es 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burthen on the people, the direct tax and excise having been repealed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,
patriotism, and intelligence of our fellow-citizens, and in the devotion
with which they would yield up by any just measure of taxation all their
property in support of the rights and honor of their country.

Under the present depression of prices, affecting all the productions
of the country and every branch of industry, proceeding from causes
explained on a former occasion, the revenue has considerably diminished,
the effect of which has been to compel Congress either to abandon these
great measures of defense or to resort to loans or internal taxes to
supply the deficiency. On the presumption that this depression and the
deficiency in the revenue arising from it would be temporary, loans
were authorized for the demands of the last and present year. Anxious
to relieve my fellow-citizens in 1817 from every burthen which could
be dispensed with, and the state of the Treasury permitting it, I
recommended the repeal of the internal taxes, knowing that such relief
was then peculiarly necessary in consequence of the great exertions made
in the late war. I made that recommendation under a pledge that should
the public exigencies require a recurrence to them at any time while I
remained in this trust, I would with equal promptitude perform the duty
which would then be alike incumbent on me. By the experiment now making
it will be seen by the next session of Congress whether the revenue
shall have been so augmented as to be adequate to all these necessary
purposes. Should the deficiency still continue, and especially should it
be probable that it would be permanent, the course to be pursued appears
to me to be obvious. I am satisfied that under certain circumstances
loans may be resorted to with great advantage. I am equally well
satisfied, as a general rule, that the demands of the current year,
es