ation of the convention of 24th June, 1822, with that nation, in a state of gradual and progressive improvement. Convinced by all our experience, no less than by the principles of fair and liberal reciprocity which the United States have constantly tendered to all the nations of the earth, as the rule of commercial intercourse which they would universally prefer, that fair and equal competition is most conducive to the interests of both parties, the United States, in the negotiation of that convention, earnestly contended for a mutual renunciation of discriminating duties and charges in the ports of the two countries. Unable to obtain the immediate recognition of this principle in its full extent, after reducing the duties of discrimination so far as was found attainable, it was agreed that, at the expiration of two years from the first of October, 1822, when the convention was to go into effect, unless a notice of six months on either side should be given to the other, that the convention itself must terminate, those duties should be reduced by one fourth, and that this reduction should be yearly repeated until all discrimination should cease while the convention itself should continue in force. By the effect of this stipulation, three fourths of the discriminating duties which had been levied by each party, upon the vessels of the other in its ports, have already been removed; and on the first of next October, should the convention be still in force, the remaining fourth will be discontinued. French vessels, laden with French produce, will be received in our ports on the same terms as our own; and ours, in return, will enjoy the same advantages in the ports of France.

By these approximations to an equality of duties and of charges, not only has the commerce between the two countries prospered, but friendly dispositions have been on both sides encouraged and promoted. They will continue to be cherished and cultivated on the part of the United States. It would have been gratifying to have had it in my power to add, that the claims upon the justice of the French government, involving the property and the comfortable subsistence of many of our fellow-citizens, and which have been so long and so earnestly urged, were in a more promising train of adjustment than at your last meeting; but their condition remains unaltered.

With the government of the Netherlands, the mutual abandonment of discriminating duties had been regulated by the legislative acts on both sides. The act of Congress of the 20th of April, 1818, abolished all discriminating duties of impost and tonnage, upon the vessels and produce of the Netherlands in the ports of the United States, upon the assurance given by the government of the Netherlands, that all such duties operating against the shipping and commerce of the United States in that kingdom had been abolished. These reciprocal regulations had continued in force several years, when the discriminating principle was resumed by the Netherlands in a new and indirect form, by a bounty of ten per cent., in the shape of a return of duties to their national vessels, and in which those of the United States are not permitted to participate. By the act of Congress of the 7th of January, 1824, all discriminating duties in the United States were again suspended, so far as related to the vessels and produce of the Netherlands, so long as the reciprocal exemption should be extended to the vessels and produce of the United States in the Netherlands. But the same act provides that, in the event of a restoration of discriminating duties to operate against the shipping and commerce of the United States in any of the foreign countries referred to therein, the suspension of discriminating duties in favor of the navigation of such foreign country should

cease, and all the provisions of the acts imposing discriminating foreign tonnage and import duties in the United States should revive and be in full force with regard to that nation.

In the correspondence with the government of the Netherlands upon this subject, they have contended that the favor shown to their own shipping by this bounty upon their tonnage is not to be considered as a discriminatory duty. But it can not be denied that it produces all the same effects. Had the mutual abolition been stipulated by treaty, such a bounty upon the national vessels could scarcely have been granted consistently with good faith. Yet, as the act of Congress of 7th January, 1824, has not expressly authorized the executive authority to determine what shall be considered as a revival of discriminating duties by a foreign government to the disadvantage of the United States, and as the retaliatory measure on our part, however just and necessary, may tend rather to that conflict of legislation which we deprecate, than to that concert to which we invite all commercial nations as most conducive to their interest and our own, I have thought it more consistent with the spirit of our institutions to refer the subject again to the paramount authority of the legislature to decide what measure the emergency may require, than abruptly by proclamation to carry into effect the minatory provision of the act of 1824.

During the last session of Congress, treaties of amity, navigation, and commerce, were negotiated and signed at this place with the government of Denmark in Europe, and with the federation of Central America in this hemisphere. These treaties then received the constitutional sanction of the senate, by the advice and consent to their ratification. They were accordingly ratified on the part of the United States, and during the recess of Congress, have been also ratified by the other respective contracting parties. The ratifications have been exchanged, and they have been published by proclamations, copies of which are herewith communicated to Congress. These treaties have established between the contracting parties the principles of equality and reciprocity in their broadest and most liberal extent. Each party admitting the vessels of the other into its ports, laden with cargoes the produce or manufacture of any quarter of the globe, upon the payment of the same duties of tonnage and impost that are chargeable upon their own. They have further stipulated, that the parties shall hereafter grant no favor of navigation or commerce to any other nation, which shall not, upon the same terms be granted to each other; and that neither party will impose upon articles of merchandise, the produce or manufacture of the other, any other or higher duties than upon the like articles, being the produce or manufacture of any other country. To these principles there is, in the convention with Denmark, an exception with regard to the colonies of that kingdom in the Arctic seas, but none with regard to her colonies in the West Indies.

In the course of the last summer, the term to which our last commercial treaty with Sweden was limited has expired. A continuation of it is in the contemplation of the Swedish government, and is believed to be desirable on the part of the United States. It has been proposed by the king of Sweden that, pending the negotiation of renewal, the expired treaty should be mutually considered as still in force; a measure which will require the sanction of Congress to be carried into effect on our part, and which I therefore recommend to your consideration.

With Prussia, Spain, Portugal, and in general all the European powers, between whom and the United States relations of friendly intercourse have

existed, their condition has not materially varied since the last session of Congress. I regret not to be able to say the same of our commercial intercourse with the colonial possessions of Great Britain in America. Negotiations of the highest importance to our common interests have been for several years in discussion between the two governments, and on the part of the United States have been invariably pursued in the spirit of candor and conciliation. Interests of great magnitude and delicacy had been adjusted by the conventions of 1815 and 1818, while that of 1822, mediated by the late emperor Alexander, had promised a satisfactory compromise of claims which the government of the United States, in justice to the rights of a numerous class of their citizens, was bound to sustain. But with regard to the commercial intercourse between the United States and the British colonies in America, it has been hitherto found impracticable to bring the parties to an understanding satisfactory to both. The relative geographical position, and the respective products of nature, cultivated by human industry, had constituted the elements of a commercial intercourse between the United States and British America, insular and continental, important to the inhabitants of both countries. But it had been interdicted by Great Britain, upon a principle heretofore practised upon by the colonizing nations of Europe, of holding the trade of their colonies, each in exclusive monopoly to herself. After the termination of the late war, this interdiction had been revived, and the British government declined including this portion of our intercourse with her possessions in the negotiation of the convention of 1815 The trade was then carried on exclusively in British vessels, till the act of Congress concerning navigation, of 1818, and the supplemental act of 1820, met the interdict by a corresponding measure on the part of the United States. These measures, not of retaliation, but of necessary self-defence, were soon succeeded by an act of parliament, opening certain colonial ports to the vessels of the United States, coming directly from them, and to the importation from them of certain articles of our produce, burdened with heavy duties, and excluding some of the most valuable articles of our exports. The United States opened their ports to British vessels from the colonies upon terms as exactly corresponding with those of the act of parliament, as in the relative position of the parties could be made. And a negotiation was commenced by mutual consent, with the hope on our part that a reciprocal spirit of accommodation and a common sentiment of the importance of the trade to the interests of the inhabitants of the two countries, between whom it must be carried on, would ultimately bring the parties to a compromise, with which both might be satisfied. With this view, the government of the United States had determined to sacrifice something of that entire reciprocity which in all commercial arrangements with foreign powers they are entitled to demand, and to acquiesce in some inequalities disadvantageous to ourselves, rather than to forego the benefit of a final and permanent adjustment of this interest, to the satisfaction of Great Britain herself. The negotiation, repeatedly suspended by accidental circumstances, was, however, by mutual agreement and express assent, considered as pending, and to be speedily resumed. In the meantime, another act of parliament, so doubtful and ambiguous in its import as to have been misunderstood by the officers in the colonies who were to carry it into execution, opens again certain colonial ports, upon new conditions and terms, with a threat to close them against any nation which may not accept those terms, as prescribed by the British government. This act, passed in July. 1825, not communicated to the government of the United States, not under

stood by the British officers of the customs in the colonies where it was to be enforced, was nevertheless submitted to the consideration of Congress at their last session. With the knowledge that a negotiation upon the subject had long been in progress, and pledges given of its resumption at an early day, it was deemed expedient to await the result of that negotiation, rather than to subscribe implicitly to terms, the import of which was not clear, and which the British authorities themselves in this hemisphere were not prepared to explain.

Immediately after the close of the last session of Congress, one of our most distinguished citizens was despatched as envoy extraordinary and minister plenipotentiary to Great Britain, furnished with instructions which we could not doubt would lead to a conclusion of this long-controverted interest, upon terms acceptable to Great Britain. Upon his arrival, and before he had delivered his letters of credence, he was met by an order of the British council, excluding, from and after the first of December now current, the vessels of the United States from all the colonial British ports, excepting those immediately bordering upon our territories. In answer to his expostulations upon a measure thus unexpected, he is informed that, according to the ancient maxims of policy of European nations having colonies, their trade is an exclusive possession of the mother-country. That all participation in it by other nations is a boon or favor not forming a subject of negotiation, but to be regulated by the legislative acts of the power owning the colony. That the British government, therefore, declines negotiating concerning it, and that as the United States did not forthwith accept, purely and simply, the terms offered by the act of parliament of July, 1825, Great Britain would not admit the vessels of the United States even upon the terms on which she had opened them to the navigation of other nations. We have been accustomed to consider the trade which we have enjoyed with the British colonies rather as an interchange of mutual benefits than as a mere favor received; that under every circumstance we have given an ample equivalent. We have seen every other nation holding colonies negotiate with other nations, and grant them freely admission to the colonies by treaty; and, so far are the other colonizing nations of Europe now from refusing to negotiate for trade with their colonies, that we ourselves have secured access to the colonies of more than one of them by treaty. The refusal, however, of Great Britain to negotiate, leaves to the United States no other alternative than that of regulating, or interdicting altogether the trade on their part, according as either measure may affect the interests of our own country; and, with that exclusive object, I would recommend the whole subject to your calm and candid deliberations.

It is hoped that our unavailing exertions to accomplish a cordial good understanding on this interest will not have an unpropitious effect upon the other great topics of discussion between the two governments. Our northeastern and northwestern boundaries are still unadjusted. The commissioners under the 7th article of the treaty of Ghent have nearly come to the close of their labors; nor can we renounce the expectation, enfeebled as it is, that they may agree upon their report to the satisfaction or acquiescence of both parties. The commission for liquidating the claims for indennity for slaves carried away after the close of the war has been sitting, with doubtful prospects of success. Propositions of compromise have, however, passed between the two governments, the result of which we flatter ourselves may yet prove satisfactory. Our own dispositions and purposes toward Great Britain are all friendly and conciliatory; nor can we aban

don, but with strong reluctance, the belief that they will ultimately meet a return, not of favors, which we neither ask nor desire, but of equal reciprocity and good will.

With the American governments of this hemisphere we continue to maintain an intercourse altogether friendly, and between their nations and ours that commercial interchange of which mutual benefit is the source, and mutual comfort and harmony the result, is in a continual state of improvement. The war between Spain and them, since the total expulsion of the Spanish military force from their continental territories, has been little more than nominal; and their internal tranquillity, though occasionally menaced by the agitations which civil wars never fail to leave behind them, has not been affected by any serious calamity.

The congress of ministers from several of those nations which assembled at Panama, after a short session there, adjourned to meet again, at a more favorable season, in the neighborhood of Mexico. The decease of one of our ministers on his way to the isthmus, and the impediments of the season, which delayed the departure of the other, deprived us of the advantage of being represented at the first meeting of the congress. There is, however, no reason to believe that any of the transactions of the congress were of a nature to affect injuriously the interests of the United States, or to require the interposition of our ministers had they been present. Their absence has, indeed, deprived us of the opportunity of possessing precise and authentic information of the treaties which were concluded at Panama; and the whole result has confirmed me in the conviction of the expediency to the United States of being represented at the congress. The surviving member of the mission, appointed during your last session, has accordingly proceeded to his destination, and a successor to his distinguished and lamented associate will be nominated to the senate. A treaty of amity, navigation, and commerce, has, in the course of last summer, been concluded by our minister plenipotentiary at Mexico, with the United States and that confederacy, which will also be laid before the senate for their advice with regard to its ratification.

In adverting to the present condition of our fiscal concerns, and to the prospects of our revenue, the first remark that calls our attention is, that they are less exuberantly prosperous than they were at the corresponding period of the last year. The severe shock so extensively sustained by the commercial and manufacturing interests in Great Britain has not been without a perceptible recoil upon ourselves. A reduced importation from abroad is necessarily succeeded by a reduced return to the treasury at home. The net revenue of the present year will not equal that of the last. And the receipts of that which is to come will fall short of those in the current year. The diminution, however, is in part attributable to the flourishing condition of some of our domestic manufactures, and so far is compensated by an equivalent more profitable to the nation. It is also highly gratifying to perceive, that the deficiency in the revenue, while it scarcely exceeds the anticipations of the last year's estimates from the treasury, has not interrupted the application of more than eleven millions during the present year, to the discharge of the principal and interest of the debt, nor the reduction of upward of seven millions of the capital debt itself. The balance in the treasury on the 1st of January last, was five millions two hundred and one thousand six hundred and fifty dollars, forty-three cents. The receipts from that time to the 30th September last, were nineteen millions five hundred and eighty-five thousand nine hundred and thirty-two dollars, fifty cents.

The