which the parties have mutual interests, or which might endanger their future harmony. Congress will decide on the expediency of promoting such a sequel, by giving effect to the measure of confining the American navigation to American seamen; a measure which, at the same time that it might have that conciliatory tendency, would have the further advantage of increasing the independence of our navigation, and the resources for our maritime rights.

In conformity with the articles of the treaty of Ghent, relating to the Indians, as well as with a view to the tranquillity of our western and north-western frontiers, measures were taken to establish an immediate peace with the several tribes who had been engaged in hostilities against the United States. Such of them as were invited to Detroit acceded readily to a renewal of the former treaties of friendship. Of the other tribes who were invited to a station on the Mississippi, the greater number have also accepted the peace offered to them. The residue, consisting of the more distant tribes or parts of tribes, remain to be brought over by further explanations, or by such other means as may be adapted to the disposition they may finally disclose.

The Indian tribes within, and bordering on our southern frontier, whom a cruel war on their part had compelled us to chastise into peace, have lately shewn a restlessness, which has called for preparatory measures for repressing it, and for protecting the Commissioners engaged in carrying the terms of the peace into execution.

The execution of the act for fixing the military peace establishment, has been attended with difficulties which, even now, can only be overcome by legislative aid. The selection of officers; the payment and discharge of the troops enlisted for the war; the payment of the retained troops, and their re-union from detached and distant stations; the collection and security of the 'public property, in the quarter-master, commissary, and ordnance departments; and the constant medical assistance required in hospitals and garrisons, rendered a complete execution of the act impracticable on the first of May, the period more immediately contemplated. As soon, however, as circumstances would permit, and as far as has been practicable, consistently with the public interests, the reduction of the army has been accomplished; but the appropriations for its pay, and for other branches of the military service, having proved inadequate, the earliest attention to that subject will be necessary; and the expediency of continuing upon the peace establishment the Staff Officers, who have hitherto been provisionally retained, is also recommended to the consideration of Congress.

In the performance of the executive duty upon this occasion, there has not been wanting a just sensibility to the merits of the American army during the late war; but the obvious policy and design in fixing an efficient military peace establishment, did not afford an opportunity to distinguish the aged and infirm on account of their past services; nor the wounded and disabled, on ac

count

count of their present sufferings. The extent of the reduction indeed unavoidably involved the exclusion of many meritorious officers of every rank, from the service of their country; and so equal, as well as so numerous, were the claims to attention, that a decision by the standard of comparative merit, could seldom be attained. Judged, however, in candour, by a general standard of positive merit, the Army Register will, it is believed, do honour to the establishment; while the case of those officers, whose names are not included in it, devolves, with the strongest interests, upon the Legislative Authority, for such provision as shall be deemed the best calculated to give support and solace to the veteran and invalid; to display the beneficence, as well as the justice of the Government; and to inspire a martial zeal for the public service, upon every future emergency.

Although the embarrassments arising from the want of an uniform national currency have not been diminished since the adjournment of Congress, great satisfaction has been derived, in contemplating the revival of the public credit, and the efficiency of the public resources. The receipts into the Treasury from the various branches of revenue, during the nine months ending on the 30th of September last, have been estimated at twelve millions and a half of dollars; the issues of Treasury Notes of every denomination, during the same period, amounted to the sum of fourteen millions of dollars; and there was also obtained upon loan, during the same period, a sum of nine millions of dollars, of which the

sum of six millions of dollars was subscribed in cash, and the sum of three millions of dollars in Treasury notes. With these means, added to the sum of one million and a half of dollars, being the balance of money in the Treasury on the first of January, there has been paid, between the first of January, and the 1st of October, on account of the appropriations of the preceding and of the present year (exclusively of the amount of the Treasury notes subscribed to the loan, and the amount redeemed in the payment of duties and taxes), the aggregate sum of thirty-three millions and a half of dollars, leaving a balance then in the Treasury estimated at the sum of three millions of dollars. Independent, however, of the arrearages due for military services and supplies, it is presumed, that a further sum of five millions of dollars, including the interest on the public debt, payable on the 1st of January next, will be demanded at the Treasury to complete the expenditures of the present year, and for which the existing ways and means will sufficiently provide.

The national debt, as it was ascertained on the 1st of October last, amounted in the whole to the sum of one hundred and twenty millions of dollars, consisting of the unredeemed balance of the debt contracted before the late war (thirty-nine millions of dollars), the amount of the funded debt contracted in consequence of the war (sixty-four millions of dollars), and the amount of the unfunded and floating debt (including the various issues of Treasury notes) seventeen millions of dollars, which is in a gradual course of payment. There will, probably,

probably, be some addition to the public debt, upon the liquidation of various claims which are depending; and a conciliatory disposition on the part of Congress may lead honourably and advantageously to an equitable arrangement of the militia expenses, incurred by the several States, without the previous sanction or authority of the government of the United States. But, when it is considered that the new, as well as the old, portion of the debt has been contracted in the assertion of the national rights and independence; and when it is recollected, that the public expenditures not being exclusively bestowed upon subjects of a transient nature, will long be visible in the number and equipments of the American navy, in the military works for the de

fence of our harbours and our frontiers, and in the supplies of our arsenals and magazines; the amount will bear a gratifying comparison with the objects which have been attained, as well as with the resources of the country.

The arrangement of the finances, with a view to the receipts and expenditures of a permanent peace establishment, will necessarily enter into the deliberations of Congress during the present session. It is true that the improved condition of the public revenue will not only afford the means of maintaining the faith of the Government with its creditors inviolate, and of prosecating successfully the measures of the most liberal policy; but will also justify an immediate alleviation of burthens imposed by the necessities of war. It is, however, essential to every modification of the finances, that the benefits of

an uniform national currency should be restored to the community. The absence of the precious metals will, it is believed, be a temporary evil; but until they can be again rendered the general medium of exchange, it devolves on the wisdom of Congress to provide a substitute, which shall equally engage the confidence and accommodate the wants of the citizens throughout the union. If the operation of the state banks cannot produce this result, the probable operation of a national bank will merit consideration; and, if neither of these expedients be deemed effectual, it may become necessary to ascertain the terms upon which the notes of the Government (no longer required as an instrument of credit) shall be issued, upon motives of general policy, as a common medium of circulation.

Notwithstanding the security for future repose which the United States ought to find in their love of peace, and their constant respect for the rights of other nations, the character of the times particularly inculcates the lesson that, whether to prevent or repel danger, we ought not to be unprepared for it. This consideration will sufficiently recommend to Congress a liberal provision for the immediate extension and gradual completion of the works of defence, both fixed and floating, on our maritime frontier, and an adequate provision for guarding our inland frontier against dangers to which certain portions of it may continue to be exposed.

As an improvement on our military establishment, it will deserve the consideration of Congress, whether a corps of invalids might

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not be so organized and employed, as at once to aid in the support of meritorious individuals, excluded by age or infirmities from the existing establishment, and to preserve to the public the benefit of their stationary services, and of their exemplary discipline. I recommend also, an enlargement of the military academy already established, and the establishment of others in other sections of the union. And I cannot press too much on the attention of Congress, such a classification and organization of the militia, as will most effectually render it the safeguard of a free state. If experience has shewn in the late splendid achievements of the militia, the value of this resource for the public defence, it has shewn also the importance of that skill in the use of arms, and that familiarity with the essential rules of discipline, which cannot be expected from the regulations now in force. With this subject is ultimately connected the necessity of accommodating the laws, in every respect, to the great object of enabling the political authority of the union to employ, promptly and effectually, the physical power of the union, in the cases designated by the constitution.

The signal services which have been rendered by our navy, and the capacities it has developed for the successful co-operation in the national defence, will give to that portion of the public force its full value in the eyes of Congress, at an epoch which calls for the constant vigilance of all Governments. To preserve the ships now in a sound state; to complete those already contemplated; to provide amply the unperishable materials

for prompt augmentations, and to improve the existing arrangements into more advantageous establishments, for the construction, the repairs, and the security to vessels of war, is dictated by the soundest policy.

In adjusting the duties on imports to the object of revenue, the influence of the tariff on manufactures will necessarily present itself for consideration. However wise the theory may be, which leaves to the sagacity and interest of individuals the application of their industry and resources, there are in this, as in other cases, exceptions to the general rule. Besides the condition which the theory itself implies, of a reciprocal adoption by other nations, experience teaches that so many circumstances must occur in introducing and maturing manufacturing establishments, especially of the more complicated kinds, that a country may remain long without them, although sufficiently advanced, and in some respects even peculiarly fitted for carrying them on with success. Under circumstances giving a powerful impulse to manufacturing industry, it has made among us a progress, and exhibited an efficiency, which justify the belief, that with a protection not more than is due to the enterprizing citizens whose interests are now at stake, it will become at an early day not only safe against occasional competitions from abroad, but a source of domestic wealth, and even of external commerce. In selecting the branches more especially entitled to the public patronage, a preference is obviously claimed by such as will relieve the United States from a dependence on foreign sup

plies,