War Office March 11, 1796. Sir, From the changes which have taken place in Affairs that affect the Indians in your department it becomes proper to observe more oeconomy in expenditures heretofore found necessary under different circumstances, and to confine for the time to come the amount of their Supplies to their Annuities. On this head you will govern yourself by the 8^th Article of the Treaty of 1794 viz: "In consideration of the peace and friendship hereby established, and of the Engagements entered into by the six Nations; and because the United States desire, with humanity and kindness, to contribute to their comfortable Support; and to render the peace and friendship hereby established, strong and perpetual; the United States now deliver to the six Nations and the Indians of the other Nations residing among and united with them, a quantity of goods of the value of ten Thousand Dollars. And for the same considerations, and with a view to promote the future welfare of the six Nations and of their Indian friends aforesaid, the United States will add the sum of three Thousand Dollars to the one Thousand five hundred Dollars heretofore allowed them by an article ratified by the President on the twenty third day of April 1793, making in the whole four thousand five hundred Dollars, which shall be expended yearly forever, in purchasing, Clothing, domestic Animals, Implements of husbandry and other Utensils suited to their Circumstances, and in compensating useful Artificers who shall reside with or near them and be employed for their Benefit. "The immediate application of the whole annual Allowance now stipulated, to be made by the Superintendent appointed by the President for the Affairs of the six Nations and their Indian friends aforesaid." To carry this article into effect you will make an estimate of the sum that it may require to pay the Blacksmiths and Schoolmasters Bills (if any should be employed) which will enable you to see at one view what will remain of the Annuity for the purchase or payment of the other articles stipulated for by Treaty. In keeping your accounts you will pay respect to the following instructions given to the former deputy temporary Agent Israel Chapin. "It being important for the regular administration of the Departments of government, that every transaction should be made with due form — You will therefore please to observe that for all Sums and effects you receive, you must credit the United States, by the department through which you have received the said Sums and Effects. That for all your Deliveries you will debit the United States noteing the cause of such deliveries, and to whom, and in all practicable cases you will take Receipts for the articles and sums delivered, and for all other cases you will have certificates of respectable Witnesses of the Deliveries." I have said that the Supplies to be furnished the Indians should not exceed the Annuity. This is what is desired you should attempt. But as it may not be prudent to reduce them at once or instantly to this Standard you may descend so far from it only as may be absolutely necessary to preserve the friendship of important Chiefs and relieve distressed Individuals. I have directed the sum of one thousand Dollars to be delivered to you for the use of the Indian Department, for which you are to be accountable. I am Sir, Your obedient Servant James McHenry Secy of war. [M^r Israel Chapin]