vernment; proposes to submit the question of territory to nego. ciation; and denies any knowledge of the existence of such troops as those stated, in Kentucky. With respect to the exclusion of the revolutionary flag, he affirms, that the government of the United States has by a general rule authorized the admission into its ports of all flags except those of pirates, and therefore is not disposed to prohibit the reception of the flag of the colonies, which have established independent

states.

The Spanish minister had afterwards an interview with the President, the result of which is said to have been so little satisfactory, that he left Washington, declaring a resolution not to

return.

The decline of the American manufactures since the peace had restored the commercial communication with Great Britain, caused memorials to be presen ed to the House of Representatives from the persons concerned in the cotton fabrics, which were referred to a committee. In February they gave in their report, which was prolix and rhetorical, but contained some facts and observations deserving of notice. The increase of the cotton manufactory of the United States within a few years is very striking. The number of bales ma

nufactured in 1800 is stated at no more than 500: in 1810 it had risen to 10,000; and in 1815 to 90,000. This rapid advance was obviously occasioned by the want of competition; for the goods here fabricated could not contend at an open market in

cheapness with those imported from Europe or India. "The American manufacturers (says the report) expect to meet with all the embarrassments which a jealous and monopolizing policy can suggest-and they have good reason for their apprehensions. The foreign manufacturers and merchants will employ all the powers of ingenuity and art to prevent the American establishments from taking root, and by the allowance of bounties and drawbacks they will be furnished with additional means for carrying on the contest." It is further stated, that the balance due for British manufactures is more than 17 millions of dollars, a sun greater than the value of all the exports from the United States to foreign countries.

In conclusion, the committee propose the following resolution: "That from and after the 30th of June next, in lieu of the duties now authorised by law, there be levied on cotton goods imported into the United States from any foreign country what- per centum valorem, being not less than cents per square yard.”

ever

In the summer, the American government issued an official notice, that no private bank paper would be taken after Feb. 20th 1817, in payment for duties, taxes, &c. due to government, unless such bank was prepared to pay its notes in cash when required, and unless it took the treasury notes at par. Mr. Dallas, secretary of the treasury, in a circular document of office dated July 22d, addressed the state banks for the purpose of facili

tating the execution of the resolution passed to resume cash payments, the objection to which payments, he says, rest chiefly with the banks of the middle states. A notice is then given by the treasury, for the consideration of the state banks, recommending as a preliminary measure, that all small notes under five dollars should not be taken after October 1st, unless the bank issuing it should pay the amount when required. Several banks sent deputies to Philadelphia, in order to consult on the present state of the currency; and it is said in the New York paper, that the delegates from the banks of New York, Philadelphia, Baltimore, and Virginia, agreed on resuming payments in specie, on July 1st, 1817.

A notice issued from the Treasury department on Sept. 12th, mentions, that the payment of small sums in coin on October 1st, has been generally declined by the state banks; and as an arrangement for supplying the people with a requisite medium to pay their duties and taxes independently of those banks cannot conveniently be made until the bank of the United States shall be in operation, no further measures will be taken with a view to the collection of the revenue in coin on the above day. In pursuance, however, of a resolution of Congress on April 29th, notice is given, that from the 27th of February 1817, all debts or sums of money becoming due to the United States must be paid in the legal currency, or treasury notes, or notes of the bank of the United States, or in notes of banks paya

ble on demand in the legal currency, and not otherwise.

Some of the earlier American papers speak of bickerings on the Canadian lakes between the vessels of the two powers; which will be very liable to arise in tracts of divided sovereignty, and which have so lately been the theatre of severe contest. There does not, however, appear any present danger of serious differences from this source. At the other extremity of the territory of the United States, where they come in contact by land and sea with the Transatlantic dominion of Spain, the hazard of national quarrel is much more urgent, especially on the undetermined limits of maritime possession ; and an act of hostility in the Gulf of Mexico practised by a Spanish squadron upon an American vessel, excited much indignation in the United States towards the close of the year. But instead of entering upon the dubious details of this and other circumstances related in the public papers, we shall have recourse to the President's speech for a concluding view of the general state of this republic.

On December 3d, the President transmitted a message to both Houses of Congress, of which the following were the most important particulars. It began with adverting to the peculiarity of the seasons, which had threatened some districts with scarcity; but upon the whole, the aggregate resources were said to be more than sufficient for the aggregate wants. It was then regretted that a depression had been experienced by particular branches

branches of manufacture, and by a portion of the navigation of the country, The first was imputed to an excess of imported merchandize, and it was hinted, that the native manufacturing establishments ought not to be suffered to sink too low. The decline in navigation was ascribed to the operation of the British navigation laws. The late convention of London had equalized the laws of the two countries with regard to the intercourse between the American ports and the British ports in Europe; but the British government had enforced its regulations, prohibiting a trade between its colonies and the United States in American vessels, whilst it permitted a trade carried on in British vessels, thus favouring its own navigation at the expense of the American. The reasonableness of the rule of reciprocity in one branch of commercial intercourse, as well as in the other, had been urged upon the British cabinet, but it had declined entering into any negociation on the subject.

The president then stated, in general, that the United States remained in amity with foreign powers. An occurrence, however, had lately taken place in the Gulf of Mexico, which, if sanctioned by the Spanish government, might make an exception as to that power. A public armed vessel had been attacked by an overpowering force under a Spanish commander; and the American flag, with the officers and crew, had been insulted in a manner calling for prompt reparation. This had been demanded; and the Spanish minister in the

United States had given the strongest assurances that no hostile order could have emanated from his government. Differences existing between the Dey of Algiers and the government of the United States were then noticed, the result of which was as yet unknown; but reliance was expressed upon their fleet in the Mediterranean, to protect their commerce if treated with hostility by the Algerines.

The Indian tribes within the limits of the United States were said to be disposed to remain in peace. From several of them purchases of land had been made, favourable to the security of the frontier settlements; and in some instances, where the titles of the native tribes were dubious, their claims had been extinguished by double purchase, rather than entering into contests, and employing force against a feeble people.

Among the objects of national improvement recommended to the consideration of Congress were the re-organization of the militia upon a more effectual plan, the establishing of an uniformity of weights and measures, the founding of an university within the government territory, and a revisal of the criminal code.

With respect to the finances of the state, it was mentioned as a subject of great gratification to find that even in the short period since the return of peace, the revenue had far exceeded all the current demands upon the treasury, and that it will afford an ample fund for the early extinguishment of the public debt. Some particulars were entered into relative to this topic; and the ordinary annual expenses of go

vernment

vernment in every department were estimated at less than 20 millions of dollars, while the permanent revenue arising from the existing sources was stated at about 25 millions. The measures taken for regulating the currency were alluded to, in which the Bank of the United States would be an important auxiliary.

The President concluded his message with self-congratulation on the condition of that country, his public services in which he was soon to quit; and certainly, at the present period, it would not be easy to name the ruler of any other considerable state, who could offer a prospect so cheering, of difficulties overcome, and the means of future prosperity.

CHAPTER

T

HE condition of Spanish America is still as unsettled as ever; and whilst the weakness of the mother country prevents any vigorous efforts for recovering its authority over its revolted colonies, their intestine divisions and want of concert have disabled them from adopting measures which could establish their independence upon a firm footing. In the meantime the war, preserving its character of ferocity, has dwindled into petty and desultory actions, the relations of which are obscured by all the contradictions and exaggerations of narratives appearing through the medium of party. A few facts, however, may be collected, which will afford an idea of the general state of affairs in this part of the world.

Carthagena, which had long been under sieges by the royalist General Morillo, was at length reduced to such distress by famine, that it was evacuated on December 6th, 1815, by the garrison, who, after spiking the guns, embarked in thirteen vessels, and forcing their way through the

enemy's gun-boats, made for Aux Cayes. Several British subjects were arrested on the entrance of the Spaniards, and marched into the interior. Morillo afterwards undertook an expedition against Santa Fe, the capital of New Granada, which was evacuated by the insurgents without resistance, and all that part of the province was restored to the royal authority. That General then declared in a state of blockade, all the ports from Santa Martha to the river Atrato, except the two ports of Santa Martha and Portobello. A proclamation published at the Caraccas by the captain general Moxo relative to the blockade of the island of Margarita, affords a striking instance of the ferocious spirit with which this war was waged. Every Spanish vessel encountered in carrying men, arms, ammunition, and naval stores, to the insurgents in Margarita shall be confiscated, the master and other principals hung up at the yard arm, and of the sailors, if not found so culpable as the others, one out of five to undergo the same fate: the same

also