y in the number of troops granted by law shall be
compensated by succors of militia, or additional encouragements shall
be proposed to recruits.

An anxiety has been also demonstrated by the Executive for peace with
the Creeks and the Cherokees. The former have been relieved with corn
and with clothing, and offensive measures against them prohibited
during the recess of Congress. To satisfy the complaints of the latter,
prosecutions have been instituted for the violences committed upon them.
But the papers which will be delivered to you disclose the critical
footing on which we stand in regard to both those tribes, and it is
with Congress to pronounce what shall be done.

After they shall have provided for the present emergency, it will merit
their most serious labors to render tranquillity with the savages
permanent by creating ties of interest. Next to a rigorous execution of
justice on the violators of peace, the establishment of commerce with
the Indian nations in behalf of the United States is most likely to
conciliate their attachment. But it ought to be conducted without fraud,
without extortion, with constant and plentiful supplies, with a ready
market for the commodities of the Indians and a stated price for what
they give in payment and receive in exchange. Individuals will not
pursue such a traffic unless they be allured by the hope of profit; but
it will be enough for the United States to be reimbursed only. Should
this recommendation accord with the opinion of Congress, they will
recollect that it can not be accomplished by any means yet in the hands
of the Executive.

_Gentlemen of the House of Representatives_:

The commissioners charged with the settlement of accounts between the
United States and individual States concluded their important functions
within the time limited by law, and the balances struck in their report,
which will be laid before Congress, have been placed on the books of
the Treasury.

On the 1st day of June last an installment of 1,000,000 florins became
payable on the loans of the United States in Holland. This was adjusted
by a prolongation of the period of reimbursement in nature of a new loan
at an interest of 5 per cent for the term of ten years, and the expenses
of this operation were a commission of 3 per cent.

The first installment of the loan of $2,000,000 from the Bank of the
United States has been paid, as was directed by law. For the second it
is necessary that pro