The Senate and House of Representatives of the United States:

It would have been a source, fellow citizens, of much gratification if our
last communications from Europe had enabled me to inform you that the
belligerent nations, whose disregard of neutral rights has been so
destructive to our commerce, had become awakened to the duty and true
policy of revoking their unrighteous edicts. That no means might be omitted
to produce this salutary effect, I lost no time in availing myself of the
act authorizing a suspension, in whole or in part, of the several embargo
laws. Our ministers at London and Paris were instructed to explain to the
respective Governments there our disposition to exercise the authority in
such manner as would withdraw the pretext on which the aggressions were
originally founded and open the way for a renewal of that commercial
intercourse which it was alleged on all sides had been reluctantly
obstructed.

As each of those Governments had pledged its readiness to concur in
renouncing a measure which reached its adversary through the incontestable
rights of neutrals only, and as the measure had been assumed by each as a
retaliation for an asserted acquiescence in the aggression of the other, it
was reasonably expected that the occasion would have been seized by both
for evincing the sincerity of their professions, and for restoring to the
commerce of the United States its legitimate freedom. The instructions to
our ministers with respect to the different belligerents were necessarily
modified with a reference to their different circumstances, and to the
condition annexed by law to the Executive power of suspension, requiring a
decree of security to our commerce which would not result from a repeal of
the decrees of France. Instead of a pledge, therefore, of a suspension of
the embargo as to her in case of such a repeal, it was presumed that a
sufficient inducement might be found in other considerations, and
particularly in the change produced by a compliance with our just demands
by one belligerent and a refusal by the other in the relations between the
other and the United States.

To Great Britain, whose power on the ocean is so ascendant, it was deemed
not inconsistent with that condition to state explicitly that on her
rescinding her orders in relation to the United States their trade would be
opened with her, and remain shut to her enemy in case of his failure to
rescind his decrees also. From France no answer has been received, nor any
indication that the requisite change in her decrees is contemplated. The
favorable reception of the proposition to Great Britain was the less to be
doubted, as her orders of council had not only been referred for their
vindication to an acquiescence on the part of the United States no longer
to be pretended, but as the arrangement proposed, whilst it resisted the
illegal decrees of France, involved, moreover, substantially the precise
advantages professedly aimed at by the British orders. The arrangement has
nevertheless been rejected.

This candid and liberal experiment having thus failed, and no other event
having occurred on which a suspension of the embargo by the Executive was
authorized, it necessarily remains in the extent originally given to it. We
have the satisfaction, however, to reflect that in return for the
privations imposed by the measure, and which our fellow citizens in general
have borne with patriotism, it has had the important effects of saving our
mariners and our vast mercantile property, as well as of affording time for
prosecuting the defensive and provisional measures called for by the
occasion. It has demonstrated to foreign nations the moderation and
firmness which govern our councils, and to our citizens the necessity of
uniting in support of the laws and the rights of their country, and has
thus long frustrated those usurpations and spoliations which, if resisted,
involved war; if submitted to, sacrificed a vital principle of our national
independence.

Under a continuance of the belligerent measures which, in defiance of laws
which consecrate the rights of neutrals, overspread the ocean with danger,
it will rest with the wisdom of Congress to decide on the course best
adapted to such a state of things; and bringing with them, as they do, from
every part of the Union the sentiments of our constituents, my confidence
is strengthened that in forming this decision they will, with an unerring
regard to the essential rights and interests of the nation, weigh and
compare the painful alternatives out of which a choice is to be made. Nor
should I do justice to the virtues which on other occasions have marked the
character of our fellow citizens if I did not cherish an equal confidence
that the alternative chosen, whatever it may be, will be maintained with
all the fortitude and patriotism which the crisis ought to inspire.

The documents containing the correspondences on the subject of the foreign
edicts against our commerce, with the instructions given to our ministers
at London and Paris, are now laid before you.

The communications made to Congress at their last session explained the
posture in which the close of the discussions relating to the attack by a
British ship of war on the frigate Chesapeake left a subject on which the
nation had manifested so honorable a sensibility. Every view of what had
passed authorized a belief that immediate steps would be taken by the
British Government for redressing a wrong which the more it was
investigated appeared the more clearly to require what had not been
provided for in the special mission. It is found that no steps have been
taken for the purpose. On the contrary, it will be seen in the documents
laid before you that the inadmissible preliminary which obstructed the
adjustment is still adhered to, and, moreover, that it is now brought into
connection with the distinct and irrelative case of the orders in council.
The instructions which had been given to our minister at London with a view
to facilitate, if necessary, the reparation claimed by the United States
are included in the documents communicated.

Our relations with the other powers of Europe have undergone no material
changes since your last session. The important negotiations with Spain
which had been alternately suspended and resumed necessarily experience a
pause under the extraordinary and interesting crisis which distinguishes
her internal situation.

With the Barbary Powers we continue in harmony, with the exception of an
unjustifiable proceeding of the Dey of Algiers toward our consul to that
Regency. Its character and circumstances are now laid before you, and will
enable you to decide how far it may, either now or hereafter, call for any
measures not within the limits of the Executive authority.

With our Indian neighbors the public peace has been steadily maintained.
Some instances of individual wrong have, as at other times, taken place,
but in no wise implicating the will of the nation. Beyond the Mississippi
the Ioways, the Sacs and the Alabamas have delivered up for trial and
punishment individuals from among themselves accused of murdering citizens
of the United States. On this side of the Mississippi the Creeks are
exerting themselves to arrest offenders of the same kind, and the Choctaws
have manifested their readiness and desire for amicable and just
arrangements respecting depredations committed by disorderly persons of
their tribe. And, generally, from a conviction that we consider them as a
part of ourselves, and cherish with sincerity their rights and interests,
the attachment of the Indian tribes is gaining strength daily--is
extending from the nearer to the more remote, and will amply requite us for
the justice and friendship practiced toward them. Husbandry and household
manufacture are advancing among them more rapidly with the Southern than
Northern tribes, from circumstances of soil and climate, and one of the two
great divisions of the Cherokee Nation have now under consideration to
solicit the citizenship of the United States, and to be identified with us
in laws and government in such progressive manner as we shall think best.

In consequence of the appropriations of the last session of Congress for
the security of our sea port towns and harbors, such works of defense have
been erected as seemed to be called for by the situation of the several
places, their relative importance, and the scale of expense indicated by
the amount of the appropriation. These works will chiefly be finished in
the course of the present season, except at New York and New Orleans, where
most was to be done; and although a great proportion of the last
appropriation has been expended on the former place, yet some further views
will be submitted to Congress for rendering its security entirely adequate
against naval enterprise. A view of what has been done at the several
places, and of what is proposed to be done, shall be communicated as soon
as the several reports are received.

Of the gun boats authorized by the act of December last, it has been
thought necessary to build only one hundred and three in the present year.
These, with those before possessed, are sufficient for the harbors and
waters most exposed, and the residents will require little time for their
construction when it shall be deemed necessary.

Under the act of the last session for raising an additional military force
so many officers were immediately appointed as were necessary for carrying
on the business of recruiting, and in proportion as it advanced others have
been added. We have reason to believe their success has been satisfactory,
although such returns have not yet been received as enable me to present
you a statement of the numbers engaged.

I have not thought it necessary in the course of the last season to call
for any general detachments of militia or of volunteers under the laws
passed for that purpose. For the ensuing season, however, they will be
required to be in readiness should their service be wanted. Some small and
special detachments have been necessary to maintain the laws of embargo on
that portion of our northern frontier which offered peculiar facilities for
evasion, but these were replaced as soon as it could be done by bodies of
new recruits. By the aid of these and of the armed vessels called into
service in other quarters the spirit of disobedience and abuse, which
manifested itself early and with sensible effect while we were unprepared
to meet it, has been considerably repressed.

Considering the extraordinary character of the times in which we live, our
attention should unremittingly be fixed on the safety of our country. For a
people who are free, and who mean to remain so, a well organized and armed
militia is their best security. It is therefore incumbent on us at every
meeting to revise the condition of the militia, and to ask ourselves if it
is prepared to repel a powerful enemy at every point of our territories
exposed to invasion. Some of the States have paid a laudable attention to
this object, but every degree of neglect is to be found among others.
Congress alone having the power to produce an uniform state of preparation
in this great organ of defense, the interests which they so deeply feel in
their own and their country's security will present this as among the most
important objects of their deliberation.

Under the acts of March 11th and April 23rd respecting arms, the
difficulty of procuring them from abroad during the present situation
and dispositions of Europe induced us to direct our whole efforts to the
means of internal supply. The public factories have therefore been
enlarged, additional machineries erected, and, in proportion as
artificers can be found or formed, their effect, already more than
doubled, may be increased so as to keep pace with the yearly increase
of the militia. The annual sums appropriated by the latter have been
directed to the encouragement of private factories of arms, and contracts
have been entered into with individual undertakers to nearly the amount
of the first year's appropriation.

The suspension of our foreign commerce, produced by the injustice of the
belligerent powers and the consequent losses and sacrifices of our citizens
are subjects of just concern. The situation into which we have thus been
forced has impelled us to apply a portion of our industry and capital to
internal manufactures and improvements. The extent of this conversion is
daily increasing, and little doubt remains that the establishments formed
and forming will, under the auspices of cheaper materials and subsistence,
the freedom of labor from taxation with us, and of protecting duties and
prohibitions, become permanent. The commerce with the Indians, too, within
our own boundaries is likely to receive abundant aliment from the same
internal source, and will secure to them peace and the progress of
civilization, undisturbed by practices hostile to both.

The accounts of the receipts and expenditures during the year ending the
30th of September last being not yet made up, a correct statement will
hereafter be transmitted from the Treasury. In the mean time it is
ascertained that the receipts have amounted to near $18 millions, which,
with the $8.5 millions in the Treasury at the beginning of the year, have
enabled us, after meeting the current demands and interest incurred, to
pay $2.3 millions of the principal of our funded debt, and left us in
the Treasury on that day near $14 millions. Of these, $5.35 millions will
be necessary to pay what will be due on the 1st day of January next, which
will complete the reimbursement of the 8% stock. These payments, with
those made in the six and a half years preceding, will have extinguished
$33.58 millions of the principal of the funded debt, being the whole which
could be paid or purchased within the limits of the law and of our
contracts, and the amount of principal thus discharged will have liberated
the revenue from about $2 millions of interest and added that sum annually
to the disposable surplus.

The probable accumulation of the surpluses of revenue beyond what can be
applied to the payment of the public debt whenever the freedom and safety
of our commerce shall be restored merits the consideration of Congress.
Shall it lie unproductive in the public vaults? Shall the revenue be
reduced? Or shall it not rather be appropriated to the improvements of
roads, canals, rivers, education, and other great foundations of prosperity
and union under the powers which Congress may already possess or such
amendment to the Constitution as may be approved by the States? While
uncertain of the course of things, the time may be advantageously employed
in obtaining the powers necessary for a system of improvement, should that
be thought best.

Availing myself of this the last occasion which will occur of addressing
the two Houses of the Legislature at their meeting, I can not omit the
expression of my sincere gratitude for the repeated proofs of confidence
manifested to me by themselves and their predecessors since my call to the
administration and the many indulgences experienced at their hands. These
same grateful acknowledgements are due to my fellow citizens generally,
whose support has been my great encouragement under all embarrassments. In
the transaction of their business I can not have escaped error. It is
incident to our imperfect nature. But I may say with truth my errors have
been of the understanding, not of intention, and that the advancement of
their rights and interests has been the constant motive for every measure.
On these considerations I solicit their indulgence. Looking forward with
anxiety to future destinies, I trust that in their steady character,
unshaken by difficulties, in their love of liberty, obedience to law, and
support of the public authorities, I see a sure guaranty of the permanence
of our Republic; and, retiring from the charge of their affairs, I carry
with me the consolation of a firm persuasion that Heaven has in store for
our beloved country long ages to come of prosperity and happiness.

TH. JEFFERSON