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President[ James Madison

         Date[ December 3, 1816

Fellow-Citizens of the Senate and House of Representatives:

In reviewing the present state of our country, our attention cannot be

withheld from the effect produced by peculiar seasons which have very

generally impaired the annual gifts of the earth and threatened scarcity in

particular districts. Such, however, is the variety of soils, of climates,

and of products within our extensive limits that the aggregate resources

for subsistence are more than sufficient for the aggregate wants. And as

far as an economy of consumption, more than usual, may be necessary, our

thankfulness is due to Providence for what is far more than a compensation,

in the remarkable health which has distinguished the present year.

Amidst the advantages which have succeeded the peace of Europe, and that of

the United States with Great Britain, in a general invigoration of industry

among us and in the extension of our commerce, the value of which is more

and more disclosing itself to commercial nations, it is to be regretted

that a depression is experienced by particular branches of our manufactures

and by a portion of our navigation. As the first proceeds in an essential

degree from an excess of imported merchandise, which carries a check in its

own tendency, the cause in its present extent can not be very long in

duration. The evil will not, however, be viewed by Congress without a

recollection that manufacturing establishments, if suffered to sink too low

or languish too long, may not revive after the causes shall have ceased,

and that in the vicissitudes of human affairs situations may recur in which

a dependence on foreign sources for indispensable supplies may be among the

most serious embarrassments.

The depressed state of our navigation is to be ascribed in a material

degree to its exclusion from the colonial ports of the nation most

extensively connected with us in commerce, and from the indirect operation

of that exclusion.

Previous to the late convention at London between the United States and

Great Britain the relative state of the navigation laws of the two

countries, growing out of the treaty of 1794, had given to the British

navigation a material advantage over the American in the intercourse

between the American ports and British ports in Europe. The convention of

London equalized the laws of the two countries relating to those ports,

leaving the intercourse between our ports and the ports of the British

colonies subject, as before, to the respective regulations of the parties.

The British Government enforcing now regulations which prohibit a trade

between its colonies and the United States in American vessels, whilst they

permit a trade in British vessels, the American navigation loses

accordingly, and the loss is augmented by the advantage which is given to

the British competition over the American in the navigation between our

ports and British ports in Europe by the circuitous voyages enjoyed by the

one and not enjoyed by the other.

The reasonableness of the rule of reciprocity applied to one branch of the

commercial intercourse has been pressed on our part as equally applicable

to both branches; but it is ascertained that the British cabinet declines

all negotiation on the subject, with a disavowal, however, of any

disposition to view in an unfriendly light whatever countervailing

regulations the United States may oppose to the regulations of which they

complain. The wisdom of the Legislature will decide on the course which,

under these circumstances, is prescribed by a joint regard to the amicable

relations between the two nations and to the just interests of the United

States.

I have the satisfaction to state, generally, that we remain in amity with

foreign powers.

An occurrence has indeed taken place in the Gulf of Mexico which, if

sanctioned by the Spanish Government, may make an exception as to that

power. According to the report of our naval commander on that station, one

of our public armed vessels was attacked by an over-powering force under a

Spanish commander, and the American flag, with the officers and crew,

insulted in a manner calling for prompt reparation. This has been demanded.

In the mean time a frigate and a smaller vessel of war have been ordered

into that Gulf for the protection of our commerce. It would be improper to

omit that the representative of His Catholic Majesty in the United States

lost no time in giving the strongest assurances that no hostile order could

have emanated from his Government, and that it will be as ready to do as to

expect whatever the nature of the case and the friendly relations of the

two countries shall be found to require.

The posture of our affairs with Algiers at the present moment is not known.

The Dey, drawing pretexts from circumstances for which the United States

were not answerable, addressed a letter to this Government declaring the

treaty last concluded with him to have been annulled by our violation of

it, and presenting as the alternative war or a renewal of the former

treaty, which stipulated, among other things, an annual tribute. The

answer, with an explicit declaration that the United States preferred war

to tribute, required his recognition and observance of the treaty last

made, which abolishes tribute and the slavery of our captured citizens. The

result of the answer has not been received. Should he renew his warfare on

our commerce, we rely on the protection it will find in our naval force

actually in the Mediterranean.

With the other Barbary States our affairs have undergone no change.

The Indian tribes within our limits appear also disposed to remain at

peace. From several of them purchases of lands have been made particularly

favorable to the wishes and security of our frontier settlements, as well

as to the general interests of the nation. In some instances the titles,

though not supported by due proof, and clashing those of one tribe with the

claims of another, have been extinguished by double purchases, the

benevolent policy of the United States preferring the augmented expense to

the hazard of doing injustice or to the enforcement of justice against a

feeble and untutored people by means involving or threatening an effusion

of blood.

I am happy to add that the tranquillity which has been restored among the

tribes themselves, as well as between them and our own population, will

favor the resumption of the work of civilization which had made an

encouraging progress among some tribes, and that the facility is increasing

for extending that divided and individual ownership, which exists now in

movable property only, to the soil itself, and of thus establishing in the

culture and improvement of it the true foundation for a transit from the

habits of the savage to the arts and comforts of social life.

As a subject of the highest importance to the national welfare, I must

again earnestly recommend to the consideration of Congress a reorganization

of the militia on a plan which will form it into classes according to the

periods of life more or less adapted to military services. An efficient

militia is authorized and contemplated by the Constitution and required by

the spirit and safety of free government. The present organization of our

militia is universally regarded as less efficient than it ought to be made,

and no organization can be better calculated to give to it its due force

than a classification which will assign the foremost place in the defense

of the country to that portion of its citizens whose activity and animation

best enable them to rally to its standard. Besides the consideration that a

time of peace is the time when the change can be made with most convenience

and equity, it will now be aided by the experience of a recent war in which

the militia bore so interesting a part.

Congress will call to mind that no adequate provision has yet been made for

the uniformity of weights and measures also contemplated by the

Constitution. The great utility of a standard fixed in its nature and

founded on the easy rule of decimal proportions is sufficiently obvious. It

led the Government at an early stage to preparatory steps for introducing

it, and a completion of the work will be a just title to the public

gratitude.

The importance which I have attached to the establishment of a university

within this District on a scale and for objects worthy of the American

nation induces me to renew my recommendation of it to the favorable

consideration of Congress. And I particularly invite again their attention

to the expediency of exercising their existing powers, and, where

necessary, of resorting to the prescribed mode of enlarging them, in order

to effectuate a comprehensive system of roads and canals, such as will have

the effect of drawing more closely together every part of our country by

promoting intercourse and improvements and by increasing the share of every

part in the common stock of national prosperity.

Occurrences having taken place which shew that the statutory provisions for

the dispensation of criminal justice are deficient in relation both to

places and to persons under the exclusive cognizance of the national

authority, an amendment of the law embracing such cases will merit the

earliest attention of the Legislature. It will be a seasonable occasion

also for inquiring how far legislative interposition may be further

requisite in providing penalties for offenses designated in the

Constitution or in the statutes, and to which either no penalties are

annexed or none with sufficient certainty. And I submit to the wisdom of

Congress whether a more enlarged revisal of the criminal code be not

expedient for the purpose of mitigating in certain cases penalties which

were adopted into it antecedent to experiment and examples which justify

and recommend a more lenient policy.

The United States, having been the first to abolish within the extent of

their authority the transportation of the natives of Africa into slavery,

by prohibiting the introduction of slaves and by punishing their citizens

participating in the traffic, can not but be gratified at the progress made

by concurrent efforts of other nations toward a general suppression of so

great an evil. They must feel at the same time the greater solicitude to

give the fullest efficacy to their own regulations. With that view, the

interposition of Congress appears to be required by the violations and

evasions which it is suggested are chargeable on unworthy citizens who

mingle in the slave trade under foreign flags and with foreign ports, and

by collusive importations of slaves into the United States through

adjoining ports and territories. I present the subject to Congress with a

full assurance of their disposition to apply all the remedy which can be

afforded by an amendment of the law. The regulations which were intended to

guard against abuses of a kindred character in the trade between the

several States ought also to be rendered more effectual for their humane

object.

To these recommendations I add, for the consideration of Congress, the

expediency of a remodification of the judiciary establishment, and of an

additional department in the executive branch of the Government.

The first is called for by the accruing business which necessarily swells

the duties of the Federal courts, and by the great and widening space

within which justice is to be dispensed by them. The time seems to have

arrived which claims for members of the Supreme Court a relief from

itinerary fatigues, incompatible as well with the age which a portion of

them will always have attained as with the researches and preparations

which are due to their stations and to the juridical reputation of their

country. And considerations equally cogent require a more convenient

organization of the subordinate tribunals, which may be accomplished

without an objectionable increase of the number or expense of the judges.

The extent and variety of executive business also accumulating with the

progress of our country and its growing population call for an additional

department, to be charged with duties now over-burdening other departments

and with such as have not been annexed to any department.

The course of experience recommends, as another improvement in the

executive establishment, that the provision for the station of

Attorney-General, whose residence at the seat of Government, official

connections with it, and the management of the public business before the

judiciary preclude an extensive participation in professional emoluments,

be made more adequate to his services and his relinquishments, and that,

with a view to his reasonable accommodation and to a proper depository of

his official opinions and proceedings, there be included in the provision

the usual appurtenances to a public office.

In directing the legislative attention to the state of the finances it is a

subject of great gratification to find that even within the short period

which has elapsed since the return of peace the revenue has far exceeded

all the current demands upon the Treasury, and that under any probable

diminution of its future annual products which the vicissitudes of commerce

may occasion it will afford an ample fund for the effectual and early

extinguishment of the public debt. It has been estimated that during the

year 1816 the actual receipts of revenue at the Treasury, including the

balance at the commencement of the year, and excluding the proceeds of

loans and Treasury notes, will amount to about the sum of $47 millions;

that during the same year the actual payments at the Treasury, including

the payment of the arrearages of the War Department as well as the payment

of a considerable excess beyond the annual appropriations, will amount to

about the sum of $38 millions, and that consequently at the close of the

year there will be a surplus in the Treasury of about the sum of $9

millions.

The operations of the Treasury continued to be obstructed by difficulties

arising from the condition of the national currency, but they have

nevertheless been effectual to a beneficial extent in the reduction of the

public debt and the establishment of the public credit. The floating debt

of Treasury notes and temporary loans will soon be entirely discharged. The

aggregate of the funded debt, composed of debts incurred during the wars of

1776 and 1812, has been estimated with reference to the first of January

next at a sum not exceeding $110 millions. The ordinary annual expenses of

the Government for the maintenance of all its institutions, civil,

military, and naval, have been estimated at a sum greater than $20

millions, and the permanent revenue to be derived from all the existing

sources has been estimated at a sum of $25 millions.

Upon this general view of the subject it is obvious that there is only

wanting to the fiscal prosperity of the Government the restoration of an

uniform medium of exchange. The resources and the faith of the nation,

displayed in the system which Congress has established, insure respect and

confidence both at home and abroad. The local accumulations of the revenue

have already enabled the Treasury to meet the public engagements in the

local currency of most of the States, and it is expected that the same

cause will produce the same effect throughout the Union; but for the

interests of the community at large, as well as for the purposes of the

Treasury, it is essential that the nation should possess a currency of

equal value, credit, and use wherever it may circulate. The Constitution

has intrusted Congress exclusively with the power of creating and

regulating a currency of that description, and the measures which were

taken during the last session in execution of the power give every promise

of success. The Bank of the United States has been organized under auspices

the most favorable, and can not fail to be an important auxiliary to those

measures.

For a more enlarged view of the public finances, with a view of the

measures pursued by the Treasury Department previous to the resignation of

the late Secretary, I transmit an extract from the last report of that

officer. Congress will perceive in it ample proofs of the solid foundation

on which the financial prosperity of the nation rests, and will do justice

to the distinguished ability and successful exertions with which the duties

of the Department were executed during a period remarkable for its

difficulties and its peculiar perplexities.

The period of my retiring from the public service being at little distance,

I shall find no occasion more proper than the present for expressing to my

fellow citizens my deep sense of the continued confidence and kind support

which I have received from them. My grateful recollection of these

distinguished marks of their favorable regard can never cease, and with the

consciousness that, if I have not served my country with greater ability, I

have served it with a sincere devotion will accompany me as a source of

unfailing gratification.

Happily, I shall carry with me from the public theater other sources, which

those who love their country most will best appreciate. I shall behold it

blessed with tranquillity and prosperity at home and with peace and respect

abroad. I can indulge the proud reflection that the American people have

reached in safety and success their 40th year as an independent nation;

that for nearly an entire generation they have had experience of their

present Constitution, the off-spring of their undisturbed deliberations and

of their free choice; that they have found it to bear the trials of adverse

as well as prosperous circumstances; to contain in its combination of the

federate and elective principles a reconcilement of public strength with

individual liberty, of national power for the defense of national rights

with a security against wars of injustice, of ambition, and vain-glory in

the fundamental provision which subjects all questions of war to the will

of the nation itself, which is to pay its costs and feel its calamities.

Nor is it less a peculiar felicity of this Constitution, so dear to us all,

that it is found to be capable, without losing its vital energies, of

expanding itself over a spacious territory with the increase and expansion

of the community for whose benefit it was established.

And may I not be allowed to add to this gratifying spectacle that I shall

read in the character of the American people, in their devotion to true

liberty and to the Constitution which is its palladium, sure presages that

the destined career of my country will exhibit a Government pursuing the

public good as its sole object, and regulating its means by the great

principles consecrated in its charter and by those moral principles to

which they are so well allied; a Government which watches over the purity

of elections, the freedom of speech and of the press, the trial by jury,

and the equal interdict against encroachments and compacts between religion

and the state; which maintains inviolably the maxims of public faith, the

security of persons and property, and encourages in every authorized mode

the general diffusion of knowledge which guarantees to public liberty its

permanency and to those who possess the blessing the true enjoyment of it;

a Government which avoids intrusions on the internal repose of other

nations, and repels them from its own; which does justice to all nations

with a readiness equal to the firmness with which it requires justice from

them; and which, whilst it refines its domestic code from every ingredient

not congenial with the precepts of an enlightened age and the sentiments of

a virtuous people, seeks by appeals to reason and by its liberal examples

to infuse into the law which governs the civilized world a spirit which may

diminish the frequency or circumscribe the calamities of war, and meliorate

the social and beneficent relations of peace; a Government, in a word,

whose conduct within and without may bespeak the most noble of ambitions--

that of promoting peace on earth and good will to man.

These contemplations, sweetening the remnant of my days, will animate my

prayers for the happiness of my beloved country, and a perpetuity of the

institutions under which it is enjoyed.

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