Fellow-Citizens of the Senate and House of Representatives:

At the period of our last meeting I had the satisfaction of communicating
an adjustment with one of the principal belligerent nations, highly
important in itself, and still more so as presaging a more extended
accommodation. It is with deep concern I am now to inform you that the
favorable prospect has been over-clouded by a refusal of the British
Government to abide by the act of its minister plenipotentiary, and by its
ensuing policy toward the United States as seen through the communications
of the minister sent to replace him.

Whatever pleas may be urged for a disavowal of engagements formed by
diplomatic functionaries in cases where by the terms of the engagements a
mutual ratification is reserved, or where notice at the time may have been
given of a departure from instructions, or in extraordinary cases
essentially violating the principles of equity, a disavowal could not have
been apprehended in a case where no such notice or violation existed, where
no such ratification was reserved, and more especially where, as is now in
proof, an engagement to be executed without any such ratification was
contemplated by the instructions given, and where it had with good faith
been carried into immediate execution on the part of the United States.

These considerations not having restrained the British Government from
disavowing the arrangement by virtue of which its orders in council were to
be revoked, and the event authorizing the renewal of commercial intercourse
having thus not taken place, it necessarily became a question of equal
urgency and importance whether the act prohibiting that intercourse was not
to be considered as remaining in legal force. This question being, after
due deliberation, determined in the affirmative, a proclamation to that
effect was issued. It could not but happen, however, that a return to this
state of things from that which had followed an execution of the
arrangement by the United States would involve difficulties. With a view to
diminish these as much as possible, the instructions from the Secretary of
the Treasury now laid before you were transmitted to the collectors of the
several ports. If in permitting British vessels to depart without giving
bonds not to proceed to their own ports it should appear that the tenor of
legal authority has not been strictly pursued, it is to be ascribed to the
anxious desire which was felt that no individuals should be injured by so
unforeseen an occurrence; and I rely on the regard of Congress for the
equitable interests of our own citizens to adopt whatever further
provisions may be found requisite for a general remission of penalties
involuntarily incurred.

The recall of the disavowed minister having been followed by the
appointment of a successor, hopes were indulged that the new mission would
contribute to alleviate the disappointment which had been produced, and to
remove the causes which had so long embarrassed the good understanding of
the two nations. It could not be doubted that it would at least be charged
with conciliatory explanations of the step which had been taken and with
proposals to be substituted for the rejected arrangement.

Reasonable and universal as this expectation was, it also has not been
fulfilled. From the first official disclosures of the new minister it was
found that he had received no authority to enter into explanations relative
to either branch of the arrangement disavowed nor any authority to
substitute proposals as to that branch which concerned the British orders
in council, and, finally, that his proposals with regard to the other
branch, the attack on the frigate Chesapeake, were founded on a
presumption repeatedly declared to be inadmissible by the United States,
that the first step toward adjustment was due from them, the proposals
at the same time omitting even a reference to the officer answerable for
the murderous aggression, and asserting a claim not less contrary to the
British laws and British practice than to the principles and obligations
of the United States.

The correspondence between the Department of State and this minister will
show how unessentially the features presented in its commencement have been
varied in its progress. It will show also that, forgetting the respect due
to all governments, he did not refrain from imputations on this, which
required that no further communications should be received from him. The
necessity of this step will be made known to His Britannic Majesty through
the minister plenipotentiary of the United States in London; and it would
indicate a want of the confidence due to a Government which so well
understands and exacts what becomes foreign ministers near it not to infer
that the misconduct of its own representative will be viewed in the same
light in which it has been regarded here. The British Government will learn
at the same time that a ready attention will be given to communications
through any channel which may be substituted. It will be happy if the
change in this respect should be accompanied by a favorable revision of the
unfriendly policy which has been so long pursued toward the United States.

With France, the other belligerent, whose trespasses on our commercial
rights have long been the subject of our just remonstrances, the posture of
our relations does not correspond with the measures taken on the part of
the United States to effect a favorable change. The result of the several
communications made to her Government, in pursuance of the authorities
vested by Congress in the Executive, is contained in the correspondence of
our minister at Paris now laid before you.

By some of the other belligerents, although professing just and amicable
dispositions, injuries materially affecting our commerce have not been duly
controlled or repressed. In these cases the interpositions deemed proper on
our part have not been omitted. But it well deserves the consideration of
the Legislature how far both the safety and the honor of the American flag
may be consulted, by adequate provisions against that collusive
prostitution of it by individuals unworthy of the American name which has
so much flavored the real or pretended suspicions under which the honest
commerce of their fellow citizens has suffered.

In relation to the powers on the coast of Barbary, nothing has occurred
which is not of a nature rather to inspire confidence than distrust as to
the continuance of the existing amity. With our Indian neighbors, the just
and benevolent system continued toward them has also preserved peace, and
is more and more advancing habits favorable to their civilization and
happiness.

From a statement which will be made by the Secretary of War it will be seen
that the fortifications on our maritime frontier are in many of the ports
completed, affording the defense which was contemplated, and that a further
time will be required to render complete the works in the harbor of New
York and in some other places. By the enlargement of the works and the
employment of a greater number of hands at the public armories the supply
of small arms of an improving quality appears to be annually increasing at
a rate that, with those made on private contract, may be expected to go far
toward providing for the public exigency.

The act of Congress providing for the equipment of our vessels of war
having been fully carried into execution, I refer to the statement of the
Secretary of the Navy for the information which may be proper on that
subject. To that statement is added a view of the transfers of
appropriations authorized by the act of the session preceding the last and
of the grounds on which the transfers were made.

Whatever may be the course of your deliberations on the subject of our
military establishments, I should fail in my duty in not recommending to
your serious attention the importance of giving to our militia, the great
bulwark of our security and resource of our power, an organization best
adapted to eventual situations for which the United States ought to be
prepared.

The sums which had been previously accumulated in the Treasury, together
with the receipts during the year ending on the 30th of September last (and
amounting to more than $9 millions), have enabled us to fulfill all our
engagements and to defray the current expenses of Government without
recurring to any loan. But the insecurity of our commerce and the
consequent diminution of the public revenue will probably produce a
deficiency in the receipts of the ensuing year, for which and for other
details I refer to the statements which will be transmitted from the
Treasury.

In the state which has been presented of our affairs with the great parties
to a disastrous and protracted war, carried on in a mode equally injurious
and unjust to the United States as a neutral nation, the wisdom of the
National Legislature will be again summoned to the important decision on
the alternatives before them. That these will be met in a spirit worthy the
councils of a nation conscious both of its rectitude and of its rights, and
careful as well of its honor as of its peace, I have an entire confidence;
and that the result will be stamped by a unanimity becoming the occasion,
and be supported by every portion of our citizens with a patriotism
enlightened and invigorated by experience, ought as little to be doubted.

In the midst of the wrongs and vexations experienced from external causes
there is much room for congratulation on the prosperity and happiness
flowing from our situation at home. The blessing of health has never been
more universal. The fruits of the seasons, though in particular articles
and districts short of their usual redundancy, are more than sufficient for
our wants and our comforts. The face of our country ever presents evidence
of laudable enterprise, of extensive capital, and of durable improvement.
In a cultivation of the materials and the extension of useful manufactures,
more especially in the general application to household fabrics, we behold
a rapid diminution of our dependence on foreign supplies. Nor is it
unworthy of reflection that this revolution in our pursuits and habits is
in no slight degree a consequence of those impolitic and arbitrary edicts
by which the contending nations, in endeavoring each of them to obstruct
our trade with the other, have so far abridged our means of procuring the
productions and manufactures of which our own are now taking the place.

Recollecting always that for every advantage which may contribute to
distinguish our lot from that to which others are doomed by the unhappy
spirit of the times we are indebted to that Divine Providence whose
goodness has been so remarkably extended to this rising nation, it becomes
us to cherish a devout gratitude, and to implore from the same omnipotent
source a blessing on the consultations and measures about to be undertaken
for the welfare of our beloved country.