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 the 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 sufferings.  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 debts and taxes.

Since the decay of the feudal system, by which the public defense was provided for chiefly at the expense of individuals, the system of loans has been introduced, and as no nation can raise within the year by taxes sufficient sums for its defense 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 continual accumulation of public debts in other countries ought to admonish us to be careful to prevent their growth in our own.  The national defense 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 service of the ensuing year will by my direction be laid before you.