Speech Transcript:

Fellow Citizens of the Senate and of the House of Representatives:
The progress of our affairs since the last session has been such as
may justly be claimed and expected under a Government deriving all
its powers from an enlightened people, and under laws formed by their
representatives, on great consideration, for the sole purpose of
promoting the welfare and happiness of their constituents. In the
execution of those laws and of the powers vested by the Constitution
in the Executive, unremitted attention has been paid to the great
objects to which they extend.

In the concerns which are exclusively internal there is good cause to
be satisfied with the result. The laws have had their due operation
and effect.

In those relating to foreign powers, I am happy to state that peace
and amity are preserved with all by a strict observance on both sides
of the rights of each.

In matters touching our commercial intercourse, where a difference of
opinion has existed as to the conditions on which it should be placed,
each party has pursued its own policy without giving just cause of
offense to the other.

In this annual communication, especially when it is addressed to a
new Congress, the whole scope of our political concerns naturally
comes into view, that errors, if such have been committed, may be
corrected; that defects which have become manifest may be remedied;
and, on the other hand, that measures which were adopted on due
deliberation, and which experience has shewn are just in themselves
and essential to the public welfare, should be persevered in and
supported. In performing this necessary and very important duty I
shall endeavor to place before you on its merits every subject that
is thought to be entitled to your particular attention in as distinct
and clear a light as I may be able.

By an act of [1815-03-03], so much of the several acts as imposed
higher duties on the tonnage of foreign vessels and on the
manufactures and productions of foreign nations when imported into
the United States in foreign vessels than when imported in vessels of
the United States were repealed so far as respected the manufactures
and productions of the nation to which such vessels belonged, on the
condition that the repeal should take effect only in favor of any
foreign nation when the Executive should be satisfied that such
discriminating duties to the disadvantage of the United States had
likewise been repealed by such nation.

By this act a proposition was made to all nations to place our
commerce with each on a basis which it was presumed would be
acceptable to all. Every nation was allowed to bring its manufactures
and productions into our ports and to take the manufactures and
productions of the United States back to their ports in their own
vessels on the same conditions that they might be transported in
vessels of the United States, and in return it was required that a
like accommodation should be granted to the vessels of the United
States in the ports of other powers. The articles to be admitted or
prohibited on either side formed no part of the proposed arrangement.
Each party would retain the right to admit or prohibit such articles
from the other as it thought proper, and on its own conditions.

When the nature of the commerce between the United States and every
other country was taken into view, it was thought that this
proposition would be considered fair, and even liberal, by every
power. The exports of the United States consist generally of articles
of the 1st necessity and of rude materials in demand for foreign
manufactories, of great bulk, requiring for their transportation many
vessels, the return for which in the manufactures and productions of
any foreign country, even when disposed of there to advantage, may be
brought in a single vessel. This observation is the more especially
applicable to those countries from which manufactures alone are
imported, but it applies in great extent to the European dominions of
every European power and in a certain extent to all the colonies of
those powers. By placing, then, the navigation precisely on the same
ground in the transportation of exports and imports between the
United States and other countries it was presumed that all was
offered which could be desired. It seemed to be the only proposition
which could be devised which would retain even the semblance of
equality in our favor.

Many considerations of great weight gave us a right to expect that
this commerce should be extended to the colonies as well as to the
European dominions of other powers. With the latter, especially with
countries exclusively manufacturing, the advantage was manifestly on
their side. An indemnity for that loss was expected from a trade with
the colonies, and with the greater reason as it was known that the
supplies which the colonies derived from us were of the highest
importance to them, their labor being bestowed with so much greater
profit in the culture of other articles; and because, likewise, the
articles of which those supplies consisted, forming so large a
proportion of the exports of the United States, were never admitted
into any of the ports of Europe except in cases of great emergency to
avert a serious calamity.

When no article is admitted which is not required to supply the wants
of the party admitting it, and admitted then not in favor of any
particular country to the disadvantage of others, but on conditions
equally applicable to all, it seems just that the articles thus
admitted and invited should be carried thither in the vessels of the
country affording such supply and that the reciprocity should be
found in a corresponding accommodation on the other side. By allowing
each party to participate in the transportation of such supplies on
the payment of equal tonnage a strong proof was afforded of an
accommodating spirit. To abandon to it the transportation of the
whole would be a sacrifice which ought not to be expected. The demand
in the present instance would be the more unreasonable in
consideration of the great inequality existing in the trade with the
parent country.

Such was the basis of our system as established by the act of 1815
and such its true character. In the year in which this act was passed
a treaty was concluded with Great Britain, in strict conformity with
its principles, in regard to her European dominions. to her colonies,
however, in the West Indies and on this continent it was not extended,
the British Government claiming the exclusive supply of those
colonies, and from our own ports, and of the productions of the
colonies in return in her own vessels. To this claim the United
States could not assent, and in consequence each party suspended the
intercourse in the vessels of the other by a prohibition which still
exists.

The same conditions were offered to France, but not accepted. Her
Government has demanded other conditions more favorable to her
navigation, and which should also give extraordinary encouragement to
her manufactures and productions in ports of the United States. To
these it was thought improper to accede, and in consequence the
restrictive regulations which had been adopted on her part, being
countervailed on the part of the United States, the direct commerce
between the 2 countries in the vessels of each party has been in
great measure suspended. It is much to be regretted that, although a
negotiation has been long pending, such is the diversity of views
entertained on the various points which have been brought into
discussion that there does not appear to be any reasonable prospect
of its early conclusion.

It is my duty to state, as a cause of very great regret, that very
serious differences have occurred in this negotiation respecting the
construction of the 8th article of the treaty of 1803, by which
Louisiana was ceded to the United States, and likewise respecting the
seizure of the Apollo, in 1820, for a violation of our revenue laws.
The claim of the Government of France has excited not less surprise
than concern, because there does not appear to be a just foundation
for it in either instance. By the 8th article of the treaty referred
to it is stipulated that after the expiration of 12 years, during
which time it was provided by the 7th or preceding article that the
vessels of France and Spain should be admitted into the ports of the
ceded territory without paying higher duties on merchandise or
tonnage on the vessels than such as were paid by citizens of the
United States, the ships of France should forever afterwards be
placed on the footing of the most favored nation.

By the obvious construction of this article it is presumed that it
was intended that no favor should be granted to any power in those
ports to which France should not be forthwith entitled, nor should
any accommodation be allowed to another power on conditions to which
she would not also be entitled on the same conditions. Under this
construction no favor or accommodation could be granted to any power
to the prejudice of France. By allowing the equivalent allowed by
those powers she would always stand in those ports on the footing of
the most favored nation.

But if this article should be so construed as that France should
enjoy, of right, and without paying the equivalent, all the
advantages of such conditions as might be allowed to other powers in
return for important concessions made by them, then the whole
character of the stipulations would be changed. She would not be
placed on the footing of the most favored nation, but on a footing
held by no other nation. She would enjoy all advantages allowed to
them in consideration of like advantages allowed to us, free from
every and any condition whatever.

As little cause has the Government of France to complain of the
seizure of the Apollo and the removal of other vessels from the
waters of the St. Marys. It will not be denied that every nation has
a right to regulate its commercial system as it thinks fit and to
enforce the collection of its revenue, provided it be done without an
invasion of the rights of other powers. The violation of its revenue
laws is an offense which all nations punish, the punishment of which
gives no just cause of complaint to the power to which the offenders
belong, provided it be extended to all equally.

In this case every circumstance which occurred indicated a fixed
purpose to violate our revenue laws. Had the party intended to have
pursued a fair trade he would have entered the port of some other
power, landed his goods at the custom house according to law, and
re-shipped and sent them in the vessel of such power, or of some
other power which might lawfully bring them, free from such duties,
to a port of the United States. But the conduct of the party in this
case was altogether different. He entered the river St. Marys, the
boundary line between the United States and Florida, and took his
position on the Spanish side, on which in the whole extent of the
river there was no town, no port or custom house, and scarcely any
settlement. His purpose, therefore, was not to sell his goods to the
inhabitants of Florida, but to citizens of the United States, in
exchange for their productions, which could not be done without a
direct and palpable breach of our laws. It is known that a regular
systematic plan had been formed by certain persons for the violation
of our revenue system, which made it the more necessary to check the
proceeding in its commencement.

That the unsettled bank of a river so remote from the Spanish
garrisons and population could give no protection to any party in
such a practice is believed to be in strict accord with the law of
nations. It would not have comported with a friendly policy in Spain
herself to have established a custom house there, since it could have
subserved no other purpose than to elude our revenue law. But the
Government of Spain did not adopt that measure. On the contrary, it
is understood that the Captain-General of Cuba, to whom an
application to that effect was made by these adventurers, had not
acceded to it.

The condition of those Provinces for many years before they were
ceded to the United States need not now be dwelt on. Inhabited by
different tribes of Indians and an inroad for every kind of
adventurer, the jurisdiction of Spain may be said to have been almost
exclusively confined to her garrisons. It certainly could not extend
to places where she had no authority. The rules, therefore,
applicable to settled countries governed by laws could not be deemed
so to the deserts of Florida and to the occurrences there.

It merits attention also that the territory had been ceded to the
United States by a treaty the ratification of which had not been
refused, and which has since been performed. Under any circumstances,
therefore, Spain became less responsible for such acts committed
there, and the United States more at liberty to exercise authority to
prevent so great a mischief. The conduct of this Government has in
every instance been conciliatory and friendly to France. The
construction of our revenue law in its application to the cases which
have formed the ground of such serious complaint on her part and the
order to the collector of St. Marys, in accord with it, were given
two years before these cases occurred, and in reference to a breach
which was attempted by the subjects of another power. The
application, therefore, to the cases in question was inevitable. As
soon as the treaty by which these Provinces were ceded to the United
States was ratified, and all danger of further breach of our revenue
laws ceased, an order was given for the release of the vessel which
had been seized and for the dismission of the libel which had been
instituted against her.

The principles of this system of reciprocity, founded on the law of
[1815-03-03], have been since carried into effect with the Kingdoms
of the Netherlands, Sweden, Prussia, and with Hamburg, Lubeck, and
Oldenburg, with a provision made by subsequent laws in regard to the
Netherlands, Prussia, Hamburg, and Bremen that such produce and
manufactures as could only be, or most usually were, 1st shipped from
the ports of those countries, the same being imported in vessels
wholly belonging to their subjects, should be considered and admitted
as their own manufactures and productions.

The Government of Norway has by an ordinance opened the ports of that
part of the dominions of the King of Sweden to the vessels of the
United States upon the payment of no other or higher duties than are
paid by Norwegian vessels, from whatever place arriving and with
whatever articles laden. They have requested the reciprocal allowance
for the vessels of Norway in the ports of the United States. As this
privilege is not within the scope of the act of [1815-03-03], and can
only be granted by Congress, and as it may involve the commercial
relations of the United States with other nations, the subject is
submitted to the wisdom of Congress.

I have presented thus fully to your view our commercial relations
with other powers, that, seeing them in detail with each power, and
knowing the basis on which they rest, Congress may in its wisdom
decide whether any change ought to be made, and, if any, in what
respect. If this basis is unjust or unreasonable, surely it ought to
be abandoned; but if it be just and reasonable, and any change in it
will make concessions subversive of equality and tending in its
consequences to sap the foundations of our prosperity, then the
reasons are equally strong for adhering to the ground already taken,
and supporting it by such further regulations as may appear to be
proper, should any additional support be found necessary.

The question concerning the construction of the first article of the
treaty of Ghent has been, by a joint act of the representatives of
the United States and of Great Britain at the Court of St.
Petersburg, submitted to the decision of His Imperial Majesty the
Emperor of Russia. The result of that submission has not yet been
received. The commissioners under the 5th article of that treaty not
having been able to agree upon their decision, their reports to the
two Governments, according to the provisions of the treaty, may be
expected at an early day.

With Spain the treaty of [1819-02-22], has been partly carried into
execution. Possession of E and W FL has been given to the United
States, but the officers charged with that service by an order from
His Catholic Majesty, delivered by his minister to the Sec of State,
and transmitted by a special agent to the Captain-General of Cuba, to
whom it was directed and in whom the Government of those Provinces was
vested, have not only omitted, in contravention of the order of their
Sovereign, the performance of the express stipulation to deliver over
the archives and documents relating to the property and sovereignty of
those Provinces, all of which it was expected would have been
delivered either before or when the troops were withdrawn, but
defeated since every effort of the United States to obtain them,
especially those of the greatest importance. This omission has given
rise to several incidents of a painful nature, the character of which
will be fully disclosed by the documents which will be hereafter
communicated.

In every other circumstance of the law of the 3rd of March last, for
carrying into effect that treaty, has been duly attended to. For the
execution of that part which preserved in force, for the Government
of the inhabitants for the term specified, all the civil, military,
and judicial powers exercised by the existing Government of those
Provinces an adequate # of officers, as was presumed, were appointed,
and ordered to their respective stations. Both Provinces were formed
into 1 Territory, and a governor appointed for it; but in
consideration of the pre-existing division and of the distance and
difficulty of communication between Pensacola, the residence of the
governor of West Florida, and St. Augustine, that of the governor of
East Florida, at which places the inconsiderable population of each
Province was principally collected, two secretaries were appointed,
the one to reside at Pensacola and the other at St. Augustine.

Due attention was likewise paid to the execution of the laws of the
United States relating to the revenue and the slave trade, which were
extended to these Provinces. The whole Territory was divided into
three collection districts, that part lying between the river St.
Marys and Cape Florida forming one, that from the Cape to the
Apalachicola another, and that from the Apalachicola to the Perdido
the third. To these districts the usual number of revenue officers
were appointed; and to secure the due operation of these laws one
judge and a district attorney were appointed to reside at Pensacola,
and likewise one judge and a district attorney to reside at St.
Augustine, with a specified boundary between them; and one marshal
for the whole, with authority to appoint a deputy.

In carrying this law into effect, and especially that part relating
to the powers of the existing Government of those Provinces, it was
thought important, in consideration of the short term for which it
was to operate and the radical change which would be made at the
approaching session of Congress, to avoid expense, to make no
appointment which should not be absolutely necessary to give effect
to those powers, to withdraw none of our citizens from their
pursuits, whereby to subject the Government to claims which could not
be gratified and the parties to losses which it would be painful to
witness.

It has been seen with much concern that in the performance of these
duties a collision arose between the governor of the Territory and
the judge appointed for the western district. It was presumed that
the law under which this transitory Government was organized, and the
commissions which were granted to the officers who were appointed to
execute each branch of the system, and to which the commissions were
adapted, would have been understood in the same sense by them in
which they were understood by the Executive. Much allowance is due to
officers employed in each branch of this system, and the more so as
there is good cause to believe that each acted under the conviction
that he possessed the power which he undertook to exercise. Of the
officer holding the principal station, I think it proper to observe
that he accepted it with reluctance, in compliance with the
invitation given him, and from a high sense of duty to his country,
being willing to contribute to the consummation of an event which
would insure complete protection to an important part of our Union,
which had suffered much from incursion and invasion, and to the
defense of which his very gallant and patriotic services had been so
signally and usefully devoted.

From the intrinsic difficulty of executing laws deriving their origin
from different sources, and so essentially different in many important
circumstances, the advantage, and indeed the necessity, of
establishing as soon as practicable a well-organized Government over
that Territory on the principles of our system is apparent. This
subject is therefore recommended to the early consideration of
Congress.

In compliance with an injunction of the law of the 3rd of March last,
three commissioners have also been appointed and a board organized for
carrying into effect the 11th article of the treaty above recited,
making provision for the payment of such of our citizens as have
well-founded claims on Spain of the character specified by that
treaty. This board has entered on its duties and made some progress
therein. The commissioner and surveyor of His Catholic Majesty,
provided for by the 4th article of the treaty, have not yet arrived
in the United States, but are soon expected. As soon as they do
arrive corresponding appointments will be made and every facility be
afforded for the due execution of this service.

The Government of His Most Faithful Majesty since the termination of
the last session of Congress has been removed from Rio de Janeiro to
Lisbon, where a revolution similar to that which had occurred in the
neighboring Kingdom of Spain had in like manner been sanctioned by
the accepted and pledged faith of the reigning monarch. The
diplomatic intercourse between the United States and the Portuguese
dominions, interrupted by this important event, has not yet been
resumed, but the change of internal administration having already
materially affected the commercial intercourse of the United States
with the Portuguese dominions, the renewal of the public missions
between the two countries appears to be desirable at an early day.

It is understood that the colonies in South America have had great
success during the present year in the struggle for their
independence. The new Government of Colombia has extended its
territories and considerably augmented its strength, and at Buenos
Ayres, where civil dissensions had for some time before prevailed,
greater harmony and better order appear to have been established.
Equal success has attended their efforts in the Provinces on the
Pacific. It has long been manifest that it would be impossible for
Spain to reduce these colonies by force, and equally so that no
conditions short of their independence would be satisfactory to them.
It may therefore be presumed, and it is earnestly hoped, that the
Government of Spain, guided by enlightened and liberal councils, will
find it to comport with its interests and due to its magnanimity to
terminate this exhausting controversy on that basis. To promote this
result by friendly counsel with the Government of Spain will be the
object of the Government of the United States.

In conducting the fiscal operations of the year it has been found
necessary to carry into full effect the act of the last session of
Congress authorizing a loan of $5M. This sum has been raised at an
average premium of $5.59 per centum upon stock bearing an interest at
the rate of 5% per annum, redeemable at the option of the Government
after [1835-01-01].

There has been issued under the provisions of this act $4,735,296.30
of 5% stock, and there has been or will be redeemed during the year
$3,197,030.71 of Louisiana 6% deferred stock and Mississippi stock.
There has therefore been an actual increase of the public debt
contracted during the year of $1,538,266.69.

The receipts into the Treasury from the first of January to the 30th
of September last have amounted to $16,219,197.70, which, with the
balance of $1,198,461.21 in the Treasury on the former day, make the
aggregate sum of $17,417,658.91. The payments from the Treasury
during the same period have amounted to $15,655,288.47, leaving in
the Treasury on the last-mentioned day the sum of $1,762,370.44. It
is estimated that the receipts of the 4th quarter of the year will
exceed the demands which will be made on the Treasury during the same
period, and that the amount in the Treasury on the 30th of September
last will be increased on the first day of January next.

At the close of the last session it was anticipated that the
progressive diminution of the public revenue in 1819 and 1820, which
had been the result of the languid state of our foreign commerce in
those years, had in the latter year reached its extreme point of
depression. It has, however, been ascertained that that point was
reached only at the termination of the first quarter of the present
year. From that time until the 30th of September last the duties
secured have exceeded those of the corresponding quarters of the last
year $1.172M, whilst the amount of debentures issued during the three
first quarters of this year is $952,000 less than that of the same
quarters of the last year.

There are just grounds to believe that the improvement which has
occurred in the revenue during the last-mentioned period will not
only be maintained, but that it will progressively increase through
the next and several succeeding years, so as to realize the results
which were presented upon that subject by the official reports of the
Treasury at the commencement of the last session of Congress.

Under the influence of the most unfavorable circumstances the revenue
for the next and subsequent years to the year 1825 will exceed the
demands at present authorized by law.

It may fairly be presumed that under the protection given to domestic
manufactures by the existing laws we shall become at no distant period
a manufacturing country on an extensive scale. Possessing as we do the
raw materials in such vast amount, with a capacity to augment them to
an indefinite extent; raising within the country aliment of every
kind to an amount far exceeding the demand for home consumption, even
in the most unfavorable years, and to be obtained always at a very
moderate price; skilled also, as our people are, in the mechanic arts
and in every improvement calculated to lessen the demand for and the
price of labor, it is manifest that their success in every branch of
domestic industry may and will be carried, under the encouragement
given by the present duties, to an extent to meet any demand which
under a fair competition may be made upon it.

A considerable increase of domestic manufactures, by diminishing the
importation of foreign, will probably tend to lessen the amount of
the public revenue. As, however, a large proportion of the revenue
which is derived from duties is raised from other articles than
manufactures, the demand for which will increase with our population,
it is believed that a fund will still be raised from that source
adequate to the greater part of the public expenditures, especially
as those expenditures, should we continue to be blessed with peace,
will be diminished by the completion of the fortifications, dock
yards, and other public works, by the augmentation of the Navy to the
point to which it is proposed to carry it, and by the payment of the
public debt, including pensions for military services.

It can not be doubted that the more complete our internal resources
and the less dependent we are on foreign powers for every national as
well as domestic purpose the greater and more stable will be the
public felicity. By the increase of domestic manufactures will the
demand for the rude materials at home be increased, and thus will the
dependence of the several parts of our Union on each other and the
strength of the Union itself be proportionably augmented.

In this process, which is very desirable, and inevitable under the
existing duties, the resources which obviously present themselves to
supply a deficiency in the revenue, should it occur, are the
interests which may derive the principal benefit from the change. If
domestic manufactures are raised by duties on foreign, the deficiency
in the fund necessary for public purposes should be supplied by duties
on the former.

At the last session it seemed doubtful whether the revenue derived
from the present sources would be adequate to all the great purposes
of our Union, including the construction of our fortifications, the
augmentation of the Navy, and the protection of our commerce against
the dangers to which it is exposed. had the deficiency been such as
to subject us to the necessity either to abandon those measures of
defense or to resort to the other means for adequate funds, the
course presented to the adoption of a virtuous and enlightened people
appeared to be a plain one. It must be gratifying to all to know that
this necessity does not exist. Nothing, however, in contemplation of
such important objects, which can be easily provided for, should be
left to hazard. It is thought that the revenue may receive an
augmentation from the existing sources, and in a manner to aid our
manufactures, without hastening prematurely the result which has been
suggested. It is believed that a moderate additional duty on certain
articles would have that effect, without being liable to any serious
objection.

The examination of the whole coast, for the construction of permanent
fortifications, from St. Croix to the Sabine, with the exception of
part of the territory lately acquired, will be completed in the
present year, as will be the survey of the Mississippi, under the
resolution of the House of Representatives, from the mouth of the
Ohio to the ocean, and likewise of the Ohio from Louisville to the
Mississippi. A progress corresponding with the sums appropriated has
also been made in the construction of these fortifications at the
ports designated. As they will form a system of defense for the whole
maritime frontier, and in consequence for the interior, and are to
last for ages, the greatest care has been taken to fix the position
of each work and to form it on such a scale as will be adequate to
the purpose intended by it. All the inlets and assailable parts of
our Union have been minutely examined, and positions taken with a
view to the best effect, observing in every instance a just regard
for economy. Doubts, however, being entertained as to the propriety
of the position and extent of the work at Dauphine Island, further
progress in it was suspended soon after the last session of Congress,
and an order given to the Board of Engineers and Naval Commissioners
to make a further and more minute examination of it in both respects,
and to report the result without delay.

Due progress has been made in the construction of vessels of war
according to the law providing for the gradual augmentation of the
Navy, and to the extent of existing appropriations. The vessels
authorized by the act of 1820 have all been completed and are now in
actual service. None of the larger ships have been or will be
launched for the present, the object being to protect all which may
not be required for immediate service from decay by suitable
buildings erected over them.

A squadron has been maintained, as heretofore, in the Mediterranean,
by means whereof peace has been preserved with the Barbary Powers.
This squadron has been reduced the present year to as small a force
as is compatible with the fulfillment of the object intended by it.
From past experience and the best information respecting the views of
those powers it is distinctly understood that should our squadron be
withdrawn they would soon recommence their hostilities and
depredations upon our commerce. Their fortifications have lately been
rebuilt and their maritime force increased.

It has also been found necessary to maintain a naval force on the
Pacific for the protection of the very important interests of our
citizens engaged in commerce and the fisheries in that sea. Vessels
have likewise been employed in cruising along the Atlantic coast, in
the Gulf of Mexico, on the coast of Africa, and in the neighboring
seas. In the latter many piracies have been committed on our
commerce, and so extensive was becoming the range of those
unprincipled adventurers that there was cause to apprehend, without a
timely and decisive effort to suppress them, the worst consequences
would ensue. Fortunately, a considerable check has been given to that
spirit by our cruisers, who have succeeded in capturing and destroying
several of their vessels. Nevertheless, it is considered an object of
high importance to continue these cruises until the practice is
entirely suppressed.

Like success has attended our efforts to suppress the slave trade.
Under the flag of the United States and the sanction of their papers
the trade may be considered as entire suppressed, and if any of our
citizens are engaged in it under the flags and papers of other
powers, it is only from a respect of those powers that these
offenders are not seized and brought home to receive the punishment
which the laws inflict. If every other power should adopt the same
policy and pursue the same vigorous means for carrying it into
effect, the trade could no longer exist.

Deeply impressed with the blessings which we enjoy, and of which we
have such manifold proofs, my mind is irresistibly drawn to that
Almighty Being, the great source from whence they proceed and to whom
our most grateful acknowledgments are due.