The Minister appointed to Spain proceeded, soon after his appointment, for Cadiz, the residence of the sovereign to whom he was accredited. In approaching that port, the frigate which conveyed him was warned off by the commander of the French squadron, by which it was blockaded, and not permitted to enter, although apprised, by the captain of the frigate, of the public character of the person whom he had on board, the landing of whom was the sole object of his proposed entry. This act, being considered an infringement of the rights of ambassadors and of nations, will form a just cause of complaint to the government of France, against the officer by whom it was committed.

The actual condition of the public finances more than realizes the favorable anticipations that were entertained of it at the opening of the last session of Congress. On the first of January, there was a balance in the Treasury of four millions two hundred and thirty-seven thousand four hundred and twenty-seven dollars and fifty-five cents. From that time to the thirtieth of September, the receipts amounted to upwards of sixteen millions one hundred thousand dollars, and the expenditures to eleven millions four hundred thousand dollars. During the fourth quarter of the year, it is estimated that the receipts will at least equal the expenditures, and that there will remain in the Treasury, on the first day of January next, a surplus of nearly nine millions of dollars.

On the first of January, eighteen hundred and twenty-five, a large amount of the war debt, and a part of the Revolutionary debt, become redeemable. Additional portions of the former will continue to become redeemable annually, until the year eighteen hundred and thirty-five. It is believed, however, that, if the United States remain at peace, the whole of that debt may be redeemed, by the ordinary revenue of those years, during that period, under the provision of the act of March third, eighteen hundred and seventeen, creating the sinking fund; and in that case, the only part of the debt that will remain, after the year eighteen hundred and thirty-five, will be the seven millions of five per cent. stock subscribed to the Bank of the United States, and the three per cent. Revolutionary debt, amounting to thirteen millions two hundred and ninety-six thousand and ninety-nine dollars and six cents, both of which are redeemable at the pleasure of the government.

The state of the army, and its organization and discipline, has been gradually improving for several years, and has now attained a high degree of perfection. The military disbursements have been regularly made, and the accounts regularly and promptly rendered for settlement. The supplies of various descriptions have been of good quality, and regularly issued at all of the posts. A system of economy and accountability has been introduced into every branch of the service, which admits of little additional improvement. This desirable state has been attained by the act re-organizing the staff of the army, passed on the fourteenth of April, eighteen hundred and eighteen.

The moneys appropriated for Fortifications have been regularly and economically applied, and all the works advanced as rapidly as the amount appropriated would admit. Three important works will be completed in the course of this year; that is, Fort Washington, Fort Delaware, and the fort at the Rigolets, in Louisiana.

The Board of Engineers and the Topographical Corps have been in constant and active service, in surveying the coast, and projecting the works necessary for its defence.

The Military Academy has attained a degree of perfection in its discipline and instruction, equal, as is believed, to any institution of its kind in any country.

The money appropriated for the use of the Ordnance Department has been regularly and economically applied. The fabrication of arms at the national armories, and by contract with the Department, has been gradually improving in quality and cheapness. It is believed that their quality is now such as to admit of but little improve

ment.

The completion of the fortifications renders it necessary that there should be a suitable appropriation for the purpose of fabricating the cannon and carriages necessary for those works.

Under the appropriation of five thousand dollars for exploring the Western waters for the location of a site for a western armory, a commission was constituted, consisting of Colonel McRee, Colonel Lee, and Captain Talcott, who have been engaged in exploring the country. They have not yet reported the result of their labors, but it is believed that they will be prepared to do it at an early part of the session of Congress.

During the month of June last, General Ashley and his party, who were trading under a licence from the government, were attacked by the Ricarees, while peaceably trading with the Indians, at their request. Several of the party were killed and wounded, and their property taken or destroyed.

Colonel Leavenworth, who commanded Fort Atkinson, at the council Bluffs, the most western post, apprehending that the hostile spirit of the Ricarees would extend to other tribes in that quarter, and that thereby the lives of the traders on the Missouri, and the peace of the Frontier, would be endangered, took immediate measures to check the evil.

With a detachment of the regiment stationed at the Bluffs, he successfully attacked the Ricaree village, and it is hoped that such an impression has been made on them, as well as on the other tribes on the Missouri, as will prevent a recurrence of future hostility.

The report of the Secretary of War, which is herewith transmitted, will exhibit, in greater detail, the condition of the Department in its various branches, and the progress which has been made in its administration, during the three first quarters of the year.

I transmit a return of the Militia of the several states, according to the last reports which have been made by the proper officers in each, to the Department of War. By reference to this return, it will be

seen that it is not complete, although great exertions have been made to make it so. As the defence, and even the liberties, of the country, must depend, in times of imminent danger, on the militia, it is of the highest importance, that it be well organized, armed, and disciplined, throughout the Union. The report of the Secretary of War shews the progress made during the three first quarters of the present year, by the application of the fund appropriated for arming the militia. Much difficulty is found in distributing the arms according to the act of Congress providing for it, from the failure of the proper DepartThe act of ments in many of the states, to make regular returns. May the twelfth, one thousand eight hundred and twenty, provides that the system of tactics and regulations of the various corps in the regular army, shall be extended to the militia. This act has been very imperfectly executed, from the want of uniformity in the organization of the militia, proceeding from the defects of the system itself, and especially in its application to that main arm of the public defence. It is thought that this important subject, in all its branches, merits the attention of Congress.

The report of the Secretary of the Navy, which is now communicated, furnishes an account of the administration of that Department, for the three first quarters of the present year, with the progress made in augmenting the Navy, and the manner in which the vessels in commission have been employed.

The usual force has been maintained in the Mediterranean Sea, the Pacific Ocean, and along the Atlantic Coast, and has afforded the necessary protection to our commerce in those seas.

In the West Indies and the Gulf of Mexico, our naval force has been augmented, by the addition of several small vessels, provided for by the act authorizing an additional naval force for the suppression of piracy," passed by Congress at their last session. That armament has been eminently successful in the accomplishment of its object. The piracies by which our commerce in the neighborhood of the Island of Cuba had been afflicted, have been repressed, and the confidence of our merchants, in a great measure, restored.

The patriotic zeal and enterprize of Commodore Porter, to whom the command of the expedition was confided, has been fully seconded by the officers and men under his command. And, in reflecting with high satisfaction, on the honorable manner in which they have sustained the reputation of their country and its navy, the sentiment is alloyed only by a concern, that, in the fulfilment of that arduous service, the diseases incident to the season, and to the climate in which it was discharged, have deprived the nation of many useful lives, and among them of several officers of great promise.

In the month of August, a very malignant fever made its appearance at Thompson's Island, which threatened the destruction of our station there. Many perished, and the commanding officer was severely attacked. Uncertain as to his fate, and knowing that most of the medical officers had been rendered incapable of discharging their duties, it was thought expedient to send to that post an officer of rank

and experience, with several skilful surgeons, to ascertain the origin of the fever, and the probability of its recurrence there in future seasons; to furnish every assistance to those who were suffering, and, if practicable, to avoid the necessity of abandoning so important a station. Commodore Rodgers, with a promptitude which did him honor, cheerfully accepted that trust, and has discharged it in the manner anticipated from his skill and patriotism. Before his arrival, Com. modore Porter, with the greater part of the squadron, had removed from the Island, and returned to the. United States, in consequence of the prevailing sickness. Much useful information has however been obtained, as to the state of the Island, and great relief afforded to those who had been necessarily left there.

Although our expedition, co-operating with an invigorated administration of the government of the Island of Cuba, and with the corresponding active exertions of a British naval force in the same seas, have almost entirely destroyed the unlicensed piracies from that island, the success of our exertions has not been equally effectual to suppress the same crime, under other pretences and colors, in the neighboring island of Porto Rico. They have been committed there under the abusive issue of Spanish commissions. At an early period of the present year, remonstrances were made to the governor of that island, by an agent, who was sent for the purpose, against those outrages on the peaceful commerce of the United States, of which many had occurred. That officer, professing his own want of authority to make satisfaction for our just complaints, answered only by a reference of them to the government of Spain. The minister of the United States to that court was specially instructed to urge the necessity of the immediate and effectual interposition of that government, directing restitution and indemnity for wrongs already committed, and interdicting the repetition of them. The Minister, as has been seen, was debarred access to the Spanish Government, and, in the mean time, several new cases of flagrant outrage have occurred, and citizens of the United States in the Island of Porto Rico have suffered, and others been threatened with assassination, for asserting their unquestionable rights, even before the lawful tribunals of the country.

The usual orders have been given to all our public ships, to seize American vessels engaged in the Slave trade, and bring them in for adjudication, and I have the gratification to state, that not one so employed has been discovered, and there is good reason to believe that our flag is now seldom, if at all, disgraced by that traffic.

It is a source of great satisfaction, that we are always enabled to recur to the conduct of our Navy with pride and commendation. As a means of national defence. it enjoys the public confidence, and is steadily assuming additional importance. It is submitted, whether a more efficient and equally economical organization of it might not, in several respects, be effected. It is supposed that higher grades than now exist by law, would be useful. They would afford well-merited rewards to those who have long and faithfully served their country; present the best incentives to good conduct, and the best means of en

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suring a proper discipline; destroy the inequality in that respect between the military and naval services; and relieve our officers from many inconveniences and mortifications, which occur when our vessels meet those of other nations-ours being the only service in which such grades do not exist.

A report of the Postmaster General, which accompanies this communication, will show the present state of the Post Office Department, and its general operations for some years past.

There is established by law eighty-eight thousand six hundred miles of post roads, on which the mail is now transported eighty-five thousand seven hundred miles; and contracts have been made for its transportation on all the established routes, with one or two exceptions. There are five thousand two hundred and forty post offices in the Union, and as many postmasters. The gross amount of postage which accrued from the first of July, one thousand eight hundred and twenty-two, to the first of July, one thousand eight hundred and twenty-three, was one million one hundred and fourteen thousand three hundred and forty-five dollars and twelve cents. During the same period, the expenditures of the Post Office Department amounted to one million one hundred and sixty-nine thousand eight hundred and eighty-five dollars and fifty-one cents; and consisted of the following items: compensation to postmasters, three hundred and fifty-three thousand nine hundred and ninety-five dollars and ninetyeight cents; incidental expenses, thirty thousand eight hundred and sixty-six dollars and thirty-seven cents; transportation of the mail, seven hundred and eighty-four thousand six hundred dollars and eight cents: payments into the treasury, four hundred and twenty-three dollars and eight cents. On the first of July last, there was due to the Department, from postmasters, one hundred and thirty-five thousand two hundred and forty-five dollars and twenty-eight cents; from late postmasters and contractors. two hundred and fifty-six thousand seven hundred and forty-nine dollars and thirty-one cents; making a total amount of balances due to the Department. of three hundred and ninety-one thousand nine hundred and ninety-four dollars and fiftynine cents. These balances embrace all delinquencies of postmasters and contractors, which have taken place since the organization of the Department. There was due by the Department to contractors, on the first day of July last. twenty-six thousand five hundred and fortyeight dollars and sixty-four cents.

The transportation of the mail, within five years past, has been greatly extended, and the expenditures of the Department proportionably increased. Although the postage, which has accrued within the last three years, has fallen short of the expenditures two hundred and sixty-two thousand eight hundred and twenty-one dollars and forty-six cents. it appears that collections have been made, from the outstanding balances, to meet the principal part of the current demands.

It is estimated, that not more than two hundred and fifty thousand dollars of the above balances can be collected, and that a considerable