SENATE.]

President's Annual Message.

[DECEMBER, 1817

tives that a quorum of the Senate is assembled, | vessels, of both parties, of which an exact list is in and ready to proceed to business.

On motion by Mr. BARBOUR, a committee was appointed to inquire whether any, and if any, what legislative measures may be necessary, for admitting the State of Mississippi into the Union; and Messrs. BARBOUR, KING, and WILLIAMS, of Tennessee, were appointed the

committee.

A message from the House of Representatives informed the Senate that a quorum of the House of Representatives is assembled, and have elected HENRY CLAY, one of the Representatives for the State of Kentucky, their Speaker, and THOMAS DOUGHERTY their Clerk, and are ready to proceed to business. The Senate then adjourned.

TUESDAY, December 2. HARRISON GRAY OTIS, from the State of sachusetts, arrived on the 1st instant, and tended this day.

terchanged, shall be dismantled. It is also agreed, that the force retained shall be restricted in its duty to the internal purposes of each party; and that the arrangement shall remain in force until six months shall have expired, after notice given by one of the parties to the other of its desire that it should terboth sides, and what is of still greater importance, minate. By this arrangement useless expense on the danger of collision between armed vessels in those inland waters, which was great, is prevented. I have the satisfaction also to state, that the Commissioners, under the fourth article of the Treaty of Ghent, to whom it was referred to decide to which party the several islands in the Bay of Passamaquoddy belonged, under the treaty of one thousand seven hundred and eighty-three, have agreed in a report, by which all the islands in the possession of each party before the late war have been decreed to it. The Commissioners, acting under the other articles of the Treaty of Ghent, for the settlement of boundaMas-ries, have also been engaged in the discharge of at-them. The difference which arose between the two their respective duties, but have not yet completed Governments under that treaty, respecting the right of the United States to take and cure fish on the coast of the British provinces, north of our limits, which had been secured by the treaty of one thousand seven hundred and eighty-three, is still in negotiation. The proposition made by this Government to extend to the colonies of Great Britain the principles of the convention of London, by which the commerce between the ports of the United States and British ports in Europe had been placed on a footing of equality, has been declined by the British Government. This subject having been thus amicably discussed between the two Governments, and it appearing that the British Government is unwilling to depart from its present regulations, it remains for Congress to decide whether they will make any other regulations, in consequence thereof, for the protection and improvement of our navigation.

Mr. TICHENOR reported, from the joint committee, that they had waited on the President of the United States, and that the President of the United States informed the committee that he would make a communication to the two Houses this day, at twelve o'clock.

President's Annual Message.

The following Message was then received from the PRESIDENT OF THE UNITED STATES: Fellow-citizens of the Senate

and of the House of Representatives :

At no period of our political existence had we so much cause to felicitate ourselves at the prosperous and happy condition of our country. The abundant fruits of the earth have filled it with plenty. An extensive and profitable commerce has greatly augmented our revenue. The public credit has attained an extraordinary elevation. Our preparations for defence, in case of future wars, from which, by the experience of all nations, we ought not to expect to be exempted, are advancing, under a well-digested system, with all the despatch which so important a work will admit. Our free Government, founded on the interest and affections of the people, has gained, and is daily gaining, strength. Local jealousies are rapidly yielding to more generous, enlarged, and enlightened views of national policy. For advantages so numerous and highly important, it is our duty to unite in grateful acknowledgments to that Omnipotent Being from whom they are derived, and in unceasing prayer that He will endow us with virtue and strength to maintain and hand them down, in their utmost purity, to our latest posterity.

I have the satisfaction to inform you, that an arrangement which had been commenced by my predecessor, with the British Government, for the reduction of the naval force, by Great Britain and the United States, on the Lakes, has been concluded; by which it is provided, that neither party shall keep in service on Lake Champlain more than one vessel; on Lake Ontario, more than one; and on Lake Erie and the upper lakes, more than two; to be armed, each, with one cannon only; and that all the other armed

The negotiation with Spain, for spoliations on our commerce, and the settlement of boundaries, remains, essentially, in the state it held, by the communications that were made to Congress by my predecessor. It has been evidently the policy of the Spanish Government to keep the negotiation suspended, and in this the United States have acquiesced, from an amicable disposition towards Spain, and in the expectation that her Government would, from a sense of justice, finally accede to such an arrangement as would be equal between the parties. A disposition has been lately shown by the Spanish Government to move in the negotiation, which has been met by this Government, and should the conciliatory and friendly policy which has invariably guided our councils be reciprocated, a just and satisfactory arrangement may be expected. It is proper, however, to remark, that no proposition has yet been made from which such a result can be presumed.

It was anticipated at an early stage, that the contest between Spain and the colonies would become highly interesting to the United States. It was natural that our citizens should sympathize in events which affected their neighbors. It seemed probable, also, that the prosecution of the conflict along our coast, and in contiguous countries, would occasionally interrupt our commerce, and otherwise affect the

persons and property of our citizens. These antici- | pations have been realized. Such injuries have been received from persons acting under the authority of both the parties, and for which redress has, in most instances, been withheld. Through every stage of the conflict, the United States have maintained an impartial neutrality, giving aid to neither of the parties in men, money, ships, or munitions of war. They have regarded the contest, not in the light of an ordinary insurrection or rebellion, but as a civil war between parties nearly equal, having, as to neutral powers, equal rights. Our ports have been open to both, and every article, the fruit of our soil, or of the industry of our citizens, which either was permitted to take, has been equally free to the other. Should the colonies establish their independence, it is proper now to state, that this Government neither seeks nor would accept from them any advantage, in commerce or otherwise, which will not be equally open to all other nations. The colonies will, in that event, become independent States, free from any obligation to or connection with us, which it may not then be their interest to form on the basis of a fair reciprocity.

In the summer of the present year, an expedition was set on foot against East Florida, by persons claiming to act under the authority of some of the colonies, who took possession of Amelia Island, at the mouth of the St. Mary's River, near the boundary of the State of Georgia. As this province lies eastward of the Mississippi, and is bounded by the United States and the ocean on every side, and has been a subject of negotiation with the Government of Spain, as an indemnity for losses by spoliation, or in exchange for territory of equal value, westward of the Mississippi, a fact well known to the world, it excited surprise that any countenance should be given to this measure by any of the colonies. As it would be difficult to reconcile it with the friendly relations existing between the United States and the colonies, a doubt was entertained whether it had been authorized By them or any of them. This doubt has gained strength by the circumstances which have unfolded themselves in the prosecution of the enterprise, which have marked it as a mere private, unauthorized adventure. Projected and commenced with an incompetent force, reliance seems to have been placed on what might be drawn, in defiance of our laws, from within our limits; and of late, as their resources have failed, it has assumed a more marked character of unfriendliness to us; the island being made a channel for the illicit introduction of slaves from Africa into the United States, an asylum for fugitive slaves from the neighboring States, and a port for smuggling of every kind.

A similar establishment was made, at an earlier period, by persons of the same description, in the Gulf of Mexico, at a place called Galveston, within the limits of the United States, as we contend, under the cession of Louisiana. The enterprise has been marked, in a more signal manner, by all the objectionable circumstances which characterized the other, and more particularly by the equipment of privateers which have annoyed our commerce, and by smuggling. These establishments, if ever sancfioned by any authority whatever, which is not believed, have abused their trust, and forfeited all claim to consideration. A just regard for the rights and interests of the United States required that they should be suppressed, and orders have been accord

[SENATE.

ingly issued to that effect. The imperious considerations which produced this measure will be explained to the parties whom it may, in any degree, concern. To obtain correct information on every subject in which the United States are interested; to inspire just sentiments in all persons in authority on either side, of our friendly disposition, so far as it may comport with an impartial neutrality; and to secure proper respect to our commerce in every port, and from every flag, it has been thought proper to send a ship of war, with three distinguished citizens, along the southern coast, with instructions to touch at such ports as they may find most expedient for these purposes. With the existing authorities, with those in the possession of, and exercising the sovereignty, must the communication be held; from them alone can redress for past injuries, committed by persons acting under them, be obtained; by them alone can the commission of the like, in future, be prevented.

Our relations with the other powers of Europe have experienced no essential change since the last session. In our intercourse with each, due attention continues to be paid to the protection of our commerce, and to every other object in which the United States are interested. A strong hope is entertained, that by adhering to the maxims of a just, a candid, and friendly policy, we may long preserve amicable relations with all the powers of Europe, on conditions advantageous and honorable to our country.

With the Barbary States, and the Indian tribes, our pacific relations have been preserved.

In calling your attention to the internal concerns of our country, the view which they exhibit is peculiarly gratifying. The payments which have been made into the Treasury show the very productive state of the public revenue. After satisfying the appropriations made by law for the support of the Civil Government, and of the Military and Naval Establishments, embracing suitable provisions for fortifications and for the gradual increase of the Navy, paying the interest of the public debt, and extinguishing more than eighteen millions of the principal, within the present year, it is estimated that a balance of more than six millions of dollars will remain in the Treasury on the first day of January, applicable to the current service of the ensuing year. The payments into the Treasury during the year one thousand eight hundred and eighteen, on account of imposts and tonnage, resulting principally from duties which have accrued in the present year, may be fairly estimated at twenty millions of dollars; the internal revenues, at two millions five hundred thousand; the public lands, at one million five hundred thousand; bank dividends and incidental receipts, at five hundred thousand; making in the whole twenty-four millions five hundred thousand dollars.

The annual permanent expenditure for the support of the Civil Government, and of the Army and Navy, as now established by law, amounts to eleven millions eight hundred thousand dollars; and for the Sinking Fund, to ten millions; making in the whole twenty-one millions eight hundred thousand dollars; leaving an annual excess of revenue beyond the expenditure of two millions seven hundred thousand dollars, exclusive of the balance estimated to be in the Treasury on the first day of January, one thousand eight hundred and eighteen.

In the present state of the Treasury, the whole of the Louisiana debt may be redeemed in the year one thousand eight hundred and nineteen; after which,

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President's Annual Message.

if the public debt continues as it now is, above par, there will be annually about five millions of the Sinking Fund unexpended, until the year one thousand eight hundred and twenty-five, when the loan of one thousand eight hundred and twelve, and the stock created by funding Treasury notes, will be redeemable.

[DECEMBER, 1817. recommending to the States the adoption of an amendment to the constitution, which shall give to Congress the right in question. In cases of doubtful construction, especially of such vital interest, it comports with the nature and origin of our institutions, and will contribute much to preserve them, to apply to our constituents for a specific grant of the power. We may confidently rely, that if it appears to their satisfaction that the power is necessary, it will always be granted. In this case I am happy to observe that experience has afforded the most ample pub-proof of its utility, and that the benign spirit of conciliation and harmony, which now manifests itself throughout our Union, promises to such a recommendation the most prompt and favorable result. I think proper to suggest, also, in case this measure is adopted, that it be recommended to the States to include, in the amendment sought, a right in Congress to institute, likewise, seminaries of learning for the all-important purpose of diffusing knowledge among our fellow-citizens throughout the United States.

It is also estimated that the Mississippi stock will be discharged during the year one thousand eight hundred and nineteen, from the proceeds of the public lands assigned to that object, after which the receipts from those lands will annually add to the lic revenue the sum of one million and a half, making the permanent annual revenue amount to twenty-six millions of dollars; and leaving an annual excess of revenue, after the year one thousand eight hundred and nineteen, beyond the permanent authorized expenditure, of more than four millions of dollars.

By the last returns to the Department of War, the militia force of the several States may be estimated at eight hundred thousand men, infantry, artillery, and cavalry. Great part of this force is armed, and measures are taken to arm the whole. An improvement in the organization and discipline of the militia is one of the great objects which claims the unremitted attention of Congress.

The regular force amounts nearly to the number required by law, and is stationed along the Atlantic and inland frontiers.

Of the naval force it has been necessary to maintain strong squadrons in the Mediterranean and in the Gulf of Mexico.

Our manufactories will require the continued attention of Congress. The capital employed in them is considerable, and the knowledge acquired in the machinery and fabric of all the most useful manufactures is of great value. Their preservation, which depends on due encouragement, is connected with the high interests of the nation.

Although the progress of the public buildings has been as favorable as circumstances have permitted, it is to be regretted that the Capitol is not yet in a state to receive you. There is good cause to presume that the two wings, the only parts as yet commenced, will be prepared for that purpose at the next session. The time seems now to have arrived when this subject may be deemed worthy the attention of Congress, on a scale adequate to national purposes. The completion of the middle building will be neces sary to the convenient accommodation of Congress, of the committees, and various offices belonging to it. It is evident that the other public buildings are altogether insufficient for the accommodation of the sevcral Executive Departments, some of whom are much crowded, and even subjected to the necessity of obtaining it in private buildings, at some distance from the head of the department, and with inconvenience to the management of the public business. Most nations have taken an interest and a pride in the improvement and ornament of their Metropolis, and none were more conspicuous in that respect than the ancient Republics. The policy which dictated the establishment of a permanent residence for the National Government, and the spirit in which it was commenced and has been prosecuted, show that such improvement was thought worthy the attention of this nation. Its central position, between the northern and southern extremes of our Union, and its approach to the West, at the head of a great navigable river, which interlocks with the Western waters, proves the wisdom of the councils which established it. Nothing appears to be more reasonable and

When we consider the vast extent of territory within the United States; the great amount and value of its productions; the connection of its parts, and other circumstances, on which their prosperity and happiness depend, we cannot fail to entertain a high sense of the advantage to be derived from the facility which may be afforded in the intercourse between them, by means of good roads and canals. Never did a country of such vast extent offer equal inducements to improvements of this kind, nor ever were consequences of such magnitude involved in them. As this subject was acted on by Congress at the last session, and there may be a disposition to revive it at the present, I have brought it into view for the purpose of communicating my sentiments on a very important circumstance connected with it, with that freedom and candor which a regard for the public interest and a proper respect for Congress require. A difference of opinion has existed from the first formation of our constitution to the present time, among our most enlightened and virtuous citizens, respecting the right of Congress to establish such a system of improvement. Taking into view the trust with which I am now honored, it would be improper, after what has passed, that this discussion should be revived, with an uncertainty of my opinion respecting the right. Disregarding early impressions, I have bestowed on the subject all the deliberation which its great importance and a just sense of my duty required, and the result is, a settled convic-proper, than that convenient accommodation should tion in my mind, that Congress do not possess the right. It is not contained in any of the specified powers granted to Congress; nor can I consider it incidental to, or a necessary mean, viewed on the most liberal scale, for carrying into effect any of the powers which are specifically granted. In communicating this result, I cannot resist the obligation which I feel, to suggest to Congress the propriety of

be provided, on a well-digested plan, for the heads of the several departments, and of the Attorney-General; and it is believed that the public ground in the city applied to those objects will be found amply sufficient. I submit this subject to the consideration of Congress, that such further provision may be made in it as to them may seem proper.

In contemplating the happy situation of the United

Hope, and ten per centum if imported from any other place.

The foreign cost of merchandise is, therefore, the basis of the ad valorem duties; and that cost must be ascertained, in order to ascertain the duties. This principle having been adopted, the provisions of the existing system for the collection of these duties were devised, in order to carry it into effect.

Where the duty is specific, the quantity of goods is ascertained by a public officer, by actual enumeration; weighing, gauging, or measuring, before the goods are delivered to the owner or consignee. Where the duty is on the value, the foreign cost is determined, for the purpose of charging the duty upon it in ordinary cases, by the owner of the goods, or by his consignee, or agent representing him. This is done by an entry of the goods at the customhouse, by the owner, consignee, or agent, who at the same time produces the invoice and bill of lading attending the importation. The entry and the invoice state the prices or cost of the goods, and the person making the entry swears that they are true. When this has been done, the goods are, in ordinary cases, without any farther investigation, concerning their value or cost, delivered to the owner or his agent; and the foreign cost, thus obtained, is the basis upon which the duties are computed.

From the slightest view it is apparent that this method of determining the cost of goods subject to duty on the value, is exceedingly liable to evasion, by untrue statements of the foreign cost upon which the duty is charged. The cost is determined, in most cases, merely by the person who is to pay the duty. The party required to pay the duty; the party whose profit or loss must always depend wholly, or in part, upon the amount of duty charged and paid on the goods; the party interested to reduce the duty as much as possible, is allowed to make his own statement of the cost: and this cost, so stated, is, in most cases, the sum upon which the duties are calculated and paid. Of all temptations to undervalue merchandise, it does not seem possible to devise one more direct and dangerous than to give to the party who is to state the value all the benefit of an undervaluation.

The provision that, when the collector shall suspect that the merchandise is not invoiced at the price usual at the place of exportation, he may require an appraisement, would also seem to promise a security against the fraud in question. This provision, though useful in practice, to some extent, is also believed to fall very far short of an adequate remedy. It is sufficient to prevent or correct the fraud of false invoices and entries, for many reasons.

Upon the whole of this part of the subject, it is conceived, that the power of the collector to require an appraisement, though it may operate, in some degree, to prevent great and flagrant undervaluations, is a very partial and ineffectual restraint upon the smaller undervaluations of

[DECEMBER, 1817.

five, ten, fifteen, twenty, twenty-five, thirty, forty, and fifty per centum less than the just value, or cost, of the goods. And there is no doubt that the frauds of this kind, from which the revenue suffers most, are false valuations of the latter class; in which the cost expressed in the invoice is less than the real cost by ten, fifteen, twenty, twenty-five, thirty, or forty per centum. It is in these cases that an actual appraisement seldom takes place. When, in these cases, an appraisement does take place, little or nothing is gained by it; and sometimes the value is reduced by the appraisement below the cost stated in the invoice.

The general result of these facts and views is as follows:

1. An invoice of the foreign cost is no security to the revenue.

2. The foreign cost is determined by the oath of the person who makes the entry, in all cases, excepting those inwhich there is an appraisement. 3. Where there is an appraisement, that proceeding is subject to abuses, greatly injurious to the revenue; which have been stated.

A very great part, perhaps about one-half, of all the articles subjected to duty on the value, which we import, are manufactures of wool and cotton. In these articles, in which the efforts of art and industry make great and very various additions to the value of the raw material, the fraud of false statements of the foreign cost is facilitated by the difference of fabrics and the variety of values. This fraud is accordingly practised in these articles to a great extent.

It is more particularly since the termination of the late war with Great Britain, that the practice of sending goods to the United States to be sold here, on account of the foreign owner, has been carried to a very great extent. The consignment is made to a person here, who, by whatever name he may be called, is, in truth and effect, a mere agent of the owner of the goods. A suitable person for this agency is sent or selected, who makes the entry, pays the duties, and disposes of the goods for the benefit of his principal. This is the history of many great importations which have been made within the last three years, and which have indeed paid duties to the Treasury, but have paid much less than they should have done. Immense quantities of goods, subject to ad valorem duties, are sent to this country by foreigners, to be entered at the custom-house and pay duties, for account of foreigners, and finally to be sold here, in the first instance, on account of foreigners. The course of proceeding is well understood. The consignee or agent is not supposed to commit his conscience or his character in producing the invoice and making the entry. The principal has only to take care not to grasp too much. If he will content himself with any deduction from the true value of the goods which is not palpably excessive, his invoice, in all probability, passes without objection. If an appraisement is required, the