Speech Transcript:

Fellow Citizens of the Senate and of the House of Representatives:
The public buildings being advanced to a stage to afford
accommodation for Congress, I offer you my sincere congratulations on
the recommencement of your duties in the Capitol.

In bringing you to view the incidents most deserving attention which
have occurred since your last session, I regret to have to state that
several of our principal cities have suffered by sickness, that an
unusual drought has prevailed in the Middle and Western States, and
that a derangement has been felt in some of our moneyed institutions
which has proportionably affected their credit. I am happy, however,
to have it in my power to assure you that the health of our cities is
now completely restored; that the produce of the year, though less
abundant than usual, will not only be amply sufficient for home
consumption, but afford a large surplus for the supply of the wants
of other nations, and that the derangement in the circulating paper
medium, by being left to those remedies which its obvious causes
suggested and the good sense and virtue of our fellow citizens
supplied, has diminished.

Having informed Congress, on the 27th of February last, that a treaty
of amity, settlement, and limits had been concluded in this city
between the United States and Spain, and ratified by the competent
authorities of the former, full confidence was entertained that it
would have been ratified by His Catholic Majesty with equal
promptitude and a like earnest desire to terminate on the conditions
of that treaty the differences which had so long existed between the
two countries. Every view which the subject admitted of was thought
to have justified this conclusion.

Great losses had been sustained by citizens of the United States from
Spanish cruisers more than 20 years before, which had not been
redressed. These losses had been acknowledged and provided for by a
treaty as far back as the year 1802, which, although concluded at
Madrid, was not then ratified by the Government of Spain, nor since,
until the last year, when it was suspended by the late treaty, a more
satisfactory provision to both parties, as was presumed, having been
made for them. Other differences had arisen in this long interval,
affecting their highest interests, which were likewise provided for
by this last treaty.

The treaty itself was formed on great consideration and a thorough
knowledge of all circumstances, the subject matter of every article
having been for years under discussion and repeated references having
been made by the minister of Spain to his Government on the points
respecting which the greatest difference of opinion prevailed. It was
formed by a minister duly authorized for the purpose, who had
represented his Government in the United States and been employed in
this long- protracted negotiation several years, and who, it is not
denied, kept strictly within the letter of his instructions. The
faith of Spain was therefore pledged, under circumstances of peculiar
force and solemnity, for its ratification.

On the part of the United States this treaty was evidently acceded to
in a spirit of conciliation and concession. The indemnity for injuries
and losses so long before sustained, and now again acknowledged and
provided for, was to be paid by them without becoming a charge on the
treasury of Spain. for territory ceded by Spain other territory of
great value, to which our claim was believed to be well founded, was
ceded by the United States, and in a quarter more interesting to her.
This cession was nevertheless received as the means of indemnifying
our citizens in a considerable sum, the presumed amount of their
losses.

Other considerations of great weight urged the cession of this
territory by Spain. It was surrounded by the Territories of the
United States on every side except on that of the ocean. Spain had
lost her authority over it, and, falling into the hands of
adventurers connected with the savages, it was made the means of
unceasing annoyance and injury to our Union in many of its most
essential interests. By this cession, then, Spain ceded a territory
in reality of no value to her and obtained concessions of the highest
importance by the settlement of long- standing differences with the
United States affecting their respective claims and limits, and
likewise relieved herself from the obligation of a treaty relating to
it which she had failed to fulfill, and also from the responsibility
incident to the most flagrant and pernicious abuses of her rights
where she could not support her authority.

It being known that the treaty was formed under these circumstances,
not a doubt was entertained that His Catholic Majesty would have
ratified it without delay. I regret to have to state that this
reasonable expectation has been disappointed; that the treaty was not
ratified within the time stipulated and has not since been ratified.
As it is important that the nature and character of this unexpected
occurrence should be distinctly understood, I think it my duty to
communicate to you all the facts and circumstances in my possession
relating to it.

Anxious to prevent all future disagreement with Spain by giving the
most prompt effect to the treaty which had been thus concluded, and
particularly by the establishment of a Government in Florida which
should preserve order there, the minister of the United States who
had been recently appointed to His Catholic Majesty, and to whom the
ratification by his Government had been committed to be exchanged for
that of Spain, was instructed to transmit the latter to the Department
of State as soon as obtained, by a public ship subjected to his order
for the purpose.

Unexpected delay occurring in the ratification by Spain, he requested
to be informed of the cause. It was stated in reply that the great
importance of the subject, and a desire to obtain explanations on
certain points which were not specified, had produced the delay, and
that an envoy would be dispatched to the United States to obtain such
explanations of this Government. The minister of the United States
offered to give full explanation on any point on which it might be
desired, which proposal was declined. Having communicated this result
to the Department of State in August last, he was instructed,
notwithstanding the disappointment and surprise which it produced, to
inform the Government of Spain that if the treaty should be ratified
and transmitted here at any time before the meeting of Congress it
would be received and have the same effect as if it had been ratified
in due time.

This order was executed, the authorized communication was made to the
Government of Spain, and by its answer, which has just been received,
we are officially made acquainted for the first time with the causes
which have prevented the ratification of the treaty by His Catholic
Majesty. It is alleged by the minister of Spain that his Government
had attempted to alter one of the principal articles of the treaty by
a declaration which the minister of the United States had been ordered
to present when he should deliver the ratification by his Government
in exchange for that of Spain, and of which he gave notice,
explanatory of the sense in which that article was understood. It is
further alleged that this Government had recently tolerated or
protected an expedition from the United States against the Province
of Texas. These two imputed acts are stated as the reasons which have
induced His Catholic Majesty to withhold his ratification from the
treaty, to obtain explanations respecting which it is repeated that
an envoy would be forthwith dispatched to the United States. How far
these allegations will justify the conduct of the Government of Spain
will appear on a view of the following facts and the evidence which
supports them:

It will be seen by the documents transmitted herewith that the
declaration mentioned relates to a clause in the 8th article
concerning certain grants of land recently made by His Catholic
Majesty in Florida, which it was understood had conveyed all the
lands which until then had been ungranted; it was the intention of
the parties to annul these latter grants, and that clause was drawn
for that express purpose and for none other. The date of these grants
was unknown, but it was understood to be posterior to that inserted in
the article; indeed, it must be obvious to all that if that provision
in the treaty had not the effect of annulling these grants, it would
be altogether nugatory. Immediately after the treaty was concluded
and ratified by this Government an intimation was received that these
grants were of anterior date to that fixed on by the treaty and that
they would not, of course, be affected by it. The mere possibility of
such a case, so inconsistent with the intention of the parties and the
meaning of the article, induced this Government to demand an
explanation on the subject, which was immediately granted, and which
corresponds with this statement.

WRT the other act alleged, that this Government had tolerated or
protected an expedition against Texas, it is utterly without
foundation. Every discountenance has invariably been given to any
such attempt within the limits of the United States, as is fully
evinced by the acts of the Government and the proceedings of the
courts. There being cause, however, to apprehend, in the course of
the last summer, that some adventurers entertained views of the kind
suggested, the attention of the constituted authorities in that
quarter was immediately drawn to them, and it is known that the
project, whatever it might be, has utterly failed.

These facts will, it is presumed, satisfy every impartial mind that
the Government of Spain had no justifiable cause for declining to
ratify the treaty. A treaty concluded in conformity with instructions
is obligatory, in good faith, in all its stipulations, according to
the true intent and meaning of the parties. Each party is bound to
ratify it. If either could set it aside without the consent of the
other, there would be no longer any rules applicable to such
transactions between nations.

By this proceeding the Government of Spain has rendered to the United
States a new and very serious injury. It has been stated that a
minister would be sent to ask certain explanations of this
Government; but if such were desired, why were they not asked within
the time limited for the ratification?

Is it contemplated to open a new negotiation respecting any of the
articles or conditions of the treaty? If that were done, to what
consequences might it not lead? At what time and in what manner would
a new negotiation terminate? By this proceeding Spain has formed a
relation between the two countries which will justify any measures on
the part of the United States which a strong sense of injury and a
proper regard for the rights and interests of the nation may
dictate.

In the course to be pursued these objects should be constantly held
in view and have their due weight. Our national honor must be
maintained, and a new and a distinguished proof be afforded of that
regard for justice and moderation which has invariably governed the
councils of this free people. It must be obvious to all that if the
United States had been desirous of making conquests, or had been even
willing to aggrandize themselves in that way, they could have had no
inducement to form this treaty. They would have much cause for
gratulation at the course which has been pursued by Spain. An ample
field for ambition is open before them, but such a career is not
consistent with the principles of their Government nor the interests
of the nation.

From a full view of all circumstances, it is submitted to the
consideration of Congress whether it will not be proper for the
United States to carry the conditions of the treaty into effect in
the same manner as if it had been ratified by Spain, claiming on
their part all its advantages and yielding to Spain those secured to
her. By pursuing this course we shall rest on the sacred ground of
right, sanctioned in the most solemn manner by Spain herself by a
treaty which she was bound to ratify, for refusing to do which she
must incur the censure of other nations, even those most friendly to
her, while by confining ourselves within that limit we can not fail
to obtain their well-merited approbation.

We must have peace on a frontier where we have been so long
disturbed; our citizens must be indemnified for losses so long since
sustained, and for which indemnity has been so unjustly withheld from
them. Accomplishing these great objects, we obtain all that is
desirable.

But His Catholic Majesty has twice declared his determination to send
a minister to the United States to ask explanations on certain points
and to give them respecting his delay to ratify the treaty. Shall we
act by taking the ceded territory and proceeding to execute the other
conditions of the treaty before this minister arrives and is heard?

This is a case which forms a strong appeal to the candor, the
magnanimity, and the honor of this people. Much is due to courtesy
between nations. By a short delay we shall lose nothing, for, resting
on the ground of immutable truth and justice, we can not be diverted
from our purpose.

It ought to be presumed that the explanations which may be given to
the minister of Spain will be satisfactory, and produce the desired
result. In any event, the delay for the purpose mentioned, being a
further manifestation of the sincere desire to terminate in the most
friendly manner all differences with Spain, can not fail to be duly
appreciated by His Catholic Majesty as well as by other powers. It is
submitted, therefore, whether it will not be proper to make the law
proposed for carrying the conditions of the treaty into effect,
should it be adopted, contingent; to suspend its operation, upon the
responsibility of the Executive, in such manner as to afford an
opportunity for such friendly explanations as may be desired during
the present session of Congress.

I communicate to Congress a copy of the treaty and of the
instructions to the minister of the United States at Madrid
respecting it; of his correspondence with the minister of Spain, and
of such other documents as may be necessary to give a full view of
the subject.

In the course which the Spanish Government have on this occasion
thought proper to pursue it is satisfactory to know that they have
not been countenanced by any other European power. On the contrary,
the opinion and wishes both of France and Great Britain have not been
withheld either from the United States or from Spain, and have been
unequivocal in favor of the ratification. There is also reason to
believe that the sentiments of the Imperial Government of Russia have
been the same, and that they have also been made known to the cabinet
of Madrid.

In the civil war existing between Spain and the Spanish Provinces in
this hemisphere the greatest care has been taken to enforce the laws
intended to preserve an impartial neutrality. Our ports have
continued to be equally open to both parties and on the same
conditions, and our citizens have been equally restrained from
interfering in favor of either to the prejudice of the other. The
progress of the war, however has operated manifestly in favor of the
colonies. Buenos Ayres still maintains unshaken the independence
which it declared in 1816, and has enjoyed since 1810. Like success
has also lately attended Chili and the Provinces north of the La
Plata bordering on it, and likewise Venezuela.

This contest has from its commencement been very interesting to other
powers, and to none more so than to the United States. A virtuous
people may and will confine themselves within the limit of a strict
neutrality; but it is not in their power to behold a conflict so
vitally important to their neighbors without the sensibility and
sympathy which naturally belong to such a case. It has been the
steady purpose of this Government to prevent that feeling leading to
excess, and it is very gratifying to have it in my power to state
that so strong has been the sense throughout the whole community of
what was due to the character and obligations of the nation that very
few examples of a contrary kind have occurred.

The distance of the colonies from the parent country and the great
extent of their population and resources gave them advantages which
it was anticipated at a very early period would be difficult for
Spain to surmount. The steadiness, consistency, and success with
which they have pursued their object, as evinced more particularly by
the undisturbed sovereignty which Buenos Ayres has so long enjoyed,
evidently give them a strong claim to the favorable consideration of
other nations. These sentiments on the part of the United States have
not been withheld from other powers, with whom it is desirable to act
in concert. Should it become manifest to the world that the efforts
of Spain to subdue these Provinces will be fruitless, it may be
presumed that the Spanish Government itself will give up the contest.
In producing such a determination it can not be doubted that the
opinion of friendly powers who have taken no part in the controversy
will have their merited influence.

It is of the highest importance to our national character and
indispensable to the morality of our citizens that all violations of
our neutrality should be prevented. No door should be left open for
the evasion of our laws, no opportunity afforded to any who may be
disposed to take advantage of it to compromit the interest or the
honor of the nation. It is submitted, therefore, to the consideration
of Congress whether it may not be advisable to revise the laws with a
view to this desirable result.

It is submitted also whether it may not be proper to designate by law
the several ports or places along the coast at which only foreign
ships of war and privateers may be admitted. The difficulty of
sustaining the regulations of our commerce and of other important
interests from abuse without such designation furnishes a strong
motive for this measure.

At the time of the negotiation for the renewal of the commercial
convention between the United States and Great Britain a hope had
been entertained that an article might have been agreed upon mutually
satisfactory to both countries, regulating upon principles of justice
and reciprocity the commercial intercourse between the United States
and the British possessions as well in the West Indies as upon the
continent of North America. The plenipotentiaries of the two
Governments not having been able to come to an agreement on this
important interest, those of the United States reserved for the
consideration of this Government the proposals which had been
presented to them as the ultimate offer on the part of the British
Government, and which they were not authorized to accept. On their
transmission here they were examined with due deliberation, the
result of which was a new effort to meet the views of the British
Government. The minister of the United States was instructed to make
a further proposal, which has not been accepted. It was, however,
declined in an amicable manner. I recommend to the consideration of
Congress whether further prohibitory provisions in the laws relating
to this intercourse may not be expedient. It is seen with interest
that although it has not been practicable as yet to agree in any
arrangement of this important branch of their commerce, such is the
disposition of the parties that each will view any regulations which
the other may make respecting it in the most friendly light.

By the 5th article of the convention concluded on [1818-10-20], it
was stipulated that the differences which have arisen between the two
Governments with respect to the true intent and meaning of the 5th
article of the treaty of Ghent, in relation to the carrying away by
British officers of slaves from the United States after the exchange
of the ratifications of the treaty of peace, should be referred to
the decision of some friendly sovereign or state to be named for that
purpose. The minister of the United States has been instructed to name
to the British Government a foreign sovereign, the common friend to
both parties, for the decision of this question. The answer of that
Government to the proposal when received will indicate the further
measures to be pursued on the part of the United States.

Although the pecuniary embarrassments which affected various parts of
the Union during the latter part of the preceding year have during the
present been considerably augmented, and still continue to exist, the
receipts into the Treasury to the 30th of September last have
amounted to $19M. After defraying the current expenses of the
Government, including the interest and reimbursement of the public
debt payable to that period, amounting to $18.2M, there remained in
the Treasury on that day more than $2.5M, which, with the sums
receivable during the remainder of the year, will exceed the current
demands upon the Treasury for the same period.

The causes which have tended to diminish the public receipts could
not fail to have a corresponding effect upon the revenue which has
accrued upon imposts and tonnage during the three first quarters of
the present year. It is, however, ascertained that the duties which
have been secured during that period exceed $18M, and those of the
whole year will probably amount to $23M.

For the probably receipts of the next year I refer you to the
statements which will be transmitted from the Treasury, which will
enable you to judge whether further provision be necessary.

The great reduction in the price of the principal articles of
domestic growth which has occurred during the present year, and the
consequent fall in the price of labor, apparently so favorable to the
success of domestic manufactures, have not shielded them against other
causes adverse to their prosperity. The pecuniary embarrassments which
have so deeply affected the commercial interests of the nation have
been no less adverse to our manufacturing establishments in several
sections of the Union.

The great reduction of the currency which the banks have been
constrained to make in order to continue specie payments, and the
vitiated character of it where such reductions have not been
attempted, instead of placing within the reach of these
establishments the pecuniary aid necessary to avail themselves of the
advantages resulting from the reduction in the prices of the raw
materials and of labor, have compelled the banks to withdraw from
them a portion of the capital heretofore advanced to them. That aid
which has been refused by the banks has not been obtained from other
sources, owing to the loss of individual confidence from the frequent
failures which have recently occurred in some of our principal
commercial cities.

An additional cause for the depression of these establishments may
probably be found in the pecuniary embarrassments which have recently
affected those countries with which our commerce has been principally
prosecuted. Their manufactures, for the want of a ready or profitable
market at home, have been shipped by the manufacturers to the United
States, and in many instances sold at a price below their current
value at the place of manufacture. Although this practice may from
its nature be considered temporary or contingent, it is not on that
account less injurious in its effects. Uniformity in the demand and
price of an article is highly desirable to the domestic
manufacturer.

It is deemed of great importance to give encouragement to our
domestic manufacturers. In what manner the evils which have been
adverted to may be remedied, and how far it may be practicable in
other respects to afford to them further encouragement, paying due
regard to the other great interests of the nation, is submitted to
the wisdom of Congress.

The survey of the coast for the establishment of fortifications is
now nearly completed, and considerable progress has been made in the
collection of materials for the construction of fortifications in the
Gulf of Mexico and in the Chesapeake Bay. The works on the eastern
bank of the Potomac below Alexandria and on the Pea Patch, in the
Delaware, are much advanced, and it is expected that the
fortifications at the Narrows, in the harbor of NY, will be completed
the present year. To derive all the advantages contemplated from these
fortifications it was necessary that they should be judiciously
posted, and constructed with a view to permanence. The progress
hitherto has therefore been slow; but as the difficulties in parts
heretofore the least explored and known are surmounted, it will in
future be more rapid. As soon as the survey of the coast is
completed, which it is expected will be done early in the next
spring, the engineers employed in it will proceed to examine for like
purposes the northern and northwestern frontiers.

The troops intended to occupy a station at the mouth of the St.
Peters, on the Mississippi, have established themselves there, and
those who were ordered to the mouth of the Yellow Stone, on the
Missouri, have ascended that river to the Council Bluff, where they
will remain until the next spring, when they will proceed to the
place of their destination. I have the satisfaction to state that
this measure has been executed in amity with the Indian tribes, and
that it promises to produce, in regard to them, all the advantages
which were contemplated by it.

Much progress has likewise been made in the construction of ships of
war and in the collection of timber and other materials for ship
building. It is not doubted that our Navy will soon be augmented to
the number and placed in all respects on the footing provided for by
law.

The Board, consisting of engineers and naval officers, have not yet
made their final report of sites for two naval depots, as instructed
according to the resolutions of [1818-03-18] and [1818-04-20], but
they have examined the coast therein designated, and their report is
expected in the next month.

For the protection of our commerce in the Mediterranean, along the
southern Atlantic coast, in the Pacific and Indian oceans, it has
been found necessary to maintain a strong naval force, which it seems
proper for the present to continue. There is much reason to believe
that if any portion of the squadron heretofore stationed in the
Mediterranean should be withdrawn our intercourse with the powers
bordering on that sea would be much interrupted, if not altogether
destroyed. Such, too, has been the growth of a spirit of piracy in
the other quarters mentioned, by adventurers from every country, in
abuse of the friendly flags which they have assumed, that not to
protect our commerce there would be to abandon it has a prey to their
rapacity.

Due attention has likewise been paid to the suppression of the slave
trade, in compliance with a law of the last session. Orders have been
given to the commanders of all our public ships to seize all vessels
navigated under our flag engaged in that trade, and to bring them in
to be proceeded against in the manner prescribed by the law. It is
hoped that these vigorous measures, supported by like acts by other
nations, will soon terminate a commerce so disgraceful to the
civilized world.

In the execution of the duty imposed by these acts, and of a high
trust connected with it, it is with deep regret I have to state the
loss which has been sustained by the death of Commodore Perry. His
gallantry in a brilliant exploit in the late war added to the renown
of his country. His death is deplored as a national misfortune.