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of nations, we had a strict right to insist. An inevitable delay in procuring the documents necessary for this review of the merits of these claims, retarded this operation, until an unfortunate malady which has afflicted his Catholic majesty, prevented an examination of them. Being now for the first time presented in an unexceptionable form, it is confidently hoped the application will be successful.

I have the satisfaction to inform you that the application I directed to be made for the delivery of a part of the archives of Florida, wbich had been carried to the Havanna, has produced a royal order for their delivery, and that measures have been taken 10 procure its execution.

By the report of the secretary of state, communicated to you on the 25th of Júne last, you were informed of the conditional reduction obtained by the minister of the United States, at Madrid, of the duties on lonnage levied on American shipping in the ports of Spain. The condition of that reduction having been complied with on our part, by the act passed the 13th of July last, I have the satisfaction to inform you that our ships now pay no higher nor other duties, in the continental ports of Spain, than are levied on their national vessels.

The demands against Portugal for illegal captures in the blockade of Terceira, have been allowed to the full amount of the accounts presented by the claimants, and payment was promised to be made in three instalments. The first of these has been paid ; the second, although due, had not, at the date of our last advices, been received, owing, it was alleged, to embarrassments in the finances, consequent on the civil war in which the nation is engaged.

The payments stipulated by the convention with Denmark have been punctually made, and the amount is ready for distribution among the claimants as soon as the board, now sitting, shall have performed their functions.

I regret that, by the last advices from our chargé d'affaires at Naples, that government had still delayed the satisfaction due to our citizens; but

, at that date, the effect of the last instructions was not known. Despatches from thence are hourly expected and the result will be communicated to you without delay.

With the rest of Europe our relations, political and commercial, remain unchanged. Negotiations are going on, to put on a permanent basis the liberal system of commerce now carried on between us and the empire of Russia. The treaty concluded with Austria is executed by his imperial majesty with the most perfect good faith; and as we have no diplomatic agent at his court, he personally inquired into, and corrected a proceeding of some of his subaltern officers, to the injury of our consul in one of his ports.

Our treaty with the Sublime Porte is producing its expected effects on our commerce. New markets are opening for our commodities, and a more extensive range for the employment of our ships. A slight augmentation of the duties on our commerce, inconsistent with the spirit of the treaty, had been imposed; but, on the representation of our chargé d'affaires, it has been promptly withdrawn, and we now enjoy the trade and navigation of the Black Sea, and of all the ports belonging to the Turkish Empire and Asia, on the most perfect equality with all foreign nations.

I wish earnestly that, in announcing to you the continuance of friendship, and the increase of a profitable commercial intercourse with Mexico, with Central America, and the States of the south, I could accompany it with

merce.

the assurance that they all are blessed with that internal tranquillity, and foreign peace, which their heroic devotion to the cause of their independence merits. In Mexico, a sanguinary struggle is now carried on, which has caused some embarrassment to our commerce; but both parties profess the most friendly disposition towards us. To the termination of this contest, we look for the establishment of that secure intercourse, so necessary to nations whose territories are contiguous. How important it will be to us, we may calculate from the fact that, even in this unfavorable state of things, our maritime commerce has increased, and an internal trade, by caravans, from St. Louis to Santa Fé, under the protection of escorts furnished by the government, is carried on to great advantage, and is daily increasing. "The agents provided for by the treaty with this power, to designate the boundaries which it established, have been named on our part; but one of the evils of the civil war now raging there, has been, that the appointment of those with whom they were to co-operate has not yet been announced to us.

The government of Central America has expelled from its territory the party which some time since disturbed its peace. Desirous of fostering a favorable disposition towards us, which has on more than one occasion been evinced by this interesting country, I made a second attempt in this year to establish a diplomatic intercourse with them; but the death of the distinguished citizen whom I had appointed for that purpose, has retarded the execution of measures from which I hoped much advantage to our com

The union of the three states which formed the republic of Colom: bia has been dissolved, but they all, it is believed, consider themselves as separately bound by the treaty which was made in their federal capacity. The minister accredited to the federation, continues in that character near the government of New Granada; and hopes were entertained that a new union would be formed between the separate states, at least for the purposes of foreign intercourse. Our minister has been instructed to use his good offices, whenever they shall be desired, to produce the re-union so much to be wished for the domestic tranquillity of the parties, and the security and facility of foreign commerce.

Some agitations, naturally attendant on an infant reign, have prevailed in the empire of Brazil, which have had the usual effect upon commercial operations; and while they suspended the consideration of claims created on similar occasions, they have given rise to new complaints on the part of our citizens. A proper consideration for calamities and difficulties of this nature has made us less urgent and peremptory in our demands for justice, than duty to our fellow citizens would, under other circumstances, have required.' But their claims are not neglected, and will, on all proper occasions, be urged, and, it is hoped, with effect.

I refrain from making any communication on the subject of our affairs with Buenos Ayres, because the negotiation communicated to you in my last annual message, was, at the date of our last advices, still pending, and in a state that would render a publication of the details inexpedient.

A treaty of amity and commerce has been formed with the republic of Chili, which, if approved by the Senate, will be laid before you. That government seems to be established, and at peace with its neighbors; and its ports being the resorts of our ships, which are employed in the highly important trade of the fisheries, this commercial convention cannot but be of great advantage to our fellow citizens engaged in that perilous but profitable business.

Our commerce with the neighboring state of Peru, owing to the onerous duties levied on our principal articles of export, has been on the decline, and all endeavors to procure an alteration have hitherto proved fruitless. With Bolivia, we have yet no diplomatic intercourse, and the continual contests carried on between it and Peru have made me defer, until a more favorable period, the appointment of any agent for that purpose.

An act of atrocious piracy having been committed on one of our trading ships by the inhabitants of a settlement on the west coast of Sumatra, a frigate was despatched with orders to demand satisfaction for the injury, if those who committed it should be found members of a regular government, capable of maintaining the usual relations with foreign nations; but if, as it was supposed, and as they proved to be, they were a band of lawless pirates, to inflict such a chastisement as would deier them and others from like aggressions. This last was done, and the effect has been an increased respect for our flag in those distant seas, and additional security for our commerce.

In the view I have given of our connection with foreign powers, allusions have been made to their domestic disturbances or foreign wars, to their revolutions or dissensions. It may be proper to cbserve, that this is done solely in cases where those events affect our political relations with them, or to show their operation on our commerce. Farther than this, it is neither our policy nor our right to interfere. Our best wishes on all occasions, our good offices when required, will be afforded, to promote the domestic tranquillity and foreign peace of all nations with whom we have any intercourse. Any intervention in their affairs farther than this, even by the expression of an official opinion, is contrary to our principles of international policy, and will always be avoided.

The report which the secretary of the treasury will in due, time lay before you, will exhibit the national finances in a highly prosperous state. Owing to the continued success of our commercial enterprise, which has enabled the merchants to fulfil their engagements with the government, the receipts from customs during the year will exceed the estimate presented at the last session; and with the other means of the treasury, will prove fully adequate, not only to meet the increased expenditures resulting from the large appropriations made by Congress, but to provide for the payment of all the public debt which is at present redeemable. It is now estimated that the customs will yield to the treasury, during the present year, upwards of twenty-eight millions of dollars. The public lands, however, have proved less productive than was anticipated; and according to present information will fall short of two millions.' The expenditures for all objects other than the public debt, are estimated to amount, during the year, to about sixteen millions of dollars, while a still larger sum, viz. eighteen millions of dollars, will have been applied to the principal and interest of the public

debt.

It is expected, however, that in consequence of the reduced rates of duty, which will take effect after the 3d of March next, there will be a considerable falling off in the revenue from the customs in the year 1833. It will, nevertheless, be amply sufficient to provide for all the wants of the public service, estimated even upon a liberal scale, and for the redemption and purchase of the remainder of the public debt. On the first of January next, the entire public debt of the United States, funded and unfunded, will be reduced to within a fraction of seven millions of dollars; of which two

year 1833.

millions two hundred and twenty-seven thousand three hundred and sixtythree dollars are not of right redeemable until the first of January, 1834, and four millions seven hundred and thirty-five thousand two hundred and ninety-six dollars, not until the second of January, 1835. The commission. ers of the sinking fund, however, being invested with full authority to purchase the debt at the market price, and the means of the treasury being ample, it may be hoped that the whole will be extinguished within the

I cannot too cordially congratulate Congress and my fellow citizens on the near approach of that memorable and happy event, the extinction of the public debt of this great and free nation. Faithful to the wise and patriotic policy marked out by the legislation of the country for this object, the pre sent administration has devoted to it all the means which a flourishing commerce has supplied, and a prudent economy preserved for the public treasury. Within the four years for which the people have confided the executive power to my charge, fifty-eight millions of dollars will have been applied to the payment of the public debt. That this has been accomplished without stinting the expenditures for all other proper objects, will be seen by referring to the liberal provision made, during the same period, for the support and increase of our means of maritime and military defence, for internal improvements of a national character, for the removal and preservation of the Indians, and lastly, for the gallant veterans of the revolution.

The final removal of this great burthen from our resources affords the means of farther provision for all the objects of general welfare and public defence, which the constitution authorizes, and presents the occasion for such farther reduction in the revenue as may not be required for them. From the report of the secretary of the treasury, it will be seen that, after the present year, such a reduciion may be made to a considerable extent; and the subject is earnestly recommended to the consideration of Congress in the hope that the combined wisdom of the representatives of the people will devise such means of effecting that salutary object, as may remove those burthens which shall be found to fall unequally upon any, and as may promote all the great interests of the community.

Long and patient reflection has strengthened the opinions I have heretofore expressed to Congress on this subject; and I deem it my duty, on the present occasion, again to urge thein upon the attention of the legislature

. The soundest maxims of public policy, and the principles upon which our republican institutions are founded, recomiend a proper adaptation of the revenue to the expenditure, and they also require that the expenditure shall be limited to what, by an economical administration, shall be consistent with the simplicity of the government, and necessary to an efficient public service. In effecting this adjustment, it is due in justice to the interests of the different states, and even to the preservation of the Union itself, that the protection afforded by existing laws to any branches of the national industry, should not exceed what may be necessary to counteract the regulations of foreign nations, and to secure a supply of those articles of manufacture, essential to the national independence and safety in time of war. If, upon investigation, it shall be found, as it is believed it will be, that the legislative protection granted to any particular interest is greater than is indispensably requisite for these objects, I recommend that it be gradually diminished, and that, as far as may be consistent with these objects

, the whole scheme of duties be reduced to the revenue standard as soon as a just

regard to the faith of the government, and to the preservation of the large capital invested in establishments of domestic industry, will permit.

That manufactures adequate to the supply of our domestic consumption would, in the abstract, be beneficial to our country, there is no reason to doubt; and to effect their establishment, there is, perhaps, no American citizen who would not, for a while, be willing to pay a higher price for them. But for this purpose, it is presumed that a tariff of high duties, designed for perpetual protection, has entered into the minds of but few of our statesmen. T'he most they have anticipated is a temporary, and generally, incidental protection, which they maintain has the effect to reduce the price by domestic competition below that of the foreign article. Experience, however, our best guide on this as on other subjects, makes it doubtful whether the advantages of this system are not counterbalanced by many evils, and whether it does not tend to beget, in the minds of a large portion of our countrymen, a spirit of discontent and jealousy dangerous to ihe stability of the union.

What then shall be done ? Large interests have grown up under the implied pledge of our national legislation, which it would seem a violation of public faith suddenly to abandon. Nothing could justify it but the public safety, which is the supreme law. But those who have vested their capital in manufacturing establishments cannot expect that the people will continue permanently to pay high taxes for their benefit, when the money is not required for any legitimate purpose in the administration of the government. Is it not enough that the high duties have been paid as long as the money arising from them could be applied to the common benefit in the extinguishment of the public debt?

Those who take an enlarged view of the condition of our country, must be satisfied that the policy of protection must be ultimately limited to those articles of domestic manufacture, which are indispensable to our safety in time of war. Within this scope, on a reasonable scale, it is recommended by every consideration of patriotism and duty, which will doubtless always secure to it a liberal and efficient support. But beyond this object, we have already seen the operation of the system productive of discontent.' In some sections of the republic, its influence is deprecated as tending to concentrate wealth into a few hands, and as creating those germs of dependence and vice, which in other countries have characterized the existence of monopolies, and proved so destructive of liberty and the general good. A large portion of the people, in one section of the republic, declares it not only inexpedient on these grounds, but as disturbing the equal relations of property by legislation, and therefore unconstitutional and unjust.

Doubtless these effects are, in a great degree, exaggerated, and may be ascribed to a mistaken view of the considerations which led to the adoption of the tariff system; but they are, nerertheless, important in enabling us to review the subject with a more thorough knowledge of all its bearings upon the great interests of the republic, and with a determination to dispose of it so that none can with justice complain.

It is my painful duty to state, that in one quarter of the United States, opposition to the revenue laws has arisen to a height which threatens tó thwart their execution, if not to endanger the integrity of the Union. Whatever obstructions may be thrown in the way of the judicial authorities of the gereral government, it is hoped they will be able peaceably to overcome them by the prudence of their own officers, and the patriotism of the peo

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