I transmit herewith a report from the Secretary of War, which exhibits certain transfers of appropriations made in the War Department under the authority conferred upon the President of the United States by the acts of Congress of March 3, 1809, and May 1, 1820, passed in addition to and to amend the several acts for the establishment and regulation of the Treasury, War, and Navy Departments.

The weight which presses upon a large portion of the people and the States is an enormous debt, foreign and domestic.

I regret that I can not on this occasion congratulate you that the past year has been one of unalloyed prosperity.

The present condition of the defenses of our principal seaports and navy-yards calls for the early and serious attention of Congress

The financial operations of the Government during the present year have, I am happy to say, been very successful.

Most of the arguments that dissuade us from employing banks in the custody and disbursement of the public money apply with equal force to the receipt of their notes for public dues.

The safety of the mails requires that such prosecutions shall be efficient, and justice to the citizen whose time is required to be given to the public demands not only that his expenses shall be paid, but that he shall receive a reasonable compensation.

I regret to state the appearance of a different spirit among Her Majesty's subjects in the Canadas.

It is indispensable that its finances should be untrammeled and its resources as far as practicable unencumbered.

I can not think that a serious objection would anywhere be raised to the receipt and payment of gold and silver in all public transactions were it not from an apprehension that a surplus in the Treasury might withdraw a large portion of it from circulation and lock it up unprofitably in the public vaults.

The people of the United States feel, as it is hoped they always will, a warm solicitude for the success of all who are sincerely endeavoring to improve the political condition of mankind.