Speech Transcript:

Fellow Citizens of the Senate and of the House of Representatives:
At no period of our political existence had we so much cause to
felicitate ourselves at the prosperous and happy condition of our
country. The abundant fruits of the earth have filled it with plenty.
An extensive and profitable commerce has greatly augmented our
revenue. The public credit has attained an extraordinary elevation.
Our preparations for defense in case of future wars, from which, by
the experience of all nations, we ought not to expect to be exempted,
are advancing under a well-digested system with all the dispatch which
so important a work will admit. Our free Government, founded on the
interest and affections of the people, has gained and is daily
gaining strength. Local jealousies are rapidly yielding to more
generous, enlarged, and enlightened views of national policy. For
advantages so numerous and highly important it is our duty to unite
in grateful acknowledgements to that Omnipotent Being from whom they
are derived, and in unceasing prayer that He will endow us with
virtue and strength to maintain and hand them down in their utmost
purity to our latest posterity.

I have the satisfaction to inform you that an arrangement which had
been commenced by my predecessor with the British Government for the
reduction of the naval force by Great Britain and the United States
on the Lakes has been concluded, by which it is provided that neither
party shall keep in service on Lake Champlain more than one vessel, on
Lake Ontario more than one, and on Lake Erie and the upper lakes more
than two, to be armed each with one cannon only, and that all the
other armed vessels of both parties, of which an exact list is
interchanged, shall be dismantled. It is also agreed that the force
retained shall be restricted in its duty to the internal purposes of
each party, and that the arrangement shall remain in force until six
months shall have expired after notice given by one of the parties to
the other of its desire that it should terminate. By this arrangement
useless expense on both sides and, what is of still greater
importance, the danger of collision between armed vessels in those
inland waters, which was great, is prevented.

I have the satisfaction also to state that the commissioners under
the fourth article of the treaty of Ghent, to whom it was referred to
decide to which party the several islands in the bay of Passamaquoddy
belonged under the treaty of 1783, have agreed in a report, by which
all the islands in the possession of each party before the late war
have been decreed to it. The commissioners acting under the other
articles of the treaty of Ghent for the settlement of boundaries have
also been engaged in the discharge of their respective duties, but
have not yet completed them.

The difference which arose between the two Governments under that
treaty respecting the right of the US to take and cure fish on the
coast of the British provinces north of our limits, which had been
secured by the treaty of 1783, is still in negotiation. The
proposition made by this Government to extend to the colonies of GB
the principle of the convention of London, by which the commerce
between the ports of the United States and British ports in Europe
had been placed on a footing of equality, has been declined by the
British Government. This subject having been thus amicably discussed
between the two Governments, and it appearing that the British
Government is unwilling to depart from its present regulations, it
remains for Congress to decide whether they will make any other
regulations in consequence thereof for the protection and improvement
of our navigation.

The negotiation with Spain for spoliations on our commerce and the
settlement of boundaries remains essentially in the state it held by
the communications that were made to Congress by my predecessor. It
has been evidently the policy of the Spanish Gov't to keep the
negotiation suspended, and in this the United States have acquiesced,
from an amicable disposition toward Spain and in the expectation that
her Government would, from a sense of justice, finally accede to such
an arrangement as would be equal between the parties. A disposition
has been lately shown by the Spanish Government to move in the
negotiation, which has been met by this Government, and should the
conciliatory and friendly policy which has invariably guided our
councils be reciprocated, a just and satisfactory arrangement may be
expected. It is proper, however, to remark that no proposition has
yet been made from which such a result can be presumed.

It was anticipated at an early stage that the contest between Spain
and the colonies would become highly interesting to the United
States. It was natural that our citizens should sympathize in events
which affected their neighbors. It seemed probable also that the
prosecution of the conflict along our coast and in contiguous
countries would occasionally interrupt our commerce and otherwise
affect the persons and property of our citizens. These anticipations
have been realized. Such injuries have been received from persons
acting under authority of both the parties, and for which redress has
in most instances been withheld.

Through every stage of the conflict the United States have maintained
an impartial neutrality, giving aid to neither of the parties in men,
money, ships, or munitions of war. They have regarded the contest not
in the light of an ordinary insurrection or rebellion, but as a civil
war between parties nearly equal, having as to neutral powers equal
rights. Our ports have been open to both, and every article the fruit
of our soil or of the industry of our citizens which either was
permitted to take has been equally free to the other. Should the
colonies establish their independence, it is proper now to state that
this Government neither seeks nor would accept from them any advantage
in commerce or otherwise which will not be equally open to all other
nations. The colonies will in that event become independent states,
free from any obligation to or connection with us which it may not
then be their interest to form on the basis of a fair reciprocity.

In the summer of the present year an expedition was set on foot
against East Florida by persons claiming to act under the authority
of some of the colonies, who took possession of Amelia Island, at the
mouth of the St. Marys River, near the boundary of the State of
Georgia. As this Province lies eastward of the Mississippi, and is
bounded by the United States and the ocean on every side, and has
been a subject of negotiation with the Government of Spain as an
indemnity for losses by spoliation or in exchange for territory of
equal value westward of the Mississippi, a fact well known to the
world, it excited surprise that any countenance should be given to
this measure by any of the colonies.

As it would be difficult to reconcile it with the friendly relations
existing between the United States and the colonies, a doubt was
entertained whether it had been authorized by them, or any of them.
This doubt has gained strength by the circumstances which have
unfolded themselves in the prosecution of the enterprise, which have
marked it as a mere private, unauthorized adventure. Projected and
commenced with an incompetent force, reliance seems to have been
placed on what might be drawn, in defiance of our laws, from within
our limits; and of late, as their resources have failed, it has
assumed a more marked character of unfriendliness to us, the island
being made a channel for the illicit introduction of slaves from
Africa into the United States, an asylum for fugitive slaves from the
neighboring States, and a port for smuggling of every kind.

A similar establishment was made at an earlier period by persons of
the same description in the Gulf of Mexico at a place called
Galvezton, within the limits of the United States, as we contend,
under the cession of Louisiana. This enterprise has been marked in a
more signal manner by all the objectionable circumstances which
characterized the other, and more particularly by the equipment of
privateers which have annoyed our commerce, and by smuggling. These
establishments, if ever sanctioned by any authority whatever, which
is not believed, have abused their trust and forfeited all claim to
consideration. A just regard for the rights and interests of the
United States required that they should be suppressed, and orders
have been accordingly issued to that effect. The imperious
considerations which produced this measure will be explained to the
parties whom it may in any degree concern.

To obtain correct information on every subject in which the United
States are interested; to inspire just sentiments in all persons in
authority, on either side, of our friendly disposition so far as it
may comport with an impartial neutrality, and to secure proper
respect to our commerce in every port and from every flag, it has
been thought proper to send a ship of war with three distinguished
citizens along the southern coast with these purpose. With the
existing authorities, with those in the possession of and exercising
the sovereignty, must the communication be held; from them alone can
redress for past injuries committed by persons acting under them be
obtained; by them alone can the commission of the like in future be
prevented.

Our relations with the other powers of Europe have experienced no
essential change since the last session. In our intercourse with each
due attention continues to be paid to the protection of our commerce,
and to every other object in which the United States are interested.
A strong hope is entertained that, by adhering to the maxims of a
just, a candid, and friendly policy, we may long preserve amicable
relations with all the powers of Europe on conditions advantageous
and honorable to our country.

With the Barbary States and the Indian tribes our pacific relations
have been preserved.

In calling your attention to the internal concerns of our country the
view which they exhibit is peculiarly gratifying. The payments which
have been made into the Treasury show the very productive state of
the public revenue. After satisfying the appropriations made by law
for the support of the civil Government and of the military and naval
establishments, embracing suitable provision for fortifications and
for the gradual increase of the Navy, paying the interest of the
public debt, and extinguishing more than $18M of the principal,
within the present year, it is estimated that a balance of more than
$6M will remain in the Treasury on the first day of January
applicable to the current service of the ensuing year.

The payments into the Treasury during the year 1818 on account of
imposts and tonnage, resulting principally from duties which have
accrued in the present year, may be fairly estimated at $20M; the
internal revenues at $2.5M; the public lands at $1.5M; bank dividends
and incidental receipts at $500,000; making in the whole $24.5M.

The annual permanent expenditure for the support of the civil
Government and of the Army and Navy, as now established by law,
amounts to $11.8M, and for the sinking fund to $10M, making in the
whole $21.8M, leaving an annual excess of revenue beyond the
expenditure of $2.7M, exclusive of the balance estimated to be in the
Treasury on the first day of January, 1818.

In the present state of the Treasury the whole of the Louisiana debt
may be redeemed in the year 1819, after which, if the public debt
continues as it now is, above par, there will be annually about $5M
of the sinking fund unexpended until the year 1825, when the loan of
1812 and the stock created by funding Treasury notes will be
redeemable.

It is also estimated that the Mississippi stock will be discharged
during the year 1819 from the proceeds of the public lands assigned
to that object, after which the receipts from those lands will
annually add to the public revenue the sum of $1.5M, making the
permanent annual revenue amount to $26M, and leaving an annual excess
of revenue after the year 1819 beyond the permanent authorized
expenditure of more than $4M.

By the last returns to the Department of War the militia force of the
several States may be estimated at 800,000 men - infantry, artillery,
and cavalry. Great part of this force is armed, and measures are
taken to arm the whole. An improvement in the organization and
discipline of the militia is one of the great objects which claims
the unremitted attention of Congress.

The regular force amounts nearly to the number required by law, and
is stationed along the Atlantic and inland frontiers.

Of the naval force it has been necessary to maintain strong squadrons
in the Mediterranean and in the Gulf of Mexico.

From several of the Indian tribes inhabiting the country bordering on
Lake Erie purchases have been made of lands on conditions very
favorable to the United States, and, as it is presumed, not less so
to the tribes themselves.

By these purchases the Indian title, with moderate reservations, has
been extinguished to the whole of the land within the limits of the
State of Ohio, and to a part of that in the Michigan Territory and of
the State of Indiana. From the Cherokee tribe a tract has been
purchased in the State of Georgia and an arrangement made by which,
in exchange for lands beyond the Mississippi, a great part, if not
the whole, of the land belonging to that tribe eastward of that river
in the States of North Carolina, Georgia, and Tennessee, and in the
Alabama Territory will soon be acquired. By these acquisitions, and
others that may reasonably be expected soon to follow, we shall be
enabled to extend our settlements from the inhabited parts of the
State of Ohio along Lake Erie into the Michigan Territory, and to
connect our settlements by degrees through the State of Indiana and
the Illinois Territory to that of Missouri. A similar and equally
advantageous effect will soon be produced to the south, through the
whole extent of the States and territory which border on the waters
emptying into the Mississippi and the Mobile.

In this progress, which the rights of nature demand and nothing can
prevent, marking a growth rapid and gigantic, it is our duty to make
new efforts for the preservation, improvement, and civilization of
the native inhabitants. The hunter state can exist only in the vast
uncultivated desert. It yields to the more dense and compact form and
greater force of civilized population; and of right it ought to yield,
for the earth was given to mankind to support the greatest number of
which it is capable, and no tribe or people have a right to withhold
from the wants of others more than is necessary for their own support
and comfort.

It is gratifying to know that the reservations of land made by the
treaties with the tribes on Lake Erie were made with a view to
individual ownership among them and to the cultivation of the soil by
all, and that an annual stipend has been pledged to supply their other
wants. It will merit the consideration of Congress whether other
provision not stipulated by treaty ought to be made for these tribes
and for the advancement of the liberal and humane policy of the
United States toward all the tribes within our limits, and more
particularly for their improvement in the arts of civilized life.

Among the advantages incident to these purchases, and to those which
have preceded, the security which may thereby be afforded to our
inland frontiers is peculiarly important. With a strong barrier,
consisting of our own people, thus planted on the Lakes, the
Mississippi, and the Mobile, with the protection to be derived from
the regular force, Indian hostilities, if they do not altogether
cease, will henceforth lose their terror. Fortifications in those
quarters to any extent will not be necessary, and the expense of
attending them may be saved. A people accustomed to the use of
firearms only, as the Indian tribes are, will shun even moderate
works which are defended by cannon. Great fortifications will
therefore be requisite only in future along the coast and at some
points in the interior connected with it. On these will the safety of
our towns and the commerce of our great rivers, from the Bay of Fundy
to the Mississippi, depend. On these, therefore, should the utmost
attention, skill, and labor be bestowed.

A considerable and rapid augmentation in the value of all the public
lands, proceeding from these and other obvious cases, may
henceforward be expected. The difficulties attending early
emigrations will be dissipated even in the most remote parts. Several
new States have been admitted into our Union to the west and south,
and Territorial governments, happily organized, established over
every other portion in which there is vacant land for sale. In
terminating Indian hostilities, as must soon be done, in a formidable
shape at least, the emigration, which has heretofore been great, will
probably increase, and the demand for land and the augmentation in
its value be in like proportion.

The great increase of our population throughout the Union will alone
produce an important effect, and in no quarter will it be so sensibly
felt as in those in contemplation. The public lands are a public
stock, which ought to be disposed of to the best advantage for the
nation. The nation should therefore derive the profit proceeding from
the continual rise in their value. Every encouragement should be given
to the emigrants consistent with a fair competition between them, but
that competition should operate in the first sale to the advantage of
the nation rather than of individuals.

Great capitalists will derive the benefit incident to their superior
wealth under any mode of sale which may be adopted, but if, looking
forward to the rise in the value of the public lands, they should
have the opportunity of amassing at a low price vast bodies in their
hands, the profit will accrue to them and not to the public. They
would also have the power in that degree to control the emigration
and settlement in such a manner as their opinion of their respective
interests might dictate. I submit this subject to the consideration
of Congress, that such further provision may be made in the sale of
the public lands, with a view to the public interest, should any be
deemed expedient, as in their judgment may be best adapted to the
object.

When we consider the vast extent of territory within the United
States, the great amount and value of its productions, the connection
of its parts, and other circumstances on which their prosperity and
happiness depend, we can not fail to entertain a high sense of the
advantage to be derived from the facility which may be afforded in
the intercourse between them by means of good roads and canals. Never
did a country of such vast extent offer equal inducements to
improvements of this kind, nor ever were consequences of such
magnitude involved in them. As this subject was acted on by Congress
at the last session, and there may be a disposition to revive it at
the present, I have brought it into view for the purpose of
communicating my sentiments on a very important circumstance
connected with it with that freedom and candor which a regard for the
public interest and a proper respect for Congress require.

A difference of opinion has existed from the first formation of our
Constitution to the present time among our most enlightened and
virtuous citizens respecting the right of Congress to establish such
a system of improvement. Taking into view the trust with which I am
now honored, it would be improper after what has passed that this
discussion should be revived with an uncertainty of my opinion
respecting the right. Disregarding early impressions I have bestowed
on the subject all the deliberation which its great importance and a
just sense of my duty required, and the result is a settled
conviction in my mind that Congress do not possess the right. It is
not contained in any of the specified powers granted to Congress, nor
can I consider it incidental to or a necessary means, viewed on the
most liberal scale, for carrying into effect any of the powers which
are specifically granted.

In communicating this result I can not resist the obligation which I
feel to suggest to Congress the propriety of recommending to the
States the adoption of an amendment to the Constitution which shall
give to Congress the right in question. In cases of doubtful
construction, especially of such vital interest, it comports with the
nature and origin of our institutions, and will contribute much to
preserve them, to apply to our constituents for an explicit grant of
the power. We may confidently rely that if it appears to their
satisfaction that the power is necessary, it will always be granted.

In this case I am happy to observe that experience has afforded the
most ample proof of its utility, and that the benign spirit of
conciliation and harmony which now manifests itself throughout our
Union promises to such a recommendation the most prompt and favorable
result. I think proper to suggest also, in case this measure is
adopted, that it be recommended to the States to include in the
amendment sought a right in Congress to institute likewise seminaries
of learning, for the all-important purpose of diffusing knowledge
among our fellow-citizens throughout the United States.

Our manufactories will require the continued attention of Congress.
The capital employed in them is considerable, and the knowledge
acquired in the machinery and fabric of all the most useful
manufactures is of great value. Their preservation, which depends on
due encouragement, is connected with the high interests of the
nation.

Although the progress of the public buildings has been as favorable
as circumstances have permitted, it is to be regretted that the
Capitol is not yet in a state to receive you. There is good cause to
presume that the two wings, the only parts as yet commenced, will be
prepared for that purpose at the next session. The time seems now to
have arrived when this subject may be deemed worthy the attention of
Congress on a scale adequate to national purposes. The completion of
the middle building will be necessary to the convenient accommodation
of Congress, of the committees, and various offices belonging to it.

It is evident that the other public buildings are altogether
insufficient for the accommodation of the several Executive
Departments, some of whom are much crowded and even subjected to the
necessity of obtaining it in private buildings at some distance from
the head of the Dep't, and with inconvenience to the management of
the public business.

Most nations have taken an interest and a pride in the improvement
and ornament of their metropolis, and none were more conspicuous in
that respect than the ancient republics. The policy which dictated
the establishment of a permanent residence for the National
Government and the spirit in which it was commenced and has been
prosecuted show that such improvement was thought worthy the
attention of this nation. Its central position, between the northern
and southern extremes of our Union, and its approach to the west at
the head of a great navigable river which interlocks with the Western
waters, prove the wisdom of the councils which established it.

Nothing appears to be more reasonable and proper than that convenient
accommodation should be provided on a well-digested plan for the heads
of the several Departments and for the Attorney-General, and it is
believed that the public ground in the city applied to these objects
will be found amply sufficient. I submit this subject to the
consideration of Congress, that such further provision may be made in
it as to them may seem proper.

It is contemplating the happy situation of the United States, our
attention is drawn with peculiar interest to the surviving officers
and soldiers of our Revolutionary army, who so eminently contributed
by their services to lay its foundation. Most of those very
meritorious citizens have paid the debt of nature and gone to repose.
It is believed that among the survivors there are some not provided
for by existing laws, who are reduced to indigence and even to real
distress. These man have a claim on the gratitude of their country,
and it will do honor to their country to provide for them. The lapse
of a few years more and the opportunity will be forever lost; indeed,
so long already has been the interval that the number to be benefitted
by any provision which may be made will not be great.

It appearing in a satisfactory manner that the revenue arising from
imposts and tonnage and from the sale of the public lands will be
fully adequate to the support of the civil Government, of the present
military and naval establishments, including the annual augmentation
of the latter to the extent provided for, to the payment of the
interest of the public debt, and to the extinguishment of it at the
times authorized, without the aid of the internal taxes, I consider
it my duty to recommend to Congress their repeal.

To impose taxes when the public exigencies require them is an
obligation of the most sacred character, especially with a free
people. The faithful fulfillment of it is among the highest proofs of
their value and capacity for self-government. To dispense with taxes
when it may be done with perfect safety is equally the duty of their
representatives.

In this instance we have the satisfaction to know that they were
imposed when the demand was imperious, and have been sustained with
exemplary fidelity. I have to add that however gratifying it may be
to me regarding the prosperous and happy condition of our country to
recommend the repeal of these taxes at this time, I shall
nevertheless be attentive to events, and, should any future emergency
occur, be not less prompt to suggest such measures and burdens as may
then be requisite and proper.