remark only, that the friendly policy which produc- You intimate that troops are levying in Kentucky, ed it, was not reciprocated by your government; Tennessee, Louisiana and Georgia, for the invasion it wa perhaps not felt; it was certainly disregard- of the Spanish provinces, of whom one thousand are ed. Every proposition of the American ministers, (from Kentucky, and three hundred from Tennessee, having hese objects in view, was rejected, and nor to be commanded by American citizens, but you do made i. return by your government. not state at what points these men are collected, or This conduct of your government, would have by whom commanded; and as to the forces said to justined if it did not invite the most decisive mea-be raised in Louisiana and Georgia, your communisures on the part of the United States. The refu-cation is still more indefinite. The information resal to make reparation for preceding injuries or to cently obtained by this department, from persons of surrender any portion of the territory, in the pos- high consideration, is of a very different character. session of Spain, to which they considered their ti-It is stated that no men are collected, nor is there tle indisputable, or to accep: fair and liberal pro-any evidence of an attempt or design to collect any positions for the accommodation of these differences, in Kentucky, Tennessee or Georgia, for the purpose or o make a proposition of any kind for the pur-stated; and that the force said to be assambled unpose, lef: the United States perfectly free, to pur- der Mr. Toledo is very inconsiderable, and compossue such course, as in their judgment a just regarded principally of Spaniards and Frenchmen. If any to the honor, rights, and interests of the nation portion of it consists of citizens of the United States night dictate. In the condition of Spain, there was their conduct is unauthorised and illegal. This nothing to excite apprehension of the consequences, force is not within the settled parts of Louisiana, whatever might be the course decided on. Of this, but in the wilderness, between the settlements of the well known state of the peninsula, at the time, the United States and Spain, beyond the actual opeand since, and of the Spanish provinces in America,ration of our laws. I have to request, that you will affords ample proof. The friendly policy which the have the goodness to state, at what points in KenUnited States have since pursued, is the more con-tucky, Tennessee, Georgia and Louisiana, any forcespicuous, from the consideration, that your govern- is collected, the number in each instance, and by ment has inflexibly maintained the unjust and hos-whom commanded. If such force is collected, or tile attitude which it then assumed, and has even collecting, within the United States, for the purpose: added new injuries and insults to those of which I suggested, or other illegal purpose, it will be dishave already complained. I refer, in this latter re-persed, and the parties prosecuted, according to law. mark, to the breaches of the neutrality of Spain,| This government is under no obligation, nor has which her government permitted, if it did not au-it the power, by any law or treaty, to surrender any thorise, by British troops, and British agents, in inhabitant of Spain or the Spanish provinces, on the Florida, and through that province, with the Creeks and other Indian tribes, in the late war with Great Britain, to the great injury of the United States. It is ander these circumstances that you have made the demands above recited, to which I will now proceed to give a more particular reply. You require that Spain shall be put in possession vilized nations, where not particularly varied by of West Florida, as an act of justice, before a discus-treaties. sion of the right of the parties to it is entered on. In reply to your third demand, the exclusion of It is known to your government, that the United the flag of the revolting provinces, I have to obStates claim by cession, at a fair equivalent, the serve, that in consequence of the unsettled state of province of Louisiana, as it was held by France prior many countries, and repeated changes of the rulto the treaty of 1763, extending from the river Per- ing authority in each, there being at the same time, dido, on the eastern side of the Mississippi, to the several competitors, and each party bearing its apBravo, or Grande, on the western. To the whole appropriate flag, the president thought it proper, *erri ory, within those limi, the United States con- some time past, to give orders to the collectors, not ider their right established by well known facts, to make the flag of any vessel a criterion or condiand the fair interpretation of treaties. In a like tion of its admission into the ports of the U States. pirit may the United States demand the surrender Having taken no part in the differences and convul of all the territory above described, now in the oc- sions which have disturbed those countries, it is cupancy of Spain, as a condition to the commence- consistent with the just principles, as it is with the ment of any negociation for the adjustment of dif-interests of the United States, to receive the vessels ferences. When we consider how long your govern- of all countries into their ports, to whatever party mment has maintained what is deemed an unjust pos- belonging, and under whatever flag sailing, pirates ession; more especially, when we recollect that excepted, requiring of them only the payment of the the injuries before received are still unredressed, duties, and obedience to the laws while under their and that others have been since rendered, there can jurisdiction; without adverting to the question, whebe, it is presumed, but one opinion, as to the great ther they had committed any violation of the allegimoderation of this government, in acquiescing in it.ance or laws obligatory on them in the countries to But why restore his province to Spain, if it is the which they belonged either in assuming such flag, istention of your government, to make the title to or in aoy other respect. at, in connection with other differences, a subject of In the differences which have subsisted between amicable negociation and arrangement? May not such negociation be entered into, as well while it is n the occupancy of the United States, as if it were in that of Spain?

You demand next, that Mr. Toledo and others, hom you mention, charged with promoting revolt the Spamsh provinces and exciting citizens of the United States to join in it, shalt be arrested and fed-their troops disarmed and dispersed.

demand of the government of Spain; nor is any such inhabitant punishable by the laws of the United States for acts committed beyond their jurisdiction, the case of pirates alone excepted. This is a fundamental law of our system. It is not, however, confined to us. It is believed to be the law of all ci

Spain and her colonies, the United States have observed all proper respect to their friendly relations with Spain. They took no measures to indemnify themselves for losses ond injuries; none to guard against the occupancy of the Spanish territory by the British forces in the late war, or to occupy the territory to which the United States conside. their title good, except in the instance of West Florida, and in that instance under circumstances which

made their interposition as much an act of accom- tedious and disagreeable mode of steeping and modation to the Spanish authority there, as of secu- bleac ing by acids and alkalies, &c. are avoided, rity to themselves They have also prohibited their and the strength and color of the fabric wonderfully citizens from taking any part in the war; and the im roved." inhabitants of the colonies, and other foreigners Samples of the flax, thus prepared, have been sent connected with them, from recruiting men in the to this country, viz. United States for that purpose. The proclamations which have been issued by the governors of some of the states and territories, at the instance of the president, and the proclamation lately issued by the president himself, are not unknown to your government. This conduct, under such circumstances, and at such a time, is of a character too marked to be mistaken by the impartial world.

No. 1-The flossy specimen is the waste tow, which appears better than the old manufactured flax, and may be used for a variety of useful purposes.

No. 2-The flax cleaned in its natural color. No. 3-The flax, after being washed with soap and water.

No. 4-A specimen of the thread.

Here follows a list of the machines necessary to save the seed, and to prepare the flax, or hemp. according to Mr. Lee's system, with the price of the machines in Dublin, viz.

Threshing machine 21.; breaking do. 37.; cleaning do. 3.; refining do. 81. 10s.

son's.]

What will be the final result of the civil war, which prevails between Spain and the Spanish provinces in America, is beyond the reach of human foresight. It has already existed many years, and with various success, sometimes one party prevailing, and then the other. In some of the provinces, the success of the revolutionists appears to have [N. B.-Mr. Lestrange, who made a great number given to their cause more stability than in others. of these machines for the Dublin society, and who All that your government had a right to claim of can give full information of the process, is now in the United States, was, that they should not inter- Baltimore, and may be heard of at Mr. Henry Jackfere in the contest, or promote, by any active service, the success of the revolution, admitting that they continued to overlook the injuries received from Spain, and remained at peace. This right was common to the colonists. With equal justice might they claim, that we would not interfere to their disadvantage that our ports should remain open to both parties, as they were before the commencement of the struggle; that onr laws regulating commerce with foreign nations should not be changed to their injury. On these principles the United States have acted.

So much I have thought proper to state respecting the relations existing between the United States and Spain. The restoration of the diplomatic intercourse between our governments, forms an epoch which cannot fail to be important to both nations. If it does not produce a result favorable to their future friendship and good understanding, to your government will the failure be imputable. The U. States have, at all times, been willing to settle their differences on just principles and conditions, and they still are. Of this I informed yon in my letter of the 5th of May, as I likewise did Mr. Cevallos, in a letter of the 17th of July. It will be very satisfactory to the president, to find that your government entertains now the same disposition, and has given you full power o conclude a treaty for these purposes. I have the honor to be, with great consideration, sir, your very obedient servant, (Signed) JAMES MONROE.

Linen Manufacture. Part of a lette f ma entleman in Dublin to his friend in America, dated 30th August, 1815. "I take an opportunity of informing you of an important improvement in the cleaning and whitening of flax without steeping, &c. and saving all the seed--By this simple improvement, flax is merely pulled, weil dried, the seed taken off, and beat until the bark and fibre are separated-It is then run through fluted rollers and scutched, which complete y cleans the flax, leaving it of a straw color, which only requires the simple operation of soap and water to make it nearly white, with a fine silky appearance-The Linen Board has taken up this improvement and encourage its practice, and sanguine expectations are formed of its great public advantage-Bendes saving all the seed, the present

Receipts and Expenditures.

Letter from the secretary of the treasury, transmitting statements of the receipts and expenditures of the treasury of the United States, from the 3d of March, 1789, to the 31st of March, 1815; made in pursuance of a resolution of the house of representatives of the 20th inst.-January 26th, 1816.-Read, and ordered to lie upon the table.

Treasury department, January 25, 1816. SIR-In obedience to a resolution of the house of representatives of the 20th instant, I have the honor to lay before the house,

No. 1. An explanatory letter from the register of the treasury, accompanying the statements required by the resolution: No. 2. A statement of the annual receipts and expenditures of the United States, from the 3d of March, 1789, to the 31st of March 1815, exclusive of moneys received from loans, foreign and domestic, and payments on account of the foreign and domestic debt; and on account of the revolutionary government, which are se parately stated: No. 3. Statements, 1st, of the moneys annually received from foreign and domestic loans; 2nd, of the sums paid annually on account of the public debt; and 3d, of the whole amount, paid annually on account of the revolutionary government from the commencement of the present government. I have the honor to be, with great respect and consideration, sir, your most obedient servant, A. J. DALLAS.

The honorable Henry Clay,

Speaker of the house of representatives.

by the secretary of the treasury of the 11th Janua222,530,374 56 ry, 1813, under a resolution of that house of the 24th 9,016,342 24 December, 1812, and embrace all receipts and pay4,476,826 53 ments, whether made at the treasury, or by the com747,388 40 missioners of loans abroad, to the date of the latest 8,658,369 38 settlement at the treasury, of the accounts of the 1,590,001 68 United States' commissioners in London and Amsterdam.

247,019,302 79
107,138,184 41

$354,157,487 20

of the army, Fortification of ports

88,270,562 85

and harbors, Fabrication of cannon, Purchase of salt-petre, Additional arms,

4,374,805 26

263,611 54
150,000 00
300,000 00

1,100,000 00

170,000 00

I have the honor to be, very respectfully, sir, your obedient humble servant,

JÖSEPH NOURSE, Register. Hon. A. J. Dallas, Secretary of the treasury.

No. 2.

A statement of the annual receipts and expenditures of the United States, from the 3d day of March, 1789, up to the 31st of March, 1815, (exclusive of monies received from foreign and domestic loans, and payments on account of the foreign and domestic debt, and on account of the revolutionary government, separately stated in the accompanying documents A. B. and C.) formed in pursuance of a resolution of the house of representatives of the United States, of the 20th of January, RECEIPTS.

1816.

YEARS.

Connage.
Imposts and Internal reve, Direct taxes. Postage. Public landaj Miscellaneous Aggregate. 1

Arming and equipping the militia,

Detachment of militia,

Services of militia 2,000,000 00
Services of volunteers, 1,000,000 00

97,628,979 65

1,338,040 66 47,818,303 68

10,678,015 34
2,405,322 40

14,949,695 79

9.909,978 91

$184,719,336 43

To which, add the expenditures in
relation to the payment of the
interest, and charges on the fo-
reign loans, and principal of the
foreign and domestic debt at the
treasury of the United States, and
by their commissioners abroad,
as per statement B.
And the expenditures on account of
the revolutionary government, as
per statement C.

$167,524,588 00

The sum total of expenditures from
the 3d of March, 1789, to the
31st of March, 1815,
Which with the balance in the trea-
sury, on the 31st of March, 1815,
as settled at the treasury

316,268 70

352,500,193 13

1,597,294 07

$354,157,487 20

Make the sum total of receipts as before stated,

It will be perceived that these statements are a continuation in point of form, of those rendered to the house of representatives of the United States,

38,270,562 854,374,805 26263,611 54150,000 00 1,100,000 00 300,000 00 170,000 00l2,000,000 00 1,000,000 00197,628,979 65

1816, calculating on the permanent duties alone, must exhibit the distribution of the surplus produce would, instead of 63,587,502 dollars, be actually

Having taken a view of our wants, and examined the ratio in which they must advance, let us investigate the powers of our industry to supply those wants, and the ratio in which those powers may advance-what circumstances will probably retard, and what accelerate their progress:

It appears, by reports from the treasury depart ment, that there was exported from the United States, in the year 1803 a surplus of domestic produce amounting in value to 42 millions of dollars; and in the year 1807, amounting in value to 49 millions of dollars. A comparison of the amounts of the exports of these two periods will afford us a ratio for the increase of the powers of labor to prodace a surplus over the necessary domestic supply. Which ratio I find to be 5 per cent. per annum. The increase in the production of the single article, cotton, has been at the rate of 6 per cent. per annum. Of the whole amount of surplus exported, 1-14 was the product of the fisheries; 11-14 were the products of agriculture; 1-23 was the product of manufactures, other than of cotton or wool, and 3-28 were the products of the forest-furs, skins, ashes, lumber, naval stores, &c.

From these elements, is formed the following condensed view of the classes and amounts of surplus produce, seeking a market, during the present and a

few succeeding

years.

DOLLS.

DOLLS.

DOLLS.

DOLLS.

DOLLS.

DOLLS.

8,571,428 80,000,000

13165,714,283 18,000,000 44,857,1442,857,14. 13217,379,399 24,038,06) 57,085,3333.689,711,069.09: 108,311,5. 18206,012,137 22,724,585,54,408,918 3,5,6, 61,518,293,169,01 1819 5,662,362 21,458,288 51,847,7023,331,189,993,593,273,070 18183,330,036 20,224,800 49,405,5923,165,018| 9,495,054 88,020,50 18175,014,285 19,080,000 47,077,1413,007,1 9,021,284,203,000

If this

course

of

upai q3lI

Cotton.

Other articles.

There ought to be the following amount of surplus produce:

Of agriculture.

we exported in the year 1803, amounting in value to
42 millions of dollars, and then enquire into the
probabilities of the present and future markets ac-
cessible to us. I assume, as an axiom, "that agri-
culture is emphatically the staff of political life-
the only sure foundation of our prosperity, happi-
ness and power, as a nation." This I mean to make
the basis of all my reasoning on the subject. I pre-
sent myself before you, my fellow-citizens, as an
advocate for manufactures-not, however, exclu-
sively so-I hope to earn, as still more appropriate,
the title of "an advocate for agriculture." But agri-
culture must, in the nature of things, be governed
by the market for its surplus productions; it must
flourish when the demand of its market is steady and
commensurate with its powers of supply, and lan-
guish when that demand is small and fluctuating.
In the year 1803 we exported to
Britain and Ireland, and a mar.

When I consider the intelligence and political knowledge of those to whom I offer this statement, I cannot think it necessary to go into a course of reasoning to prove, what appears to me strongly and obviously probable, that the foreign demand for our surplus produce is not, nor will not be greater, in any one year, than the amount just stated42 millions of dollars-probably less, in consequence of the stupendous changes wrought in the nations, formerly our customers, by twenty-five years of revolution and war.

18, then, I am correct in the opinion, that 42 mil. lions of dollars, annually, will continue to be the maximum of foreign demand, while our capacities to produce a surplus will have advanced, in the year 1817, to 84 millions, double that amount, what would be the consequence of this state of things? Either a vast amount of surplus produce would lie dead upon our hands; or, by attempting to force a sale, we should reduce the price; in either case, the necessary stimulus being withdrawn, industry would languish. We must, per force, circumscribe the amount of our purchases of foreign articles within the limits of the amount of surplus produce which foreign nations will choose to buy of us, for we have no other means, than this surplus, of purchasing either merchandize or bullion, or of paying, for the support of government, the impost laid thereon. This afflict ing picture might be extended; but I am persuaded it is needless-it might be shown that agricul ture, leaning solely on the staff of foreign commerce, leans on "a broken reed, at bost, but oft a things could continue regularly spear, on whose sharp point peace bleeds and hope

TOTAL.

and steadily the balance would, in the year 1823, expires." A concealed weapon more fatal to naan i not before, be in our favor. But, in my opinion, tional independence than the sword. i comuni exist; and were we to commence the ca- It will be observed that hitherto I have treated reer, it could not continue two years. In order to place this subject, leaving factories, and double duties, is a clear point of view the considerations which and tariffs out of the question; and have endeavorhave impi cssed on my mind this strong conviction, Ied to shew what would probably be our progress