whether it may not be advisable to revise the laws, with a view to this desirable result.

"It is submitted, also, whether it may not be advisable to designate, by law, the several ports or places along the coast at which, only, foreign ships of war and privateers may be admitted. The difficulty of sustaining the regulations of our commerce, and of other important interests from abuse, without such designation, furnishes a strong motive for this

measure.

"At the time of the negotiation for the renewal of the commercial convention between the United States and Great Britain, a hope had been entertained that an article might have been agreed upon, mutually satisfactory to both countries, regulating upon principles of justice and reciprocity, the commercial intercourse between the United States and the British possessions, as well in the West Indies as upon the continent of North America. The plenipotentiaries of the two governments, not having been able to come to an agreement on this important interest, those of the United States reserved for the consideration of this government, the proposals which had been presented to them as the ultimate offer on the part of the British government, and which they were not authorized to accept. On their transmission here, they were examined with due deliberation, the result of which was, a new effort to meet the views of the British government. The minister of the United States was instructed to make a further proposal, which has not been accepted. It was, however, declined in an amicable man

ner. I recommend to the consideration of Congress, whether further prohibitory provisions, in the laws relating to this intercourse, may not be expedient. It is seen with interest, that although it has not been practicable, as yet, to agree in any arrangement of this important branch of their commerce, such is the disposition of the parties, that each will view any regulations, which the other may make respecting it, in the most friendly light.

"By the 5th article of the convention, concluded on the 20th October, 1818, it was stipulated that the difference which had arisen between the two governments, with regard to the true intent and meaning of the 5th article of the treaty of Ghent, in relation to the carrying away, by British officers, of slaves from the United States, after the exchange of the ratification of the treaty of peace, should be referred to the decision of some friendly sovereign or state, to be named for that purpose. The minister of the United States has been instructed to name to the British government a foreign sovereign, the common friend to both parties, for the decision of this question. The answer of that government to the proposal, when received, will indicate the further measures to be pursued on the part of the United States.

"Although the pecuniary embarrassments which affected the various parts of the union during the latter part of the preceding year, have, during the present, been considerably augmented, and still continue to exist, the receipts into the treasury, to the

30th of September last, have amounted to 15,000,000 dollars. After defraying the current expenses of the government, including the interest and reimbursement of the public debt, payable to that period, amounting to 18,200,000, there remained in the treasury on that day more than 2,500,000 dollars, which, with the sums receivable during the remainder of the year, will exceed the current demands upon the treasury for the same period.

"The causes which have tended to diminish the public receipts, could not fail to have a corresponding effect upon the

revenue which has accrued upon imposts and tonnage, during the three first quarters of the preceding year. It is, however, ascertained that the duties which have been secured during that period, exceed 18,000,000, and those of the whole year will probably amount to 23,000,000.

"For the probable receipts of the next year, I refer you to the statements which will be transmitted from the treasury, which will enable you to judge whether further provisions be

necessary.

"The great reduction in the price of the principal articles of domestic growth, which has occurred during the present year, and the consequent fall in the price of labour, apparently so favourable to the success of domestic manufactures, have not shielded them against other causes averse to their prosperity. The pecuniary embarrassments which have so deeply affected the commercial interests of the nation, have been no less adverse to our manufacturing es

tablishments, in several sections of the union.

"The great reduction of the been constrained to make, in currency which the banks have order to continue specie pay

ments, and the vitiated character of it where such reductions have not been attempted, instead of placing within the reach of these establishments, the pecuniary aid necessary to avail themselves of the advantages resulting from the reduction of the prices of the raw materials and of labour, have compelled the banks to withdraw from them a portion of the capital heretofore advanced

to them. That aid which has been refused by the banks, has not been obtained from other sources, owing to the loss of failures which have recently ocindividual confidence, from the curred in some of our principal

commercial cities.

"An additional cause of the depression of these establishments, may properly be found in the pecuniary embarrassments which have recently affected those countries with which our commerce has been principally prosecuted.

"Their manufactures, for the want of a ready or profitable market at home, have been shipped by the manufacturers to the United States, and in many instances, sold at a price below their current value at the place of manufacture. Although this practice may, from its nature, be considered temporary, or contingent, it is not on that account less injurious in its effects. Uniformity in the demand and price of an

article, is highly desirable to the domestic manufacturer.

"It is deemed of great importance to give encouragement to our domestic manufactures. In what manner the evils adverted to may be remedied, and how far it may be practicable in other respects, to afford to them further encouragement, paying due regard to all the other great interests of the nation, is submitted to the wisdom of Congress.

"The survey of the coast for the establishment of fortifications is now nearly completed, and considerable progress has been made in the collection of materials for the construction of for. tifications in the gulf of Mexico and in the Chesapeake Bay. The works on the eastern bank of the Potomac, below Alexandria, and on the Peapatch, in the Delaware, are much advanced; and it is expected that the fortifications at the Narrows, in the harbour of New York, will be completed the present year. To derive all the advantages contemplated from these fortifications, it was necessary that they should be judiciously posted and constructed with a view to permanence. The progress hitherto has, therefore, been slow; but as the difficulties, in parts heretofore the least explored and known, are surmounted, it will in future be more rapid. As soon as the survey of the coast is completed, which, it is expected, will be done early in the next Spring, the engineer employed in it will proceed to examine, for like purposes, the northern and northwestern frontiers.

The troops intended to oc

cupy a station at the mouth of the St. Peter's, on the Mississippi, have established themselves there; and those which were ordered to the mouth of the Yellow Stone, on the Missouri, have ascended that river to the Council Bluffs, where they will remain until next Spring, when they will proceed to the place of their destination. have the satisfaction to state, that this measure has been executed in amity with the Indian tribes, and that it promises to produce, in regard to them, all the advantages which were contemplated by it.

I

"Much progress has likewise been made in the construction of ships of war, and in the collection of timber and other materials for ship-building. It is not doubted that our navy will be soon augmented to the number, and placed in all respects, on the footing provided for by law.

"The board, consisting of engineers and naval officers, have not yet made their final report of sites for two naval dépôts, as instructed according to the resolutions of March 18th, and April 20th, 1818, but they have examined the coast therein designated, and their report is expected in the next month.

"For the protection of our commerce in the Mediterranean, along the southern Atlantic coast, in the Pacific and Indian oceans, it has been found necessary to maintain a strong naval force which it seems proper for the present to continue. There is much reason to believe, that if any portion of the squadron heretofore stationed in the Mediterranean should be withdrawn,

who had wrongs to be redressed or claims to be recommended, he at length carried the discipline of his regiment to the highest pitch, and established for himself the most respectable military reputation. From Gibraltar his royal highness was removed to Canada in 1791. From this station he proceeded, in December 1793, through the United States to the West Indies, to join the army under the late lord Grey, and was present at the reduction of St. Lucie on the 4th of April following. On the expedition the impetuous bravery of his royal highness was manifested at St. Lucie, with too little consideration for his own safety, and too much disregard for the enemy's position. The troops were repulsed; but the Duke of Kent's high personal courage obtained him the applauses of the soldiers, and a flattering rebuke from the commander-in-chief.

At the close of the campaign of 1794, the Duke of Kent, pursuant to his majesty's commands, returned to British North America, and served at Halifax as major-general till 1796, and as lieutenant-general till 1798, when, in consequence of a severe fall from his horse, he was obliged to return to England.

In April 1799, his royal highness was created a peer by the title of duke of Kent and Strathern, and earl of Dublin, and obtained a parliamentary establishment adequate to the support of his new dignities. The following month he was promoted to the rank of general in the army, and appointed commander-in-chief in North America, to which destination he proceeded in July; but ill-health again obliged him to

return, and he arrived in England in the autumn of 1800. In March 1802, his royal highness was appointed governor-in-chief of the important fortress of Gibraltar, which office he held till the time of his decease. In May, 1802, he went to preside there in person, and exerted himself very laudably to suppress the licentiousness and dissipation of the wine-houses. The honourable attempt was made; but with doubtful success.

The wine licences were withdrawn; and for a time the peaceable inhabitants of Gibraltar could carry on their business, and walk the streets, and repose within their dwellings, at less risk of insult, or outrage, than before; drunkenness disappeared from among the soldiers; cleanliness and discipline were restored, while military punishments were reduced in frequency, the hospitals emptied of their numerous inmates, and the sexton disappointed of his daily work. But the liquor merchants were driven from the enjoyment of their enormous profit, and instigated the unreflecting soldiery to vengeance for the loss of those indulgences which devoured their pay and destroyed their health. Insubordination broke out on all sides; the governor was not supported by the local authorities; and after receiving the grateful and unanimous acknowledgments of the civil population of Gibraltar, he returned from a post in which his efforts for public good were more zealous than fortunate. His royal highness thought it advisable to return to England in May, 1803, where be continued to reside till August, 1816, when economical views led him to the continent. Here he continued, residing prin