America, with other differences on
important interests, were adjusted to the satisfaction of both parties.
No agreement has yet been entered into respecting the commerce between
the United States and the British dominions in the West Indies and on
this continent. The restraints imposed on that commerce by Great
Britain, and reciprocated by the United States on a principle of
defense, continue still in force.

The negotiation with France for the regulation of the commercial
relations between the two countries, which in the course of the last
summer had been commenced at Paris, has since been transferred to this
city, and will be pursued on the part of the United States in the spirit
of conciliation, and with an earnest desire that it may terminate in an
arrangement satisfactory to both parties.

Our relations with the Barbary Powers are preserved in the same state
and by the same means that were employed when I came into this office.
As early as 1801 it was found necessary to send a squadron into the
Mediterranean for the protection of our commerce and no period has
intervened, a short term excepted, when it was thought advisable to
withdraw it. The great interests which the United States have in the
Pacific, in commerce and in the fisheries, have also made it necessary
to maintain a naval force there. In disposing of this force in both
instances the most effectual measures in our power have been taken,
without interfering with its other duties, for the suppression of the
slave trade and of piracy in the neighboring seas.

The situation of the United States in regard to their resources, the
extent of their revenue, and the facility with which it is raised
affords a most gratifying spectacle. The payment of nearly $67,000,000
of the public debt, with the great progress made in measures of defense
and in other improvements of various kinds since the late war, are
conclusive proofs of this extraordinary prosperity, especially when it
is recollected that these expenditures have been defrayed without a
burthen on the people, the direct tax and excise having been repealed
soon after the conclusion of the late war, and the revenue applied to
these great objects having been raised in a manner not to be felt. Our
great resources therefore remain untouched for any purpose which may
affect the vital interests of the nation. For all such purposes they are
inexhaustible. They are more especially to be found in the virtue,
patriot