exclusive of loans, will exceed $18.5 millions, which, with the

sum remaining in the Treasury at the end of the last year, amounting

to $9,463,922.81 will, after discharging the current disbursements of

the year, the interest on the public debt, and upward of $11,633,011.52

of the principal, leave a balance of more than $3 millions in the Treasury

on the first day of January next.

A larger amount of the debt contracted during the late war, bearing an

interest of 6%, becoming redeemable in the course of the ensuing year than

could be discharged by the ordinary revenue, the act of the 26th of May

authorized a loan of $5 millions at 4.5% to meet the same. By this

arrangement an annual saving will accrue to the public of $75,000.

Under the act of the 24th of May last a loan of $5 millions was authorized,

In order to meet the awards under the Florida treaty, which was negotiated

at par with the Bank of the United States at 4.5%, the limit of interest

fixed by the act. By this provision the claims of our citizens who had

sustained so great a loss by spoliations, and from whom indemnity had been

so long withheld, were promptly paid. For these advances the public will

be amply repaid at no distant day by the sale of the lands in Florida. Of

the great advantages resulting from the acquisition of the Territory in

other respects too high an estimate can not be formed.

It is estimated that the receipts into the Treasury during the year 1825

will be sufficient to meet the disbursements of the year, including the

sum of $10 millions, which is annually appropriated by the act of

constituting the sinking fund to the payment of the principal and interest

of the public debt.

The whole amount of the public debt on the first of January next may be

estimated at $86 millions, inclusive of $2.5 millions of the loan

authorized by the act of the 26th of May last. In this estimate is

included a stock of $7 millions, issued for the purchase of that amount

of the capital stock of the Bank of the United States, and which, as the

stock of the bank still held by the Government will at least be fully

equal to its reimbursement, ought not to be considered as constituting

a part of the public debt.

Estimating, then, the whole amount of the public debt at $79 millions

and regarding the annual receipts and expenditures of the Government, a

well-founded hope may be entertained that, should no unexpected event

occur, the whole of the public debt may be discharged in the course of

ten years, and the Government be left at liberty thereafter to apply such

portion of the revenue as may not be necessary for current expenses to

such other objects as may be most conducive to the public security and

welfare. That the sums applicable to these objects will be very

considerable may be fairly concluded when it is recollected that a

large amount of the public revenue has been applied since the late

war to the construction of the public buildings in this city; to the

erection of fortifications along the coast and of arsenals in different

parts of the Union; to the augmentation of the Navy; to the extinguishment

of the Indian title to large tracts of fertile territory; to the

acquisition of Florida; to pensions to Revolutionary officers and

soldiers, and to invalids of the late war.

On many of these objects the expense will annually be diminished and cease

at no distant period on most of them.

On the 1st of January, 1817, the public debt amounted to $123,491,965.16,

and, notwithstanding the large sums which have been applied to these

objects, it has been reduced since that period $37,446,961.78. The last

portion of the public debt will be redeemable on January 1st, 1835, and,

while there is the best reason to believe that the resources of the

Government will be continually adequate to such portions of it as may

become due in the interval, it is recommended to Congress to seize every

opportunity which may present itself to reduce the rate of interest on

every part thereof. The high state of the public credit and the great

abundance of money are at this time very favorable to such a result. It

must be very gratifying to our fellow citizens to witness this flourishing

state of the public finances when it is recollected that no burthen

whatever has been imposed upon them.

The military establishment in all its branches, in the performance of the

various duties assigned to each, justifies the favorable view which was

presented of the efficiency of its organization at the last session. All

the appropriations have been regularly applied to the objects intended by

Congress, and so far as the disbursements have been made the accounts have

been rendered and settled without loss to the public.

The condition of the Army itself, as relates to the officers and men, in

science and discipline is highly respectable. The Military Academy, on

which the Army essentially rests, and to which it is much indebted for this

state of improvement, has attained, in comparison with any other

institution of a like kind, a high degree of perfection.

Experience, however, has shewn that the dispersed condition of the corps of

artillery is unfavorable to the discipline of that important branch of the

military establishment. To remedy this inconvenience, eleven companies have

been assembled at the fortification erected at Old Point Comfort as a

school for artillery instruction, with intention as they shall be perfected

in the various duties of that service to order them to other posts, and, to

supply their places with other companies for instruction in like manner. In

this mode a complete knowledge of the science and duties of this arm will

be extended throughout the whole corps of artillery. But to carry this

object fully into effect will require the aid of Congress, to obtain which

the subject is now submitted to your consideration.

Of the progress which has been made in the construction of fortifications

for the permanent defense of our maritime frontier, according to the plan

decided on and to the extent of the existing appropriations, the report of

the Secretary of War, which is herewith communicated, will give a detailed

account. Their final completion can not fail to give great additional

security to that frontier, and to diminish proportionably the expense of

defending it in the event of war.

The provisions in several acts of Congress of the last session for the

improvement of the navigation of the Mississippi and the Ohio, of the

harbor of Presqu'isle, on Lake Erie, and the repair of the Plymouth beach

are in a course of regular execution; and there is reason to believe that

the appropriation in each instance will be adequate to the object. To carry

these improvements fully into effect, the superintendence of them has been

assigned to officers of the Corps of Engineers.

Under the act of 30th April last, authorizing the President to cause a

survey to be made, with the necessary plans and estimates, of such roads

and canals as he might deem of national importance in a commercial or

military point of view, or for the transportation of the mail, a board has

been instituted, consisting of two distinguished officers of the Corps of

Engineers and a distinguished civil engineer, with assistants, who have

been actively employed in carrying into effect the object of the act. They

have carefully examined the route between the Potomac and the Ohio rivers;

between the latter and Lake Erie; between the Alleghany and the

Susquehannah; and the routes between the Delaware and the Raritan,

Barnstable and Buzzards Bay, and between Boston Harbor and Narraganset Bay.

Such portion of the Corps of Topographical Engineers as could be spared

from the survey of the coast has been employed in surveying the very

important route between the Potomac and the Ohio. Considerable progress has

been made in it, but the survey can not be completed until the next season.

It is gratifying to add, from the view already taken, that there is good

cause to believe that this great national object may be fully

accomplished.

It is contemplated to commence early in the next season the execution of

the other branch of the act--that which relates to roads--and with the

survey of a route from this city, through the Southern States, to New

Orleans, the importance of which can not be too highly estimated. All the

officers of both the corps of engineers who could be spared from other

services have been employed in exploring and surveying the routes for

canals. To digest a plan for both objects for the great purposes specified

will require a thorough knowledge of every part of our Union and of the

relation of each part to the others and of all to the seat of the General

Government. For such a digest it will be necessary that the information be

full, minute, and precise.

With a view to these important objects, I submit to the consideration of

the Congress the propriety of enlarging both the corps of engineers--the

military and topographical. It need scarcely be remarked that the more

extensively these corps are engaged in the improvement of their country, in

the execution of the powers of Congress, and in aid of the States in such

improvements as lie beyond that limit, when such aid is desired, the

happier the effect will be in many views of which the subject is

perceptible. By profiting of their science the works will always be well

executed, and by giving to the officers such employment our Union will

derive all the advantage, in peace as well as in war, from their talents

and services which they can afford. In this mode, also, the military will

be incorporated with the civil, and unfounded and injurious distinctions

and prejudices of every kind be done away. To the corps themselves this

service can not fail to be equally useful, since by the knowledge they

would thus acquire they would be eminently better qualified in the event of

war for the great purposes for which they were instituted.

Our relations with the Indian tribes within our limits have not been

materially changed during the year. The hostile disposition evinced by

certain tribes on the Missouri during the last year still continues, and

has extended in some degree to those on the Upper Mississippi and the Upper

Lakes. Several parties of our citizens have been plundered and murdered by

those tribes. In order to establish relations of friendship with them,

Congress at the last session made an appropriation for treaties with them

and for the employment of a suitable military escort to accompany and

attend the commissioners at the places appointed for the negotiations. This

object has not been effected. The season was too far advanced when the

appropriation was made and the distance too great to permit it, but

measures have been taken, and all the preparations will be completed to

accomplish it at an early period in the next season.

Believing that the hostility of the tribes, particularly on the Upper

Mississippi and the Lakes, is in no small degree owing to the wars which

are carried on between the tribes residing in that quarter, measures have

been taken to bring about a general peace among them, which, if successful,

will not only tend to the security of our citizens, but be of great

advantage to the Indians themselves.

With the exception of the tribes referred to, our relations with all the

others are on the same friendly footing, and it affords me great

satisfaction to add that they are making steady advances in civilization

and the improvement of their condition. Many of the tribes have already

made great progress in the arts of civilized life. This desirable result

has been brought about by the humane and persevering policy of the

Government, and particularly by means of the appropriation for the

civilization of the Indians. There have been established under the

provisions of this act 32 schools, containing 916 scholars, who are well

instructed in several branches of literature, and likewise in agriculture

and the ordinary arts of life.

Under the appropriation to authorize treaties with the Creeks and Quaupaw

Indians commissioners have been appointed and negotiations are now pending,

but the result is not yet known.

For more full information respecting the principle which has been adopted

for carrying into effect the act of Congress authorizing surveys, with

plans and estimates for canals and roads, and on every other branch of duty

incident to the Department of War, I refer you to the report of the

Secretary.

The squadron in the Mediterranean has been maintained in the extent which

was proposed in the report of the Secretary of the Navy of the last year,

and has afforded to our commerce the necessary protection in that sea.

Apprehending, however, that the unfriendly relations which have existed

between Algiers and some of the powers of Europe might be extended to us,

it has been thought expedient to augment the force there, and in

consequence the North Carolina, a ship of the line, has been prepared, and

will sail in a few days to join it.

The force employed in the Gulf of Mexico and in the neighboring seas for

the suppression of piracy has likewise been preserved essentially in the

state in which it was during the last year. A persevering effort has been

made for the accomplishment of that object, and much protection has thereby

been afforded to our commerce, but still the practice is far from being

suppressed. From every view which has been taken of the subject it is

thought that it will be necessary rather to augment than to diminish our

force in that quarter.

There is reason to believe that the piracies now complained of are

committed by bands of robbers who inhabit the land, and who, by preserving

good intelligence with the towns and seizing favorable opportunities, rush

forth and fall on unprotected merchant vessels, of which they make an easy

prey. The pillage thus taken they carry to their lurking places, and

dispose of afterwards at prices tending to seduce the neighboring

population.

This combination is understood to be of great extent, and is the more to be

deprecated because the crime of piracy is often attended with the murder of

the crews, these robbers knowing if any survived their lurking places would

be exposed and they be caught and punished. That this atrocious practice

should be carried to such extent is cause of equal surprise and regret. It

is presumed that it must be attributed to the relaxed and feeble state of

the local governments, since it is not doubted, from the high character of

the governor of Cuba, who is well known and much respected here, that if he

had the power he would promptly suppress it. Whether those robbers should

be pursued on the land, the local authorities be made responsible for these

atrocities, or any other measure be resorted to to suppress them, is

submitted to the consideration of Congress.

In execution of the laws for the suppression of the slave trade a vessel

has been occasionally sent from that squadron to the coast of Africa with

orders to return thence by the usual track of the slave ships, and to seize

any of our vessels which might be engaged in that trade. None have been

found, and it is believed that none are thus employed. It is well known,

however, that the trade still exists under other flags.

The health of our squadron while at Thompsons Island has been much better

during the present than it was the last season. Some improvements have been

made and others are contemplated there which, it is believed, will have a

very salutary effect.

On the Pacific, our commerce has much increased, and on that coast, as well

as on that sea, the United States have many important interests which

require attention and protection. It is thought that all the considerations

which suggested the expediency of placing a squadron on that sea operate

with augmented force for maintaining it there, at least in equal extent.

For detailed information respecting the state of our maritime force on each

sea, the improvement necessary to be made on either in the organization of

the naval establishment generally, and of the laws for its better

government I refer you to the report of the Secretary of the Navy, which is

herewith communicated.

The revenue of the Post Office Department has received a considerable

augmentation in the present year. The current receipts will exceed the

expenditures, although the transportation of the mail within the year has

been much increased. A report of the Post Master General, which is

transmitted, will furnish in detail the necessary information respecting

the administration and present state of this Department.

In conformity with a resolution of Congress of the last session, an

invitation was given to General Lafayette to visit the United States, with

an assurance that a ship of war should attend at any port of France which

he might designate, to receive and convey him across the Atlantic, whenever

it might be convenient for him to sail. He declined the offer of the public

ship from motives of delicacy, but assured me that he had long intended and

would certainly visit our Union in the course of the present year.

In August last he arrived at New York, where he was received with the

warmth of affection and gratitude to which his very important and

disinterested services and sacrifices in our Revolutionary struggle so

eminently entitled him. A corresponding sentiment has since been manifested

in his favor throughout every portion of our Union, and affectionate

invitations have been given him to extend his visits to them. To these he

has yielded all the accommodation in his power. At every designated point

of rendezvous the whole population of the neighboring country has been

assembled to greet him, among whom it has excited in a peculiar manner the

sensibility of all to behold the surviving members of our Revolutionary

contest, civil and military, who had shared with him in the toils and

dangers of the war, many of them in a decrepit state. A more interesting

spectacle, it is believed, was never witnessed, because none could be

founded on purer principles, none proceed from higher or more disinterested

motives. That the feelings of those who had fought and bled with him in a

common cause should have been much excited was natural.

There are, however, circumstances attending these interviews which pervaded

the whole community and touched the breasts of every age, even the youngest

among us. There was not an individual present who had not some relative who

had not partaken in those scenes, nor an infant who had not heard the

relation of them. But the circumstance which was most sensibly felt, and

which his presence brought forcibly to the recollection of all, was the

great cause in which we were engaged and the blessings which we have

derived from our success in it.

The struggle was for independence and liberty, public and personal, and in

this we succeeded. The meeting with one who had borne so distinguished a

part in that great struggle, and from such lofty and disinterested motives,

could not fail to affect profoundly every individual and of every age. It

is natural that we should all take a deep interest in his future welfare,

as we do. His high claims on our Union are felt, and the sentiment

universal that they should be met in a generous spirit. Under these

impressions I invite your attention to the subject, with a view that,

regarding his very important services, losses, and sacrifices, a provision

may be made and tendered to him which shall correspond with the sentiments

and be worthy the character of the American people.

In turning our attention to the condition of the civilized world, in which

the United States have always taken a deep interest, it is gratifying to

see how large a portion of it is blessed with peace. The only wars which

now exist within that limit are those between Turkey and Greece, in Europe,

and between Spain and the new Governments, our neighbors, in this

hemisphere. In both these wars the cause of independence, of liberty and

humanity, continues to prevail.

The success of Greece, when the relative population of the contending

parties is considered, commands our admiration and applause, and that it

has had a similar effect with the neighboring powers is obvious. The

feeling of the whole civilized world is excited in a high degree in their

favor. May we not hope that these sentiments, winning on the hearts of

their respective Governments, may lead to a more decisive result; that they

may produce an accord among them to replace Greece on the ground which she

formerly held, and to which her heroic exertions at this day so eminently

entitle her?

With respect to the contest to which our neighbors are a party, it is

evident that Spain as a power is scarcely felt in it. These new States had

completely achieved their independence before it was acknowledged by the

United States, and they have since maintained it with little foreign

pressure. The disturbances which have appeared in certain portions of that

vast territory have proceeded from internal causes, which had their origin

in their former Governments and have not yet been thoroughly removed.

It is manifest that these causes are daily losing their effect, and that

these new States are settling down under Governments elective and

representative in every branch, similar to our own. In this course we

ardently wish them to persevere, under a firm conviction that it will

promote their happiness. In this, their career, however, we have not

interfered, believing that every people have a right to institute for

themselves the government which, in their judgment, may suit them best.

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