We have the Honor to acquaint Your Excellency, that agreeable to the Conditions of the Loan of Two Millions raised for the United-States, the Second Drawing of Premiums was effected the 25th: Instant to the Amount of Sixty Thousand Guilders; Which it is at the Option of the United-States, to pay in New Bonds the 1st: February 1787 or in Specie Six Months after the Drawing. The first drawing was discharged in Money Primo Febry:, and strongly impressed with the good Consequences a similar Mode of Payment for the succeeding Ones would have upon the Credit of the United-States, 495 especially as it would not now be from the Capital borrowed, We pressed the Commissioners of the Board of Treasury, to furnish us early their directions in what Mode these Premiums should be paid off, strongly advising the Money. Being without their Answer, We beg leave to submit the Matter to Your Excellency and for your Government to inform you,2 We have now in hands belonging to the United-States about cy f 170,000:—:— Out of which we do not foresee any other Disposals than the Interest due next February cy f 80,000:—:— Your Excellency and Colonel Smith’s Salaries &C: and such Drafts as you may expect from the Negotiators with the Barbary Powers, The Extent of which Your Excellency will compute; And if then You should judge the Affairs of the United-States would admit a Specie Payment of the cy f 60,000:—:— Premiums; We are convinced Your Excellency, urged by the same Motives as ourselves, will immediately authorize us to advertise it.

It appears to us by the Representation of the Honorable Congress of 2nd: August,3 that it is intended this Object should be paid in Cash; And we flatter ourselves the new Revenue System so long and strongly recommended will pass; so as to enable the Treasury with ease to provide the cy f 250,000:— Interest that will be due next June.—

We are respectfully / Your Excellency’s / Most obedt: and very hble servts

In your Letter of the 19th May last, you were pleased to inform us that you had already accepted Bills which had been drawn on you to a considerable amount by Mr. Barclay and Lamb, in consequence of 496 the appropriation which had been made by Congress for forming Treaties with the Barbary Powers; but as we have no advice from you since that date, we are at a loss to know whether the whole or what part of the appropriation has been drawn for on the Dutch Commissioners to the present day— The Accounts transmitted by those Gentlemen to the first of June last do not specify the particular disbursements for this object; but as far as we are able to form an Estimate from the Accounts transmitted, we presume that out of the various drafts you have made on them to the first of June last, 76.000 Florins have been on Account of the Barbary Negociations— If this is the Case 114.000 Florins remained after that day subject to the appropriation abovementioned.—

The Embarrassments of the Government for want of a steady and operative system of Revenue are daily growing more distressing; and such commotions have of late prevailed in the States of Massachusetts and New Hampshire, that we cannot promise ourselves that the complexion of our Affairs will soon change for a Better. Thus circumstanced it has not been in our power since the remittance of the last sum of 144,000 Florins, through your hands to make any considerable remittance to the Dutch Commissioners— We wish therefore most anxiously that the whole of the Monies appropriated by Congress may not have been exhausted by an unsuccessfull attempt to form Treaties; as we are Extremely apprehensive that in this case there may not be sufficient funds in the Month of February next, in the hands of the Dutch Commissioners to enable them to discharge the Interest which will then be due; and it is not in our power to remit in season any Funds to make up a deficiency.—

If therefore you can possibly avoid drawing out of the hands of Messrs: Willinks the whole of Monies which have been appropriated for the Barbary Treaties till the February Interest is discharged, we must request the favor of you to do it; and no time shall be lost on our Part in making such further remittances, as may complete any part of the sum of 200.000 Florins, which may have been applied towards the Payment of Interest— We are / with great Respect & Esteem / Sir / Your Obedt: Huml. Servts.