and household manufacture are advancing among them more rapidly with the southern than the northern tribes, from circumstances of soil and climate: and one of the two great divisions of the Cherokee nation have now under consideration to solicit the citizenship of the United States, and to be identified with us in laws and government, in such progressive manner as we shall think best.

In consequence of the appropriations of the last session of congress for the security of our sea-port towns and harbours, such works of defence have been erected as seemed to be called for by the situation of the several places, their relative importance, and the scale of expence indicated by the amount of the appropriation. These works will chiefly be finished in the course of the present season, except at New York and New Orleans, where most was to be done; and although a great proportion of the last appropriation has been expended on the former place, yet some further views will be submitted to congress for rendering its security entirely adequate against naval enterprize. A view of what has been done at several places, and of what is proposed to be done, shall be communicated as soon as the several reports are received.

Of the gun-boats authorized by the act of December last, it has been thought necessary to build only 103 in the present year; these, with those before possessed, are sufficient for the harbours and waters most exposed, and the residue will require little time for their construction, when it shall be deemed necessary.

Under the act of the last session, for raising an additional military force, so many officers were imme

diately appointed as were necessary for carrying on the business of recruiting; and in proportion as it advanced, others have been added. We have reason to believe their success has been satisfactory, although such returns have not been received, as enable me to present you a statement of the numbers engaged.

I have not thought it necessary, in the course of the last season, to call for any general detachments of militia, or of volunteers, under the Jaws passed for that purpose; for the ensuing season, however, they will be required to be in readiness, should their service be wanted. Some small and special detachments have been necessary to maintain the laws of embargo, on that portion of our northern frontier which offered peculiar facilities for invasion; but these were replaced as soon as it could be done, by bodies of new recruits. By the aid of these, and of the armed vessels called into service in other quarters, the spirit of disobedience and abuse, which manifested itself early, and with sensible effect, while we were unprepared to meet it, has been considerably repressed.

Considering the extraordinary character of the times in which we live, our attention should unremittingly be fixed on the safety of our country. For a people who are free, and who mean to remain so, a well-organized and armed militia is their best security. It is therefore incumbent on us, at every meeting, to revise the condition of the militia, and to ask ourselves if it is prepared to repel a powerful enemy at every point of our territories exposed to invasion Some of the states have paid a laudable attention to this object, but every degree of neglect is to be found

among

Under the acts of March 11, and April 23, respecting arms, the difficulty of procuring them from abroad, during the present situation and dispositions of Europe, induced us to direct our whole efforts to the means of internal supply; the public factories have, therefore, been enlarged, additional machineries erected, and, in proportion as artificers can be found or formed, their effect, already more than doubled, may be increased so as to keep pace with the yearly increase of the militia. The annual sums appropriated by the latter act have been directed to the encouragement of private factories of arms; and contracts have been entered into with individual undertakers, to nearly the amount of the first year's appropriation.

The suspension of our foreign commerce, produced by the injustice of the belligerent powers, and the consequent losses and sacrifices of our citizens, are subjects of just concern. The situation into which we have thus been forced, has impelled us to apply a portion of our industry and capital to internal manufactures and improvements. The extent of this conversion is daily increasing, and little doubt remains that the establishments formed and forming, will, under the auspices of cheaper materials and subsistence, the freedom of labour from taxation with us, and of protecting duties and prohibitions, become permanent. The commerce with

1908.

the Indians too, within our own boundaries, is likely to receive abundant aliment from the same internal source, and will secure to them peace and the progress of civilization, undisturbed by practices hostile to both.

The accounts of the receipts and expenditures during the year ending on the 30th day of September last, being not yet made up, a correct statement will hereafter be transmitted from the treasury. In the mean time, it is ascertained, that the receipts have amounted to near eighteen millions of dollars, which, with the eight millions and a half in the treasury at the beginning of the year, have enabled us, after meeting the current demands and interests incurred, to pay two millions three hundred thousand dollars of the principal of our funded debt, and left us in the treasury on that day nearly fourteen millions of dollars; of these, five millions three hundred and fifty thousand dollars will be necessary to pay what will be due on the first day of January next, which will complete the reimbursement of the eight per cent. stock. These payments, with those made in the six years and a half preceding, will have extinguished thirty-three millions five hundred and eighty thousand dollars of the principal of the funded debt, being the whole which could be paid or purchased within the limits of the law, and of our contracts; and the amount of principal thus discharged will have liberated the revenue from about two millions of dollars of interest, and added that sum annually to the disposable surplus. The probable accumulation of the surplusses of revenue, beyond what can be applied to the payment of the public debt, whenever the freedom and (R)

safety

thereon, and also our opinion, whether any, or what further proceeding should be had thereupon.

We have, at several meetings; perused and considered your majesty's orders and instructions, as transmitted to us by the right honourable lord Castlereagh, your majesty's principal secretary of state, together with sundry letters, and other papers, therewith transmitted:-And have heard and examined lieutenant-general sir Hew Dalrymple, sir Harry Burrard, and sir Arthur Wellesley, and other principal officers employed on the said expedition, with such witnesses as any of them desired :And also such other persons as seemed to us most likely to give any material information:-And in order that your majesty may be fully possessed of every circumstance which has appeared in the course of this inquiry,

We beg leave to lay before your majesty the whole of our examinations and proceedings, to this our report annexed. And upon the most diligent and careful review of the whole matter, we do, in further obedience to your royal command, most humbly report to your majesty:-[Here follows an abstract of the evidence.]

The report then proceeds as follows:

It appears that some of the principal advantages to arise from the convention were in contemplation of the generals.

That it immediately liberated the kingdom of Portugal from the dominion of the French, thereby restoring to the inhabitants their capital and fortresses, their principal sea-ports, their personal liberty, property, religion, and established government.

That it relieved a great extent of

Spanish frontier from all apprehensions of an enemy, and the whole of Spain from that of hav ing an enemy behind them, and allowed all parts of Spain to take more effective measures for its ge-neral defence; as well as permitted Portugal immediately to contribute for their mutual support.

That it enabled the British army immediately to enter Spain, if required, by central routes, while it transported the French force to a very distant part of their own coast, far removed from the Spanish frontier.

That it immediately released 4000 Spanish soldiers, and sent them to the defence of Catalonia; it also released from the Portuguese, frontier another body of 2000 Spanish troops. The Portuguese army also became disposable for the common cause.

To the men of war and transports, which, at this season of the year, with great difficulty could keep their station near the coast, and on whose presence the supplies and operations of the army depended, the opening of the Tagus afforded immediate shelter.

It is further urged by the generals, as much more than probable, that if the enemy had been required to lay down their arms, and surrender prisoners of war, they would not have complied: but if driven to extremity that they would have retired upon Lisbon, reinforced by 6000 Russians, who must have been thus compelled to share their fate; and in the temporary attack of this city much calamity and destruction must have ensued.

Also that masters of the Russian fleet, and of the boats and shipping in the Tagus, the passage of the river was ensured to them: that (R2)

they

they could have defended for a considerable time its east bank, and prevented the occupation of the Tagus by our fleet: that, with the strong fortresses of Alantejo in their possession, they could have protracted a destructive war, to the great detriment of Portugal and the Spanish cause, by finding employment for the greater part of the British army, for the remainder of the year, and whose difficulties in such operation must have been very considerable.

It appears that the forts on the Tagus were taken possession of on the 2d of September by the British troops, and the port was then opened to our shipping: that on the 5th the army had its right at St. Juliens, and its left on the heights of Bellas: that on the 8th or 9th a British corps marched into Lisbon to ensure the tranquillity of that city, during the embarkation of the enemy, who were all sent off (except the last division, purposely detained) before the end of the month, and part of the British army was then actually on its route towards the Spanish frontiers.

It appears, that during the discussion, and afterwards during the execution of the convention, much firmness was shewn in resisting the pretensions and interpretations of the enemy; every stipulation being restricted to its fair, honour. able, and grammatical meaning, and the French not allowed to carry off, but obliged to disgorge plunder, which they affected to consider as private property.

It appears that pains were taken to misrepresent and raise a clamour in Portugal against the convention; but when it was generally known, and its effects felt, the people of Lisbon, and of the country, seem to have expressed their gratitude

and thanks for the benefits attending it.

It has been urged by sir Hew Dalrymple, and allowed by majorgeneral Spencer, that in Egypt, in 1801 (after the victory of the 21st of March, the French having thrown their whole force into Alexandria and Grand Cairo, about 10,000 men in each place), that at the siege of Alexandria, in August, the country was in full possession of the British and Turks. The garrison cut off from every possibility of relief, and could only have held out some days, when a capitulation was granted to it, September the 2d, as favourable as the convention of Cintra to the army of Junot (of 24,000 French, and 6000 Russians), and perfectly similar to all the chief articles of men, baggage, artillery, conveyance, &c. also that the same terms had been previously granted to the garrison of Cairo, under much the same circumstances. By these two conventions, or capitulations, above 20,000 French evacuated Egypt, and the British army were left disposable for other purposes.

On the whole, it appears that the operations of the army under Sir Arthur Wellesley, from his landing in Mondego bay the 1st of August, until the conclusion of the action at Vimiera, the 21st of August, were highly honourable and successful, and such as might be expected from a distinguished general, at the head of a British army of 13,000 men, augmented on the 20th and 21st to 17,000, deriving only some small aid from a

Portuguese corps (1600 men), and against whom an enemy, not exceeding 14,000 men in the field, was opposed; and this before the arrival of a very considerable reinforcement from England, under Lieutenant