$4,000,000 in notes under fifty dollars, which would give
about eighty thousand notes, (for though they would be of different
sizes they paid in the same proportion,) at thirty cents,
$24,000
$2,000,000 of one hundred dollars and upwards, at fifty cents,10,000
$2,000,000 of three hundred dollars and upwards,4,000
———
$38,000
Allow for mistakes,2,000
———
Which includes all the notes in circulation in the United States,$40,000

As to the principle of taxation itself, that bank notes of fifty dollars should pay thirty cents when notes of individuals only pay ten cents, justice requires the difference, on the same principle that notes of sixty days had been charged with only two-fifths of the duty charged upon others.

Mr. G. stated the following account of a bank in Philadelphia, whose capital was $2,000,000, and to which Government owed nothing; which, he said, would apply to every other bank in the same circumstances, with little variation:

To the original fund,$2,000,000
To deposits, about900,000
To bank notes,600,000
—————
Total debts,$3,500,000
—————
By notes discounted,$3,000,000[20]
By cash in vault,500,000
—————
Total credits,$3,500,000
—————

As banks were thus able to transact business to the amount of three millions of dollars, though their original fund was only two millions, he accounted for their sharing dividends of nine per cent. on their stock. It would be observed that the two millions capital were not touched for notes, and yet they were charged with selecting these bodies of men upon whom to lay a heavy tax.

Mr. G. concluded by saying he had no prejudice against banks. He knew they were liable to abuse, but, upon the whole, he believed them to be useful. He believed the scale he had formed was correct, but should withdraw it for the present, in order to give an opportunity of trying the principle.

Friday, June 30.

Duties on Stamps.

The proposition of Mr. Gallatin for admitting of a composition from the banks in lieu of the tax, came next under consideration—the blank in which was moved to be filled with one per cent.; when

Mr. W. Smith said, if the gentleman from Pennsylvania was right in his calculation yesterday, the whole amount of duties arising from the banks would be $8,000 a year, and therefore they ought not to go farther in fixing the composition, whereas one per cent., according to the same statement, will produce more than double that sum; for, if the whole capital of the banks in the United States be twenty millions, and their average dividend ten per cent., that will produce two millions, which at one per cent. will give $20,000. He therefore moved, in order to bring the matter nearer to a fair equivalent, to strike out one per cent. and insert one-half per cent.

Mr. Nicholas said what the duty would produce was uncertain; they could with more correctness say, that one per cent. was a reasonable composition on the dividends, than what might be produced by the duty. He knew of no tax laid upon property that could be made for less than five per cent. to clear the expense of making it.

Mr. W. Smith thought they should first fix the rates to be paid on bank notes before they determined upon the composition.

Mr. Gallatin said, when the rates were before under consideration, the gentleman from South Carolina objected to it, because, if fixed too high, he said it would influence the composition. He therefore moved to have it struck out; but now, when a composition was under consideration, he turns round and says it would be better first to fix the rates. He thought one per cent. a reasonable composition, and that it would be best first to fix that.

Mr. Smith denied that he wanted first to fix the composition; it was his wish to strike out the rates, to reduce them, that he moved to leave the sum blank.

The question was put and carried, there being 54 votes in favor of it.

Mr. Gallatin then renewed his motion for fixing the scale of duty to be paid on bank notes. It was, on notes not exceeding fifty dollars, three cents for every five dollars; those not exceeding one hundred dollars, fifty cents; those above one hundred dollars, and not exceeding five hundred dollars, one dollar; for all above five hundred dollars, two dollars.

Mr. Dayton said there were many notes under five dollars, for which there was no provision.

Mr. Gallatin thought "the rate of" would have included the small ones; and, to dissipate every doubt on the subject, he moved to replace "three cents for every five dollars," with "three-fifths of a cent for every dollar."

Carried, 39 to 24.[21]

Monday, July 3.

The bill for laying a stamp duty was read a third time, and the blanks filled up, viz: that for fixing the time of the act taking effect, with the 31st day of December next; the fine and imprisonment for counterfeiting stamps, &c., with $1,000 and seven years' imprisonment; and the time for which the duration of the act was limited, with five years.

The yeas and nays being taken on the passage of the bill, were—yeas 47, nays 41, as follows:

Yeas.—John Allen, James A. Bayard, David Brooks, James Cochran, Joshua Coit, William Craik, Samuel W. Dana, James Davenport, John Dennis, Geo. Dent, Thomas Evans, Abiel Foster, Dwight Foster, Jonathan Freeman, James Gillespie, Henry Glenn, Chauncey Goodrich, William Gordon, Roger Griswold, John A. Hanna, Robert Goodloe Harper, Thomas Hartley, William Hindman, Hezekiah L. Hosmer, Samuel Lyman, James Machir, William Matthews, Daniel Morgan, Lewis R. Morris, Harrison G. Otis, Elisha R. Potter, John Read, John Rutledge, jun., James Schureman, Samuel Sewall, William Shepard, Thomas Sinnickson, Samuel Sitgreaves, Jeremiah Smith, Nathaniel Smith, William Smith, (of Charleston,) George Thatcher, Richard Thomas, Mark Thomson, John E. Van Allen, Peleg Wadsworth, and John Williams.

Nays.—George Baer, jr., Abraham Baldwin, David Bard, Lemuel Benton, Thos. Blount, Nathan Bryan, Dempsey Burges, Samuel J. Cabell, Christopher G. Champlin, Thomas Claiborne, Matthew Clay, John Clopton, Thomas T. Davis, John Dawson, Lucas Elmendorph, John Fowler, Albert Gallatin, Jonathan N. Havens, David Holmes, Walter Jones, Edward Livingston, Matthew Locke, Matthew Lyon, Nathaniel Macon, Blair McClenachan, Joseph McDowell, John Milledge, Anthony New, John Nicholas, Josiah Parker, Thompson J. Skinner, William Smith, (of Pinckney District,) Richard Sprigg, jr., Richard Stanford, Thomas Sumter, Abram Trigg, John Trigg, Philip Van Cortlandt, Joseph B. Varnum, Abraham Venable, and Robert Williams.

Tuesday, July 4.

Duty on Salt.

Mr. Allen called up the resolution he yesterday laid upon the table, for laying an additional duty on salt.

Mr. Gallatin moved to postpone the consideration of this resolution until the second Monday in November.

Some debate took place on this question; and, when it came to be taken, the House was equally divided, there being 43 votes for the postponement, and 43 against it. The Speaker decided against the postponement, and the resolution was referred to a Committee of the Whole immediately.

The House accordingly resolved itself into a Committee of the Whole on this resolution; when

Mr. Allen moved the blank cents per bushel be filled with twelve.

Mr. Swanwick wished the sum to be seven.

Mr. Allen consented to make it eight.

Mr. Sitgreaves hoped it would be twelve.

The question was first taken upon twelve, and negatived, there being only 30 votes for it. It was next taken upon eight, and carried, 47 to 42, and then upon the resolution as amended, and carried by the same numbers.

The committee rose, and the House took up the resolution.

After a few words from Mr. Lyon against the tax, and from Mr. Williams in favor of it,

Mr. W. Smith went at considerable length into a defence of the measure, in the course of which, he said, they had already agreed upon appropriations to the amount of $700,000 or $800,000, and were not certain of any revenue to meet the expenditure. The license act, he believed, might produce from $50,000 to $60,000, and the stamp act from $100,000 to $150,000, if they should be passed; but he considered this as doubtful. But if these laws were passed, this tax on salt was necessary to keep up the equilibrium of taxation;[22] for the stamp act would almost exclusively fall upon commerce and large cities; this would principally be felt by the agricultural part of the Union; and, if it were not agreed to, they must have a land tax.

Mr. Shepard said, no tax would operate so equally as a salt tax, as every citizen must make use of it in a smaller or larger quantity.

Mr. Gallatin opposed this tax on the same ground which he heretofore opposed it, as oppressive to certain parts of the Union, and no way affecting others, and therefore wholly unequal, and particularly as it bore heavy on the poorer classes of society. He was against it also, because it was not proposed that the amount of this tax should go towards a reduction of the public debt, but merely to encourage expense in the Government; for he believed if they filled the Treasury with money, means would be found to expend it. Indeed, if the Treasury had not been at present in rather a low state, he believed they should have gone into most of the expensive measures proposed to them this session. He allowed the tax would be productive, as a tax upon bread, air, or any necessary of life, must be productive. If this tax, however, were to be agreed to, he should wish to make an amendment to the present proposition. At present the drawback allowed to the New England States, on account of salt used in the fisheries, amounted to about $90,000 a year, though by the statements it appeared there should only have been allowed $50,000. To rectify this, he proposed the following proviso to be added to the resolution, viz:

Provided, That the allowance now given upon vessels employed in the fisheries, shall not be increased.

This amendment was opposed by Messrs. Harper, Sewall, Dana, and Kittera, on the ground of its being an unfair way of introducing the proposition, as no one expected it; they were not prepared to meet it; the correctness of the statement was doubted; and, if it were correct, it was said, the proper way of doing the business would not be to pass the present law without a drawback, but to reduce the former drawback and make it less on this occasion.

The motion was supported by the mover, and Messrs. Venable and Livingston; but, after some discussion, Mr. Gallatin withdrew it, in order to give gentlemen time to make themselves acquainted with the fact he had stated; but he expressed his intention of renewing the proposition when the bill came in.

The question then returned upon the original resolution; when

Mr. Harper went at length into a defence of the measure, (in the course of which he charged Mr. Gallatin with being mistaken $12,000 as to the amount of the drawback allowed,) and insisted that it was a fair and proper tax, and that so small an advance upon the present duty could not operate oppressively upon any part of the community.

Mr. Nicholas followed in opposition. He dwelt considerably on the unjust and unequal manner in which this tax would operate. He said he did not view this question as deciding merely whether an additional tax of eight cents should be laid upon salt; but whether that necessary of life should be called upon for every thing Government should want. He was in favor of a direct tax, which should fall equally, though it might, in the origin, be attended with some considerable expense; but, if they went on raising partial sums in this way by indirect means, the expense of instituting a direct tax would always be an obstacle, and indirect taxes would always be had recourse to. He did not believe it to be absolutely necessary to provide a revenue this session, as he believed money might as well be borrowed without as with additional revenue, and at the next session, the subject could be fully gone into.

Mr. Lyon spoke of the discontent which had always been shown in the part of the country from whence he came, which, he said, would be greatly increased by this addition. It was not only a duty of eight cents, every cent would be made four before the salt reached them. There was no kind of tax which his constituents would not sooner bear. It had been said that a land tax would cost twenty-five per cent. to collect it; but what was twenty-five compared with three hundred per cent.? Nor did he believe this tax would prevent a land tax. He believed they should go on taxing the people until they would be greatly dissatisfied. He would much rather a tax of eight cents was laid upon tea, which would produce an equal sum.

The question was taken by yeas and nays, and decided in the affirmative—47 to 41.

Wednesday, July 5.

Duty on Salt.

The House went into Committee of the Whole on the bill for laying an additional duty on salt; when

Mr. Gallatin moved to strike out all that related to the allowing of a drawback to vessels employed in the fishing trade, on the ground that he yesterday stated, viz: that the allowance at present made was too large by $40,000 a year, taking the year 1794 for his data; but it appeared that in the year 1795 there was a deficiency in that trade, owing principally, it was supposed, to the great demand for seamen in the merchant service. He, therefore, would take the calculation of the gentleman from South Carolina, (Mr. Harper,) made yesterday, and, instead of calling the amount of drawback allowed $90,000, he would state it to be $78,000; and even then, he said, the drawback at present allowed would exceed by two thousand dollars the drawback to which they would be entitled, if the present duty took place.

He spoke generally against the tax as oppressive to the back country; but if the gentleman from Massachusetts, and others, were determined to increase the tax, he should wish their part of the country to pay their share of it.

This motion was supported by Messrs. Venable, Nicholas, Clay, McDowell, and Macon.

It was opposed by Messrs. Sewall, Otis, Harper, Coit, Brooks, Kittera, J. Williams, and Dayton.

The calculation of the quantity of salt estimated to be necessary to be used for a quintal of fish, (one bushel,) was said to be stated too low; that the sum allowed was not only meant as a drawback of the duty, but also as a bounty on the fishing trade—as being a nursery for seamen, and serving as a kind of naval militia for the United States.

If it should appear, however, that the present allowance was too great, (which, by some gentlemen in favor of this motion, which was in blank, seemed to be acknowledged,) a less allowance might be made in this bill; but they could not consent to the bill passing without a drawback.

The question for striking out the clause was taken, and negatived—49 to 41.

Mr. Coit moved to fill the blank with 50 per cent., instead of 66-2/3, which was the drawback allowed by the present law.

Mr. Hartley thought this sum too high.

Mr. Williams moved 33-1/3 per cent. which was carried without a division.

Mr. Nicholas moved a limitation clause, to continue the act in force for two years, and from thence to the end of the next session of Congress.

This motion was carried—42 to 39.

The committee rose, and the House agreed to the amendments. The yeas and nays were called upon the limitation clause, and were taken, and stood—yeas 47, nays 43.

The bill was ordered to be engrossed for a third reading this day; and before the House rose, it received it, and passed. The yeas and nays on its passage stood 45 to 40, as follows:

Yeas.—John Allen, James A. Bayard, David Brooks, Stephen Bullock, John Chapman, Christopher G. Champlin, Joshua Coit, William Craik, Samuel W. Dana, James Davenport, John Dennis, George Dent, Thomas Evans, Abiel Foster, Dwight Foster, Jonathan Freeman, Henry Glenn, Chauncey Goodrich, Roger Griswold, Robert Goodloe Harper, William Hindman, Hezekiah L. Hosmer, James H. Imlay, John Wilkes Kittera, Samuel Lyman, William Matthews, Lewis R. Morris, Harrison G. Otis, Elisha R. Potter, John Read, John Rutledge, jun., James Schureman, Samuel Sewall, William Shepard, Thomas Sinnickson, Samuel Sitgreaves, Jeremiah Smith, Nathaniel Smith, William Smith, (of Charleston,) John Swanwick, George Thatcher, Mark Thompson, John E. Van Allen, Peleg Wadsworth, and John Williams.

Nays.—Abraham Baldwin, David Bard, Lemuel Benton, Thomas Blount, Richard Brent, Nathan Bryan, Dempsey Burges, Samuel J. Cabell, Thomas Claiborne, Matthew Clay, John Clopton, Thomas T. Davis, John Dawson, Lucas Elmendorph, John Fowler, Albert Gallatin, James Gillespie, Wm. B. Grove, John A. Hanna, Jonathan N. Havens, David Holmes, Walter Jones, Matthew Locke, Matthew Lyon, Nathaniel Macon, Blair McClenachan, Joseph McDowell, John Milledge, Daniel Morgan, Anthony New, John Nicholas, Thompson J. Skinner, William Smith, (of Pinckney District,) Richard Sprigg, jun., Richard Stanford, Thomas Sumter, Abram Trigg, John Trigg, Joseph B. Varnum, and Robert Williams.

Saturday, July 8.

Laws in the German Language.

Mr. Holmes said that he thought it necessary, in order to enforce a general compliance with the laws of the United States, that they should be printed in the German language, as well as in the English, since there were very many inhabitants in this country who could read no other. He therefore proposed a resolution to the following effect:

"Resolved by the Senate and House of Representatives of the United States, That a number of copies of the laws of this session, not exceeding eight thousand copies, shall be printed in the German language, and distributed by the Secretary of State amongst the Executives of the several States, for the information of the German inhabitants of each State respectively."

Mr. Lyon thought it would be proper to pass a resolution of this kind. He did not know what number might be necessary. He also thought that some measures should be taken for a general publication of their laws in the English language; at present, it was merely by chance if the people in his district came to a knowledge of them. He thought all laws of general import should be inserted in every newspaper throughout the Union.

Mr. Coit said if they were to promulge their laws in the German language, it would be necessary that they should all become critically acquainted with it, for if they were to authorize any translation, great mischiefs might arise from its not being correct.

Mr. Gallatin said that the weight of the objection urged by the gentleman last up, had always been thought sufficient in the Legislature of Pennsylvania, in which State there was a greater proportion of Germans than in any other. There was also another objection to the measure. If it were to be passed, it must be accompanied with an appropriation law, which the advanced state of the session would not admit.

The resolution was put and negatived.

Monday, July 10.

On motion of Mr. Dent, a committee was appointed to wait upon the President of the United States, in conjunction with a like committee from the Senate, to inform him the two Houses were about to adjourn. The committee waited upon the President accordingly, and reported his acquiescence, and his good wishes for the safe arrival of the members at their several homes.

On motion of Mr. Sitgreaves, the resolution entered into some time ago, calling upon the President for an account of the quantity of arms in the possession of the United States, and at what place they were lodged, was suspended.

Mr. S. said, he wished to make a report upon a subject which would require the galleries to be cleared. He, therefore, moved that they be cleared, and the doors were closed for the remainder of the sitting, at the conclusion of which the House adjourned till the second Monday in November next.[23]


FIFTH CONGRESS.—SECOND SESSION.

BEGUN AT THE CITY OF PHILADELPHIA, NOVEMBER 13, 1797.

PROCEEDINGS IN THE SENATE.

Monday, November 13, 1797.

The second session of the fifth Congress of the United States commenced this day, at the city of Philadelphia, conformably to law; and the Senate assembled accordingly in their Chamber.

PRESENT:

Samuel Livermore, from New Hampshire.
Theodore Foster, from Rhode Island.
Uriah Tracy, from Connecticut.
Elijah Paine, from Vermont.
William Bingham, from Pennsylvania.
Humphrey Marshall, from Kentucky.
Alexander Martin and Timothy Bloodworth, from North Carolina.
Jacob Read, from South Carolina.

The number of members present not being sufficient to constitute a quorum, the Senate adjourned to 11 o'clock to-morrow morning.

Tuesday, November 14.

John Laurance, from the State of New York, and Henry Latimer, from the State of Delaware, severally attended.

The number of members present not being sufficient to constitute a quorum, the Senate adjourned.

Wednesday, November 15.

Benjamin Goodhue, from the State of Massachusetts, attended.

The number of members present not being sufficient to constitute a quorum, the Senate adjourned.

Thursday, November 16.

The Senate assembled, and the number of members present not being sufficient to constitute a quorum, the Senate adjourned.

Friday, November 17.

John Langdon, from the State of New Hampshire, attended.

The number of members present not being sufficient to constitute a quorum, the Senate adjourned.

Saturday, November 18.

No quorum being present, the Senate adjourned.

Monday, November 20.

James Gunn, from the State of Georgia, attended.

No quorum being present, adjourned.

Tuesday, November 21.

Ray Greene, appointed a Senator by the State of Rhode Island, in the place of William Bradford, resigned, produced his credentials.

Richard Stockton, from the State of New Jersey, attended.

No quorum being present, the Senate adjourned.

Wednesday, November 22.

The Vice President being absent, the Senate proceeded to the choice of a President pro tempore, as the constitution provides; and Jacob Read was duly elected.

Joseph Anderson, appointed a Senator by the State of Tennessee, for the remainder of the term which the late Senator William Blount had drawn, and was entitled to have served, produced his credentials; which were read.

Nathaniel Chipman, appointed a Senator by the State of Vermont, in the place of Isaac Tichenor, elected Governor, produced his credentials; which were read.

The credentials of Ray Greene were read.

Andrew Jackson, appointed a Senator by the State of Tennessee, produced his credentials; which were read.

The oath required by law was administered by the President, to Messrs. Anderson, Chipman, Greene, and Jackson, they having severally taken their seats in the Senate.

A message from the House of Representatives informed the Senate, that a quorum of the House is assembled, and ready to proceed to business.

Ordered, That the Secretary acquaint the House of Representatives that a quorum of the Senate is assembled, and are ready to proceed to business; and that, in the absence of the Vice-President, they have elected Jacob Read, President of the Senate pro tempore.

Resolved, That each Senator be supplied, during the present session, with copies of three such newspapers, printed in any of the States, as he may choose, provided that the same are furnished at the rate of the usual annual charge for such papers.

A message from the House of Representatives informed the Senate, that the House have appointed a joint committee on their part, together with such committee as the Senate may appoint, to wait on the President of the United States, and notify him that a quorum of the two Houses is assembled, and ready to receive any communications that he may be pleased to make to them.

Resolved, That the Senate do concur in the appointment of a joint committee, and that Messrs. Bingham and Tracy be the committee on the part of the Senate.

Resolved, That two Chaplains be appointed to Congress for the present session, one by each House, who shall interchange weekly; and that the Right Rev. Bishop White be Chaplain on the part of the Senate.

Mr. Bingham reported, from the joint committee, that they had waited on the President of the United States, and had notified him that a quorum of the two Houses is assembled; and that the President of the United States acquainted the committee that he would meet the two Houses, in the Representatives' Chamber, at 12 o'clock to-morrow.

Thursday, November 23.

A message from the House of Representatives informed the Senate that the House are now ready to meet the Senate in the Chamber of that House, to receive such communications as the President of the United States shall please to make them.

The Senate then repaired to the Chamber of the House of Representatives for the purpose above expressed.

The Senate returned to their own Chamber, and a copy of the Speech of the President of the United States, this day addressed to both Houses of Congress, was read:

Gentlemen of the Senate, and Gentlemen of the House of Representatives:

I was for some time apprehensive that it would be necessary, on account of the contagious sickness which afflicted the city of Philadelphia, to convene the National Legislature at some other place. This measure it was desirable to avoid, because it would occasion much public inconvenience, and a considerable public expense, and add to the calamities of the inhabitants of this city, whose sufferings must have excited the sympathy of all their fellow-citizens. Therefore, after taking measures to ascertain the state and decline of the sickness, I postponed my determination, having hopes, now happily realized, that, without hazard to the lives or health of the members, Congress might assemble at this place, where it was next by law to meet. I submit, however, to your consideration, whether a power to postpone the meeting of Congress, without passing the time fixed by the constitution, upon such occasions, would not be a useful amendment to the law of one thousand seven hundred and ninety-four.

Although I cannot yet congratulate you on the re-establishment of peace in Europe, and the restoration of security to the persons and properties of our citizens from injustice and violence at sea, we have nevertheless abundant cause of gratitude to the Source of Benevolence and Influence, for interior tranquillity and personal security, for propitious seasons, prosperous agriculture, productive fisheries, and general improvements; and, above all, for a rational spirit of civil and religious liberty, and a calm, but steady determination to support our sovereignty, as well as our moral and religious principles, against all open and secret attacks.

Our Envoys Extraordinary to the French Republic embarked, one in July, the other early in August, to join their colleague in Holland.[24] I have received intelligence of the arrival of both of them in Holland, from whence they all proceeded on their journey to Paris, within a few days of the nineteenth of September. Whatever may be the result of this mission, I trust that nothing will have been omitted on my part, to conduct the negotiation to a successful conclusion, on such equitable terms as may be compatible with the safety, honor, and interests of the United States. Nothing, in the mean time, will contribute so much to the preservation of peace, and the attainment of justice, as a manifestation of that energy and unanimity of which, on many former occasions, the people of the United States have given such memorable proofs, and the exertion of those resources for national defence, which a beneficent Providence has kindly placed within their power.

It may be confidently asserted, that nothing has occurred since the adjournment of Congress, which renders inexpedient those precautionary measures recommended by me to the consideration of the two Houses, at the opening of your late extraordinary session. If that system was then prudent, it is more so now, as increasing depredations strengthen the reasons for its adoption.

Indeed, whatever may be the issue of the negotiation with France, and whether the war in Europe is or is not to continue, I hold it most certain that perfect tranquillity and order will not soon be obtained. The state of society has so long been disturbed; the sense of moral and religious obligations so much weakened; public faith and national honor have been so impaired; respect to treaties has been so diminished, and the law of nations has lost so much of its force; while pride, ambition, avarice, and violence, have been so long unrestrained, there remains no reasonable ground on which to raise an expectation, that a commerce, without protection or defence, will not be plundered.

The commerce of the United States is essential, if not to their existence, at least to their comfort, their growth, prosperity, and happiness. The genius, character, and habits of the people are highly commercial; their cities have been founded, and exist, upon commerce; our agriculture, fisheries, arts, and manufactures, are connected with and depend upon it; in short, commerce has made this country what it is, and it cannot be destroyed or neglected without involving the people in poverty and distress; great numbers are directly and solely supported by navigation—the faith of society is pledged for the preservation of the rights of commercial, and seafaring, no less than of the other citizens. Under this view of our affairs, I should hold myself guilty of a neglect of duty, if I forbore to recommend that we should make every exertion to protect our commerce, and to place our country in a suitable posture of defence, as the only sure means of preserving both.

I have entertained an expectation, that it would have been in my power, at the opening of this session, to have communicated to you the agreeable information of the due execution of our treaty with His Catholic Majesty, respecting the withdrawing of his troops from our territory, and the demarkation of the line of limits; but by the latest authentic intelligence, Spanish garrisons were still continued within the limits of our country, and the running of the boundary line had not been commenced. These circumstances are the more to be regretted, as they cannot fail to affect the Indians in a manner injurious to the United States; still, however, indulging the hope that the answers which have been given, will remove the objections offered by the Spanish officers to the immediate execution of the treaty, I have judged it proper that we should continue in readiness to receive the posts, and to run the line of limits. Further information on this subject will be communicated in the course of the session.

In connection with the unpleasant state of things on our western frontier, it is proper for me to mention the attempts of foreign agents to alienate the affections of the Indian nations, and to excite them to actual hostilities against the United States; great activity has been exerted by these persons, who have insinuated themselves among the Indian tribes, residing within the territory of the United States, to influence them, to transfer their affections and force to a foreign nation, to form them into a confederacy, and prepare them for war, against the United States.

Although measures have been taken to counteract these infractions of our rights, to prevent Indian hostilities, and to preserve their attachment to the United States, it is my duty to observe, that, to give a better effect to these measures, and to obviate the consequences of a repetition of such practices, a law, providing adequate punishment for such offences, may be necessary.

The Commissioners appointed under the fifth article of the Treaty of Amity, Commerce, and Navigation, between the United States and Great Britain, to ascertain the river, which was truly intended, under the name of the St. Croix, mentioned in the Treaty of Peace, met at Passamaquoddy Bay in October, 1796, and viewed the mouths of the rivers in question, and the adjacent shores and islands; and being of opinion, that actual surveys of both rivers to their sources, were necessary, gave the agents of the two nations instructions for that purpose, and adjourned to meet at Boston in August; they met; but the surveys, requiring more time than had been supposed, and not being then completed, the Commissioners again adjourned to meet at Providence, in the State of Rhode Island, in June next, when we may expect a final examination and decision.

The Commissioners appointed in pursuance of the sixth article of the treaty, met at Philadelphia in May last, to examine the claims of British subjects, for debts contracted before the peace, and still remaining due to them, from citizens or inhabitants of the United States. Various causes have hitherto prevented any determinations; but the business is now resumed, and doubtless will be prosecuted without interruption.

Several decisions on the claims of the citizens of the United States, for losses, and damages, sustained by reason of irregular and illegal captures, or condemnations, of their vessels or other property, have been made by the Commissioners in London, conformably to the seventh article of the treaty; the sums awarded by the Commissioners have been paid by the British Government; a considerable number of other claims, where costs and damages, and not captured property, were the only objects in question, have been decided by arbitration, and the sums awarded to the citizens of the United States have also been paid.

The Commissioners appointed agreeably to the 21st article of our Treaty with Spain, met at Philadelphia in the summer past, to examine and decide on the claims of our citizens for losses they have sustained in consequence of their vessels and cargoes having been taken by the subjects of His Catholic Majesty, during the late war between Spain and France; their sittings have been interrupted, but are now resumed.

The United States being obligated to make compensation for the losses and damages sustained by British subjects, upon the award of the Commissioners acting under the sixth article of the Treaty with Great Britain, and for the losses and damages sustained by British subjects, by reason of the capture of their vessels and merchandise, taken within the limits and jurisdiction of the United States, and brought into their ports, or taken by vessels originally armed in ports of the United States, upon the awards of the Commissioners acting under the seventh article of the same treaty, it is necessary that provision be made for fulfilling these obligations.

The numerous captures of American vessels by cruisers of the French Republic, and of some by those of Spain, have occasioned considerable expenses, in making and supporting the claims of our citizens before their tribunals. The sums required for this purpose have, in divers instances, been disbursed by the Consuls of the United States; by means of the same captures, great numbers of our seamen have been thrown ashore in foreign countries, destitute of all means of subsistence, and the sick, in particular, have been exposed to grievous suffering.

The Consuls have, in these cases also, advanced moneys for their relief; for these advances they reasonably expect reimbursements from the United States. The Consular act relative to seamen requires revision and amendment; the provisions for their support in foreign countries, and for their return, are found to be inadequate, and ineffectual. Another provision seems necessary to be added to the Consular act; some foreign vessels have been discovered sailing under the flag of the United States, and with forged papers. It seldom happens that the Consuls can detect this deception, because they have no authority to demand an inspection of the registers and sea letters.

Gentlemen of the House of Representatives:

It is my duty to recommend to your serious consideration those objects which, by the constitution, are placed particularly within your sphere—the national debt and taxes.

Since the decay of the feudal system, by which the public defence was provided for, chiefly at the expense of individuals, a system of loans has been introduced. And as no nation can raise, within the year, by taxes, sufficient sums for its defence, and military operations in time of war, the sums loaned and debts contracted have necessarily become the subjects of what have been called funding systems. The consequences arising from the continued accumulation of public debts in other countries, ought to admonish us to be careful to prevent their growth in our own. The national defence must be provided for as well as the support of Government; but both should be accomplished, as much as possible, by immediate taxes, and as little as possible by loans. The estimates for the services for the ensuing year will, by my direction, be laid before you.

Gentlemen of the Senate, and Gentlemen of the House of Representatives:

We are met together at a most interesting period; the situations of the principal powers of Europe are singular and portentous: connected with some by treaties and with all by commerce, no important event there can be indifferent to us; such circumstances call with peculiar importunity, not less for a disposition to unite in all those measures on which the honor, safety, and prosperity of our country depend, than for all the exertions of wisdom and firmness.

In all such measures you may rely on my zealous and hearty concurrence.

JOHN ADAMS.

United States, November 23, 1797.

Ordered, That Messrs. Stockton, Laurance, and Livermore, be a committee to report the draft of an Address to the President of the United States, in answer to his Speech, this day, to both Houses of Congress; and that the Speech be printed for the use of the Senate.

Friday, November 24.

A message from the House of Representatives informed the Senate, that the House have agreed to so much of the resolution of the Senate, of the 22d instant, relative to the appointment of Chaplains, as is contained in the words following, to wit:

"Resolved, That two Chaplains be appointed to Congress for the present session, one by each House, who shall interchange weekly."

"The House have proceeded, by ballot, to the appointment of a Chaplain on their part; and, upon examining the ballots, a majority of the votes of the whole House was found in favor of the Rev. Ashbel Green."

Saturday, November 25.

Mr. Stockton, from the committee, reported the draft of an Address to the President of the United States, in answer to his Speech to both Houses of Congress, at the opening of the session; which was read.

On motion, that a number of copies be printed, under an injunction that no more should be struck off than may be necessary for the use of the Senate, it passed in the negative.

Ordered, That the Secretary furnish such Senators as request it, with copies of this report.

Monday, November 27.

Henry Tazewell, from the State of Virginia, attended.

The Senate resumed the consideration of the report of the committee, of the draft of an Address in answer to the Speech of the President of the United States, to both Houses of Congress, at the opening of the session; which, being read in paragraphs, and amended, was adopted, as follows: