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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 may be practicable, a well organized Government over that Territory, on the principles of our system, is apparent. This subject, therefore, is recommended to the early consideration of Congress.

In compliance with an injunction of the Law of the 3d of March last, 3 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 Catholick 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 neighbouring Kingdom of Spain, had, in like manner, been sanctioned, by the accepted and pledged faith of the reigning Monarch. The Diplomatick Intercourse between The United States and the Portuguese Dominions, interrupted by that 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 publick Missions between the two Countries, appears to be advisable at an earlyday.

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 dissension 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 Counsels, 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 5,000,000 of dollars. This sum has been raised at an average premium of 5 dollars 59 hundredths per cent. upon Stock bearing an interest at the rate of 5 per cent. per annum, redeemable at the option of the Government after the 1st day of January, 1835.

There has been issued, under the provisions of this Act, 4,735,296 dollars, 30 cents, of 5 per cent. Stock; and there has been, or will be, redeemed during the year, 3,197,030 dollars, 71 cents, of Louisiana, 6 per cent. deferred Stock, and Mississippi Stock. There has, therefore, been an actual increase of the Publick Debt, contracted during the Year, of 1,538,266 dollars, 69 cents.

The Receipts into the Treasury from the 1st of January to the 30th of September last, have amounted to 16,219,197 dollars, 70 cents, which, with the balance of 1,198,461 dollars, 21 cents, in the Treasury on the former day, make the aggregate sum of 17,417,658 dollars 91


The Payments from the Treasury during the same period have amounted to 15,645,288 dollars, 47 cents, leaving in the Treasury, on the last mentioned day, the sum of 1,762,370 dollars, 44 cents. 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 1st day of January next.

At the close of the last Session, it was anticipated that the progressive diminution of the Publick 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, 1,172,000 dollars; whilst the amount of Debentures, issued during the 3 first Quarters of this Year, is 952,000 dollars 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 on it.

A considerable increase of domestic manufactures, by diminishing the importation of Foreign, will probably tend to lessen the amount of the publick 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 national 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 publick works; by the augmentation of the Navy to the point to which it is proposed to carry it, and by the payment of the Publick Debt, including Pensions for Military Services.

It cannot 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 publick 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 publick purposes should be supplied by duties on the former. At the last Session it seemed doubtful, whether the Revenue derived from the present sources wouhl be adequate to all the great purposes of our Union, including the construction of our Fortifications, the augmentation of our 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 de

fence, or to resort to 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 a 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 points designated. As they will form a system of defence, for the whole maritime Frontier, and, in consequence, for the Interior, and are to last for Ages, the utmost 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 to 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 fulfilment 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 in 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 cruizing along the Atlantic Coast, in the Gulph of Mexico, on the Coast of Africa, and in the neighbouring 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 Cruizers, who have succeeded in capturing and destroying several of their Vessels. Nevertheless, it is considered an object of high importance to continue those Cruizers 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 entirely 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 to the rights 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. Washington, 3rd December, 1821.


LOI de France, relative au Réglement Définitif du Budget de l'Exercice 1820.

A Paris, le 31 Mars, 1822.

Louis, par la Grâce de Dieu, Roi de France et de Navarre, à tous présens et à venir, salut.

Nous avons proposé, les Chambres ont adopté, nous avons ordonné et ordonnons ce qui suit:


ART. 1. Les Crédits ouverts par les Lois des 27 Juin et 14 Juillet, 1819, et 28 Mai, 1820, aux Ministères ci-après, pour leur service des

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