misconception appears to have taken place upon matter also of surprize, for if there were any fair this point. The question of retaliation on thel dealing in the transaction, no reason can be given French decrees is directly one between England by France tor not producing it; it is very desirable and France. In consequence of the extraordinary that it should be produced, if such an instrument blockade of England, we have in our defence been be in existence, in order that we may know to what obliged to blockade France, and prohibit all trade extent the decrees have been repealed, if they really in French articles in recuhn for the prohibition by have been so in any respect. Mr. Russel, however, France of all trade in English articles. This mea- does not appear to have been in possession of it at sure of retaliation, it is wished, should operate on the date of his letter of last July. It is indeed be France alone, but from the trade carried on with come particularly interesting, that we should see France by america, i unavoidably operates al-o on this instrument since the publication of Mr. Rusher; it is a measure th destroy the French trade insel's correspondence with his own government, by return for the similar measure of France on which which it appears that really, and in fact, the French it is retaliatory and its acting on neutrals is an government did not release any American hip tak incidental effect of it, consequenr upon the submisen alter November 1, until they had become azsion of neutral to the original measures of the quainted with the president's proclamation, and en my against Great Bendin. It is, indeed, melan-that vessels have been taken so late as December 21, choly that the unnatural situation of Europe should in the direct voyage from this country to London; produce such a result, but i cannot see how this for until a copy of such instrument is produced, it can be considered a war upon American commerce, is impossible to know whether any other trave is when all other American trade but that which is allowed by France than that between her own de carried on with our enemy's ports in dence of a minions and the ports of the United States. blockade authorised by the laws of retaliation, is I have the honor to be, with the highest consideunaffected by i.. We complain that America does ration, sir, your most obedient humble servant, not resist the regulations of the Berlin and Mil.n AUG. J. FOSTER. decrees, and object to permitting the French to To the honorable James Monroe, &c. &c. MR. MONPCE TO MR. FOSTER. Department of state, January 14, 1812. SIR-1 have hau the honor to receive your letter of December 17th, and I embrace the first moment that I could command to make the observations which it suggests. It would have afo.ded great satisfaction to the president, to have found in the communicaden, some proof of a disposition in the Bitch govern ment to put an end to the differences susisung between our countries. I am sorry to be obligen to state, that it presents a new proof only of its determination to adhere to the policy to which they are jimputable. I have thought it nee、ssary thus to endeavor to se these two points in their true hight: the repeal oʻ You ou complain that the import of your former the law was asked, as being an unf iendly ineasure, letters has been misunderstood in two important partai in its operation against Greas B it in, and aci.cumstances: that you have been represented to prospect of retaliation was held out on its commer have demanded of the United States, a law for the cial operation, if continued. This is no demand on introduction of British goods into their ports, and the United States to ad uit British manufac:utes chat they should also undertake to force France to they are at liberty to continue that law, ondy as i eceive Brii-h manufactures into her harbors. is of an unfriendly nature, some restrictions of af You state that on the first point, it was your smuntar kind was to be expected from England; and intention only to remonstrate against the non-inwith respect to the alleged den and or forcing Br portation act, as partial in its operation, and untish goods, the property of neutrals, in o Penes iendly to Great Britain, on which account its reports, if the United States are willing to acquiesce peal was clained, and to intimate that if it was in the regulations of the French decrees unlawfully persevered in. Great Britain would be compested affecting England through them, they cannot surely to retaliate on the commerce of the United States, be surprised if we consider on selves as at liberrty by similar restrictions on her part. And on the to refuse permission to the French to pront by that second point, that you intended only to urge, that acquie-ence. in consequence of the extraordinary blockade of I will now, sir, take the opportunity of stating England, your government had been obiged to to you, that I have received from his majesty's blockade France, and to prouinic all trade in F. each secretary of state the correspondence of which you particles in return for the prohibition by France of d.d me the honor to transmit to me a copy in you ail trade in English articles, Jet.or dated October 17. My government have It is sufficient to remark on the first point, that not been able to see in it satisfactory proof of the on whatever ground the repeal of the non importa repeal of the French decrees, and dou whethe [tion act is required, the United States are jus ifted the trade carried or by licences between France and a ad vering to it, by the refusal of the Brush goAmerica, will not be re carded, even ne e, as proof overnment to repeal its orders in council; and it a the continuation of them in their fullest extent, for distinction is thus produced between Great Brita a if they were to any extent repealed, to that extent nd the other belligerent, it must be referred to the at least, no licence should be necessary, a licence difference of the conduct of the two parties. being given to allow what, but for that licence, On the second point, I have to observe, that the wont be prohibited. explanation given cannot be satisfactory, because The continued absence hitherto of any instruit does not meet the case now existing. France ment by which the repeal has been affected, is a did, it is true, declare a blockade of England, against the trade of the United States, and prohibit|restraint. It seems impossible to extract from it in ali trade in English articles on the high seas, but any respect, that the Berlin and Milan decrees are this b'ockade and prohisition no longer exist. i orce so far as they prohibit the trade between is true also, that a part of those decrees did prohibit the United States and England. I might here rea trade in English articles within her territorial peat that the French practice of granting licences jurisdiction; but this prohibition violates no nation to trade between the United States and France, may al rights, or neutral commerce, of the United have been intended in part, at least, as a security States. Sull your blockade and prohibition are against the simulated papers; the forging of which continued, in violation of the national and neutral was not suppressed in England. It is not to be inrights of the United States, on a pretext of realia erred from these remarks, that a trade by licence, tion, waien, it even applicable could only be aps one with which the United States are satisfied. plied to the former, and not to the latter interdicts They have the strongest objections to it, but these and it is required that France shall change her in-are founded on other principles than those suggestternal regulations against English trade, before ed in your note. England will change her external regulations against the trade of the United Sates. It is a cause of great surprize to the president, that your government has not seen in the corresBut you still insist that the French decrees are pondence of Mr. Russell which I had the honor to unrevoked, and urge in proof of it, a fact drawn communicate to you on the 17th of October last, from Mr. Rassel's correspondence, that some Ame and which has been lately transmitted to you by rican vessels have been taken since the first of No your government, sufficient proof of the repeal of vember in their route to England. It is a satisfache Berlin and Milan decrees independent of the tory answer to this remuk, that it appears by the conclusive evidence of the fact which that corresSame correspondence that every American vessel pondence afforded, it was not to be presumed from which had been taken in that trade the seizure of the intimation of the marquis of Wellesley, that if which rested on the Berlin and Milan deerees only, it was to be transmitted to you, to be taken into were, as soon as that fact was ascertained, delivered consideration in the depending discussions, that up to their owners. Might there not be otherg, ound it was of a nature to have no weight in these disalso, on which seizures might be made? Great cussion. war. Britain claims a right to seize for other causes, and The demand which you now make of a view of all nations admit it in the case of contraband of the order given by the French government to its If by the law of nations, one belligerent has cruizers, in consquence of the repeal of the French a right to seize neutral property in any case, the deerces, is a new proof of its indisposition to repeal other belligerent has the same right. Nor ought the orders in council. The declaration of the to overlook that the practice of counterfeiting A French government was, as has been heretofore obmerican pipers in England, which is well known served, a solemn and obligatory act, and as such to the continent, has, by impairing the faith due to entitled to the notice and respect of other govern American documents, done to the United States ments. If was incumbent on Great Britain, there. essential injury. Against this practice the minister fore, in fulfilment of her engagement, to have proof the United States at London, as will appear by vided that her orders in council should not have ref rence to his letter to the Marquis Welle ley of effect, after the time fixed for the cessation of the the 3d of May, 1810, made a formal representation, French decrees. A pretension in Great Britain to in pursuance of instructions from his government, keep her orders in force till she received satisfaction with an offer of every information possessed by him, of the practical compliance of France is utterly which might contribute to detect and suppress it. incompatible with her pledge. A doubt, founded It is painful to add that this communication was on any single act, however unauthorised, commitentirely disregarded. That Great Britain should ted by a French privateer, might, on that principle, complain of ac.s in France to which by her ne becoine a motive for delay and refusal. A suspicion glect, she was instrumental, and draw from them that such acts would be com.nitted, might have the proof in support of her orders in council, ought same effect; and in like manner her compliance certainly not to have been expected. And as might be withheld as long as the war continued.You remark also, that the practice of the French. But let me here remark, that if there was room for government to grant licences to certain American a question whether the French repeal did or did not vessels engaged in the trade between the United take effect, at the date announced by France, and States and France, is an additional proof that the equired by the United States, it cannot be alleged French decrees still operate in their fullest extent that the decrees have not ceased to operate since the On what principle this inference is drawn from that 2d of February last, as hitherto observed. fact, it is impossible for me to conceive. It was not the actual cessation of the decrees to violate our the object of the Berlin and Melan decrees to prohi neutral rights, was the only essential fact in the case, bit the trade between the United States and France. and has been long known to your government, the They were meant to prohibit the trade of the United orders in council from the date of that knowledge, States with Great Britain, which violated ourought to have ceased according to its own princineutral rights, and to prohibit the trade of Greatples and pledges. Britain with the continent, with which the United But the question whether and when the repeal of States have nothing to do. If the object had been the Berlin and Milan decrees took effect in relato prohibit the trade between the United States and tion to the neutral commerce of the United States, France, Great Britain could never have found in is superceded by the novel and extraordinary claim them any pretext for complaint. And if the idea of Great Britain to a trade in British articles, with of retaliation, could in any respect have been applies enemy; for supposing the repeal to have taken cable it would have been by prohibiting our trade place, in the fullest extent claimed by the United with herself. To prohibit it with France, would States, it could according to that claim have no not have been a retaliation; but a co operation If effect in removing the orders in conncil. licencing by France the trade in certain instance, On a full view of the conduct of the British go. prove any thing, it proves nothing more than that vernment in these transactions, it is impossible to the trade with France in other instances, is under 'see in it any thing short of a spirit of determined hostility to the rights and interests of the United]-poke for about two hours in support of the bill Suates. It issued the orders in council, on a prin A message having been received from the president ciple of retaliation on France, at a time when it ad the United States and the usual hour of adjournmitted the French decrees to be ineffectual: it has ment being arrived, Mr.-C. said, it it were agreea sustained these orders in full force since, notwithble to the committee, he would finish his observa. standing the pretext for them has been removed,ons to-morrow. The committee accordingly rose and lately it has added a new condition to their and had leave to sit again. reped to be performed by France, to which the The following message from the president of the United States in otheir neutral character, have no United States, was then read and ordered to be claim, and could not demand, without departing from orinted. United States. their neutrality, a condition, which in respect to the To the Senate and House of Representatives of the commerce of their nations with Great Britain, is repugnant to her own policy, and prohibited by her own laws, and which can never be enforced on any extraordinary and minister plenipotentiary of Great I lay before congress a letter from the envoy nation without a subversion of its sovereignty and Britain to the secretary of state, with the answer independence. I have the honor to be, &c. Augustus J. Foster, Esq. &c. &c. On motion of Mr. D. R. Williams, the house re Bolved itself into a committee of the whole, Mr.} Levis in the chair, on the bill from the senate.) with the amendments recommended by the army committee, to whom it had been referred. The bill with the proposed amendments being gone through, of the latter. JAMES MADISON. Washington, December 28, 1811. SIR-1 have been informed by Mr. Morrier, that o long ago as the third of last January, in consequence of a written communication from sir James Craig, his majesty's governor general and comMr. Williams said, he would, in as few words as ember, 1810, acquainting him with his suspicions mander in chief in Canada, dated the 25th of Nohe was able, explain the nature of the amendment of its being the intention of some of the Indian which the select committee had recommended tribes, from the great fermentation among them, to This bid he said, was predicated on the destruction make an attack upon the United States, and au. of the office of purveyor of public supplies, who is thorising him to impart his suspicions to the Ame properly the commissary general of the United rican secretary of state; he had actually done so States; and contemplates the establishment in its phee not only of a quarter master-general for the United States, but commissary general in the same person. In investigating this subject, the committee could see no reason for blending these two important offices in one, the duties of both which are important, perfectly distinct, and never were blended in any country in the world; and for this good reason, these officers are a check upon each other; one being the purchaser and the othe: the distributer of supplies; whereas, if they were united in one person, frauds to any amount might be commited without the po-sibility of defection Besides, it is necessary the quarter master general should be a military man; indeed his presence is at times reqsired in the field, to distribute the sup ples; while the purveyor, or commissary general whose business it is to purchase supplies of ever kind for the army, ought to be a man well acquaint-so clearly in contradiction to the late unfounded reed with mercantile concerns. After some objections from Messrs. Alston and Rhei, and some remarks in reply from Messis Talmadge and Findley, the amendments which went to keep up the purveyor's office, were agreed to; and the committee ro-e and reported the bill The house took it up and concurred with the amend ments, and ordered the bill to a third reading to verbally to M. Smith, your predecessor in office, and on searching among the archives of this mision, I have found the letter alluded to of sir James Crag, by which he did authorise Mr. Morrier to make the communication in question, as well as a memorandum of its having so been made, as also an express declaration of sir James Craig, that although he doubted there would not be wanting persons who would be ready to attribute the movements of the Indians to the influence of the British government, yet that his department were actually making every exertion in their power to assist in preventing their attempts. the United States government on their guard against This evidence, sir, of a friendly disposition to put the machinations of the savages, and even to aid in preventing the calamity which has taken place, is so honorable to the governor general of Canada, and ports which have been spread of a contrary nature, that I cannot resist the impulse I have to draw your attention towards it, not that I conceive, however, that it wa United States govesniment of the falsity of such necessary to produce this proof to the reports, which the character of the British nation, and the manifest inutility of urging the Indians to their destruction should have rendered improbable, Adjourned. but in order that you may be enabled, in case it shall Friday, January 17.-The bill authorising the seem fitting to you, by giving publicity to this letpresident of the United States to accept and organ ter, to correct the mistaken notions on the subject, ize certain volunteer corps, was read a third time and which have unfortunately found their way even passed, 87 to 23. The yeas and nays were the same among persons of the highest respectability, only, as upon the question of ordering the bill to be en-jas I am convinced, from their having been misingrossed; except that some of the members who formed. voted on the former question, were absent on this. morrow. The bill for establishing a quarter master's de partment, was read the third time, and after some objections, passed its third reading. I have the honor to be, &c. AUG. J. FOSTER. MR MONROE TO MR. FOSTER. The house then went into a committee of the whole, M. Nelson in the chair, on the bill concern SIR have had the honor to receive your letter ing the naval establishment; when Mr. Cheves of the 28th ult. disavowing any agency of your go vernment in the hostile measures of the Indian tribes towards the United States. If the Indians desired any encouragement from any persons in those measures of hostility, it is very satisfactory to the pre ⚫sident to receive from you an assurance that no authority or countenance was given to them by the British government I have the honor to be, &c. JAS. MONROE. His Excellency Augustus J. Foster, §c. Leaving a deficiency [which it is pro- And that an authority to borrow a Making the whole sum, which it is 1,200,000 2,135,318 41 3,335,318 41 Friday, January 17.-The house was occupied this day on the bill for establishing a quarter-master's department. -The chief question discussed was, Under this view of the subject, the committee of whether, if this department were established, the ways and means have instructed me to enquire of office of purveyor of supplies should be abolished? It was contended by several of the members who had stated, it does not become necessary to provide "a you, whether, according to the principle, first above been in the army, that the duties of these two officers fixed revenue," to be received during the year 1812, were, and of right ought to be, separate and distinct equal as well to the estimated expences of that year from each other-that one should be a soldier, and and amounting as above stated to 9,400,000 dollars, the other a merchant; the first to distribute the supas also to the interest which will arise on the proplies obtained by the second. The bill, founded on posed loan of 1,200,000; or otherwise, whether it this principle, finally passed its third reading by ais proposed to provide for the payment of such large majority. interest, out of the money in the treasury, at the commencement of that year, or from any other source? Saturday, January 18.-After some minor busi ness, the most interesting part of which was the presentation of a petition of the officers and soldiers engaged in the expedition on the Wabash, praying for compensation, the house resolved itself into a committee of the whole, Mr. Nelson in the chair, on the nary bill-when Mr. Chenes spoke at length in favor of the bill, and Messrs. Seybert and M Kee, in opposition to it. Monday, January 20.—A few private petitions be ing disposed of— 2d. It is stated in your report "that a fixed revenue of about nine millions of dollars is necessary under the existing circumstances of the U. States; and that the same amount would be necessary, and with the aid of loans, will, in your opinion, be sufficient in case of war." In reference to this state of things, the committee wish you to state, whether, as in the event of war, increased loans will undoubtedly be required, it will not be necessary to provide an additional and gradually increasing revenue, to pay the interest of such loans? Mr. Bacon observed, that the committee of ways and means had received a letter from the secretary of the treasury, in answer to an enquiry addressed to him by the committee, which they deemed of 3. It is stated in your report" that the permapublic importance; and, therefore, contrary to their nent revenue, or annual receipts, after the year usual practice, the committee had directed him to 1812, (calculated on the existing state of affairs) tocommunicate it to the house, in order that it might gether with an addition of 50 per centum on the prebe printed for the use of the members, as it might sent amount of duties, may be estimated at nine milbe some time before the committee would be able to lions of dollars; and that should any deficiency make their report, and by having the letter of the arise in the event of war, it may be supplied without secretary of the treasury before them, and their at difficulty by a further increase of duties, by a restotention drawn to the subject, the house will be betration of that on salt, and by a proper selection of ter able to meet the consideration of it, when it shall moderate internal taxes." be brought before them by the committee. Mr. B. then laid the letter of the chairman of the committee to the secretary of the treasury, with his answer, (containing his budget of the proposed taxes for meeting the expenses of war; before the house; which were read, and are as follows: revenue estimated to arise therefrom. The committee request that you I would favor them with the best opinion which you are able to form (calculated on the event of war) of the probable amount of the receipts from duties: a specification of the increase of duties, which you would think practicable and advisable: an estimate of the amount COMMITTEE ROOM, December 9th, 1811. of that on salt, and such a selection of moderate inSIR--In your annual report, prepared in obediternal taxes as you would recommend, with the proence to the act, supplementary to the act, entitled bable expence of collection; and the amount of nett "an act to establish the treasury department," and transmitted to the house of representatives on the 22d ultimo, it is stated, 1st. That to place the finan cial system of the U. States on a solid foundation, it requires the aid of a revenue, sufficient, at least, to defray the ordinary expences of government and to pay the interest on the public debt, including that on new loans which may be authorised: That the expences of the year 1812, calculated on the existing state of affairs, and including the interest on the public debt, will amount to $9,400,000 That the whole amount of actual receipts into the treasury during the year 1812, may be estimated at 8,200,000 4th. The committee request that you would farnish them, in connexion with your replies to the preceding inquiries, with an estimate of ways and means (calculated on the event of a war) which will provide a revenue sufficient to meet the ordinary expences of government, and provide for the legal reimbursement and interest of the public debt, including the interest on new loans, to the amount at least of ten millions of dollars per annum; accompanied with such a scheme for the reimburse ment of the principal ofthe new loans as you should deem expedient, together with such opinions as you may have formed respecting the terms on which such loans may probably be obtained; also such further views or information connected with, or touching the foregoing objects of enquiry, as you With great respect, I have the honor to be, your ΟΙ the increase of those duties which is thought praeticable and advisable, it is answered, without hesita tion, that the rate of duties may, in the event of war, be doubled without danger or inconvenience There will, in such an event, be less danger of smuggling at that rate, than there is now with the existing duties. With that increase,the duties will still be much less on an average, than those paid on importations in England, France and most other countries.— And they will be collected with more ease to government and less inconvenience to the people,than could be devised to the same amooot in any other manner, TREASURY DEPARTMENT, JAN. 10, 1812. SIR-In answer to the first enquiry of the committee of ways and means, relative to the interest arising on the proposed loan of 1,200,000 dollars, necessary to supply the deficiency in the receipts of the year 1812, I beg leave to observe that that item was not included amongst the expences of that year, because the estimate being made with reference to A duty on imported salt might now be calculated the expences alone which had previously been autho-on at least 3,500,000 bushels; but in the time of war, rised by law, and a considerable proportion of those cannot be estimated at more than two million of on account of the public debt, falling on the first day bushels, producing at the rate of twenty cents per of the year, it would not have been necessary in that bushel, $400.000. view of the subject, to borrow that sum previous to that day, and the interest would not therefore have become a charge till the year 1813. The duties on tonnage and imported merchandize, including the former duty on salt, and dɩab. ing the rate of all others, would according to that $5,400,000 estimate amount to Makes an aggregate of 600.000 6,086 000 3,800,000 9,600 000 With respect to the second enquiry of the com mittee, it was certainly contemplated, in conformity To which adding the proceeds of the with the recommendation of the president, whose sales of public lands estimated, as by expressions were adopted in the report, to raise a annual report, at revenue "sufficient at least to defray the ordinary expences of government, and to pay the interest on the public debt, including that on new loans which may be authorised." The sum of about nine milBons of dollars, was assumed as answering that de In order to complete the net revenue of scrip ion for the present, and the expression of is wanted for the service of 1813, "fixed revenue," which had been used in reference On the basis of annual loans of 10,000,000 of dolto existing circumstances, was inadvertently applied [lars during the continuance of the was (which is the to the case of war. It will undoubtedly be proper, sum assumed by the committee, and which, consias remarked by the committee, to provide annually dering the expenses already voted by congress, is an additional and gradually increasing revenue, suf (not more than will be wanted) and estimating, at ficient to pay the interest on loans required in the the lowest rate, the interest on the loan of 1813, the event of war. I, therefore, the loan for the present deficiency for 1814, to be provided for by other reyear will, according to the suggestion of the com- sources, will amount to 4,200,000 dollars. The exmittee, amount to ten millions of dollars, the repenses of assessment and collection, and incidental ceipts into the treasury to be provided for the year losses on the internal taxes, from the proceeds of Þ›ì3, should, on those data, amount to about 9,600,000 dollars. The committee ask, in the next place, the best opinion which I am able to form of the probable amount of receipts from duties on tonnage and mer chandize in the event of war. which this deficiency must be supplied, may be esti mated at 15 per cent. In order to produce a net revenue of $4,200,000, the gross amount of taxes must therefore be near five millions of dollars. As the taxes which may be organized during the present session of congress, will not become due till As that amount will depend on the extent of the the ensuing year, and as it is sufficiently ascertain. commerce between the United States and nations at ed, from universal experience, that taxes will not peace with them, and on the number of the captures produce their full nominal amount in the first year respectively made by our privateers, and by the ene they are in operation, it may be relied on that a gross my, it is a matter of conjecture, and not a subject amount of five millions, intended to produce a net of calculation; for which reason it was stated in revenue of 4,200,000 dollars will not yield that sum the report, that the amount could not at present be until the year 1814, nor produce in 1813, more than determined. Considering the rigorous restrictions 3,600,000 dollars. Five millions of dollars will laid by France on the commerce of the United States, therefore be assumed as the gross amount of taxes with her own dominions, and other countries under (including the expences of assessment and collecher influence, the dangers to which our commerce tion and the incidental losses) necessary to be raised with the Baltic and with China will be exposed; at this time. That sum is calculated to cover the the relations of England with Portugal and with interest on the loans of ten millions a vear, wanted Spain; and also that no inconsiderable part of the for the service of the years 1812 and 1813; leaving captures made by our privateers, will be sent ntone selection of the additional taxes, which may foreign ports, a great defalcation in the receipts thereafter be necessary to provide for the interest on duties on imported merchandize, must be ex of subsequent loans, to be made according to the pected. The amount, under existing laws and experience which will be afforded by those two circumstances, has, from correct data, been stated years. in the annual report, at six millions of dollars.It would, in my opinion, be unsafe, in an estimate of ways and means intended to be relied on with certainty, to calculate in the event of a war, on more than 2,500,000 dollars at the present rate of duties. To the next enquiry of the committee, respecting Before I proceed to answer the enquiry of the committee respecting a selection of the internal taxes, now necessary, permit me to observe, that it was stated in the annual report of Dec. 10, 1808, that no internal taxes, either direct or indirect, were contemplated, even in the case of hostilities carried against the two great belligerent powers." An as |